Meet the Bird ‘Fleet Managers’ Who Hunt and Release E-Scooters in Downtown Los Angeles

Maylin Tu
Maylin Tu is a freelance writer who lives in L.A. She writes about scooters, bikes and micro-mobility. Find her hovering by the cheese at your next local tech mixer.
Meet the Bird ‘Fleet Managers’ Who Hunt and Release E-Scooters in Downtown Los Angeles
Photo by Maylin Tu

It’s Friday night in Downtown Los Angeles and fleet manager Adan Aceves is cruising the streets in his Ford Ranger pickup truck looking for a bird — not an e-scooter, but an actual bird.

“First time I saw the bird I was wondering what the hell is it doing in Downtown?,” said Aceves. “It doesn't seem like a city bird, like a pigeon or a seagull…The second time I realized, ‘Damn, I only find this fool in Skid Row.’”

We never come across the mysterious bird who acts like a human. Instead, we drive the streets of Downtown, dropping off and picking up scooters — a different type of Bird — under the bright lights and amid throngs of people, many of them dressed to the nines and out on the town, looking for a good time.

By day, Aceves, 41, works in his family’s business repairing power tools in South Central. By night, he deploys, charges and rebalances e-scooters for Bird, one of eleven fleet managers located Downtown. The zone that he covers includes Dignity Health on Grand Avenue (once called California Hospital) where he was born.


He wears a security vest that reads “Bird Ambassador” and it’s a fairly accurate description of his role in the hustle and flow of the city at night. In all the chaos, he’s a steady presence.

When the COVID-19 pandemic hit in March 2020, Aceves was already charging scooters for Bird, Lime and Wheels, making pretty good money, about $100 for three hours of work a night. But when the virus shut down his family business and prompted companies to pull their scooters from the streets, he suddenly had no work and no income. Then, he got a call from Bird.

Photo from inside Adan Aceves's car. His responsibilities at night range from deploying e-scooters, charging and re-balancing the e-scooters. Photo by Maylin Tu

From Flyer to Fleet Manager

For deploying, charging and fixing a fleet of about 150 scooters, 100 of which are on the street at any given time, Aceves takes home on average $4,500 per month after expenses. Bird deducts a city fee, an insurance and hardware services fee and something called “contra.”

“If someone claims, ‘Hey, the scooter doesn't work,’ they get a discount. So that goes against me,” Aceves explained. His contra normally comes out to about 1% to 2%, while for other fleet managers it can run as high as 7% or 8%. After everything is deducted, Bird and Aceves split the remaining profit 50-50.

As for expenses, he spends $1,200 a month renting a charging container from portable charging infrastructure Perch — an investment he says has reduced the amount he spends on gas by 50%. If he only needs to cover a short distance, he’ll sometimes use a scooter to pick up other scooters, saving himself even more money on gas, an expense that currently comes out to about $100 per week. He also purchases parts directly from Bird to make repairs, another expense.

Aceves starts every night at 10 p.m. and works for four to five hours. Between repairing power tools and managing a fleet of scooters, he works 11 to 12 hour days to put his two daughters, 15 and 19, through college.

It’s physically taxing work — a Bird Two, the model in Aceves’ fleet, weighs 46 to 47 pounds. “After you pick up 40, 50 scooters, then you start to feel it,” he said.

As one of the top flyers, Aceves is a perfect fit for the role.

Born in and raised in South Central and Downtown L.A., Aceves said both sides of his family were from Guadalajara. His grandfather on his father’s side helped build the railroads in California. His father died when he was 11 and he mostly lost touch with that side of his family.

He went to Cathedral High School in Chinatown, an all-boys Catholic school, before attending Los Angeles Trade Technical College for industrial technology and machining, skills that have come in handy in his work repairing power tools — which he’s been doing for the past 30 years.

“So I would go from South Central to Chinatown and I was always in Downtown. Though I gotta tell you, when I was in high school in the 90s — Downtown was not the place to be.”

When he turned 18, his mom told him, “You're out of high school, figure it out.” Now, he’s working to get his daughters through college without taking on student debt.

He knows Downtown’s streets inside and out. This gives him an advantage when scooters go missing, trapped in parking garages or parked under bridges where the GPS is spotty. He uses the Bird fleet manager app to track, fix and release scooters. In a sense, Bird also uses the app to track fleet managers.

“Bird sees everything. I wouldn't be surprised if they're listening to us right now.”

When Bird launched the fleet manager program, he was excited to start repairing scooters.

