Enrollment in LA's Virtual Schools Is Increasing As COVID Fears Spread Among Parents

Sarah Favot

Favot is an award-winning journalist and adjunct instructor at USC's Annenberg School for Communication and Journalism. She previously was an investigative and data reporter at national education news site The 74 and local news site LA School Report. She's also worked at the Los Angeles Daily News. She was a Livingston Award finalist in 2011 and holds a Master's degree in journalism from Boston University and BA from the University of Windsor in Ontario, Canada.

Enrollment in LA's Virtual Schools Is Increasing As COVID Fears Spread Among Parents
Photo by Matt Ragland on Unsplash

The pandemic has been wrenching for parents as schools fling their doors open and throngs of unvaccinated children return to the classroom.

With the delta variant raging and child hospitalizations shooting up, virtual charter schools are making their pitch and it's working. Enrollment is ballooning.


In Los Angeles, one national charter network is marketing its program as an option for parents fearful about the spread of COVID.

Stride Inc, a publicly traded company that runs virtual charter school network K12, promoted its California schools called California Virtual Academies in an announcement encouraging parents to enroll. On Twitter, the company touts online learning as giving "families an option that is not only safe, but prioritizes student growth and success."

But online charters are controversial even among charter school supporters and past research shows the virtual schools have a weaker academic performance than traditional schools. The state has clamped down on them amid a spat of financial misdeeds, including one virtual charter school where its two founders pleaded guilty to felony charges of conspiracy to commit theft of public funds.

Still, enrollment in virtual charter schools surged during the pandemic. Enrollment at K12, one of the biggest national operators, increased 57% last year. In Los Angeles, which boasts more enrollment in charter schools than anywhere in the nation, its schools saw enrollment jump 40% compared to this time in 2019, according to the school.

The Los Angeles Unified School District has also seen a jump in students who are enrolled in its online independent study program.

Honestly I can't imagine her stepping foot on a campus right now.

Angela Covil, CAVA's director of high schools, said the virtual schools are "teacher supported," rather than "teacher directed." Students meet with their teachers every day for about one-and-a-half to two hours in elementary and middle school and three to three-and-a-half hours in high school. Students spend four to six hours on coursework each day. The curriculum can be accessed anywhere and it includes videos and animation with assessments built in, so teachers can monitor student progress, she said.

Some parents that recently enrolled their children turned to the schools that already had a virtual curriculum, rather than stay in a school district that was learning how to teach online on the fly.

"We've been doing it for years and so we have all those systems set up and established," Covil said.

She said there are generally three types of new parents who are enrolling their children: those who have health worries, those who want stability in case COVID-19 worsens and instruction at district schools goes online again, and those who saw their child thrive in the online environment during the pandemic and want that to continue.

Roxann Nazario is one of those parents whose daughter, Scarlett, thrived in an online environment because of her social anxiety. Nazario said she saw a weight lift off of Scarlett's shoulders in March 2020 when schools closed.

Her charter middle school at the time, Girls Athletic Leadership School, switched swiftly to an online curriculum where instructional videos and assignments were posted online through Google Classroom and students weren't required to sit on Zoom for several hours a day. Nazario saw her daughter's grades improve.

But the school changed course in the fall of 2020, requiring students to be on Zoom from 8:30 a.m. until 12:30 p.m. and Scarlett burned out quickly.

Nazario, who works as a parent engagement coordinator for parent advocacy group Speak UP, talked to parents who were raving about an online charter called iLEAD and after meeting with teachers and school administrators, she enrolled her daughter in the school, where live instruction is optional.

"Honestly I can't imagine her stepping foot on a campus right now. I think it would be very difficult for her especially since it's been so long," Nazario said. "I'm excited to see how well she can do with a program that's very well established and very customized that I think is going to be a good fit to her, but we'll see and we'll evaluate that as we go along."


Virtual Learning Has Its Limits

But several studies have criticized cyber schools, finding that many of its academic programs pale in comparison to traditional brick-and-mortar schools.

One national study by the Center for Research on Education Outcomes at Stanford University found that virtual charter schools across the nation have an " overwhelming negative impact" on students.

"It was desperately bad," said Macke Raymond, who directed the study. "It was as if the kids didn't go to school at all in math." Though she noted the 2015 study was based on data from 2013.

And in 2016 even the National Alliance for Public Charter Schools, a charter school advocacy group warned legislators about the poor performance of virtual charters in a report.

