OfferUp CEO Nick Huzar on Evolving as a Leader

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.

OfferUp CEO Nick Huzar on Evolving as a Leader

Nick Huzar is co-founder and CEO of OfferUp, the largest mobile marketplace in the U.S. The company has reinvented the model for local, peer-to-peer commerce, and its engagement metrics are incredible. In 2017, the company reported that it had over 60 million downloads and 43 million users who use the platform as frequently as popular social media apps. Today, OfferUp is one of the highest valued private companies in the Pacific Northwest, officially gaining unicorn status. In this episode, Nick offers advice for leaders about scaling a company, the importance of building trust and how his leadership style has evolved with OfferUp's growth.

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


Spencer Rascoff: I'm in Bellevue, Washington today, near Seattle, with co-founder and CEO, Nick Huzar, of OfferUp. Hey, Nick. Thanks for having me.

Nick Huzar: Hey, really nice to be here.

Spencer: So for those unfamiliar with OfferUp, tell us a little bit about the company and the product, from a consumer standpoint, and when you started it, what the mission was.

Nick: Sure. Well, I started OfferUp from a personal pain point. I had a baby on the way, and I literally had a room full of stuff, and I was just thinking to myself, “Kill me. There's gotta be a better way to sell all this," and there really wasn't, so –

Spencer: Pre-baby decluttering, nesting phase.

Nick: Yeah.

Spencer: I'm very familiar with that.

Nick: Yeah. For all the parents out there, they can relate to what I was going through. So what I saw at the time was a huge opportunity. I believed that the smartphone would be something that everyone would have, and at the time – this was seven years ago – not everyone – most people, in fact, didn't have one.

Spencer: Now remind us. There were iPhones, but no App Stores?

Nick: Yeah, and Android was barely a thing, right?

Spencer: Right.

Nick: So I think there was a few assumptions me and my cofounder made. One, everyone would have one of these, which today you look back and say, “Well, duh." Two, we thought the cameras would get better, and three, ultimately we just felt that everyone would pay from these devices. So I think all those trends had started to manifest in some way. So for me, when I was kinda building and designing the initial app, I was really building it for myself.

Spencer: And that's the way the best products are built.

Nick: Yeah, and I still, to this day, you know, a lot of stuff in my house is from OfferUp. My kids, most of the stuff now – I have two kids now. Most of the stuff that they get is all from OfferUp. I don't buy them new stuff because they don't like it very long. So I think the opportunity I saw was big. I think a lot of the existing players that were out there were respectable, but they were built in a desktop era, and I think mobile gave us an opportunity to really reimagine the entire local buying and selling experience.

And so when we think about OfferUp in the long term, our vision is to really help to transform local buying and selling, and we think the opportunity is way bigger than where we are today. Our mission is to be the largest, simplest, and most trusted marketplace for local, and so I think we still have a very long way to go. It's amazing to see how fast we've actually grown. We're one of the top shopping apps in the country, definitely the largest mobile marketplace out there, so OfferUp's really starting to become a household name in a lot of markets around the country, and again, I think there was a lot of people that were like me. They just didn't have the time to deal with the existing solutions, and they found OfferUp to be something easy to use.

Spencer: So I want to come back to growth and scaling and how the company is, which is now a couple hundred employees, has changed since its founding seven years ago. Just to round out the picture of the competitive landscape, I guess in those early days, you were really competing with Craigslist online, on desktop, and then whatever other hacky, offline solutions people found, if it was at college campuses, putting a poster on a board in a shared space or something. And then there's some newer digital competitors as well on mobile, but I mean, do you think of traditional e-commerce, like Amazon for new goods, as a direct competitor as well?

Nick: So, to be clear, we've had competitors the whole way. Every year one will come and go, and it's just been probably, you know. This is kinda how it's evolved over time. I like to really obsess, so – and my belief is it's – we're really expanding the market, so I never went into this business to even convert a single Craigslist user. I believed that the market was way, way bigger. I believed there was more people like me that weren't using it, and we see that today.

We see a lot of people that said, “I never used X, Y, Z platform," and I use OfferUp all the time, because it's simple, and it works, and so 85 percent of commerce is still local, even in the world of eBay and Amazon, all these amazing e-commerce sites, and that's what we're after. We wanna expand into that market. Now, clearly, Amazon's an amazing company, and they'll continue to kind of chip away at that, but I really think of that as the opportunity. Our biggest focus is reducing friction, and our belief is the more we do that, the more people participate in commerce in this way.

Spencer: How competitor focused is your company versus product focus? This is something a lot of startups kind of struggle with, trying to find the right balance.

Nick: Yeah, so I don't think we really obsess or talk about competition hardly at all. We acknowledge them and definitely wanna understand kind of what are they doing out there in the world, but our obsession is really internal in our customers and really building this simplest and trusted experience, so we really obsess over that. And our belief is the more we do that, the more people continue to use OfferUp, and we believe that that's what the winning approach is. You can try all these other marketplaces, but if you're gonna have – whatever one's gonna yield the most success, where you're either buying or selling, is the one you're gonna use the most, so we really obsess over the product quite a bit.

Spencer: Yeah, so I think competitor aware, consumer focused, consumer obsessed is probably the right balance.

Nick: Yeah.

Spencer: I mean I've done two startups, Hotwire and Zillow. Hotwire was competitor focused. When we started it, we were really focused on competing with Priceline in the discount travel space. Zillow was consumer focused. We certainly have competitors, have had competitors, have acquired some competitors, but we've never been overly consumer focused at all, and I will tell you that from an employee standpoint, it is a much more inspirational, aspirational place to work if you're consumer obsessed and not competitor obsessed. It was kind of soul-sucking at Hotwire to – every accomplishment, every metric was always being measured against Priceline, this other competitor, and it was –

Nick: Yeah.

Spencer: Yeah, I guess it was good motivation, I guess, but it wasn't nearly as fun.