“As a mechanic, I take a lot of pride in my work. So I'll keep mine to where they're working 100%, if not better.”

Photo of Adan Aceves, working on this fleet of Bird e-scooter. Photo by Maylin Tu

The Pokémon GO Era of E-Scooter Charging

Back in the early days of the e-scooter boom, companies offered a “bounty” for retrieving, charging and redeploying scooters. You could make up to $20 per device — companies paid a premium for devices that were harder to find. According to multiple sources, it was like a grown-up version of Pokémon GO. People would hunt scooters with their partners, friends or kids.

This cadre of independent scooter wranglers and chargers — Bird called them “flyers” and Lime called them “juicers” — made good money and had fun doing it. But it wasn’t a sustainable solution for Bird, Lime and their successors — or the environment.

“The thing about the independent contractor model is that it's great for high growth,” said Harry Campbell, founder of The Rideshare Guy. Companies could launch rapidly in cities without going through the trouble and expense of hiring local employees — showing up with a truck full of scooters and using gig-workers hired through Craigslist to charge and deploy them. Bird, flush with investor cash, was willing to shell out a premium for this new job.

But that model was short-lived, partly because the micromobility startups realized that while using independent contractors was great to help them rapidly scale in unfamiliar cities, it also left them with little control over workers. Some flyers also started to cheat the system by hoarding scooters until the bounty on them went up, Campbell said.

When he started as a flyer, Campbell was making between $40 to $50 an hour. “I was like…I know that this isn't sustainable,” he said, “because this has happened over and over in the gig economy.”

Bird's independent scooter wranglers and chargers are called “flyers” and used to be able to make $20 per device wrangled. Photo by Maylin Tu

How AB5 Impacted E-Scooter ‘Flyers’

In 2019, California passed AB5, a bill targeting companies who misclassify employees as independent contractors.

In response, Uber and Lyft and other companies that rely on gig-workers spent $200 million to pass Prop 22 in California, exempting themselves from the law’s requirements.

E-scooter companies were forced to take a different route. Bird launched its fleet manager program in early 2020. The program employs small businesses like Aceves’s to manage e-scooters while giving them a cut of the profits. To become a fleet manager, individuals must register their businesses as an LLC. Lime uses logistics partners, while competitors like Superpedestrian and Veo make a point of hiring W-2 workers from the local community.

As municipalities ratchet up their regulations around micromobility services, they tend to look favorably on companies that employ W-2 workers. Los Angeles, for instance, is an “open permit” city, which means there is no competitive request for proposal (RFP) process, but companies must submit an annual permit application and a $20,000 fee. Campbell points out that for many cities, including Santa Monica and Long Beach, operators are required to submit detailed applications that are scored on multiple metrics, including community investment.

“It also makes them stand out relative to Bird or Lime that [aren’t] using that type of employment setup,” said Campbell.

Critics of AB5 say that gig-work is actually ideal for parents, caregivers or anyone looking for flexible work with a low-cost of entry.

“It'd be great to have these easy entry, easy exit jobs, where you can hustle when you want and put them down when you don't,” said Erin Hatton, professor of sociology at the University of Buffalo. But some employers take advantage of workers by offering flexible work without employee rights and benefits, which Hatton calls a “false construct.”

The “hybrid” fleet manager model was a logical next step for e-scooter companies, according to Campbell. As the rapid growth in the shared micromobility market started to slow, there was also regulatory uncertainty with AB5.

“Bird probably had hundreds of thousands of chargers at a certain point, so it would have been really hard for them to do a 180 and pivot to an employee model,” said Campbell.

The new fleet manager program seemed like a win-win for both Bird and the independent contractors it hired. No longer were contractors hunting down devices for a bounty. Instead, they would become responsible for the care, charging and placement of individual scooters. The better a fleet manager’s e-scooters perform, the more money they can make. On its recruitment page, Bird advertises that fleet managers can make up to $1,500 per week (with fine print caveats).

At the same time as it offloaded risk and gained more control, Bird didn’t have to invest in hiring W-2 employees.

Bird did not respond to a detailed list of questions about its fleet manager program, but confirmed to dot.LA that it employs 40 “independently owned businesses” in the city of L.A. who are “deeply invested in the communities they serve” and offer “bespoke block-by-block operational expertise.”

“I do not represent or speak for Bird or on their behalf,” Aceves read from his phone while sitting in the driver’s seat of his pickup truck in the parking lot outside of the Perch container. “So, I'm only speaking for my LLC, which is called Up Now.” He added that, per this message received from his engagement manager at Bird, “My relationship with Bird is as a logistics service provider.”

