Ferret Wants To Be a ‘Knight in Shining Armor’ for Investors. Will Ethical Concerns Stand in Its Way?

Caitlin Cook
Caitlin Cook is an editorial intern at dot.LA, currently earning her master's degree in mass communication from California State University, Northridge. A devoted multimedia journalist with an interest in both tech and entertainment, Cook also works as a reporter and production assistant for MUSE TV. She got her Bachelor of Fine Arts in Filmmaking from University of North Carolina School of the Arts.
Ferret Wants To Be a ‘Knight in Shining Armor’ for Investors. Will Ethical Concerns Stand in Its Way?

The way tech veteran and entrepreneur Rob Loughan explains it, he isn't in it for the money. Loughan, best known for founding Octane Software, which sold for $3.2 billion in 2001, wants to change how investors assess their personal and professional networks, despite critics' concerns.


"I want to be seen as kind of like the knight in shining armor, on the white horse, decreasing the amount of bad stuff happening in the world," said Loughan.

The 56-year-old uses an analogy to explain the benefits of his AI-enabled risk analysis tool: an open house. Several, maybe dozens, of people are walking through this person's home, where all of their valuable personal belongings are. What if they've unknowingly let a thief inside?

Ferret, he said, can spot them. The Calabasas-based company uses AI to help users identify risks within their networks or even neighborhoods. Its software scans a person's contacts and makes those individuals' backgrounds, including criminal records, available to users. It's geared toward investors and high-net worth individuals that often go in on high-stakes deals.

\u200bFerret co-founder Rob Loughan

Ferret co-founder Rob Loughan

"The next person can pull up [to your home] in a Maserati and have a Gucci suit. They could have been bankrupt three times, and they could even be a bad person that has a bunch of fraud behind them," said Loughan. "And then there's someone like me. Looks disheveled, probably hasn't shaved in three days, my T-shirt has holes in it. [...] I might get overlooked because of the way that I presented myself."

The company was started in 2020 by Loughan and his co-founder, Al Macdonald. Macdonald is the founder and CEO of NominoData, a technology company that has been providing the financial industry with risk management data for the past 12 years.

Loughan said he started Ferret "by accident" after he invested in NominoData and Macdonald asked him for help selling the company.

Ferret security logo

"I said, 'Don't sell it'," said Loughan. "'We're gonna democratize that data, and we're going to give it to everybody instead of just the ivory tower banks and financial institution governments who seem to know everything about us, but we don't know anything about each other'."

What emerged was a technology that can put NominoData into anybody's hands. The app, which is currently in alpha testing, uses AI to determine which people are within the user's network -- be it coworkers, friends, neighbors -- and provides easy access to publicly available information on them from resources like court records and news archives. Users can also search for specific people outside of their network.

The data shown on each individual excludes misdemeanor offenses such as DUIs or marijuana possession charges, focusing instead on serious cases that are relevant to investors.

"What matters to [investors] are lawsuits, government licenses, past exit successes, fraud allegations and white collar crime," said Matt Heisie, Ferret's head of product. "Search engines and background checks are bombarded with sensational arrest records or negative news, while serious white collar crime typically stays in the shadows. Ferret changes that dynamic."

Ferret acts somewhat like a search engine to make it easier to obtain information that is publicly available but difficult to find.

Ferret can, and -- in Loughan's eyes-- likely will, be used for personal matters outside of the investment world; in fact, Ferret is currently in contact with five dating sites, looking to make their data available to users. Certain information the app collects, such as battery charges, could be important to an online dater trying to feel out a potential mate.

Privacy Experts Weigh In

Ferret announced a $4 million seed round last month, with the Australian investment firm Artesian and more than 30 angel investors participating. Despite the interest, Loughan admits every potential investor he has talked to expressed concern over the app's legality. It also raises moral questions about whether a company should be able to potentially trap someone in their past failures, even when that person may have atoned for them.

