Culver City-Based Envoy Gets $11M to Make Electric Cars an Apartment Perk
Francesca Billington is a dot.LA editorial intern. She's previously reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. Before joining dot.LA, she was a communications fellow at an environmental science research center in Sri Lanka. She graduated from Princeton in 2019 with a degree in anthropology.
The transportation tech company Envoy, which rents out electric cars to apartment buildings and offices, closed an $11 million Series A round on Thursday.
The boost represents just a fraction of a $81 million financing bundle that includes debt financing from Macquarie Specialized and asset finance to grow its fleet of Teslas and Chevy Bolts across the country.
The Culver City-based startup was founded in 2017 by two ex-real estate investors who saw a space to introduce mobility as new apartment amenity.
"You have a pool, you have a gym, now you have a car you can access," said co-founder and executive chairman Ori Sagie. His previous startups include an instant messaging platform he built in Israel, which sold to the online learning platform Smart Online. "Mobility will become an amenity in every building, like a laundry room."
Sagie said the startup supplies 27 of the top 50 real estate companies with cars and charging stations exclusively reserved for their residents.
Envoy also works with developers looking to downsize parking structures, said co-founder and CEO Aric Ohana, who previously worked in property tech. He said that every shared vehicle takes about 10 cars off the road.
In 2016, he and Sagie were working on a student housing development in Arlington, Texas when they noticed a disconnect between apartment amenities tenants said they wanted and the ones developers were building.
Their model lets apartment tenants or employees at work access their community car through an app that charges them a fee of 15 to 45 cents per minute. Envoy charges real estate companies an initial fee for each vehicle. Typically, it deploys one car for every 100 apartment units.
Unlike on-demand rental companies like Zipcar, Envoy's model doesn't let just anyone pick up a set of keys and borrow a car for the day.
Their fleet of purchased cars currently stands at 200, but the company has hopes of reaching 1,000 in 12 to 14 months, Ohana said.
Envoy has cars deployed in 10 states including L.A., Seattle, D.C. and Las Vegas. And their clients include drivers of delivery services to families that need transportation to buy groceries, "all the way to people who go to the Hamptons for the weekend," said Sagie.
As the pandemic keeps many working from home, Ohana says he's noticed more families that previously owned two cars are downsizing. Some don't need a car at all.
"There's no question that personal car ownership will continue for a long time, but we are helping communities get rid of cars. It helps people not renew a lease on a car or not buy a new car," he said. "Uber and Lyft obviously did a great job previously, showing us we might not need to own a car. But the issue is, it wasn't as affordable."
The startup has seen a surge in usage by clients since April. And 73% of users said they hadn't tried driving electric before Envoy, according to an internal company survey published in April.
With the raise, Sagie said the company will look to expand its fleet in more cities. That also means offering the service to people without affordable access to transportation.
They've already distributed 30 electric cars in 15 disadvantaged communities across Sacramento with a $1 million grant from the California Energy Commission in 2018. With a second grant from the Los Angeles Clean Incubator, they deployed two Nissan Leafs in both San Pedro and Pacoima, where cars are charged by solar panels.
Tenants in those areas pay the lowest rate per minute, Sagie said.
Thursday's round was led by Shell Ventures and Building Ventures and backed by DENSO, Goodyear Ventures, GroundBreak Ventures and the Los Angeles Cleantech Incubator Impact Fund.
**This story has been updated to reflect that Envoy's co-founders were former real estate investors, not agents.
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LA Tech Updates: Apple Podcast Vet Joins QCODE, Amazon Reportedly in Talks to Buy Wondery, Pharrell's New Black Ambition Incubator
Apple Podcast Veteran Joins Startup QCODE<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDUzNTQzMC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzNDUzMzYyNH0.pOGV2lL0qOJQDiWw1T5i4SqsGfaL54hLWED6_5Mf1Ww/img.png?width=980" id="8d68d" class="rm-shortcode" data-rm-shortcode-id="f2a47797239f360473fead53338231d4" data-rm-shortcode-name="rebelmouse-image" alt="qcode" />www.sonos.com <p>QCODE, a Los Angeles podcast startup run by a former Creative Artists Agency talent agent, snagged longtime Apple podcast executive Steve Wilson. The 15-year veteran will become QCODE's chief strategy officer.</p> <p>QCODE, which <a href="https://dot.la/sonos-podcast-qcode-2648395035.html" target="_self">last month raised $6.4 million</a> in a Series A round led by Sono, is positioning itself as a funnel for Hollywood. </p> <p>Founded by Rob Herting, a former agent who had represented largely writers and filmmakers, the company has produced eight shows since 2019. Several have been auctioned for film and television, including "Dirty Diana." Amazon picked up the 6-part erotic drama for a TV series.</p>Wilson, who most recently ran marketing for Apple Podcasts, brings insights from the behemoth platform as the industry sees revenues soar. Advertising brought in near $1 billion this year, according to Interactive Advertising Bureau's podcast report prepared by PwC.