Nick: Yeah, really, and in our case, you – the great thing about OfferUp is you have to go meet and talk to people. It's not a product where – you know, our whole office is furnished from OfferUp. The chairs we're sitting in, in the room we're in, and that's great, because as an employee, you get to go meet them, and talk to people, and learn how to make it better, and actually get to interact with people, and I think in most companies you don't have that opportunity.

Spencer: So the product, from a consumer standpoint, is take a photo of this thing in my garage, press a button, post it, find a buyer, and then I meet them in an OfferUp kind of safe community space, which addresses some of the trust and safety issues that other local marketplaces have encountered, and do you charge the buyer or the seller? What's your revenue model?

Nick: Yeah, so today we have an advertising product. We just introduced shipping. There's many other, I think, exciting things we'll be introducing in the future, but it's kind of a combination of an ad model and then there's a small take rate for transactions that do happen on the platform.

Spencer: Let's fast forward to today. You started about sevenish years ago. Today, 2018, how much capital have you raised? How many employees? What other business metrics can you share with listeners so they get a sense of the scale of the company?

Nick: Sure. So we have over 230 employees today. We've probably raised over $230 million in capital, and we've had over 70 million installs in the US, and like I said, if you go into the App Store, under shopping, you'll see that it's usually one, two, or three. We either trade with Wish or Amazon and OfferUp, and so I felt pretty proud considering how well funded and large both those companies are. That we're in good company considering how small we are relative, you know, as a team, and so, you know, people use OfferUp a lot, and we're becoming kind of a – people engage in OfferUp more like social media. People spend on average, 20 minutes a day, almost every other day of the month.

Spencer: Wow.

Nick: And so people are really engaged, and they're trying to find and discover things that are nearby, and I think – or they're selling something, but it's really interesting to see how people engage in OfferUp versus other e-commerce platforms. We were designed to be visual and discovery-based and I think a lot of other marketplaces are just not built for, you know. They weren't built around all the power in the smartphone, and so we just took a different lens and a different approach to all that.

Spencer: Is there even a desktop product?

Nick: What's interesting is our web team, until probably 18 months ago, was one guy, and he's awesome, but we kind of – that's been growing quite a bit. Actually, our web metrics are now growing and usage is continuing to grow there. So we've been investing a lot more there in the recent number of years, but we're definitely a mobile-first company. That's where a lot of our innovation and focus is, but still, spending more time on the desktop than before.

Spencer: Now you're a Seattle-based company. You're in Bellevue, which is sort of suburban Seattle, and yet you are a unicorn. That's kind of a weird term. I don't know if you embrace it or not and you accept that descriptor.

Nick: No.

Spencer: But it seems to me that the way you've built OfferUp is a little different than some Bay Area tech companies. I mean you're very focused on the consumer and consumer PR, for example, but you haven't been as front and center in the tech trade press as a lot of other tech companies at similar stages. Is that fair to say?

Nick: Yeah.

Spencer: And why is that?

Nick: I think historically, our focus is really again, just customer, and really honing in on the business and really trying to get deep local market and kind of penetration and so a lot of this I think was fairly strategic and very, you know, forward thinking, where even after Andreessen Horowitz invested, we said, “Don't put us on your website." Like, “Mark, please don't tweet about us," and that gave us a number of years to grow around the country before we had more serious competition.

And it enabled us to build these beach heads in some of the most important, I think, markets in the country. And so if you live here, you know kind of what markets and the dynamics are, and you're local, and I think being local has a huge advantage. You really know kind of what's going on, and so I think a lot of this was, you know, we always believed there would be big companies trying to come after this space, and there are now, but again, years ago we kind of planned for this, and I think that was very, very important and strategic, so –

Spencer: Interesting. How very Seattle. I like it.

Nick: Yeah. One of the last markets we ever launched, by the way, was the Bay Area, on purpose, like, years, and so by the time anyone woke up in the Bay Area, we were already pretty deep in many markets, like I think where you live in LA, it's a massive market for us.

Spencer: Yeah.

Nick: But that was one of the earliest markets we launched, and so San Francisco actually came a lot later.

Spencer: That's interesting. I mean most tech companies obsess over the number of Recode and TechCrunch mentions that they get, and you've taken a pretty – a very different approach. Okay, so here we are today, late 2018. You're building out your strategic plan for 2019, 2020, and beyond. Put us in your shoes. What are the things that you as the CEO and the founder face? What do you worry about? What's top of mind for you?

Nick: Yeah. So I think a few things. So, one is just scale and structure. And so when you're small, you don't need a lot of structure, because you're all sitting together. Everyone's aligned and understands, but as you fast forward over the next number of years and you've seen this movie more than I have, but you need that.

You need to get ahead of it. You need to kind of lay out mile markers that help everyone be aligned on where they're going. You need to be able to bring in more leadership that's also seeing the moving, so that's a lot of what's top of mind for me, is continuing to elevate my team and the leadership team to help us on the next chapter of growth. I think in many ways I always say that we're Amazon in the book phase. We are nowhere near where I see this company going.

So how do we start to layer in other things that we think are game changing to the business, and so I think there's multiple things that we have incorporated that have been proven, but there's also a lot of things that we've built as a company that we pioneered that no one else has done. And I think that's really critical, so like an example would be all the things we do around trust and safety. So early on, we built out our TruYou program, and we did it because we knew trust really mattered. We're bringing two people together face-to-face.

Well, who is the person that you're actually engaging with? And so how TruYou works is you can opt in for it. First step is you scan an ID. Second step is we ask you to take a selfie, and then we actually do some image recognition, and match that. If you do it, you have a really prominent badge on your profile that says you're a TruYou member, and that's a big endorsement, we think, in the community.

Spencer: It's pretty much everything that Craigslist is not.

