Nasdaq’s Adena Friedman on the Power of Going Public

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

Nasdaq’s Adena Friedman on the Power of Going Public

Adena Friedman is president and chief executive officer of Nasdaq, which operates the second-largest stock exchange in the world by market cap. Named one of Forbes' most powerful women, Adena built her career at Nasdaq, starting as an intern straight out of an MBA program. Outside of a three-year stint as chief financial officer at The Carlyle Group, she's been with Nasdaq ever since. In this episode, Spencer joins Adena in New York City to discuss the power of mentorship, the future of the U.S. capital markets and why going public can spark innovation.


Press Play to hear the full conversation or check out the transcript below. You can also subscribe to Office Hours on Apple Podcasts and PodcastOne.

Spencer Rascoff: I'm in Times Square today at the Nasdaq market site with Adena Friedman, CEO of Nasdaq. Hi, Adena. How are you?

Adena Friedman: Fine, how are you?

Rascoff: Great. Firstly, a lot of listeners might not fully understand the size and scope of Nasdaq. So, explain to people, what is Nasdaq?

Friedman: Sure. Well, Nasdaq today is a global technology company that serves the capital markets, and we serve our capital markets by operating exchanges ourselves in the U.S. and the Nordics, but we also provide the technology that powers over 90 other exchanges around the world.

And then we take all of the data and analytics that are generated off of our exchanges as well as other information that we gather, and we provide a lot of insights and analytics to all of the customers in the capital markets, whether they're corporate clients or investment management clients or, obviously, the broker-dealer clients. We feel just so fortunate to be in the center of the capital markets globally today.

Rascoff: And the revenue model is one where issuers — so, companies that trade on these exchanges — pay, or people that buy and sell the stocks pay?

Friedman:Right. So, we basically have — we generate revenue in lots of different ways, but one of the sources of revenue is the listing fee. So, companies who choose to list on Nasdaq pay an annual fee to Nasdaq. We then generate trading revenue not only in our equities business from the trading of those stocks, but also in our options and futures businesses here and in the Nordics.
And then we also generate a lot of information coming off the trading engines, and that information we then sell to give people transparency into what's happening in the markets. That also is a revenue stream.
We then have our index data. We create a NASDAQ 100. We have $150 billion of assets under management tied to our indexes, and that's a revenue generator. And then we provide software and services to corporate clients as well as to other exchanges around the world and broker-dealers, and so that's a technology product base that we have revenue off of as well.

Rascoff: A much more diverse revenue stream than most people realize. So, let's talk a little bit about your career. You started as an intern at Nasdaq.

Friedman: I did.

Rascoff: When was that, if you can tell us?

Friedman: Sure. I came right out of business school, and I did an internship at Nasdaq in 1993 over the summer. At the end of the year, I took a permanent position. And so it was very, very fortunate that I had a chance to be here at the start.

Rascoff: And what was your career path like during that, I guess, two-decade stint? And we'll cover when you left and then returned in a moment.

Friedman: Sure. Well, Nasdaq at the time was a subsidiary of an organization called the National Association of Securities Dealers, which is now FINRA. And so it really was really early in its existence. It had been around for 22 years, but it was still growing up as a marketplace.
And so I really had an opportunity to come in early and be part of the trading operation and the trading organization and help them look at the trading products that they were offering out to broker-dealers to make sure that they were, in fact, optimizing them for their business.
Since NASD was a nonprofit organization and Nasdaq was a for-profit subsidiary, it was an interesting balance in terms of what they were there to do and yet realizing that they actually had these great products that they could optimize from a revenue perspective.
So, I got a chance to write business plans and then become a product manager for some of these products before I then took on the data business.

Rascoff: And we talk a lot at Zillow Group about career development and career pathing. Sheryl Sandberg in “Lean In" — on this podcast she talks, of course, about how career development is more like a jungle gym than a career ladder.
What was your path like during that time? Was it a straight-and-narrow, up-and-down ascent, or did you have detours that took you into different areas around Nasdaq? Describe what that was like.

Friedman: Sure. Well, I would say that it was a jungle gym within the groups that I was in. There was no set career path for me. There was nothing in Nasdaq that had job families. It was very much still a very, what I call, “organic organization" in terms of looking at how to develop your career.
So, I just got very fortunate because when I — every two years early in my career, I just found a new opportunity that would take me up a rung. Or in one case it was sideways, but honestly it then propelled me forward from there.
And I had a few times when I had to look around, and I said, “Wow, should I go and really focus in on marketing, or should I go take this product management job?"
And I had great mentors and sponsors within Nasdaq that really said, “Adena, you are someone who really likes to run a business. You should become a product manager. The marketing job is interesting, but it's not really — it doesn't play to your strengths as well as this other thing." So, I was able to move up through the organization but really with a lot of sponsorship.

Rascoff: One of those sponsors that you talk about is Bob Greifeld, who was the CEO, who recently retired from Nasdaq. What was that relationship like? How should somebody seek out a mentor or a sponsor and get the most out of that relationship?

