‘I Think the Truth Will Come Out’: Investor Pegasus Tech Ventures Sees Quibi’s Legal Woes as Proof of Future Success

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

‘I Think the Truth Will Come Out’: Investor Pegasus Tech Ventures Sees Quibi’s Legal Woes as Proof of Future Success
Image courtesy\u00a0of Quibi

It's been nearly a month since Quibi launched into the fog of a pandemic. Chief Executive Meg Whitman and founder Jeffrey Katzenberg both expressed early approval at the mobile streaming app's 1.7 million downloads in its first week and another million the next.

But the high-profile startup, which raised $1.75 billion before any consumer had used its product, has faced criticism. Subscriber growth has slowed, with some reports showing that Quibi has fallen from among the most downloaded apps in the U.S. to outside the top 250.


Two marketing executives left in April, reports emerged of a duplicitous user-email leak, and an ongoing patent infringement lawsuit has intensified as investment firm Eliot Management has taken a stake in the plaintiff's case.

All this before anyone has even had to pay for the service, which offered free 90-day trials to April signups and free 2-week trials to anyone who's signed up since.

With so much to sort out, dot.LA wanted to hear the perspective of a Quibi investor. Anis Uzzaman runs Pegasus Tech Ventures, a Silicon Valley firm with $1.5 billion under management. In conjunction with corporate partner Asahi Broadcasting Group, Pegasus invested $35 million into Quibi's second round of funding earlier this year, which totaled $750 million.

Uzzaman talks about his firm's decision to invest in Quibi, his reaction to Quibi's first month, and expectations about the firm's future.

dot.LA: How did Pegasus end up investing in Quibi?

Uzzaman: We liked the company from the get-go. It's a perfect blend of technology and entertainment. The co-founders definitely caught our eye. We also liked that professionally made short content was something that was missing from the domain. There are famous platforms like TikTok, Vine, Instagram, and YouTube but none of them provide professionally made content like Quibi. The domain they were trying to address was empty.

The pitch that the Quibi team made to us was that they're going to play in a new domain where there is no direct competition. And that made sense. The pitch was also that some of the greatest personalities of the entertainment industry have already committed. It is not that easy to pull together a group of people like Jennifer Lopez, Reese Witherspoon, Benicio Del Toro, Steven Spielberg and so on and get a commitment from them for an upcoming new platform, so that was really attractive from an investor point of view. The other part that was interesting was that the advertisers were piling up. I think every single first-tier advertising slot was fully sold out before even the launch.

Anis Uzzaman runs Pegasus Tech Ventures, a Silicon Valley firm with $1.5 billion under management.

What was your valuation process and how did you make your decision?

We compared Quibi with several groups of relatively similar platforms who — not directly, but indirectly — can be competition. We looked at the last 10-plus years of YouTube, and also mapped Quibi against other short-content platforms like Vine, Instagram, and TikTok. We saw how those individual platforms have grown from their launch dates to today, and we looked at the people behind those platforms, their funding and their support infrastructure.

And then looking at Quibi, we relied heavily on the track record of the founders, and the other people working for the team. Did they have the right experience? Had they done it before? Had they experienced this kind of struggle? That was our number one point. Number two was funding, which got the green light because they already had some of the biggest investors on the planet. Then it was very important for us to see whether they had enough support infrastructure to be able to procure this content for the years ahead. And they had enough partnerships in place that gave us confidence. Plus, we had seen they had sold out their advertising slate — and you can guess that's a lot of money we're talking about there. So that's why we took a big risk.

What do you think motivated the major studios to invest in Quibi?

If you look at most of the studios, they have always created content for the big screen. If you look at the trends of the world, though, all the younger generations are not watching content on the TV anymore. All the data show that people who are watching TV for hours are 65 years old while young people are increasingly watching content on their mobile device. So all the big content makers who've targeted the big screen, they're also thinking, 'How can I be viable from here on, for the next century, for the new generations?' They are looking very carefully at all the new platforms that are coming out. And when Quibi was coming out I'm sure that all of the big content makers wanted to make sure they're part of this mobile platform that is becoming the main thing, where people are spending most of their time. And advertisers are also focusing most of their money there. So it is very important for the big content makers to be a part of this.

