CNN’s Van Jones: Genius is Everywhere

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

CNN’s Van Jones: Genius is Everywhere

Van Jones hosts his own show on CNN, and he's the founder of The Dream Corps, an accelerator that supports economic and environmental innovation. Its #YesWeCode initiative aims to help 100,000 young people from underrepresented backgrounds find success in the tech sector. Van is an important voice on social justice and STEM education, and Time Magazine named him one of the 100 Most Influential People in the world. In this episode, Van joins Spencer at Zillow Group's New York office for a live recording in front of employees. The two discuss Van's impressive background working in communities and promoting green jobs, how to increase diversity in tech and why young people have the power to change the world.


Press Play to hear the full conversation or check out the transcript below. You can also subscribe to Office Hours on Apple Podcasts and PodcastOne.

Spencer Rascoff:Thanks, everybody. We're here in the New York office of Zillow Group. I'm here with our guest, Jones. Please, everyone, give Van a welcome.

Van, thanks for coming on Office Hours. I wanna start by having you walk us through your career. We know you as a public media personality on CNN, but there's a whole career that preceded that. So, tell us how you got there, and walk us through your career.

Van Jones:I think probably the best way to start is just to talk about where I was born and raised, and then just go from there. But I was born in Jackson, Tennessee. I was talking to a friend from Kentucky. I was born in Jackson, Tennessee. My dad had been born in segregation and poverty in Memphis in 1944. So, he grew up basically in a shotgun shack, joining the military to get out of poverty.

Everybody else was running out of the military. My dad ran into the military to get out. When he got out, he put himself through college. He married the college president's daughter, who was my mother, 'cause Willy Jones was bad. My dad was bad.

And then, he put his brother through college. He put his cousin through college. And then worked with my mom, put me and my sister through college. And I'll always point out, when my father died, the picture that we put of him on the funeral program was him standing in front of Yale Law School the day I graduated with his hands in the air —

Rascoff: Proud moment.

Jones:Yeah, proud moment for him, given where he started from. So, but my dad was such an “up and out of poverty guy. He got himself out of poverty, then he was a cop in the military, then he was an educator. And I just felt like my dad helped so many people, including my whole family, get out of poverty really with nothing.

How could I have a Yale law degree and not try to at least beat him, if not best him? So, I became a — 24 years old, graduated from Yale Law School, moved to the Bay Area and started working on criminal justice, police reform. I was woke before y'all had alarm clocks.

Rascoff:I'm guessing most of your Yale classmates pursued a different path?

Jones:You know what's so funny? Everybody I went to Yale with, they wanted to be in politics, and they wouldn't take on any controversial issues. They were worried about their Supreme Court testimony. And when I was just on the left side of Pluto. I was on every issue, every protest, every demonstration.

And I wound up working in the White House, and they didn't. Just saying. Follow your heart, follow your dreams. I started an organization called the Ella Baker Center for Human Rights, and we worked to try to fix the juvenile justice system. We wound up closing five abusive youth prisons in California, and we cut California's youth prison population by 80 percent with no increase in youth violence or youth crime. A big cost savings. Stopped them from building a super jail for kids in Oakland. Reformed the San Francisco Police Department. This is all in the 1990s, early 2000s.

Rascoff:All your early to mid-20s?

Jones:Twenties to early 30s, and I just burned out. It was too hard. A lot of funerals. You work with urban youth. You wind up going to a lot of funerals. You got young people in the caskets, and then old people with white hair sitting up in the pews, which is the reverse of what you expect. And there were so many — I've still gone to more funerals in Oakland than graduations.

And you're in a situation when you have that much bad stuff happening — even little things that you don't think about. Like, there's so many sidewalk memorials that when little, bitty kids see balloons, they sometimes start crying 'cause they think that the balloon is — they associate that with memorials of kids who have gotten killed.

So, just — that kind of stuff, that's just too hard for me. So, I wound up deciding to do something very different, just trying to get jobs for kids coming home from jail. And we had a big solar boom happening in California at that time — now you're about 2005, 2006.

And people were ordering the solar panels for their houses, which you can find on Zillow —

Rascoff:Thank you. Well done. [Laughter]

Jones:But they were ordering solar panels for their houses, but it would take them three months, six months, nine months to get the solar panels up 'cause they didn't have enough well-trained people to do the work. And so, I saw a big opportunity to try to get young folks from the community trained to put up solar panels.

And that became a huge breakthrough because we got money to train youth to put up solar panels, and a woman named Nancy Pelosi, who had just become Speaker of the House, came and saw what we were doing. And she went nuts. She says, “You're fighting pollution and poverty at the same time by getting these young people jobs, cleaning up the environment, bringing in the clean energy revolution."

