The Pandemic Has Changed the Music Industry Forever. Meet the LA Music-Tech Startups Poised to Reshape It.

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

The Pandemic Has Changed the Music Industry Forever. Meet the LA Music-Tech Startups Poised to Reshape It.
Image courtesy of Wave
  • The pandemic has ravaged the music industry, but music-tech companies are poised to drive its growth into an industry where a music company is much more than music.
  • Los Angeles is home to a bustling ecosystem of startups empowering musicians through a variety of next-generation technologies.
  • The Takeaway: Innovations in music-tech offer new tools to independent artists to help them create music, manage money, reach fans and share their music in vivid, immersive ways.

The pandemic has hushed the music industry. Throbbing concert crowds have disappeared, artists' sales have plummeted and musicians' overall income has fallen precipitously. But a handful of Los Angeles-based tech startups are providing musicians with everything from socially-distanced collaborative recording to simplified back-office accounting.

"The L.A. music-tech scene is primed to drive this industry forward," says Ed Buggé, partner at L.A.-based entertainment law firm Hertz Lichtenstein & Young. "It's a hugely exciting time in the industry, with startup-driven disruption enabling new models for artists and media companies alike."

Buggé, who advises some of the world's leading tech and media companies, says the ecosystem of music-tech startups is poised to accelerate two big trends in the music industry.

One is the rise of independent artists. In 2018, indies – artists who own most or all of their material – earned 6.6% of total recorded music revenues. That's a 78% growth rate from 2015, which makes independent artists the fastest growing segment of the recorded music market. Entertainment research firm MIDiA says this change "could prove to be more impactful than even the rise of streaming."

The other trend startups are speeding up is the transformation of what a music company even is.

"Music is no longer just music," says Buggé, adding that audio is becoming inseparable from technologies spanning artificial intelligence, gaming, social media, as well as augmented and virtual reality.

Recording Studios at Home

Musicians today have far more access to high-quality production tools and capabilities than they once did.

Software packages like Logic Pro or Ableton have brought the recording studio's physical equipment and professional engineers right into an artist's living room, saving them thousands of dollars.

"In 2020, all you really need is the essentials – your phone, your laptop, and a good pair of headphones," says Americo Garcia, aka Boombox Cartel. Add in a good $100 microphone or two and an instrument and you've got a home studio.

"Back in the day you'd have to ship reels of tape and jump hoops and loops just to make a song happen. Nowadays you can email someone in Poland and say, 'hey man, let's start something,'" Garcia says. In addition to tools like Dropbox that enable file-sharing across the world, several companies have emerged to help musicians find and work with each other.

"If you think you need a label to blow up, you're wrong," Garcia says.

Meet Your Bandmates

Musicians' Jammcard profiles help them to collaborate

L.A.-based Jammcard has been called the "LinkedIn for musicians." Founded in 2017 by professional drummer Elmo Lovano, the company has nearly 10,000 members and has raised around $2 million from Quincy Jones, Twitch co-founder Kevin Lin and Lionsgate President Robby Melnick.

Lovano formed the company to streamline the process by which professional musicians find each other, rather than relying on word-of-mouth. He estimates that as many as 95% of Jammcard members are independent, and that their median income is around $70,000.

"A lot of the people that are on Jammcard are the people that support the big artists; Kendrick Lamar's not on Jammcard, but his entire band and crew are," Lovano says. "Sound engineers, stage managers, guitar techs – we like to say that it's for 'anyone that's on the bus or in the studio'."

Lovano says Jammcard is finalizing partnerships with Sony and Fender and has recently expanded its platform to enable digital payments to members for collaborating, performing and teaching. Jammcard also recently partnered with New York-based Splice, an online music production service that offers downloadable samples and plugins that make it "a lot more accessible and intuitive to start creating music," says Ankur Patel, Splice's head of corporate development. Jammcard's artists can host their sound samples on Splice and share in the proceeds.

Soundstorming is another L.A. company using tech to enable artistic collaborations. Users upload small segments of their self-produced audio files, allowing other members on the platform to provide feedback and even layer in their own bass grooves, vocal melodies, and drum beats to collectively compose a new track.

Build Your Own Label

Former UTA agent Milana Lewis created Stem Disintermedia in 2015 to "alleviate back office work so an artist can eliminate those costs and release content more easily."