Friedman: Sure. Well, I do think my personal opinion is that both sponsorship and mentorship — it very much has to be a natural activity. You can't force a sponsor or force a mentor on someone. I think that you, though, have to curate and develop that relationship.
When it comes to mentoring, I think it's an easier thing to curate where you start very casually, and you say, “Well, gosh, I really admire this person," whether that's a person inside the organization or outside the organization. If you ask them to have coffee with you one day, and you give them enough notice, most of the time they're gonna say yes.
Then once you have that coffee or have a meal, and you realize you have a good connection with that person, and they're giving you good advice, and they feel good about the advice they're giving you, they're likely to do it again. And if they do it again, then you have established yourself with someone who you can rely on to help you.
When it comes to sponsorship, most of the time those are people who are in a position of power to guide your career, and they can either be a positive or a negative sponsor. In my case, I was very fortunate. I actually had three sponsors in my career, and I think that all of them were really helpful in not only just putting me in the room and giving me the opportunity, but also guiding me, like that decision around product management versus marketing.

Rascoff: Is that something that Nasdaq in particular focuses on creating and cultivating a culture of or that sponsorship and mentorship is something that you created and owned on your own?

Friedman: It definitely was on me, and frankly, at the time you don't even realize you're getting sponsorship, right? So, with mentors, I do feel like you are realizing that you're going in and touching other people and asking them for their advice. But with sponsorship, you're just — it's so natural that you realize, “Wow, that person just really helped me out." So, it was much more organic than it was planned.
I think Nasdaq has definitely developed its mentorship program, but to me sponsorship really needs to become — it needs to be a naturally developed thing. It's somewhat the responsibility of the employee and of the manager.

Rascoff: So, after many years at Nasdaq , you left to go become CFO of Carlyle Group, a private equity firm, when it was still private with the intention of going public. Why did you leave, and what was that experience like at Carlyle for the, I think it was, three years that you were there?

Friedman: Right. So, I was the CFO at Nasdaq and actually was having a great time and loving my job, and I got a cold call, which I never take cold calls from recruiters. But in this particular case, he got my attention because he did say it was Carlyle. And at the time I —

Rascoff: So, a note to recruiters, by the way, 'cause I get a lot of calls from recruiters too. It's usually super anonymous and vague. It's like, “It's a leading industrial company. I can't tell you who it is." So, maybe recruiters should be a little bit more transparent to get the return call.

Friedman: Exactly. And it was funny because my family lives in Washington, D.C., and I had been commuting to New York for many, many years. I had gotten very used to it. So, it was very much part of our lives. But at the same time, Carlyle is the really premier financial institution in Washington, D.C. It's an organization that I knew well. I knew some of the people there. I had a huge admiration for the company.
And so, he really had no idea that I lived in D.C., but when he called, I said, “Well, do you realize that I live in Washington, D.C.?"
And he said, “Wow, that's fortunate." So he laid out the opportunity, and really, the opportunity to be the CFO of a leading financial institution like Carlyle, to help them go through the process of becoming a public company and really thriving as a public company, was incredibly compelling.
At the time, I'd been at Nasdaq for 17 years, and I felt that if I was going to try something different, this was the one opportunity that presented itself that seemed like the right one to take. So I left and went to Carlyle for three years, and I had a great experience there.

Rascoff: Now when you told your colleagues at Nasdaq— I guess, was Bob the CEO?

Friedman: He was, yeah.

Rascoff: When you told them that you were leaving to go to Carlyle, what was their reaction like?

Friedman: Bob was incredible, actually. He and I have always had a very close partnership. He has been a great sponsor to me, and he recognized at that time with the situation with the age of the kids and the opportunity that was in front of me — it just seemed like it was the right thing to do.
And so, he was very supportive. Really supportive. And he could have chosen not to be. But he really was supportive and said, “That's the right thing for you to do, Adena. Go for it."

Rascoff: And I'm sure the class that Nasdaq handled the situation with factored into your decision to return several years later.

Friedman: Of course, of course. My personal belief is that — I call them boomerang employees. I think boomerang employees can be great, great employees because there are a few reasons for that. One is they go and they experience another part of the industry, and they learn a lot.
The second is that is that they then become a client, and you then get to maintain that relationship with them as a client. And the third thing is that when they do come back, they realize what they missed.

Rascoff: Right.

Friedman: And we do have a fair number of boomerang employees because they realize what a great environment Nasdaq is and what a special place that Nasdaq has in the financial industry, and they become even more loyal to the company when they get back.
But at the time I left Nasdaq, I had no expectation of ever coming back. When I make a decision, you say, “Well, gosh, what do I want to be for the next 15 years," and thinking about the opportunities at Carlyle were really, really exciting to me. So, I left with the intention of spending at least the next 10 to 15 years there.

Rascoff: On the topic of boomerang employees, there's a company that I did a summer internship at when I was in college called Bloomberg — that you know well — that famously does not allow boomerang employees. When you leave Bloomberg, you cannot return — with one exception, which was they let Mike Bloomberg come back. But his name is on the door, and he had left to become mayor.

Friedman:And perhaps he had a lot of equity ownership in the company.

Rascoff: So, they let Mike back, but other than Mayor Bloomberg, they don't let employees return. It's the only company I'm aware of that has a policy like that. But they actually think that's very important to their culture. It seems that you disagree. I also disagree. We welcome back boomerang employees.
But it's something that I've spent a lot of time thinking about because on the way out the door, it does — it certainly gives somebody much greater pause. A tech company like ours, we have people leave not infrequently to go try a startup, and sometimes their attitude is, “Well, if the startup fails, in a year I can always come back." As a manager, that's very difficult for me to let that person leave.