It’s not just about money. Going from “flyer” or “juicer” to “fleet manager” can be a source of pride. Aceves said that some flyers were ashamed to be charging scooters and that it was stigmatized as the “Millennial’s way of collecting cans.” But after they became fleet managers, those same people started bragging about how much money they were making.

“They have hustle,” said Perch Mobility co-founder and CEO Tom Schreiber. “They want to build a better life and have all the dreams everyone else does.”

In 2020, Medium’s tech-focused OneZero publication released an investigation into the program, claiming that Bird was “luring” fleet managers into thousands of dollars of e-scooter debt. However, a follow-up by Smart Cities Dive offered a different picture, focusing on some fleet managers who said they were happy with the program and making good money.

Bird is careful to refer to fleet managers as independent small businesses (not employees) and to emphasize the autonomy that fleet managers have to manage their own fleet. While fleet managers are responsible for repairing damaged scooters, Bird owns the scooters and fleet managers are not financially liable for lost or stolen scooters. But if owning your own business is part of the American dream, that dream can also be exploited by companies who promise one thing and deliver another, according to Hatton.

“Being able to realize a dream of being an entrepreneur — especially when you're coming from such a background — is really powerful,” she said. “And if it pays off for them, I'm all for it. But if they're being taken advantage of under the guise of a dream, then that's deeply problematic.”

From Bounty Hunter to Fleet Shepherd

Adan Aceves has seen things as a Bird fleet manager working nights in Downtown L.A. He jokes that he should start wearing a body cam to capture it all. At 2 a.m. when the bars and clubs get out, things start to get interesting.

Last week, he broke up a fight between two men in front of Union Station. One man was accusing the other of raping his niece.

“And I said, ‘If this dude's a rapist. I'm gonna help you beat him up. When and where?’ And he said it happened 20 years ago in Compton.”

The man being accused said he didn’t know the other man and that he was sleeping when he was attacked.

He’s been in some tense situations while trying to retrieve scooters, including being threatened by a guy with a stick and pulling out his knife in self-defense.

At night, Aceves functions as “eyes on the street” In Downtown L.A., providing a kind of crucial, if unrecognized, public service, in keeping the city safe and vibrant (as urbanist Jane Jacobs outlined in her book “The Death and Life of Great American Cities”).

There are the drunk people who think it’s funny to knock over a row of scooters like so many dominoes or tangle them up in a torturous triangle for fun. He only lines up three to four scooters at a time because he’s found that people are less likely to mess with them.

People have left scooters on the freeway or under bypasses, and once, someone threw a Bird onto a street sign, where it hung suspended like an upside down “L.”

“They’ll leave them in places where it's like, ‘Why? Why would you put it here?’ Not only is it time-consuming but sometimes it can be dangerous,” he said.

Sometimes an enterprising user will ride a Bird scooter all the way to Venice or Marina del Rey, where he has to go to retrieve it, cutting into his profit margin.

One Bird recently made its way all the way to Mexico. “I told Bird, “Hey — this bird decided to migrate.”

All told, he’s lost about 130 scooters since he started. And while e-scooters are extremely visible on the streets of L.A. — much to the chagrin of some Angelenos — Aceves works mostly behind the scenes, not only recharging and rebalancing scooters, but also making sure that they are legally parked and not blocking the public right of way.

“That is one thing I would like people to know — that there [are] actual humans behind each scooter,” Aceves said.

For Lack of a Safety Net

Photo by Maylin Tu

Aceves works with two other fleet managers (one is his brother). He said they help each other out. Otherwise, it can be hard to maintain a grueling, seven-nights-a-week schedule, with no vacation pay or sick days.

He makes more money than he would as a so-called gig-worker, but he doesn’t receive either the legal protections afforded employees under federal and state law, nor the types of perks tech companies often offer.

“One of the things that is quite tricky about the independent contractor model is that the costs of that model are not readily apparent,” said Hatton.

Nonetheless, for many workers, the trade-off is worth it and Aceves says he enjoys the flexibility.

“I enjoy the freedom. I enjoy driving Downtown. I like the fact that the scooters are providing a service to a city without majorly giving us pollution and decreasing traffic,” he said. “I always think to myself, ‘I gotta leave this planet better than when I came in. Because my kids are here and possibly their kids’.”

Aceves grew up during “some of the worst years in South Central'' and wants to write a book about the experience. He thinks he has enough material — the kind of stories you wouldn't believe if he told them to you — for two or three seasons of a TV show.