Stem co-founder and CEO Milana Rabkin Lewis

As an agent, Lewis saw how the complexities of music copyright were depriving musicians of opportunities to make money. "The administrative work was too burdensome for any individual artist to do," she told dot.LA. Artists would give up and say, ''I'm just going to put it up for free'" on sites like YouTube and Soundcloud.

Stem has raised over $12 million in funding, including two rounds from L.A. firm Upfront Ventures. The startup also recently launched its own $100 million debt-financing arm to allow artists to borrow money against their existing catalogs.

Stem's interface helps artists and their managers track their finances

Create Music Group, another startup formed in 2015 that helps artists take control of their accounting and distribution, has a similar origin story.

"We realized the YouTube landscape was poorly mismanaged," recalls Sam Casucci, partner and senior vice president of digital strategy at Create, recently named the second-fastest growing company in the country in the annual Inc. 5000 list. Create employs about 120 people and serves over 10,000 clients – mostly indie artists and labels, the company says. "There was a lot of music and (rights holders) who weren't getting paid what they should be," Casucci says. Create has since built technology on top of YouTube's rights-management platform to help artists make money.

Create Music Group's Hollywood office

Independent artist and Create client Ray J told dot.LA, "They help you study everything that's going on and help you find money you might not have even known existed."

"When you sign to a major label you don't really get to see what's going on behind the scenes," says Ray J. "You can become your own record label now."

Create's dashboard to help musicians manage their copy rights

Get Paid

Elsewhere in L.A., Pex helps artists manage their monetization by following the data associated with their songs across the web. Wilson Hays, head of business development, says Pex monitors over 20 billion songs and videos on dozens of social media platforms.

The company indexes all that data – which comprises over three-times as much content as what's on YouTube, Hays says – and uses patented technology to allow the people behind the music to track and measure its online activity. It even allows artists to easily issue take-down notices if they wish.

Pex's song-tracking dashboard

"YouTube has Content ID and Facebook has Rights Manager, but outside those platforms, in the wild, you don't know how your content is being shared, moved, monetized, or pirated," Hays says. "We want to put control back in rights holders' hands."

That sort of control offers benefits to artists that they wouldn't necessarily have with a traditional label deal. One benefit is that payments come in faster. It also gives artists more freedom to manage their career trajectory.

And that freedom gives artists the choice in how they use the many emerging mediums by which they can share their music.

Reach an Audience

An artist who wants to interact directly with fans can post their songs on a host website like YouTube, TikTok, Soundcloud or Bandcamp and chat with their audiences on social media channels. But these platforms have limitations.

A post on Instagram, for example, carries no guarantee that it will reach an artist's fans; most followers do not see every post. Artists must also contend with the fact that the interests of social media platforms are not always aligned with their own.

Jake Udell, a music manager and entrepreneur with a reputation for digital wizardry, recognized social media's limitations early on.

"The thing I kept noticing was that the algorithms were making it really challenging for us to reach our audiences," Udell told dot.LA. "I didn't think there was a fix, though. We'd given up and sort of ceded our audiences to these social platforms."

Then he conducted an experiment. Tickets went on sale for an artist of his who had about twice as many fans in L.A. than New York. Not surprisingly, about twice as many purchases came in for the L.A. shows than the New York ones. Udell then decided to collect around 1,000 phone numbers from fans at a New York show.

"We found some random texting service online and just blasted them out," he recalls. "What happened next changed the way I thought about building audiences online forever."

7,000 tickets to two New York shows immediately sold out. Udell wrote about it on his blog, which is how he met Matthew Pelltier, chief executive of L.A.-based Community.com, where Udell is now head of activation.

"The algorithm has not really been an enabler" for musicians, Udell says. "What if we could just meet the fans where they're already at?"

That's exactly what Community does, he says, by providing artists (and other "Leaders") a SaaS platform for exchanging text messages with fans en masse.

"I think about it like this," Udell says. "How many social platforms have you joined over the last 10 years? Versus how many times did your phone number change?...The phone number is a true atomic unit of identity; it's not going anywhere."

What's more, Udell says 98% of text messages get opened in the first three minutes.