Friedman: Well, and my view on that one is it's totally up to you as to whether you let them come back. They have to make a determination that they're leaving with the intention of not coming back because if they assume they can come back, that may not be an opportunity. First of all, the company may have moved on. Second of all, they may have found someone better, frankly, to replace you. And third of all, you have to be coming back for the right reasons. You can't be coming back as a default.
That's up to the manager to understand what is driving that employee to come back to Nasdaq. Is it because, “Oh, well, they failed at the other thing, so they might as well come back"? Or is it, “Wow, I really miss Nasdaq, and I really can't wait to be one of your best employees ever"? Right? And so, I think it's up to the manager to make that determination, but you certainly shouldn't assume that you have that opportunity.

Rascoff: Right. So, when you decided to leave Carlyle and return to Nasdaq, what went through your mind at that point? Why did you make that decision?

Friedman: Well, so, a few things. The first thing was that I had been a CFO for five years at that point, and while I really enjoyed the role and I really enjoyed learning how to be the lead risk manager in the company as well as to build out the operations — the finance operations for Carlyle and before that for Nasdaq— I really missed the customers.
I had been running a business up until the point I became the CFO of Nasdaq, and I really missed the pressure and the fun of running a P&L and having that client interaction and being able to drive a company forward or drive a business forward.
And so, when Bob came back and said, “Well, why don't you come back as our president, and you can run these certain businesses," it was an incredibly exciting opportunity for me to get back into that P&L responsibility and to take on such a large part of the Nasdaq ecosystem.
So, it was just a huge opportunity. And I really, really enjoyed Carlyle a great deal, but I saw this as the better opportunity for me at that time.

Rascoff: And I would be a terrible interviewer if I didn't ask: When you took Carlyle public, did they end up listing on Nasdaq?

Friedman: They did, actually, and it was really interesting. We went through a full, what I call, “bake-off process." We had both of the companies come in twice. I just got to be a fly on the wall and watch each of them do their pitch. So, it was actually really, really fun.
I tried very hard not to be a part of the decision process, 'cause it really was up to the founders to make that determination. It was fascinating to see how they came at it so differently.

Rascoff: I'm sure that makes you a better CEO of Nasdaq now having been on the client side.

Friedman: Yeah. I'd say certainly going through the process of going public has made me — it really, really informed me in terms of what we could do at Nasdaq to make it a better experience, to help manage the client through that experience and then to realize just how hard it is. We are here to make companies' lives easier, and so what can we do as the exchange to make that process for our customers?

Rascoff: So, a perfect segue into Project Revitalize, which is a project that's important to you. It's something that you and I talked about at the Microsoft CEO Summit.

Friedman: That's right. I'm glad you remember.

Rascoff: I don't know if you had actually formalized it as a full initiative at Nasdaq at the time. But for our listeners, the basic issue here is there are, I think, half as many public companies today as there were a decade or two ago.

Friedman: That's right.

Rascoff: And many fewer IPOs. Of course, that's bad for Nasdaq's business, but it's also bad for the economy. It's bad for innovation. It's bad for the country, the world. There are a lot of different reasons why, and I think reasonable people disagree on the specific reasons.
But you're spearheading a group of initiatives at Nasdaq to try to address this. Why don't you describe what you're working on?

Friedman: Sure. Well, I think the first thing is we had to determine that there really is a problem. I think that we have been seeing this problem manifest itself over a long period of time, and so therefore you don't realize necessarily each year that you go through it that there is a growing issue.
But I would say that over the last three years, it's really culminated into something that's a known issue today, which is that over time the government has placed so many requirements on companies as public companies and the process of going public has become so much more challenging, the nature of investors has really become very different and that the environment around being a public company is very different today than it was 10 and certainly 20 years ago.
And so, we have been looking at what are the things that we can do to advocate on behalf of companies to make sure they find that the process of going public and being public is actually an inviting process and something that they want to pursue?
So, why do we care, and why should anyone who is listening to this care? The first thing is that 86 percent of all job growth in the United States since 2000 has come from companies after they have gone public. So, when we look at the companies before they're public and after they're public, 86 percent of the job growth came after they went public, and that's just in the last 17 years. If we look over a longer period of time, it's over 90 percent.

Rascoff: Partly because being public provides them with access to permanent capital, which allows them to grow. And so, if they're not able to get public, there won't be as much job growth.

Friedman: That's right. So, the whole purpose of going public is to give you access to growth capital. It's really a shot in the arm to allow you to grow and expand your business, and so if you don't have that now people say, “Yes, but there's so much private capital out there. It's so readily available. Why do I need to tap the public market so I can grow that way?"
And for some companies, and a very small subset of companies, that is, in fact, true that they can use private capital to do that. But for the majority of companies, they really still do have to ultimately access public capital to really get the amount of capital they're looking for. I think that we are assuming that that's available to everyone in the private markets, and it's not.
The second thing to realize is that when companies do access private capital, and they have all of this ability to grow using private capital, well, where is that private capital coming from? And I come from private equity. I'm a huge believer in private capital as being part of the ecosystem.
But that private capital is being made available to the wealthiest in the country, right? It's the wealthiest in the country that are generating that private capital and making it available to those companies, which means the vast majority of retail investors don't get access to these growth companies until they go public.