What did you think about Quibi's decision to stick with the April 6th launch date?

It was a little bit of an unusual situation because the app was made for on-the-go consumption. It was a challenging time. But hey, any startup should be ready for such challenges. COVID-19 is going to separate out the strongest startups from the weak ones and only the strong and most effective ones will survive. So I think it is a good test for Quibi to prove that they can survive. So far they have bypassed three million downloads, which is basically what we are expecting as investors.

If you look at some of the criticism, most of the complaints were, 'Why can't we watch this great content on a bigger screen?' Everybody was pushing Quibi hard to be able to do Airplay, because everybody's at home. So the launch has also helped Quibi to understand consumer demand, in this case being able to see the content on a bigger screen as well. They already had it in the plan and the process was made urgent because of the COVID-19 situation. Otherwise maybe that demand wouldn't have come into the pipeline that fast.

If you look at major pandemics from the past, most pandemics are anywhere from 12 to 18 months long. That's pretty long. And if you look at startup cycles — that is, the average time between funding rounds — they are also 12 to 18 months long. So if Quibi had waited it out, they would have had to wait a long time. Could they have waited it out another one and a half years? I think time is money and you never know what the competition is thinking. So in some sense, did they have any other option? I would say maybe they didn't.

Jeffrey Katzenberg | Jeffrey Katzenberg speaking at the 2014… | Flickrc1.staticflickr.com

Do you think accelerating the availability on bigger screens dilutes Quibi's competitive position?

The issue with many other platforms today is that the mobile version is not good enough to be seen on a mobile device, whereas Quibi has been created for mobile. So it doesn't dilute the original purpose because the picture quality of those videos are made for mobile. It has not diluted the original value of being able to see it on-the-go. But it has given some people the option to watch it while sitting on the couch.

What's your impression of Quibi's performance so far?

The numbers could be better but I would say they are pretty much in the ballpark, considering the overall situation of the market. Maybe they are a little short of where they should be if you're talking about a fast track company, but we feel we also need to consider the overall macroeconomic situation of the market.

In terms of the growth rate, I feel that it is gradual, which is what I like, rather than a quick spike. YouTube and Netflix did the same thing. Their growth was gradual. And Disney+ is not a great comparison — it has unique characteristics. So I will not be very worried. I will wait for the new content coming out. Top titles will probably drive traffic, because it's not actually about Quibi; it is the titles that will make the difference in the life cycle of this platform.

From the investor point of view, I think everything's fine as of now and we want them to keep up the current growth rate as much as possible.

Could you describe your outlook looking forward?

I'm sure that we will see an international expansion coming down the line, and that is going to also pull up their numbers quite a bit. Most of the top executives in entertainment and high-tech outside of the U.S. are watching the situation very closely and are very interested in having it in their countries as well.

The pandemic will likely slow international expansion, though, because you need local partners to launch in a new country. And none of the partners are able to operate at 100% at this point. Until content makers can operate 100%, it will be tough for anybody to do anything big and launch in a different country in a comfortable way.

Image courtesy of Quibi

To what extent does Quibi's patent infringement lawsuit concern you as an investor?

We are watching the situation very closely. We strongly believe the accusation is not true, because we know that both of the co-founders of Quibi have very high integrity and dignity. That's why they're so successful. It looks more to me that it's a financial game for the claimants and they're trying to make a big deal out of it. And seeing that some of the hedge funds are supporting it also sounds to me like it's a financial game. I think the truth will come out. I'm sure all investors are closely watching the situation, but does it put any doubt in our mind about the Quibi team? Absolutely not.

How open was Quibi to discussing the case with you as you were considering investing?

The case was pretty open from the get-go and it has been kept in a very open state in front of us by the Quibi team. We knew about it. We knew this very openly from the get-go and we still decided to invest.

Did it raise your eyebrows when you saw Elliot Management get involved?

Not really. I feel that the financial game could also be that people are looking for a short-term settlement — it's no secret that Quibi raised a lot of money. I don't know what the hedge fund's goal is but they might have similar motivation for a short-term gain. Does it concern us? It definitely tells me that the management team has to address it properly and I'm sure they're working very hard on it. But I strongly believe that it is a false accusation. In some sense I would say it's proof that Quibi is going to dominate this domain; people are already starting to take shots at it and trying to make some financial gain from it.

