Inside the 'Aggressive' Goal to Make LA Port Ships 100% Zero Emission
Los Angeles' City Council adopted an ambitious maritime resolution last week that calls on top importers like Walmart, Dole, Nike, Amazon and Home Depot on 100% zero-emissions ships by 2030, even though the technology doesn't yet exist.
Idling ships sitting off the San Pedro Bay Coast have captured national attention as a symbol of broken supply chains, but those ships are also big polluters.
Research suggests ship pollution contributes to more than 250,000 premature deaths each year around the world, and at least 1,300 premature deaths each year in Los Angeles and Long Beach. Low-income communities of color who live near the ports are especially affected.
While the city doesn't have any regulatory power over maritime rules, the move places pressure on some of the world's biggest retailers and their supply chains. The resolution asks shippers ferrying everything from televisions and cars to sofas and microwaves to "immediately adopt" existing emissions-reducing technologies, such as wind-assisted propulsion and slow-steaming.
It also calls for a broader effort to create zero-emission shipping corridors along the California coast and across the trans-Pacific trade route.
dot.LA spoke with Christopher Cannon, chief sustainability officer of the Port of Los Angeles, to discuss the resolution, and why he thinks all parties will do what they can to achieve such a drastic industry overhaul.
Port of Los Angeles Chief Sustainability Officer Christopher Cannon
dot.LA: In layman's terms what does this new resolution do?
Christopher Cannon: It really encourages the industry to move toward low carbon and zero carbon fuels as soon as possible and this is important.
We think that the move to low carbon fuels can happen pretty quickly, like in the next few years.
We see, for instance, that some of the shipping lines are talking about using methane feedstock that arrived from renewable sources starting in 2024.
The goal to get to 100% zero emission ships by 2030 is very aggressive.
Technology does not exist today to do that, but it does not mean that it isn't a good goal and an important goal, and we want to push ourselves and the maritime industry to get there.
Rapidly decarbonize the maritime shipping industry to create zero emissions corridors—we like that, and we want to create green shipping corridors. You start doing this stuff now, not waiting until zero emissions is possible. You start doing low carbon and even zero carbon elements in a shipping corridor.
Maybe not everything is fully zero [emissions], but you can have parts of it be zero. A lot of different activities can occur from the movement of cargo from one port to another: the loading and unloading, the sorting.
All the activity associated with moving that ship can be green and we can reduce the carbon footprint, we can decarbonize all of it with best management practices.
Photo courtesy of the Port of Los Angeles.
Does the city have any enforcement power, say if they adopt legislation, in this domain?
No, we don't run the ships and we don't control the ships. We don't regulate the ships. They are regulated by international bodies, but we certainly have the ability to exert influence on the shipping industry and on international regulators like the International Maritime Organization.
We're engaged in discussions with them on these goals. While we can't enforce, we certainly can influence what the industry does, and we will do our best to work with the industry and help to help them transition to these cleaner fuels.
What is the shipping industry saying about the push to zero emissions?
They tell us that their customers want the same thing, that their customers want low carbon and zero carbon and zero emission ships, too.
They are as interested in doing it as we are because that's what the Home Depots and Amazons are pushing for, too, and the reason those customers are pushing for it is because people like you and I, who are ultimately buying products, we're pushing for it. Everyone wants to do it.
It's just a matter of getting the technology to the point where it can be deployed. The industry is testing this equipment now. There are different pieces of the journey. There is the cargo handling equipment, there's the tugboats. There are other parts of the journey where we can improve efficiency and reduce carbon and get to zero carbon emissions, and we want to get every part of that journey.
We want zero emissions ultimately but you want to start out with low carbon right away, then get to zero carbon as quickly as you can, then get to zero emissions as quickly as you can after that.
Photo courtesy of the Port of Los Angeles.
Is there any concern that this could impact shipping in any way?
No, we hope not. I mean the industry, as I said, their customers are pushing for the same thing so their customers certainly don't want the delivery of their cargo to be adversely affected, so the shipping lines don't want to do that either.
It's pretty exciting because it's a case where everyone seems to now realize that we have to reduce our carbon footprint as soon as we possibly can in order to fight climate change.
