Rear Admiral Wettlaufer on Creating a Culture of Excellence

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

Rear Admiral Wettlaufer on Creating a Culture of Excellence

Earlier this year, Spencer had an opportunity through the Navy's Distinguished Visitors Program to visit the USS John C. Stennis, an aircraft carrier. During his time aboard the ship, Spencer met Rear Admiral Michael Wettlaufer, who's spent 32 years serving in the Navy. Throughout his career, Admiral Wettlaufer has received multiple medals for his service, logged 3,500 flying hours, flown 49 different aircraft types and made over 800 arrested landings. To say he's a brave and accomplished leader is an understatement. In this episode, Spencer returns to the USS Stennis for a conversation with Admiral Wettlaufer about leadership. The two cover a lot of ground, including the Admiral's impressive career in the Navy, the importance of teamwork and how to build a culture that's committed to excellence.


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

Rear Admiral Michael Wettlaufer: So the opinions that I may give are my own and not those of the United States government, the United States Navy or the Department of Defense. How about that.

Spencer Rascoff: All right. The lawyers are satisfied. Admiral, it's amazing to be back here. I was here for, I guess, two nights a couple months ago, somewhere in the Pacific at an undisclosed location. You never did tell me where we were exactly, but we were at sea, and I had an extraordinary time getting to know you a little bit, getting to know your staff, and speaking with so many sailors. I felt like I learned more about leadership and management in those two days at sea than anyone could learn sometimes in a career. I'm grateful that you let me come back here and get some of these learnings on tape, so thank you.

Admiral Wettlaufer: Well, I'm happy to have you back, and it's great that you had some time between then and now as well so you can think about maybe what you saw and the fact that as you came out, and I described earlier to some of the folks in the room, as you come out and you go to the aircraft carrier you think, “I'm gonna see the coolest, this cool giant machinery," right?

But in the end, none of the machinery works without all those young leaders who are at various stages of learning to lead, which part of that is learning how to follow, right? It's an amazing experience, and I am honored every single day just to be involved with those people.

Spencer: So let's start with your career and sort of take a step back. You've had a 33-year, 32-year career in the Navy. Just walk us through, even at the very beginning, why did you join the Navy? Then give us some career highlights to bring us to the present.

Admiral Wettlaufer: It's a great question 'cause it's one I ask myself. You look back after this amount of time. I was a microbiology major in college, and I did not wanna be in a laboratory ever again after I finished my degree. I was thinking about that, what do I do that's gonna be exciting?

Spencer: At traditional college or at Navy?

Admiral Wettlaufer: No, university, Colorado State.

Spencer: OK.

Admiral Wettlaufer: So when I finished school and had a great time learning, loved to learn, but I wanted to change what I was doing, and I have a lot of family members, my dad's family and my mom's family, who were in the military. A doc that my dad worked with asked me the question about a year prior, said, “What are you really gonna do?"

So end of school, graduate, and I went to the recruiting office in downtown Denver, parked in the back, walked in the side door. The first office I came to was Navy officer programs, and I went in and said, “I have this microbiology degree; I don't wanna use it. What do you have?" So two weeks later I take an aptitude exam. A week later, 'cause this was prior to computer-based testing, a week later they call back and say, “Hey, you did well on that test. Do you wanna be a pilot?" I said, “How much does it pay?"

So that's 32 years ago, 32-and-a-half years ago, and I have been challenged and intrigued, curious and rewarded, with great opportunity ever since.

So I started off, went to flight school in Pensacola, Florida. I came out of there flying off the USS America, A-6 Intruders. We were based on the East Coast. Three deployments, two sets of workups, Desert Storm kind of in the middle there, and then I went to the test world, and I had the opportunity to become a U.S. Navy test pilot, so I went to school again. Got to use all the physics and calculus that I had previously, and so I went to test pilot school. Again, great challenges.

Totally different than what I was doing prior to that; not totally, but different in the way you approached it. Got to spend a lot of time operating off ships as well. So a year of school, two years of doing test work, and then I transitioned to the F-18 at that point, and I flew F-18 Charlies operationally. At test pilot school and during the test business I flew 22 to 25 different airplanes, which wasn't unusual at the time.

So I went to Japan and I operated off the USS Independence and the Kitty Hawk flying F-18s, and then I went to the UK and I got an opportunity to fly with the British at their test pilot school as an instructor or tutor, as they say, and did some test work for her majesty on exchange from the United States Navy. And then I went to the Naval War College after that, and so I went and got a master's degree in national security and strategic studies. While I was a test pilot I was fortunate enough to go to the University of Tennessee as an away student and had a master's of science in aviation systems.

So a lot of school along the way, a lot of interesting and diverse experiences, and then I worked in a think tank for the CNO, the Chief of Naval Operations, called the Strategic Studies Group at the time. So our job was to look out in the future and see what future stuff was there and how do we pull it in closer, how do we get there faster. So for CNO Clark, Adm. Clark at the time, that was his focus for us and a great opportunity to work with scientists, see behind some of the doors in our federally funded research and development institutions around the United States, as well as U.S. government labs.

And following that I was fortunate enough to get selected to command an F-18 squadron. Went back to Japan as the XO and then the commanding officer on a VFA-195, the Dambusters in Japan, and operated off the carrier for a few years there, underway a lot, and then was rewarded.

Spencer: Underway; you just used some terminology.

Admiral Wettlaufer: At sea. So underway at sea. If you see the Navy around the United States, we're probably not doing our primary mission. We play the away game, so we play the away game 24/7 so there's some aircraft carrier strike group ships out there, independent strike group.

Spencer: What is that sound that we're hearing?

Admiral Wettlaufer: It is 11:30, so we have to mark the time with the bells traditionally. If you were standing watch and back in the day the tradition is you didn't have a watch.

So the ship lets you know what time it is, and if you're on a four-hour watch you wanna hear those bells get to higher numbers of bells as the time goes on 'cause that marks your watch. So there's 30 more minutes in somebody else's watch.

Spencer: Punctuality. Just one of the many reasons I love the Navy. So here we are, we're sitting on the USS Stennis, an aircraft carrier. You command Carrier Strike Group 3.

Admiral Wettlaufer: That's correct.

Spencer: Approximately 7,500 people?

Admiral Wettlaufer: Right.

Spencer: The Stennis is obviously the largest ship in the strike group, and then how many other ships are attached to the Stennis?

Admiral Wettlaufer: So attached to the strike group I've got five destroyers and the cruiser Mobile Bay, USS Mobile Bay, which, by the way I, deployed with Mobile Bay back in the late '80s and early '90s on the East Coast. You see ships around for quite a number of years, and aircraft carriers are typically around for about 50 years, but that's a little beside the point. The ships that will deploy with us, we won't deploy with all of those destroyers.

One of them is already deployed now by itself, independently deploying forward, doing a number of missions in the Pacific and farther to the west. So we're gonna deploy with some number of those ships. In the past year or so we've been training for that process.