More recent national research is needed and Raymond said she is embarking on a new national study next month that will answer the question of whether online charters have gotten any better.

"One would hope that a program that was as vulnerable as we showed it to be in 2015 would sort of pick itself up by the bootstraps and do something different," Raymond said.

Covil said she hopes that parents look past some of the negative publicity about virtual charters and do their own research.

"A lot of great things are happening in these schools," Covil said. "There are students that are really thriving. We just have so many great things happening with our kids, and we hear so much great feedback from our parents."

Learning Loss

As teachers in traditional schools scrambled to shift their curriculum online and students lacked the social interaction of being in a classroom with teachers and their peers, studies show children suffered a "learning loss" or "COVID slide."

A McKinsey & Company report on the 2020-21 academic year found that on average students were five months behind in math and four months behind in reading by the end of the school year. And the achievement gap between low-income and students of color and their white peers worsened with students in majority Black schools ending the year with six months of "unfinished learning" and students in low-income schools with seven.

NWEA used its MAP Growth adaptive assessments that schools can voluntarily give to their students three times a year to analyze the impact of the pandemic. Results from 5.5 million students in grades 3 through 8 who took the tests showed that students made reading and math gains in 2020-21, but at a lower rate when compared to before the pandemic.

For example, in the spring of 2021, median math scores fell 12 percentile points compared to the spring of 2019.

Following the publication of the NWEA report, Stride Inc. issued its own response, saying its students did not experience the same learning loss as their peers.

"In fact, they were more likely to maintain or grow academically than to slide," it said.

Investigation

CAVA itself was under investigation by the California Attorney General's Office before reaching an $8.5 million settlement in 2016 over allegations that the network published misleading advertisements about students' academic progress, parent satisfaction and class sizes.

For example, the network didn't include a "large number of students whose test results did not show significant change," when it promoted its students' academic performance, according to the complaint.

The state also alleged the schools were improperly inflating attendance numbers, reaping more state education dollars, which are allocated based on average daily attendance.

The AG's office was also looking into the schools' services for students and families with limited English proficiency, and the school's support for those students with special needs.

Under the settlement, the schools admitted no wrongdoing and the settlement funds repaid the state for the cost of the investigation.

"Improvements to accessibility were already in our internal plans and did not change our multi-year capital plans," a K12 spokesperson said. "We have always tried to continually improve accessibility, mobility, teacher tools, and student engagement, and will continue to do so."

These types of academic problems and financial misdeeds that occur at some virtual charters helped provoke a two-year moratorium on new online charter schools signed by Gov. Gavin Newsom in 2019, which was set to expire at the end of this year, but was extended through 2024.

In California, charter schools are publicly funded, yet independently operated. Traditional public school supporters oppose charter schools because they say money is drained from district schools, as state funding is based on enrollment.

For parents who want to keep their children online this school year, there are limited options.

Newsom and the state legislature ordered that school districts must offer in person instruction this fall unless it's through an independent study program, but it authorized independent study for a student "whose health would be put at risk by in-person instruction, as determined by the parent or guardian."

The legislature is hashing out a new bill that aims at improving the independent study program, such as establishing a minimum amount of live instruction per day.

"Many, many policymakers are trying to put a different standard into this conversation that they don't hold the district schools to, but they do want to hold the virtual charter schools to," Raymond said. "That's the story that's happening in California."

Hello Sunshine Sold for More Than $900M. Now Reese Witherspoon Is Buying It Back.
Image Source: Hello Sunshine

🔦 Spotlight

Hey there, LA.

In Hollywood, every successful story eventually gets a sequel. This one brings Reese Witherspoon back to the company she built.

Five years after selling control of Hello Sunshine in a deal worth more than $900M, Witherspoon is partnering with French production group Mediawan to buy back the Los Angeles media company.

The reported purchase price is in the low-to-mid eight figures, significantly below Hello Sunshine’s valuation when Candle Media acquired a controlling stake in 2021.

That difference tells a larger story than any single Hollywood transaction.

Hello Sunshine was one of the most prominent acquisitions made during the streaming boom, when platforms were spending aggressively and investors placed enormous value on production companies with recognizable founders, established audiences and libraries of intellectual property.

Witherspoon had built all three.

Founded in 2016, Hello Sunshine developed its business around stories centered on women, producing projects including “Big Little Lies,” “The Morning Show,” “Little Fires Everywhere” and “Daisy Jones & The Six.” It also turned Reese’s Book Club into an influential audience and discovery platform that now reaches 6.2 million readers and drives approximately $900M in annual U.S. book sales, according to the company.