Nick: Yeah, they didn't do that, or where do you wanna meet? That's a logistic challenge, and people go back and forth on that. We try to make that simple, so we leverage natural language processing. We actually suggest meetup locations, and as you've seen, we have this in this lobby. We have thousands of these meetup locations around the country, in retail stores, in police parking lots. That's something, again, that we pioneered. We kinda just said, “We wanna make it easier and find well-lit locations to have people transact," and so that's another thing that I think we focused on and we said, “Trust matters, and we're gonna do something that hasn't been done before."

Spencer: Do you find competitors now trying to drop behind that and use those spaces and –

Nick: Not, I think, to the degree that we do. I think that it's easy to say, “Oh, yeah, we care about trust," but I think you have to really kind of look at how much investment and time are you really focused, and we really – it's a core part of our team and our company's trust, so –

Spencer: So for listeners who are scaling their own company and thinking about how to take their company to the next stage, I guess one of the things that I'm hearing is you're very deliberate and thoughtful about this. You're not just a boat kind of letting the waves take you in one direction or another. You're trying to be really circumspect about what do I need to position the company for success over the next couple of years? And what do I need from my management team? What do I need for me? I mean you're probably asking yourself, how do you need to change as a CEO?

Nick: Yeah.

Spencer: I mean, at least when I was at – when my company was at your size, I was in the process of changing things, like what meetings do I go to? How do I communicate? What input do I give? So when you're 30 employees, 50 employees, 100 employees, the CEO, or other executives that doesn't even figure, but as the company gets bigger, I've had to change the way I communicate. Does this resonate? Is this –

Nick: Totally.

Spencer: Yeah, okay.

Nick: [Laughter] Yeah. I'm going exactly through this metamorphosis right now. Yeah, and I think the – sometimes I miss the days when we used to sit at one table with 20 people.

Spencer: Right.

Nick: Like you didn't have communication challenges. Everyone knew what you were doing. The downside, you can kind of limp along at that stage and do one thing. As you get bigger, alignment and communication becomes the challenge, and you have to over-index on that. And so I've had many mentors tell me the same thing. You need to repeat yourself, and again, I feel like I'm treating people like children, but I realize, “Hey, wait. You have new people here. They haven't heard the same message."

Spencer: Yep.

Nick: I find lately I'm kind of evolving into more of a coach role too, where I'm trying to help other people do the same, where they'll get frustrated and say, “Well, I already said this to Bob," and I said, “Yeah, but you need to say it again. We're evolving. Just make sure it's top of mind." And so that's one. I'm very focused on my calendar and my time and wonderful people on my team that are helping me to kind of manage my time, but I'm also – I'm looking at it now and I'm already mapping out next year.

I'm like, “How do I wanna be spending my time?" So I'm trying to be very thoughtful and deliberate on how I want that to change, and then what meetings I need to be in, and how I need to be in them. I think how I communicate, same thing, where words matter. One word – I've got – you're kind of screwed either way sometimes, and I'm like, “Man, I said that one thing and it made that person upset. Now I kinda wanna follow up and say, 'Hey, you know what? Let me elaborate a little bit more.'"

Spencer: Yeah.

Nick: I think part of the challenge also with communication is I don't have a lot of time in a day. I don't have time to read big decks. I don't have time to go into e-mails. I don't have time to explain for 30 minutes what I mean. I have to be succinct and I need information presented to me that's succinct so I can make an informed decision. So I think that's really happened a lot more in the last year, just being sensitive to my time a bit.

Spencer: We've experimented with different decision making rubrics. LinkedIn uses rapid. There's another one called RACI, R-A-C-I, or something. They're all different acronyms for things that basically say when you're trying to make a decision, determine up front who's the decision maker, who provides input, who needs to be informed, et cetera.

Nick: Yep.

Spencer: Because there are a lot of things, as we've grown, that it's just not clear whose decision it is. Is it my decision? Is it someone's decision? I don't know. Nobody knows.

Nick: Yeah.

Spencer: And we definitely struggle with this. On the communication thing, what I've done is I've tried to make a habit of explaining who is – when these words come out of my mouth, or through my keyboard, or my phone, in what capacity am I saying it? I'll be like, “I'm giving this feedback just as a user of the products. Just take it for – as one person's input."

I'm saying, or I'm saying this as the CEO, “Go do it," or I'm saying it as the, you know, someone that's providing input to you who's gonna go make the decision here, and this is just my advice, do whatever you want. And like, giving that context is helpful, mostly helpful, well, certainly helpful for the recipient, but also helpful for me as well, to like, remind myself of – in what form, in what context am I providing this input [crosstalk] that's helpful? Let's just say five years from now, OfferUp doesn't achieve the success, its destiny that you think it's on the path of. What went wrong? What do you think happened?

Nick: I always say that the problems are internal, not external. I believe that, again, I obsess over shaping culture, I think, and developing people, and helping the team to evolve. So I think that's a challenge. It's even harder, rapid growing companies, especially these days, where if you think about companies and financing and the time horizons a decade ago, you could go for years and do, like – there's just more, faster, and I think my obsession is really trying to help elevate leadership and shape culture and really make sure the right people are at this company and are thinking long term.

And I think that's it. I like to think of our phase as the awkward teenage years where we're not quite the adult yet. We've got acne. Our voice is cracking. We're tripping sometimes. So how do we kind of best get through that and kind of hit our stride and really be high performing? I think we're just kind of in that phase. So I think that's the biggest thing I think about.

Spencer: You're an engineer, and you created the product in your own –

Nick: I wouldn't say I'm an engineer.

Spencer: No?

Nick: More designer product guy I would say. I'm a terrible – I coded on the web, but I'm a terrible developer, so –

Spencer: Okay, so you're a product person?

Nick: Yeah, more product.

Spencer: And you created the product in your likeness to solve a problem that you had.

Nick: Sure.

Spencer: How do you think about your ongoing connection to the product? As the company gets bigger, do you decide to step back a little bit from the product and let others exhibit more product ownership so that you can focus on some other things, or is product – is OfferUp you and you will always be OfferUp from a product standpoint?

