Livestream Concerts Boomed During Lockdown. Are They Music's Future or Just a Pandemic Fad?

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Livestream Concerts Boomed During Lockdown. Are They Music's Future or Just a Pandemic Fad?

Takeaways

  • The music industry has increasingly turned to livestreamed concerts to try to make up for the massive losses sustained from the cancellation and postponement of in-person events due to the pandemic.
  • An ongoing experiment is underway to find and develop the best technology and techniques for engaging fans and convincing them to pay for digital shows.
  • Some themes are emerging in what works, what doesn't, and what's coming next.

Post Malone and his bandmates donned women's dresses while livestreaming a Nirvana tribute. British artist Yungblud livestreamed a performance reminiscent of a variety talk show. And Linkin Park's lead singer Mike Shinoda created a series of albums developed entirely in collaboration with his digital followers on Twitch.

Welcome to the new era of live concert-streaming.


With the pandemic effectively vaporizing the in-person concerts business, hamstrung artists and venues seeking alternative ways to engage fans have turned to livestreaming.

Although a livestreamed show cannot completely replicate an in-person concert, the medium also presents artists an untapped creative outlet – and a new challenge: to convince their fans that ticketed shows are worth the price of admission.

"These platforms have no filter. You're not hiding behind a stage full of pyrotechnics and a carefully crafted public messaging or marketing veneer; it's just you," Tim Westergren, founder of Bay Area-based streaming platform Sessions Live and former co-founder of Pandora, told dot.LA.

It's a high-stakes challenge, as many artists have grown to rely on live performances for the majority of their income.

And as the pandemic runs its indefinite course, many companies are jockeying to provide artists, their teams and a music industry at large striving to stay afloat with the next generation of livestreaming infrastructure.

What has emerged is a vast, ongoing experiment to find the best way to engage fans and convince them to pay.

Rapper, singer and songwriter Swae Lee performs on LiveXLive.Courtesy of LiveXLive

Born of Necessity

Livestreaming didn't receive serious attention or investment before the pandemic, not least because the in-person concert business was booming. It wasn't until Q3 of this year that concert trade magazine Pollstar even began tracking livestreaming data.

But COVID-19 dealt the concerts business a serious sucker punch. Pollstar forecast in April that artists, concert venues and labels were set to lose nearly $9 billion in revenue if live concerts didn't resume in 2020.

By August, Beverly Hills-based concert promoter Live Nation had reported a 95% decline in year-over-year concert revenues.

Following a frantic period of shutdowns, reopenings and weighing options, the music industry has realized that live concerts won't be back anytime soon. It is now scrambling to figure out how to make livestreaming work.

"There was some shellshock early on," said Prajit Gopal, founder of L.A.- and NYC-based LoopedLive, a streaming platform specialized in combining its 'digital venue' with a patented form of one-on-one digital meet-and-greets. "Over the last month or so, everybody is diving into it."

LiveXLive, for instance, a sprawling NASDAQ-listed music company based in West Hollywood, has amped up its livestreaming shows by 289% over the last six months compared to the same period in 2019.

Greg Patterson, who'd previously been head of music at Eventbrite, told dot.LA that he saw L.A.-based Veeps is "one of two or three companies that changed really quickly" in response to the pandemic, spinning up its first livestreamed show in March. Patterson joined Veeps in May to help the company develop its livestreaming business to complement its pre-existing suite of tools for 'long-tail artists,' such as direct-to-fan ticketing.

"Since then, there's been what feels like another company every 30 seconds," Patterson said, noting that the field remains very fluid. "It feels like the early 2000s startup period, where there were no rules."

"It's absolutely the wild West," said music industry veteran Stephen Prendergast. "To make it work we need people coming up with ideas and tech to make it more compelling; it can't be a flat, one-screen dimension."

In other words, artists sitting in their bedrooms and broadcasting on Instagram and Facebook won't cut it.

Image courtesy of Veeps

More Than a Concert

New solutions have sprung up to do what concerts do best: put fans in the same space as the bands they love. But because a digital show has its limitations, there are also ongoing efforts to provide fans with online experiences that they wouldn't find at a traditional concert.