What's your stance on Quibi's reported plan to spend $1 billion in year one?

There are two ways that startups can grow. One is in a kind of a stingy way, where they're counting every single dollar, and they hire only if they really need to. We've seen those models more in very heavy high-tech industries, things like quantum computing and pharma, where you need to go slow and steady.

The other way is you move fast before anybody else can come up with something similar. The media and entertainment industry does that. Quibi's setting up a platform; they're the first one of its type in the market, so I think moving fast and grabbing the market is not a bad idea. I would have done it the same way if I was the CEO of the company.

(The interview has been lightly edited for clarity and brevity)

---

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

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Mattel Isn’t Just Playing Anymore

🔦 Spotlight

Hello Los Angeles,

AI just became Mattel’s newest playmate.

This week, Mattel announced a new partnership with OpenAI, setting the stage for a toy box transformation powered by artificial intelligence. The El Segundo-based toy giant will use ChatGPT to breathe new life into its iconic brands, including Barbie, Hot Wheels, and Masters of the Universe. The collaboration will start with interactive AI experiences and creative tools to support product development internally.

It's a bold move for Mattel, which has been steadily shifting its identity from a traditional toy maker to a modern entertainment company. Between box office hits like Barbie and now this AI integration, Mattel is showing that legacy brands can still lead the charge into the future. The partnership supports CEO Ynon Kreiz’s long-term vision to expand Mattel's intellectual property into a broader, multi-platform universe. OpenAI is now playing a key role in that strategy.

This also points to a larger trend unfolding in Los Angeles. The lines between tech, entertainment, and consumer products are blurring quickly. AI isn’t coming to the mainstream; it’s already here. And if Barbie is getting an upgrade, other LA-born icons may not be far behind.

We’re keeping an eye on how this unfolds and whether it becomes more than just a flashy concept. One thing’s certain: Mattel isn’t just playing around.

Catch the latest LA venture deals, acquisitions, and fund updates below.

🤝 Venture Deals

LA Companies

  • Coco Robotics, a Santa Monica-based startup specializing in last-mile autonomous delivery robots, has raised $80M in a strategic funding round led by angel investors Sam Altman and Max Altman, with participation from Pelion Venture Partners, Offline Ventures, Ryan Graves, and others. The company will use the funding to scale its AI-powered platform, grow its zero-emission robot fleet to 10,000 vehicles by 2026, expand partnerships with delivery platforms like Uber and DoorDash, and broaden its presence in more cities across the U.S. and internationally. - learn more
  • PopID, a fintech startup specializing in biometric payment and loyalty authentication using face and palm recognition, has closed a new equity financing round backed by major strategic investors including Verifone, PayPal, Commerce Ventures, Chipotle’s Cultivate Next, and Visa Ventures. The fresh capital will support the expansion of its global biometric network by leveraging Verifone’s terminal infrastructure to integrate secure and seamless biometric payments and loyalty programs across merchants worldwide. - learn more
  • Rosebud, an AI-powered journaling app designed to serve as a personal growth mentor, has raised $6M in seed funding led by Bessemer Venture Partners. The funds will be used to expand the team, advance its proprietary memory-driven AI engine, and pursue partnerships with therapists, educational institutions, businesses, and clinics to enhance access and deepen the app’s reflective capabilities. - learn more
  • Impulse Space, the in-space mobility startup founded by ex-SpaceX engineer Tom Mueller, has raised $300M in a Series C funding round led by Linse Capital with participation from Trousdale Ventures and others, bringing its total financing to $525M. The company designs and builds orbital transfer vehicles—like Mira and upcoming Helios—to transport satellites between orbits, and the new funds will scale production, hire new staff, accelerate R&D (including electric propulsion), and fulfill a backlog of over 30 commercial and government contracts worth nearly $200 million. - learn more
  • dataplor, a Manhattan Beach, CA-based provider of global location intelligence, has secured a $20.5M Series B round led by F‑Prime Capital. The funds will help dataplor scale its privacy-focused point-of-interest and foot traffic mobility products, expand global coverage, enhance data capabilities, and accelerate product growth for enterprise clients seeking real-time consumer insights. - learn more

