'It Felt Like a Black Mirror Episode' The Inside Account of How Bird Laid off 406 People in Two Minutes via a Zoom Webinar

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

'It Felt Like a Black Mirror Episode' The Inside Account of How Bird Laid off 406 People in Two Minutes via a Zoom Webinar

Last Friday morning, 406 Bird employees – who had been working from home for two weeks because of the coronavirus and bleary-eyed from putting in longer than usual days in an unprecedented effort to rapidly wind down global operations in cities around the world – received a generic-sounding Zoom webinar invitation titled "COVID-19 Update."

Travis VanderZanden, 41, a former top Uber executive who founded Bird only three years ago, had abruptly cancelled the previous Thursday's regular biweekly all-hands meeting, referred to internally as Birdfams. He had not addressed Bird's thousand-plus employees since they were forced to leave their offices, so most employees assumed he was giving an update on the company's response to the worsening global pandemic.

But some grew suspicious when they noticed the guest list and host were hidden and they learned only some colleagues were included. It was also unusual they were being invited to a Zoom webinar, allowing no participation, rather than the free-flowing meeting function the company normally uses. Over the next hour, employees traded frantic messages on Slack and searched coworkers' calendars to see who was unfortunate enough to be invited.

"It should go down as a poster child of how not to lay people off, especially at a time like this," said one employee.


Before the novel coronavirus brought the world to a halt, Bird had been on an exceptionally meteoric rise, even by the frothy standards of what now seems like a bygone era of venture capital that brought ever-ballooning valuations to all manner of companies. In 2018, Bird became the fastest company in history to reach unicorn status. Shortly after that, it achieved a $2 billion valuation in less than a year and announced it had expanded to 100 cities with 10 million scooter rides.

In late January, Bird raised another $75 million of Series D2 funding at a $2.77 billion valuation. But less than two months later, the company suddenly found itself mostly shuttered at the worst possible time during the crucial post-winter months when it counts on earning most of its revenue after bringing scooters out of what employees refer to as "hibernation." During a pandemic the last thing people want to do is touch a shared scooter, if they're going anywhere at all.

Employees say the company has swiftly responded to by far the biggest crisis in its short history more severely than it has publicly let on, suspending operations in every market and slashing its workforce by 40%, a figure based on the global Slack channel all employees are required to join that includes about 1,060 employees. (A Bird spokeswoman declined to comment on the figure and referred to an earlier TechCrunch article that put the percentage at "around 30%.")

It Felt Like a Black Mirror Episode;' The Inside Account of how Bird Laid off 406 People in Two Minutes via a Dystopian Zoom Webinarassets.rebelmouse.io

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Bird's Santa Monica headquarters has been particularly hard hit. Whenever the office is able to reopen, there will be fewer than half as many workers as before Coronavirus.

This account, which includes many previously unreported details, is based on a review of internal memos and a recording of the now infamous Zoom meeting obtained by dot.LA as well as extensive conversations with more than half a dozen Bird employees at all levels of the company who were laid off. Most requested anonymity so as not to jeopardize their severance or future job prospects.

Bird declined to make anyone available for an interview or even fully answer a list of written questions, instead sending a statement to dot.LA: "Layoffs are never easy or comfortable to do and COVID-19 has impacted the way they are done in at least the near term...We are eternally grateful to the impacted individuals and wish that the entire situation could have been avoided."

Employees describe being thrilled to join such a fast-growing startup brimming with talent that had a lofty mission to forever change the way people are transported all around the world. Last year, LinkedIn named Bird as one of the hottest startups to work for in the U.S.

The now sadly common occurrence of reducing headcount, as employers like to call it, during coronavirus is challenging when face-to-face meetings are not possible. However, Bird employees say they are disheartened by how coldly Bird handled the reductions.

"Lots of companies have to lay people off right now," said Jenny Alvauaje, a 23-year-old Bird data scientist who was dismissed after a year and half at the company. "People will recognize the companies who did it well and the ones that didn't. I hope Bird is the one that is remembered as one who did it poorly."

"It felt like a Black Mirror episode"

At 10:30 a.m., employees logged onto Zoom but were greeted only by a cracking silence. Meetings at Bird are usually always punctual and more frenzied Slack messages followed.

