Here's How Much Tech Companies Made From LA Unified School District During the Pandemic

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.

Here's How Much Tech Companies Made From LA Unified School District During the Pandemic
Image by Ian Hurley

In the early days of the pandemic, there was a mad dash to get technology and broadband internet service into students' homes. About 1 in 3 Los Angeles Unified School District families didn't have a desktop or laptop computer or high-speed internet, according to an April 2020 study by USC Annenberg.

To improve tech access and to make other COVID-related purchases, the Board of Education granted authority to then-Superintendent Austin Beutner to spend "any dollar amount necessary" to respond to the crisis. In 13 months, the district spent $390.5 million.


Over the course of the 13 months of data, the single largest purchase — $51.3 million — went to SummerBio, a Silicon Valley COVID testing company.

All told, $227.6 million went to tech companies or 58% of the district's total spending in that time frame.

The spending went to tech companies like Apple, T-Mobile, Verizon and a COVID testing company, records obtained by dot.LA through a Public Records Act request show.

Los Angeles school district spending from March 2020 through April 2021 show that money was spent on line items from iPads and broadband to food for students and families, and masks and sanitizing supplies for schools.

In March 2020 alone, 94% of the $72.3 million the district spent using emergency funds went to tech companies.

"It took a procurement team working around the clock to scour the globe and find devices and a technology team to make sure the devices had the proper software installed and every student was connected to the internet," Beutner said in May 2020.

It also began purchasing COVID-19 supplies, including 100,000 N95 masks and 300,000 surgical masks, for $2.4 million, and food for the district's "Grab n Go" meal program, like $450,000 on cases of chicken tenders and drumsticks.

John Rogers, an education professor at UCLA, said the district took decisive action to get necessary technology into student's hands.

"It was a herculean task to shift in-person instruction to remote learning in a district that serves many families who previously did not own a computing device or had regular access to the internet," he said. "Many other districts around the county lagged behind LAUSD in their efforts to provide a baseline of access to learning."

Here are the total amounts large tech companies were paid:

Apple

$51.3 million

Apple was paid virtually the same amount as SummerBio in total, just $9,000 less. It is unclear from the data exactly how many iPads and other devices were purchased and distributed, as a $37.8 million purchase for iPads doesn't list a quantity of items.

Arey Jones

$49.2 million

San Diego-based Arey Jones, which has relationships with Microsoft, Google, Intel, HP and other companies, is a conduit for school districts to procure technology equipment and software. LAUSD purchased Dell, Samsung and HP Chromebooks, monitors and iPad integration services and cases. In March 2020 alone, the company received $22 million.

CDW Government, LLC

$8.6 million

LAUSD purchased 1,000 video conferencing bars from CDW Government, LLC, a technology provider for state and local governments, for $8.5 million.

Amazon

$2.0 million

As online learning extended beyond the few weeks that many were expecting, it became clear that some households had multiple students and adults working at home. Headphones were a solution to help students block out the noise of a busy home to focus on their studies. About a month into the pandemic, LAUSD purchased 131,000 pairs of headphones for $1.9 million.

Mergent

$8.1 million

In December, the district spent $8.1 million for 490,000 headphones, enough for a pair for every student.

Edgenuity

$6.7 million

LAUSD opened up summer school to all students for enrichment courses, like guitar lessons and language classes, in addition to classes where students can make up credits. About 100,000 or about a quarter of the district's students enrolled in summer school. The district paid for a platform called Edgenuity for credit recovery for 30,000 high school courses and 40,000 middle school courses, according to the data. It's a software program that the district has used for years. The district also used the program as classes turned online and continues to use it in its online independent study program.

Verizon

$6.1 million

The district agreed to pay Verizon up to $4.6 million in March 2020 for mobile broadband services and devices. It later paid another $1.5 million for additional service and devices.

IVCi

$4.3 million

Audio visual company IVCi sold 5,000 video conferencing bars for $4.3 million.

T-Mobile

$3.7 million

The first purchase the district made was to increase its contract with T-Mobile for mobile broadband and devices by $500,000 to $750,000. In March 2020, it paid a total of $2.4 million and later made an additional $1.3 million payment.

Discovery

$3.1 million

The district purchased a districtwide licensing agreement.

Reading Horizons

$3 million

The district bought a license for the training and curriculum tool software for teachers teaching science.

Rosetta Stone

$3 million

The district bought licenses for 100,000 students from the language software company.

Microsoft

$2.3 million

The district described this purchase as "various applications." Microsoft developed an app called the Daily Pass that must be scanned for each student and staff that enters a campus. That contract was for gratuitous services.

Nearpod

$2 million

The district purchased a license for the instructional platform for teachers.

Crayon Software Experts

$1.7 million

LAUSD paid Crayon Software Experts, a software asset management managed services company, for Microsoft Power Apps licenses to implement its COVID vaccination program.