        LA Venture Funds

        • WndrCo participated in Meter’s $170M Series C financing. Meter provides a full-stack, enterprise-grade internet infrastructure solution that covers routing, switching, WiFi, and cellular for businesses ranging from single offices to large data centers. The new funds will accelerate global expansion, grow its channel partnerships with companies like CDW, Microsoft, and WWT, and support further deployment and R&D. - learn more
        • Sound Ventures participated in Landbase’s $30M Series A round, co-leading the investment alongside Picus Capital. Landbase uses AI, leveraging a GPT‑4o-based model trained on 40 million marketing campaigns, to automate and enhance outbound sales outreach, helping small and mid‑size businesses build trust and scale customer acquisition. The funding will support expansion of its team, product development, and go‑to‑market efforts as it rapidly grows its customer base. - learn more
        • Rebel Fund participated in Outset’s $17M Series A round, which was led by 8VC. Outset uses AI-powered agents to conduct and analyze in-depth video interviews at enterprise scale, serving clients like Nestlé, Microsoft, and WeightWatchers. The new funding will accelerate growth by expanding its go‑to‑market and engineering teams, enhancing its AI agent capabilities, and scaling its platform globally. - learn more
        • Anthos Capital returned as a participant in Laurel’s $100M Series C round, led by IVP. Laurel, the world’s first AI-powered “Time Platform” for professional services firms, automates time tracking and links how employees spend their time directly to business outcomes. The new funding will be used to scale the platform globally, enhance AI-driven time categorization and analytics, and help firms optimize resource allocation and profitability. - learn more
        • Vamos Ventures participated in Trustible’s $4.6M Series Seed round led by Lookout Ventures. Trustible provides an AI governance platform that helps enterprises inventory AI use cases, manage risk, comply with regulations like the EU AI Act, and accelerate responsible adoption. The funding will power product development, hire engineering and go‑to‑market talent (particularly in the D.C. area), and scale operations to help enterprise and public-sector customers deploy AI safely. - learn more
        • Village Global participated in Qanooni’s $2M pre‑seed round, joined by Oryx Fund, TA Ventures, and a group of strategic angels. Qanooni, founded in 2024 and based in the UAE, builds an AI-powered legal platform that integrates directly into Microsoft Outlook and Word to help lawyers draft, review, and manage documents using their own style and standards. The new funding will fuel expansion into the UAE and UK and advance its proprietary AI engine tailored for legal workflows. - learn more
        • Muse Capital and Rocana Venture Partners participated in Eli Health’s $12M USD Series A round, led by BDC Capital’s Thrive Venture Fund, boosting the company’s total funding to around $20M USD. Eli Health has developed the Hormometer™, a real-time, saliva-based hormone monitoring system currently in beta for cortisol with plans to expand to progesterone and other biomarkers. The new capital will scale production, add biomarkers, support commercialization, and accelerate global rollout of its instant hormone health platform. - learn more
        • Crossover VC participated in ai.work’s $10M seed round led by A* and lool ventures. ai.work has emerged from stealth to launch an “AI Workers” platform—autonomous agents designed to streamline enterprise workflows across IT, HR, Legal, Finance, and more. The funding will be used to scale operations, accelerate product development, and deploy AI Workers into pilot programs with large enterprises. - learn more
        • MANTIS Venture Capital participated in AIM’s $50M funding round. The company has built the first embodied AI platform that retrofits heavy machinery, like bulldozers and excavators, for autonomous operation, aiming to boost safety, efficiency, and productivity in construction and mining. The new capital will help AIM scale deployments, advance its AI technology, and expand its plug-and-play autonomy solutions across heavy equipment fleets worldwide. - learn more
        • Watertower Ventures led Finofo's $3.3M seed round, with continued backing from Motivate Venture Capital, SaaS Ventures, and several angel investors. Finofo offers a modern business banking platform that automates accounts payable, treasury, and global receivables, enabling seamless, low-fee payments across more than 90 countries with ERP integration. The funds will support expanded AP and AR automation features, the launch of a small-business plan, and hiring across product, engineering, and go-to-market teams. - learn more
        • Finality Capital Partners participated in RISE Chain’s latest $4M raise, bringing its total funding to $8M. RISE Chain is building an ultra-fast Ethereum Layer 2 blockchain using "Shreds" architecture to deliver sub-5 millisecond transaction confirmations and scale toward 100,000 transactions per second. The new capital will support the mainnet launch, accelerate product and app development, and expand its real-time performance capabilities for advanced DeFi and high-frequency applications. - learn more