From the beginning, Loughan said Ferret has been cautious to make sure their product is legal, going so far as working with a global law firm that the company declined to name.

"We're unlikely to lose a lawsuit because we're so fastidious about doing it properly," said Loughan, who said unlike Facebook, which has come under fire for its collection of users' personal information, Ferret has no nefarious intentions and nothing to gain from misusing data.

John Davisson, senior counsel at the Electronic Privacy Information Center (EPIC), a nonprofit research organization in Washington, DC that focuses on privacy rights, pointed out two laws in particular that he said Ferret will inevitably have to comply with in order to do this legally: the Fair Credit Reporting Act and the California Consumer Privacy Act.

The laws limit what credit reporting agencies and businesses can do with the information they collect on people. Ferret maintains that the FCRA does not apply to them because they are not a credit or consumer reporting agency.

The laws also prohibit certain uses of the information the app collects, such as employing it to make hiring decisions. Ferret said that the data they provide is not the same as that of a traditional background check.

The startup said it makes users abide by terms of use that are specifically designed to make users aware of what they can and cannot do with the app.

"It's not just like, 'Do you agree to these terms and conditions?' and there's some infinitely long page that nobody reads," said Heisie. "They have to affirmatively agree to those individual points before they get into the application. It's very clear, too, that violation of the terms and conditions will just result in suspension of their use of the application for them immediately."

Jay Stanley, a senior policy analyst with the American Civil Liberties Union's "Speech, Privacy and Technology" program said that in the past, "practical obscurity" of personal information -- the concept that public information is not always easily accessible -- has indirectly protected privacy, but much of that has gone away in the digital age.

"While you undoubtedly have a First Amendment right to talk about what people have done in the past and what the records are about people, by systematizing it you're also making it harder for people to escape their past and start over," said Stanley.

Photo by Ben Rosett on Unsplash

'Not Trying to Point Fingers'

Ferret said it makes every effort to maintain privacy and fairness for those whose backgrounds are collected in its app.

Details of its artificial intelligence system are secret, but the company said it is planning to publish a white paper that lays out their AI framework and gives a statement of ethics for all to scrutinize.

What makes Ferret different, Heisie said, is that it's not a catch-all record scraper. Instead, it targets information relevant to the businesspeople who use it.

"It starts with what goes in," said Heisie. "It starts with trying to identify what actually is relevant from a business context and deprioritizing what's not, and using that as the beginning of the algorithms."

But the algorithms that make up artificial intelligence can be tainted by the developers' bias, influencing their output. Electronic Privacy Information Center's Davisson said he is not convinced that AI is at the point yet where it can perform in an unbiased way.

"These tools frequently develop and encode gender biases, racial biases, ethnic biases," said Davisson. "And especially something that's trying to make reputational judgments based on news coverage, which is a spectrum of sources that is obviously susceptible to human bias. Those same biases can creep into what they are claiming is an unbiased system."

As an example of this in the works, Davisson cited a recruitment AI system formerly used by Amazon that was proven a few years ago to be strongly biased against female candidates, filtering out resumes that included the word "women's" and listed certain female-only colleges.

Loughan is confident in his team's ability to make Ferret a service that is lawful and free of bias, but he is also prepared for pushback, possibly even lawsuits.

"I want to be seen as someone who's trying to make the world a better place, not trying to point fingers at people and say they're bad, because we don't do that," Loughan said. "We just show the data that's publicly available, and then you come to your own conclusion about the person."

Can Technology Outpace Wildfires?

🔦 Spotlight

Hello, LA!

This week, tech headlines are buzzing with OpenAI's launch of Operator, a tool that promises to transform task automation, and TikTok’s major outage, which left millions disconnected. But closer to home, as wildfires blaze across Southern California, survival has become the focus—and technology is making it possible.