Nick: That's a good question. So I would say my obsession and where I wanna kinda evolve is I think I'm really good at the end-to-end experience, and so the first product I designed, and I didn't design in a vacuum. I would draw things in Photoshop. I'd ask my wife on the couch, and she's watching TV. She got sick of me showing her designs, and I said, “Okay. I'm gonna go out and just start to talk to people." So I talked to friends and family. I would go talk to local merchants. “What do you think about this?"

And I would constantly get feedback, and I find I've been doing that ever since, and even today, I'm probably one of the top people in the company to find bugs in the product. I definitely have a lot of opinions about the experience and it only gets more complex as the business evolves, so I don't think I'll ever stop obsessing over the end-to-end experience. And I think just given my visibility and what I understand about the market, I think that's my strength, and I think that's what I bring to the table. Where I think I can evolve is going from, you know. I don't have to be in product meetings and going deep for hours on end.

I think that's things I'd be willing to kind of give up, but I do really care about the end-to-end experience, because I think if you stop focusing on that, it becomes really – it can become spaghetti and not great. And I do believe what I tell our team is, “We're not building a marketplace. We're not building an app. We're building an experience," and I don't think there's many things in this world where you think of that.

I think of the iPhone as an experience. I think of the Tesla as an experience. It is something that kinda grabs you, and it's like, you can't explain exactly what it is, but it's so elegant and easy and it just becomes part of your life that it just – you use it every day. And so I think that's my obsession. I think that's where I'm the strongest, which means I gotta give up other parts of the business.

Spencer: And at 250-something employees, have you already started letting go of some of the detail on product, or that you were forward-looking in what you just ______.

Nick: To some degree, but I like to do more, because I think we're definitely more complex now. We have more lines of revenue. We have more things that we're getting into, and it's just not scalable for me, so it's again where I'm looking around at the leadership team and saying, “Okay, great, but we also have gaps and roles we wanna fill."

Spencer: I remember the woman that runs product at Zillow, for Zillow products, when I started pulling back, as you're describing, from some of the detailed product decisions, and I started delegating more, as you need to, to free up more time to do other things. And she said to me – there was a particular decision that I delegated to her and to the team to make. And they made a decision that I didn't agree with. It kinda came out the other end in the product, I don't know, three, six months later. It was a tiny little thing. I don't even remember what it was, and I remember when I went back to her and was kind of, you know, giving her a hard time about it, she was like, “When you delegate a decision, you need to accept the outcome."

And I was like, “Oh, yeah. I guess she's right. I guess I do need to accept the outcome, whether I like it or not." So I mean what I found at this stage, from like, 200 to 400 or 500 employees, as you're going to experience soon, as I started pulling back from some of the product details, that was definitely the right decision. It was the right thing for the company.

Well, congrats on the success of OfferUp so far. I'm excited. I mean, the last time we got together without microphones, I think you were like, 50 employees and the company was a lot smaller. It's amazing to come in today, and see new office space, and an incredibly vibrant culture, and the success that you've had, and I'm excited to see what's next for you.

Nick: Thanks. Well, thanks for having me.

Spencer: Thanks, Nick.

The post OfferUp CEO Nick Huzar on Evolving as a Leader appeared first on Office Hours.

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This LA Startup Just Raised $49M for the Chaos Behind High-Stakes Lawsuits

🔦 Spotlight

Happy Friday, Los Angeles.

In a startup market obsessed with AI copilots and productivity promises, Steno just raised $49M for something far less glamorous and probably far more durable: the machinery behind depositions, transcripts, and high-stakes litigation. It is the kind of business that sounds boring right up until you realize how much money, urgency, and operational chaos moves through it every day.

The LA legal tech company, which positions itself as both a court reporting service and a software platform, said the Series C was led by Savano Capital Partners, with continued backing from First Round Capital, The Legal Tech Fund, and other strategic investors. Steno plans to use the funding to expand geographically, deepen its reach into the AmLaw 200, and roll out the next evolution of its AI-powered Transcript Genius product.

Steno’s bet is not that lawyers want another standalone AI tool dropped into an already messy workflow. It is betting that the real opportunity is owning more of the process itself, from court reporting and remote depositions to transcript analysis and financing, then using software to make the whole machine run faster.

That is what makes this story interesting: Steno is building around legal work that is already happening, already expensive, and already painful. In a market full of companies trying to invent new behavior, there is something compelling about one focused on making an old, high-friction system work better.

Now, onto this week’s LA venture deals, fund announcements and acquisitions.

🤝 Venture Deals

      LA Companies

      • SIGMAS raised a $1M seed round co-led by Mucker Capital and HongShan Capital as the performancewear brand expands from marketplace incubation into a broader direct-to-consumer push. The company, which was incubated through SHEIN’s Supply Chain as a Service program, said it has already launched more than 600 men’s activewear SKUs and plans to use SHOPLINE to support its owned-channel and international growth. - learn more
      • Solace received an initial $50,000 investment from Audos as part of the launch of the Audos Publishing House, a new platform aimed at helping everyday entrepreneurs build AI-native businesses. The Santa Monica startup, created by founder Sarah Gwilliam after losing her father, is building an AI-powered grief coaching platform focused on active coaching, guided journaling, and memory preservation, with Audos also offering up to $100,000 in non-dilutive funding through a 15% revenue-share model. - learn more
      • Triangle Health emerged with $4M in pre-seed funding after cofounder Arun Verma turned his own brain cancer diagnosis into the inspiration for the company’s AI-powered health navigation platform. The Pasadena startup says its product helps patients gather complete medical records, surface treatment options and clinical trials, and review findings with a licensed physician, with backing from investors including Kevin Mahaffey, Hannah Grey, Antler Criticality Fund, John Hering, Marty Tenenbaum, and Kestrin Pantera. - learn more
      • Primestor secured a $10M equity investment from New Jersey Community Capital for The Walk, its mixed-use development in Norwalk, marking NJCC’s expansion into Southern California. The 8.2-acre project is planned to include 374 homes, 56 of them affordable, along with about 94,000 square feet of retail and restaurant space as Primestor advances a broader community-focused development effort in the region. - learn more
      • Sift raised a $42M Series B led by StepStone Group, with GV as its largest investor, bringing total funding to $67M as it builds what it calls an observability layer for hardware engineering. The El Segundo company said the funding will help scale its platform for turning fragmented telemetry from spacecraft, defense systems, autonomous vehicles, and factories into real-time, AI-ready data. - learn more