Rascoff: So when Microsoft went public in — when did Microsoft go public, in the early '80s, I think?

Friedman: Mid-'80s, mmm hmm.

Rascoff: Another $500 billion in market capital was created over the ensuing 30-plus-year period.

Friedman: That's right, and Amazon went public. They were $300 million in valuation, and they're now $400 billion. Another great company actually was Applied Materials that was here yesterday. So, they went public in 1972, the first year that Nasdaq existed. At that time, they were generating maybe $10 million in revenue, and today they are generating $14 billion in revenue.

Rascoff: And so, all of that appreciation accrues to investors, whether they be institutional investors or retail investors. It's egalitarian.

Friedman: Or retail. It makes it so that every investor gets to access it as opposed to a subset of investors. I think that private capital providers will say, “Yes, but we represent pensions," and that's totally true. But the average retail saver does not get access to those investments.
And I think it's really in our — I think it's frankly the government's responsibility, and it's Nasdaq and every exchange's responsibility to try to find a way to make the public markets more inviting for companies. So, we have a whole range of changes that we would like to see and that we will be strongly advocating for and pushing to make sure that we create a more inviting environment.

Rascoff: What types of things are those?

Friedman: So, we looked at disclosure obligations for companies as to what we require that they disclose every quarter and whether or not everything should have to be disclosed every quarter. We looked at proxy access and, frankly, how challenging it is to have these very, very small investors to have total access to your proxy.
There is some very large percentage of proxy reform proposals that are being generated by about four investors who just buy up the minimum amount of shares, and then they go out and they agitate. So, is that really what proxy access is all about?
Proxy firm reform. The ISS and Glass Lewises of the world, should they have to have more regulation and oversight to make sure that they're doing the right thing for the companies and the investors?

Rascoff: So, just on disclosure, do European companies only report twice a year and not four times a year? Do I have that right?

Friedman: It depends on the country. So, in the UK, that is absolutely true. They have an obligation to report a full report twice a year, and then they do these interim reports the other two quarters. I think that's a good model to consider.

Rascoff: You would advocate for that or advocate for evaluating that at least?

Friedman: Yeah. In fact, that's one of the things we said in there. There's also tax reform and things we can do on the tax side. There is, in fact, litigation reform to make it so that companies have a fairer environment when they're dealing with shareholder class action suits.
And then I think that then there's market structure. So, is every company being treated the right way in the public markets with a one-size-fits-all market structure, and should we be looking at a market structure that really is more tailored to smaller companies versus larger companies?

Rascoff: So, by that you mean, for example, different disclosure requirements for smaller companies than larger?

Friedman: Yeah, different disclosure requirements, but also different market models.

Rascoff: Okay. Wow, well, a lot to think about there. Obviously we went public relatively early as a company. We had $15 million in quarterly revenue, and people thought that was perhaps too small to go public. We went public with about a $500 million market cap, and we really followed that — it's quaint. You're right. People don't tend to do that anymore.
Now, most of the appreciation that has occurred at our company has accrued to public market shareholders, not private market shareholders, because we went public relatively early. In Zillow Group's case, it has been hugely successful and the right decision to have gone public early.

Friedman: Just using Zillow, for example: One of the great things about Zillow is that your users can now be shareholders, right? So, your users can be owners, and they understand your product. They understand it deeply because they use it.
So, they also understand the potential of it. They can really get involved and engaged in understanding what benefit they're getting, and therefore they can understand why this company is gonna be a growth company, right? So, it actually has been a great success story.

Rascoff: Thank you for the conversation, and thank you for being our exchange. Zillow Group proudly trades on NASDAQ. And thanks for having me today.

Friedman: Well, thank you so much. It was really a pleasure. Thank you.

The post Nasdaq's Adena Friedman on the Power of Going Public appeared first on Office Hours.

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🛡️Meet the Defense Unicorn That Just Raised $250M to Stop Drone Swarms

🔦 Spotlight

Hello, Happy Friday!

For this week's spotlight story, we're turning our attention to a monumental leap in defense technology achieved by Epirus, a dynamic startup based in Torrance that specializes in groundbreaking anti-drone systems. Recently, Epirus successfully secured a whopping $250 million in Series D funding, raising its total capital to over $550 million and solidifying its status as a unicorn in the defense tech sector.

Image Source: Epirus

At the heart of Epirus’s arsenal is Leonidas, a solid-state, directed energy system named after the fierce Spartan king. As formidable as its namesake suggests, Leonidas stands out by neutralizing unmanned systems and other electronic threats with unmatched precision—a vital capability in today’s digital battlefield where drones are increasingly common. Offering a high-tech shield against potential threats, Leonidas has established Epirus as a key player in modern warfare technology, underscored by significant contracts such as a notable $66 million deal with the U.S. Army in 2023.

Founded in 2018 by a visionary team including Joe Lonsdale, Bo Marr, Max Mednik, Nathan Mintz, Grant Verstandig, and John Tenet, Epirus combines expertise across technology, strategy, and security to push the boundaries of defense innovation. The collective experience and strategic foresight of its founders have propelled the company's rapid growth and technological advancements.