He was 11 during the 1992 Los Angeles Riots, when the streets were on fire.

“I was like, ‘What the hell's going on? Is it the end of the world?’.”

As a teenager, he said he had a few run-ins with the LAPD’s infamous Rampart Division . Aceves said corrupt cops would try to shake down gang leaders for money and retaliate against people in the neighborhood when they refused — doing everything from beating them up, to trying to plant drugs or guns on them, to picking them up and leaving them in a rival gang’s neighborhood.

“So basically expecting you to get killed ‘cause it wasn't like they were going to greet you — or offer you a ride back. So I would be running home at 2 a.m. down Central Avenue, as fast as I could. People would think I was on drugs and I was just running home for my life.”

Today, Aceves cruises through the streets of Downtown L.A. every night, to put his daughters through college and to make the world a better place.

In working with cities, companies like Bird straddle the line between private enterprise and public service — claiming to make cities greener, safer and more equitable. And shared micromobility has changed the landscape of Downtown L.A., arguably for the better. But it’s people like Aceves who deal with the best and the worst the city has to offer.

At one point, Aceves leans down to pick up a LINK scooter that’s lying with its handlebars in the street. “We’re not supposed to touch competitors’ scooters,” he explains. “But normally, if they're in a situation like this, I pick it up…I feel like it's my community.”

From Breaking Tech News to Backing It
Image Source: Sources

🔦 Spotlight

Hey there, Los Angeles.

For the past decade, Alex Heath has made a career out of figuring out what the technology industry is doing before everyone else.

Now, he is going to invest in it.

Heath announced this week that he is joining Los Angeles-based Sound Ventures as a partner on its investing team. The veteran technology journalist will continue independently operating Sources, the newsletter and podcast business he launched after leaving The Verge last year.

It is an unusual career move, but perhaps not as unusual as it initially appears.

Journalists and venture capitalists spend much of their time doing surprisingly similar work. Both look for signals before they become obvious, build relationships with people who know what is coming next and attempt to distinguish a lasting shift from a convincing story.

The crucial difference is what happens after they find one.

A journalist publishes. An investor writes a check.

Heath has spent years reporting on some of the technology industry’s most powerful companies and executives. At The Verge, where he served as deputy editor, his work focused on the internal decisions shaping companies such as Meta. More recently, Sources has taken readers inside the AI race through reporting and interviews with executives including Sam Altman and Mark Zuckerberg.

That experience gives Sound something venture firms increasingly want: someone who already understands the founders, companies and narratives competing to define the next era of technology.

Sound Ventures is not exactly starting from scratch. Led in Los Angeles by Guy Oseary and Effie Epstein, the firm manages nearly $2B and has backed companies including OpenAI, Anthropic, World Labs, Brex, Affirm and GitLab. According to The Wall Street Journal, Sound deployed more than $800M into early positions in OpenAI, Anthropic and World Labs as it intensified its focus on artificial intelligence.

Heath is joining during an important transition for the firm. Ashton Kutcher, who co-founded Sound with Oseary in 2015, departed earlier this year to launch a new venture firm. Oseary and Epstein are continuing to lead Sound while raising its fifth flagship fund and sharpening its strategy around companies with the potential to reach meaningful commercial scale.

Adding Heath suggests that Sound’s next phase will not be defined by capital alone.

As AI makes it faster and less expensive to build software, technical capability may become less effective as a differentiator. More startups will be able to create credible products, and more of them will compete for the same finite supply of customers, talent and attention.

In that environment, knowing how to identify a compelling founder is only part of the job. Venture firms also need to understand how companies earn trust, communicate what makes them different and remain culturally relevant in an increasingly crowded market.

That is familiar territory for Sound. Oseary built his career managing artists including Madonna and the Red Hot Chili Peppers, where recognizing talent was inseparable from helping that talent connect with an audience. Heath brings a different version of the same instinct, developed through finding important stories and understanding why people should pay attention to them.

Heath will continue owning and operating Sources independently while expanding its podcast and interviewing prominent voices across the technology industry. That means he is not abandoning the platform or audience he built. He is adding a new vantage point.

The combination could prove especially valuable to Sound. Heath brings the instincts of a reporter, the reach of an independent media founder and years of relationships with the people shaping technology. Now, he can apply that experience to finding and supporting the next generation of founders.

It is a fitting evolution for someone who has spent his career identifying important technology stories early.

This time, he will have the opportunity to help write what happens next.

