The Existential Crisis Plaguing Tech’s Cohabitation Incubators

Andrew Fiouzi
Andrew Fiouzi is an editor at dot.LA. He was previously a features writer at MEL Magazine where he covered masculinity, tech and true crime. His work has been featured in the Los Angeles Times, Long Reads and Vice, among other publications.
The Existential Crisis Plaguing Tech’s Cohabitation Incubators

In 2021, dot.LA reported on the invasion of the startup live-in incubator. “In the Hollywood Hills, a collective started by two twenty-seven year-old entrepreneurs is helping seed-stage companies land funds and build up their products,” wrote Katherin Abando. “Across town, a roving launch house focuses on building biotech entrepreneurs. Another is trying to foster breakthrough products in augmented reality.”

Fast forward a year. The collab house model—which often touts itself as an educational program for tech entrepreneurs to live together and develop their companies—is facing an existential crisis, with at least one of the examples lauded in the article facing multiple allegations of fostering a culture that led to sexual assault, harassment and in one case, retaliation against a member of the house.


The distinction between Launch House and other live-incubators has been well described. In 2021, dot.LA reported that unlike veteran accelerators like Y Combinator, Launch House founders Jacob Peters, Michael Houck, and Brett Goldstein weren’t promising entrepreneurs any investment. Instead, the draw was, “schmoozing, advice and social media exposure.” And their idea was based on Peters’ belief that, "Universities are no longer going to be the aggregators of great talent. It's going to be small, niche communities that start in houses."

If that’s going to be the case however, there needs to be a serious reconsideration of how the collab-house model operates when the heat is on. Earlier this month, Vox released an investigation into Launch House, a “professional social club” for tech founders, which among other activities, hosts members at a luxury property in Beverly Hills. Since that report, some existing investors in the startup and its venture fund have issued public statements supporting the alleged victims and denouncing the alleged behavior of Launch House. Others have taken the stance that the reporting of the story itself was exploitative, blaming the media for its “handling” of the news was itself insensitive.

Launch House, meanwhile, confirmed to TechCrunch via spokesperson that it is initiating its own independent, third-party investigation. Company CEO Brett Goldstein published a public memo in response to the allegations in which he stated that claims in the Vox story pertain “to a period over a year ago when we were a very different company.”

This isn’t the first time Launch House has faced complaints of workplace misconduct. Late last year, Business Insider reported about a “wild party” at the Launch House mansion in May 2021 as well as a COVID outbreak the year before.

Should anyone be surprised that a tech incubator full of young people living and working under the same roof, with dreams of being tech entrepreneurs, is prone to cultivating an unsafe workplace environment?

In 2017, Y Combinator was in the news for similar indiscretions. At the time, the incubator—known for launching Airbnb, Coinbase, DoorDash, Dropbox, Reddit and Twitch—was facing their own set of allegations of sexual harassment in the workplace. The startup ostensibly dealt with the situation by issuing apologies and having two high-profile venture capital investors resign. Nonetheless, a year later, according to a survey by Y combinator, one in five female founders who passed through the influential Silicon Valley startup incubator still reported having been sexually harassed or assaulted by investors.

Nearly half a decade later the tech incubator model is still suffering from the same issues that might be obvious to anyone who looked beyond the promise of community. Despite the various cautionary tales of toxic tech startups whose founders end up being played by Joseph Gordon-Levitt, Jared Leto or Amanda Seyfried, many of these incubators have yet to take the very basic step in becoming a legitimate enterprise. Live-in incubators aren’t hiring live-in Human Resource departments…or any at all. And that’s a big problem.

Chien-Chi Tseng is a Collegiate Associate Professor of Technology Entrepreneurship at Virginia Tech who used to develop incubation centers across Taiwan university campuses. According to Tseng, the incubator model should adopt an approach to HR no different from a standard company.

