Read Activision's Letter to Staff After Firing 20 Employees

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Read Activision's Letter to Staff After Firing 20 Employees

Activision Blizzard addressed ongoing employee concerns over workplace culture in a letter to staff Tuesday, and said it disciplined 40 employees for inappropriate workplace behavior.

The letter was written by Blizzard's Executive Vice President for Corporate Affairs (and former U.S. Homeland Security adviser) Frances Townsend, who joined the company in March and sent it to employees via email the afternoon of Oct. 19.

Recently 20 Activision Blizzard employees were fired and 20 more were reprimanded following widespread accusations of sexual harassment and discrimination based on gender.


In a copy of the letter viewed by dot.LA, Townsend said Activision did find misconduct had taken place after conducting its own investigation, and claimed it disciplined the offenders accordingly.

Townsend also said the company has seen an increase in harassment and workplace culture-related reports in recent months, both new and from years ago, as people began to talk more openly about the issue. She promised increased investment in training resources and more transparency about the investigation process and its results.

Activision wouldn't disclose which employees were reprimanded or let go but Townsend said in the letter that Activision Blizzard management is encouraged to "not hesitate to terminate or discipline those who violate our policies and fail to contribute to a positive culture that treats all members of our team with respect."

In July, Activision employees walked out to protest the game publisher's misogynistic and allegedly harmful company culture.

The walkout happened a week after the state of California filed a lawsuit against Activision for discriminating against female employees and having a "frat bro" culture where sexual misconduct and outright harassment were accepted. The lawsuit noted that women accounted for only 20% of the game publisher's staff.

Last month the Securities and Exchange Commission launched its own investigation into Activision. The Wall Street Journal reported the investigation is looking into how the company handled allegations of discrimination and sexual harassment in the workplace.

Take a look at the letter in its entirety below.

Today, Activision Blizzard's Executive Vice President for Corporate Affairs Fran Townsend shared the following email update with our employees:

Everyone,

As one of the world's largest and most influential companies, our future depends on fostering a company culture where all feel safe and heard. That comes with the responsibility of earning our employees' confidence that, when they speak up, we'll do the right thing. We must earn our team's confidence that, when they speak up, they will be heard. I have been quietly listening over the last few months to your comments, concerns, and observations. I am grateful to everyone who shared their points of view – especially those who challenged us to do better. It's important to me that you know how seriously I take this, and how committed I am to the next steps we will take together. We are working tirelessly to ensure that, moving forward, this is a place where people are not only heard, but empowered.

We have a committed team dedicated to this work. However, in listening to feedback over the past several months it is clear to me that we need to do more, and with a renewed urgency. We have expanded our compliance team and have even greater initiatives already underway to enable meaningful improvements to our company's culture.

Working with Jen Brewer and the team, we have thoroughly evaluated our broader compliance, employee relations, and investigative procedures, including how we handle claims and communicate with the members of our team who are involved. And today, I would like to highlight our progress on all these goals, along with some changes to build a more accountable workplace and culture.

Among the input we have received, there have been several clear and actionable recommendations, from many of you and from our Ethics & Compliance team. Among them, three key themes emerged:

First, do not hesitate to terminate or discipline those who violate our policies and fail to contribute to a positive culture that treats all members of our team with respect.

Second, be transparent, not only about our investigations processes, but also about the actions we take.

Third, invest resources and people into ethics, culture, and training.

First, I wanted to give you a sense of the work we've been doing to investigate all claims and concerns raised by members of our team:

- Ongoing Investigations: Nothing is more important to me - and the entirety of Activision Blizzard leadership - than making sure everyone feels safe and equal in this workplace. There is no place for harassment, discrimination, or retaliation in this company.

In recent months, we have received an increase in reports through various reporting channels. People are bringing to light concerns, ranging from years ago to the present. We welcome these reports, and our team has been working to investigate them, using a combination of internal and external resources. Based on the information received in the initial report, they are assigned into different categories, and resources are allocated to prioritize the most serious reports first. In connection with various resolved reports, more than 20 individuals have exited Activision Blizzard and more than 20 individuals faced other types of disciplinary action.

