The LAPD Is Spending Millions On Spy Tech to Beef Up Security

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.
police officer surrounded by drones and security cameras ​
Andria Moore

Over the past six years, the LAPD spent millions in FEMA funds on automated license plate readers, predictive policing software and other spy tech, according to a new report. Authored by Action Center on Race and Economy (ACRE), the report focused on a counter-terrorism grant program under FEMA known as the Urban Area Security Initiative (UASI). First created in 2003, the UASI was designed to help the largest cities beef up their emergency preparedness agencies and prevent acts of domestic terrorism.


According to a mayor’s report from January 2021, the city of Los Angeles received roughly $20.5 million in UASI grants. Of that amount, approximately half (or $10 million) went to the LAPD. Notably, the amount was only a drop in the bucket of LAPD’s total $1.7 billion budget for the fiscal year 2020 (which was cut by $150 million in response to the movement to defund the police). For fiscal years 2022-2023, the L.A. City Council approved a $1.9 billion operating budget for the city’s police.

While local police departments receiving federal money is nothing new, critics say the existence of such funds gives the LAPD more freedom to invest in invasive technologies. LAPD recently came under scrutiny for its use of facial recognition technology. Earlier this month, an inspector’s general report revealed that the LAPD’s use of facial recognition software only resulted in a positive match about 55% of the time and the department didn’t track incidents where matches led to a misidentification of a suspect.

Automatic License Plate Readers (ALPR)

Between 2016 and 2020, the LAPD purchased at least $1.27 million worth of ALPR readers per report. ALPRs have increasingly come under increased scrutiny for their high error rates and risks to privacy. The high-speed cameras scan images of nearby license plates and alert police officers to stolen vehicles or people wanted for a crime.

One 2020 audit found that the LAPD and three other police departments were collecting massive amounts of data on drivers and their movements — but weren’t doing enough to protect privacy. According to the audit, of the 320 million images that the LAPD had stored in 2020, roughly 99.9% were unrelated to criminal investigations.

Palantir Data Fusion Platforms

Palantir, a controversial software company that has faced criticism for enabling government surveillance, has provided predictive policing software to the LAPD since 2011. The company’s platform can identify criminal “hotspots” by analyzing license plate photos, police reports, gang databases, regional crime reports and other data.

The exact amount of money the company has received from UASI is unclear. Public records requests, however, estimate that the LAPD spent over $20 million on Palantir software between 2009 and 2018.

It’s important to not that such tools have disproportionately targeted low-income individuals, people of color and unhoused people. Last year more than 1,400 mathematicians signed on to a letter criticizing predictive policing for its racial biases in the trade journal Notices of the American Mathematical Society (AMS). In 2019, PredPol (a predictive policing tool once used by the LAPD) faced criticism from mathematicians for using flawed algorithms that created feedback loops.

“If you build predictive policing, you are essentially sending police to certain neighborhoods based on what what they told you—but that also means you’re not sending police to other neighborhoods because the system didn’t tell you to go there,” University of Utah computing professor Suresh Venkatasubramanian told Motherboard.

Radio Systems

Between 2016 and 2020, the LAPD spent roughly $24 million to upgrade their radio communications network through Motorola. As the Los Angeles Times reported in 2007, the department’s two-way portable radio system was often unreliable and had been in need of an upgrade for years. Some officers even resorted to using their cell phones for field communications.

Critics noted that radio systems have allowed police to avoid public oversight in light of many cities encrypting their scanners in recent years. Furthermore, since 2020, many cities including Santa Monica, Santa Cruz, San Diego and others (though not Los Angeles) have opted to take their radio communications private in order to comply with a DOJ directive to protect private information. But critics warn that such a move prevents the media and the public from keeping track of criminal activity or public safety developments during natural disasters.

Cell Site Simulators

The LAPD also spent $630,000 of 2020 UASI funding on cell-site simulators — devices that look like cell towers that allow police to pinpoint the location of a specific smartphone. Cell site simulators can identify the unique IMSI number (international mobile subscriber identity) attached to every mobile device.