“Like the clients it serves, the incubator must be based on a solid customer need and provide a strong value proposition,” Tseng told dot.LA. “The common thread among all the successful incubators is that they are run as businesses with the customer being the companies they serve.” In the case of Launch House, that’s the young individuals who are trying to create a successful startup who are also living under their roof.he live-in incubator, Tseng believes, warrants a paradigm shift in how it thinks (or more often, doesn’t) about HR. department.

“To better approach the work format of live-in incubators, HR teams cannot decide their success based on a single parameter,” Tseng told dot.LA, one that takes into account a "narrow but diverse set of metrics." Those metrics can range from an incubator's financial health to the number of acquisitions and IPOs; the support provided to its members both in the form of funding from investors to more ephemeral benchmarks, like mentorship engagement. It also needs to be able to swiftly address a myriad of new issues that stem specifically from having colleagues living together: screening applicants not just on the strength of their pitch, but their background checks. Due diligence is a foundational necessity in this process, yet seems to be a low priority for young incubators…until they find themselves in hot water.

To that end, Launch House promised during a private town hall that they are building an industry-leading safety and security program for co-living experiences. The details of the program, however, have yet to be divulged.

With that said, Launch House is hardly the only live-in incubator house reckoning with issues arising from a co-living experience. More recently, a leaked contract from Hype House — one of the most famous and longest-running content houses in Los Angeles — revealed a series of extremely restrictive rules that participating influencers have to follow. “You’re giving up all rights to any claims you have,” said one Los Angeles based lawyer who has represented influencers and others in the entertainment industry. “Everything. All known and unknown future claims, which is excessive.” Far from investing in human resources, Hype House invested in the opposite: lawyers and publicists. This sends a message to the community that optics are more important than fixing systemic issues.

A request for comment sent to four different LA-based live-incubators asking how they’re triaging their approach to HR received no responses.

Currently, the live-in incubator environment makes up a small fraction of Los Angeles tech entrepreneurship. As Vox noted, “Programs like Launch House, which often require members to pack their bags and move to a new city with just a few weeks’ notice, are only feasible for a very specific group of people: young, hungry digital nomads with the freedom to figure it out as they go along.”

But that number is growing, propelled by a new generational ambition: over 30% of Gen Zers living in Los Angeles want to be influencers. With the rise of the “creator house” and an ever-expanding network of live-in startup options, there’s every reason for the collab house model to consider a more robust approach to mitigating the dark side of building “community” in tech. Otherwise, the issues plaguing Launch House today will continue to be the industry standard.
Netflix Doubles Down on LA

🔦 Spotlight

Hey Los Angeles.

Goodbye Coachella, hello Stagecoach. The desert doesn’t stay quiet for long, and neither does LA’s entertainment machine.

This week, that momentum showed up in a more permanent way.

Netflix is expanding its footprint in Los Angeles with a major move to take over and invest in Radford Studio Center, a historic production lot in Studio City. The company is planning a long-term transformation of the site, with upgrades to soundstages, production offices, and infrastructure designed to support the next generation of film and television production.

It’s a notable shift in a moment when production has been under pressure in California, with studios increasingly looking outside the state for cost advantages. Netflix going deeper in LA, and specifically into a legacy studio lot, signals a different kind of commitment. Not just to content, but to where that content actually gets made.

And it comes at a time when the streaming wars have matured. Growth is harder, budgets are tighter, and the focus has shifted from scale at all costs to efficiency and control. Owning or operating more of the production environment gives Netflix tighter control over timelines, costs, and output.

For Los Angeles, it’s a reminder of what still anchors the city. Even as AI, defense tech, and infrastructure startups continue to rise, entertainment remains one of the few industries where LA isn’t just competitive, it’s foundational.

Different headlines each week, but a consistent theme underneath them. Whether it’s power, autonomy, or content, the companies that matter are investing in the layers they don’t want to outsource.

And in this case, that layer is Hollywood itself.

