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Andria Moore
Google and Apple Are Opening New Offices In West LA
Amrita Khalid
Amrita Khalid is a tech journalist based in Los Angeles, and has written for Quartz, The Daily Dot, Engadget, Inc. Magazine and number of other publications. She got her start in Washington, D.C., covering Congress for CQ-Roll Call. You can send tips or pitches to amrita@dot.la or reach out to her on Twitter at @askhalid.
Even though Los Angeles’ office market faces an uncertain future due to the slowing economy, signs seem to suggest that West L.A. could weather the storm.
For starters, Apple and Google still plan to open new offices in the area — even as much of Big Tech is scaling back their physical footprints nationwide. Earlier this month, Apple's plans to build 536,000 square feet of office space and production space went before the Culver City Planning Commission. The Culver Crossings campus is expected to break ground in early 2023, with an anticipated move-in date of 2026.
“The West L.A. office market is very different from the rest of the county in that it has an abundance of very cool, architecturally distinct real estate that is very attractive to the creatives”,” wrote CBRE’s Vice Chairman Jeffrey Pion in an email. “While many of the tech companies are downsizing in other parts of the country, we are not yet certain how much of that anticipated downsizing will occur in this market but believe the long term outlook for West Los Angeles is very good.”
In addition, a Google spokesperson confirmed to dot.LA that Google has leased the former Westside Pavilion shopping complex in West L.A. and plans to move in sometime in 2023. The company has yet to decide which job functions or divisions will be located in the new West L.A. campus. And Amazon signed a deal to rent a 200,000-square-foot space at the Water Garden this summer as part of a greater Southern California expansion, even as it halted plans to build other offices nationwide.
Nonetheless, the state of L.A.’s office space market remains uncertain as companies also scramble to cut costs due to the slowing economy. J.P. Morgan Asset Management this week put up its 1.4 million square foot Santa Monica office campus for sale — which includes tenants like Amazon and Sony Inc., reported the Commercial Observer.
Still, according to a third-quarter report from CBRE, West L.A.’s office vacancy rate is at 14.5% — roughly four points lower than the average in Greater Los Angeles. “[...] Several tech, media, and entertainment companies leased space this quarter, emphasizing the prevalence of entertainment and technology in Los Angeles and West L.A.,” wrote the authors of the report.
This is all to say that after two years of remote work and hybrid offices, 2022 could be ushering in a vibe shift as more companies reverted to traditional in-office work environments. Nearly 50% of company leaders said they were planning to require workers to return to the office full-time in the next year, according to a Microsoft survey from March. While a sluggish economy has forced some companies to make cuts to their workforce and close offices — many also appear to be staying put or even expanding their corporate real estate portfolios.
The potential shift to in-office work could be further bolstered by the current economic downturn, according to Matthew E. Kahn, Provost Professor of Economics at USC. In an email to dot.LA, Kahn wrote, “During a tech recession, management has the upper-hand in determining the real pay of workers and ordering workers to work on-site — 5 days a week — is a type of pay cut.”
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Amrita Khalid
Amrita Khalid is a tech journalist based in Los Angeles, and has written for Quartz, The Daily Dot, Engadget, Inc. Magazine and number of other publications. She got her start in Washington, D.C., covering Congress for CQ-Roll Call. You can send tips or pitches to amrita@dot.la or reach out to her on Twitter at @askhalid.
https://twitter.com/askhalid
Los Angeles VCs Are Placing Some Big Bets on Israeli Startups
07:21 AM | February 06, 2020
Fusion LA, a Santa Monica early-stage accelerator that provides nascent software startups from Israel's booming tech scene an entree into the U.S. market, is upping its initial investment to $110,000. That's up from the $20,000 checks it has written since the program started in 2017.
"We're betting on Silicon Beach to be the next big hub for Israeli entrepreneurs," Yair Vardi, founding partner of Fusion LA, told dot.LA.
The considerably bigger investment, which the program's founders hope will create a more competitive applicant pool, is made possible by a new partnership with GoAhead Ventures, a Menlo Park-based early stage VC firm.
"It's exciting news for us," said Vardi. "It allows our companies to have top tier investors who understand the U.S. market and give early stage founders more oxygen to build their businesses in the U.S."
Vardi previously led the Israeli government's technology and innovation initiatives in L.A. He also served in Unit 8200, Israel's version of the NSA, alongside co-founder Guy Katsovich, who was managing director of 8200's accelerator program.
Between six and nine companies are accepted into the program every six months for a 9-month mentorship program in Santa Monica where they network and learn about the U.S. market.
"Our vision is to be the leading launchpad for Israeli startups in the United States and we aim to invest in over 100 companies in the next few years," Katsovich, who leads the accelerators's Israel office, said in a statement. "We've interviewed over a thousand startups in Tel Aviv since we founded the program. Our next cohort of Israeli founders will arrive in L.A. in the beginning of March."
Co-founder Yair Vardi (left) previously led the Israeli government's technology and innovation initiatives in L.A. He also served in Unit 8200, Israel's version of the NSA, alongside co-founder Guy Katsovich, who was managing director of 8200's accelerator program.
Vardi says Israeli entrepreneurs feel very at home in Santa Monica.
"We laugh that the weather in L.A. is very Israeli, without the humidity you have in Tel Aviv," said Vardi. "It's also one of the largest Jewish communities outside Israel, so L.A. is a very welcoming place. We rent apartments in Santa Monica, so we can ride Bird scooters to the office just like we do in Tel Aviv."
Vardi says Israeli founders, who typically hail from the military or academia, are more tech and product oriented as opposed to U.S. founders who have more strengths on the business side.
"We want to help the founders do business in America and create relationships," said Vardi.
Over the past two years, Fusion LA has invested in 36 early stage companies, more than half of which have gone on to raise a seed round of at least a million dollars, according to Vardi. Alumni have raised $60 million combined. The biggest success story so far has been Uniper, which is developing a care management platform for the elderly. It has raised $5 million in seed funding.
For a country with a population of only 8.7 million people – considerably smaller than L.A. County's – Israel punches far above its weight in tech, so much so that it has been given the moniker "startup nation." The country boasts the largest number of startups per capita in the world. 2019 saw a record $21.7 billion (138 deals) in exit value, up from $12 billion (122 deals) in 2018, according to Fusion LA.
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Ben Bergman
Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.
https://twitter.com/thebenbergman
ben@dot.la
Billion-Dollar Milestones and Snapchat’s New Features
11:30 AM | October 25, 2024
🔦 Spotlight
Happy Friday Los Angeles!
This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.
Image Source: Snap
Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.
Image Source: Liquid Death
ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.
Image Source: Altruist
Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.
Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!
Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!
🤝 Venture Deals
LA Companies
- Carbon Ridge, a developer of carbon capture technology for the maritime industry to reduce ship emissions, has raised $9.5M in a funding round led by Crosscut Ventures and Western Technology Investment (WTI). This investment will help accelerate the decarbonization of maritime shipping. - learn more
- Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
LA Venture Funds
- Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
- Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more
LA Exits
- Grandview, a literary management company representing top talent across various entertainment sectors, has been acquired by TPG’s newly formed entertainment venture, Initial Group, in partnership with Untitled Entertainment. - learn more
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