Openpath Announces $36 Million Raise to Make Keycards Obsolete in the COVID Era

Sam Blake

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

Openpath Announces $36 Million Raise to Make Keycards Obsolete in the COVID Era

Openpath, the L.A-based tech company trying to make keycards a thing of the past, announced Thursday that it has raised $36 million in its second institutional funding round. The deal, led by Greycroft, was finalized earlier this year. It takes the total funding Openpath has raised to $63 million, company co-founder and president James Segil told dot.LA.


Segil and his long-time business partner Alex Kazerani are a serial entrepreneur duo that set their sights on keycards about four years ago.

James Segil (L) and Alex Kazerani are a serial entrepreneur duo that has formed several L.A. startups

"Everything about these things sucks," Segil says, looking at a photo of the familiar, mostly white rectangles that scan many an employee into office buildings and elevators. The flaws he points to include the administrative work around printing, issuing and revoking keycards; the physical waste they create; and perhaps worst of all, that they're not very secure. Segil notes that keycards mostly rely on decades-old RFID technology rather than more modern encryption methods, and can be copied for a few bucks at the neighborhood Ralph's supermarket.

Openpath allows for touchless entry that leverages the supercomputers in most of our pockets and purses

Kazerani and Segil are betting that the supercomputer in most of our pockets or bags could be a much better option. They patented a "triple unlock" technology, wherein a door-sensor can establish a "handshake" with a mobile phone's cell, wi-fi or bluetooth signal. The receiver activates with a user's hand-wave, picks up one of the signals, discards the other two, and assesses whether the phone it's coming from belongs to somebody with the credentials needed to enter.

Segil says using all three signals helps the Openpath system to work 99.9% of the time.

And in the post-COVID world, Openpath's touchless entry system has become all the more useful. From work, retail, schools and churches, to gyms, hospitals, and doctors' offices, reducing the need to touch common surfaces will be a key element of readying spaces for people to return, Segil says. He adds that interest has grown during the pandemic.

The system can also enforce safety protocols — for instance, by suspending someone's entry credentials if they fail a health attestation, or controlling occupancy by limiting the number of people that can enter a room.

In addition to doors, Segil notes, Openpath's technology can also work for parking lots, elevators, turnstiles, and lobby check-ins.

Openpath charges an upfront fee for hardware and installation, then a recurring subscription fee for the cloud-enabled software. Pricing depends on the number of doors and number of users.

And, Segil notes, if your phone dies or you forget it at home, you can still always knock.

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Cadence

Derek Jeter’s Arena Club Knocked a $10M Funding Round Right Out of the Park

Kristin Snyder

Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.

sports trading cards
Arena Club /Andria Moore

Sports trading card platform Arena Club has raised $10 million in Series A funding.

Co-founded by CEO Brian Lee and Hall of Fame Yankees player Derek Jeter, Arena Club launched its digital showroom in September. Through the platform, sports fans can buy, sell, trade and display their card collections. Using computer vision and machine learning, Arena Club allows fans to grade and authenticate their cards, which can be stored in the company’s vault or delivered in protective “slabs.” Arena Club intends to use the new cash to expand these functions and scale its operations.

The new funding brings Arena Club’s total amount raised to $20 million. M13, defy.vc, Lightspeed Ventures, Elysian Park Ventures and BAM Ventures contributed to the round.

“Our team is thankful for the group of investors—led by M13, who see the bright future of the trading card hobby and our platform,” Lee said in a statement. “I have long admired M13 and the value they bring to early-stage startups.”

M13’s co-founder Courtney Reum, who formed the early-stage consumer technology venture firm in 2016 alongside his brother Carter Reum, will join Arena Club’s board. Reum has been eyeing the trading card space since 2020 when he began investing in what was once just a childhood hobby.

The sports trading card market surged in 2020 as fans turned to the hobby after the pandemic brought live events to a standstill. Since then, prices have come down, though demand remains high. And investors are still betting on trading card companies, with companies like Collectors bringing in $100 million earlier this year. Fanatics, which sells athletic collectibles and trading cards, reached a $31 billion valuation after raising $700 million earlier this week. On the blockchain, Tom Brady’s NFT company Autograph lets athletes sell digital collectibles directly to fans.