Below are this week’s venture deals, fund announcements, and acquisitions across LA 👇


🤝 Venture Deals

    LA Venture Funds

    • UP Partners and Calm Ventures participated in Reliable Robotics’ $160M funding round, backing the autonomous aviation company as it advances pilotless flight technology for cargo and passenger aircraft. The round included a mix of new and existing investors, and the company plans to use the capital to accelerate certification efforts and expand deployment of its autonomous systems across commercial aviation. - learn more
    • Blue Heron Ventures participated in Tava Health’s $40M Series C, backing the company as it expands its tech-enabled mental health platform into a more integrated, full-stack system for providers, employers, and health plans. The round was led by Centana Growth Partners with participation from existing investors, and the company plans to use the funding to roll out new AI-powered tools and broaden access to care while reducing administrative friction across the system. - learn more
    • Vamos Ventures participated in Zócalo Health’s $15M Series A, backing the company as it scales its tech-enabled, community-based primary care model focused on high-need and underserved populations. The round was led by .406 Ventures with participation from existing and new investors, and the company plans to use the funding to expand its clinics and deepen partnerships with Medicaid programs as demand for accessible care grows. - learn more

    LA Exits
    • Studio71 has been acquired by Fixated as part of a broader deal in which German media company ProSiebenSat.1 sold its North American creator business, giving Fixated a large-scale network of creators and podcast operations and significantly expanding its footprint as it continues an aggressive roll-up strategy in the creator economy. The move signals continued consolidation in the space, with Fixated building a more vertically integrated platform across talent management, content production, and distribution. - learn more
    • Bonsai Health has been acquired by ModMed, bringing its AI-powered patient engagement platform into a broader healthcare software ecosystem. The deal is aimed at integrating Bonsai’s “agentic AI” capabilities into ModMed’s platform to automate patient outreach, fill care gaps, and improve scheduling across a network of nearly 50,000 providers. - learn more

      Download the dot.LA App

      A $26M Push Into Power in LA

      🔦 Spotlight

      Hello, Los Angeles.

      Coachella Weekend 2 is here, which usually means LA is either heading back to the desert or happily staying put this time around. Back in the city, the focus this week is less about music infrastructure and more about something far more critical, power.

      That’s where this week’s news comes in.

      Critical Loop, a Los Angeles-based energy startup, raised a $26 million Series A to tackle one of the least talked about bottlenecks in tech right now, grid interconnection. In simple terms, it’s the process of getting power to where it’s needed, and increasingly, that process is too slow to keep up.

      Critical Loop is building modular microgrid systems that can be deployed in days instead of years, giving industrial operators, data centers, and other energy-heavy users faster access to power without waiting on traditional grid upgrades. The round was led by Conifer Infrastructure Partners and Hanover, with participation from Better Ventures, Climate Capital, Adapt Nation Capital, and Cyrus Ventures.

      The timing here matters. Between AI infrastructure demands, electrification, and a broader push toward domestic energy resilience, power is quickly becoming a gating factor for growth. You can build the data center, the factory, or the next big thing, but none of it works if you can’t turn it on.

      That’s what makes companies like Critical Loop worth watching. They’re not building the flashiest part of the stack, but they’re solving for the piece everything else depends on.

      And in a city that knows a thing or two about scaling ambition quickly, that might be the most important layer of all.