"On other platforms there's a guarantee of instant publishing, but there's no guarantee of instant distribution," he says. Whereas with Community, "the idea that you will always be able to reach your fans, this community, via text, is a really empowering thing not just for you personally but for your business."

Big-timers like Jennifer Lopez use Community, as do aspiring local band types. Prices depend on audience size. One feature: ability to segment fan outreach so that, for instance, a band coming to a specific town can message only the locals – "See you at the show tonight?"

Tour Virtually

Wave turns performers into digital avatars and puts them on virtual stages where they can entertain and interact with fans, who tune in via VR headset, gaming console or web browser.

"We started the company four years ago to help musicians make money," Wave chief executive Adam Arrigo told dot.LA. "We've been touring musicians and we know how hard it is."

Wave has now hosted over 50 events. Its recent concert featuring The Weeknd in partnership with TikTok reportedly drew a digital audience of over 2 million fans.

A Wave concert of Swedish band Galantis

Arrigo says his former role as a designer for the Rock Band video game franchise showed him how novel technologies can empower musicians.

"From working on that game I learned that when you create new experiences you can create additional revenue streams for the industry," he says.

Building on a blueprint established in part by L.A.-based Brud (whose digital influencer and singer Lil' Miquela currently has 2.6 million Instagram followers and attracts millions of views on YouTube), Strangeloop Studios is currently designing a cast of animated characters of its own.

Co-founder and chief executive Ian Simon, who is also on the creative team at Wave, says, "the long-term vision is to be a studio; to bring in storytellers and visual artists and creators to tell stories using these characters. The characters are a medium in themselves."

A character from Strangeloop Studios' virtual artist label, Spirit BombStrangeloop Studios

Those characters present musicians with scalable creative opportunities. "You can play the same show with the same character in multiple places at the same time," Simon says. "They're vessels for human collaboration – multiple musicians contributing songs, various visual artists creating content and fans informing the narrative and aesthetic trajectory of the characters."

"People are already listening to music on screens, even if the screen isn't really being leveraged," says Simon, whose small team includes former visual designers for megastars like Kendrick Lamar and Flying Lotus.

Immersive Music

ViRvii – a portmanteau of virtual, visual, and immersive – gives artists a new "paintbrush" for creating immersive fan experiences, says founder Juan Dueñas, who formerly founded My Mixtapez and was an early user of Oculus' development kit.

Dueñas says ViRvii will allow fans to "hang out" inside The Beatles' Yellow Submarine while the album plays in the background, for instance. Contemporary artists will be able to design VR experiences to accompany their releases. Despite the high-tech approach, Dueñas says he wants users to be able to get a homespun feeling of "sitting around a stereo or record player and smoking a joint and drinking a beer with friends and listening to your favorite album."

ViRvii's continuous VR world will immerse fans into albums

Formed in 2019 and now with a staff of 30, the L.A.-based startup recently announced a partnership with Facebook and its Oculus VR subsidiary.

Splashmob gives performers control of their audience's cell phone screens. They can preprogram the screens of anyone who opts in with features like polls, audiovisual media to accompany the main show, and merchandise sales portals. The screens can also be controlled in real-time, not unlike an effects technician manipulating phone screens rather than lights and sound.

Founder Blaise Thomas was formerly a sound engineer in London, where his work in recording studios and live performances got him thinking about how to enhance concerts, whether in-person or streamed.

Splashmob's control panel gives performers the power to curate audience members' phone screens

"The flashlight on the phone is all well and good," Thomas says, "but how far can that go?"

Splashmob has collaborated with Dani Van de Sande and her L.A. startup, ULO, which along with Splashmob and Strangeloop was part of the 2020 Techstars Music cohort.

"Imagine you're wandering around Melrose Avenue on your way to dinner," Van de Sande writes, "and out of the corner of your eye you spot a bright, iridescent light. It looks otherworldly, like something from another universe."

These cocoon-like walk-in installations, called ULOs ("unidentified landing objects"), offer immersive, interactive experiences for the adventurous souls who enter. ULO plans to dot them around city-scapes.

"We're another avenue where artists can do something beyond releasing a video – by creating an experience for people," says Van de Sande, who formerly worked on augmented reality at L.A.-based Snap.