        • Emerging Ventures participated in Taiv’s $14.4M CAD (≈ $10.5 M USD) Series A round, led by Denmark’s IDC Ventures. Taiv equips bars, restaurants, and retail venues with free hardware that transforms existing TVs into targeted advertising and content delivery tools, then shares ad revenue with the venues. The funding will power expansion across North America (starting in Canada this summer), grow the team, and enhance its AI-driven content delivery platform. - learn more
        • Matter Venture Partners led an $18.4M investment in Kargo. The company offers an AI-driven inventory management system, including hardware like "Towers" and Lifts, that automatically captures and processes freight data at warehouse loading docks to improve accuracy, real-time visibility, and operational efficiency. The new funding will be used to develop new products, expand deployment across their customer base, and scale their computer vision platform in global supply chains. - learn more
        • Bam Ventures and Trust Fund participated in the $10.6M funding round for Nectar Social, a Seattle-based startup that helps brands convert social media engagement into revenue using AI-powered “social copilot” agents. The platform consolidates comments, DMs, mentions, influencer outreach, and analytics into one interface to streamline brand interactions and boost performance. The funding will support product development, team expansion, and scaling operations with enterprise customers. - learn more
        • MTech Capital participated in Voxel’s $44M Series B funding round. The company has developed an AI-powered workplace safety platform that integrates with existing cameras to detect hazards and unsafe behavior in real time, reducing accidents and operational risks. The new funding will accelerate R&D in computer vision, deepen its AI capabilities, and grow its team of industry experts to scale deployments across high-risk industries such as manufacturing, logistics, and ports. - learn more
            LA Exits
            • Hennessey Digital, a leading legal marketing agency known for its SEO, digital PR, PPC, and web design services, has been acquired by Herringbone Digital. The acquisition expands Herringbone’s platform into the legal marketing space while retaining Hennessey’s leadership and team. With added resources and support, Hennessey Digital plans to scale its services and integrate new AI-driven marketing tools to better serve law firms nationwide. - learn more
            • Prosthetic Records has been acquired by MNRK Music Group and will now operate under its MNRK Heavy division. The deal brings Prosthetic’s extensive heavy metal catalog - featuring pioneering acts like Lamb of God, Animals as Leaders, and The Acacia Strain - under MNRK’s umbrella. MNRK plans to amplify the label’s legacy through anniversary reissues, remastered editions, curated collections, and new releases from standout acts such as Pupil Slicer and God Alone. - learn more
            • RKO Pictures, the legendary film studio behind classics like King Kong and Citizen Kane, has been acquired by Concord Originals, the film and TV division of Concord. The deal gives Concord derivative and adaptation rights to over 5,000 RKO titles, including sequels, remakes, stage adaptations, and unproduced screenplays. RKO will continue as an imprint under Concord Originals, co-led by Sophia Dilley and Mary Beth O’Connor, with plans to revive its storied catalog through reissues, new productions, and adaptations. - learn more
            • StartADAM has been acquired by LeapXpert, bringing its AI-powered chat agent technology and founding team into LeapXpert’s fold. The acquisition enhances LeapXpert’s communication intelligence platform with advanced AI features, new messaging channel support, and deeper CRM integrations. StartADAM’s founders, including co-founder Adam Stone, who became LeapXpert’s VP of AI Product will lead development to scale these capabilities globally. - learn more
            • CASHét has been acquired by Entertainment Partners, integrating its suite of digital payment services including p-cards, automated accounts payable, and vendor verification into EP’s production finance ecosystem. The acquisition ensures that CASHét will continue supporting productions worldwide, regardless of their payroll or accounting systems, while expanding its services into new global markets. With this move, EP enhances its end-to-end financial workflow offerings, bringing faster, more secure, and fraud-resistant payment tools to film and TV productions. - learn more
            • Element Brand Group has been acquired by The Lede Company, with founder Heather Leeds Greenfield joining as a partner and head of brand partnerships. Greenfield’s senior team, including two SVPs, will move over to expand The Lede Company’s integrated marketing and communications offerings. The acquisition strengthens Lede’s cultural campaign capabilities and equips both firms with enhanced resources and scale for brand-driven initiatives. - learn more