      Below are this week’s fund announcements across LA 👇


      🤝 Venture Deals

      LA Venture Funds

      • Anthos Capital participated in Wealth.com’s $65M Series B, backing the AI-powered estate and tax planning platform as it scales across financial institutions. The oversubscribed round included new investors like Titanium Ventures and Pruven Capital alongside existing backers, and the company plans to use the funding to expand product development, pursue acquisitions, and grow its enterprise footprint as demand rises for AI-driven wealth management solutions. - learn more
      • Anamika Ventures participated in Sage Haven’s $3M pre-seed round, backing the AI-powered messaging and calling app designed to create a safer communication environment for kids. The round was led by Anamika Ventures alongside Fabric Ventures and a group of early-stage investors, as the company launches a platform focused on preventing cyberbullying through real-time AI moderation and parent oversight tools. - learn more
      • MANTIS Venture Capital participated in Factory’s $150M Series C, backing the AI startup as it builds autonomous software engineering systems for enterprise teams. The round was led by Khosla Ventures and included firms like Sequoia Capital, Blackstone, Insight Partners, and NEA, valuing the company at $1.5 billion. Factory plans to use the funding to invest further in product development and global expansion as demand grows for AI-driven tools that can automate large portions of the software development process. - learn more
      • Rebel Fund participated in Uplane’s $4.5M seed round, backing the AI startup as it looks to replace traditional marketing agencies with a platform that automates ad creation, testing, and budget optimization. The round was led by Play Ventures with participation from Y Combinator, 20VC, and Multimodal Ventures, and the company says its technology can improve return on ad spend by automating performance marketing workflows. - learn more
      • Alexandria Venture Investments and Presight Capital participated in Alloy Therapeutics’ $40M Series E, backing the biotech infrastructure company as it scales its AI-powered platform for drug discovery and development. The round included a mix of new investors like 8VC and JIC Venture Growth Investments alongside returning backers, valuing the company at $1 billion and underscoring continued interest in platforms that combine AI, data, and lab services across the biopharma lifecycle. - learn more
      • Finality Capital Partners participated in HYFIX’s $15M seed round, backing the semiconductor startup as it builds American-made chips designed to power drones and autonomous robots. The round was led by Craft Ventures with participation from Catapult Ventures, Multicoin Capital, and Sky Dayton, and the company is developing an integrated system-on-a-chip to replace fragmented hardware stacks and reduce reliance on foreign components. - learn more
      • Rainfall Ventures participated in Stendr’s $5.4M pre-seed round, backing the Norwegian defense tech startup as it builds an AI-native platform for drone detection and counter-drone operations. The round was co-led by Rainfall alongside ACME Capital and Skyfall, with additional participation from Antler, StartupLab, and other early-stage investors, and the company plans to use the funding to accelerate development of its multi-sensor technology and expand engineering capabilities. - learn more
      • Slauson & Co. participated in Slate Auto’s $650M funding round, backing the EV startup as it works to bring a lower-cost electric pickup truck to market. The round was led by TWG Global and comes as the Bezos-backed company prepares to begin production, targeting a more affordable segment of the EV market with a customizable truck expected to launch later this year. - learn more
      • Navitas Capital co-led Primepoint’s $10M seed round, backing the AI startup as it builds a platform that reads and connects complex construction drawings to streamline project workflows. The round also included investors like Penny Jar Capital, NextView Ventures, GS Futures, and Aglaé Ventures, and the company plans to use the funding to expand its platform and grow adoption among large commercial contractors. - learn more
      • Alexandria Venture Investments participated in Neomorph’s $100M Series B, backing the biotech company as it advances its molecular glue degrader platform targeting previously undruggable diseases. The round was led by Deerfield Management with participation from Regeneron Ventures, Longwood Fund, and Binney Street Capital, and the company plans to use the funding to support ongoing clinical trials and expand its broader drug development pipeline. - learn more

      Download the dot.LA App

      Hermeus Moves In. Uber Lines Up. LA Wins.

      🔦 Spotlight

      Hello, Los Angeles.

      This week’s transportation news says a lot about where LA is headed and who wants to build here.

      Start with Hermeus, which hit a $1 billion valuation after raising $350 million as it works on high-speed aircraft for defense applications. More notably for Los Angeles, the company is moving its headquarters to El Segundo, adding to the region’s growing aerospace and defense cluster. The round was led by Khosla Ventures, with participation from returning backers including Canaan Partners, Founders Fund, RTX Ventures, Bling Capital, and In-Q-Tel, along with new investors including Cox Enterprises, Socium Ventures, Destiny Tech100, Georgia Tech Foundation, 137 Ventures, and GSBackers.

      Then there’s Uber, which made two separate autonomous vehicle announcements that both put Los Angeles in the rollout map.

      The first is a partnership with Zoox, Amazon’s autonomous vehicle company. Uber said the service is expected to launch in Las Vegas in summer 2026 and then come to Los Angeles by mid-2027, giving riders the option to match with a Zoox robotaxi through the Uber app.