"I always say, 'do things in digital that you can't do in the real world'," LiveXLive President Dermot McCormack told dot.LA.

Many streaming services have started to provide coaching services to help artists exploit the unique opportunities a digital platform affords, and increasingly so as data comes in showing what works and what doesn't.

"If you do the same thing over and over again, people won't want to tune in," Gopal, LoopedLive's CEO, told dot.LA. When his company hosted a livestreamed show for the cast of "Hamilton," the performers used LoopedLive's private meet-and-greet feature for more than 'Hi, how are you.' Lin Manuel-Miranda, for instance, regaled fans with freestyle raps about a topic of their choice, and some cast members gave quick dance lessons.

During Grammy-winner Brandi Carlile's Veeps stream in early October, she and her band paused the show for a 30-minute fan Q&A that spanned topics from whether the band ever gets on each other's nerves to how life has been during the quarantine and the status of Carlile's forthcoming book. The band then obliged a fan's request to sing happy birthday to her daughter.

McCormack pointed to a 20-minute Q&A one artist hosted in the middle of a LiveXLive-hosted performance. "The fans lapped it up," he said. "We had to switch off the comments, they were moving so quickly."

Fans also seem to like when artists lean in to the sort of unmediated intimacy that accompanies livestreaming. "Artists'll play a song and go 'fuck, let me start again' – fans love that; in comes a basket of tips when that happens. It's about relatability and connection," said Westergren.

For K-Pop artist James Lee, "there's definitely a rush" that comes with livestreaming. Lee, who has performed on Sessions, told dot.LA that, "I have not been on stage in over a year. [Streaming] feels very intimate. There is more of a burden because nobody is in the room with you and everything depends on me."

Linkin Park's Mike Shinoda took that intimacy to another level with his three-volume album, "Dropped Frames." Shinoda's fans on Twitch suggested themes and lyrics that he transposed into songs, some of which even included fan-submitted vocals.

More such experimentation is likely to come. DICE general manager of North American operations Shanna Jade Vélez told dot.LA she is "expecting to see a lot more innovation when it comes to interactivity." The company began operating before the pandemic as a live-ticketing discovery platform, available in seven countries. It has since streamed over 4,000 shows and sold tickets in 145 countries.

K-Pop megastars MonstaX perform on LiveXLive's platform. Courtesy of LiveXLive

Putting on a Show

Live chat has become a regular feature of livestreamed concerts, enabling concertgoers to message one another. Mandolin offers private chat rooms for groups of fans to congregate; the Indianapolis-based company launched in response to the pandemic and recently raised $5 million in seed funding.

Other startups are working to translate fan input – like clicking 'like' buttons – into a crowd roar that gets transmitted to musicians on the other side of the screen. FanTracks is one such service. It's also providing concertgoers a "director's chair" that gives them the option to toggle camera views. And it is one of many platforms experimenting with augmented reality to "transport" the performers to different locations.

Peter Shapiro, owner of several venues including the Brooklyn Bowl, is founder of Fans, a concert-streaming platform that transports audience members themselves, by allowing them to beam their video-feeds onto screens at venues where livestreamed performances are held. The technique is similar to how the NBA has allowed its fans to project their video-feeds onto screens in the stands.

Taking virtual transportation a step further, L.A.-based Wave renders musicians into digital avatars who interact with and perform for fans in otherworldly settings where the laws of physics are optional. The company raised $30 million in June and has hosted concerts by John Legend and The Weeknd. Produced in partnership with TikTok, the Weeknd's show reportedly attracted 2 million unique viewers.

Similar to Travis Scott's virtual concert series in April – where a giant, digital rendering of the hip-hop artist performed for over 27 million viewers across five shows hosted on Epic Games' Fortnite – Wave concerts are created with gaming engines and can be accessed by viewers via PC, gaming consoles or VR headsets. Unlike the Scott concert, however, which was pre-recorded and then rendered into Fortnite's virtual venue, Wave's avatars perform in real-time.

The TikTok live event featuring the Weeknd and Wave's technology brought aspects of gaming to live concerts.