By 2021, that combination of talent, intellectual property and direct audience access looked like the foundation of a next-generation media empire.

Candle Media, backed by capital from Blackstone, acquired Hello Sunshine as part of a broader effort to assemble a portfolio of entertainment brands. The company also purchased businesses including Moonbug Entertainment, ATTN: and Faraway Road Productions.

Then the streaming market changed.

Entertainment companies became more disciplined about content spending. The race to accumulate subscribers gave way to pressure for profitability. Production budgets tightened, consolidation slowed and some of the valuations assigned during the streaming boom became difficult to maintain.

Hello Sunshine’s return to founder-led ownership reflects how dramatically the media landscape has changed since 2021. It also gives Witherspoon an opportunity to regain greater influence over the company at a moment when its core assets may matter more than its former valuation suggests.

Under the new ownership structure, Hello Sunshine plans to refocus on premium film and television, Reese’s Book Club and new storytelling and distribution formats. Mediawan brings an international production network, while Witherspoon brings something harder to manufacture: a trusted personal brand and an audience willing to follow her recommendations from books to screens.

That relationship with consumers is increasingly valuable in a fragmented media market. Studios can finance productions. Streaming services can distribute them. Far fewer companies can reliably convince millions of people to care before a project is even released.

For Los Angeles, the deal reflects the increasingly fluid boundary between entertainment company, consumer brand and technology-enabled audience platform. The most resilient media businesses may not be those producing the greatest volume of content, but those that own a direct relationship with a specific community.

The first Hello Sunshine deal captured the optimism of the streaming era.

The second may offer a more focused model for what comes next, with the company once again guided by the founder who understood its audience from the beginning.

Hollywood loves a comeback story.

This time, the company is making one too.

LA Tech Week’s Final Stretch

Still making the most of LA Tech Week? We have organized the remaining events by location to make planning the weekend a little easier:

Event schedules may change, so confirm the latest details with the organizer before heading out.

More from this week’s LA startup and venture scene below.

🤝 Venture Deals

    LA Companies

    • Goodweek raised a $12M seed round led by Adara Ventures to expand its AI management platform for small and midsize businesses. The company brings tools such as ChatGPT, Claude, Gemini and Mistral into one governed workspace and will use the capital to accelerate sales and expand into Latin America and Asia. - learn more

    LA Venture Funds
    • Fika Ventures co-led Otter Health’s $8M seed round alongside Evidenced Capital, with participation from Slow Ventures, Metrodora, CoFound Partners, Patient Capital, SemperVirens and Layout Ventures. The startup will use the funding to scale its AI-powered platform, which helps healthcare payers and providers reduce unnecessary care and manage quality without relying as heavily on traditional prior authorization. - learn more
    • Nant Capital co-led Prolific Machines’ $50M Series B2 alongside Atoms & Bits, bringing the biotechnology company’s total funding to more than $100M. Prolific will use the capital to scale its light-controlled biomanufacturing platform, expand pharmaceutical and biotech programs and begin early work on tissue and organ fabrication. - learn more
    • Family Fund participated in Allara’s $30M funding round alongside new investors Camino Partners and Foreground Capital, while existing backers including Index Ventures and GV increased their commitments. The women’s healthcare company will use the capital to expand AI-enabled care, grow its provider and enterprise partnerships and advance research into hormonal, metabolic and reproductive conditions. - learn more
    • Vida Ventures participated in Soufflé Therapeutics’ oversubscribed $135M Series B, which was led by Juvia Group. The biotech will use the funding to move three lead programs into clinical trials for muscular dystrophy, heart failure and muscle and metabolic disorders while advancing its broader pipeline of targeted RNA therapies. - learn more
    • FJOR participated in LightSprint’s $6.1M seed round, which was led by 645 Ventures. The AI software platform will use the funding to expand its enterprise product and grow its engineering and go-to-market teams as it helps employees across departments make changes to company codebases while keeping engineers in control. - learn more
    • Muse Capital participated in Collective X Health’s oversubscribed $3.2M pre-seed round, which was co-led by Council Capital and Anthemis Female Innovators Lab Fund. The women’s health intelligence startup will use the funding to expand its female-focused research and data platform, meet growing enterprise demand and support new research aimed at closing the women’s health data gap. - learn more
    • Act One Ventures participated in Intake AI’s $2.5M pre-seed round, which was led by Kapor Capital. The startup is building AI agents that automate clinical-trial setup and operations, helping research teams turn protocols into documents, search study materials and transfer approved forms into existing systems. - learn more
    • M13 participated in Ultra’s $62M financing, which included a $50M Series A led by Framework Ventures. The Brooklyn-based robotics startup will use the capital to expand deployment of its AI-powered warehouse robots, which handle packing, sorting and other fulfillment tasks and have already processed more than 500,000 orders. - learn more