Also known as Stingrays or IMSI catchers, the devices can collect the content of SMS messages, voice calls and any websites visited. IMSI catchers essentially trick nearby mobile devices into connecting with them and then collect the data sent from the device, including its location and other personal data. Some devices even have the ability to intercept text messages and phone calls.

Cell site simulators are in ample use in California and and in major police departments throughout the country, including in cities like Chicago, Boston and New York City. Critics of cell site simulators say they function as dragnet surveillance tools — essentially capturing data from bystanders—and also can potentially interfere with 911 calls.

Social Media Surveillance

Skopenow — a social media monitoring company — counts the LAPD as one of its customers, along with the U.S. Secret Service, the U.S. Postal Inspection Service and Broward County, Florida. Last year, the software led to the arrests of three middle school students in Florida after police found threats they made on social media.

According to the company’s website, Skopenow functions as a sort of “analytical search engine” for social media. It claims it can inform customers when criminals post content related to drugs, weapons or stolen items. It also lets users easily view a person of interest’s mutual friends, shared vehicles, employment histories and business affiliations.

Since the ACRE report’s analysis doesn’t go past fiscal year 2020, it doesn’t capture recent developments in LAPD’s use of surveillance. In August, the L.A. Police Commission adopted rules that will require the LAPD to submit detailed proposals before acquiring new technology. It also needs to disclose which data will be collected on people and for how long it will be kept.

While such reform is definitely a start, critics point out that similar policies on facial recognition haven’t reigned in police abuse and have instead served as a cover.

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From Breaking Tech News to Backing It
Image Source: Sources

🔦 Spotlight

Hey there, Los Angeles.

For the past decade, Alex Heath has made a career out of figuring out what the technology industry is doing before everyone else.

Now, he is going to invest in it.

Heath announced this week that he is joining Los Angeles-based Sound Ventures as a partner on its investing team. The veteran technology journalist will continue independently operating Sources, the newsletter and podcast business he launched after leaving The Verge last year.

It is an unusual career move, but perhaps not as unusual as it initially appears.

Journalists and venture capitalists spend much of their time doing surprisingly similar work. Both look for signals before they become obvious, build relationships with people who know what is coming next and attempt to distinguish a lasting shift from a convincing story.

The crucial difference is what happens after they find one.

A journalist publishes. An investor writes a check.

Heath has spent years reporting on some of the technology industry’s most powerful companies and executives. At The Verge, where he served as deputy editor, his work focused on the internal decisions shaping companies such as Meta. More recently, Sources has taken readers inside the AI race through reporting and interviews with executives including Sam Altman and Mark Zuckerberg.

That experience gives Sound something venture firms increasingly want: someone who already understands the founders, companies and narratives competing to define the next era of technology.

Sound Ventures is not exactly starting from scratch. Led in Los Angeles by Guy Oseary and Effie Epstein, the firm manages nearly $2B and has backed companies including OpenAI, Anthropic, World Labs, Brex, Affirm and GitLab. According to The Wall Street Journal, Sound deployed more than $800M into early positions in OpenAI, Anthropic and World Labs as it intensified its focus on artificial intelligence.

Heath is joining during an important transition for the firm. Ashton Kutcher, who co-founded Sound with Oseary in 2015, departed earlier this year to launch a new venture firm. Oseary and Epstein are continuing to lead Sound while raising its fifth flagship fund and sharpening its strategy around companies with the potential to reach meaningful commercial scale.

Adding Heath suggests that Sound’s next phase will not be defined by capital alone.

As AI makes it faster and less expensive to build software, technical capability may become less effective as a differentiator. More startups will be able to create credible products, and more of them will compete for the same finite supply of customers, talent and attention.

In that environment, knowing how to identify a compelling founder is only part of the job. Venture firms also need to understand how companies earn trust, communicate what makes them different and remain culturally relevant in an increasingly crowded market.

That is familiar territory for Sound. Oseary built his career managing artists including Madonna and the Red Hot Chili Peppers, where recognizing talent was inseparable from helping that talent connect with an audience. Heath brings a different version of the same instinct, developed through finding important stories and understanding why people should pay attention to them.