The Pandemic Has Changed the Music Industry Forever. Meet the LA Music-Tech Startups Poised to Reshape It. StillVika

These new visually oriented channels for sharing music may help to shrink the gap between the ear and the eye that Spotify founder Daniel Ek often invokes when he describes the growth potential for his company. Why, he has publicly wondered, is the total video market worth around 10-times more than audio, even though consumers spend about equal time with each?

Get a Side Gig

Cameo offers anybody with over 20,000 Instagram followers the opportunity to build a profile on its platform and set a price for which they will record a personalized video message. The company was formed in Chicago, but its chief executive Steven Galanis recently moved to L.A. With his move, Cameo's center of gravity has shifted.

"L.A. is the best place for me to be for Cameo right now," Galanis recently told dot.LA. "I've been focused on being the tech company to work for in Chicago and I think that's mission accomplished in many ways. Now my objective is to make Cameo that place in L.A."

L.A. was once the destination for artists with a guitar case and a dream. Now, many of them can pursue those dreams from home. Music-tech companies, however, are flocking in.

"It's not an accident that Techstars Music is in L.A.," says Bob Moczydlowsky, who runs the accelerator, which recently opened its 2021 cohort application, with an emphasis on attracting a diverse candidate pool. Moczydlowsky attributes L.A.'s centrality in this flourishing wave of music and tech innovation to two main factors. First is the access to an ecosystem of artists, managers, labels and touring companies. Second is the venture money in Silicon Valley.

"L.A. is less than an hour from the money and down the street from the culture," he says.

The growing entrepreneurial energy in L.A. looks set to provide Angelenos a front-row seat to a new, lasting stage for entertainment technology innovation.

---

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

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How Replify Found Its Niche and an Acquirer

🔦 Spotlight

Hello LA,

This week’s startup story began three years ago with an AI assistant built for almost any small business. It ended, or perhaps graduated, with an acquisition by one of the fitness industry’s largest technology providers.

ABC Fitness has acquired Replify, an AI platform that manages customer communication for gyms and wellness businesses across phone, text, email and chat. Its virtual agents can answer questions, qualify leads, schedule tours and classes, follow up on missed calls and run outbound campaigns. Financial terms were not disclosed.

Before Replify found its footing in fitness, it was HeyLibby, a general-purpose AI assistant founded in 2023 by former Zillow colleagues Spencer Rascoff, Tony Small and Anna Rodriguez. The company was incubated inside Rascoff’s 75 & Sunny Labs and initially set out to help small businesses turn incoming messages into qualified leads.

That broad vision gave HeyLibby a large potential customer base, from real estate agents and contractors to hairstylists and event planners. But as the team searched for product-market fit, one industry’s problem stood out. Gym and wellness employees were often too busy helping customers in person to answer every call, text or email, leaving prospective members waiting and potential revenue on the table.

That insight reshaped the company. HeyLibby narrowed its focus to fitness and wellness, raised a $4.5M seed round in 2025 and later rebranded as Replify. It went on to work with brands including Gold’s Gym and UFC Gym, proving that its AI agents could do more than answer routine questions. According to the company, customers have captured up to 10 times more leads and shortened sales cycles from roughly 30 days to as little as three to five days.

ABC Fitness became a natural next step. The company provides software to more than 30,000 fitness businesses serving over 40 million members worldwide. By adding Replify to its platform, ABC can offer gyms an always-available AI front desk while bringing Replify’s technology to a much larger global customer base.

Replify’s journey offers a useful lesson amid the rush to build AI products for everyone. The company began with a broad promise, identified a customer with a specific and expensive problem, and built deeply around that need. Gym owners did not need another flashy chatbot. They needed someone to answer the phone when the front desk could not.

Sometimes the smartest AI strategy is simply picking up the call.