So, she took me to Washington, D.C. She had me testify in front of almost every one of her committees, and we got a guy named George W. Bush to sign a bill called the Green Jobs Act of 2007 to spread my program across the country. That was a huge victory. And then I wrote a book about it in 2008 — “The Green Collar Economy," available on Amazon. [Laughter]

And that book became a bestseller. A guy named Barack Obama read the book, and so, suddenly —

Rascoff: Did that happen organically? He was a community organizer in Chicago at the time. How did you get on his radar screen?

Jones: He was running for Senate — I mean, he was in the U.S. Senate, and he was getting ready to run for president. And Al Gore at that time was making a huge noise about the climate crisis and depressing everyone because it's just such a big problem, and I was seen as somebody who had a solution.

So, then he brought me to Washington, D.C., to help him, and wound up moving about $80 billion with a B from the federal government into clean and green solutions, $5 billion for solar — $5 billion during the so-called stimulus package. So, it was my job to coordinate that spend out for the president.

After that, I went to Princeton, taught there for a while. Then I wound up on CNN with my second book, and that's where I am. But my TV career is the shortest part of my career. I spent literally 25 years working in communities, doing tough stuff, trying to help people, and I'm mainly known for talking about tweets on CNN.

Rascoff: It's funny how life happens. What are advice to young people and common threads from that career path? What do you pull out as some things that you'd want to make sure a 25-year-old self or 20-year-old self would hear?

Jones: You have a lot more power than you think, that's the main thing I would say. Especially when you're young and you're new. You see a lot of stuff that could be improved. You see a lot of gaps. And often you're almost scared to say anything 'cause you don't want to get in trouble, you don't want to seem like you're a troublemaker.

But my experience has been if your heart's right about it, if you really are trying to, say for instance, make Zillow be the best possible thing or whatever it is, you can actually make a tremendous difference, wherever you are. You don't have to have the big title. You don't have to be the head of stuff. You can actually make a tremendous difference.

I think, number one: Don't underestimate your power and your influence. People said we'd never close a prison in California. They just built 20 of them. They said, “You're never gonna close any prisons." We were just too young and dumb to know any better and wound up closing five and making things better.

Another thing I would say is that I think most people have some calling inside themselves. Almost like secret hope about your life that you might be able to make a difference, help people. You're almost embarrassed to share with people — something you want to write, something you'd love to see happen.

It's almost embarrassing, but it keeps coming back, and it keeps coming back. That's why you were born. That thing. It's why you're here. Now, you're getting skills and experiences and meeting people, doing a lot of other stuff, but that's the thing. And if you can, without getting yourself fired or evicted — which, having had both happen to me, I don't recommend — if you can find a way to just continue to move in the direction of that dream, it's amazing what happens in your life.

All the stuff that makes no sense in your life — the crazy people you've met, the bad things that have happened to you, your nutty family — all that stuff winds up being fertilizer to help you do something really beautiful and really amazing. And I think, more than ever, it's gonna be unlikely people that do awesome stuff.

I think the people I see at the top of the game in Washington, D.C., right now — they're stuck, and they're fighting. I see people in D.C., I see people in Wall Street, I see people in Silicon Valley, Hollywood. The people at the top, they're having a hard time adjusting to all these changes in technology, in society and everything else.

They're really, really struggling, whereas the newer people, they seem to actually have a little bit of an inside track on what's next. If you can combine that generational perspective with a deeper purpose and a deeper calling, I think you can do a lot more than most people would assume.

Rascoff: I wasn't alive in the '60s, but obviously there seemed then to have been this sense of upheaval and of empowerment, and youth were able to make an impact. It does seem like we have a lot of that today, and some of that is because of the democratization of media and social media. Some of it is because of millennials and just young people feel they want to be part of something bigger, connected to some sort of a mission, whether it's at a company or in politics or in society.

It does feel different than it did 10 or 15 years ago.

Jones: Even five years ago.

Rascoff: I'm trying to adapt to that as a CEO of what's it like to run a company in that environment. I think the media's trying to adapt to what's it like to inform people about what's happening in the world around them in that sort of environment.

Jones: I think people have a sense, and they're not wrong, that maybe help is not on the way. And in that situation, you want to do something. And I think, frankly, people who are not in government and who are not in politics are gonna have to do more. It used to be that the future was written in law in Washington, D.C. It was written in law by senators, by congress people, by Supreme Court folks, people who have been democratically selected to figure out the future for America and write the future in law.