IXL Learning

$1.7 million

The district bought site licenses for 300,000 students from the integrated learning platform that supports personalized learning in math, English language arts, science, social studies and Spanish.

Blackboard

$1.2 million

The district purchased a districtwide enterprise license for the online learning platform for additional teacher to student notification functions.

Zoom

$1 million

The tool that many of us became familiar with during the pandemic, the district spent about a half million on software licenses for 66,500 employees, 500,000 students and 2,000 others.

Newsela

$995,000

Elementary schools purchased licenses for Newsela, a literacy-focused startup with content in English and Spanish.

Renaissance Learning

$995,000

The district bought licenses for Renaissance Learning, a math and reading software.

Edpuzzle

$730,000

LAUSD bought a districtwide license for Edpuzzle, which teachers can use to make interactive videos.

HopSkipDrive

$500,000

Pasadena start-up HopSkipDrive, an ridesharing company for students, was paid $500,000 to take students to and from COVID-19 testing sites.

What’s New from Waymo 🚗 and Snapchat 👻

🔦 Spotlight

Happy Friday, LA!

Image Source: Waymo

In case you’ve been cooped up indoors or haven’t had a chance to leave the office this week, you might have missed the latest buzz—Waymo’s self-driving cars are now cruising all over LA! That’s right—Waymo One, the autonomous ride-hailing service, has officially expanded citywide, now covering nearly 80 square miles of Los Angeles. After months of testing and a waitlist, Angelenos can now book rides 24/7 in areas stretching from Santa Monica to Hollywood to the USC neighborhood. Early feedback has been overwhelmingly positive, with passengers rating the service 4.7/5. Riders are praising the smooth, safe experience—making it a game-changer for getting around the city, whether it’s for work, errands, or leisure.

Image Source: Snap

Meanwhile, Snapchat is stepping up its game with new features in its Family Center designed to boost family safety and connectivity. Parents can now request their teens' live location on Snap Map, stay informed about their location-sharing settings, and set travel notifications to get alerts when family members arrive or depart from key locations like home or school. These updates give families more control and peace of mind in managing their digital interactions.


🤝 Venture Deals

LA Companies

  • Camouflet, an AI-driven platform specializing in real-time pricing optimization, has raised a $3M Seed funding round from private investors to enhance its services. - learn more
  • Chaos Industries, a defense tech company specializing in advanced detection and monitoring systems, raised a $145M Series B funding round led by Accel to accelerate its development of critical national security technologies. - learn more
  • Radiant, a company specializing in advanced nuclear microreactors, raised a $100M Series C funding round led by DCVC. The funds will be used to complete the Kaleidos Development Unit and conduct testing at Idaho National Laboratory's DOME facility, aiming to bring factory-built microreactors to market. - learn more
  • Mundial Media, a company focused on contextual marketing for multicultural audiences, raised a $1.5M Pre-Seed extension round led by new and existing investors, with the funds aimed at advancing their Cadmus AI technology and expanding digital advertising offerings. - learn more

LA Venture Funds
  • Joyful Ventures participated in a seed funding round for Meatly, a UK-based company specializing in lab-grown pet food, though the exact amount raised has not been disclosed. - learn more
  • B Capital participated in a $200M Series C funding round for Writer, a full-stack generative AI platform that helps enterprises deploy secure and reliable AI solutions to address critical business challenges. - learn more
  • LFX Venture Partners participated in a US$30M Series C2 funding round for UniUni, a company transforming last-mile delivery for e-commerce through technology, and plans to use the capital to improve its platform and rapidly grow its operations. - learn more
  • Composition Capital participated in a $20M Series B funding round for Arbolus, an expert insights platform that connects investors and consultants with subject matter experts, to support Arbolus's expansion into the U.S. market - learn more
  • Type One Ventures co-led a Series A funding round for Lunar Outpost, a company specializing in lunar surface mobility, commercial space robotics, and space resources; the funds will support their active programs. - learn more
  • Trousdale Ventures participated in a $29M funding round for Starfish Space, a Seattle-based satellite servicing company that will use the funds to develop and launch its Otter spacecraft, designed to extend the operational life of satellites in geostationary orbit. - learn more
  • Plus Capital participated in a $20M Series A funding round for OneSkin, a San Francisco-based biotech company specializing in skin health treatments, with the funds aimed at expanding research, developing new formulas, and growing its presence in the anti-aging skincare industry. The company will also invest in its team and explore new sales channels. - learn more
  • Starshot Capital participated in a $10.5M Series A funding round for Ecolectro, a New York City-based green hydrogen company, to support the development of its scalable electrolyzer technology and make green hydrogen more accessible. - learn more
  • Navitas Capital participated in a $37M Series B funding round for SwiftConnect, a company that provides connected access solutions for buildings and spaces, to expand its network, scale operations, and support new product initiatives. - learn more
  • Griffin Gaming Partners led a €17M Seed funding round for BIT ODD, a Finnish gaming studio focused on creating mobile games that prioritize creativity and emotional depth over finance-driven metrics. - learn more
  • The K Fund participated in a $20M funding round for Homethrive, a caregiving solutions platform, and the funds will be used to help expand its AI-driven care navigation, improve personalized support, and enhance digital tools to increase engagement across various payer populations. - learn more