Spencer: By the way, one of the really interesting themes of your career is something that I heard when I spoke with other officers when I was on the ship, which is continuous education. It seems like the career of a naval officer involves a lot of returning to school and then returning back into the force and sort of transitioning between academic and practical.

Admiral Wettlaufer: Absolutely, and not all of it — there's a lot of formal education from flight school or a junior sailor going to learn the first part of his trade, whether he or she is working as a mechanic or electrician or maybe working on computer systems, right? They're gonna get some training initially and then we do a lot of on-the-job training.

So a naval aviator or a junior sailor coming to the ship or coming to a squadron is gonna be in a continuous training process. A lot of that is formal. It's formalized in books or via computer system, or it's formalized by the fact that I've got to sit down with somebody else who knows the subject, and I've got to do a give-and-take education process, on-the-job training. If you're training me on something, you've got to be satisfied that I understand it before you sign me off.

Spencer: There are many misconceptions that civilians like I had or have about the military, one of which is that the career path is a straight up-and-down ladder. You do a certain number of years in a position, you get promoted to the next position, next rank, etc. The naval career feels a lot more like the corporate world, especially in technology. We use this metaphor that your career is like a jungle gym, not like a ladder.

You go up a little bit, to the side, down, over, up some more. Would you agree with that description?

Admiral Wettlaufer: A jungle gym; I would certainly say there's a career path. Don't get it wrong. We have a designed career path, a very typical career path, whether you're a Surface Warfare Officer or Submarine Officer, Aviator, Supply Officer, there's gonna be some typical jobs you have to get, but they're not all in the same place. So similar in the corporate world to your IT analysis or comparison is that you're gonna move laterally, out of one organization, over to another.

You're still in the Navy, but you may work with another Navy or you're gonna move from a seagoing billet to learn maybe more about how the shore side works. It also gives you a break from being in the deployed status to being not so much of a deployed status. So there's some stability aspects of the career that go with that, but there isn't stability in — it's very unusual for somebody to be in one place for a long period of time. So you're gonna move laterally up and down just like you described in the jungle gym.

Spencer: So I wanna talk about teamwork for a moment and how this whole organism fits together. You said something fascinating to me when I was here a couple months ago. I expressed surprise at frankly how much transparency there was about the operations of the ship, and I said, “Don't foreign governments, don't the Chinese or the Russians or whomever, aren't they trying to copy this aircraft carrier?"

And you said, “Firstly, we have a lot of technologies that you're not seeing on this tour, but more importantly it's not about the technology that creates this aircraft carrier. It's about the teamwork that the way this strike group works together and the way the entire Navy works together, and it will take generations for other navies, other countries' navies, to recreate that.

Admiral Wettlaufer: Well, it's a culture, right? Every organization has a different culture.

This organization, particularly the culture around excellence. We can't operate forward in a dangerous environment. You saw on the flight deck one of many dangerous environments we work in, but it's perhaps the most dangerous environment in the world when you're operating the flight deck and we're not getting shot at necessarily up there on the flight deck. It's people, metal, it's machinery, it's a dynamic environment. It's high paced and there's not much room for error because a single error can have catastrophic effects.

So it's that culture that you have to build and maintain, and we've been doing this for a number of years, at least as you looked at the aircraft carrier. We've been fortunate enough to operate and learn over time. None of it's static. We're continuously learning and we're bringing people into that culture a few at a time. It's not like we don't – we don't start from Jan. 1 and we're gonna bring in a whole bunch of new people, we're gonna bring in 5,000 new people to be on the aircraft carrier with the air wing, or 7,500 people start over in the strike group.

It's this continuous process of maintaining that culture and training people into it, acculturating them, and then standards. So the standards have to be owned, learned and owned at the lowest possible level, and you want to have decisions made at the lowest possible level of execution, level of responsibility that you can so that you can have those decisions made rapidly. You saw the flight deck, right? Perhaps one of the most interesting ballets without ballet shoes on.

Spencer: This is fighter jets landing and taking off on an aircraft carrier.

Admiral Wettlaufer: Right. Fighter jets, helicopters; the synchrony of that, the maintenance that goes on, the cyclic nature of that business. And you saw as you described it the team of teams that could potentially be separated and maybe are in the building-up phase as we get ready to start to get underway from maintenance to operations, and you start training in smaller groups or single-ship units, single squadrons.

As you bring that together, the key is that synchrony that occurs when you bring these separate teams together, and the culture has got to be there to allow that to happen. Otherwise, you have stovepipes of excellence and they don't cross.

Spencer: You handed me a little index card here with a quote, which you sometimes do, handing leadership and other quotes out to people here on the ship. It's an Aristotle quote. It says, “We are what we repeatedly do. Excellence then is not an act but a habit." So what does that mean to you? What does a culture of excellence mean? How do you achieve it?

Admiral Wettlaufer: So it's got to start with knowing what the goals are, and you have to translate that. You have to communicate. Communication, I believe, is the hardest thing we do. It's absolutely very, very difficult. It takes continuous attention, and you have to use every medium that you possibly have to communicate: verbally, face-to-face verbally, on a loudspeaker, clock.

The chiming of the clock, right? And so if we don't communicate the mission, the short-term, medium-term and long-term goals in a continuous way, people stop paying attention, right? What do you wanna have? Buy-in. How do you get excellence? Well, you gotta communicate. Gotta know what I'm supposed to be doing. Then you gotta get buy-in. You gotta get past that 51 percent momentum hump if you will, right? You've got to have a self-sustaining momentum, and it's gotta overcome the momentum of sameness.

So the momentum of sameness is we're gonna just sit here and do nothing 'cause I'm perfectly happy in where we are and what we're doing. That's not me. I'm not perfectly happy, right? So you have to have communication to talk about the goals, and you have to have goals, right? You have to have achievable things along the way, and you have to translate those things into action.

So culture of excellence self-assesses. To achieve excellence I wanna shoot really at perfection because if you shoot at perfection you're gonna achieve excellence, right?

It's very hard to be perfect. And you've got to assess, where am I all the time on every single line of effort, and how do you communicate those lines of effort to the newest person in the organization as well as the most senior people in the organization and outside of the organization, 'cause we need support from outside as well.

So that culture of excellence can be self-sustaining if it's self-working. It can't sustain itself without a ton of effort at every single level. So the most junior leader to the most senior leader has to be fully engaged in achieving that mission, whatever it happens to be.

Spencer: I mean so many similarities here to business. The best businesses I think are mission-oriented. Their leadership team constantly communicates to employees why their work is important, how it relates to the broader mission. You have a culture of excellence and standards. In tech we call them OKRs, objectives and key results to try to hold people accountable.