Now, frankly, the future is being written in code — computer code — in Silicon Valley and places like this. They're updating your phones right now. You didn't ask them to, they're just busy doing it. If you think about that, what that means is that the private sector — whether it's finance or technology or media — the momentum is there, the power is there, the money is there.

But the people who are sitting in those chairs, in your chairs, nobody's coming to you and said, “You're supposed to save the world." They say, “You're supposed to get your project done. You're supposed to meet these earnings reports." But increasingly, you're gonna feel an urgency about the world. And you don't think you can wait four years to vote on it and hope it works out okay.

And so, this is a new reality, I think, for the private sector — that you actually have the ability to make a change. You have a whole generation that wants to make a change, and there's a big failure at the government level. And not just United States — throughout the West.

That's gonna be something that's important to take seriously 'cause I think to keep your best folks and to get your best work out of your best folks, that social purpose has to get elevated a little bit.

Rascoff: Companies like ours have been pulled into this by their employees really saying, “We want you to be more engaged civically. We want you to either be more philanthropic or more outspoken on political issues or both." And it's complicated managing a company in that type of environment, especially such a polarized, politicized situation.

I know there are things that our employees want me to speak out on, topics that I have chosen not to engage on, where other CEOs have. The litmus test that I've made for myself is does it directly affect our employees or our company?

What have you seen, either guests on your shows or others that you're interacting with in media and business landscape — how are they navigating that?

Jones:The reason I like what you're doing is because it's authentic to you. I think the most important thing is that you do you.

But I think trying to figure out how to let that authenticity bubble up through the rest of the company — that's a more difficult management challenge. I'm looking around at CNN, and I'm new to CNN, but I'm not young. So, I was born in '68, so I'll be 50 years old this year.

I'm new to CNN, but I'm not young. Because I'm new, I have more in common with the younger people, though. And I'm watching all these younger people — they have just brilliant ideas. Just unbelievably brilliant ideas. What they think is newsworthy is not what we are putting on the news.

I think we're leaving a ton of value on the table, just because the thing is just not set up to listen to the 24-year-old who's been there for 18 months. And so, that I think for companies of this size, figuring out some way — you should be authentic to yourself, but keeping your ear big for the authentic voices in your building, which will actually change what you're authentic about, I think that's the big challenge.

Rascoff: The nice thing about young people is — you once were in your mid-20s, started to take on the criminal justice system — is they don't know any better. So, they're hopelessly optimistic and naive.

In my world, in the startup world, that enables them and encourages them to start companies, 'cause they don't know any better.

You focused on criminal justice, then the environment, and then, more recently, STEM and underserved populations or underrepresented populations in technology. So, tell us about #YesWeCode and what you're up to more recently.

Rascoff: Part of the tragedy of what I see happening on is just what I call wasted genius. I spent a lot of time in tough schools visiting prisons, juvenile detention centers. Geniuses, just super ridiculously smart people. Genius is actually pretty uniformly spread out, but opportunity is not.

And so, when I was at Yale, I saw kids doing all kind of drugs and terrible stuff. The cops never got called, nobody went to prison. At worst, they went to rehab. Maybe they had to take a semester off, and that was it. And then, those people went on to become doctors, and lawyers. George W. Bush, president of the United States, that — you could have a bad couple years if you're at a certain income level and a certain zip code.

But a few blocks away, kids doing fewer drugs got seven years, 13 years, 22 years in prison. And so, we're just wasting a ton of genius, some of those young people who are behind bars right now could be the Mark Zuckerbergs, or they could start the Zillows or whatever, but they just won't have that shot.

And so, we started #YesWeCode as really an opportunity to try to connect some of the brilliant urban youth that we know in the Oakland part of the Bay Area with Silicon Valley. And Prince, the late rock star, was a person who really wanted us to do that. And so, Prince and I were the co-founders on #YesWeCode.

And it's been a really powerful experience because, just from a physical point of view, Oakland is only about 37 minutes from the Google campus, and I think 41 minutes from the Facebook campus. It's very, very close. But it may as well be on the other side of the moon in terms of somebody who's going to — what used to be Castle Von High School and their thought about the fact that they could ever work at Facebook; it's just completely on the different side of the moon.

Rascoff: What can companies do to improve underrepresented minorities in technology?

Jones: I think a couple things. First, how many people here ever had an internship any place? So, just that. Just doing internships and apprenticeship programs is so important. Because the thing about it is when you try to hire somebody for a job, there's only one of two outcomes. They're either gonna make it, or they're gonna get fired.

And that can be scary for everybody. It's like, “We hired somebody." The thing about an internship: You win if you just complete it. I had an internship — nobody's expected to ace the internship. They just had it, and they did a good job, they made some friends, they learned some stuff, they got some mentorship, their sights got raised.