                      LA Venture Funds

                      • Emmeline Ventures participated in Prickly Pear Health’s follow-on pre-seed round, helping bring the company’s total funding to more than $600,000 alongside existing backers Bayless Ventures and AZ Venture Capital Inc. Prickly Pear said it will use the new capital to accelerate user growth and expand deployments of its AI-powered women’s brain health platform with mental health practices, beginning in Arizona, after surpassing 2,000 active users since launching in 2024. - learn more
                      • Riot Ventures participated in Shield AI’s new financing round, which values the defense tech company at $12.7B and accompanies its planned acquisition of software simulation company Aechelon. Shield AI said the capital will support growth across its autonomy software and broader defense platform, while the Aechelon deal is meant to strengthen its simulation and training capabilities as it scales AI-powered systems for military customers. - learn more
                      • Starshot Capital participated in Rumin8’s latest funding round, which added a new $3M commitment from AgriZeroNZ as the company pushes toward commercializing its methane-reducing livestock feed additives in New Zealand. Rumin8 said the new backing will help support pivotal trials and move it toward final registration, with first commercial sales in New Zealand targeted for 2027. - learn more
                      • Compa Capital participated in Kairos Labs’ $2.4M seed round, which was led by 6th Man Ventures and also included Lattice and Advancit Capital. The company said the funding follows a beta that generated more than $300M in notional swap volume and will help support the launch of its permissionless, non-custodial interest rate swap protocol on Ethereum mainnet and Base in the coming weeks. - learn more
                      • Morpheus Ventures co-led Applied Atomics’ oversubscribed $8.3M seed round, backing the company alongside Transition as it works to deploy full-stack nuclear power plants for industrial infrastructure customers. Applied Atomics said the funding will help bring test and integration stands online, strengthen its supply chain, and move toward deployment, with plans over the next 12 months to secure first host sites and customer agreements, advance NRC Part 50 licensing engagement, and push toward first commercial construction. - learn more
                      • Upfront Ventures participated in Neon’s financing round, which brought in more than $25M in combined equity and credit from Lightspeed Venture Partners, Upper90, and other investors. The company said the new capital brings total funding to nearly $27M following a $1.5M pre-seed led by Upfront, as Neon scales its platform for paying users for anonymized conversation data and supplying that audio and video data to AI labs. - learn more
                      • Helios&Partners participated in WhatIsMyAEO.com’s strategic investment round, backing the platform as it builds free AI-driven brand visibility diagnostics for answer engines like ChatGPT, Gemini, and Perplexity. The company said the funding will help scale its open-source efforts and expand access to tools that measure brand citations, sentiment, trust signals, and technical AI-readiness as zero-click search becomes more common. - learn more
                      • WndrCo participated in Moda’s $7.5M seed round, which was led by General Catalyst and also included Pear VC, as the company publicly launched its AI design platform. Moda said its product gives professionals a brand-aware design agent that can generate fully editable presentations, social posts, and other visual assets, and that thousands of beta users are already using it for materials like investor decks and marketing collateral. - learn more
                      • Clocktower Technology Ventures participated in Bliss’s R$ 57 million, or about $11M USD, Series A round, which was co-led by Kfund and Grupo Bradesco and also included Actyus. Bliss said the funding will help expand its AI-powered platform for health insurance brokers beyond São Paulo into cities including Rio de Janeiro and Brasília, while adding to its product and technology teams as it works to modernize health-plan sales for SMEs in Brazil. - learn more
                      • MAGIC Fund participated in Guangzhou Weixiao Technology’s new strategic financing round, joining IDG Capital, 37 Interactive Entertainment, and miHoYo in the investment. The company said the new capital will be used to accelerate product development and market expansion, though it did not disclose the size of the round. - learn more
                      • Mantis Venture Capital participated in Doctronic’s $40M Series B, which was co-led by Abstract and Lightspeed Venture Partners and also included Union Square Ventures, Seven Stars, and Tusk Ventures. The company said the new funding follows rapid growth to more than 300,000 weekly users and eight-figure annualized revenue, and will help it expand its AI-powered care platform after becoming the first AI-native system authorized to autonomously renew prescriptions under Utah’s AI Learning Lab. - learn more

                                        LA Exits

                                        • RezyFi is being acquired by ECGI Holdings in a $25M transaction that would bring a 29-state licensed mortgage origination platform and about $140M in annual mortgage funding onto ECGI’s platform. ECGI said the deal is meant to pair RezyFi’s lending infrastructure with its mortgage tokenization strategy, following a pilot program to tokenize up to $10M of residential mortgage loans and as it prepares to launch an investor portal. - learn more
                                        • Salt & Stone is being acquired by Advent, which signed a deal to buy a majority stake in the Los Angeles premium body care brand. The company said the partnership will help fuel its next phase of global growth after surpassing $165M in revenue in 2025, with founder and CEO Nima Jalali staying on as an equity holder and remaining in leadership alongside President Meagan Rosson and CMO Abby Tellam. - learn more
                                        • Victory Holdings signed a definitive agreement to acquire Dunn & Groux Beverage Holdings, marking its move into the functional beverage market. The company said the deal will make DGBH a wholly owned subsidiary and give it a platform to build and scale multiple beverage products around patented fulvic acid formulations and a distribution-first model, with initial expansion focused on California, Arizona, and Texas. - learn more

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                                                                  Arc’s $50M Push Into Commercial Maritime

                                                                  🔦 Spotlight

                                                                  Hey LA,

                                                                  As the city pushes through a record-breaking March heat wave, one of the week’s most interesting LA startup stories came with a reminder that climate tech gets a lot more real when it leaves the pitch deck and hits the water. In Arc’s case, that means tugboats.