We continue to look into any issues or reports raised through the many channels that are available. But it bears repeating: Reports can be submitted anonymously, and there is zero tolerance for retaliation of any kind.

Second, we have begun work to improve how we address complaints, including the restructuring of two teams, Ethics & Compliance and Employee Relations, to more efficiently and effectively handle the investigation of complaints.

- Ethics & Compliance Team Leadership: I am very happy to announce the promotion of Jen Brewer to Senior Vice President, Ethics and Compliance. Jen has already been skillfully guiding the compliance function for many years. More importantly, she has been instrumental in helping me to reimagine how our investigative, training, and employee relations functions can work better together, along with the resources those teams will need to make our company better.

- Way To Play Heroes: These are the Ethics & Compliance program's unsung heroes. They volunteer their time to build bridges – by helping fellow members of our team navigate their reporting options, championing speaking up, and advising us on how we can strengthen the Ethics & Compliance program. The Heroes are crucial to our success. We are expanding the program by adding more Heroes and investing resources to better support the work they do. I am pleased to announce that effective immediately, Heroes will receive one additional vacation day a quarter to recognize their contributions to this very important work.

- Investigation Team Resources: Ensuring we have the capability to properly look into reports is critical. In the past couple months, we have already added three full-time positions to address the workload. Moving forward, we plan to scale this significantly, adding 19 full-time roles to our overall Ethics & Compliance Team, which include team members dedicated to investigations, including the ability to take live calls, as well as data analytics and communications, to help us understand how we're doing and help us better convey results of our work. Two of those roles will be specifically dedicated to overseeing investigations related to the EMEA and APAC regions.

- Investigation Team Structure: We are combining our investigations groups into one centralized unit within a central ABK Ethics & Compliance Department, which will be separate from business units and other groups like Human Resources or Employee Relations. This will allow investigators to be more efficient and coordinated, aligned on approach, and enable consistent decision making. It also allows us to scale resources more appropriately versus considering how to allocate team members across disparate units.

- Employee Relations Team: Alongside improving how we investigate concerns or claims, we need to consider how best to communicate with members of our team affected by these issues. Working with Chief People Officer Julie Hodges, this will be a key focus for the Employee Relations team. This will allow us to better bridge our improved investigative process to a recommended action, whether it's discipline, additional training, or other next steps. Our goal is to broaden our team of individuals with considerable human resources experience, ensuring we handle complaints and concerns with the care and attention they deserve.

- Transparency: We are working on additional materials that document our investigative procedures and outline what members of our team who report misconduct can expect during the investigative process. We are also working to ensure communications are transparent and time sensitive for any members of our team involved in investigations. Even more, we want to provide data reporting so we remain accountable, even if we can't always share what is happening behind the scenes. We know there's a desire to know about the outcome when misconduct is reported. Sometimes, there are privacy reasons we can't share. But where we can, we will be sharing more information with you. We will also be providing you regular aggregate data about investigative outcomes.

- Improving Training: We are preparing to triple our investment in training resources. Our intent is to deliver meaningful, real-life, scenario-based live and online training required for all members of our team, including executives - covering bystander training, speaking up, and training managers to recognize concerns and understand their obligations to escalate situations urgently and appropriately.

We are committed to making meaningful and positive change, and this is just the start. We will be sharing additional updates in the coming weeks and months. We know there is always more work to do. We are committed to continuing that work. Please continue to share your ideas and suggestions, in whatever ways you want to send them. We will work hard every day to earn your trust and confidence. Together, let's ensure that we always have a safe, inclusive, and ethical workplace that makes us all proud.

Best,

Fran

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This Torrance Startup Just Raised $1B to Mass-Produce Hypersonic Missiles

🔦 Spotlight

Happy Friday, Los Angeles.

Castelion has spent the past four years trying to prove that hypersonic missiles do not need to take decades to develop or cost so much that the military can only afford a limited supply.

Now comes the harder part: producing them at scale.

The Torrance-based defense startup raised a $1B Series C at a $13B valuation. The financing includes $800M in equity and a $250M revolving credit facility, making it one of the largest recent raises for an LA defense technology company.