"Is there audio? Why can't i hear anything?" Alvauaje messaged her colleagues.

"We never start late," another employee remembers thinking. "This is strange. Something feels off."

For the next five minutes, employees stared at a sparse slide with a dark grey background that said only "COVID-19."

"It was not our brand color or font, which frankly was unsettling in a way I couldn't articulate," Alvauaje said.

Thinking there were technical difficulties, some employees logged-off and were never able to return to the meeting. Then, after five minutes of dead air that seemed like an eternity, a robotic-sounding, disembodied voice came on the line.

The woman began by acknowledging "this is a suboptimal way to deliver this message." Then she cut to the chase: "COVID-19 has also had a massive impact on our business, one that has forced our leadership team and our board of directors to make extremely difficult and painful decisions. One of those decisions is to eliminate a number of roles at the company. Unfortunately your role is impacted by this decision."

The meeting was scheduled to last half an hour but ended up going for only two minutes. Towards the end of the monologue, as the woman started talking about the future of Bird, she sounded like she was getting choked up and was trying to hold back tears.

"It felt like a Black Mirror episode," Alvauaje said. "This ominous voice came over and told us we were losing our jobs."

Almost no one recognized the voice, and there remains disagreement about who had the unfortunate job of delivering the message. But this much is clear: It was not VanderZanden or a top executive.

"It was a cowardly move," said a Bird manager. "Travis did not want to deliver the news."

"It sounded like a recording and it was very strange and ominous," said an operations employee.

VanderZanden, who Tweets sparingly and has been silent on the messaging service since late January, defended the meeting Saturday in a reply to a recounting of the meeting that had gone viral: "We did NOT let employees go via a pre-recording. It was via a live zoom mtg (not ideal either) b/c we're all WFH during COVID. Video was turned off which we thought was more humane. In retrospect, we should've made 1on1 calls to the 100s impacted over the course of a few days."

VanderZanden's defensive replies and an internal memo have been his only comments about the layoffs. In its statement, the company said, "we purposefully and intentionally did not have any video on to protect privacy as we delivered the news live to individuals. A live speaker delivered the news in real time over the web-based call and a slide was projected outlining additional information including four weeks of pay, three months of medical coverage and an extended timeframe to exercise options."

Most employees dot.LA spoke with still believe the call was pre-recorded. They say it's hard to otherwise explain how the message could be delivered so robotically, but some also say at this point the distinction is moot.

"It might as well have been a recording given the lack of human interaction," said one staffer.

Making it more surreal, some people were logged out while the brief speech was still underway. As the voice on the line was speaking, employees stared at their computer and began to take in the news that they were losing their jobs. Then their screens suddenly went dark and their company issued MacBooks restarted. By 10:40 a.m, everyone was locked out, just as employees were frantically trying to exchange personal numbers and emails on Slack and take screenshots of their contacts. They wondered why they were being cut off then since they had just been told their last day was not until April 3rd.

Bird Layoffs: An Audio Recordingwww.youtube.com

A month earlier, someone in Bird's IT department had been tasked by his superiors to write a script that would allow the company to instantly shut down all of a user's accounts – computer, email, Slack – with the click of a single button, according to an employee. He was told the script would be used for general off-boarding rather than the mass layoff that he ended up being included in. Last Friday, the script seems to have been activated early.

Some employees, who had the day off or were working a later shift, did not understand why their computers were restarting and why they could not log back in. Others tried in vain to join the webinar and got a message saying it was full, likely because Bird's webinar license didn't accommodate enough attendees. Some employees did not realize what was going on until they saw a brief TechCrunch article posted at 11:26 a.m.

According to Bird's statement, "HR representatives, managers, and/or executives personally reached out to all individuals directly as a follow up." But few employees have seen any follow-up. It did not help that many managers were included in the layoffs and had no idea who on their team had been cut. Some resorted to messaging their reports on LinkedIn to see if they still worked at the company.

The next day, one employee received what seemed like a heartfelt note of gratitude from his boss's boss thanking him for what he had contributed during his 18 months at Bird, but he soon discovered he had gotten a form letter. "Seven of my contemporaries said they had received the exact same message," the employee said. "I realized he had just copy and pasted it."

