LA Tech Updates: Fidelity Reportedly Seeks to Unload Bird Shares at a Loss; Warner Bros Streaming 2021 Releases; Plug-In South LA's Accelerator for 2021

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.

LA Tech Updates: Fidelity Reportedly Seeks to Unload Bird Shares at a Loss; Warner Bros Streaming 2021 Releases; Plug-In South LA's Accelerator for 2021

Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.

Today:

  • Fidelity Seeking to Unload Bird Shares at a Loss
  • Warner Bros.' 2021 Films Will Be Released in Theaters, HBO Max Simultaneously
  • Plug-In South LA Opens New Accelerator Cohort for 2021

    Fidelity Reportedly Seeks To Unload Bird Shares at a Loss 

    Escooter Unicorn Bird Seeks to Unload Santa Monica HQupload.wikimedia.org

    Fidelity Investments is attempting to unload some of its shares in Bird Rides Inc. at a loss, according to a report published Wednesday night by Business Insider.

    The move comes after dot.LA reported in October that the mutual fund giant has marked down the value of its Bird investment by 17% since the beginning of the year.


    As a private company, Bird does not have to share its financials. Nor do the venture funds that hold most of its shares. However, Fidelity is required to account for shares at their fair market value so it provides a rare glimpse into the company's health.

    But a source close to the matter said the sale should not be seen as any indication of Bird's financial performance. The shares represent less than ten percent of Fidelity's position and the intended sale is the result of a new portfolio manager taking over who does not want to invest in pre-IPO companies, the source said.

    Neither Bird nor Fidelity would respond to dot.LA's request for comment.

    Bird became the fastest company in history to reach unicorn status in 2018 and achieved a $2 billion valuation less than a year later. But as the pandemic hit, it abruptly laid off 406 employees via a Zoom call and was forced to remove its fleet from city streets just as it was gearing up for its normally lucrative summer season.

    dot.LA reported in October the company put its Santa Monica offices up for sublease less than a year after completing a costly renovation.

    Bird has maintained the pandemic has been a positive as riders prefer scooters over crowded buses and subways. It says it is seeing riders take longer trips than they did before the pandemic.

    Last month, Bloomberg reported Bird is looking to go public via a blank-check company. Bird said it had no plans to go public "this year," which did not exactly rule out a SPAC sometime in the near future.

    ​Plug-In South LA Opens New Accelerator Cohort for 2021

    Plug In South LA's Accelerator Program is returning in 2021. The outfit is looking for 10 Black and Latinx founders who have proof of product-market fit and traction. The organization, founded in 2015 by Derek Smith, aims to build a network for Black and Latinx founders in South Los Angeles.

    Last year was the inaugural accelerator program funded by Verizon, Silicon Valley Bank and Nike. The 2019 cohort hosted five startups including Spooler, a tech-based clothing design startup that credits the program with helping to increase revenue two fold since March. During the program, the company received a contract to launch a Sesame Street active wear product line.

    The last day to apply for the program is Dec. 9

    Warner Bros.’ 2021 Films Will Be Released in Theaters, HBO Max Simultaneously

    Warner Bros. will be streaming all its 2021 theatrical releases on HBO Max in a blow to already struggling theater chains as the pandemic continues to reshape Hollywood.

    The AT&T-owned studio's 17-film slate, including "Godzilla vs. Kong," "Mortal Kombat," "The Suicide Squad" and "Matrix 4," will be available on the streaming platform exclusively for one month, starting when they are released in theaters and then will disappear from the platform.The move comes shortly after the company announced it would bring its expected blockbuster "Wonder Woman 1984" directly to HBO Max.


    "We're living in unprecedented times which call for creative solutions, including this new initiative for the Warner Bros. Pictures Group," said Ann Sarnoff, chair and CEO of WarnerMedia Studios and Networks Group, in a statement released on Thursday. "No one wants films back on the big screen more than we do. We know new content is the lifeblood of theatrical exhibition, but we have to balance this with the reality that most theaters in the U.S. will likely operate at reduced capacity throughout 2021."