That is not happening for huge sections of our country. Just literally people can't even get their foot in the door. I think internship programs are important, and then apprenticeship programs, where somebody's paid to work for three months or six months, and they complete the apprenticeship.

Maybe they're great, and they're awesome, and you hire them, you could say. But if not, they at least successfully completed an apprenticeship program. They might be able to go someplace else and get a job. These are the kinds of things that an HR department doesn't want to have to deal with the brain damage and the heartburn around, unless there's a passion in the company and not just the CEO.

By the way, stuff like this — it can't just be the CEO. If the CEO's excited about the internship program and you're not, it'll be the worst internship program ever. If the CEO's passionate about diversity and you're not, or passionate about apprenticeships and you're not, then even the people who see the video and who come will have a miserable experience.

So, it's really about you as a cohort recognizing the importance to yourself of bringing in some of these new voices and perspectives. When I first started doing this, I thought about it more honestly as, “This is great for the young people." I didn't realize how great it was for the companies.

It took, actually, a while for me to realize how great it was for people with completely different perspective, Rolodex, understanding to come in.

We occasionally do these hack-athons through #YesWeCode, and we get urban kids in the same room with engineers from top companies, and every single time we do it, the engineers are blown away by how smart these kids are. We've done it in Baltimore, in Oakland, in New Orleans and all over the country.

And top engineers — they come in, they think they're gonna teach these kids stuff, and within 20 minutes their mouths are hanging open. Not just by how smart the young people are, but also by the kids of problems that young people want to solve using technology.

We did a hack-athon once where a young girl — the problem she was trying to solve was that she was in foster care, African-American, tough background. And she said, “Mr. Jones, when you're in foster care, your parents aren't around, and you just have to wear whatever clothes your foster parents find for you.

“So, sometimes when you go to school, people laugh at you because of the way you look. So, young girls like me, we sometimes do stuff that we're not proud of to get money to buy clothes so we don't get laughed at." Her solution, very simple, “Could we build an app where people who are donating clothes" — 'cause a lot of their clothes are donated — “where the clothes could be found on an app, and we could pick our own clothes, so that way we'd be picking clothes that would be good for us?"

The engineer sitting next to me said, “That's probably a multibillion dollar idea because second-hand, used clothes — that's a global market. And nobody's ever actually even suggested that." And what I said is, “Poor kids have billion-dollar solutions because they've got billion-dollar problems."

And when you start listening to what some people are going through, you'd wind up finding whole other market opportunities — all kinds of adjacent possibilities that just aren't available to you if it's just everybody who went to fancy schools like me.

This whole #YesWeCode experience — and I just appreciate so much your support of it — I didn't realize what an elitist snob I was. I'm just gonna be honest. The first time we did a hack-athon in Oakland I showed up, and you got all these kids, and they're from tough neighborhoods, and some of these neighborhoods don't get along.

And I walk in there, and my first thought is, “I hope there's not a fight." This is anti-racist, civil rights guy. But the bias in my own head, my first thought was, “I hope there's not a fight." And three days later, by the way, when these kids had shown up 20 to 30 minutes early every day — they're sitting there, waiting for us to open up the building, and you can't drag 'em out there at the end of the day. And they've come up with ideas that are 20 times better than anything anybody has come up with from my sector of society. I was embarrassed.

I had to tell 'em, I thought, “Listen, I totally underestimated you guys. And if I'm doing it, Lord knows what other people are doing." And it just made me a complete zealot lunatic about creating more opportunity for folks in those places. And if Zillow can be a place to absorb even a fraction of that talent, there's no telling what can happen here.

Rascoff: I wanna talk about the state of news media. Yeah, I know. [Laughter] It's a fraught topic —

Jones: I thought you liked me.

Rascoff: Probably a year or two ago, if you had said, “The state of news media," the topic of conversation would have been about how difficult it is for print — maybe broadcast — but mostly print to make money in an increasingly digital environment. Now, fast forward a couple years, and it's more about what role does the media play to inform the public? How do politicians interact with the media?

From your perch, where you sit as a media professional, what would you wish that politicians did differently?

And I'm not just talking about Trump. I'm talking more generally to try to make for better discourse.

Jones:I don't know. I wouldn't necessarily blame the politicians. I sometimes feel like I work in the tobacco industry. Like, “Don't use our product; it's bad for your health." Sometimes, I feel that badly about the way that the media has responded.

I don't blame the politicians; they do what they do given what's available to them. I blame, really, us in the media system. There's another round of innovation. We now have a system based on the phones in your pocket — a ton of data, no wisdom at all. That's how I would describe it.