Workers were told they would be receiving three months of healthcare benefits but when they looked into it, they discovered the company is actually only providing coverage until April 30th. After that employees have the option of enrolling in COBRA, according to an off boarding memo obtained by dot.LA.

"I can't pay the $600 out of pocket for that," said one employee. "I'm just going to go on MediCal." (A Bird spokeswoman clarified Wednesday: "All impacted employees will receive three months health coverage paid for by Bird. Ensuring these individuals were taken care of through June during the global pandemic was key and we wanted to go beyond the industry standard.")

Employees say Bird seems primarily concerned about getting their now locked laptops back, which are mostly MacBook Pro's for older employees and the cheaper MacBook Air's for newer staffers, who joined in an era when the company became more focused on cutting costs.

"IT will send a box with a return shipping label to retrieve company assets (e.g., Laptops, chargers, and badge)," the company stated in its off boarding memo. "All items should be put in the box and mailed back to us by April 15."

The company has been less specific about how employees will get back the items they left at their desks when they walked out of the office for what turned out to be the last time nearly three weeks ago. It is a sad fact of the COVID-19 era that laid off employees do not even get to clean out their own desks.

"They said any personal items would be sent back to us 'eventually,'" said one staffer. "There's a lot of stuff on desks and monitors that belong to employees of the company."

live.staticflickr.com

A workforce decimated

Almost no division was spared from wrenching cuts, from engineering to data to government partnerships to legal.

"Pretty much everybody I worked with was let go," said one operations employee. "They eradicated whole teams."

Several employees noted that the cuts included some viewed internally as superstars. They also noticed that the layoffs will result in a much less diverse company.

"It seems like they got rid of the majority of women and people of color," said one staffer. "In engineering they got rid of the only women in significant leadership."

"As far as I know, the folks that are left from my immediate team consist of all men, most of whom are white," Alvauaje wrote in a Medium blog post. She said her data team was reduced from around 50 to just five people. "When your C-Suite looks the way Bird's does (the way many do, in tech and otherwise) and your data team follows suit, you cannot best serve the communities you pretend to care about," she wrote.

Laid off employees have joined an ex-Bird Slack group to share job leads and try to process what happened. "There's a lot of dark humor being passed around," said one employee.

"This could not have happened at a worse time"

When the coronavirus hit, many Bird employees were busy coordinating taking scooters out of "hibernation" for the busy spring and summer months, a period known as "Spring Push." The company brings in little revenue in the winter, banking on ridership to return in warmer months.

"This could not have happened at a worse time for the company so that's why this happened so quickly," said one employee.

Bird's biggest competitor, Lime, announced March 21st that it was "winding down and pausing" service in all markets except for South Korea. Bird did not follow suit, at least publicly. Its last announcement about COVID-19 came on March 12th - which seems like a lifetime ago in this rapidly changing environment. The blog post said only that the company would be cleaning scooters more frequently.

"The only cleaning I was aware of was when they were putting them away," said a Bird operations employee. "They have been rapidly removing scooters from marketplaces and putting them in sleep mode. Externally they were not telling customers that. They weren't telling people they were removing everything."

Bird would not directly address whether the company has suspended operations in all markets. "Our decision to temporarily pause or reduce our fleet in some cities is very fluid as the response to and recommendations regarding COVID-19 evolve," a spokeswoman said Wednesday afternoon in an e-mail to dot.LA. "Our actions are in line with voluntary, as well as mandatory measures set by governments for businesses. We will continue our close dialogue with local officials in each of the cities we provide our service and will again offer full fleets of our safe, clean transportation alternative as soon as possible."

The last weeks at Bird were particularly frantic for many employees because the company was doing something no rapidly growing unicorn ever wants to do: scaling back its operations as quickly as possible.

"My sole focus the last weeks of my employment was reducing operational spend as much as I could," said a manager. "My department had quite a bit of spending. I was told to get it to zero."

This manager was part of a team of about two dozen employees responsible for planning Bird's response to the novel coronavirus.

"I thought cuts were likely coming at some point," said the manager. "But I did not expect to be cut in the first round."

Like others, he heard about the call when he logged onto the Zoom webinar. He wished he had at least had enough time to say goodbye to his team.

"The leadership at Bird handled this in an immature manner,' he said. "The world deserves to hear about it."