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                  Billion-Dollar Beauty. Billion-Dollar Radios. Only in LA.

                  🔦 Spotlight

                  Hello Los Angeles,

                  This week, LA proved it can scale in silence and shine in the spotlight, sometimes in the same breath.

                  Let’s start with the quiet powerhouse.

                  Culver City-based Silvus Technologies is being acquired by Motorola Solutions for $4.4 billion in up-front consideration, with the potential for an additional $600 million in earnout payments, bringing the total deal value to $5 billion. Silvus builds tactical mesh radios, rugged high-bandwidth systems used by militaries, emergency responders, and defense contractors in more than 40 countries. These aren’t just walkie-talkies. They are engineered to deliver secure, uninterrupted communications in places where cell service and Wi-Fi don't stand a chance. Think natural disasters, war zones, and remote terrains. The tech spun out of DARPA-funded research at UCLA, and this deal is a reminder that LA isn’t just cranking out consumer apps and AI models. We’re exporting national security infrastructure too.

                  But while Silvus was locking down defense contracts, another LA startup was breaking the internet.

                  e.l.f. Beauty Chairman and CEO Tarang Amin and Rhode Founder Hailey BieberImage Source: e.l.f. Beauty

                  Rhode, Hailey Bieber’s skincare brand, is being acquired by e.l.f. Beauty in a deal valued at up to $1 billion. The structure includes $600 million in cash, $200 million in stock at closing, and up to $200 million in earnout payments tied to Rhode’s performance over the next three years. Not bad for a brand that launched in June 2022 and built a cult following off just a handful of products and a crystal-clear brand identity.

                  Yes, it’s celebrity-founded. But Rhode didn’t just ride a name. It built a movement. The brand cut through a saturated beauty market by doing less: launching with a few standout hero products, keeping the aesthetic clean and consistent, and using community-first marketing that turned product drops into cultural events. The results speak for themselves. $100 million in net sales over the past year and a loyal fanbase that treats peptide lip treatments like limited-edition merch.

                  Bieber wasn’t just the face of the brand. She helped shape the strategy, led product development, and drove creative decisions from day one. Following the acquisition, she’ll continue as Chief Creative Officer and Head of Innovation, while also stepping into a new role as strategic advisor to e.l.f. Beauty. Rhode will continue to operate independently, with its headquarters remaining right here in LA.

                  This isn’t just a win for Rhode. It’s another clear signal that LA is where culture, commerce, and execution come together and scale fast.

                  Keep reading for the latest LA venture rounds, acquisitions, and fund moves making headlines this week.

                  🤝 Venture Deals

                  LA Companies

                  • Bezel, a luxury watch marketplace, recently secured a $670K investment from Hyperspace Ventures as part of a broader $6.8M funding initiative. This investment aims to support Bezel's growth and enhance its platform for authenticated luxury watch trading. - learn more