Looking to the future, Epirus plans to utilize this influx of capital to broaden its reach into international and commercial markets, enhance its team, fortify its supply chain, and establish a new training center in Oklahoma to further military preparedness.

This latest round of funding was led by 8VC and Washington Harbour Partners LP, accompanied by a diverse group of new and returning investors, including strategic defense partner General Dynamics Land Systems and seasoned investors like StepStone Group and T. Rowe Price Investment Management, Inc. New stakeholders such as Oppenheimer's Private Market Opportunities Vista VI Fund, NightDragon, Manhattan Venture Partners, Centaurus Capital LP, and Center15 Capital also joined, reflecting robust market confidence in Epirus’s innovative approach and future potential.

Keep an eye on Epirus as it navigates this exciting phase of growth and innovation. With its advanced technologies and strategic expansions, Epirus is not just responding to the challenges of today’s digital battlefield but is also setting the pace for tomorrow’s defense landscape.

🤝 Venture Deals

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      • B Capital led a $96M equity investment in Odeko, a New York-based all-in-one operations and technology partner for local coffee shops, cafes, and other food and beverage businesses. Including a $30M credit facility from Banc of California, the total funding amounts to $126M. Odeko plans to use the funds to fuel growth through new services and cost savings for customers, acquire businesses to extend its market reach and product offerings, and build out its leadership team. - learn more
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            The AI Arms Race Heats Up — Who’s Really Winning?

            🔦 Spotlight

            Hello, LA!

            In the ever-evolving landscape of artificial intelligence, tech giants are racing to outdo each other, unveiling innovations that promise to redefine our interaction with technology. This week, the spotlight shines on three major developments: Amazon's introduction of Alexa+, OpenAI's release of GPT-4.5, and Meta's announcement of a standalone AI app.

            Amazon's Alexa+: Your New AI Companion

            Image Source: Amazon

            Amazon has unveiled Alexa+, a next-generation AI assistant powered by generative AI.According to Amazon, Alexa+ is designed to be more conversational, smarter, and highly personalized. It can manage tasks ranging from controlling smart home devices to making reservations and providing personalized recommendations. With the ability to understand colloquial expressions and complex queries, Alexa+ aims to make interactions feel less like commands to a machine and more like conversations with a trusted friend.

            Alexa+ will be free for Amazon Prime members and available for $19.99 per month for non-members, adding a new premium tier to Amazon’s ecosystem. For more details,Amazon's official release covers the top features.

            OpenAI's GPT-4.5: A Leap Towards Emotional Intelligence

            Image Source: OpenAI

            Meanwhile, OpenAI has launched GPT-4.5, its largest and most advanced AI language model to date.In OpenAI’s announcement, the company highlights how this upgrade enhances pattern recognition, connection drawing, and creative insight generation. Early testing indicates that interactions with GPT-4.5 feel more natural and intuitive, thanks to its broader knowledge base and refined personality.

            This model is particularly adept at writing, programming, and practical problem-solving. However, OpenAI has clarified that GPT-4.5 is not a "frontier model", meaning it may not outperform highly specialized AI in certain areas. Still, it marks a significant step forward in AI’s capabilities.

            Meta's Standalone AI App: Expanding the AI Ecosystem

            Not to be left behind, Meta is set to launch a standalone AI app in the second quarter of 2025.As reported by CNBC, this move aligns with Mark Zuckerberg’s vision to position Meta as a leader in AI by the end of the year. The app aims to complement existing platforms like Facebook and Instagram, offering users a dedicated space to interact with Meta’s AI technologies.

            This initiative is part of Meta’s broader strategy to enhance user engagement and stay competitive in the rapidly evolving AI landscape. With rivals like Amazon and OpenAI pushing forward, Meta is making its move to claim a seat at the AI table.

            The Bigger Picture

            These developments underscore a significant trend: AI is becoming increasingly integrated into our daily lives, with major tech companies striving to create more intuitive, personalized, and human-like interactions. As AI continues to evolve, users can anticipate more seamless and natural engagements with technology, blurring the lines between human and machine interactions.

            In this high-stakes race, the real winners will be those who deliver AI that doesn’t just talk back—but truly understands.