When the plume of smoke reappeared on the horizon, residents across Southern California turned to tools like Watch Duty. Over the past week, as flames surged, the app gained 600,000 new users in just one night, delivering critical, real-time information to help residents stay ahead of danger. Watch Duty, designed to provide wildfire updates, has proven to be much more than an alert system. It’s a lifeline.

The app integrates live data, satellite imagery, and community reports to send updates directly to users. Information includes fire locations, evacuation orders, and air quality indices, empowering quick, informed decisions. Its community-driven ethos—with contributions from locals, firefighters, and volunteers—ensures hyper-local and timely updates, filling gaps where traditional news outlets often fall short.

Image Source: Watch Duty

A New Era of Fire Alerts

Watch Duty redefines wildfire preparedness through technology and collaboration:

  • Fire Detection: Monitors data from satellites, agencies, and ground sources to identify wildfires.
  • Data Verification: A team of experts ensures reported activity is accurate.
  • Real-Time Alerts: Notifications are sent within 60 seconds of detection.
  • Community Contributions: Local residents provide photos and updates.
  • User Notifications: Alerts include fire size, location, and evacuation details.

These features make Watch Duty an indispensable tool during wildfire season. In 2024, the app processed over 2 million alerts and supported 50,000 evacuations, with plans to expand predictive modeling by 2025 to anticipate threats before they escalate.

Innovations Reshaping Wildfire Management

Early Detection Leaders:

  • AlertCalifornia: Operates over 1,000 cameras with machine learning to monitor high-risk areas.
  • Pano AI: Uses cameras and sensors to detect smoke and alert responders.
  • Torch Sensors: Deploys heat-detection sensors to identify anomalies early.

Image Source: Torch Sensors

Predictive and Analytical Pioneers:

  • Chooch AI: Employs drones and computer vision to monitor fire hazards.
  • Data Blanket: Uses analytics to forecast fire behavior and assist evacuations.
  • Rain: Leverages advanced atmospheric sensing and AI-driven technology to provide precise fire detection and tracking. Its real-time data on fire weather conditions and environmental factors helps agencies anticipate and respond to wildfires with greater efficiency.
  • SCEPTER: Tracks air quality and wildfire emissions using AI and satellite data.

Image Source: Rain

A Vision for the Future

As Los Angeles continues to adapt to the realities of a changing climate, tools like Watch Duty, Pano AI, and AlertCalifornia are proving to be invaluable. These technologies are not just reactive measures; they represent a shift toward proactive disaster preparedness. The question now isn’t whether technology can help but how much more it can achieve in the years to come.

With the integration of predictive modeling, AI, and real-time data, there’s hope for a future where wildfires are no longer unpredictable forces of destruction. Imagine every household equipped with predictive wildfire maps, heat-detecting drones, and AI-driven tools to guide safety decisions. The innovations are here—it's up to us to support and scale them to ensure they reach the communities that need them most. Which company, which app, or which breakthrough will emerge as the next lifeline? The possibilities for a safer, more prepared Los Angeles feel closer than ever.