                        LA Venture Funds

                        • Sound Ventures participated in the Series A funding round for General Counsel AI, a startup using artificial intelligence to streamline in-house legal work. The platform helps legal teams draft documents faster, stay compliant, and eliminate repetitive tasks by embedding company knowledge directly into its AI workflows. With Sound Ventures' backing, GC AI plans to scale its team and expand the platform’s capabilities to serve more enterprise legal departments. - learn more
                        • Kairos Ventures participated in Vivodyne’s $40M Series A funding round, reaffirming its commitment to advancing human-relevant drug development technologies. Vivodyne, a biotech company based in Philadelphia and San Francisco, is pioneering the use of AI and robotics to grow and test thousands of lab-grown human tissues, aiming to replace traditional animal testing in drug development. This approach addresses the high failure rate of clinical trials by providing more predictive human data, potentially accelerating the development of effective therapies. The new funding will support the expansion of Vivodyne's operations, including the opening of a 23,000-square-foot fully robotic laboratory in South San Francisco, to meet the growing demand from pharmaceutical clients. - learn more
                        • Fifth Wall co-led Wander’s $50M Series B funding round, joining QED Investors and others to support the company’s mission of redefining luxury vacation rentals through technology and consistency. Wander operates a vertically integrated platform that combines premium vacation homes with hotel-grade service, powered by its proprietary AI system, WanderOS. With over 1,000 properties already live and a Net Promoter Score of 85, Wander aims to scale toward 300,000 homes globally, offering a trusted and seamless experience for travelers and property owners alike. - learn more
                        • Clocktower Technology Ventures and Overture VC participated in GridCARE’s $13.5M seed funding round, supporting the company's mission to address the growing power demands of AI infrastructure. GridCARE utilizes advanced AI to identify and unlock underutilized grid capacity, significantly reducing the time required to power data centers from several years to just 6–12 months. By bridging the gap between AI developers and utility providers, GridCARE aims to accelerate the deployment of AI technologies while enhancing energy resilience. - learn more
                        • Clocktower Technology Ventures participated in Monarch Money’s $75M Series B funding round, reaffirming its support for the personal finance platform's mission to enhance financial wellness for households. Monarch offers tools for aggregating financial accounts, visualizing net worth, tracking budgets, and collaborating with partners or advisors. The new funding will enable Monarch to expand its team and further develop its platform to better serve its growing user base. - learn more

                          LA Exits

                          • TinyWins, the LA-based digital creative studio known for blending emotional storytelling with performance-driven content, has been acquired by marketing consultancy The Shipyard.Best known for its work with brands like Disney, Netflix, and Google, TinyWins will continue to operate under its own name and leadership in Los Angeles. The acquisition gives TinyWins access to deeper strategic and media resources, while The Shipyard expands its creative firepower and strengthens its presence on the West Coast. - learn more
                          • Churchill Management Group has been acquired by Focus Partners Wealth, marking the firm’s first external acquisition since its January rebrand. The Los Angeles-based investment advisor manages $9.4 billion in assets and will expand Focus’s national footprint in wealth management. - learn more
                          • Dolby Theatre, renowned for hosting the Academy Awards, has been acquired by Master Investment Group in partnership with Jebs Hollywood. The new ownership plans to introduce a series of events celebrating Middle Eastern culture, aiming to showcase the region's rich heritage, music, and traditions. This initiative seeks to foster community engagement and promote cultural exchange by bringing diverse artistic expressions from the Middle East to a global audience. - learn more

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                                VC Giants Back LA Defense Tech Startup

                                🔦 Spotlight

                                Hello Los Angeles, and happy Friday!

                                Memorial Day Weekend is finally here, and it seems even PCH got the memo, just in time for those coastal drives to kick off summer, traffic jams included. Speaking of navigation, El Segundo based startup CX2 has charted its own impressive course this week, securing $31 million in a Series A round led by Point72 Ventures, with participation from Andreessen Horowitz, 8VC, and Pax Ventures, to boost its mission in electronic warfare.

                                Electronic warfare (EW), for those of us who aren't regulars at the Pentagon, involves the tactical use of electromagnetic energy to control the spectrum, essentially jamming or confusing enemy communications and radar systems. CX2 was founded by a diverse and experienced group: Nathan Mintz, who brings deep expertise in defense technology from previous ventures such as Epirus and Spartan; Mark Trefgarne, a software entrepreneur known for a successful acquisition by Meta; Lee Thompson, an expert RF engineer previously with SpaceX; and Porter Smith, whose practical insights stem from his background as a U.S. Army helicopter pilot and subsequent experience as an investor.

                                The new funds will help CX2 scale its team and accelerate the development of advanced tools, including autonomous drones and specialized signals-intelligence systems. These innovations promise precision interference without collateral disruptions, addressing critical defense capability gaps identified by industry experts.