You have some sort of relative advantages and relative disadvantages as compared with companies, I'd say from my point of view. One of the relative advantages is that when you're underway, your employees, if you will, have no access to social media, no access to distractions. They're sort of all yours, if you will, 24/7 to mold them and to lead them.

Corporations don't have that advantage. A disadvantage is that your employees are quite young, I mean 17, 18, 19. I don't know what your median age is on a ship, but it's probably in the early 20s, I would guess.

Admiral Wettlaufer: Right. Most people arrive at the age of 18 to 22 is where that arrival time is, depending on their seniority and what job they're doing, but I see exactly what you're saying and what that view is. Those young people, though, provide the energy and also a challenge. The challenge is to make sure they're engaged in the right direction and make sure there are opportunities, or they came for opportunity. Make sure we're helping them achieve those, reach those goals that we help them set.

So there's a human-to-human contact that we have, as you rightly point out, longer than the eight-hour day, a typical day you may get for a worker in the tech business or a corporation someplace. But that is a great gift because we can communicate whenever we want, we think anyway. But then the challenge is to make sure that they're listening. One of the key challenges is that, as you know, what I say is not what you heard. That's a key challenge. So how do I make sure —

Spencer: What I say is not what you heard. What do you mean by that?

Admiral Wettlaufer: Everybody translates differently, and when are they paying attention or what's the state of their mind as they're paying attention? So what I say is not, or what I wrote is not, what you read necessarily. So how do I find out what I said is what you know?

Spencer: You ask people to play it back to you?

Admiral Wettlaufer: You have to play back, right? So not only can you — you have to push communication. There has to be a return process.

Spencer: And so correct me if I'm mistaken, but you allot a not insignificant portion of your day to management by walking around, talking to sailors, discussing with them what's on their mind, what they're working on. Why is that so valuable?

Admiral Wettlaufer: Because you can skip levels, right? I'm not sure what you might call it in the —

Spencer: We call them skip levels.

Admiral Wettlaufer: So you can skip levels, and to skip a level then you don't have to wait for the filter to give you the information that the filter wants to give you. So one of the big challenges that we had is we are preparing our war fighting skills, our deployment kind of skills; over the past year is understanding where the entire team sees themselves. So I can say something, and if I don't ever go look outside the room, if I don't ever go ask, then I'm gonna get a bunch of smiling faces that said, “Oh yeah, we heard that."

But I haven't checked whether or not that translation what they have heard beneath that level is what I have said, or what I mean — even more importantly, what I mean. So if I don't go out, and any of us, leaders at any level, if we don't go out and engage, then we really don't know what's on the minds and what the state of mind is of the people that we expect to execute, and I think that's important to get past roadblocks in achieving goals. Because if they don't have the same or similar goals in mind, then we're never gonna get there. We won't get to excellence.

Spencer: One of the other disadvantages you have is there's a lot of turnover, sort of by design. In the Navy people start and then they're on a particular shift for, I don't know —

Admiral Wettlaufer: Four, six years, something like that.

Spencer: And actually even certain elements are detached from this ship, right?

Admiral Wettlaufer: That's correct. Yes.

Spencer: So the air wing, which is 1,000-plus people, 2,000 people that fly the planes, it's like you're putting pieces of a puzzle together. They join the ship for some finite period of time, and now these teams of teams are working together, and then the air wing leaves.

Admiral Wettlaufer: Disembarks. Yep.

Spencer: So how do you — with turnover, with these sort of teams coming and going, how do you try to gel the whole organization together?

Admiral Wettlaufer: So that's where you've got to have, well at least in my case, I've got six direct reports. The captain of the aircraft carrier has 20 or 19 direct reports.

Spencer: So because you oversee the strike group you have six ships.

Admiral Wettlaufer: The air wing commander; the destroyer squadron commander, who is responsible for the destroyers; the cruiser commanding officer at USS Mobile Bay; the aircraft carrier commanding officer; the air wing commander; and my information warfare commander. So those are my direct reports.

Spencer: And so the captain of the USS Stennis, this aircraft carrier, has 20 direct reports.

Now you used to have that position, if I'm not mistaken, so that's another challenge of management, is one, you get promoted to the next role and someone else takes your prior role. How do you —

Admiral Wettlaufer: Don't do the other guy's job.

Spencer: How do you let go?

Admiral Wettlaufer: You better let go because he was selected to do that job for a reason. It's the same as skipping levels to figure out what's happening. By the nature of my experience, my experience is similar to his job right now, so I can ask some questions and walk around essentially and get a good idea about what's going on there.

My challenge, as you mentioned with the air wing, is translating, making sure the air wing commander and his commanding officers have heard what I said and I've translated my vision properly so they can execute it. But it's a shared vision, so here's the other advantage is that, that part of the organization, that division, if you will, of an organization has similar goals.

They just have a different way to get there. So we share the end goal. I've just got to make sure I've translated the goals to the air wing commander so he can do it to his squadrons so that when they arrive we are ready to start that synchronization process. We don't have to do stutter steps to break down silos. And it's not just the air wing commander coming on board, it's the air wing commander coming on board with those squadrons that have to leverage the supply system on the aircraft carrier.

They've got to be able to fully integrate with the support mechanisms from laundry to food service to berthing and cleaning to the flight deck operations. So these organizations have to be able to very neatly — this goes back to culture — very neatly interlock without having the stutter steps. If you have the stutter steps, it delays excellence. It could create some challenges in safety and operations that we just don't wanna have.

Spencer: When people enter the Navy typically today, or when I asked sailors, “Why did you join?" their most common answer was, “For a better life." Some version of, “I wanted to better myself because I was kind of stuck. I was in a rut in my life" essentially. Once they're here and then they're part of this organization for three, four, five years, the people that seem to stay for a career, another motivation clicks in. Maybe it's duty, maybe it's personal fulfillment. Walk us through that motivation.

Admiral Wettlaufer: That's a great question. It's probably the success along the way, right? Everybody comes for a different set of reasons and they find things along the way, and that's what we want them to do. We want them to come and contribute to the team and be successful on the way, to take what they didn't have and they wanted and go find it here. That's opportunity.

People wouldn't come if they weren't looking for opportunity, right? So how do we help them get along that path? For some there is an “I'd like to go to higher education and I didn't have the opportunity to do this." A young lady about four weeks ago, five weeks ago, actually it was the 17th. I remember it was the 17th of August. She was leaving the ship. I knew her when she was just arrived here, and she wasn't the youngest person to join the Navy. So she arrived here with three years of college completed, and she came here to get an opportunity to complete.

So she finished her fourth year of college while in the Navy over the four years, and she was leaving here to go on to law school to take advantage of the GI Bill. So there's one motivation, right? But she also had family. She had a child she wanted to take care of, etc. But there are many others. Petty Officer Bloomer, who works in the air department, I've known her since I think when I was XO, when she was first on the ship, so 2011 maybe.