                                                                  LA based Arc, founded in 2021 by a team of SpaceX alumni, announced a $50M Series C this week, led by Eclipse, a16z, Menlo Ventures, Lowercarbon, Necessary Ventures, and Offline Ventures, as it pushes deeper into commercial maritime. The raise follows Arc’s $160M contract with Curtin Maritime to deliver eight hybrid-electric tugboats beginning at the Port of Los Angeles, with the first expected to hit the water this year.

                                                                  Imsage Source: Arc

                                                                  That feels notable not just because of the funding, but because it marks a clear evolution in Arc’s business. What started as a premium electric boat company is now making a serious push into the industrial side of maritime transportation, with ambitions spanning tugboats, ferries, and defense vessels.

                                                                  There is also something fitting about this story happening in Los Angeles. This is a city known for spectacle, but Arc is building in a category where performance actually has to perform. No amount of branding can fake a working tugboat, and that is exactly why this moment feels worth paying attention to.

                                                                  Now, onto this week’s LA venture deals, fund announcements and acquisitions.

                                                                  🤝 Venture Deals

                                                                      LA Companies

                                                                      • Talino closed a $7.5M Series A led by Chemonics International, with participation from Mt Sinai Capital and Gulf Blvd, as it shifts from a venture studio into what it calls a global fintech foundry. The company said the new funding will help build an API-first cross-border payments infrastructure layer connecting the U.S. with emerging markets, starting with the Philippines, where it is targeting faster, more compliant financial product launches and modernizing legacy rails with stablecoin and real-time payment capabilities. - learn more
                                                                      • PADO AI raised a $6M seed round led by NovaWave Capital to expand its AI-powered orchestration software for mid-market colocation data centers. The company said the funding will support product delivery and global growth as it helps operators better manage power, compute, cooling, and distributed energy resources to increase GPU utilization and maximize “compute per megawatt” without requiring major new infrastructure buildouts. - learn more
                                                                      • Meadow Memorials raised a $9M Series A led by Lachy Groom and Haystack to expand its software-enabled funeral planning platform, which lets families arrange services online or by phone. Founded in 2024 by former Stripe executive Sam Gerstenzang and Emma Gilsanz, the company says it is using a real-estate-light model to offer lower-cost funerals as it expands beyond California into states including Texas, Washington, and Arizona. - learn more

                                                                                      LA Venture Funds

                                                                                      • Anthos Capital participated in Bluesky’s $100M Series B, which was led by Bain Capital Crypto and also included Alumni Ventures, Bloomberg Beta, Knight Foundation, and True Ventures. The company said the round gave it the resources to scale both the Bluesky app and the broader AT Protocol ecosystem, which it says has grown to more than 43 million users and now supports a fast-expanding network of third-party apps and developers. - learn more
                                                                                      • Navigate Ventures participated in VerbaFlo’s oversubscribed $7M seed round, which was led by Pi Labs and also included Haatch and Old College Capital. VerbaFlo said it plans to use the funding to scale its conversational AI platform for real estate operators, building on traction across more than 200,000 units and expanding further into markets including the U.S., Middle East, and Australia. - learn more
                                                                                      • March Capital participated in Xage Security’s $15M equity financing round, which was led by Piva Capital as the company posted 81% year-over-year revenue growth and expanded its Zero Trust platform for AI and critical infrastructure. Xage said the funding, which closed in December 2025, will support go-to-market expansion and continued product innovation, including new AI security capabilities, as demand grows across sectors such as energy, manufacturing, utilities, transportation, and defense. - learn more
                                                                                      • B Capital led Knox Systems’ $25M Series A, backing the company’s push to scale what it says is the largest AI-managed federal cloud and dramatically shorten the FedRAMP authorization process for software vendors. Knox said the new funding will help accelerate growth after its June 2025 seed round, with the goal of helping customers achieve FedRAMP authorization in as little as 90 days at roughly 90% lower first-year cost, while expanding adoption across both government and commercial environments. - learn more
                                                                                      • WndrCo participated in Tenkara’s $7M round, which was led by True Ventures as the company builds AI-powered operations agents for American manufacturers. Tenkara said it is creating tooling to help factories handle sourcing and operational work more efficiently at a time of rising supply-chain pressure, with backing from a broader investor group that also included Articulate Capital, Night Capital, HF0, SF1, and Transpose Platform. - learn more
                                                                                      • Aurora Capital participated in Niv-AI’s $12M seed round, backing the startup alongside Glilot Capital, Grove Ventures, Arc VC, Encoded VC, and Leap Forward as it emerged from stealth. Niv-AI is building sensors and software to measure millisecond-scale GPU power surges and help data centers use electricity more efficiently, with plans to deploy its system in a handful of U.S. facilities within the next six to eight months. - learn more
                                                                                      • Clocktower Technology Ventures participated in Fuse’s $25M Series A, which TechCrunch reported was led by Footwork, Primary Venture Partners, NextView Ventures, and Commerce Ventures, with Fuse also naming Clocktower Ventures among its backers. The company said it plans to use the funding to expand its AI-native loan origination and account opening platform for credit unions, building on traction with more than 100 customers and a $5M “rescue fund” aimed at helping institutions switch off legacy systems. - learn more
                                                                                      • Kairos Ventures participated in Alomana’s €4M seed round, which was led by CDP Venture Capital and also included Founders Factory, Italian Angels for Growth, Club degli Investitori, and others. Alomana said it will use the funding to strengthen its enterprise AI platform, add more capabilities for autonomous workflow automation, and support larger deployments across Europe as demand grows in sectors like finance, manufacturing, and pharma. - learn more