So we're starting to see consumers are demanding it. Manufacturers of goods are seeking it. Goods and movement, the industry is hearing a strong message from their customers that they want it, so the goods and movement industry, the shipping lines, the trucks, even the trains, everybody is being pushed to do this and so we, too, want to push as hard as we can.
These resolutions, like the one from the City Council, are important because they send a message too that this is something that everybody wants.
Are there enough resources to make the technology a reality?
It's expensive. Private industry has to invest mostly, to be honest with you, but I think there's a role for government to help incentivize this activity through grants and other kinds of inducements; certainly ports can help to incentivize those by offering favorable rates and other things for people who are moving cargo in a manner that is convenient and ultimately with a zero carbon footprint.
The technology is expensive but I think everyone believes that once the technology becomes commercialized and ready for widespread deployment, that you'll have a reduction in cost.
This interview has been edited for length and clarity.
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When Darien Williams and Melanie Wolff opened Brella, their Montessori-inspired childcare center, in Playa Vista in 2019, they were inspired by the likes of WeWork and SoulCycle, which had multiple locations and easy-to-use apps for scheduling meetings and workout sessions. The pair found that parents juggling hectic day jobs with their children’s preschool schedules were drawn to a tech-enabled, more flexible way to schedule childcare for their kids.
“The current system can be really punitive to [parents] because it forces them to pay for and schedule childcare that they don't always need, or to schedule childcare that doesn't actually support the workdays that they need to have," Wolff told dot.LA.
Months later, the coronavirus pandemic forced Brella to shut down. But rather than shuttering their company for good, the co-founders saw that the pandemic’s new work-from-home paradigm only exacerbated the need for flexible childcare options. Brella reopened in June 2020, and today serves roughly 400 families whose kids, aged 3 months to 6 years, attend the Playa Vista facility for an average of four-to-five hours a day and twice per week.
On Tuesday, Brella announced a $5 million seed funding round that will allow the startup to open more facilities—it plans to expand to Hollywood and Pasadena by the end of this year—and improve its technology. The funding was led by Newport Beach-based Toba Capital and Brentwood-based Halogen Ventures, and takes Brella’s total amount raised to date to $8 million.
Brella’s Playa Vista-based childcare center lobby.
“What we found is that even pre-pandemic, and now especially post-pandemic, families' work lives are really dynamic; they're not always working this 9-to-5, Monday-through-Friday kind of role,” Wolff said. “Sometimes their childcare needs can vary day-to-day, week-to-week, and even month-to-month.”
Brella is part of a growing industry of childcare startups leveraging technology to help families find childcare solutions. Its ranks include San Francisco-based Wonderschool, which helps families start their own preschools or daycares, and New York-based Otter, which allows parents to crowdsource babysitting resources from other parents.
Through Brella’s app, parents can create a profile, upload necessary forms and documentation, and book times to drop their children off at the childcare center for a minimum of three hours. Brella offers different pricing packages depending on how far in advance parents want to schedule childcare and how often they need it.
As a licensed preschool, the curriculum that Brella teaches its pupils is inspired by progressive child development philosophies like Montessori, RIE and Reggio Emelia. The curriculum is adapted to how much time each child spends at the school; Brella’s educators create “projects and learning opportunities that can engage a child that might be here for the very first time, or is coming three days a week this week and five days a week next week,” Williams said.
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Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.
Despite — or in many cases because of — the raging pandemic, 2020 was a great year for many tech startups. It turned out to be an ideal time to be in the video game business, developing a streaming ecommerce platform for Gen Z, or helping restaurants with their online ordering.
But which companies in Southern California had the best year? That is highly subjective of course. But in an attempt to highlight who's hot, we asked dozens of the region's top VCs to weigh in.
We wanted to know what companies they wish they would have invested in if they could go back and do it all over again.
Startups were ranked by how many votes each received. In the case of a tie, companies were listed in order of capital raised. The list illustrates how rapidly things move in startup land. One of the hottest startups had not even started when 2020 began. A number doubled or even 16x'd their valuation in the span of a few short months.
To divvy things up, we delineated between companies that have raised Series A funding or later and younger pre-seed or seed startups.