            🤝 Venture Deals

            LA Companies

            • Mitico, a Pasadena-based carbon capture technology company, has raised a $4.3M Seed funding round led by Exergon with participation from Freeflow Ventures, Alliance for Southern California Innovation, and others. The funds will be used to accelerate pilot testing and scale its technology, which captures over 95% of CO₂ emissions from industrial sources like gas-fired power plants and waste-to-energy facilities. - learn more
              LA Venture Funds
              • Alexandria Venture Investments participated in Eikon Therapeutics' $351M Series D funding round to support the company's advancements in live-cell imaging and protein movement analysis for drug discovery. Based in Hayward, California, Eikon is leveraging its proprietary technology to develop new treatments, with a focus on melanoma and other cancers. The funds will be used to accelerate drug discovery programs and expand clinical research efforts. - learn more
              • MTech Capital participated in a €14.4M Series B funding round for Napo, a London-based InsurTech startup specializing in comprehensive pet insurance solutions. The funds will be used to enhance Napo's AI and automation capabilities, aiming to provide more efficient and customer-focused services to pet owners. - learn more
              • Mantis VC participated in a $15M Series A funding round for Edera, a Seattle-based company specializing in workload isolation technology. Edera's solutions enhance cloud and AI infrastructure security by providing strong workload isolation, enabling developers to build rapidly without compromising security. The funds will be used to expand Edera's product offerings, including support for AI infrastructure, and to accelerate the adoption of their technology in securing cloud-native environments. - learn more
              • B Capital participated in a $13.4M Seed funding round for Goose, a Chicago-based technology company developing a next-generation operating system for pet care providers. Goose's platform integrates services such as boarding, day care, grooming, training, and retail, aiming to streamline operations and enhance customer interactions for pet care businesses. The newly raised funds will be used to accelerate product development, expand partnerships, and meet the growing demand for their enterprise-ready platform. - learn more
              • 75 & Sunny Ventures participated in a $6.7M Seed funding round for HouseWhisper, a Seattle-based company developing an AI-powered assistant designed to enhance real estate agents' productivity by automating administrative tasks. The funds will be used to advance product development, expand the team, and enhance AI capabilities, aiming to transform agent workflows and improve client engagement. - learn more
              • Dangerous Ventures participated in an $18.5M Series A funding round for Cambium, a Baltimore-based supply chain technology company specializing in sustainable wood products. Cambium leverages AI to transform salvaged wood into Carbon Smart™ Wood and mass timber products, aiming to modernize the $788 billion wood products industry. The funds will be used to deploy AI technology, strengthen their wood supply network, expand into mass timber offerings, and scale operations to meet the growing demand for sustainable building materials. - learn more
              • Nomad Ventures led a $1.7M Pre-seed funding round for WilsonAI, a London-based company developing the world's first AI-powered paralegal designed to integrate directly into in-house legal teams. Founded in August 2024 by Gus Neate and Alex Wang, WilsonAI aims to automate repetitive legal tasks, such as handling routine requests and reviewing contracts, thereby streamlining workflows. The funds will be used to enhance WilsonAI's AI capabilities, expand integrations with existing legal tech systems, and accelerate customer onboarding across various industries. - learn more
              • Bill Silva Ventures participated in an €800,000 funding round for Solid IO, a Helsinki-based medtech company specializing in patient-specific organ-on-chip technology. Solid IO's platform replicates individual tumor microenvironments to provide real-time, accurate data on cancer responses to immunotherapies and combination treatments. The funds will be used to advance their tumor-on-chip platform, aiming to enhance personalized cancer treatment and improve patient outcomes. - learn more

                    LA Exits

                    • Loki Solutions, a company specializing in advanced cyber operations and intelligence analysis, has been acquired by VTG to expand its capabilities within the intelligence community. The acquisition strengthens VTG’s offerings in national security and cyber defense, integrating Loki Solutions’ expertise to support critical missions. - learn more
                    • Dave's Hot Chicken, a Pasadena, California-based chain renowned for its Nashville-style hot chicken, has been acquired by private equity firm Roark Capital in a deal valued at approximately $1 billion. Founded in 2017, Dave's Hot Chicken has rapidly expanded to over 250 locations worldwide, generating around $1 billion in annual sales. The company is majority-owned by its founders—Dave Kopushyan, Arman Oganesyan, Tommy Rubenyan, and Gary Rubenyan—and counts rapper Drake among its investors. Roark Capital, based in Atlanta, manages $38 billion in assets and owns a portfolio of major restaurant brands, including Arby's, Culver's, and Subway. - learn more
                    • Mob Scene, a premier Hollywood marketing agency specializing in film studios, television networks, and streaming services, has been acquired by Connekkt Media, one of Asia's largest media and entertainment-technology companies. This strategic acquisition aims to combine Mob Scene's creative marketing expertise with Connekkt Media's technological capabilities, enhancing their global reach and service offerings. Under the new agreement, Mob Scene's co-founder and CEO, Tom Grane, will continue to lead the company. - learn more
                    • Curious Refuge, a platform dedicated to supporting generative AI storytellers, has been acquired by Promise, a pioneering film and media company. This acquisition aims to empower and discover AI-driven storytellers worldwide, fostering a vibrant creative community that connects artists, filmmakers, and technologists. By integrating Curious Refuge's resources and community with Promise's innovative approach, the collaboration seeks to revolutionize the landscape of AI-generated storytelling. - learn more

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                        🛰️LA Is Emerging as a Space Powerhouse—And Investors Are Lining Up

                        🔦 Spotlight

                        Hello, Happy Friday!

                        This week, Los Angeles proved once again why it's at the center of space, tech, and innovation. From a major satellite funding round to a big push for wildfire relief, the city is making moves across multiple industries.

                        K2 Space Lands $110M to Build High-Power Satellites

                        Image Source: K2 Space

                        Torrance-based K2 Space just raised $110 million in Series B funding, co-led by Lightspeed Venture Partners and Altimeter Capital. The company, which has now secured $180 million since its launch in 2022, is working on high-power, multi-orbit satellites designed to make space operations more efficient and affordable.

                        With a new 180,000-square-foot facility in Torrance, K2 is scaling up production—and a successful in-space demo proves they’re on the right track. As demand grows for more powerful satellites, this funding puts them in a strong position to compete.