                                                                                                        LA Exits

                                                                                                        • Optimal’s Entertainment Media division is being acquired by Capstone Point Holdings, with the business set to operate under its legacy name, Optimad Media, following the deal. The transaction keeps founder Kevin Weisberg in place to lead the company from Los Angeles, while giving Optimad more backing to expand its entertainment media planning, buying, and prints-and-advertising investment capabilities across theatrical, streaming, and broadcast campaigns. - learn more

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                                                                                                                                  Inside Tinder’s Biggest Product Shift in Years

                                                                                                                                  🔦 Spotlight

                                                                                                                                  Hello Los Angeles,

                                                                                                                                  Despite headlines about swipe fatigue and dating app burnout, Tinder believes the problem isn’t that people are tired of dating. They’re tired of bad dating experiences.

                                                                                                                                  So it felt fitting that Tinder chose the El Rey Theatre in Los Angeles, a venue known for reinvention, to make its case that the category is far from over.

                                                                                                                                  Walking into the El Rey, it was clear Tinder wanted this to feel less like a tech launch and more like a cultural moment. Music was bumping, the room buzzed with chatter and excited energy, red light beams cut through the room, and chandeliers glowed overhead.

                                                                                                                                  At Tinder Sparks 2026: Start Something New, Match Group and Tinder CEO Spencer Rascoff took the stage to outline what the company calls the biggest evolution of the app in years. Tinder remains the largest dating app in the world, used by tens of millions of people across more than 185 countries and responsible for billions of matches every year.

                                                                                                                                  Match Group and Tinder CEO Spencer Rascoff

                                                                                                                                  Rascoff framed the shift around a broader cultural reality. In a world where people increasingly interact with machines, technology and AI, the need for real human connection has not gone away. If anything, Tinder believes it has only grown stronger.

                                                                                                                                  To respond to that shift, Tinder says it’s focusing on what it calls “sparks,” the moments when a match actually turns into a real conversation.

                                                                                                                                  As Rascoff put it on stage:

                                                                                                                                  “We are not optimizing for swipes or likes. We are optimizing for sparks.”

                                                                                                                                  That philosophy is shaping a wave of new features discussed throughout the keynote by Tinder’s leadership team, including Mark Kantor, SVP and Head of Product, Yoel Roth, SVP of Trust & Safety, and product leaders Claire Watanabe and Hillary Paine.

                                                                                                                                  Image Source: Tinder

                                                                                                                                  Among the updates are Music Mode, which lets users connect through shared songs and artists, and a new Astrology Mode that highlights compatibility between zodiac signs. Tinder is also leaning further into social dating with Double Date, a feature that lets friends match with other pairs together. The feature is already gaining traction with Gen Z users, reflecting a broader shift toward more social and lower-pressure ways to meet people.

                                                                                                                                  Image Source: Tinder

                                                                                                                                  Tinder is also redesigning profiles to help users express more personality. New tools can surface stronger photos from a user’s camera roll, improve lighting, and highlight interests more visually, while integrations with platforms like Spotify, Duolingo and the restaurant app Belly bring more of a person’s real life into their profile.

                                                                                                                                  Image Source: Tinder

                                                                                                                                  But the most interesting experiment might be happening right here in LA. Tinder is launching IRL Events in the city, letting users browse and RSVP to real-world meetups directly through the app. Think coffee shop raves, trivia nights and pickleball tournaments. The idea is simple. Dating works better when it feels like a social activity instead of an interview.

                                                                                                                                  Image Source: Tinder

                                                                                                                                  Under the hood, Tinder is also leaning more heavily on AI to improve recommendations. New tools like Learning Mode and Chemistry aim to better understand what users are actually looking for and surface stronger matches faster. At the same time, the company is investing heavily in safety, expanding Face Check, a facial verification system designed to reduce bots and impersonation accounts.

                                                                                                                                  Closing out the presentation, Melissa Hobley, Tinder’s Chief Marketing Officer, zoomed out from the product roadmap to the brand’s cultural footprint, noting that Tinder is mentioned in billions of TikTok videos and has become shorthand for how younger generations talk about dating.

                                                                                                                                  Taken together, the updates represent Tinder’s most significant evolution in years. And judging by the energy inside the El Rey this week, the company believes the next chapter of dating will be more social, more expressive and more intentional. It’s a shift being shaped right here in Los Angeles, and one that could redefine how the next generation meets.

                                                                                                                                  Now onto this week’s LA venture deals, fund announcements and acquisitions.


                                                                                                                                  🤝 Venture Deals

                                                                                                                                      LA Companies

                                                                                                                                      • Hurray’s GIRL BEER raised a $5M seed round led by Lakehouse Ventures, with participation from Spice Capital plus CPG insiders and entertainment executives, as it accelerates national expansion. The LA-based flavored light beer brand says it has already landed retail placements at Walmart, Kroger, Albertsons, and Whole Foods, and plans to use the new capital to deepen distribution, enter new markets, and ramp up marketing, alongside a rollout of seven new flavors. - learn more
                                                                                                                                      • Freestyle closed a $10M Series A led by Silas Capital, with significant participation from ECP Growth. The company also noted continued backing from existing investors including Mucker Capital, Adapt Ventures, and Superangel, as it scales its premium diapers and wipes business following nationwide launches at Walmart and Target. - learn more
                                                                                                                                      • MAX BioPharma announced a new investment and partnership with Technomark Life Sciences to advance Oxy210, its oxysterol-based, orally available drug candidate for MASH. Technomark is joining as a strategic lead investor by participating in MAX BioPharma’s $13M Series A to fund a Phase 1a/1b first-in-human study, and the companies say the collaboration will pair MAX’s therapeutic platform with Technomark’s drug development experience. - learn more

