L.A. Tech Updates: L.A. Seed Rounds Are Getting Bigger; the Future of Facial Recognition Technology

L.A. Tech Updates: L.A. Seed Rounds Are Getting Bigger; the Future of Facial Recognition Technology

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

Today:

  • Anaheim's 'Star Wars' Celebration is Canceled
  • L.A. Congressman Looks to Limit Police Use of Facial Recognition Technology
  • L.A. Seed Rounds Are Getting Bigger

    Anaheim's 'Star Wars' Celebration is Canceled

    www.starwarscelebration.com

    Chalk up another disappointment to the coronavirus. The organizers of Anaheim's 'Star Wars Celebration' are calling it off this year, due to concerns about hosting an indoor event in the midst of a global pandemic. Would-be attendees can exchange their tickets for the 2022 event (plus a limited edition stormtrooper pin), trade them for merch or get a refund. You can find more information at their website.

    L.A. Congressman Looks to Limit Police Use of Facial Recognition Technology

    Amazon, IBM and Microsoft either pulled sales of their facial recognition technology to law enforcement or halted their business last week as pressure from civil rights leaders, companies and legislators grew over how the surveillance technologies were being used.

    The issue has played out for years in the Los Angeles communities Congressman Jimmy Gomez represents. Activists regularly object to the use of technology that has the potential to exacerbate racial bias. Now, it has exploded anew on the national stage in the aftermath of the George Floyd protests.

    Gomez, who sits on the House Oversight and Reform Committee, told Politico last week he's drafting legislation that would place restrictions on local and state police from using the technology.

    "If facial recognition is considered the future of policing, it's just going to perpetuate the same biases that are already out there because it's in and of itself is biased," he told VentureBeat in a separate interview. "It's been flawed. It's been shown to be flawed and can [misidentify] people of color, mainly black women, Latinos, African Americans — and the darker the skin color, the more mistakes it makes. That's going to lead to more negative interactions between law enforcement and people of color, which can lead to deadly consequences."

    Gomez told the outlet Amazon gave him the run around as Congress probed the issue.

    "We need them to cooperate and give us data so we can be better informed on how to craft this legislation," he said. "If not, we'll just work with the civil rights groups, and we'll just try to pass it through, and they're going to most likely try to oppose it, in my opinion, at the end of the day if they don't like it."

    L.A. Seed Rounds Are Getting Bigger

    Image from Amplify.LA

    In the first quarter of this year, 19 Los Angeles startups raised seed rounds of more than $2.5 million. The average seed round raised was $4 million, according to Amplify.LA's latest LA Seed Report.

    "While nothing new for larger ecosystems like SF and NY, it's a relatively new phenomenon here in L.A.," wrote Conner Sundberg, an associate at Amplify.LA.

    Amplify also found seed activity in Q1'20 was nearly double that of Q1'19. 38 companies closed seed rounds in the first quarter while fintech re-emerged as one of the top dealmaking sectors.

    "Since starting this project years back, we've noted more funds being raised in L.A., a higher percentage of capital coming from local investors, and early stage teams tackling more varied verticals," wrote Sundberg.

    — Ben Bergman

    ⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

    🔦 Spotlight

    Happy Friday Los Angeles,

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

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

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

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

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

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

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

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


    🤝 Venture Deals

    LA Companies

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

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

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      🌴🧑‍💻 Your Guide to LA Tech Week 2024

      🔦 Spotlight

      Happy Friday Los Angeles,

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


      What to Look Forward To

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

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

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

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

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

      Enjoy LA Tech Week 2024!!


      🤝 Venture Deals

      LA Companies

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

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


          LA Exits

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

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

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

          SATURDAY EVENTS

          BEVERLY HILLS

          12:00 PM

          • BIG Showcase (Invite Only):

          BIG Showcase (Invite Only)

          2:00 PM

          Light Dao

          Struck Capital, Seahorse Express

          EAGLE ROCK

          12:00 PM

          Sunrise Integration, Shopify

          EL SEGUNDO

          9:00 PM

          Administratum, Valar Atomics

          HOLLYWOOD

          10:00 AM

          Passes

          MALIBU

          6:00 PM

          • Malibu Beachfront Investors Networking & Wine Tasting:See Details

          Gaya Ventures

          MARINA DEL RAY

          6:00 PM

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

          Sagos Distro, Alma Wellness

          SANTA MONICA

          7:00 AM

          Founders Running Club

          8:30 AM

          Techstars

          9:00 AM

          Magic Mind

          StartupStarter, Inc., City of Santa Monica

          10:00 AM

          Gen She

          AI LA

          Crea, Barry's, Unsubscribe

          10:30 AM

          Plantologist

          11:30 AM

          • Pickleball Palooza (Invite Only)

          YouTube

          1:00 PM

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

          Office for Humanity and Circuit Works

          • Talking blockchain technology with special guests: See Details

          LadyDayDao

          5:00 PM

          KARD, What's Plots

          THE VALLEY

          7:00 AM

          Camino5

          VENICE

          9:00 AM

          Westside Yogis

          11:00 AM

          Open App

          1:00 PM

          Ripe and Teddy's Hot House

          4:00 PM

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

          VIAVIA, BNTO.RENT, ALMA.AI

          VIRTUAL

          11:00 AM

          BLCK UNICRN

          WEST HOLLYWOOD

          7:00 PM

          Next Sequence

          SUNDAY EVENTS

          INGLEWOOD

          12:00 PM

          Entrepreneur Ventures, VCPE GROUPS

          PLAYA DEL RAY

          2:00 PM

          AI LA, DELL, NVIDIA

          SANTA MONICA

          10:00 AM

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

          Clutch Talent

          11:00 AM

          11DollarSunglasses.com, Less Litter Foundation

          12:00 PM

          Data in LA, Amplitude

          12:30 AM

          New Moon, Warner UK Innovations

          TOPANGA CANYON

          3:00 PM

          Dreamore

          VENICE

          8:00 AM

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

          Surfed Club, Bow Shock

          12:00 PM

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

          WeAreLATech.com, Blankspaces.com

          VIRTUAL

          2:00 PM

          BLCK UNICRN


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

          Enjoy LA Tech Week 2024!


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