Heath will continue owning and operating Sources independently while expanding its podcast and interviewing prominent voices across the technology industry. That means he is not abandoning the platform or audience he built. He is adding a new vantage point.

The combination could prove especially valuable to Sound. Heath brings the instincts of a reporter, the reach of an independent media founder and years of relationships with the people shaping technology. Now, he can apply that experience to finding and supporting the next generation of founders.

It is a fitting evolution for someone who has spent his career identifying important technology stories early.

This time, he will have the opportunity to help write what happens next.

Venture firms once competed primarily through capital, networks and operating expertise. Now, access to attention is becoming an asset of its own. Founders need help reaching customers and shaping public understanding, while investors want better ways to recognize which people and ideas will command that attention next.

Sound Ventures hired someone who has spent a decade doing exactly that.

Heath used to decide which technology stories were worth following.

Now, he will help decide which ones get funded.

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

🤝 Venture Deals

    LA Companies

    • Maven Robotics emerged from stealth with a $100M Series A and humanoid robots already operating in warehouse deployments. The company says its robots can work for 16 hours a day with 99% uptime and is positioning itself as a reliable alternative for businesses whose existing robotics providers fail to meet deployment targets. - learn more

    LA Venture Funds
    • Bedrock Capital participated in Mach Industries’ $600M Series C extension alongside Ribbit Capital, Infinite Capital and Sequoia, bringing the round’s total to $900M and doubling the defense startup’s valuation to $3.7B in three months. The Huntington Beach company manufactures lower-cost unmanned aircraft, strike weapons and counter-drone systems, while expanding into solid rocket motors and jet-engine production to address critical defense supply-chain bottlenecks. - learn more
    • U First Capital participated in Positron AI’s $875M funding round, which was co-led by NEA, Atreides Management, Valor Equity Partners, Andra Capital, SemiAnalysis Capital and Jim Clark, valuing the AI chip startup at $5B. Positron will use the capital to bring its memory-focused Asimov processor and Titan server system to market, offering an energy-efficient alternative to GPUs for running AI models. - learn more
    • WndrCo participated in Harvey’s $550M funding round, co-led by Diffusion and Lightspeed Venture Partners, valuing the legal AI company at $15.5B. Harvey will use the capital to expand its team and advance its AI platform, which helps law firms, in-house legal departments and professional-services organizations build and manage proprietary legal intelligence. - learn more
    • Nolan Capital participated in Encoded Therapeutics’ $275M Series F, which was co-led by GV and another healthcare-focused fund and included several new and returning investors. The biotech will use the capital to advance its lead gene therapy for Dravet syndrome through pivotal studies, expand its manufacturing capabilities and prepare another treatment for post-amputation nerve pain for clinical testing in 2027. - learn more
    • UP Partners led Overroute’s $5.5M seed round to expand its AI-powered freight execution platform for large trucking fleets and logistics operators. The company’s AI agents automate load monitoring, exception management and freight coordination, helping fleets respond to disruptions and keep shipments moving with less manual work. - learn more
    • Patron Fund participated in System’s $20M funding round alongside Will Ventures, Vine, Courtside, Daybreak, SV Angel and RiverPark Ventures. The San Francisco company will use the capital to expand its vertically integrated peptide platform, which connects patients with licensed clinicians and personalized treatments from U.S. compounding pharmacies while emphasizing testing, traceability and regulatory compliance. - learn more
    • Alpha Edison led Onix’s $5M pre-seed round, with participation from Garage Capital, Ride Home Fund and strategic investors including UTA co-founder Jeremy Zimmer and Real Ventures co-founder JS Cournoyer. The Montreal startup will use the funding to develop its private AI platform, onboard more specialists and prepare for a public launch, offering personalized guidance built exclusively from licensed expert knowledge rather than information scraped from the internet. - learn more
    • Rebel Fund participated in VideoGen’s $3.3M seed round alongside Y Combinator, Lobster Capital, Stretford End Capital, Mento VC, Pioneer Fund and Decacorn VC. The San Francisco startup, which has reached more than 5M users across 190 countries, will use the funding to expand its team and grow its AI platform for producing editable, copyright-free videos. - learn more

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      Who Gave the AI Access?