Not surprisingly, many of the hottest companies have been big beneficiaries of the stay-at-home economy.
PopShop Live, a red-hot QVC for Gen Z headquartered out of a WeWork on San Vicente Boulevard, got the most votes. Interestingly, the streaming ecommerce platform barely made it onto the Series A list because it raised its Series A only last month. Top Sand Hill Road firms Andreessen Horowitz and Lightspeed Venture Partners reportedly competed ferociously for who would lead the round but lost out to Benchmark, which was an early investor in eBay and Uber. The round valued PopShop Live at $100 million, way up from the $6 million valuation it raised at only five months prior.
Scopely, now one of the most valuable tech companies in Los Angeles, was also a top vote getter.
The Culver City mobile gaming unicorn raised $340 million in Series E funding in October at a $3.3 billion valuation, which nearly doubled the company's $1.7 billion post-money valuation from March. It is no coincidence that that was the same month stay-at-home orders began as Scopely has benefited from bored consumers staying on their couch and playing ScrabbleGo or Marvel Strike Force.
The company's success is especially welcome news to seed investors Greycroft, The Chernin Group and TenOneTen ventures, who got in at a $40 million post valuation in 2012. Upfront Ventures, BAM Ventures and M13 joined the 2018 Series C at a $710 post-money valuation.
Softbank-backed Ordermark, which flew more under the radar, also topped the list. The company's online ordering platform became a necessity for restaurants forced to close their dining rooms during the pandemic and raised $120 million in Series C funding in October.
On the seed side, two very different startups stood out. There was Pipe, which enables companies with recurring revenues to tap into their deferred cash flows with an instant cash advance, and Clash App, Inc., a TikTok alternative launched by a former employee of the social network in August.
We will have the list of Southern California's top seed startups out tomorrow.
The live-streaming shopping channel created by Danielle Lin reportedly found itself in the middle of a venture capital bidding war this year. Benchmark eventually won out leading a Series A round, vaulting the app at a $100 million valuation. The Los Angeles-based platform has been likened to QVC for Gen Z and it's part of a new wave of ecommerce that has found broader appeal during the pandemic. Google, Amazon and YouTube have launched live shopping features and other venture-backed startups like Los Angeles-based NTWRK have popped up.
One of the most valuable Southern California tech startups with a $3.3 billion valuation, the Culver City mobile game unicorn has benefitted from a booming gaming market that has flourished in this stay-at-home economy. Scopely offers free mobile games and its roster includes "Marvel Strike Force," "Star Trek Fleet Command" and "Yahtzee with Buddies." In October the company raised a $340 million Series E round backed by Wellington Management, NewView Capital and TSG Consumer Partners, among others fueling speculation that it was on its road to an IPO. Co-CEO Walter Driver has said that he doesn't have immediate plans to go public.
The coronavirus has forced the closure of many dining rooms, making Ordermark all the more sought after by restaurants needing a way to handle online orders. Co-founder and CEO Alex Canter started the business in 2017, which recently rang in more than $1 billion in sales. Ordermark secured $120 million in Series C funding by Softbank Vision Fund 2 in October that it will use to bring more restaurants online. The company's Nextbite, a virtual restaurant business that allows kitchens to add delivery-only brands such as HotBox from rapper Wiz Khalifa to their existing space through Ordermark, is also gaining traction.
Cameo, which launched three years ago, had its breakout year in 2020 as C-list celebrities like Brian Baumgartner banked over a million dollars from creating customized videos for fans. In the sincerest form of flattery, Facebook is reportedly launching a feature that sounds a lot like Cameo. Even though the company is still technically headquartered in Chicago, we included Cameo because CEO Steven Galanis and much of the senior team moved to L.A. during the pandemic and say they plan to continue running the company from here for the foreseeable future.
Co-founded by CEO Aaron Peck, Mothership provides freight forwarding services intended to streamline the shipping experience. The company's tracking technologies connect shippers with nearby truck drivers to speed up the delivery process. It raised $16 million in Series A venture funding last year, driving the platform to a $48 million pre-money valuation.