JPMorganChase’s Strategic Investment Group, Andreessen Horowitz and Carlyle co-led the round. Lightspeed Venture Partners, Lavrock Ventures, Altimeter, General Catalyst, T. Rowe Price and LA-based Interlagos Capital also participated.

Castelion will use the capital to ramp production of Blackbeard, its low-cost hypersonic strike missile, while developing a longer-range precision weapon and new defensive systems. Hundreds of millions of dollars will go toward expanding manufacturing at Project Ranger, the company’s 1,000-acre production campus in New Mexico.

Image Source: Castelion

Blackbeard was designed in California, will be built in New Mexico and is expected to enter service in 2027. Castelion says it has already secured more than $500M in U.S. military contracts over the past 18 months and moved the missile from a clean-sheet concept to an official program in fewer than four years.

That timeline is central to Castelion’s pitch. Traditional defense programs are often associated with long development cycles, limited production runs and eye-watering costs. Castelion is applying the rapid testing and vertically integrated manufacturing approach popularized by commercial space companies to weapons production.

But a $13B valuation changes the standard. Castelion is no longer being judged as a promising startup with an impressive prototype. It is being funded like a company expected to become a major part of the American defense industrial base.

The question is no longer whether a startup can build a hypersonic missile. It is whether one can manufacture thousands of them without losing the speed, discipline and cost advantages that made it disruptive in the first place.

For LA’s defense ecosystem, that shift matters. The region has become home to a growing number of companies promising to modernize how America builds critical hardware. Castelion now has the capital, contracts and facilities to show what happens when that promise reaches the factory floor.

The next test will not be in a pitch deck. It will be in production.

More from this week’s LA startup and venture scene below.

🤝 Venture Deals

    LA Companies

    • Long Beach based Ampaire raised a $19M Series B led by DiamondStream Partners, with strategic participation from Alaska Star Ventures and IAGi Ventures, bringing its total funding to $68M. The hybrid-electric aviation company will use the capital to expand flight operations, produce additional Eco Caravan aircraft, advance regulatory certification and scale its manufacturing capabilities. - learn more

    LA Venture Funds
    • SUM Ventures participated in AssistMe’s €6.5M funding round, which was led by CRB Health Tech and Vorwerk Ventures and included several returning investors. The German care technology company will use the capital to expand across Europe, prepare for a U.S. launch and further develop alea, its digital platform for supporting caregivers and improving nursing-home operations. - learn more
    • CIV led Hypercubic’s $5.3M seed round, with participation from Y Combinator, Afore Capital, Pioneer Fund, Multimodal Ventures and several angel investors. The San Francisco startup will use the capital to develop AI agents that can analyze, document and rewrite decades-old COBOL systems, helping enterprises modernize critical mainframe software faster and with less risk. - learn more
    • Plus Capital participated in Wispr Flow’s $280M Series B, led by Menlo Ventures and joined by existing and new investors, valuing the AI voice company at $2B. The funding brings Wispr’s total capital raised to $361M and will support its expansion beyond dictation into meeting tools and proprietary speech technology, including its new Canto model. - learn more
    • Alexandria Venture Investments participated in Leal Therapeutics’ $30M Series A extension alongside new investor Eli Lilly and returning backers including OrbiMed, Newpath Partners and SV Health Investors’ Dementia Discovery Fund. The biotech company will use the funding to advance clinical trials of LTX-001 for schizophrenia and LTX-002 for ALS, with initial schizophrenia trial data expected by year-end. - learn more
    • BroadLight Capital participated in Higgsfield’s $400M Series B, led by DST Global and joined by investors including Goldman Sachs Alternatives, Smash Capital, Fifth Wall and Intel Capital. The AI video and image platform, now valued at $5.4B with $700M in annualized revenue, will use the funding for R&D, global infrastructure, AI hiring and international expansion. - learn more

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      Why Samsonite Just Paid $178.5M for BÉIS

      🔦 Spotlight

      Hello, Hello.