As for Arena Club, the company is looking to cement itself as a digital card show.

“Providing users with a digital card show allows us to use our first-class technology to give collectors from all over the world the luxury of being able to get the full trading card show experience at their fingertips,” Jeter said in a statement.

Hosts Who Rent From “Airbnb-Friendly” LA Apartments May Not Make a Profit

Amrita Khalid
Amrita Khalid is a tech journalist based in Los Angeles, and has written for Quartz, The Daily Dot, Engadget, Inc. Magazine and number of other publications. She got her start in Washington, D.C., covering Congress for CQ-Roll Call. You can send tips or pitches to amrita@dot.la or reach out to her on Twitter at @askhalid.
LA house

L.A.’s lax enforcement of Airbnbs has led to an surge of illegal short-term rentals — even four years after the city passed a regulation to crack down on such practices. But what if hosts lived in a building that welcomed Airbnb guests and short-term rentals?

That’s the idea behind Airbnb’s new push to expand short-term rental offerings. The company is partnering with a number of corporate landlords that agreed to offer “Airbnb-friendly” apartment buildings, reported The Wall Street Journal last week. According to the report, the new service will feature more than 175 buildings managed by Equity Residential, Greystar Real Estate Partners LLC and 10 other companies that have agreed to clear more than 175 properties nationwide for short-term rentals.

But prospective hosts in Los Angeles who decide to rent apartments from Airbnb’s list of more than a dozen “friendly” buildings in the city likely won’t earn enough to break even due to a combination of high rents, taxes and city restrictions on short-term rentals. Rents on one-bedroom apartments in most of the partnered buildings listed soared well over $3,000 a month. Only a few studios were available under the $2,000 price range. If a host were to rent a one bedroom apartment with a monthly rent of $2,635 (which amounts to $31,656 annually), they would have to charge well over the $194 average price per night for Los Angeles (which amounts to $23,280 per year) according to analytics platform AllTheRooms.

Either way, residents who rent one of these Airbnb friendly apartments still have to apply for a permit through the City of Los Angeles in order to host on Airbnb.

“[..Airbnb-friendly buildings] seems like a good initiative. However, from a quick look, it seems that given the rent, Airbnb revenue wouldn’t be enough to cover all expenses if the host follows the city’s policy,” says Davide Proserpio, assistant professor of marketing at the USC Marshall School of Business.

In addition, since L.A.’s 120-day cap on short-term rentals still applies to the buildings on Airbnb’s listing platform, that greatly limits the number of longer-term guests a resident can host. Not to mention, some of the buildings that Airbnb lists have even shorter limits – The Milano Lofts in DTLA for example only allows residents to host 90 nights a year.

Airbnb’s calculations of host earnings may be greatly misleading as well, given that the estimate doesn’t include host expenses, taxes, cleaning fees or individual building restrictions. For example, Airbnb estimates that a resident of a $3,699 one bedroom apartment at the Vinz in Hollywood that hosts 7 nights a month can expect $1,108 a month in revenue if they host year-round. But the Vinz only allows hosts to rent 90 days a year, which greatly limits the potential for subletters and a consistent income stream.

Keep in mind too that since the apartment will have to serve as the host’s “primary residence”, hosts will have to live there six months out of the year. All of which is to say, it’s unclear how renting an apartment in an “Airbnb-friendly” building makes hosting easier — especially in a city where illegal short-term rentals already seem to be the norm.

https://twitter.com/askhalid

The Streamys Reveals The Disconnect Between Online Creators and Traditional Media

Kristin Snyder

Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.

tiktok influencers around a trophy ​
Andria Moore /Charli D'Amelio/Addison Rae/JiDion

Every year, the Streamy Awards, which is considered the top award show within the creator economy, reveals which creators are capturing the largest audiences. This past Sunday, the event, held at The Beverly Hilton, highlighted some of the biggest names in the influencer game, chief among them Mr. Beast and Charli D’Amelio. It had all the trappings of a traditional award show—extravagant gowns, quippy acceptance speeches and musical interludes. But, as TikTok creator Adam Rose told The Washington Post, the Streamys still lacks the legitimacy of traditional award shows.

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