Her motivation is helping out other sailors. So she wants to be a career counselor, and she counsels other junior sailors on how to achieve their goals. And then you've got people that are exceptional, technically exceptional in their particular job, or they enjoy the challenge and the lifestyle of being at sea and doing the nation's business. All those people are patriots. Every single one of them arrived here, they raised their right hand and they said, “I wanna be part of the 1 percent."

They didn't know it necessarily at the time, but they're part of the 1 percent that the 99 percent expects to protect them without question. So that 1 percent; I am honored to work with the 1 percent of America that wants to defend America. So in all of those things that people want, I think what they get out of this, no matter how long they stay, is that they were part of the folks that stepped up and said, “I'm gonna defend the United States of America and what we believe in."

It's a fascinating merging of all kinds of people from all walks of life in the United States, and I'm just honored to have the opportunity to be part of that process, particularly right now.

Spencer: And we're grateful to you and to them. When people leave the military and look for their next career they are — companies like ours work very hard to recruit them.

Veterans face a lot of challenges re: orienting themselves to the private sector and just the world after the military. What would you want companies like ours and other executives listening to this to know about veterans so that we can be better at bringing them back?

Admiral Wettlaufer: Sure. We may have discussed this when you were on the ship previously. I think one of the major things that we deliver from a human being perspective is that people see their own success. OK, this is what I came to do and my team did this and I've succeeded here. And along the way we do what corporate America doesn't necessarily do — and certainly at the entry level in corporate America — is that we train them to lead, right? We train people to step up and take charge.

We have all kinds of training along the way, from just learning how to fight a fire on the ship to make sure that you can save your ship and save your shipmate; and damage-control kinds of things to operating up on the flight deck to managing somebody else's personnel files. These are all key aspects of what we do and what they see. What you see on the outside is somebody who not just knows how to go to work on time; a responsible taxpaying citizen.

They certainly came in and become that, or they were that beforehand, is that somebody who knows how to lead, step into a breach and pick up something that got dropped. So I promise you will hire somebody who can lead when given the opportunity, and they will deliver success in organizations at an earlier age, an earlier time in their career than somebody that doesn't have that military experience necessarily.

Spencer: That has been my experience in my interaction with our veterans. I mean they're extraordinary and I hope we can hire a lot more of them. Thank you for your service, Admiral. Thank you for your time. Thank you for sharing some wisdom. I greatly appreciate it.

Admiral Wettlaufer: Thanks very much for coming out and seeing me again, and I look forward to opportunities to engage with a lot of folks in the world, the corporate world, if given the opportunity.

Spencer: Thank you.

The post Rear Admiral Wettlaufer on Creating a Culture of Excellence appeared first on Office Hours.

https://twitter.com/spencerrascoff
https://www.linkedin.com/in/spencerrascoff/
admin@dot.la
The Streaming Era Just Ate the Studio Era

🔦 Spotlight

Hello Los Angeles!

In a week where everyone was already arguing about what “the future of entertainment” is supposed to look like, Netflix decided to skip the debate and buy a giant piece of the past and, possibly, the future. Netflix announced a definitive agreement to acquire Warner Bros. Discovery’s Studios and Streaming business, including Warner Bros. film and television studios plus HBO and HBO Max. This is not just another media merger. It is a power transfer, from the studio era where the gatekeepers were greenlight committees to the platform era where the gatekeepers are subscriber relationships, home screens, and retention math.

Here are the bones of the deal. WBD shareholders would receive $27.75 per share, made up of $23.25 in cash and $4.50 in Netflix stock, with the stock portion subject to a symmetrical collar. Netflix puts the transaction at roughly $72 billion in equity value and $82.7 billion in enterprise value, and expects it to close in 12 to 18 months, but only after WBD completes its planned separation of its Global Networks business into Discovery Global, now expected in Q3 2026.

Now zoom in on why this matters in Los Angeles specifically.

LA’s creative engine is about to be run by a single, very efficient distribution machine

Warner Bros. is not just a studio. It is an institutional muscle memory for how to develop, package, and produce at scale, plus a library and franchises that can carry a business through multiple economic cycles. Netflix is not just a distributor. It is the largest direct to consumer entertainment subscription platform on earth, built around global reach, product iteration, and data feedback loops. Put them together and you get a company that can create, market, distribute, and monetize premium entertainment without needing anyone else’s permission.

That will sound exciting to some creators and terrifying to others, often for the same reason. When the same entity owns the audience relationship and the content factory, it can take bigger swings because it has more margin for error. It can also take fewer swings because it does not need to. The incentive shifts from “What is culturally important?” to “What makes people stay?” Those are sometimes the same question. Sometimes they are not.

This deal won’t be decided in a writers’ room. It’ll be decided by regulators.

This is exactly the type of consolidation regulators have been itching to interrogate. A combined Netflix plus HBO Max instantly raises questions about market power, competition, and pricing, plus downstream effects on theaters, independent studios, and negotiating leverage with talent. Even if Netflix vows to maintain current operations and keep the consumer experience strong, the political story is straightforward: fewer giant buyers typically means less bargaining power for everyone who sells into the system.

Also worth noting, Reuters reports a termination fee of $5.8 billion under certain circumstances, which tells you both sides are bracing for a drawn out, high scrutiny process.

The quiet subtext: the bundle is coming back, just wearing a streaming hoodie

Netflix will almost certainly pitch this as more choice and better value. Regulators will hear less competition. Consumers will hear how much is this going to cost me. The most plausible end state is not a single mega app on day one. It is a reimagined bundle: separate brands, packaged pricing, shared sign on, cross promotion, and eventually tighter integration if the politics and churn math allow it.

The real disruption is not whether HBO Max keeps its name. It is whether Netflix becomes the default front door to premium scripted entertainment globally.

🤝 Venture Deals

      LA Companies

      • Castelion, a Torrance based defense technology startup, raised a $350M Series B round led by Altimeter Capital and Lightspeed Venture Partners, with participation from investors including Andreessen Horowitz, General Catalyst, Lavrock Ventures, Space VC, Avenir and Interlagos Capital. The money will be used to scale production of its Blackbeard hypersonic weapon, stand up its Project Ranger manufacturing campus in New Mexico, and support multiservice testing and integration with U.S. Army and Navy platforms starting in 2026. - learn more
      • Antares announced a $96M Series B to accelerate an iterative “build, test, iterate” approach to developing nuclear reactors quickly, with the funding going toward hardware and subsystem testing, fuel fabrication, manufacturing, and the infrastructure to turn on a reactor. The company says it plans a low-power “Mark-0” reactor demonstration in 2026 at Idaho National Laboratory, with a pathway to a full-power electricity-producing reactor as early as 2027 and a commercial prototype microreactor (“Mark-1”) after the Mark-0 milestone. - learn more