    Sarnoff said the model is a temporary one, but the decision will reverberate across an industry that has taken away screening exclusivity from theaters and reshaped how studios function.

    "With this unique one-year plan, we can support our partners in exhibition with a steady pipeline of world-class films, while also giving moviegoers who may not have access to theaters or aren't quite ready to go back to the movies the chance to see our amazing 2021 films," Sarnoff said. "We see it as a win-win for film lovers and exhibitors."

    AT&T's decision to favor its streaming service over theaters comes in response to the pandemic, but it also aligns with CEO John Stankey's public comments that he wants to center his company's strategy around streaming. It's part of a broader blueprint meant to goose AT&T's broadband business, which led the company to acquire Time Warner in 2018 for $85 billion. Comcast, AT&T's chief broadband rival, is pursuing a similar game plan with its own streaming service, Peacock, which falls under its subsidiary NBCUniversal.

    AT&T last month announced layoffs at WarnerMedia to focus the company around HBO Max. Elsewhere, Disney — which logged nearly 74 million paid subscribers to its Disney Plus streaming service last quarter — has refocused on that format. It's another example of a shift toward streaming that was already underway but which has been accelerated by the pandemic.

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    ben@dot.la
    ⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

    🔦 Spotlight

    Happy Friday Los Angeles,

    The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

    The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

    For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

    While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

    The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

    Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

    As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

    For updates or more event information, visit the official Tech Week calendar.


    🤝 Venture Deals

    LA Companies

    • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

    LA Venture Funds
    • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
    • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

      Download the dot.LA App

      🌴🧑‍💻 Your Guide to LA Tech Week 2024

      🔦 Spotlight

      Happy Friday Los Angeles,

      As many of you know, LA Tech Week is right around the corner, kicking off next Monday October 14th bringing together founders, creatives, investors, and engineers for a week of immersive events, panels, and socials across the city. From blockchain and AI to biotech and design, LA Tech Week is a chance to dive into the ideas shaping today’s technology landscape.


      What to Look Forward To

      Insights from Visionary Leaders: Hear firsthand from industry trailblazers as they share stories, challenges, and key lessons from their experiences. Expect fresh perspectives on AI, venture capital, biotech, and the ethical questions around emerging technologies.

      Interactive Panels: This week isn’t about watching from the sidelines; it’s about engaging directly with the tech community. Participate in hands-on panels discussing everything from startup scaling to ethical AI, with honest insights from those actively shaping these fields.

      Networking Mixers & Social Events: Meet and connect with founders, VCs, developers, designers, and fellow techies across LA. Rooftop mixers, lunch meetups, and creative gatherings offer the perfect chance to spark ideas and collaborate.

      Plan your week with the daily lineup, organized by location for easy navigation:

      For updates or more event information, visit the official Tech Week calendar.

      Enjoy LA Tech Week 2024!!


      🤝 Venture Deals

      LA Companies

      • Clout Kitchen, a Los Angeles and Manila based startup, has raised $4.45M in seed funding, co-led by a16z SPEEDRUN and Peak XV’s Surge, to develop AI-powered digital twins, which enables gaming creators to produce realistic virtual avatars for content and fan engagement. - learn more
      • MeWe, a privacy-focused social media platform, has raised an initial $6M in Series B funding led by McCourt Global to support Web3 integration and expand its decentralized network for 20 millions users. - learn more

        LA Venture Funds
        • EGB Capital participated in a $10M Series A funding round for MiLaboratories, which develops software that enables biologists to independently analyze complex genomic data, accelerating research and discovery in fields like drug development. - learn more
        • Crosscut Ventures participated in the $13.75M seed round for Airloom Energy, a company focused on developing airborne wind energy technology to harness high-altitude winds, with plans to accelerate a pilot project in Wyoming. - learn more
        • Overture VC participated in a $5.5M Seed funding round for Molg Inc., a company developing robotics and software for circular manufacturing, designed to disassemble electronics efficiently and recover valuable materials to reduce e-waste and support sustainable production. - learn more