      This week, one of LA’s most recognizable consumer brands packed its biggest bag yet.

      Samsonite Group has agreed to acquire an 85% stake in BÉIS for $178.5M, valuing the Los Angeles-based travel and lifestyle brand at approximately $210M. The deal is expected to close in Q4, pending regulatory approval.

      Founded by actress and entrepreneur Shay Mitchell and incubated by LA-based Beach House Group in 2018, BÉIS has grown from a digitally native luggage startup into a profitable business that generated approximately $210M in sales last year. Along the way, it built the kind of fiercely loyal online following that legacy brands spend years and considerable marketing budgets trying to manufacture.

      Image Source: BÉIS

      That may be the most interesting part of this deal. Samsonite is not simply acquiring another luggage line. It is buying access to a younger, predominantly female customer base, a sophisticated direct-to-consumer operation and a brand that knows how to turn social media attention into actual sales. The suitcases are useful; the cultural relevance is the real carry-on.

      BÉIS will continue operating as a standalone brand under CEO Adeela Hussain Johnson and its existing management team. Mitchell will retain a 15% ownership stake and continue guiding the company’s creative and product vision, while Samsonite brings the global distribution, sourcing and logistics infrastructure needed to take the brand further.

      For LA’s startup community, the acquisition is another reminder that valuable technology companies do not always look like software companies. BÉIS built its advantage through digital distribution, community and an unusually sharp understanding of its customer. Now, one of the world’s largest luggage companies wants what it created.

      Sometimes the strongest exit starts with knowing exactly what people want to pack.

      More from this week’s LA startup and venture scene below.

      🤝 Venture Deals

        LA Companies

        • Heaviside Industries raised a $60M Series B to accelerate the development and production of its autonomous precision munitions for U.S. and allied forces. The company also announced a strategic partnership with defense manufacturer Nammo, combining Heaviside’s autonomous weapons technology with Nammo’s expertise in propulsion, warheads and large-scale munitions production. - learn more
        • Alex Cooper and Matt Kaplan’s media company Unwell received its first outside investment from WTSL, giving the profitable business a $500M pre-money valuation. Unwell, which reaches a reported 70M women each month through podcasts, film and television, live events, consumer products and a creative agency, will use the capital to pursue acquisitions, make investments and expand into new business lines. - learn more
        • Neros raised a $250M Series C at a $2.5B valuation, with participation from LA-based Interlagos, MANTIS Venture Capital and Thiel Capital. The El Segundo defense startup will use the funding to scale its autonomous strike and interceptor drone programs, expand production and strengthen its domestic supply chain as demand grows from the U.S. military and allied forces. - learn more
        • FriskAI raised $3.6M from MaC Venture Capital to expand its observability and security platform for AI agents. The startup helps companies monitor what autonomous agents do in real time, giving teams greater visibility into agent behavior and helping them identify errors, risks and unexpected actions. - learn more
        • Diald raised $1M in follow-on funding led by Feedback Ventures, bringing its total funding to $4.75M. The company also launched a rebuilt conversational AI platform that lets commercial real estate investors create pro formas and evaluate zoning, permits, neighborhood sentiment and other property risks through plain-language prompts. - learn more