        LA Venture Funds

        • With FirstLook Partners participating, Flex raised a $60M Series B led by Portage, bringing its total equity raised to $105M to build an AI native finance platform for middle market business owners. The company says it will use the new funding to accelerate product expansion and scale its AI agent infrastructure across areas like private credit, business finance, personal finance, payments, and ERP. - learn more
        • Led by MTech Capital, Curvestone AI raised a $4M seed round with participation from Boost Capital Partners, D2 Fund, and Portfolio Ventures to scale its AI automation platform for regulated industries like financial services, legal, and insurance. The company says it’s tackling the “compound error” problem that makes multi step AI workflows unreliable, and will use the funding to accelerate product development and go to market expansion. - learn more
        • Co-led by CIV, Unlimited Industries raised a $12M seed round (alongside Andreessen Horowitz) to scale its “AI-native construction” approach to designing and building major infrastructure projects. The company says its platform can generate and evaluate massive numbers of design configurations to optimize for cost, safety, and performance, cutting pre-construction engineering timelines from months to weeks, and it is initially focusing on projects that rapidly expand U.S. power capacity for things like data centers, critical minerals, and advanced manufacturing. - learn more
        • With Hyperion Capital participating (alongside Amplify Venture Partners, Spark Capital, Tamarack Global and others), Antithesis raised a $105M Series A led by Jane Street, which is both an investor and an existing customer. The company says it will use the capital to accelerate its deterministic simulation testing platform and scale go to market efforts across North America, Europe, and Asia, positioning the product as “critical infrastructure” for teams running complex distributed systems. - learn more
        • With XO Ventures participating, Orq.ai raised an oversubscribed €5M seed round led by seed + speed Ventures and Galion.exe to help enterprises build, deploy, and manage production grade AI agents with stronger control over data, behavior, and compliance. The company says the funding will accelerate expansion of its platform, including its newly launched Agent Studio and managed runtime, as it pushes to close the “AI production gap” for companies moving beyond demos into real deployment. - learn more
        • Untapped Ventures participated in Lemurian Labs’ oversubscribed $28M Series A, co-led by Pebblebed Ventures and Hexagon, as the company builds a software-first platform designed to run AI workloads efficiently across any hardware and across edge, cloud, and on-prem environments. Lemurian says the funding will help it expand engineering, accelerate product development, and deepen ecosystem collaborations aimed at reducing vendor lock in and infrastructure costs. - learn more
        • Fifth Wall and Park Rangers Capital participated in Ridley’s $6.4M seed round, which Fifth Wall led, backing the company’s push to rebuild the real estate process around consumers with fewer commission-heavy frictions. Ridley says the capital will help launch an AI-powered buy-side experience that surfaces private, for-sale, and “soon-to-be-listed” homes using predictive analytics, while also expanding its commission-free seller tools and “Preferred Agents” network for on-demand support. - learn more
        • Anthos Capital participated in Kalshi’s $1B Series E at an $11B valuation, a round led by Paradigm with other backers including Sequoia, Andreessen Horowitz, Meritech, IVP, ARK Invest, CapitalG, and Y Combinator. Kalshi says its trading volume now exceeds $1B per week across 3,500+ markets, and it will use the new capital to accelerate consumer adoption, integrate more brokerages, strike news partnerships, and expand product offerings. - learn more

                        Download the dot.LA App

                        Perelel, the LA startup quietly fixing women’s health

                        🔦 Spotlight

                        Happy Friday LA!

                        While the market obsesses over the latest AI tool, one of the most interesting checks this week went to something more basic and much harder to fake: women’s health.

                        Perelel, a doctor founded, research backed supplement company for women, just raised 27 million dollars in growth funding led by Prelude Growth Partners, with existing investors including Unilever Ventures, Willow Growth Partners and Selva Ventures coming back in. Co founded by CEO Victoria Thain Gioia, who comes from a background in finance and operating roles at consumer brands, former media executive Alex Taylor, and OB GYN Dr. Banafsheh Bayati, the company has spent the last five years quietly building a profitable business that has doubled revenue year over year and has some of the strongest subscriber retention in its category.

                        Image Source: Perelel

                        The wellness aisle is crowded with influencer brands and one size fits all multivitamins. Perelel is trying to be the adult in the room. The team designs products with OB GYN input, clinical backing and formulas tailored to specific chapters of a woman’s hormonal life, from fertility and pregnancy to postpartum, perimenopause and beyond. Most of its line now carries a Clean Label Project Purity Award, which is a polite way of saying they’re willing to have someone else check what’s actually in the bottle.

                        This round is less about a splashy launch and more about upgrading the cap table and the support system. The founders used the raise to buy out early angel investors and bring in Prelude Growth, a women-founded firm with a track record in modern consumer health and beauty. The new capital is aimed at deeper research, more life stage specific products and broader distribution rather than chasing the trend of the month.

                        In a category that has historically treated women’s health as an afterthought, a clinically serious, women led company raising growth capital to build a full lifecycle platform feels like a meaningful data point. Scroll down for this week’s LA venture deals, funds and acquisitions.