🤝 Venture Deals

LA Companies

  • Favorited, a new livestream app positioning itself as an alternative to TikTok, has raised a $1.3M Pre-Seed from HF0, Soma Ventures, and several angel investors from the entertainment and social space. The platform, which participated in the a16z Speedrun accelerator program, offers features like streaks and leaderboards to boost user engagement. Favorited plans to use the funds to enhance its app's functionalities and expand its user base. - learn more
LA Venture Funds
  • Overture VC participated in a $12M Series A funding round for Bedrock Energy, an Austin, Texas-based startup specializing in geothermal heating and cooling systems. Bedrock Energy plans to use the funds to advance its geothermal technologies and expand deployments in Colorado, Utah, and neighboring states. - learn more
  • Navigate Ventures LLC participated in a $7.2M Series A funding round for XILO, a San Diego-based insurance technology startup that provides a quoting and sales automation platform to help independent insurance agencies convert the next generation of insurance shoppers; the funds will be used to scale operations, manufacturing, and commercial efforts for its acne products. - learn more
  • Upfront Ventures participated in a $5.25M Seed funding round for 1up.ai, a New York-based company that automates knowledge for sales teams; the funds will be used to empower their growing customer base, including industry leaders like WalkMe, Gladly, and Deliveroo. - learn more
  • MTech Capital participated in a $2.2M Pre-Seed funding round for Qumis, a Chicago-based AI platform designed to transform insurance knowledge work; the funds will be used to scale its AI capabilities, accelerate product development, and expand its customer base. - learn more
  • Amboy Street Ventures participated in a SEK 304M Series B funding round for Gesynta Pharma, a Stockholm-based pharmaceutical company specializing in anti-inflammatory and pain-relief treatments, with the funds directed toward advancing a Phase II clinical trial of their lead candidate, vipoglanstat, for endometriosis. - learn more

LA Exits

  • Bandy Manufacturing, a Los Angeles-based provider of aerospace fasteners and components, has been acquired by Novaria Group to enhance its portfolio and expand its capabilities in the aerospace and defense industries. - learn more
  • Pangea, a company specializing in eco-friendly and sustainable products with a focus on innovative technology solutions, is being acquired by Nature's Miracle Holding Inc. to accelerate growth and capitalize on synergies in sustainability and tech-driven product development. - learn more
  • Notisphere, a healthcare communication platform streamlining recall and alert management, has been acquired by Par Excellence Systems to enhance its capabilities in delivering efficient supply chain solutions for the healthcare industry. - learn more
  • Cryogenic Machinery Corp., a North Hollywood, California-based manufacturer specializing in cryogenic pumps for industrial gas and energy applications, has been acquired by PSG, a Dover company, to enhance PSG's portfolio of specialized fluid handling solutions. - learn more

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The New Face of Live Shopping: Whatnot’s $5B Journey

🔦 Spotlight

Hello Los Angeles,

This week has been a challenging one for many in our city as we continue to face the aftermath of the recent wildfires. Recovery efforts are in full swing, and as always, the strength and resilience of our community shine through.

If you or someone you know has been impacted, there are resources available to help navigate this difficult time:

  • Pacific Palisades Fire Damage Maps: View here

These tools can provide support, whether you’re looking for financial assistance, housing resources, or updates on affected areas.

While our community focuses on recovery, we’re also reminded of what makes LA unique: its unrelenting drive to build, create, and innovate. A great example this week comes from Whatnot, the live shopping platform co-founded in 2019 by Grant LaFontaine and Logan Head, which has just achieved a major milestone.

Whatnot announced it raised $265 million in Series E funding, valuing the company at an impressive $5 billion.

For those unfamiliar, Whatnot combines shopping and entertainment through live-streamed auctions. Think of it as a vibrant, interactive marketplace where sellers showcase everything from trading cards and collectibles to fashion items, all in real time. Buyers can bid during the stream, creating a sense of excitement and connection that feels more personal than traditional online shopping.

The company’s new funding—co-led by Greycroft, DST Global, and Avra Capital—will drive expansion into markets like Australia and bring improvements to seller tools, from inventory management to advanced analytics. But what stands out most is Whatnot’s focus on its people. CEO Grant LaFontaine announced plans to buy back $72 million in shares for long-term employees, a move that underscores the company’s dedication to sharing its success.

As we move forward, let’s celebrate stories like these that show how innovation thrives in LA—even amid challenges. Whether it’s supporting wildfire recovery, building the next great startup, or simply connecting with others, we each play a role in shaping the spirit of our city.