      🔦 Spotlight

      Happy Friday, Los Angeles.

      The newest employee in the office does not need a desk, a salary or a coffee order. But it may have access to your company’s emails, financial records, customer data and software systems.

      That raises a fairly important question: Who decides what an AI agent is allowed to do?

      El Segundo-based cybersecurity company Saviynt is building its next chapter around the answer.

      Carrick Capital Partners announced this week that it closed a $600M continuation vehicle for Saviynt, including a new $255M investment in the company. The transaction allowed Carrick’s existing investors to either take liquidity or remain invested, while also providing liquidity to Saviynt employees through a tender offer.

      Continuation vehicles are not exactly known for making gripping Friday reading. The company behind this one is considerably more interesting.

      Saviynt develops identity security software that helps businesses determine who can access their applications, data and infrastructure. Increasingly, however, “who” does not refer exclusively to a person.

      Companies are deploying AI agents that can retrieve information, write code, communicate with customers and complete multistep tasks with limited supervision. These digital workers need access to company systems to be useful, but every new permission also creates another opportunity for sensitive information to be exposed or an unintended action to be taken.

      In other words, AI agents may be tireless employees. They are not necessarily trustworthy ones.

      Saviynt is addressing that problem through Zuma, its platform for discovering, securing and governing AI agents, large language models and other nonhuman identities alongside a company’s human workforce. The goal is to give businesses one place to determine what every identity can access, whether it belongs to an employee, a contractor, a software application or an autonomous agent operating at machine speed.

      The opportunity appears to be growing quickly. Saviynt has surpassed $300M in annual recurring revenue, up from approximately $10M when Carrick first invested. The company says bookings have increased by more than 80% this year while customer retention remains at 96%.

      The new investment was completed as part of the final close of Saviynt’s previously announced $700M Series B, which valued the company at approximately $3B. Carrick’s continuation vehicle was led by Coller Capital and co-led by HSBC Asset Management, giving the investment firm more time and capital to remain behind one of its strongest-performing companies.

      For Saviynt, the funding will support further development of its identity platform, deeper integrations with major cloud and software providers and its push to become a central security layer for the agentic workplace.

      That ambition reflects a broader change taking place inside companies. The first wave of enterprise AI focused largely on what the technology could generate. The next phase is about what it can actually do, and whether businesses can maintain control once AI moves from answering questions to taking action.

      Saviynt is betting that identity will become the gatekeeper.

      AI agents are gaining access to the digital workplace, whether corporate security teams are ready for them or not.

      Someone still has to hold the keys.

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

      🤝 Venture Deals

        LA Venture Funds

        • Fulcrum Ventures participated in Critical Materials Group’s $10.3M seed round, led by Overmatch Ventures and joined by Victory Six Advisors. The Austin-based defense manufacturer will use the funding to develop and commission modular, automation-ready production systems designed to expand domestic manufacturing capacity for munitions and advanced energetic materials. - learn more
        • Fusion VC participated in Newlight’s $9M seed round alongside lomarlabs, BIRD Energy, Undeterred Capital and CiRi Ventures. The San Francisco-based maritime technology company recently demonstrated its hydrogen-hybrid retrofit on an 8,500-nautical-mile commercial voyage, reducing fuel consumption by 24% and carbon dioxide emissions by 28%. - learn more
        • Rebel Fund participated in Metal’s $4.5M seed round alongside a16z, Y Combinator, Gaingels, Indus Valley Capital, Phaze Ventures and Pioneer Fund. Metal will use the funding to build an AI-native operating system that helps founders identify relevant investors, manage outreach and automate other parts of the venture fundraising process. - learn more
        • UP.Partners participated in Reframe Systems’ $40M funding round, led by Energy Impact Partners and joined by Counterpart Ventures, E12 Ventures, Global Brain, Thin Line Capital and LACI Impact Fund. The homebuilding startup will use the capital to expand its network of robotics-powered microfactories, which it says can construct homes three times faster and at 35% lower cost than traditional methods. - learn more
        • Clocktower Technology Ventures participated in Sharpi’s $4M seed round, co-led by NXTP and ONEVC and joined by MAYA Capital. The Brazilian startup will use the funding to expand its team and develop autonomous AI agents that connect WhatsApp conversations with enterprise systems to automate B2B sales tasks such as order processing, customer follow-ups and demand generation. - learn more