                        🤝 Venture Deals

                            LA Venture Funds

                            • Anthos Capital participated in Kalshi’s new $1B funding round, which values the CFTC-regulated prediction market platform at $11B and was led by returning investors Sequoia Capital and CapitalG alongside Andreessen Horowitz, Paradigm and Neo. The capital will help Kalshi scale its event-contracts exchange, expand beyond politics into areas like macro data and business events, and compete more aggressively with rival prediction platforms as institutional and retail interest in trading real-world outcomes grows. - learn more
                            • UP Partners participated in Point One Navigation’s $35M Series C round, backing the San Francisco-based precise location startup alongside lead investor Khosla Ventures and fellow existing investors IA Ventures and Alumni Ventures. The company provides centimeter-level GNSS correction and positioning services for “physical AI” applications like autonomous vehicles, robots and smart equipment, and plans to use the new funding to expand its Polaris RTK network, enhance its location platform and grow its team across R&D, OEM integrations and international operations. - learn more
                            • Embark Ventures participated in QSimulate’s latest seed financing, which brings the Boston-based quantum simulation startup’s total funding to just over $11M. The company also launched QUELO v2.3, a new generation of its quantum-powered drug discovery platform that uses real-time quantum mechanics to model drug–protein interactions far faster than traditional methods, and it plans to use the capital to scale operations and support growing collaborations with major pharma and tech partners. - learn more
                            • Cultivate Next, Chipotle Mexican Grill’s venture fund, participated in Athian’s $4M Series A round, backing the Indianapolis-based startup alongside Ajinomoto Group Ventures, Mondelēz International’s Sustainable Futures platform and a roster of existing strategic investors from across the livestock and food value chain. Athian, founded in 2022, operates a platform that aggregates, verifies and monetizes on-farm greenhouse gas reductions so food brands can hit their Scope 3 climate targets, and it says it has already facilitated $18M in payments to farmers as it expands its protocols, species coverage and international footprint. - learn more
                            • Fika Ventures joined Coverbase’s $16M Series A as a returning investor from the seed round, backing the company alongside lead investor Canapi Ventures and others. The San Francisco based startup uses AI agents to automate vendor procurement and third-party risk review for regulated enterprises, serving customers like Coinbase, Okta and Nationwide, and the new funding will help it expand into contract management, continuous security monitoring and a larger go-to-market team. - learn more
                            • BroadLight Capital and HeartBeat Ventures are among the investors backing Function Health’s $298M Series B round, which values the company at $2.5B and supports its push to become a new standard in proactive, data-driven healthcare. The Austin-based startup offers a membership platform that combines extensive lab testing with AI to help people track and manage their health, and it’s using the new capital to launch its Medical Intelligence Lab, an initiative aimed at turning that data into personalized medical insights at scale. - learn more
                            • Hallwood Media joined Menlo Ventures and other investors in Suno’s $250M Series C round, which values the AI music startup at $2.45B. The Cambridge based company lets users generate fully produced songs from text prompts and is using the new funding to expand tools like its Suno Studio workstation and next-generation music models, even as it navigates high-profile copyright lawsuits from major record labels. - learn more
                            • Upfront Ventures joined the $7M seed round for alphaXiv, investing alongside co-leads Menlo Ventures and Haystack, plus Shakti VC, Conviction Embed and several high-profile angels. The San Francisco based company runs a platform that helps AI practitioners and researchers discover, compare and apply cutting-edge AI papers, benchmarks and implementations, and it plans to use the new funding to further bridge the gap between fast-moving AI research and real-world production deployments. - learn more
                            • Regeneration.vc joined TULU’s $37M Series A extension as an existing investor, backing the company alongside GreenSoil PropTech Ventures, Bosch Ventures, New Era Capital Partners and others. TULU runs an AI powered product access platform that installs shared, IoT enabled units inside residential and commercial buildings so residents can rent or buy items like appliances, e scooters and household essentials on demand, and the new funding will help the company scale its “TULU Brain” data engine and expand its footprint beyond the 500,000 residents it already serves across North America and Europe. - learn more
                            • WndrCo has joined Method Security’s $26M combined seed and Series A round, alongside Andreessen Horowitz, General Catalyst, Blackstone Innovations and others. The startup, which operates out of New York and Washington DC, is building an autonomous cyber platform that combines offensive and defensive tools into a digital twin of an organization, helping US government agencies, the Department of Defense and large enterprises continuously test and strengthen their defenses against AI driven threats, a thesis that fits neatly with WndrCo’s focus on infrastructure and security. - learn more
                            • Coral Tree Partners has led a new Series B round for KERV.ai, backing the Austin based company as it scales its AI-powered contextual commerce and video advertising platform. The funding will be used to invest in R&D, technology, talent and infrastructure so KERV.ai can further expand its interactive, shoppable video solutions and first-party data targeting tools for brands, agencies and publishers, while pushing into new markets and strategic partnerships. - learn more
                            • CIM Group and Group 11 are backing Venn’s new $52M Series B, with CIM co-leading the round alongside NOA and Group 11 re-upping as an existing investor. The New York and Tel Aviv based company builds an operating system for multifamily housing that unifies data and workflows so landlords and operators can run buildings more efficiently and treat them like modern consumer brands. Over the last 18 months, Venn says it has expanded across dozens of U.S. states, partnered with hundreds of owners and operators, and grown annual recurring revenue ninefold, setting up this round to fuel further product development and market expansion. - learn more
                            • Walkabout Ventures led Barker’s $3.5M seed round, backing the New York based fintech as it builds warrantied AI valuations for illiquid, hard-to-price assets in asset-backed lending. Barker’s platform uses an “agentic valuation system” and insurance from Munich Re to warranty its AI-generated prices on assets like aircraft, equipment, art and GPUs, so lenders are protected if the collateral ultimately sells for less than the model predicted, and the new funding will help the company expand into more asset classes and deepen partnerships across banks and private lenders. - learn more
                            • Freeflow Ventures joined Erg Bio’s $6.5M seed round, investing alongside lead Azolla Ventures, Chevron Technology Ventures, Plug and Play and other strategic backers. Erg Bio is developing its Aspire platform, a flexible, low-temperature pretreatment and catalytic process that turns agricultural and forestry waste into intermediates for synthetic aviation fuel and critical biobased chemicals, and the new capital will help scale the technology, expand engineering and bioprocessing teams, and move toward pilot-scale demos. - learn more
                            • Pinegrove Venture Partners participated in Ramp’s new $300M financing round, joining Lightspeed Venture Partners and a long list of existing and new backers as the company’s valuation hit $32B. The New York based spend management and corporate card platform now generates over $1B in annualized revenue, serves more than 50,000 business customers and processes upwards of $100B in annual purchase volume, and this fresh capital will support continued product expansion and enterprise growth. - learn more
                            • Alexandria Venture Investments and B Capital joined Solve Therapeutics’ new $120M financing round, backing the San Diego based biotech alongside lead investor Yosemite and a broader syndicate that includes Merck & Co. and other life sciences funds. The company is developing next-generation antibody-drug conjugates for solid tumors using its proprietary CloakLink linker platform, and it plans to use the capital to advance its lead programs SLV-154 and SLV-324 through Phase 1b trials and further build out its ADC and diagnostics pipeline. - learn more
                            • Factorial Funds joined Sakana AI’s $135M Series B round, backing the Tokyo-based startup as it doubles down on building efficient, Japan-focused AI models rather than chasing ever-larger, compute-heavy systems. The financing, which values Sakana at about $2.65B, will help expand its “sustainable AI” research and grow its team as it rolls out sovereign, culturally tailored AI solutions for Japanese enterprises and sectors like finance, manufacturing, and government. - learn more
                            • Smash Capital joined AVP and other investors in backing Flatpay’s latest round, which raised roughly €145–170M and crowned the Danish SMB payments startup as Europe’s newest fintech unicorn at around a €1.5B valuation. The company, which offers flat-rate card terminals and POS systems for small merchants, has scaled to roughly 60,000 customers and over €100M in ARR, and will use the fresh capital to accelerate European expansion, deepen its product stack and significantly grow headcount. - learn more
                            • Fusion joined No Barrier’s oversubscribed $2.7M seed round, investing alongside lead backers A-Squared Ventures, Esplanade Ventures and Rock Health Capital to scale the company’s AI-first approach to medical interpretation. The San Francisco based startup integrates real-time, HIPAA-compliant language interpretation into hospital systems and EHRs across 40+ languages, and will use the new funding to expand deployment across U.S. care settings and further reduce health disparities for patients with limited English proficiency. - learn more
                            • Matter Venture Partners joined Vertex Ventures and other global investors in backing Ruochuang Technology’s Pre A round, which totals tens of millions of dollars to fuel the company’s next stage of growth. The startup develops low speed robotics and related IoT hardware, spanning technology R and D, device manufacturing and sales, and this new capital will help it deepen intelligent hardware research and expand its market footprint as demand for smart manufacturing and IoT applications accelerates. - learn more
                            • B Capital joined Shipday’s $7M Series A as a participating investor, re-upping after leading the company’s 2023 seed round and backing the Menlo Park–based startup alongside co-leads ECP Growth and Ibex Investors. Shipday provides an AI-powered last-mile delivery and logistics platform for SMBs like restaurants and local retailers, and it plans to use the new funding to build out features such as its AgentFlow automation engine, deepen integrations, and expand its global reach beyond the 5,000 businesses it already serves in 100+ countries. - learn more
                            • MANTIS Venture Capital participated in Bedrock Data’s $25M Series A round, joining lead investor Greylock Partners alongside Mangusta Capital, Pier 88 Investment Partners and others to back the Menlo Park based data security startup. Bedrock Data provides an AI-native, data-centric security and governance platform powered by its “Metadata Lake,” and it plans to use the new funding to accelerate product development and expand go-to-market efforts as enterprises look to secure data across cloud, SaaS and AI systems at multi-petabyte scale. - learn more
                            • TenOneTen Ventures and Wedbush Ventures joined Meadow AI’s $6M in total funding, including a $4.5M seed round they backed alongside co-lead Leadout Ventures and other investors. The Seattle-based startup is emerging from stealth with a multimodal AI platform that helps restaurants and retailers monitor real-time operations and automate “secret shopper” audits across 10–300-location chains, already driving more than $2.5M in contracted ARR as it targets further growth in physical retail. - learn more