      The second is a new deal with MOIA America, which plans to deploy autonomous ID. Buzz vehicles on the Uber platform in Los Angeles by the end of 2026.

      Taken together, the message is pretty straightforward: LA is not just watching the future of transportation take shape, it is increasingly being used as the place to test it, scale it, and sell it. Hermeus is bringing its headquarters here as defense aviation regains momentum. Uber is lining up autonomous partners with Los Angeles as a target market. Different companies, different timelines, same conclusion: a meaningful share of the next transportation cycle is being built with LA in mind.

      Below are this week’s venture deals, fund announcements, and acquisitions across LA.


      🤝 Venture Deals

      LA Companies
      • PeakMetrics raised a $6M Series A to scale its AI-powered narrative intelligence platform, which helps organizations track how information spreads online and identify risks from misinformation and coordinated campaigns. The round was led by Moneta Ventures with participation from Techstars, Parameter Ventures, VITALIZE Venture Capital, and Gurtin Ventures, and the company plans to use the funding to enhance its real-time detection capabilities and expand adoption across enterprise and government customers. - learn more
      • Hybron raised a $25M seed round to scale its advanced carbon fiber composite manufacturing technology, which aims to produce high-performance components faster and at lower cost than traditional methods. The round was led by Marque Ventures with participation from a mix of venture firms and strategic investors, and the company plans to use the funding to expand manufacturing capacity, grow its team, and support increasing demand from aerospace and defense programs. - learn more

      LA Venture Funds

      • Emmeline Ventures participated in Osteoboost’s $8M funding round, backing the company as it expands access to its FDA-cleared wearable designed to treat low bone density in postmenopausal women. The round was led by Ambit Health Ventures with participation from Disrupt Health Impact Fund and others, and the company plans to use the capital to scale manufacturing, expand clinical research, and grow commercial adoption. - learn more
      • Bonfire Ventures led Juno’s $12M seed round, backing the AI-powered tax preparation platform as it aims to automate up to 90% of the manual work in tax filing for accounting firms. The round included participation from Impression Ventures and Xfund, and the company says its software can significantly reduce preparation time while keeping CPAs in the loop for review and advisory work. - learn more
      • Alexandria Venture Investments participated in Sidewinder Therapeutics’ $137M Series B, which will help fund the company’s push to bring its precision bispecific ADC cancer programs into the clinic. The round was co-led by Frazier Life Sciences and Novartis Venture Fund, and Sidewinder said it expects to advance its lead program into clinical development in 2027. - learn more
      • Slauson & Co. participated in Flora Fertility’s $5M seed round, backing the company as it builds what it describes as an individually owned fertility insurance platform that is not tied to an employer. The round was led by ManchesterStory, and Flora plans to use the funding to scale a model aimed at making fertility coverage more portable and accessible for consumers. - learn more
      • Mucker Capital participated in Fastrflow’s $375K early funding round, backing the startup as it builds a screen-aware AI copilot designed to assist students and professionals directly within their workflows. The company is focused on creating an assistant that can understand what’s on a user’s screen in real time to provide contextual help, positioning itself as a more integrated alternative to traditional standalone AI tools. - learn more

      LA Exits

      • Modern Animal has been acquired by Chewy, giving the pet e-commerce giant a much bigger physical veterinary footprint as it expands deeper into healthcare. The deal brings Chewy an additional 29 clinics, 24/7 virtual care, and a membership-based model, and is expected to grow Chewy Vet Care from 18 to 47 locations nationwide while adding more than $125 million in annualized run-rate revenue. - learn more
      • Honk has been acquired by Frontenac, with the Los Angeles roadside assistance software company simultaneously completing an add-on acquisition of CurbsideSOS as part of the deal. The combination is meant to scale Honk’s platform for roadside assistance, towing, and accident management, with former Grubhub executives including Adam DeWitt, Matt Maloney, and Eric Ferguson joining the company to lead its next phase of growth. - learn more

      Download the dot.LA App

      RELATEDEDITOR'S PICKS
      Trending