    LA Exits

    • Farcaster is being acquired by Balaji Srinivasan’s Network School from Neynar, marking the decentralized social network’s second change in ownership this year. The deal includes Farcaster’s app, protocol repositories and related products, with its new owner planning to introduce a rules-based “social smart contract” governing full participation on the platform; financial terms were not disclosed. - learn more
    • Creator Authority has been acquired by Billion Dollar Boy Group, bringing the agency’s B2B influencer marketing expertise and LinkedIn specialization into BDB’s global creator business. The deal will help Creator Authority scale its work with enterprise brands while strengthening BDB’s presence on the U.S. West Coast and expanding its B2B creator marketing capabilities; financial terms were not disclosed. - learn more
    • Burbank-based CareerArc was acquired by AI hiring platform Humanly, with financial terms undisclosed. The deal combines CareerArc’s recruitment marketing and social recruiting tools with Humanly’s AI-powered candidate engagement, screening and interviewing platform, creating a more connected system for employers managing high-volume hiring. - learn more
    • Ethiqly was acquired by Carnegie Learning from Owl Ventures and the company’s management, with financial terms undisclosed. Carnegie Learning plans to integrate Ethiqly’s AI-powered writing platform into its literacy offerings, helping students improve their writing while giving teachers greater visibility into the drafting, revision and learning process. - learn more

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      How to Navigate LA Tech Week 2026

      🔦 Spotlight

      Happy Friday, Los Angeles.

      Next week, hundreds of tech events will take over the city, bringing founders, investors, engineers and creators together from October 12 through 18.

      Calling LA Tech Week a conference does not quite capture the experience.

      Presented by Andreessen Horowitz, Tech Week is a decentralized collection of panels, workshops, demonstrations and gatherings hosted independently by startups, venture firms and technology companies. There is no convention center or central stage. The programming stretches from Santa Monica and Venice to Culver City, Downtown, El Segundo and beyond.

      In other words, the city is the venue.

      AI remains the dominant theme for 2026, appearing across enterprise software, healthcare, finance, media and the creator economy. The schedule also reflects industries where Los Angeles has built a particular advantage, including aerospace, defense, robotics, advanced manufacturing, entertainment and consumer technology.

      That range is what makes LA Tech Week distinct. It brings together the software companies shaping what comes next with the industries that already define Southern California.

      The challenge is deciding where to show up.

      Our advice: apply early and organize your schedule by neighborhood. Crossing from Santa Monica to Downtown may look manageable on a calendar created by someone who has never driven in Los Angeles.

      To help you spend more time meeting people and less time crossing the city, we have organized each day’s events by location:

      You can also browse the complete official LA Tech Week calendar.

      Plan carefully, but do not fill every minute. The best conversation of the week may be the one that was never on your calendar.

      More from this week’s LA startup and venture scene below.