                                  LA Exits

                                  • Neotech, a long-time provider of high-reliability electronic manufacturing services, has been acquired by private equity firm Arkview Capital in a deal that marks a major new chapter for the company. With Arkview as its new owner, Neotech plans to strengthen its balance sheet, invest in next-generation manufacturing, and expand its capabilities across core markets like defense, aerospace, medical and industrial electronics, while continuing to emphasize quality, reliability and customer service. - learn more

                                              Download the dot.LA App

                                              CHAOS in the Skies, Valar in the Core and Robotaxis on the 405

                                              🔦 Spotlight

                                              Hello LA!

                                              If you are reading this while watching the clouds stack up over the city, you are not wrong. The forecast is calling for heavy rain and possible flooding through Sunday, so consider this your permission slip to cancel a few plans, stay dry and catch up on what the hard-tech crowd has been building this week.

                                              Let us start with the least subtle name in local defense tech. CHAOS Industries just closed a $510 million dollar round led by Valor Equity Partners, valuing the company at $4.5 billion dollars and pushing its total funding past the $1 billion dollar mark in under three years. The company builds Coherent Distributed Networks radar, essentially a mesh of smaller, lower cost sensors that can pick up drones and other low flying threats minutes earlier than legacy radar systems, a gap that has become painfully obvious on modern battlefields. The new capital is going toward product development and manufacturing so militaries and border agencies can actually field these systems at scale rather than treating them as one-off experiments.

                                              What makes CHAOS interesting is not just the size of the round but the architecture choice. Instead of a single massive radar on a hill, they are betting on distributed, software first networks that can be upgraded, repositioned and re-tasked as threats change. It is a very cloud-era way of thinking about defense hardware, and it is pulling engineers from a mix of aerospace, gaming and traditional software backgrounds into a category that used to be the domain of slow, closed incumbents.

                                              Image Source: Valar Atomics

                                              If CHAOS is focused on keeping the skies manageable, Valar Atomics wants to keep the lights on for everything that needs compute. The Hawthorne based nuclear startup raised $130 million dollars in Series A funding led by Snowpoint Ventures, with participation from Crosscut Ventures and a roster of deep tech backers that includes Palmer Luckey and Palantir CTO Shyam Sankar. Valar is building compact, high temperature gas reactors that use TRISO fuel and helium coolant, designed for strong safety characteristics and very high operating temperatures.

                                              Instead of a single gigantic nuclear plant, Valar’s plan is to mass produce one standardized reactor design and cluster hundreds of them on “gigasites” that sit directly behind the meter for big energy users. Think hydrogen production, AI data centers, heavy industry and synthetic fuel plants, not just electrons on the grid. Construction is already underway on a first test reactor in Utah, targeted for completion in 2026, and the company is positioning itself as part of a new wave of nuclear companies that treat reactors as a product you replicate, not a megaproject you tolerate.

                                              Image Source: Waymo

                                              On the consumer side, your weekend mobility options are getting an upgrade too, weather permitting. Waymo has begun routing paid robotaxi rides onto freeways in Los Angeles, alongside San Francisco and Phoenix, after years of staying mostly on surface streets. The company says freeway segments can cut some trip times by as much as half, making a driverless ride to LAX or a cross town trek on the 405 feel less like a novelty and more like a practical option. Regulators and human drivers now have to figure out what it means to share the fast lane with cars that never get tired and never text at red lights.

                                              Image Source: Apple

                                              Apple is also coming for the least fun part of any LA trip: the airport ID check. The new Digital ID feature lets you create a passport based identity inside Apple Wallet that TSA will accept at more than 250 airports for domestic travel, including LAX. You scan your passport, verify with Face ID and then present your Digital ID at TSA checkpoints using your iPhone or Apple Watch without handing over your device. It will not replace a physical passport for international flights, but it does mean boarding passes, credit cards and ID can all live in the same tap-to-go flow the next time you sprint to Terminal 4.

                                              Between radar that sees drones earlier, reactors that promise industrial scale clean power and robotaxis that hop on the freeway, a lot of the future is quietly being wired in while you hunt for an umbrella. Stay safe, stay dry this weekend and keep scrolling for this week’s venture rounds, fund announcements and acquisitions.

                                              🤝 Venture Deals

                                                  LA Companies

                                                  • Skims has raised $225M in new funding at a $5B valuation, in a round led by Goldman Sachs Alternatives with participation from BDT & MSD Partners. The company plans to use the capital to accelerate its shift toward brick-and-mortar retail and international expansion, while continuing to invest in product innovation across intimates, shapewear, apparel, and activewear, including its new NikeSKIMS collaboration; Skims is on track to surpass $1B in net sales in 2025, just six years after launch. - learn more
                                                  • Neros has raised $75M in a Series B round led by Sequoia Capital, with participation from existing investors Vy Capital US and Interlagos, bringing its total funding to over $120M. The El Segundo based defense drone startup will use the capital to massively scale production of its Archer and Archer Strike FPV drone platforms and ground control systems, expand industrial capacity, and deepen a China-free, allied supply chain. The raise coincides with Neros being selected as one of the primary FPV drone suppliers for the U.S. Army’s Purpose-Built Attritable Systems program, following a major Marine Corps drone order. - learn more