Founded in 2019, Nacelle's ecommerce platform helps retailers improve conversion rates and decrease loading speeds for their sites. The software integrates with Shopify and other services, offering payment platforms and analytics integration, among dozens of services. Nacelle raised about $4.8 million earlier this year with angel investors that included Shopify's Jamie Sutton, Klaviyo CEO Andrew Bialecki and Attentive CEO Brian Long.
Matt Danna and Sean Stavropoulos came up with Boulevard when an impatient Stavropoulos was frustrated wasting hours to book a hair appointment. Their four-year-old salon booking and payment service is now used by some of Los Angeles' best-known hairdressers. Last month, the two secured a $27 million Series B round co-led by Index Ventures and Toba Capital. Other investors include VMG Partners, Bonfire Ventures, Ludlow Ventures and BoxGroup.
Uber co-founder Travis Kalanick CloudKitchens rents out commissary space to prepare food for delivery. And as the pandemic has fueled at-home delivery, the company has been gobbling up real estate. The commissaries operate akin to WeWork for the culinary world and allow drivers to easily park and pick-up orders as the delivery market has soared during pandemic. Last year, it raised $400 million from Saudi Arabia's colossal sovereign wealth fund.
Founded by college buddies five years ago, GOAT tapped into the massive sneaker resale market with a platform that "authenticates" shoes. The Culver City-based company has since expanded into apparel and accessories and states that it has 20 million members. Last year, Foot Locker sunk a $100 million minority investment into 1661 Inc., better known as Goat. And this fall it landed another $100 million Series E round bankrolled by Dan Sundeheim's D1 Capital Partners.
The lingerie company co-founded by pop singer Rihanna in 2018 is noted for its inclusivity of body shapes and sizes. It has raised over $70 million, but The New York Times' DealBook newsletter recently reported that it's been on the hunt for $100 million in funds to expand into active wear. The company generates about $150 million in revenue, but is not yet profitable, according to the report. It became the focus of a consumer watchdog investigation after being accused of "deceptive marketing" for a monthly membership program.
The lifestyle company provides customized personal subscription box services every three months with full size products. Started in 2010 by Daniel Broukhim, Michael Broukhim, Sam Teller and Katie Rosen Kitchens, it now boasts more than one million members. Last year, the company raised $80 million in a Series A round led by Kleiner Perkins last year and appears to be preparing for an eventual IPO as it slims down costs and refocuses on its high value products.
Launched in 2016, the finance management tool helps consumers to avoid overdrafts, provides paycheck advances and assists in budgeting. Last year, it began to roll out a digital bank account that was so popular that two million users signed up for a spot on the waitlist. The company, run by co-founder Jason Wilk, has raised $186 million in venture capital and counts billionaire Mark Cuban as an early investor and board member. Other backers include Playa Vista-based Chernin Group.
SURE offers multiple technology products to major insurance brands — its platform can host everything from renter's insurance to covering baggage, so customers never have to leave an agency's website. It also offers its platform to ecommerce marketplaces, embedding third-party insurance protections for customers to purchase all on the same webpage. Founded in 2014, the Santa Monica-based startup last raised an $8 million Series A round led by IA Capital in 2017.
Founded in 2009 by former Google CIO Douglas Merrill and ex-Sears executive Shawn Budde, Zest AI provides AI-powered credit underwriting. It helps banks and other lenders identify borrowers looking beyond traditional credit scores. It claims to improve approval rates while decreasing chargeoffs. The company uses models that aim to make the lending more transparent and less biased. This fall the company raised $15 million from Insight Partners, MicroVentures and other undisclosed investors, putting its pre-money valuation at $75 million, according to PItchbook.
Santa Monica-based PlayVS provides the technological and organizational infrastructure for high school esports leagues. The pandemic has helped the company further raise its profile as traditional sports teams have been benched. Founded in early 2018, PlayVS employs 46 people and has raised over $100 million. In addition to partnering with key educational institutions, it also has partnerships with major game publishers such as Riot and Epic Games.
A SaaS platform helps Shopify brands create mobile shopping apps. The marketing software saw shopping activity jump 50% over 90 days as the pandemic walloped traditional retailers. Founded by Eric Netsch and Sina Mobasser, the company raised a $10 million Series A round led by SignalFire, bringing the total raise to $15 million.