Amazon Reportedly in Exclusive Talks to Buy Wondery<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDc5NDU5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0MjgyMDY3NX0.BHKSXjwra-gGsFEa7lXCCCMJXWV5cYxrZqhddj3-uds/img.jpg?width=980" id="d401d" class="rm-shortcode" data-rm-shortcode-id="c9c9eee1f9adc4c1d5edeca1af986a84" data-rm-shortcode-name="rebelmouse-image" alt="Hernan Lopez" />Hernan Lopez started Wondery with the belief that in-depth, narrative audio stories were poised to bloom.<p>Amazon is in "exclusive talks" to buy podcast company Wondery and subsume its 30 hit shows and over 8 million monthly listeners into its empire, the Wall Street Journal reported on Wednesday.</p> <p>The talks reportedly value Wondery above $300 million, in line with previous estimates from analysts, when Apple and Sony were said to have expressed interest.</p> <p>Wondery has produced dozens of original series including "Dr. Death" and "Business Wars," and has 19 shows currently in development to become television series. </p> <p>The company does not publicly disclose its financials, but chief executive Hernan Lopez has previously said the company is profitable. About three-quarters of Wondery's revenue comes from advertising, but Lopez has said the company's revenue share from content licensing is growing (Wondery owns the intellectual property for all of its originals). It also launched a subscription service, Wondery Plus, in June and is currently looking to expand its international footprint. </p> <p>Wondery, the West Hollywood-based company with the largest audience of any independent podcast producer, has been the subject of swirling rumors that several suitors are interested in acquiring it.</p> <p>After a pandemic-induced decline that struck much of the podcasting industry, Wondery's audience has surpassed its pre-COVID levels. Its Q3 revenue was about double year-on-year and its Q4 performance has been strong, Lopez previously told dot.LA. </p> <p>Podcasting overall now attracts over 100 million monthly listeners, according to Edison Research. The Interactive Advertising Bureau projects podcasting revenues to exceed $1 billion by 2021.</p> <p>That growth has spurred somewhat of an arms race, most evident in Spotify's spending spree, which also has helped that company diversify from its reliance on streaming. Amazon Music is one of Spotify's biggest competitors along with Apple Music, and <a href="https://www.wsj.com/articles/amazon-music-joins-podcasting-fray-11600261201?mod=article_inline" target="_blank" rel="noopener noreferrer">recently expanded into podcasts as well</a>. </p> <p>Acquiring Wondery would give Amazon more content to slide into Amazon Music, a scaled-down version of which is free for Amazon Prime subscribers. Combining that content with its Alexa smart speaker also could empower the company to capture more eyes and ears in the increasingly competitive attention economy. </p> <p>The talks are reportedly ongoing and no deal has been confirmed. </p>
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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
Fidelity Reportedly Seeks To Unload Bird Shares at a Loss<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjkwMTI2OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyOTc0NTgyM30.2gHsdIxx6hnX0sV0Evq4Xdc-UsOWfaDn5sxhMhUWVoQ/img.jpg?width=980" id="e3f93" class="rm-shortcode" data-rm-shortcode-id="7034229cee2777d3a9f7e45313d88a5b" data-rm-shortcode-name="rebelmouse-image" />Escooter Unicorn Bird Seeks to Unload Santa Monica HQupload.wikimedia.org<p>Fidelity Investments is attempting to unload some of its shares in Bird Rides Inc. at a loss, <a href="https://www.businessinsider.com/bird-investor-fidelity-selling-stake-scooter-2020-12?r=US&IR=T" target="_blank">according to a report</a> published Wednesday night by Business Insider.</p><p>The move comes <a href="https://dot.la/bird-scooter-2648232688.html" target="_self">after dot.LA reported in October</a> that the mutual fund giant has marked down the value of its Bird investment by 17% since the beginning of the year.</p><hr><p>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.</p><p>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. </p><p>Neither Bird nor Fidelity would respond to dot.LA's request for comment.</p><p>Bird <a href="https://www.inc.com/magazine/201902/will-yakowicz/bird-electric-scooter-travis-vanderzanden-2018-company-of-the-year.html" target="_blank" rel="noopener noreferrer">became the fastest company in history</a> 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 <a href="https://dot.la/bird-layoffs-meeting-story-2645612465.html" target="_self">via a Zoom call</a> and was forced to remove its fleet from city streets just as it was gearing up for its normally lucrative summer season. </p><p>dot.LA reported in October the company <a href="https://pbs.twimg.com/media/EjstMVqVoAAWd7f.jpg" target="_blank" rel="noopener noreferrer">put its Santa Monica offices up for sublease</a> less than a year after completing a costly renovation.</p><p>Bird has maintained <a href="https://www.bird.co/blog/empty-streets-effect-pandemic-unexpected-lesson-life-after-cars/" target="_blank" rel="noopener noreferrer">the pandemic has been a positive</a> as riders prefer scooters over crowded buses and subways. <a href="https://www.bird.co/blog/scooter-riders-making-comeback-riding-longer-than-ever/" target="_blank" rel="noopener noreferrer">It says it is seeing riders take longer trips</a> than they did before the pandemic. </p><p>Last month, <a href="https://dot.la/bird-ipo-2648944903.html" target="_self">Bloomberg reported</a> 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. </p>
Plug-In South LA Opens New Accelerator Cohort for 2021<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDg2MzAxMS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MTg0MTM1Mn0.QPKaMFTusp_uKe5Td0K77QKhp7KXUY6_An5edQ588VM/image.jpg?width=980" id="460a2" class="rm-shortcode" data-rm-shortcode-id="c53839f0b8ac6658fd10bb2da6ea53f8" data-rm-shortcode-name="rebelmouse-image" /><p>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.<br></p><p>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. </p><p>The last day to <a href="http://pluginsouthla.com/accelerator" target="_blank">apply for the program</a> is Dec. 9 </p>
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