Whether artists perform as an avatar or their unvarnished selves, Veeps has found that fans seem to prefer some degree of predictability on what they will see in a livestream. Similarly, Vélez said DICE is finding that fans want "a reason" to purchase a ticket. Some artists are turning to filming shows at big, deserted, "hauntingly beautiful" sets like churches and palaces, she said.

Patterson added that shorter shows, around 45 minutes, also seem to perform well, and noted that the user interface must be premium.

"It has to be on the level of watching a movie on Netflix or Disney Plus," the Veeps executive said. "If you mess it up, with so many other options, no one's going to want to come back."

Anyone who's shelled out $100 for a concert wouldn't necessarily point to the auxiliary pieces surrounding a show – the lighting, the refreshments, the bathrooms – as key to the experience. It's the performance that matters. But in the digital world, the areas ancillary to the performance are opportunities for virtual venues to distinguish themselves. So says L.A.-based streaming platform Moment House.

"If you make fans feel that they're part of this very elegant, premium and special place of a moment, we can make this a cultural phenomenon," Moment House co-founder Arjun Mehta told dot.LA. "We saw that thesis in our beta stage play out really nicely."

Moment House debuts this month, with a focus on user experience. Mehta developed the idea as a student in the inaugural class of USC's Jimmy Iovine and Andre Young Academy, a program that focuses on the intersection of design, engineering, management and communication. The company has raised a $1.5 million seed round led by Forerunner Ventures with investors including Scooter Braun, Troy Carter and actor Jared Leto.

DICE began operating before the pandemic as a global live-ticketing discovery platform. It has since streamed over 4,000 shows and sold tickets in 145 countries.Image courtesy of DICE

What's Next?

As this experiment continues and the culture and technology of virtual performances grows, we could be entering a new paradigm for musicians and their audiences.

"The early-90s internet is unrecognizable compared to what we have today and I think visual content and music will become unrecognizable to what we have now," Patterson of Veeps said.

One example of new technology that could open a world of possibilities is Aloha by Elk, which launches in beta this month and will allow musicians to play together in real time from hundreds of miles away.

"Playing together over the internet is something that musicians have been dreaming about since Skype: 'We can talk, but why can't we play?'" Michele Benincaso, founder of the Stockholm-based Elk Audio, the company behind Aloha, told dot.LA. The answer: latency.

The delay between someone speaking over Zoom or Skype and someone else hearing it is usually between 500 milliseconds and 1 second. The delay itself often fluctuates, a process known as "jitter." These issues make playing together on beat effectively impossible.

Solving these problems, as Aloha aims to do, would clear the way to a whole new path for livestreamed concerts.

"I could think of hundreds of examples for things that haven't been done today," said Sharooz Raoofi, a musician and tech entrepreneur who splits his time between L.A. and London. He is one of a few artists who's worked with Aloha prior to its upcoming beta launch.

"If you think about legendary festival performances, like when a guest vocalist jumps on stage and sings a track – that can't be done in digital unless it's latency free," Raoofi told dot.LA. "Even in the best of times, trying to get musicians together is tricky – more so if it's multiple bands. Doing that remotely without any latency could be a game changer."

For now, the maximum distance Aloha can manage is about 1,000 miles, enough to allow musicians in different countries to play together. As this technology develops and the distance grows, however, the possibilities may become virtually endless.

A Band-Aid or a Bridge to the Future?

Whether livestreaming becomes an enduring pillar of the music industry or fades into a fad once the pandemic dies down will depend on whether it can bring in enough money and deliver a new kind of experience.

"I was really struck that someone made $10,000 in a show with 300 people attending – and I can guarantee you there's not a room anywhere in the world that that artist could sell out," Westergren said of a performer who streamed on Sessions. "Historically there are only two ways for an artist to get paid like that. One is to spend years on a stage, grinding and touring. The other is to get plucked out of obscurity by the powers that be."

"Livestreaming can solve that, but only if you have monetization," he said.

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Sam Blake primarily covers entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA

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Impulse Space Just Raised $308M to Build the Roads in Orbit
Impulse Space

🔦 Spotlight

Happy Friday, Los Angeles.

Space may not have roads, but it still has a transportation problem.