🤝 Venture Deals

LA Companies

  • Phase Four, a leader in advanced in-space propulsion systems, announced the first close of its Series C funding round, securing nearly 60% of the target raise, led by Artemis Group Capital, to ramp up production of its Valkyrie Hall Effect Thrusters to at least 250 units annually and develop cutting-edge propulsion technologies for defense and national security needs. - learn more
  • Proper, a next-generation supplement brand launched by fitness entrepreneur Amanda Kloots, secured investment from Ben Bennett's Beauty Accelerator, The Center, to redefine the supplement industry with innovative, nutrient-focused wellness solutions tailored for modern lifestyles. - learn more
LA Venture Funds
  • Sound Ventures participated in a $17M funding round for Reshop, a platform simplifying the returns process for consumers and merchants, with plans to use the funds to enhance their technology and expand their services. - learn more
  • LFX Venture Partners participated in a $30M strategic funding round for Shippeo, a Paris-based company specializing in real-time multimodal supply chain transportation visibility; the funds will support Shippeo's global expansion, particularly across North America and the Asia-Pacific region. - learn more
  • Amboy Street Ventures participated in a $15M Series A+ funding round for Granata Bio, a biotechnology company focused on developing advanced gene therapies; the proceeds will be used to accelerate the development of their pipeline and expand their research capabilities. - learn more
  • BAM Ventures participated in a $700,000 seed funding round for MX Locker, an online marketplace for buying and selling motocross gear and parts; the company plans to use the proceeds to enhance its platform and expand its user base. - learn more
  • Crosscut Ventures participated in a $7.15M seed funding round for SoloPulse, an Atlanta-based company developing advanced radar technology; the funds will be used to enhance their product development and expand market reach. - learn more
  • Starburst Ventures participated in Loft Orbital’s $170M Series C funding round, bringing the San Francisco-based satellite infrastructure provider’s total capital raised to $280 million, with the funds aimed at accelerating their "condosat" missions to simplify and expand access to space. - learn more
  • Overture VC participated in a $100M Series B funding round for Harbinger, a Southern California-based electric vehicle company specializing in medium-duty EVs; the funds will be used to accelerate the production of their electric vehicle platforms. - learn more
  • Muse Capital and Time BioVentures participated in an $18M Series A funding round for Conceivable Life Sciences, a New York-based biotech company developing the world's first AI-powered automated IVF lab; the funds will support their ongoing commercial pilot program in Mexico City and preparations for a U.S. launch targeted for early 2026. - learn more
  • B Capital Group participated in a $25M Series B funding round for Labviva, a Boston-based AI-driven procurement platform for life sciences; the funds will be used to accelerate product development, enhance marketing and customer support, and expand internationally. - learn more
  • Focalpoint Partners participated in a seed funding round for Kerna Labs, a San Francisco-based AI biotechnology company focused on advancing mRNA payload design for new therapies, with the funds supporting operational expansion and development efforts. - learn more

LA Exits

  • Intracom Systems, a pioneer in software-based communication solutions, has been acquired by IPC, a global leader in trading communications technology, to enhance IPC's SaaS communications offerings for the financial services industry. - learn more
  • Adexa, a provider of advanced supply chain planning solutions, has been acquired by Eyelit Technologies to enhance its Manufacturing Operations Management (MOM) and Manufacturing Execution Systems (MES) offerings and expand its market presence. - learn more
  • Caramel, a platform specializing in simplifying online vehicle transactions, has been acquired by eBay to enhance its offerings for secure and streamlined automotive buying and selling experiences. - learn more
  • ImaginAb, a biotechnology company specializing in antibody-based imaging and therapeutic solutions, has been acquired by Telix Pharmaceuticals to expand its next-generation therapeutic assets and biologics technology platform. - learn more
  • Sleepypod, a global leader in crash-test-certified safety harnesses and carriers for pets, has been acquired by Paw Prosper to enhance its commitment to pet well-being and expand its portfolio of innovative pet safety solutions. - learn more

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Standing Together Through the Flames

🔦 Spotlight

To our Los Angeles family,

This week’s wildfires have brought immense pain and hardship to our beloved city. Many of our friends, neighbors, and colleagues have faced evacuations, power outages, and the devastating loss of homes and livelihoods. Our hearts go out to everyone affected by this tragedy.