You are overwhelmed with data, and you can't find wisdom no matter what you do. And it's really the lack of wisdom that I think is causing the problem. I don't know what's gonna happen, but this is not working.

Because for CNN, I get to go into red states and red counties, talk to Trump voters all the time. The way we're talking past each other is just heartbreaking.

Rascoff: That seems sort of — I have a hard time convincing myself that will ever change. That seems sort of inevitable, given the fragmentation of media and the echo chamber that we put ourselves into, and the way that digital advertising and Facebook personalization propagates that ideology bubble that we all live in. We seem to inevitably be on this course towards more and more polarization.

Jones: And thank you very much.

Rascoff: How do we fix it? Come on, Van, what's the solution?

Jones: Hey look, I don't know what to do. I think I know how to be in the face of it. Less arrogant, less insistent that I'm right about everything, less committed to treating the red states the way that colonizers treat Third World countries.

It's very tough to lead a country you don't love. It's very hard to win people over when you don't respect them at all. And the one thing I know we need to stop doing is having this attitude, “You are an idiot and a bigot and a fool and a chump. Vote for me." That's less persuasive than you might think if you listen to NPR and CNN and MSNBC.

I think trying to insult people into joining our cause is ill-considered. I think that the idea that we're supposed to have empathy for everybody except Trump voters, that as liberals and progressives and — not putting you in that mix, but I'm just saying for myself — as liberals and progressives, we're supposed to have these big, open arms and big, open hearts, except for half the country?

That is not gonna work.

Rascoff: I strongly agree with one thing you said, which is that regardless of whether you're a Republican or Democrat, dismissing people on the other side of the aisle, if you — that is a recipe for disaster. We have to be respectful of people of all different walks of life and all different political persuasions.

Jones:Basic human rights and human dignity should be a threshold. We shouldn't attack people because of where they're born and their sexuality, their race, their gender, all that kind of stuff. In kindergarten, you can't do that. So, I think it's perfectly fine to decide to fight for that.

But to then extend that and dismiss half the country as, to make up a word, deplorable because they disagree with you, that is also — you gotta throw a flag on that as well. And also, let me just say this, we need each other. People forget that. We need each other. I'm a liberal. I think you need me in society. I got a big heart, I care about people who don't have big PACs and don't have lobbyists and can't give you any money, but I'll fight for 'em anyway.

I think you need me. But you don't want me writing a budget by myself. You don't because a conservative will say, “Van, I appreciate your bleeding heart, but how much does this cost, and who's gonna pay for it?" And I never think about that. I just say, “Feed the babies!" I'm not that worried about that.

It's in that back and forth —

Rascoff: Again, the importance of diversity, political and otherwise.

Van, you're a do-good machine, spawning all these different organizations, and thank you for talking with us. Thanks a lot for sharing thoughts about the future of media and just explaining your perspective and the impact that you're making. Thanks a lot, congratulations. You have the last word, please.

Jones:Look, I just want to say, you weren't born to do normal stuff. It's not a normal time. It's not business as usual. And you can have a much bigger impact than you usually let yourself believe. And the fact that you're here in New York City, you're working for a major tech company — look, my kids live in LA. The first thing they do is Zillow each other's houses to figure out the pecking order.

Till a year ago we were renting, so we didn't get a chance to play. But true story — but that's a big deal. The fact that you work for a company that every kid in America has heard of, or a lot of them have heard of, gives you standing. It gives you a legitimacy. It gives you a credibility.

And you might feel confused, and you might feel frustrated, and you might feel a bunch of things, but when you walk out of this door, you mean something to people. You mean something to people you went to school with, you mean something to your families, you mean something to your communities.

And you don't have to have all the answers. You just have to have some of the right questions like, “How can I help? What's going on? Maybe I know somebody; let me see if I can be of some use." You got people behind you in line who look like you or who don't — who don't have one mentor, not one person who's willing to tell them one thing.

And you can change that person's life without a raise, without changing a single other thing — you can change that person's life. Somebody did it for you, so I wish that people in national media and national politics could come here and say, “Here's how we're gonna fix everything and pass every bill and pass every program." We're a long way from that.

That is going to be the outcome of something else, and the something else is ordinary people giving a damn. Ordinary people reaching out to each other. Ordinary people doing one more thing than they would have done, and that begins to create an accumulation that can get us out of this thing.

There's something in this room, there's something in this company, there's something that could be very powerful, very beautiful, very impactful for ordinary people. I just encourage you to keep seeking for it because it can be really, really special. So, thank you.

Rascoff: Thank you.

The post CNN's Van Jones: Genius is Everywhere appeared first on Office Hours.

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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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