                                                                                                                                                      LA Venture Funds

                                                                                                                                                      • B Capital participated in ORO Labs’ $100M Series C, which was led by Brighton Park Capital and Growth Equity at Goldman Sachs Alternatives, as the company pushes deeper into what it calls agentic procurement orchestration. ORO said the new funding follows 300% revenue growth over the past year and will be used to speed up product development, expand go-to-market and customer teams globally, and broaden enterprise use cases across procurement, finance, legal, and supply chain workflows. - learn more
                                                                                                                                                      • Aliment Capital participated in Tropic’s oversubscribed $105M Series C, which was co-led by Forbion’s Bioeconomy Fund and Corteva as the company scales the commercial rollout of its gene-edited tropical crops. Tropic said the funding will help expand production of its banana portfolio, accelerate its banana and rice pipelines, and support entry into additional climate-resilient crops, following the 2025 launch of its first new banana varieties in more than 75 years and demand that is already outpacing supply. - learn more
                                                                                                                                                      • B Capital doubled down in Axiom’s $200M Series A, which valued the company at more than $1.6 billion and was led by Menlo Ventures. Axiom said the new funding will help it extend its lead from formal mathematics into what it calls “Verified AI,” with plans to apply its technology beyond mathematical discovery into software and hardware verification. - learn more
                                                                                                                                                      • WndrCo participated in Quince’s $500M Series E, a round led by ICONIQ that values the manufacturer-to-consumer retail platform at $10.1B post-money. Quince says it will use the fresh capital to accelerate growth and global expansion of its proprietary M2C operating system, which uses AI-driven demand forecasting and direct factory partnerships to cut traditional retail markups. Other investors in the round included Basis Set Ventures, Wellington Management, MarcyPen Capital Partners, Baillie Gifford, Notable Capital, and DST Global. - learn more
                                                                                                                                                      • Matter Venture Partners co-led Eridu’s oversubscribed Series A, part of $200M+ raised as the AI networking startup emerges from stealth to tackle what it calls the “network wall” bottleneck in AI data centers. - learn more
                                                                                                                                                      • Matter Venture Partners participated in Rhoda AI’s $450M Series A, backing the startup as it comes out of 18 months in stealth with FutureVision, a video-predictive control platform aimed at helping robots operate reliably in messy, real-world industrial environments. The round included a large syndicate of investors, including Capricorn Investment Group, Khosla Ventures, Leitmotif, Mayfield, Premji Invest, Prelude Ventures, Temasek, Xora, and John Doerr, and the company says the funding will accelerate development and industrial deployments. - learn more
                                                                                                                                                      • Halogen Ventures participated in Rasa Legal’s $5M late-seed round, backing the company’s push to scale its tech-enabled criminal record sealing and expungement service nationwide. The round was led by Rethink Education with participation from Social Finance and the Richard King Mellon Foundation, and Rasa says the funding will help it expand leadership, speed product development, and grow beyond its current footprint (Utah, Arizona, and Pennsylvania). - learn more
                                                                                                                                                      • Halogen Ventures participated in Nyad’s $1.3M oversubscribed pre-seed round, backing the Birmingham-based startup as it launches an AI decision-support tool for wastewater treatment operators. The round was led by Boost VC with participation from Draper Associates, Ollin Ventures, Apprentis, First Avenue Ventures, and strategic angel Troy Wallwork, and Nyad says it will use the funding to hire, grow customers, and keep building the product as retirements thin the wastewater workforce. - learn more
                                                                                                                                                      • MANTIS VC participated in Scanner’s $22M Series A, which was led by Sequoia Capital and also included CRV, as the company builds a high-speed security data layer for AI-driven threat investigation. Scanner said the funding comes as security teams at companies like Notion, Ramp, and BeyondTrust use its platform to search years of log data quickly and power agentic workflows that help hunt threats, triage alerts, and investigate incidents more efficiently. - learn more
                                                                                                                                                      • Chapter One participated in Zcash Open Development Lab’s $25M+ seed round, joining a syndicate that included Paradigm, a16z crypto, Winklevoss Capital, Coinbase Ventures, Cypherpunk Technologies, and Maelstrom. The new company, formed by former Electric Coin Company team members, said the funding will support continued development of privacy-focused infrastructure for the Zcash ecosystem, including its self-custodial wallet and broader shielded payments tooling. - learn more
                                                                                                                                                      • CIV participated in Isembard’s $50M Series A, which was led by Union Square Ventures and also included Tamarack Global, IQ Capital, and existing backer Notion Capital. Isembard said the new funding will help it open 25 AI-powered factories by the end of 2026, expand its engineering team, and enter Germany, France, and Ukraine as it scales software-driven component manufacturing for aerospace and defense customers. - learn more
                                                                                                                                                      • WndrCo participated in Crafting’s $5.5M seed round, which was led by Mischief as the startup launched general availability for Crafting for Agents. The company said the new capital will support its push to become core infrastructure for AI-driven engineering teams, giving agents secure access to production-like environments so they can validate, test, and ship code inside complex enterprise systems used by customers including Brex, Faire, and Webflow. - learn more

                                                                                                                                                                        LA Exits

                                                                                                                                                                        • Hireguide has been acquired by HireVue, which is buying Hireguide’s underlying technology and bringing the Hireguide team into HireVue’s product org. HireVue says the deal accelerates its agentic AI roadmap, starting with a voice-based AI interviewer designed to help employers qualify candidates earlier and run smarter, more conversational hiring workflows. - learn more
                                                                                                                                                                        • Ultracor has been acquired by Applied Aerospace & Defense, bringing the California-based maker of specialized honeycomb core materials into Applied’s advanced composites platform. Applied says the deal supports its selective vertical integration strategy by strengthening supply chain control and boosting speed and capacity for space and defense programs, from satellites and missiles to antennas, radomes, and next-gen aircraft. - learn more

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