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

🤝 Venture Deals

    LA Companies

    • Dimension raised a $1.65M seed round backed by Science Inc., UpscaleX, OpenSky, Long Run Capital, 1864 Fund and others. The profitable social-commerce company will use the funding to launch Seller OS more broadly, an agentic AI platform that automates TikTok Shop operations for brands and agencies. - learn more
    • Procode raised a $10M Series A led by Health Velocity Capital, bringing its total funding to $14M. The AI-powered medical billing company will use the capital to acquire two additional billing businesses and expand its platform beyond plastic surgery and dermatology into all surgical specialties and ambulatory surgery centers. - learn more
    • Antares raised $470M in Series C financing, including $370M in equity and $100M in debt, in a round co-led by Paradigm and Caffeinated Capital. The nuclear energy company will use the capital to commercialize its autonomous microreactors, with an electricity-producing model planned for 2027 and initial deployments at U.S. military installations beginning in 2028. - learn more

    LA Venture Funds
    • Wilshire Lane Capital participated in Ellis’ more than $10M seed round, which was led by First Round Capital and included Kearny Jackson, 645 Ventures, Harlem Capital, Khosla Ventures and others. Founded by Cadre founder Ryan Williams, Ellis has emerged from stealth with an AI-native operations platform that helps private credit managers reconcile fragmented data and automate workflows such as portfolio monitoring, investor reporting and compliance; the funding will support team growth and further product development. - learn more
    • Rebel Fund participated in Dili’s $15M Series A, led by Khosla Ventures, bringing the AI compliance company’s total funding to $21.7M. Dili helps energy, construction, infrastructure and manufacturing companies identify compliance issues by reviewing project data in real time, and will use the funding to expand its team and broaden its platform into additional audit and waste-detection workflows. - learn more
    • B Capital led ChipAgents’ $60M Series A2, which brought the semiconductor AI startup’s expanded Series A financing to $134M. ChipAgents will use the funding to scale customer deployments, expand its engineering and go-to-market teams and further develop its AI platform, which automates complex chip design and verification workflows. - learn more
    • StoryHouse Ventures participated as a returning investor in Henry AI’s $16.5M Series A, led by FirstMark Capital with backing from Thomson Reuters Ventures, Y Combinator and others. The commercial real estate AI company will use the funding to expand its engineering and product teams and scale Henry Deal, a platform that automates underwriting, offering materials and other back-office work throughout a transaction. - learn more
    • Walkabout Ventures and Bungalow Capital co-led Discern’s $10M Series A, bringing the company’s total funding to $17.5M. Discern provides a software-based registered agent service that automates state filings and compliance tasks, and will use the capital to scale its platform following fourfold annual recurring revenue growth in 2025. - learn more
    • Starshot Capital participated in Quercus Biosolutions’ oversubscribed $5M seed round, which was led by Serra Ventures and included several climate, agriculture and grower-backed investors. The agtech startup will use the funding to expand its pipeline of AI-designed proteins for fighting herbicide-resistant weeds, begin regulatory work and explore applications targeting fungi, insects and other crop pests. - learn more
    • B Capital co-led Flourish Health’s $26M Series A alongside F-Prime and Cherryrock Capital, bringing the youth mental health provider’s total funding to $46M. Flourish will use the capital to expand its psychiatrist-led, in-home care model nationwide, hire and train clinicians and further develop its AI-enabled platform for coordinating care. - learn more
    • Powerhouse Capital participated in European Technology Network’s $1.6M seed round alongside Axel Springer, a LADbible co-founder and angel investors from OpenAI and DeepMind. The London-based tech media startup will use the funding to open a larger studio, expand its team, launch a newsletter and increase its livestreamed programming from two shows per week to five. - learn more

    LA Exits

    • Saltair, the Los Angeles body-care brand founded by model and entrepreneur Iskra Lawrence, is selling a majority stake to private equity firm TSG Consumer. Financial terms were not disclosed, but the deal will support Saltair’s expansion across e-commerce, retail and new products, while Lawrence transitions into the role of chief community advocate. - learn more
    • Digital marketing agency GR0 plans to acquire Ultimate AI’s enterprise deployment division and use the team’s technology to launch a new company called GR0 AI. The platform will deploy AI agents across brands’ customer data, commerce and marketing systems to personalize outreach, recover abandoned sales and generate measurable revenue; financial terms were not disclosed. - learn more

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      From Uber to Atoms: Travis Kalanick’s $1.7 Billion Return

      🔦 Spotlight

      Hello LA,

      Nine years after his turbulent exit from Uber, Travis Kalanick is back with a new company, an enormous war chest and, apparently, some unfinished business.