        LA Exits

        • Extensiv, a California-based provider of warehouse management and fulfillment software, has been acquired by Descartes Systems Group for approximately $120M in cash. The acquisition adds Extensiv’s AI-enabled inventory, order, billing and omnichannel fulfillment tools to Descartes’ logistics network, strengthening its offerings for third-party logistics providers and ecommerce brands. - learn more
        • DocSolutionUSA has been acquired by Stewart Information Services alongside ProTitleUSA, adding mortgage document generation and automation capabilities to Stewart’s title services platform. The companies provide title, document and due diligence services for mortgage servicers, investors and capital markets clients; financial terms were not disclosed. - learn more
        • Fysh Foods, the Los Angeles-based plant-based seafood brand founded by creator and entrepreneur Zoya Biglary, has been acquired by City Roots Hospitality in an all-cash deal with undisclosed terms. City Roots plans to introduce Fysh Foods’ raw fish alternatives across its New York City restaurants and potentially expand the brand beyond the city as its restaurant portfolio grows - learn more

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          An LA AI Company Just Won Entertainment’s Backing

          🔦 Spotlight

          Hello LA.

          The entertainment industry has spent the past several years debating what generative AI could take from creators.

          This week, some of its biggest companies put money behind an AI startup promising to build something for them instead.

          Los Angeles-based Stability AI raised $76M in Series B funding from an investor group that includes Electronic Arts, Sony Music Group, Universal Music Group and Warner Music Group. AMD Ventures and Pacific Alliance Ventures also joined the round, while LA-based MANTIS Capital and Sound Ventures are among the company’s existing backers.

          The financing brings Stability AI’s total funding under CEO Prem Akkaraju to $232M, including two equity rounds and convertible notes. The company plans to use the new capital to expand its creative production tools, applied research and professional services across music, gaming and entertainment.

          The amount is notable. The names attached to it are the bigger story.

          Generative AI’s arrival in entertainment has been anything but quiet. Artists have questioned whether their work was used to train models without permission. Studios have faced pressure over how the technology could affect jobs. Record labels have pursued AI companies in court while simultaneously exploring how the same technology might fit into their businesses.

          Now, several of the world’s largest entertainment companies are investing directly in one.

          That does not mean the industry has resolved its concerns about AI. It means some of its biggest players would rather help shape the technology than wait to see what it becomes.

          Stability AI is positioning itself for that opening. Rather than focusing solely on general-purpose models, the company is building tools specifically for professional creatives. Its recently launched Stable Audio 3.0 was trained on fully licensed music and lets artists generate, edit and arrange audio through a web platform or directly inside digital audio workstations.

          Image Source: Stability AI

          That licensed-data approach is central to the pitch. The next phase of creative AI will not be decided only by which company produces the most impressive model. It will also depend on which companies can earn the trust of the artists, studios and rights holders whose work gives those models value.

          For its new strategic investors, the round offers more than financial upside. It creates a closer view into how generative AI may change production, a voice in how the tools develop and an opportunity to establish rules before those rules are established for them.

          For Stability AI, the backing provides something equally important: credibility inside industries that have every reason to scrutinize what it is building.

          The company now has capital and access to some of the largest catalogs, franchises and creative workforces in entertainment. What it does with that access will determine whether this becomes a meaningful alliance or simply an impressive collection of logos.

          Either way, the industry is no longer watching from a safe distance.

          It has entered the room.

          LA’s Air-Taxi Plans Are Coming Downtown

          While Stability AI is trying to change how entertainment gets made, Archer Aviation wants to change how people get to it.