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An LA AI Company Just Won Entertainment’s Backing

🔦 Spotlight

Hello LA.

The entertainment industry has spent the past several years debating what generative AI could take from creators.

This week, some of its biggest companies put money behind an AI startup promising to build something for them instead.

Los Angeles-based Stability AI raised $76M in Series B funding from an investor group that includes Electronic Arts, Sony Music Group, Universal Music Group and Warner Music Group. AMD Ventures and Pacific Alliance Ventures also joined the round, while LA-based MANTIS Capital and Sound Ventures are among the company’s existing backers.

The financing brings Stability AI’s total funding under CEO Prem Akkaraju to $232M, including two equity rounds and convertible notes. The company plans to use the new capital to expand its creative production tools, applied research and professional services across music, gaming and entertainment.

The amount is notable. The names attached to it are the bigger story.

Generative AI’s arrival in entertainment has been anything but quiet. Artists have questioned whether their work was used to train models without permission. Studios have faced pressure over how the technology could affect jobs. Record labels have pursued AI companies in court while simultaneously exploring how the same technology might fit into their businesses.

Now, several of the world’s largest entertainment companies are investing directly in one.

That does not mean the industry has resolved its concerns about AI. It means some of its biggest players would rather help shape the technology than wait to see what it becomes.

Stability AI is positioning itself for that opening. Rather than focusing solely on general-purpose models, the company is building tools specifically for professional creatives. Its recently launched Stable Audio 3.0 was trained on fully licensed music and lets artists generate, edit and arrange audio through a web platform or directly inside digital audio workstations.

Image Source: Stability AI

That licensed-data approach is central to the pitch. The next phase of creative AI will not be decided only by which company produces the most impressive model. It will also depend on which companies can earn the trust of the artists, studios and rights holders whose work gives those models value.

For its new strategic investors, the round offers more than financial upside. It creates a closer view into how generative AI may change production, a voice in how the tools develop and an opportunity to establish rules before those rules are established for them.

For Stability AI, the backing provides something equally important: credibility inside industries that have every reason to scrutinize what it is building.

The company now has capital and access to some of the largest catalogs, franchises and creative workforces in entertainment. What it does with that access will determine whether this becomes a meaningful alliance or simply an impressive collection of logos.

Either way, the industry is no longer watching from a safe distance.

It has entered the room.

LA’s Air-Taxi Plans Are Coming Downtown

While Stability AI is trying to change how entertainment gets made, Archer Aviation wants to change how people get to it.

AEG and Archer announced plans to develop downtown Los Angeles’ first vertiport at L.A. LIVE, creating a potential new stop in Archer’s proposed electric air-taxi network ahead of the 2028 Olympic and Paralympic Games.

Image Source: Archer

The planned site would sit beside Crypto.com Arena and allow passengers to travel to and from the entertainment district aboard Archer’s Midnight aircraft. The company says its network could turn drives that take an hour or longer into electric flights lasting approximately 10 to 20 minutes.

Archer has already identified SoFi Stadium, USC and Hollywood Burbank Airport as possible locations, with its recently acquired Hawthorne Airport expected to serve as the network’s central operating hub. As the official air-taxi provider of LA28 and Team USA, Archer has an unusually visible deadline for turning those plans into something tangible.

AEG and Archer have completed an initial feasibility study of the L.A. LIVE site, including reviews of land use, airspace, power availability and community impact. The next phase will examine operations and the passenger experience.

There is still a substantial distance between a proposed vertiport and a functioning air-taxi network. The infrastructure must be built, regulatory approvals must be secured and passengers must be persuaded that flying across the city is safer and more practical than staying on the ground.

Still, few locations could make that future feel more real than L.A. LIVE. Millions of people already pass through the district for concerts, games and major events. Placing a vertiport there would bring urban air mobility out of the concept stage and directly into public view.

Together, this week’s announcements show Los Angeles becoming a testing ground for two technologies still moving from promise toward everyday use.

One could reshape how entertainment is created. The other could reshape how Angelenos reach it.

In a city famous for both its creative industries and its traffic, that feels appropriately on brand.

More from this week’s LA startup and venture scene below.