      Los Angeles-based Atoms announced this week that it has secured a $1.7 billion equity investment led by Andreessen Horowitz, with a16z cofounder Ben Horowitz joining its board. Bain Capital, Fifth Wall, Uber and several other investors participated, while a roster of major banks, including Goldman Sachs, JPMorgan and Bank of America, are listed as debt partners.

      Yes, Uber itself is now backing the comeback of its famously ousted cofounder. Silicon Valley may preach disruption, but it has always appreciated a good redemption arc.

      Atoms is the culmination of the company Kalanick has spent the past eight years building largely out of public view. Formerly known as City Storage Systems, the parent company behind CloudKitchens, it is now bringing its businesses together under one ambitious umbrella: Atoms Food, Atoms Mining and Atoms Transport.

      The premise is that AI’s next major frontier will not be confined to screens, chatbots or software. Atoms wants to build what Kalanick calls a “computer for the physical world,” using software, sensors, robotics and AI to automate how physical goods are produced, stored and moved.

      That means tackling decidedly unglamorous but enormous industries such as mining, construction, food production and heavy transportation. Rather than betting on humanoid robots that can theoretically do everything, Atoms is focused on specialized machines designed to perform specific, economically useful jobs.

      In other words, the robot does not need a face. It needs a business model.

      For a16z, the investment is as much a bet on Kalanick as it is on industrial AI. In an essay bluntly titled “Travis Is Back,” Horowitz argues that Kalanick possesses the rare mix of technical range, endurance and sheer force of will required to drag old-line industries into a new technological era. The firm’s broader thesis is that robotics will eventually handle much of the repetitive work involved in making, moving and storing physical goods, creating a market potentially as consequential as computing itself.

      There is also some history being settled. Kalanick, Horowitz and Marc Andreessen nearly partnered during Uber’s early days but never completed the deal. In a new conversation about Atoms, Kalanick and Horowitz revisit that missed opportunity and the long road that brought them back together. Sixteen years later, the check is considerably larger.

      The scale of the investment is remarkable, but so is its location. Atoms is headquartered in Los Angeles, giving the city a front-row seat to one of tech’s boldest industrial AI bets. It also reinforces something increasingly evident across LA’s startup ecosystem: the next era of AI will not only be written in code. It will be built in kitchens, warehouses, mines, vehicles and factories.

      Whether Atoms becomes the operating system for the physical world or simply proves that even $1.7 billion cannot make atoms behave like bits remains to be seen. But Kalanick is taking another enormous swing, and this time, Los Angeles is where the comeback story begins.

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

      🤝 Venture Deals

        LA Companies

        • Hawthorne-based Andrenam raised an $18M Series A led by Upfront Ventures, with participation from Valor Equity Partners, Also Capital, First Round Capital and Long Journey Ventures, bringing its total funding to $30M. The maritime defense startup will use the capital to scale production of its sonar-equipped buoys and expand its AI-powered platform for detecting and tracking underwater activity. - learn more
        • Long Beach-based Bluecore Energy emerged from stealth with approximately $10M in oversubscribed financing led by Slauson & Co., with participation from Harlem Capital, Precursor Ventures, Hartbeat Ventures and others. The company is developing small modular nuclear reactors that can operate aboard floating barges and deliver zero-emission power to ports, data centers and other critical infrastructure. - learn more
        • Vikk AI raised $4.2M across a $700K pre-seed and $3.5M seed round, with backing from MagnaSci Ventures and several angel investors. The legal AI startup will use the funding to expand its consumer assistant, document tools and advertising platform that connects users with lawyers based on their needs and location. - learn more
        • Final Boss Sour raised $4M in strategic funding from Evolution VC Partners, The Angel Group, Mondelēz International’s SnackFutures Ventures and others, bringing its total funding to $12M. The gaming-inspired real-fruit snack brand will use the capital to expand into major retailers, including Walmart, Kroger, Target and 7-Eleven, while developing new products and collaborations. - learn more