                        True Anomaly Expands into Long Beach

                        LA's space industry is scaling fast, andTrue Anomaly is the latest company to plant roots in Long Beach. The defense tech startup is opening a 90,000-square-foot facility to develop next-gen space security and reconnaissance systems.

                        Of that, 70,000 square feet will be dedicated to engineering and production, while the remaining space will house office and R&D teams. With more satellites playing key roles in national security and commercial operations, True Anomaly’s expansion positions it right where it needs to be—close to top aerospace talent and major government clients.

                        Apple Unveils iPhone 16e

                        Image Source: Apple

                        Apple has added a new model to its lineup with the iPhone 16e, a budget-friendly but powerful option. Priced at $599, it includes:

                        • A18 chip with Apple Intelligence
                        • 48MP 2-in-1 camera system
                        • 6.1-inch Super Retina XDR OLED display
                        • Face ID, replacing the classic home button

                        Pre-orders start February 21, with availability beginning February 28. Apple is positioning the 16e as a mid-tier option that brings AI-driven capabilities to a wider audience without the premium price tag.

                        TikTok Returns to U.S. App Stores

                        After a brief removal,TikTok is back on Apple and Google app stores following a delay in enforcement of a potential national ban. The White House assured tech platforms they won’t face penalties for keeping the app available, at least for now.

                        For creators, brands, and businesses that depend on TikTok, it’s a relief—but the platform’s long-term future in the U.S. is still up in the air.

                        FireAid Distributes $50M for Wildfire Relief

                        Image Source: Fire Aid

                        While LA’s tech industry looks ahead, major efforts this week focused on immediate recovery.FireAid announced $50 million in wildfire relief grants to support Los Angeles communities impacted by the recent devastating wildfires.

                        The first round of grants will help local nonprofits and organizations providing housing, financial assistance, essential goods, and emergency support to those affected. Some of the initial recipients include:

                        • United Way of Greater Los Angeles – Providing direct financial aid and community-based recovery efforts.
                        • Baby2Baby – Supplying essential goods to families and children impacted by the fires.
                        • CA Community Foundation’s Wildfire Relief Fund – Supporting emergency relief and long-term recovery.
                        • LA Fire Department Foundation – Assisting first responders with wildfire-related resources.
                        • Meet Each Need with Dignity (MEND) – Providing emergency food, housing, and job resources for displaced individuals.

                        FireAid’s benefit concert, which drew millions of viewers worldwide, has continued to raise funds, with additional grants expected to roll out in the coming months to further aid recovery and rebuilding efforts.

                        LA Isn't Just Keeping Up With the Future—It's Defining It.

                        From major investments in space and national security to new consumer tech and philanthropic efforts, LA is proving its influence across industries. The question isn’t what’s happening here—it’s what’s happening next.