                                With tensions escalating globally, there's big demand for next-gen defense solutions, and CX2’s technology positions them as a major player in shaping future electronic battlespaces.

                                Dive deeper into the details and check out this week's roundup of LA’s venture deals and acquisitions below.

                                Here's to a weekend filled with sunshine, clear roads (fingers crossed), and tech that keeps pushing boundaries!

                                🤝 Venture Deals

                                LA Companies

                                • Axle Health, founded by former Uber execs, raised $10M in Gaa Series A round led by F-Prime Capital to expand its AI-powered logistics platform for home healthcare. The software streamlines scheduling, routing, and patient engagement, and is now used by major health systems and agencies across all 50 states. The company has seen 10x revenue growth over the past year. - learn more
                                • Promise, a generative AI studio based in Venice, California, has secured a strategic investment from Google's AI Futures Fund, alongside contributions from The North Road Company, and others. This funding will support Promise's integration of advanced AI technologies into its proprietary production platform, MUSE, and facilitate collaborations with Google's DeepMind researchers to push the boundaries of AI-driven storytelling. The studio plans to commence production on its first feature-length film this year, marking a significant step in its mission to blend human creativity with cutting-edge AI tools in filmmaking. - learn more
                                • Final Boss Sour, a Los Angeles-based snack brand blending gaming nostalgia with sour fruit treats, raised $4M in a Seed 2 round. The funds will go toward expanding distribution, product innovation, and creator partnerships. The company also launched a new tropical sampler box featuring real fruit flavors like mango, pineapple, and kiwi. - learn more
                                • VUZ, a UAE-based immersive media platform, raised $12M in a pre-Series C round led by the International Finance Corporation with participation from CrossWork.us, among others, to fuel global expansion and enhance its AI-powered streaming experiences. The funding brings its total raised to over $35M and will support growth across the U.S., Africa, Asia, and the Middle East. VUZ, now EBITDA positive, hosts 30,000+ hours of immersive content and has exclusive deals with leagues like LaLiga and Serie A. - learn more

                                    LA Venture Funds

                                    • B Capital co-led Data Sutram's $9M Series A funding round, supporting the company's expansion of its AI-driven fraud detection platform into sectors like cryptocurrency, gaming, and insurance. The investment will also aid in strengthening Data Sutram's AI capabilities and facilitating its international growth into markets such as the Middle East and Southeast Asia. - learn more
                                    • Upfront Ventures led Clair's $23.2M Series B funding round, reinforcing its commitment to the fintech startup it initially backed during the seed stage. Clair provides embedded earned wage access (EWA) solutions, allowing employees to access their earnings instantly through integrations with payroll and workforce management platforms like Gusto and TriNet. The new funding will support Clair's expansion across more than 29,000 business locations and enhance its partnerships with additional HR and payroll providers. - learn more
                                    • Rebel Fund participated in Keep's recent C$108M funding round, supporting the Toronto-based fintech's mission to modernize small business banking in Canada. Keep offers an all-in-one financial platform tailored to Canadian small businesses, addressing challenges like outdated systems and limited access to credit. The funding will help Keep expand its services, which include business credit cards, expense tracking, and multi-currency accounts, to more entrepreneurs across the country. - learn more
                                    • MarcyPen Capital Partners participated in SparkCharge's $30.5M funding round, supporting the expansion of its mobile, off-grid EV charging services across North America. This investment will help SparkCharge scale its Charging-as-a-Service model, enabling fleets to adopt electric vehicles without the need for permanent infrastructure. - learn more
                                    • Matter Venture Partners participated in Biostate AI's $12M Series A funding round, supporting the Houston-based startup's mission to revolutionize molecular diagnostics through affordable RNA sequencing and generative AI. Biostate AI aims to build a comprehensive RNA sequencing dataset to train AI models capable of predicting disease progression and treatment responses, thereby advancing precision medicine. - learn more
                                    • Prototype Capital participated in Sensmore's €6.5M funding round, supporting the German robotics startup's mission to retrofit heavy machinery with AI-driven automation. Sensmore's technology enables real-time automation of complex tasks in industries like construction and mining. The investment will help expand Sensmore's Physical AI platform, enhancing productivity and safety in industrial operations. - learn more

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