        LA Venture Funds
        • Overture Ventures participated in Fluxco’s $26M seed round, led by 8VC and Congruent Ventures, alongside Trust Ventures, Koch Disruptive Technologies and others. The Austin startup uses AI to help companies source electrical transformers from more than 150 manufacturers, reducing a procurement process that can take months to just days. - learn more
        • Alexandria Venture Investments and Wedbush Healthcare Partners participated as returning investors in Crystalys Therapeutics’ oversubscribed $130M Series B, which was led by Frazier Life Sciences. The San Diego biotech will use the funding to advance Phase 3 trials and commercialization preparations for dotinurad, its once-daily oral treatment for gout. - learn more
        • Rebel Fund participated in Klaimee’s $5.5M seed round, led by FundersClub’s Alexander Mittal and backed by ex/ante, Pioneer Fund, Y Combinator and others. The San Francisco insurtech startup certifies and insures autonomous AI agents, helping businesses manage financial and liability risks that traditional cyber and technology policies may not cover. - learn more
        • M13 participated in Skyfall AI’s undisclosed funding round alongside Fidelity, Inovia Capital, Touring Capital, NextView Ventures and Garage Capital. Founded by former Microsoft researchers, the San Francisco startup is developing AI systems capable of making long-term decisions across finance, operations, marketing and other business functions, with the goal of building an autonomous enterprise. - learn more
        • Interlagos Capital led Beyond Reach Labs’ $10M seed round, with participation from TerraForge Capital, Off-Piste Capital, Y Combinator and Augur VC. The startup will use the funding to scale production of its deployable solar-array hardware for satellites at a new 16,000-square-foot facility in Brooklyn, with plans to achieve flight qualification by the end of 2026. - learn more

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          LA’s New Defense Startup Comes Out Swinging

          🔦 Spotlight

          Happy Friday LA,

          A new defense startup just emerged from stealth with one of the week’s biggest funding rounds and a mission built for the realities of modern warfare.

          Los Angeles-based Singularity raised an oversubscribed $80M Series A at a $400M valuation to develop low-cost air defense systems at scale. Khosla Ventures and Felicis led the round, with participation from AE Ventures, NEA, Long Journey, Harpoon, Menlo Ventures, Y Combinator and others.

          The company is targeting an increasingly lopsided problem: inexpensive drones and munitions can be produced quickly and deployed in large numbers, while the systems used to intercept them are often costly and difficult to manufacture at comparable scale.

          Singularity’s answer is to borrow from the automotive industry. Its manufacturing team, which includes talent from Tesla and Toyota, is building an assembly line designed to rapidly produce interceptors, while developing the hardware and software in-house. The broader team also includes veterans of SpaceX, Anduril and Lockheed Martin, along with military operators who have deployed air defense systems in combat.

          The company is already conducting multiple flight tests each month. Now it has $80M to prove that air defense can be manufactured more like cars and less like traditional military hardware.

          Whatnot Wants AI to Find Your Next Obsession

          The thrill of Whatnot is not always finding what you came for. It is stumbling into a live show and discovering something you suddenly need to own.

          Now the Marina del Rey-based marketplace is investing in AI to make those moments happen more often.

          Whatnot acquired Shaped, a machine-learning startup that builds real-time recommendation and search systems. Financial terms were not disclosed.

          Shaped founder and CEO Tullie Murrell and nearly a dozen engineers and researchers will join Whatnot, where Murrell will create and lead a new applied AI research group focused initially on discovery and personalization.

          The acquisition comes as Whatnot’s marketplace becomes much larger and more complicated. The company launched more than 35 new categories last year and over 45 during the first half of 2026. Cross-category purchasing is also up 170% year over year, suggesting users are increasingly willing to venture beyond the products that first brought them to the platform.

          Unlike a traditional online store, Whatnot’s inventory shifts constantly as sellers start and end live shows. That makes recommending the right product or stream in real time a particularly difficult AI problem.

          Whatnot is betting Shaped can help solve it. Because the longer shoppers keep discovering new interests, sellers and communities, the less likely they are to close the app.