🤝 Venture Deals

    LA Companies

    • Atorie raised a $9.5M seed round from investors including a16z speedrun, Night Capital and Lightspeed Venture Partners’ Jeremy Liew. The AI-powered fashion startup connects consumers directly with luxury manufacturers to offer high-quality goods without traditional designer markups, and will use the funding to expand logistics, production and its AI shopping tools. - learn more
    • Long Beach-based Maglut Heavy Industries emerged from stealth with $3.1M in pre-seed funding from Wave Function, Nova Threshold and Julian Capital. The startup is developing a chromatography-based system to process and refine rare earth elements domestically, with pilot tests producing materials at more than 99.9% purity. - learn more

    LA Venture Funds
    • MANTIS Venture Capital participated in Voya Energy’s $35M Series A, led by Energy Impact Partners and joined by John Doerr, StepStone, Founders Fund, Overmatch and Seven Stars. The Hayward-based startup will use the funding to commercialize its aluminum-fueled generators, which provide clean, off-grid power for data centers and other energy-intensive operations without combustion or local air emissions. - learn more
    • Regeneration.VC participated in eComID’s $17M seed round, led by Systemiq Capital and joined by Course Corrected, Stadium and returning investor CapitalT. The Stockholm-based startup will use the funding to expand internationally and scale its AI-powered Shopping Passport, which helps retailers personalize sizing and product discovery while reducing returns. - learn more
    • Clocktower Technology Ventures participated in Helcim’s $53M Series C, led by BDC Capital’s Growth Venture Fund and joined by new investors Curql Collective and LA-based Gold House Ventures. The Calgary payments company will use the funding to expand its platform, develop additional financial services and serve more small and midsize businesses across North America. - learn more

    LA Exits

    • Altruist agreed to be acquired by Vanguard, giving the Los Angeles-based wealth technology and custody platform greater resources to expand its tools for independent financial advisors. Altruist will continue operating as a standalone business under its existing leadership and brand after the deal closes, which is expected later this year pending regulatory approval; financial terms were not disclosed. - learn more
    • Personality AI has been acquired by WildBrain for approximately $11M in cash and 1M WildBrain shares upfront, with additional payments tied to future performance. The startup develops kid-safe conversational AI experiences for entertainment characters, including “Hey Peppa Pig,” and will help WildBrain expand its franchises into interactive products across toys, apps and digital platforms. - learn more

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      This Torrance Startup Just Raised $1B to Mass-Produce Hypersonic Missiles

      🔦 Spotlight

      Happy Friday, Los Angeles.

      Castelion has spent the past four years trying to prove that hypersonic missiles do not need to take decades to develop or cost so much that the military can only afford a limited supply.

      Now comes the harder part: producing them at scale.

      The Torrance-based defense startup raised a $1B Series C at a $13B valuation. The financing includes $800M in equity and a $250M revolving credit facility, making it one of the largest recent raises for an LA defense technology company.

      JPMorganChase’s Strategic Investment Group, Andreessen Horowitz and Carlyle co-led the round. Lightspeed Venture Partners, Lavrock Ventures, Altimeter, General Catalyst, T. Rowe Price and LA-based Interlagos Capital also participated.

      Castelion will use the capital to ramp production of Blackbeard, its low-cost hypersonic strike missile, while developing a longer-range precision weapon and new defensive systems. Hundreds of millions of dollars will go toward expanding manufacturing at Project Ranger, the company’s 1,000-acre production campus in New Mexico.

      Image Source: Castelion

      Blackbeard was designed in California, will be built in New Mexico and is expected to enter service in 2027. Castelion says it has already secured more than $500M in U.S. military contracts over the past 18 months and moved the missile from a clean-sheet concept to an official program in fewer than four years.

      That timeline is central to Castelion’s pitch. Traditional defense programs are often associated with long development cycles, limited production runs and eye-watering costs. Castelion is applying the rapid testing and vertically integrated manufacturing approach popularized by commercial space companies to weapons production.

      But a $13B valuation changes the standard. Castelion is no longer being judged as a promising startup with an impressive prototype. It is being funded like a company expected to become a major part of the American defense industrial base.

      The question is no longer whether a startup can build a hypersonic missile. It is whether one can manufacture thousands of them without losing the speed, discipline and cost advantages that made it disruptive in the first place.