        LA Venture Funds
        • Alexandria Venture Investments participated in Khartis Therapeutics’ $50M Series B, led by Forge Life Science Partners, bringing the San Diego biotech’s total funding to $95M. Khartis will use the capital to advance its lead oral treatment for thyroid eye disease and expand its pipeline of small-molecule immunology drugs. - learn more
        • Finality Capital Partners co-led Entravel Group’s $7.5M funding round alongside Ethereal Ventures, with participation from GSR, Varrock, G1 Ventures, Seier Capital, Veris Ventures, Funfair Ventures and WTG Ventures. The traveltech company will use the capital to expand its white-label hotel-booking infrastructure beyond crypto platforms and develop a stablecoin-powered system for settlement, treasury and working-capital financing. - learn more
        • Regeneration.VC participated in Clarity Systems’ $4.4M seed round, led by LMnT Ventures and joined by Humba Ventures and Massive Technology Ventures. Clarity uses X-ray imaging, computer vision and AI to detect counterfeits, product swaps and other forms of returns fraud in seconds without opening the package. - learn more
        • CIV participated in AGent Energy’s $11M Series Seed round alongside existing investor Zero Infinity Partners, with Spero Ventures and MassMutual Ventures co-leading and Intrepid Investment Management also joining. The Houston startup uses AI-powered hardware and software to turn largely idle backup generators into on-demand grid capacity during emergencies, and the new funding brings its total raised to $17M. - learn more
        • Smash Capital co-led CodeRabbit’s $143M Series C alongside Atomico, valuing the AI code-review company at $1.5B. CodeRabbit will use the funding to expand internationally and develop its new Agentic Change Management platform, which helps companies review, govern and monitor software created by both humans and AI agents. - learn more
        • Multiball Capital backed Soctera’s $4M seed round alongside Anorak Ventures, with additional participation from 9Yards Capital, Mana Ventures and Red Bear Ventures. The Cornell spinout will use the funding to develop heat-efficient power amplifiers designed to improve the range, signal quality and reliability of radar, electronic warfare, satellite and telecommunications systems. - learn more
        • WndrCo participated in Genera’s $10M seed round, which was led by First Round Capital and also included BoxGroup, Carpenter Capital and Success Venture Partners. Genera will use the funding to scale its AI platform, which automates the often labor-intensive process of deploying enterprise software, including customer discovery, data migration and system configuration. - learn more
        • M13 co-led Baselayer’s $20M Series A alongside Koro Capital, bringing the fintech startup’s total funding to approximately $47M. Baselayer will use the capital to enhance its AI-powered platform, which helps banks, fintech companies and government agencies automate business verification, risk assessment and fraud monitoring. - learn more

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          Two LA Startups Raised $2.37B to Build What AI Needs

          🔦 Spotlight

          Happy Friday, LA.

          The largest checks in tech are increasingly going toward companies trying to build their way out of America’s biggest physical constraints.

          This week, two Los Angeles startups raised a combined $2.37 billion in equity to tackle two particularly urgent ones: how the country manufactures critical hardware and where it will find enough electricity to power the AI era.

          Torrance-based Hadrian is building highly automated factories for defense and aerospace. El Segundo’s Valar Atomics wants to manufacture nuclear reactors at scale. Different industries, same underlying bet: the next generation of technology will depend on our ability to produce physical infrastructure much faster than we do today.

          Hadrian raised $1.37 billion in Series D funding, bringing its valuation to $7.87 billion. The company plans to use the capital to open new factories, expand research and development, and increase its capacity to produce critical defense, aerospace and industrial systems.

          Hadrian’s pitch is straightforward, if wildly ambitious: America needs to relearn how to build things and build them quickly.

          Its factories combine skilled workers with AI, robotics and proprietary software to manufacture precision components and, increasingly, complete mission-critical systems. Its customers include defense giants such as Lockheed Martin and RTX, along with newer players like Anduril.

          The company has come a long way from simply making aerospace parts. Hadrian is positioning itself as a piece of America’s industrial infrastructure, offering manufacturers a way to rapidly scale domestic production at a time when wars abroad, strained supply chains and growing defense demands have made the country’s manufacturing gaps increasingly difficult to ignore.

          Investors are clearly buying the argument. The new round comes just over a year after Hadrian raised $260 million, suggesting that “reindustrialization” has officially graduated from venture capital buzzword to billion-dollar investment thesis.

          Meanwhile, roughly 15 miles away in El Segundo, Valar Atomics is moving even faster than its enormous ambitions suggested.

          When we last wrote about Valar, the company was reportedly raising $450 million at a $2 billion valuation and racing to prove that nuclear energy could move on AI’s timetable. Now, it has closed a $1 billion Series B led by Sequoia Capital, secured an additional $200 million credit facility and reportedly reached a $6 billion valuation.

          Valar is developing standardized, factory-built nuclear power plants designed to avoid the enormous costs and decades-long construction timelines associated with traditional nuclear projects. Its goal is not merely to build a working reactor, but to eventually manufacture fleets of them.