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

          🤝 Venture Deals

            LA Companies

            • Senra Systems raised a $65M Series B co-led by Lowercarbon Capital and Interlagos, with participation from CIV and several other investors, bringing its total funding to more than $112M. The aerospace and defense manufacturer will use the capital to expand production of its software-enabled wire harnesses and open a third factory, following a recent expansion expected to increase monthly output from 1,000 harnesses to 10,000 by next year. - learn more
            • Intrinsic Power announced the first close of its seed round, with backing from Kyocera Ventures, Drive Catalyst, Boost VC and RPV Global; the company did not disclose the amount raised. The funding will support product development, engineering hires and customer deployments as Intrinsic commercializes its AI-powered platform for optimizing electricity use across commercial buildings, critical infrastructure and data centers. - learn more
            • Pasadena-based Linker Finance raised an additional $5M in seed funding, bringing its total seed financing to $8.7M. Existing investors Chingona Ventures, Ten One Ten Ventures, Audaz Capital and Angeles Investors returned for the round, alongside new strategic investor 22nd State Banking Company, with the funding earmarked for product development, agentic AI and expanded payment capabilities. - learn more
            • Corner Health raised $32.5M across seed and Series A financing, with its latest round led by Oak HC/FT and participation from First Round Capital and Zigg Capital. The company, which helps nurse practitioners launch independent primary care practices using an AI-powered operating platform, will use the funding to expand its team, improve its technology and enter additional states. - learn more
            • Cognify Health raised a multimillion-dollar seed round led by Game Changers Ventures, with participation from Westbound Equity and several individual investors. The company, which provides youth athletes with virtual concussion care within 24 hours, will use the funding to grow its team and enhance its platform and medical services. - learn more

            LA Venture Funds
            • Act One Ventures participated in logcat.ai’s $2.55M pre-seed round, which was led by Founders’ Co-op and included TheFounderVC, Shorewind Capital, Clayoquot Capital and Alumni Ventures. The startup is building an AI platform that helps engineering teams diagnose and fix complex software issues across Android and Linux-powered devices, including phones, vehicles and robots. - learn more
            • Plus Capital participated in Fora’s $60M Series D, which was led by Forerunner and Tactile Ventures and valued the travel platform at $1B. Fora will use the funding to expand its AI capabilities, enter new markets, grow into categories including cruises and flights, and continue hiring. - learn more
            • M13 led Rime’s $24M Series A, with participation from Corazon Capital, Unusual Ventures, Cadenza Ventures and Twilio Ventures. The AI startup will use the funding to develop faster, more natural voice models for enterprise applications, while M13 partner Morgan Blumberg will join its board. - learn more
            • Calibrate Ventures participated in Walden Robotics’ $300M seed round, co-led by Toyota and Deviation Capital, which valued the company at $1.1B. The robotics startup emerged from stealth with general-purpose robots designed to learn on the job and work alongside people in manufacturing and logistics environments. - learn more
            • Lasagna Ventures participated in Cyclops’ $20M Series A, which was led by Nava Ventures and also included Castle Island Ventures, Coinbase Ventures, Circle and Global PayTech Ventures. The stablecoin infrastructure company will use the funding to accelerate product development, expand its teams and global licensing, and grow its go-to-market operations. - learn more
            • MaC Venture Capital participated in Pure’s $8M seed financing, raised across multiple rounds led by Hidden Capital. The company will use the funding to expand its engineering and compliance teams and further develop its platform for verified, real-money peer-to-peer games. - learn more
            • Clocktower Technology Ventures participated in Feathery’s latest financing, which brought the company’s total funding to $30M, including its recently completed Series A. The AI platform, used by insurance and wealth-management firms to automate workflows and improve decision-making, plans to expand its products and grow its engineering and go-to-market teams. - learn more
            • Matter Venture Partners led TYLsemi’s oversubscribed $43M early-stage funding round, with participation from Viola Ventures, GHOVC, Egis Technology and other strategic investors. The semiconductor startup emerged from stealth with a full-stack chiplet platform designed to cut the time and cost of developing custom AI silicon by as much as 50%. - learn more
            • Lasagna participated in Pact Labs’ $7M Series A, which was anchored by a strategic investment from Tether and also included Blockchange Ventures. The company will use the funding to expand infrastructure that brings Tether’s U.S.-regulated USA₮ stablecoin to payroll, earned-wage access, credit and payment platforms. - learn more

            LA Exits

            • Communications startup TextPlus has agreed to be acquired by Truecaller for $15M in cash. TextPlus, which provides app-based phone numbers, messaging and internet calling to roughly 1.5M monthly active users, will help Truecaller expand its U.S. presence and add second-number and VoIP services to its platform. - learn more

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