      For LA’s defense ecosystem, that shift matters. The region has become home to a growing number of companies promising to modernize how America builds critical hardware. Castelion now has the capital, contracts and facilities to show what happens when that promise reaches the factory floor.

      The next test will not be in a pitch deck. It will be in production.

      More from this week’s LA startup and venture scene below.

      🤝 Venture Deals

        LA Companies

        • Long Beach based Ampaire raised a $19M Series B led by DiamondStream Partners, with strategic participation from Alaska Star Ventures and IAGi Ventures, bringing its total funding to $68M. The hybrid-electric aviation company will use the capital to expand flight operations, produce additional Eco Caravan aircraft, advance regulatory certification and scale its manufacturing capabilities. - learn more

        LA Venture Funds
        • SUM Ventures participated in AssistMe’s €6.5M funding round, which was led by CRB Health Tech and Vorwerk Ventures and included several returning investors. The German care technology company will use the capital to expand across Europe, prepare for a U.S. launch and further develop alea, its digital platform for supporting caregivers and improving nursing-home operations. - learn more
        • CIV led Hypercubic’s $5.3M seed round, with participation from Y Combinator, Afore Capital, Pioneer Fund, Multimodal Ventures and several angel investors. The San Francisco startup will use the capital to develop AI agents that can analyze, document and rewrite decades-old COBOL systems, helping enterprises modernize critical mainframe software faster and with less risk. - learn more
        • Plus Capital participated in Wispr Flow’s $280M Series B, led by Menlo Ventures and joined by existing and new investors, valuing the AI voice company at $2B. The funding brings Wispr’s total capital raised to $361M and will support its expansion beyond dictation into meeting tools and proprietary speech technology, including its new Canto model. - learn more
        • Alexandria Venture Investments participated in Leal Therapeutics’ $30M Series A extension alongside new investor Eli Lilly and returning backers including OrbiMed, Newpath Partners and SV Health Investors’ Dementia Discovery Fund. The biotech company will use the funding to advance clinical trials of LTX-001 for schizophrenia and LTX-002 for ALS, with initial schizophrenia trial data expected by year-end. - learn more
        • BroadLight Capital participated in Higgsfield’s $400M Series B, led by DST Global and joined by investors including Goldman Sachs Alternatives, Smash Capital, Fifth Wall and Intel Capital. The AI video and image platform, now valued at $5.4B with $700M in annualized revenue, will use the funding for R&D, global infrastructure, AI hiring and international expansion. - learn more

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          Why Samsonite Just Paid $178.5M for BÉIS

          🔦 Spotlight

          Hello, Hello.

          This week, one of LA’s most recognizable consumer brands packed its biggest bag yet.

          Samsonite Group has agreed to acquire an 85% stake in BÉIS for $178.5M, valuing the Los Angeles-based travel and lifestyle brand at approximately $210M. The deal is expected to close in Q4, pending regulatory approval.

          Founded by actress and entrepreneur Shay Mitchell and incubated by LA-based Beach House Group in 2018, BÉIS has grown from a digitally native luggage startup into a profitable business that generated approximately $210M in sales last year. Along the way, it built the kind of fiercely loyal online following that legacy brands spend years and considerable marketing budgets trying to manufacture.

          Image Source: BÉIS

          That may be the most interesting part of this deal. Samsonite is not simply acquiring another luggage line. It is buying access to a younger, predominantly female customer base, a sophisticated direct-to-consumer operation and a brand that knows how to turn social media attention into actual sales. The suitcases are useful; the cultural relevance is the real carry-on.

          BÉIS will continue operating as a standalone brand under CEO Adeela Hussain Johnson and its existing management team. Mitchell will retain a 15% ownership stake and continue guiding the company’s creative and product vision, while Samsonite brings the global distribution, sourcing and logistics infrastructure needed to take the brand further.

          For LA’s startup community, the acquisition is another reminder that valuable technology companies do not always look like software companies. BÉIS built its advantage through digital distribution, community and an unusually sharp understanding of its customer. Now, one of the world’s largest luggage companies wants what it created.

          Sometimes the strongest exit starts with knowing exactly what people want to pack.

          More from this week’s LA startup and venture scene below.