Papaya lets customers pay any bill from their mobile devices just by taking a picture of it. The mobile app touts the app's ease-of-use as a way to cut down on inbound bill calls and increase customer payments. Founded by Patrick Kann and Jason Metzler, the company has raised $25 million, most recently a S10 million round of convertible debt financing from Fika Ventures, Idealab and F-Prime Capital Partners.
FloQast is a management software that integrates enterprise resource planning software with checklists and Excel to manage bookkeeping. The cloud-based software company claims its system helps close the books up to three days faster. It is used by accounting departments at Lyft, Twilio, Zoom and The Golden State Warriors. In January, it raised $40 million in Series C funding led by Norwest Venture Partners to bring the total raise to $92.8 million.
The company's rights management platform expedites licensing payments and tracks partnership and sponsorship agreements. It counts BuzzFeed, the Vincent Van Gogh Museum and Sanrio (of Hello Kitty and friends fame) among its clients. In May it announced $8 million in Series A financing led by Bessemer Venture Partners and Nosara Capital, bringing the total raised to $12 million.
The Los Angeles-based company provides a touchless entry system that uses individuals cell phones to help with identification instead of a key card. The company offers a subscription for the cloud-enabled software that allows companies to help implement safety measures and it said demand has grown amid the pandemic. Founded by James Segil and Alex Kazerani the company raised $36 million led by Greycroft earlier this year, bringing its total funding to $63 million.
FightCamp is an interactive home workout system that turns your space into a boxing ring with a free standing bag, boxing gloves and punch trackers. The company is riding the wave of at-home fitness offerings including Peloton, Mirror and Zwift that have taken off during the pandemic as gyms closed. The company has raised $4.3 million to date.
The Santa Monica-based company provides video and interactive content for education in math, science, economics and standardized test prep. Founded in 2018 by Nhon Ma and Alex Lee, who previously founded Tutorcast, an online tutoring service, the company gathers post-graduate educated instructors to create video lessons for online learning.
The creator of a pan with a cult following on social media, this Los Angeles-based startup designs and retails cookware and dinnerware. Founded by Amir Tehrani, Zach Rosner and Shiza Shahid, the company completed its Series A funding earlier this year, bringing its total raised to date to $10 million.
For customers that have no formal credit or banking history, this company's application promises more financial access, choice and control. It gathers data to create a credit score that can be used to instantly underwrite and disburse loans ranging from $10 to $500. Co-founded by Shivani Siroya and Jonathan Blackwell, Tala has raised $217.2 million to date. Its investors include PayPal Ventures, Lowercase Capital and Data Collective.
Founded in 2007 by chief executive Ara Mahdessian and president Vahe Kuzoyan, ServiceTitan operates software that helps residential home contractors grow their businesses. It provides businesses tools like customer relationship management and accounting integration to streamline operations. The company closed a $73.82 million Series E funding round from undisclosed investors earlier this year.
Founded in 2017 by former professional "Call of Duty" player Matthew Haag, 100 Thieves manages esports competitions in major titles including "Counter Strike Global Offensive" and "League of Legends." The company also produces apparel and merchandise, opening a physical store and training ground called the "Cash App Compound" in collaboration with Fortnite earlier this year. The company has raised $60 million to date, from investors including Salesforce CEO Marc Benioff and Aubrey Graham, better known as the rapper Drake.
This AI-powered customer service platform automates text conversations between customers and businesses to increase sales. Emotive uses their sales team to verify questions, distinguishing it from other bot-driven marketing services, according to the company. The company was founded in 2018 by Brian Zatulove and Zachary Wise, who serve as the chief executive and the chief operating officer, respectively. It has raised $6.65 million to date, from Floodgate Fund and TenOneTen Ventures.
Created by former hedge fund trader Sam Polk, the Los Angeles-based startup wants to be a healthy fast food chain. It prices its healthy pre-packaged meals around $5 in underserved communities while costing more in other neighborhoods with the goal of reducing so-called food deserts in low-income neighborhoods. It also offers a subscription delivery service. The company recently closed a $16 million Series B round led by Creadev along with Kaiser Permanente Ventures.
Lead art by Candice Navi.
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Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.