Venture firms once competed primarily through capital, networks and operating expertise. Now, access to attention is becoming an asset of its own. Founders need help reaching customers and shaping public understanding, while investors want better ways to recognize which people and ideas will command that attention next.

Sound Ventures hired someone who has spent a decade doing exactly that.

Heath used to decide which technology stories were worth following.

Now, he will help decide which ones get funded.

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

🤝 Venture Deals

    LA Companies

    • Maven Robotics emerged from stealth with a $100M Series A and humanoid robots already operating in warehouse deployments. The company says its robots can work for 16 hours a day with 99% uptime and is positioning itself as a reliable alternative for businesses whose existing robotics providers fail to meet deployment targets. - learn more

    LA Venture Funds
    • Bedrock Capital participated in Mach Industries’ $600M Series C extension alongside Ribbit Capital, Infinite Capital and Sequoia, bringing the round’s total to $900M and doubling the defense startup’s valuation to $3.7B in three months. The Huntington Beach company manufactures lower-cost unmanned aircraft, strike weapons and counter-drone systems, while expanding into solid rocket motors and jet-engine production to address critical defense supply-chain bottlenecks. - learn more
    • U First Capital participated in Positron AI’s $875M funding round, which was co-led by NEA, Atreides Management, Valor Equity Partners, Andra Capital, SemiAnalysis Capital and Jim Clark, valuing the AI chip startup at $5B. Positron will use the capital to bring its memory-focused Asimov processor and Titan server system to market, offering an energy-efficient alternative to GPUs for running AI models. - learn more
    • WndrCo participated in Harvey’s $550M funding round, co-led by Diffusion and Lightspeed Venture Partners, valuing the legal AI company at $15.5B. Harvey will use the capital to expand its team and advance its AI platform, which helps law firms, in-house legal departments and professional-services organizations build and manage proprietary legal intelligence. - learn more
    • Nolan Capital participated in Encoded Therapeutics’ $275M Series F, which was co-led by GV and another healthcare-focused fund and included several new and returning investors. The biotech will use the capital to advance its lead gene therapy for Dravet syndrome through pivotal studies, expand its manufacturing capabilities and prepare another treatment for post-amputation nerve pain for clinical testing in 2027. - learn more
    • UP Partners led Overroute’s $5.5M seed round to expand its AI-powered freight execution platform for large trucking fleets and logistics operators. The company’s AI agents automate load monitoring, exception management and freight coordination, helping fleets respond to disruptions and keep shipments moving with less manual work. - learn more
    • Patron Fund participated in System’s $20M funding round alongside Will Ventures, Vine, Courtside, Daybreak, SV Angel and RiverPark Ventures. The San Francisco company will use the capital to expand its vertically integrated peptide platform, which connects patients with licensed clinicians and personalized treatments from U.S. compounding pharmacies while emphasizing testing, traceability and regulatory compliance. - learn more
    • Alpha Edison led Onix’s $5M pre-seed round, with participation from Garage Capital, Ride Home Fund and strategic investors including UTA co-founder Jeremy Zimmer and Real Ventures co-founder JS Cournoyer. The Montreal startup will use the funding to develop its private AI platform, onboard more specialists and prepare for a public launch, offering personalized guidance built exclusively from licensed expert knowledge rather than information scraped from the internet. - learn more
    • Rebel Fund participated in VideoGen’s $3.3M seed round alongside Y Combinator, Lobster Capital, Stretford End Capital, Mento VC, Pioneer Fund and Decacorn VC. The San Francisco startup, which has reached more than 5M users across 190 countries, will use the funding to expand its team and grow its AI platform for producing editable, copyright-free videos. - learn more

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      Who Gave the AI Access?

      🔦 Spotlight

      Happy Friday, Los Angeles.

      The newest employee in the office does not need a desk, a salary or a coffee order. But it may have access to your company’s emails, financial records, customer data and software systems.

      That raises a fairly important question: Who decides what an AI agent is allowed to do?

      El Segundo-based cybersecurity company Saviynt is building its next chapter around the answer.

      Carrick Capital Partners announced this week that it closed a $600M continuation vehicle for Saviynt, including a new $255M investment in the company. The transaction allowed Carrick’s existing investors to either take liquidity or remain invested, while also providing liquidity to Saviynt employees through a tender offer.

      Continuation vehicles are not exactly known for making gripping Friday reading. The company behind this one is considerably more interesting.

      Saviynt develops identity security software that helps businesses determine who can access their applications, data and infrastructure. Increasingly, however, “who” does not refer exclusively to a person.