                        🤝 Venture Deals

                        LA Companies

                        • CREE8, a company offering a centralized virtual workspace with on-demand, high-performance workstations, secure storage solutions, and real-time collaboration tools for creatives, has received an investment from Moneta Ventures. The funding will be used to enhance its platform capabilities and expand its market presence, providing seamless workflows for creators and professionals in need of cloud-based creative solutions. - learn more
                        • Breakthrough, an AI-driven startup founded by former Google executive Adit Abhyankar, has secured a $600,000 Pre-seed funding led by Senvest Capital. The company specializes in enhancing B2B sales messaging by optimizing content in real-time through its self-learning AI platform. The funds will be used to expand Breakthrough's enterprise client base, explore applications beyond traditional sales outreach, and refine the product to better align with market needs. - learn more
                        • UVIONIX, a robotics and automation startup specializing in AI-powered autonomous flying robots for warehouse inventory management, has secured a $3.5M Seed funding led by LAUNCHub Ventures. The investment will accelerate UVIONIX's product release, expand its presence in the U.S. and Europe, and support the growth of its AI and engineering teams in Bulgaria and the U.S. - learn more
                        LA Venture Funds
                        • March Capital participated in a $305M Series B funding round for Together AI, a San Francisco-based company specializing in providing a cloud platform for developers and researchers to train and deploy generative AI models. The funds will be used to expand Together AI's cloud infrastructure, including the large-scale deployment of Nvidia Blackwell GPUs, to support over 200 open-source models and serve its growing user base of more than 450,000 AI developers worldwide. - learn more
                        • Amboy Street Ventures participated in a $12M Series A funding round for Millie, a San Francisco-based tech-enabled maternity clinic. Millie offers comprehensive, patient-centered maternity care, integrating clinical best practices with digital tools to support individuals from conception through postpartum. The funds will be used to expand Millie's technology platform, enhance service offerings, and open new clinics, starting with a collaboration in California in 2025. - learn more
                        • StoryHouse Ventures participated in a $4.3M Seed funding round for Henry AI, a company specializing in automating commercial real estate transactions. Based in New York, Henry AI uses AI-powered technology to streamline real estate deal execution. The funds will be used to enhance its platform and expand its capabilities, making commercial real estate transactions more efficient and scalable. - learn more
                        • Amplify.LA participated in a $6.2M Seed funding round for Mavvrik, an Austin-based FinOps platform formerly known as DigitalEx. Mavvrik helps organizations manage and optimize IT expenditures through advanced financial operations solutions. The funds will be used to enhance its platform capabilities, addressing rising IT costs and improving financial efficiency for its clients. - learn more
                        • Generational Partners participated in a $4M Pre-seed funding round for Everstar, a company specializing in AI-driven solutions for nuclear compliance. The funds will be used to develop Everstar's platform, aiming to enhance safety and efficiency in the nuclear energy sector. - learn more
                        • Watertower Ventures participated in a $1.2M pre-seed funding round for Glassbox, a Toronto-based fintech startup developing an AI-compatible financial analysis platform. The funds will be used to expand Glassbox's team and bring its platform to market, aiming to transform traditional spreadsheet-based workflows into more efficient, transparent, and AI-driven processes. - learn more
                        • March Capital participated in a $75M Series C funding round for Luminance, a Cambridge, UK-based legal technology company specializing in AI-powered contract generation, negotiation, and analysis. The funds will be used to accelerate Luminance's global expansion, particularly in the U.S., and to enhance its AI platform, extending its applications to adjacent areas such as procurement and compliance. - learn more
                        • Rebel Fund participated in a €17.2M Series A funding round for Capi Money, a London-based FinTech startup specializing in streamlining international payments for SMEs in emerging markets. The funds will be used to scale Capi Money's platform, enabling small and medium-sized importers in regions like Africa, Latin America, and China to pay international suppliers more efficiently. - learn more
                        • Group 11 participated in a $100M Series B funding round for Dream, an AI company based in Tel Aviv, Israel, specializing in cyber resilience solutions for nations and critical infrastructure. The investment, led by Bain Capital Ventures, will be used to enhance Dream's product capabilities and expand its global market reach, aiming to bolster national cybersecurity defenses against sophisticated threats. - learn more
                        • B Capital participated in a $320M Series C funding round for Lambda, a San Jose, California-based company specializing in GPU cloud services for AI applications. The funds will be used to expand Lambda's AI cloud business, including their on-demand and reserved cloud offerings, to meet the growing demand for AI infrastructure. - learn more
                        • B Capital co-led a $350M Series A funding round for Apptronik, an Austin, Texas-based company specializing in AI-powered humanoid robots. The investment will be used to scale the production of their humanoid robot, Apollo, designed for tasks in logistics and manufacturing sectors. Apptronik plans to expand Apollo's capabilities to other industries, including elder care and healthcare. - learn more
                        • Upfront Ventures led a $7.5M Seed funding round for Keragon, a New York City-based company providing an AI-powered, HIPAA-compliant automation platform for healthcare. The funds will be used to expand operations and development efforts, enabling healthcare professionals to integrate over 300 software tools—including electronic health records, scheduling platforms, and AI medical scribes—without requiring engineering expertise. This integration aims to streamline data exchange, reduce administrative burdens, and safeguard patient information. - learn more
                        • Blue Bear Capital participated in a $16M Series B funding round for ACCURE Battery Intelligence, an Aachen, Germany-based company specializing in AI-based battery safety and performance solutions. The funds will be used to expand ACCURE's predictive analytics software offerings across Europe, the Americas, and the Asia-Pacific regions, addressing the growing demand for enhanced battery safety and reliability in energy storage systems and electric vehicle fleets. - learn more
                        • Clocktower Ventures participated in a $6.2M Seed funding round for Era Finance, a company specializing in AI-powered personal wealth management solutions. The funds will be used to expand Era's 'wealth-care' platform, aiming to make advanced financial intelligence accessible to a broader audience. - learn more
                        • Climate Avengers participated in a $25M Series B funding round for Mast, a company specializing in restorative carbon removal projects. The funds will be used to launch a first-of-its-kind biomass burial and reforestation project, aiming to enhance carbon sequestration and combat climate change. - learn more
                        • Clocktower Ventures participated in a $5M Seed funding round for Vigil, a New York-based insurtech startup specializing in annuities. The funds will be used to expand Vigil's platform and enhance its services in the annuities market. - learn more
                        • Finality Capital Partners co-led a $7M Seed funding round for Fragmetric, a company specializing in native liquid restaking protocols on the Solana blockchain. The funds will be used to enhance Fragmetric's platform, focusing on efficient distribution of Node Consensus Network rewards and determining appropriate slashing ratios for Liquid Staking Tokens, thereby strengthening the security and economic potential of the Solana ecosystem. - learn more

                            LA Exits

                            • Guidance, a leading digital commerce services provider, has been acquired by OneMagnify, a global marketing and technology solutions company backed by Crestview Partners. This strategic acquisition aims to enhance OneMagnify's digital experience and eCommerce capabilities, enabling the combined entity to offer comprehensive, data-driven digital solutions to their clients. - learn more
                            • Maple Media, a leader in mobile app publishing with a diverse portfolio of "Top 10" apps across productivity, entertainment, and lifestyle categories, has been acquired by Skybound Entertainment. This acquisition aims to enhance Skybound's reach by integrating Maple Media's stable revenue, proprietary app management technology, and direct consumer relationships, thereby expanding Skybound's audience and engagement. - learn more
                            • Prima, a science-backed wellness brand specializing in clean and clinical CBD skincare and body care, has been acquired by Sky Marketing Corporation, a Texas-based house of hemp brands. The acquisition will allow Prima to expand its reach and continue its mission of delivering high-quality, plant-based wellness solutions under Sky Marketing's portfolio. - learn more

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