          AEG and Archer announced plans to develop downtown Los Angeles’ first vertiport at L.A. LIVE, creating a potential new stop in Archer’s proposed electric air-taxi network ahead of the 2028 Olympic and Paralympic Games.

          Image Source: Archer

          The planned site would sit beside Crypto.com Arena and allow passengers to travel to and from the entertainment district aboard Archer’s Midnight aircraft. The company says its network could turn drives that take an hour or longer into electric flights lasting approximately 10 to 20 minutes.

          Archer has already identified SoFi Stadium, USC and Hollywood Burbank Airport as possible locations, with its recently acquired Hawthorne Airport expected to serve as the network’s central operating hub. As the official air-taxi provider of LA28 and Team USA, Archer has an unusually visible deadline for turning those plans into something tangible.

          AEG and Archer have completed an initial feasibility study of the L.A. LIVE site, including reviews of land use, airspace, power availability and community impact. The next phase will examine operations and the passenger experience.

          There is still a substantial distance between a proposed vertiport and a functioning air-taxi network. The infrastructure must be built, regulatory approvals must be secured and passengers must be persuaded that flying across the city is safer and more practical than staying on the ground.

          Still, few locations could make that future feel more real than L.A. LIVE. Millions of people already pass through the district for concerts, games and major events. Placing a vertiport there would bring urban air mobility out of the concept stage and directly into public view.

          Together, this week’s announcements show Los Angeles becoming a testing ground for two technologies still moving from promise toward everyday use.

          One could reshape how entertainment is created. The other could reshape how Angelenos reach it.

          In a city famous for both its creative industries and its traffic, that feels appropriately on brand.

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

          🤝 Venture Deals

            LA Companies

            • Atorie raised a $9.5M seed round from investors including a16z speedrun, Night Capital and Lightspeed Venture Partners’ Jeremy Liew. The AI-powered fashion startup connects consumers directly with luxury manufacturers to offer high-quality goods without traditional designer markups, and will use the funding to expand logistics, production and its AI shopping tools. - learn more
            • Long Beach-based Maglut Heavy Industries emerged from stealth with $3.1M in pre-seed funding from Wave Function, Nova Threshold and Julian Capital. The startup is developing a chromatography-based system to process and refine rare earth elements domestically, with pilot tests producing materials at more than 99.9% purity. - learn more

            LA Venture Funds
            • MANTIS Venture Capital participated in Voya Energy’s $35M Series A, led by Energy Impact Partners and joined by John Doerr, StepStone, Founders Fund, Overmatch and Seven Stars. The Hayward-based startup will use the funding to commercialize its aluminum-fueled generators, which provide clean, off-grid power for data centers and other energy-intensive operations without combustion or local air emissions. - learn more
            • Regeneration.VC participated in eComID’s $17M seed round, led by Systemiq Capital and joined by Course Corrected, Stadium and returning investor CapitalT. The Stockholm-based startup will use the funding to expand internationally and scale its AI-powered Shopping Passport, which helps retailers personalize sizing and product discovery while reducing returns. - learn more
            • Clocktower Technology Ventures participated in Helcim’s $53M Series C, led by BDC Capital’s Growth Venture Fund and joined by new investors Curql Collective and LA-based Gold House Ventures. The Calgary payments company will use the funding to expand its platform, develop additional financial services and serve more small and midsize businesses across North America. - learn more

            LA Exits

            • Altruist agreed to be acquired by Vanguard, giving the Los Angeles-based wealth technology and custody platform greater resources to expand its tools for independent financial advisors. Altruist will continue operating as a standalone business under its existing leadership and brand after the deal closes, which is expected later this year pending regulatory approval; financial terms were not disclosed. - learn more
            • Personality AI has been acquired by WildBrain for approximately $11M in cash and 1M WildBrain shares upfront, with additional payments tied to future performance. The startup develops kid-safe conversational AI experiences for entertainment characters, including “Hey Peppa Pig,” and will help WildBrain expand its franchises into interactive products across toys, apps and digital platforms. - learn more

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