        LA Exits

        • Farm Dog, a Los Angeles-based company that provides a platform with tools to help agronomists streamline their work—offering features for field scouting, document management, and data integration to enhance productivity in agriculture—has been acquired by FarmQA. - learn more

                Download the dot.LA App

                Wonder Dynamics: Redefining the Animation Landscape
                Wonder Animation

                🔦 Spotlight

                Happy Friday, LA!

                Wonder Dynamics, a Los Angeles-based company founded by Tye Sheridan and Nikola Todorovic, has launched Wonder Animation, a beta feature that is poised to transform the landscape of video production. Acquired by Autodesk in May, Wonder Dynamics is leveraging this innovative tool, which harnesses artificial intelligence to turn standard video footage into captivating 3D animated scenes, making sophisticated animation techniques more accessible to filmmakers of all budgets.

                Wonder Animation allows creators to shoot from multiple angles, with the AI reconstructing these shots into a dynamic 3D space. This functionality enables filmmakers to seamlessly blend live-action scenes with interactive virtual environments while preserving original camera movements. Users can customize various aspects, including animations, characters, lighting, and camera tracking data, and the tool integrates smoothly with popular software like Maya, Blender, and Unreal Engine.

                What sets Wonder Animation apart is its emphasis on artistic control. Unlike many AI tools that impose rigid outcomes, this feature empowers creators to guide their projects, ensuring that their unique style remains front and center.

                As the boundary between video and 3D animation blurs, Wonder Animation invites creators to experiment and innovate in exciting ways. This development marks a significant step forward in digital storytelling, democratizing access to high-quality visual effects and making sophisticated animation achievable for a broader range of filmmakers.

                With the global animation market projected to reach approximately $400 billion in 2024 and grow to over $587 billion by 2030—reflecting a compound annual growth rate (CAGR) of about 5%—tools like Wonder Animation are more relevant than ever. This growth underscores the increasing demand for animated content and highlights the necessity of innovative solutions to meet filmmakers’ evolving needs. For those looking to elevate their storytelling, Wonder Animation may just be the key to unlocking new creative horizons. According to Statista, this upward trend in the animation market emphasizes the significant opportunities ahead.


                🤝 Venture Deals

                LA Companies

                • Evite, an online platform enabling users to design, send, and manage digital invitations and eCards with tools for event organization and guest tracking, has received a strategic growth investment from Francisco Partners to accelerate innovation and expand its product offerings. - learn more
                LA Venture Funds
                • F4 Fund participated in a $4.1M Pre-Seed funding round for Further, a platform designed to help first-time homebuyers determine how much home they can afford by providing personalized insights on interest rates and lender requirements, giving users a clear view of their purchasing power. - learn more
                • Alexandria Venture Investments participated in a $10M Seed funding round for CrossBridge Bio, a company focused on developing advanced dual-payload antibody-drug conjugate (ADC) therapies, with the funds supporting preclinical development of its next-generation cancer treatments. - learn more
                • Clocktower Ventures participated in a $5.6M Series A funding round for Morada Uno, a startup in Mexico focused on making apartment rentals easier by providing a platform that connects tenants with landlords and simplifies processes like lease agreements and rent payments. - learn more
                • Skyview Capital participated in a $5M Series A funding round for Web3 chain game A-World, a tower defense battle game set in the metaverse on the BNB Chain, where players build hero towers to defeat waves of monsters. - learn more

                    LA Exits

                    • Drive Hospitality, a leading provider of personalized parking and hospitality services, including valet, concierge, bell services, parking management, and advanced technology integration, has been acquired by Propark Mobility. - learn more
                    • Vebu Labs, located in El Segundo and specializing in custom automation solutions for the food industry—including the innovative 'Autocado' system that automates the peeling, coring, and scooping of avocados to enhance operational efficiency—will be acquired by Serve Robotics. - learn more

                          Download the dot.LA App

                          Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀

                          🔦 Spotlight

                          Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉

                          ⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.

                          Image Source: Dodgers

                          💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.

                          Image Source: ChatGPT

                          🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.

                          From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨


                          🤝 Venture Deals

                          LA Companies

                          • Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
                          LA Venture Funds
                          • Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
                          • Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
                          • Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
                          • SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more

                              Download the dot.LA App

                              RELATEDEDITOR'S PICKS
                              Trending