          LA Exits

          • Options MD, a Los Angeles based telemedicine platform that provides care for people suffering from severe and treatment-resistant mental illness, is set to be acquired by Resilience Lab, an AI-driven provider focused on enhancing mental health care access. - learn more

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          LA Tech Week 2024: Saturday-Sunday Event Lineup
          tech-week

          Here’s what’s happening during the closing weekend (Oct 19 - Oct 20) of LA Tech Week 2024! Events are organized by location so you can easily catch the sessions that interest you most.

          SATURDAY EVENTS

          BEVERLY HILLS

          12:00 PM

          • BIG Showcase (Invite Only):

          BIG Showcase (Invite Only)

          2:00 PM

          Light Dao

          Struck Capital, Seahorse Express

          EAGLE ROCK

          12:00 PM

          Sunrise Integration, Shopify

          EL SEGUNDO

          9:00 PM

          Administratum, Valar Atomics

          HOLLYWOOD

          10:00 AM

          Passes

          MALIBU

          6:00 PM

          • Malibu Beachfront Investors Networking & Wine Tasting:See Details

          Gaya Ventures

          MARINA DEL RAY

          6:00 PM

          • Awaken Your Spirit: A Journey of Transformation (Invite Only)

          Sagos Distro, Alma Wellness

          SANTA MONICA

          7:00 AM

          Founders Running Club

          8:30 AM

          Techstars

          9:00 AM

          Magic Mind

          StartupStarter, Inc., City of Santa Monica

          10:00 AM

          Gen She

          AI LA

          Crea, Barry's, Unsubscribe

          10:30 AM

          Plantologist

          11:30 AM

          • Pickleball Palooza (Invite Only)

          YouTube

          1:00 PM

          • Realfren Games: From strangers to an inner Realfren within 52 weekends: See Details

          Office for Humanity and Circuit Works

          • Talking blockchain technology with special guests: See Details

          LadyDayDao

          5:00 PM

          KARD, What's Plots

          THE VALLEY

          7:00 AM

          Camino5

          VENICE

          9:00 AM

          Westside Yogis

          11:00 AM

          Open App

          1:00 PM

          Ripe and Teddy's Hot House

          4:00 PM

          • Fashion Forward: How AI is Redefining the Fashion Industry: See Details

          VIAVIA, BNTO.RENT, ALMA.AI

          VIRTUAL

          11:00 AM

          BLCK UNICRN

          WEST HOLLYWOOD

          7:00 PM

          Next Sequence

          SUNDAY EVENTS

          INGLEWOOD

          12:00 PM

          Entrepreneur Ventures, VCPE GROUPS

          PLAYA DEL RAY

          2:00 PM

          AI LA, DELL, NVIDIA

          SANTA MONICA

          10:00 AM

          • Women Founders, Cold Brew & Beach View, Rooftop: See Details

          Clutch Talent

          11:00 AM

          11DollarSunglasses.com, Less Litter Foundation

          12:00 PM

          Data in LA, Amplitude

          12:30 AM

          New Moon, Warner UK Innovations

          TOPANGA CANYON

          3:00 PM

          Dreamore

          VENICE

          8:00 AM

          • Surf session with founders, investors, creators: See Details

          Surfed Club, Bow Shock

          12:00 PM

          • Podcast Panel and Brunch: LA Tech Community Builders: See Details

          WeAreLATech.com, Blankspaces.com

          VIRTUAL

          2:00 PM

          BLCK UNICRN


          For updates or more event information, visit the official Tech Week calendar.

          Enjoy LA Tech Week 2024!


          Download the dot.LA App

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