          🤝 Venture Deals

            LA Companies

            • Heaviside Industries raised a $60M Series B to accelerate the development and production of its autonomous precision munitions for U.S. and allied forces. The company also announced a strategic partnership with defense manufacturer Nammo, combining Heaviside’s autonomous weapons technology with Nammo’s expertise in propulsion, warheads and large-scale munitions production. - learn more
            • Alex Cooper and Matt Kaplan’s media company Unwell received its first outside investment from WTSL, giving the profitable business a $500M pre-money valuation. Unwell, which reaches a reported 70M women each month through podcasts, film and television, live events, consumer products and a creative agency, will use the capital to pursue acquisitions, make investments and expand into new business lines. - learn more
            • Neros raised a $250M Series C at a $2.5B valuation, with participation from LA-based Interlagos, MANTIS Venture Capital and Thiel Capital. The El Segundo defense startup will use the funding to scale its autonomous strike and interceptor drone programs, expand production and strengthen its domestic supply chain as demand grows from the U.S. military and allied forces. - learn more
            • FriskAI raised $3.6M from MaC Venture Capital to expand its observability and security platform for AI agents. The startup helps companies monitor what autonomous agents do in real time, giving teams greater visibility into agent behavior and helping them identify errors, risks and unexpected actions. - learn more
            • Diald raised $1M in follow-on funding led by Feedback Ventures, bringing its total funding to $4.75M. The company also launched a rebuilt conversational AI platform that lets commercial real estate investors create pro formas and evaluate zoning, permits, neighborhood sentiment and other property risks through plain-language prompts. - learn more

            LA Venture Funds
            • Alexandria Venture Investments participated in Khartis Therapeutics’ $50M Series B, led by Forge Life Science Partners, bringing the San Diego biotech’s total funding to $95M. Khartis will use the capital to advance its lead oral treatment for thyroid eye disease and expand its pipeline of small-molecule immunology drugs. - learn more
            • Finality Capital Partners co-led Entravel Group’s $7.5M funding round alongside Ethereal Ventures, with participation from GSR, Varrock, G1 Ventures, Seier Capital, Veris Ventures, Funfair Ventures and WTG Ventures. The traveltech company will use the capital to expand its white-label hotel-booking infrastructure beyond crypto platforms and develop a stablecoin-powered system for settlement, treasury and working-capital financing. - learn more
            • Regeneration.VC participated in Clarity Systems’ $4.4M seed round, led by LMnT Ventures and joined by Humba Ventures and Massive Technology Ventures. Clarity uses X-ray imaging, computer vision and AI to detect counterfeits, product swaps and other forms of returns fraud in seconds without opening the package. - learn more
            • CIV participated in AGent Energy’s $11M Series Seed round alongside existing investor Zero Infinity Partners, with Spero Ventures and MassMutual Ventures co-leading and Intrepid Investment Management also joining. The Houston startup uses AI-powered hardware and software to turn largely idle backup generators into on-demand grid capacity during emergencies, and the new funding brings its total raised to $17M. - learn more
            • Smash Capital co-led CodeRabbit’s $143M Series C alongside Atomico, valuing the AI code-review company at $1.5B. CodeRabbit will use the funding to expand internationally and develop its new Agentic Change Management platform, which helps companies review, govern and monitor software created by both humans and AI agents. - learn more
            • Multiball Capital backed Soctera’s $4M seed round alongside Anorak Ventures, with additional participation from 9Yards Capital, Mana Ventures and Red Bear Ventures. The Cornell spinout will use the funding to develop heat-efficient power amplifiers designed to improve the range, signal quality and reliability of radar, electronic warfare, satellite and telecommunications systems. - learn more
            • WndrCo participated in Genera’s $10M seed round, which was led by First Round Capital and also included BoxGroup, Carpenter Capital and Success Venture Partners. Genera will use the funding to scale its AI platform, which automates the often labor-intensive process of deploying enterprise software, including customer discovery, data migration and system configuration. - learn more
            • M13 co-led Baselayer’s $20M Series A alongside Koro Capital, bringing the fintech startup’s total funding to approximately $47M. Baselayer will use the capital to enhance its AI-powered platform, which helps banks, fintech companies and government agencies automate business verification, risk assessment and fraud monitoring. - learn more

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