      🤝 Venture Deals

        LA Companies

        • El Segundo-based Gallatin AI raised a $50M Series A from new and existing investors including 8VC and Silent Ventures, bringing its total funding to $70M. The defense technology startup will expand its engineering team and advance Navigator, an AI platform that helps U.S. military units coordinate vehicle readiness, supplies, medical logistics and other mission-support operations. - learn more
        • Pasadena-based quantum computing startup Oratomic raised a $475M Series B at a $5.4B valuation, just three months after its Series A. ARCH Venture Partners, Spark Capital, Khosla Ventures, Index Ventures, General Catalyst and Bezos Expeditions co-led the round, bringing Oratomic’s total funding to $775M as it works toward a commercially viable, fault-tolerant quantum computer by 2030. - learn more
        • Torrance-based Fortastra raised a $30M Series A led by First In, with participation from Upfront Ventures, Space Capital, Rsquared, Side Door Ventures, ATX Ventures and existing investors. The company will use the capital to develop its next-generation maneuverable spacecraft, expand its engineering and operations teams and scale production of systems designed to protect critical assets in orbit. - learn more
        • Parallel Systems raised a $100M Series C led by AVP, with participation from Hillspire, Agility Global, Cobalt Capital, Anthos Capital, Congruent Ventures, Riot Ventures and Collaborative Fund. Founded by former SpaceX engineers, the company will use the funding to scale production and commercial deployment of its autonomous, battery-electric Panther rail vehicles, which are designed to make short-haul freight more competitive with trucking. - learn more
        • Gaming studio Gardens Interactive secured more than $35M in a Series B led by Lightspeed, with participation from Sequoia Capital, Index Ventures, Accel, Innovation Endeavors, Zenith Capital and other investors. The company will use the funding to launch and operate its debut social role-playing “strandbox” game, an evolving multiplayer world shaped by players’ actions and interactions. - learn more
        • Outer Spaces raised an $8M pre-seed round led by Upfront Ventures, with participation from Unlock Venture Partners, Mucker Capital and Genius Ventures. The startup is developing outdoor furnishings with integrated solar panels and batteries, turning backyards into sources of clean energy and backup power. - learn more
        • Furientis raised a $25M seed round led by Benchmark at a reported $125M valuation, following a $5M pre-seed announced in May. The defense startup will use the capital to scale production of lower-cost missile interceptors designed to be assembled quickly with readily available components, with a long-term goal of producing 1,000 systems annually at each factory. - learn more
        • Hiyo raised a $20.8M Series B led by Constellation Brands, with returning investor Live Nation also participating. The nonalcoholic beverage company will use the funding to expand its adaptogen- and nootropic-infused social tonics across more than 13,000 retail locations while growing its presence at hospitality venues and live events. - learn more
        LA Venture Funds
        • Navitas Capital participated in Vesta’s $30M Series B, which was led by Conversion Capital and included backing from several major mortgage lenders and financial institutions. The company will use the funding to scale its AI agents across mortgage origination, automating tasks such as application reviews, underwriting decisions and closing-document checks. - learn more
        • MTech Capital led Nettle’s oversubscribed $4.8M seed round, with participation from Project A Ventures, Sure Valley Ventures, Portfolio Ventures and Ventures Together. The insurtech startup will use the funding to expand across the U.S. and Europe while growing its AI platform, which helps commercial insurers identify property risks, accelerate inspections and generate reports. - learn more
        • Bonfire Ventures doubled down on Santé by participating in the company’s $15M Series A, which was led by FINTOP and included other returning investors. The New York startup will use the funding to expand its AI-powered operating system for independent wine and liquor stores, which combines point-of-sale, e-commerce, payments, inventory and marketing tools in one platform. - learn more

        LA Exits

        • Winnow Solutions was acquired by Marina del Rey-based Spring Labs, with financial terms undisclosed. Winnow’s attorney-built library of more than 100,000 state and federal regulatory requirements will become a core part of SpringGRC, helping financial institutions connect changing laws directly to their compliance policies, controls and workflows. - learn more

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          LA Tech Week 2026: Sunday’s Event Lineup

          🔦 Spotlight

          LA Tech Week 2026 closes Sunday with one final day of events across Los Angeles. We have organized the remaining lineup by neighborhood so you can finish the week with a few last conversations before everyone returns to their regularly scheduled inboxes.

          ARTS DISTRICT

          12:00 PM

          CARSON

          12:00 PM

          CULVER CITY

          9:00 AM

          • Women in Cleantech & Sustainability Hike and Network: See Details Here
            Women in Cleantech & Sustainability

          6:00 PM

          • Founders pitch competition: See Details Here
            Biomorphix solutions, Nightingale regenerative

          HOLLYWOOD

          10:00 AM

          4:00 PM

          • AI International: Film, Music Video & Micro-Drama: See Details Here
            AI International Film Festivals

          MID CITY

          1:00 PM

          OTHER

          12:00 PM

          • ORGANIC LIFE LABS™ PRESENTS THE ALIGNMENT LAB: The Science of human performance: See Details Here
            The Blue Room Collective

          SANTA MONICA

          8:00 AM

          1:00 PM

          6:00 PM

          SOUTH LA

          2:00 PM

          • Future Builders : Family STEM Day: See Details Here
            Black L.A. Tech Week (Community Collective)

          VENICE

          10:00 AM

          12:00 PM

          • How to Raise Funds to Fund Any Business Using Digital Products.: See Details Here
            DN Events

          VIRTUAL

          5:00 PM

          WEST HOLLYWOOD

          3:00 PM

          Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit the official Tech Week calendar.

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