At dot.LA, we want to express our deepest sympathy to those suffering in this moment. We see your resilience and stand with you during this challenging time. This community has always been defined by its strength and compassion, and now is the time to come together in support.

If You or Someone You Know Has Been Impacted, Resources Are Available:

Evacuation Shelters:

  • Calvary Community Church: 5495 Via Rocas, Westlake Village, CA 91362
  • Ritchie Valens Recreation Center: 10736 Laurel Canyon Blvd., Pacoima, CA 91331
  • Pan Pacific Recreational Center: 7600 Beverly Blvd., Los Angeles, CA 90036
  • Westwood Recreation Center: 1350 Sepulveda Blvd., Los Angeles, CA 90025
  • Pasadena Civic Auditorium: 300 East Green Street, Pasadena, CA 91101
  • Pomona Fairplex: 1101 W McKinley Ave, Pomona, CA 91768
  • Stoner Recreation Center: 1835 Stoner Ave, Los Angeles, CA 90025

Animal Shelters:

Small Animals:

  • Agoura Animal Care Center: 29525 Agoura Rd, Agoura Hills, CA 91301
  • Baldwin Park Animal Care Center: 4275 Elton St, Baldwin Park, CA 91706
  • Carson Animal Care Center: 216 W Victoria St, Gardena, CA 90248
  • Downey Animal Care Center: 11258 Garfield Ave, Downey, CA 90242
  • Lancaster Animal Care Center: 5210 W Ave I, Lancaster, CA 93536
  • Palmdale Animal Care Center: 38550 Sierra Hwy, Palmdale, CA 93550

Large Animals:

  • Pomona Fairplex: 1101 W McKinley Ave, Pomona
  • Industry Hills Expo: 16200 Temple Ave, City of Industry, CA 91744
  • Antelope Valley Fair: 2551 W Avenue H, Lancaster, CA 93536
  • Los Angeles Equestrian Center: 480 W Riverside Dr, Burbank, CA 91506
  • Pierce College Equestrian Center: 7100 El Rancho Dr, Woodland Hills, CA 91371

Disaster Relief Information:

  • LA County Assessor: Information for property owners and FAQs about disaster relief.

Mental Health Support:

  • Los Angeles County Department of Mental Health: Crisis counseling and support for those affected. Access services through their website or call their hotline at (800) 854-7771.

Temporary Housing Support:

  • Airbnb: In partnership with 211 LA, offering free temporary housing for displaced residents. Spaces are limited; complete the form to be notified of availability.

Transportation Support:

  • Uber: Use promo code WILDFIRE25 for 2 free rides up to $40 each to/from active shelters.
  • Lyft: Code CAFIRERELIEF25 offers 2 rides up to $25 each for up to 500 riders, valid until 1/15.
  • Metro: Fare collection is suspended systemwide.

Staying Informed:

  • Watch Duty App: Provides real-time wildfire tracking, evacuation warnings, and updates.
  • Los Angeles Fire Department Alerts: Visit their website for the latest information on fire status and safety guidelines.

Safety Precautions:

  • Ready, Set, Go!: Personal Wildfire Action Plan by the Los Angeles County Fire Department.

To those in our community who are volunteering, donating, or offering aid in any form—thank you. Your efforts embody the spirit of LA: strong, compassionate, and unstoppable.

At dot.LA, we’re committed to amplifying stories of resilience and support. If you’ve seen inspiring acts of kindness or have resources to share, please let us know. Together, we can shine a light on the incredible ways this community is stepping up during these trying times.

In the days ahead, let’s hold tight to the bonds that unite us and remember that we are stronger together. The fires may scar the land, but they cannot dim the collective spirit of Los Angeles.

We’re here for you, and we’re with you.

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