Rockets have become remarkably good at carrying satellites beyond Earth. Once those satellites reach space, however, getting them from one orbit to another can still be slow, expensive or impossible.

Redondo Beach-based Impulse Space wants to change that, and investors are giving it considerably more fuel for the journey.

The company raised a $308M extension to its Series D, bringing the round’s total to $808M. The new financing comes just over three months after Impulse announced the initial $500M raise and pushes its total capital raised above $1.3B.

Existing investors 137 Ventures, BANNER VC, DFJ Growth, Linse Capital, Lux Capital and Valor Equity Partners participated in the extension. Impulse did not disclose a valuation, but convincing existing backers to commit another $308M so soon after an already substantial round is a strong signal of confidence in both the company and the market it is pursuing.

Founded by former SpaceX propulsion executive Tom Mueller, Impulse is building vehicles designed to move satellites and payloads after they have already reached space. If rockets are responsible for getting cargo off the ground, Impulse wants to handle what happens after delivery.

Impulse Space

Its Mira spacecraft is built for precise maneuvering, payload deployment and proximity operations in orbit. Helios, scheduled for its first flight in 2027, is a high-energy kick stage designed to move payloads from low Earth orbit to destinations such as geostationary orbit in less than a day. The company has also introduced an electric propulsion system called Electra and a rideshare service aimed at making higher-energy orbits more accessible.

Together, those products represent something larger than a collection of spacecraft. Impulse is attempting to build a transportation network for an economy that increasingly needs one.

That need is becoming harder to ignore. More satellites are reaching orbit, governments are prioritizing responsive space capabilities and commercial operators want greater flexibility after launch. A satellite that can change position, reach a different orbit or respond quickly to a new mission is significantly more useful than one permanently tied to its original destination.

The U.S. government is already putting Impulse’s thesis to work. Helios was selected for the U.S. Space Force’s National Security Space Launch Phase 3 Lane 1 program, making it the first upper-stage prime awarded a position in the program. Impulse also received a $28M contract extension to provide two Mira spacecraft for additional Space Systems Command missions.

The company says its headcount has more than doubled over the past year as it expanded its facilities in Redondo Beach, Mojave, Boulder and Washington, D.C. The new capital will support further hiring, product development and facility growth as Impulse works to serve commercial, civil and defense customers.

It also recently appointed its first chief financial officer, Adam Townsend, who previously helped guide Vizio through an IPO and its eventual sale to Walmart. The hire is another sign that Impulse is preparing for a more complex chapter, one defined not only by engineering milestones but also by a growing capital base, government contracts and large-scale operations.

That is where this announcement becomes more interesting than its considerable price tag.

Impulse has already shown that Mira can operate in space. Now it must prove that it can turn several ambitious vehicles into dependable infrastructure. The difference between a promising spacecraft company and a transportation network is repetition: more missions, more customers and systems that work reliably enough to become part of how the space economy operates.

An $808M round gives Impulse the resources to pursue that vision. It also raises the expectations attached to it.

For Southern California, the financing reinforces the region’s role in the new space economy. Los Angeles helped build the original aerospace industry, and a new generation of companies is now developing the vehicles, factories and infrastructure intended to support life beyond the launchpad.

Impulse Space is tackling what may be the next big bottleneck. Getting to space is only the beginning.

Someone still has to get you where you are going.