          That ambition also sounds considerably less theoretical than it did when we first covered the company. In June, Valar’s Ward 250 reactor achieved a self-sustaining nuclear reaction. Just one week later, the company demonstrated the reactor generating electricity to power an Nvidia Blackwell system. Valar now says the new funding will help it move from proving its technology works to producing reactors at scale.

          The timing is no coincidence. AI’s enormous appetite for electricity is forcing the tech industry to confront a basic reality: the cloud still has to plug into something. Training models and operating massive data centers will require far more reliable power, and nuclear energy is rapidly becoming one of Silicon Valley’s favorite answers.

          Hadrian and Valar may be solving different problems, but their unusually large rounds point to the same shift. AI can design, predict and automate, but it cannot manufacture a missile component or generate a megawatt of electricity on its own. That requires factories, energy systems, supply chains and a great deal of capital.

          For years, venture-backed companies competed to build the software layer. Now, some of the biggest bets are being placed on the infrastructure underneath it.

          The future may run on AI. But first, someone has to build what keeps it running.

          More from this week’s LA startup and venture scene below.

          🤝 Venture Deals

            LA Companies

            • Endeavor Optical Networks emerged from stealth with $10.75M in seed funding from General Catalyst and Andreessen Horowitz to develop a satellite network that uses lasers to move data between continents. The startup plans to use the capital to build an optics lab, hire engineers and conduct ground testing ahead of a demonstration satellite launch targeted for late 2027. - learn more
            • Actualyze AI emerged from stealth with a $7M seed round backed by Storm Ventures, Canaan Partners, Morado Ventures and AME Cloud Ventures. Its platform gives enterprises a central control layer for managing AI usage across teams and applications, helping them enforce security policies, track spending, route requests between models and maintain audit trails. - learn more
            • Blaze.tech raised $8.5M in pre-seed funding led by Friale, a healthcare-focused venture firm founded by the family behind HCA Healthcare. The company helps digital health startups, providers and payers turn AI-generated prototypes into HIPAA-compliant software for uses including e-prescribing, EHR integrations, telehealth and auditing. - learn more

            LA Venture Funds
            • Canon Capital participated in Oligo Security’s $60M funding round alongside Ballistic Ventures, Greenfield Partners, Lightspeed Venture Partners, Red Dot Capital Partners, TLV Partners and other investors, bringing the cybersecurity company’s total funding to $140M. Oligo will use the capital to accelerate product development and expand its global go-to-market operations as it helps organizations detect and block software exploits in real time. - learn more
            • Matter Venture Partners participated in Volta’s seed and Series A financing alongside Azora, Andreessen Horowitz, Altimeter, NVIDIA and Michael Dell’s family office, valuing the AI infrastructure startup at $2.4B. Emerging from stealth, Volta plans to use the backing to develop and operate large-scale AI data centers, supported by a $5B infrastructure financing program with Azora and a $10B European compute partnership. - learn more
            • Cedars-Sinai participated in Cirrus Therapeutics’ expanded seed financing through its Intellectual Property Company, bringing the ocular immunology biotech’s total funding to $14.7M. Cirrus will use the backing to advance its gene and cell therapy pipeline, including a lead treatment for geographic atrophy, while a new collaboration with Singapore Eye Research Institute and Duke-NUS will support research, clinical development and expansion across Asia-Pacific. - learn more
            • Strong Ventures made a follow-on investment in Ready Robust Machine’s ₩13.4B Series B, which was led by Quantum Ventures Korea and brought the heavy-equipment technology company’s total funding to ₩22.9B. The company develops energy-recovery systems for hydraulic machinery and will use the capital to build out mass production, expand its data services and enter the Japanese market. - learn more

            LA Exits

            • Artium has been acquired by global consulting firm AlixPartners, bringing its expertise in building enterprise-grade AI agents for clients including BNY Mellon, Mayo Clinic and eBay to a broader global platform. The company will continue operating as a distinct team under the name Artium by AlixPartners, retaining its founders, employees, methodology and research relationships. - learn more

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