      Companies are deploying AI agents that can retrieve information, write code, communicate with customers and complete multistep tasks with limited supervision. These digital workers need access to company systems to be useful, but every new permission also creates another opportunity for sensitive information to be exposed or an unintended action to be taken.

      In other words, AI agents may be tireless employees. They are not necessarily trustworthy ones.

      Saviynt is addressing that problem through Zuma, its platform for discovering, securing and governing AI agents, large language models and other nonhuman identities alongside a company’s human workforce. The goal is to give businesses one place to determine what every identity can access, whether it belongs to an employee, a contractor, a software application or an autonomous agent operating at machine speed.

      The opportunity appears to be growing quickly. Saviynt has surpassed $300M in annual recurring revenue, up from approximately $10M when Carrick first invested. The company says bookings have increased by more than 80% this year while customer retention remains at 96%.

      The new investment was completed as part of the final close of Saviynt’s previously announced $700M Series B, which valued the company at approximately $3B. Carrick’s continuation vehicle was led by Coller Capital and co-led by HSBC Asset Management, giving the investment firm more time and capital to remain behind one of its strongest-performing companies.

      For Saviynt, the funding will support further development of its identity platform, deeper integrations with major cloud and software providers and its push to become a central security layer for the agentic workplace.

      That ambition reflects a broader change taking place inside companies. The first wave of enterprise AI focused largely on what the technology could generate. The next phase is about what it can actually do, and whether businesses can maintain control once AI moves from answering questions to taking action.

      Saviynt is betting that identity will become the gatekeeper.

      AI agents are gaining access to the digital workplace, whether corporate security teams are ready for them or not.

      Someone still has to hold the keys.

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

      🤝 Venture Deals

        LA Venture Funds

        • Fulcrum Ventures participated in Critical Materials Group’s $10.3M seed round, led by Overmatch Ventures and joined by Victory Six Advisors. The Austin-based defense manufacturer will use the funding to develop and commission modular, automation-ready production systems designed to expand domestic manufacturing capacity for munitions and advanced energetic materials. - learn more
        • Fusion VC participated in Newlight’s $9M seed round alongside lomarlabs, BIRD Energy, Undeterred Capital and CiRi Ventures. The San Francisco-based maritime technology company recently demonstrated its hydrogen-hybrid retrofit on an 8,500-nautical-mile commercial voyage, reducing fuel consumption by 24% and carbon dioxide emissions by 28%. - learn more
        • Rebel Fund participated in Metal’s $4.5M seed round alongside a16z, Y Combinator, Gaingels, Indus Valley Capital, Phaze Ventures and Pioneer Fund. Metal will use the funding to build an AI-native operating system that helps founders identify relevant investors, manage outreach and automate other parts of the venture fundraising process. - learn more
        • UP.Partners participated in Reframe Systems’ $40M funding round, led by Energy Impact Partners and joined by Counterpart Ventures, E12 Ventures, Global Brain, Thin Line Capital and LACI Impact Fund. The homebuilding startup will use the capital to expand its network of robotics-powered microfactories, which it says can construct homes three times faster and at 35% lower cost than traditional methods. - learn more
        • Clocktower Technology Ventures participated in Sharpi’s $4M seed round, co-led by NXTP and ONEVC and joined by MAYA Capital. The Brazilian startup will use the funding to expand its team and develop autonomous AI agents that connect WhatsApp conversations with enterprise systems to automate B2B sales tasks such as order processing, customer follow-ups and demand generation. - learn more

        LA Exits

        • Extensiv, a California-based provider of warehouse management and fulfillment software, has been acquired by Descartes Systems Group for approximately $120M in cash. The acquisition adds Extensiv’s AI-enabled inventory, order, billing and omnichannel fulfillment tools to Descartes’ logistics network, strengthening its offerings for third-party logistics providers and ecommerce brands. - learn more
        • DocSolutionUSA has been acquired by Stewart Information Services alongside ProTitleUSA, adding mortgage document generation and automation capabilities to Stewart’s title services platform. The companies provide title, document and due diligence services for mortgage servicers, investors and capital markets clients; financial terms were not disclosed. - learn more
        • Fysh Foods, the Los Angeles-based plant-based seafood brand founded by creator and entrepreneur Zoya Biglary, has been acquired by City Roots Hospitality in an all-cash deal with undisclosed terms. City Roots plans to introduce Fysh Foods’ raw fish alternatives across its New York City restaurants and potentially expand the brand beyond the city as its restaurant portfolio grows - learn more

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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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