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

🤝 Venture Deals

    LA Venture Funds

    • Riot Ventures co-led EnduroSat’s $205M funding round alongside Atreides Management, with participation from GV, Founders Fund, Lux Capital, the European Innovation Council and other investors. The Bulgarian space company will use the capital to open a high-volume satellite factory in the U.S., build a major European space and defense hub and scale production of its standardized spacecraft. - learn more
    • Upfront Ventures and M13 participated in Ayble Health’s $16M Series A, led by Neon and joined by Unum Ventures, Cleveland Clinic Ventures, DigiTx and Accomplice. The virtual-care company will use the funding to expand its AI-enabled clinic for chronic digestive and autoimmune conditions across national health plans, major employers and benefits platforms, bringing its total capital raised to more than $27M. - learn more
    • Blue Heron Ventures participated in Voxela’s Series A, led by Delight Ventures and joined by SOMPO Growth Partners, Happiness Capital, Archetype Ventures and ALL STAR SAAS FUND, bringing the eldercare technology company’s total funding to approximately $13.2M. Voxela will use the capital to expand hiring and develop new AI capabilities for its VCare platform, which helps care facilities monitor residents, prevent incidents and automate administrative work such as documentation and reporting. - learn more
    • Clocktower Technology Ventures participated in Mainstay’s more than $18M growth round alongside new investors Parker89, Stackpoint, Alpaca VC and FJ Labs, as well as returning backers Khosla Ventures and Era Ventures. Mainstay also acquired AI-powered listing platform Truelist and will use the funding to bring its real estate data, pricing and automation infrastructure to more brokerages, agents and smaller investors. - learn more
    • Amboy Street Ventures participated in Evvy’s $40M Series B, led by Catalio Capital Management and joined by new and returning investors including Rethink Impact, Muse Capital, Labcorp Venture Fund and General Catalyst. Evvy will use the funding to expand its AI-powered women’s health diagnostics and care platform, beginning with fertility, while growing distribution through physicians and strategic partners. - learn more
    • Second Sight Ventures participated in Fin.com’s $20M seed round, led by Expa and Uber co-founder Garrett Camp, with backing from Coinbase Ventures and other investors. The payments infrastructure startup will use the funding to expand its cross-border network through additional acquisitions and plans to acquire a bank within six months. - learn more
    • Clearlake Capital, Mantis Venture Capital and Sound Ventures participated in Factory’s $200M funding round, which valued the AI software development company at $5B and brought its total funding above $400M. Factory will use the capital to accelerate research, product development and global expansion for its platform, which enables enterprises to build, manage and improve software using autonomous AI agents. - learn more
    • Navitas Capital led Scaffold’s $15M seed round, with participation from D.R. Horton, Pulte Homes, Builders FirstSource and other construction-industry investors. The Austin startup will use the funding to expand its engineering team and broaden its AI-powered platform, which connects homebuilders, contractors and suppliers to automate scheduling, purchase orders and other coordination work. - learn more
    • Halogen Ventures led it’s electric’s oversubscribed bridge round, joined by Wisdom Ventures, Future Communities, E8 Angels and other new and returning investors, bringing the curbside EV-charging startup’s total funding to $15M. The financing will support its rapid expansion, including a New York City contract to install hundreds of locally manufactured chargers across all five boroughs over the next three years. - learn more
    • Matter Venture Partners participated in Delos Data’s more than $100M funding round alongside Matrix, Playground Global, Socratic Partners, Capricorn’s Technology Impact Fund and IAG. The Palo Alto startup will use the capital to expand its engineering teams and accelerate development and sales of its Nonstop AI infrastructure, designed to reduce network bottlenecks and improve the speed and efficiency of AI inference. - learn more
    • Mantis Venture Capital and Gold House participated in A Vinyl Bar in Shibuya’s $5.5M pre-seed round alongside SV Angel, BoxGroup, Quiet Capital and other investors. Founded by Spotify’s former head of innovation, the startup is developing playful music apps that let users remix, manipulate and collaboratively create sounds rather than simply stream or generate songs. - learn more

    LA Exits

    • Headspace has agreed to be acquired by AI healthcare company Sword in a deal expected to close by the beginning of Q4 2026; financial terms were not disclosed. The acquisition will combine Headspace’s mental health brand, global consumer base and network of more than 15,000 providers with Sword’s AI-powered clinical platform to offer more personalized and continuous care. - learn more
    • Nasty Gal was acquired by WSG Brands for an undisclosed amount, adding the women’s fashion label to a portfolio that also includes Von Dutch and Allbirds. WSG plans to expand Nasty Gal internationally and into categories such as footwear, beauty, activewear and accessories while growing its direct-to-consumer, wholesale and licensing businesses. - learn more
    • Converse Health was acquired by healthcare AI company Hello Patient for an undisclosed amount, bringing its back-office automation technology into the buyer’s platform. The combination will allow medical practices to use one system for patient communications and administrative work such as referral processing, chart follow-ups, authorization paperwork and medical records. - learn more

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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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