                                                          LA Venture Funds

                                                          • BAM Ventures joined Exowatt’s new $50M financing round, backing the Miami based company’s push to deliver dispatchable, American made solar power to AI data centers and other energy hungry industrial sites. The round, an extension of Exowatt’s $70M Series A led by MVP Ventures and 8090 Industries, brings the company’s total funding to $140M in under two years. Exowatt will use the capital to expand U.S. manufacturing and scale deployments of its modular P3 system, which stores solar energy as heat and converts it to electricity on demand to provide round the clock, grid independent power. - learn more
                                                          • WndrCo joined the $145M Series B round for Alembic, the AI marketing analytics startup it first backed in early 2024, as the company’s valuation jumped to $645M. The round was led by Prysm Capital and Accenture and will help Alembic scale its platform, which uses AI to link brand marketing across channels like TV, podcasts and social media to real sales outcomes. Alembic also plans to use part of the funding to build a new Nvidia powered supercomputing cluster in San Jose to support growing demand from enterprise customers. - learn more
                                                          • Magnify Ventures joined Joy’s $14M Series A round, backing the San Francisco based startup’s push to build an AI powered parenting platform that blends machine intelligence with real human experts. Co-led by Forerunner and Raga Partners, the funding coincides with the launch of the Joy Parenting Club app, which gives new parents and parents of toddlers 24/7 access to certified coaches plus AI driven guidance, milestone tracking and personalized product recommendations. Joy plans to use the capital to further develop its AI model, expand partnerships with baby and parenting brands, and grow its expert network to support families through more stages of childhood. - learn more
                                                          • Overture VC, via its climate focused Overture Climate fund, reupped in Harbinger’s $160M Series C round as the medium duty electric and hybrid truck maker continues to scale its U.S. built EV platform. The round was co led by FedEx, Capricorn’s Technology Impact Fund, and THOR Industries, and includes existing backers like Tiger Global, Ridgeline, Maniv Mobility, Schematic Ventures, Ironspring Ventures, ArcTern Ventures, Litquidity Ventures, and The Coca Cola System Sustainability Fund. Harbinger will use the capital to ramp production of its electric stripped chassis platform and fulfill an initial FedEx order for 53 Class 5 and 6 trucks, supporting large fleet electrification and last mile delivery use cases. - learn more
                                                          • Sound Ventures joined the $60M Series B round for GC AI, an AI platform built for in-house legal teams, alongside lead investors Scale Venture Partners and Northzone. The new funding values the San Francisco based startup at $555M and brings its total capital raised to $73M. GC AI will use the money to accelerate product development and deepen its integrations and AI agents, building on rapid growth to more than 1,000 customers, $10M in ARR, and 1.75 million legal prompts processed in under a year. - learn more
                                                          • Fulcrum Venture Group doubled down on its backing of Code Metal, joining the startup’s $36.5M Series A to support its push to bring verifiable AI powered code translation to mission critical industries. Led by Accel at a $250M valuation, the round also brought in RTX Ventures, Bosch Ventures, Smith Point Capital, Overmatch VC, AE Ventures, Shield Capital, J2 Ventures, and several strategic angels. Code Metal will use the capital to expand its platform across defense, automotive, and semiconductor customers, promising formally verified, regulation-ready code that can be ported between chips and modernized much faster than traditional methods. - learn more
                                                          • MarcyPen Capital Partners led Rebel’s $25M oversubscribed Series B to scale the company’s returns recommerce marketplace, which helps retailers resell open box and overstock goods instead of sending them to landfills. The new capital will fund expansion into outdoor and sporting goods categories with existing retail partners and support broader growth of Rebel’s tech platform, which processes and resells returned products at up to 70 percent off retail while tackling the trillion dollar returns problem. - learn more
                                                          • Halogen Ventures joined Auditocity’s $2M seed round alongside Techstars, Innovate Alabama, and several angel investors to help scale the company’s AI driven HR compliance auditing platform. The Alabama based startup plans to use the capital to expand nationally and deepen its intelligent automation tools so HR teams can spot compliance risks in real time and resolve issues before they become costly problems. - learn more
                                                          • Upfront Ventures joined Majestic Labs’ more than $100M financing as the AI infrastructure startup emerged from stealth with a new memory centric server architecture. Founded by ex Google and Meta executives, the company claims its all in one servers deliver up to 1000 times the memory capacity of top tier GPU systems, effectively replacing multiple racks with a single box for the largest AI workloads. Majestic will use the capital to grow its team, finish its full software stack, and run pilot deployments with customers looking to cut power use and costs while training massive models. - learn more
                                                          • Alexandria Venture Investments and Freeflow Ventures joined an oversubscribed round of more than $100M for Iambic, a San Diego based biotech using an AI driven discovery platform to develop new cancer therapies. The clinical stage company will use the fresh capital to expand its operations and advance a pipeline that includes IAM1363, a HER2 targeted candidate that has already shown early anti tumor activity, as well as additional AI designed programs and pharma partnerships. - learn more
                                                          • EGB Capital joined Extellis’ $6.8M oversubscribed seed round, backing the Durham based startup’s push to deliver reliable, all weather satellite imagery at industrial scale. Led by Oval Park Capital with participation from Duke Capital Partners, First Star Ventures, New Industry Ventures, Front Porch Venture Partners, and Blue Lake VC, the funding will support Extellis’ first satellite launch and initial product rollout. - learn more
                                                          • Core Innovation Capital joined Arrived’s $27M Series B style funding round, backing the Seattle startup’s push to make fractional real estate investing feel more like buying stocks. Led by Neo with participation from Forerunner Ventures, Bezos Expeditions, and other investors, the new capital will help Arrived scale its “stock market for real estate” platform and recently launched Secondary Market, which lets investors buy and sell shares of individual rental homes across the U.S. with just a few clicks. - learn more
                                                          • Strong Ventures participated in a new pre Series A round for Provotive, the company behind AI packaging design platform Packative. The round was led by Japanese VC firm Miraise, with Korean fund VNTG and a Japan based strategic CVC also joining. Provotive plans to use the capital to expand its AI driven packaging services across Japan, Korea, and the broader Asian market, helping brands quickly generate localized, customized packaging at scale. - learn more

                                                                LA Exits

                                                                • Nativo is being acquired by family safety and location app Life360 in a cash and stock deal valued at about $120M. The acquisition folds Nativo’s native ad platform, programmatic tools, and publisher network into Life360’s advertising business so brands can reach families both inside the Life360 app and across CTV, mobile, and premium web environments. The companies say the combined platform will offer a full funnel, privacy minded, “family safe” ad solution and expect the deal to close in January 2026, pending customary approvals. - learn more
                                                                • RealtyMogul, an online real estate crowdfunding and investment platform, has been acquired from its venture backers by The Wideman Company, a cash flow focused, high touch real estate investment firm. The deal gives RealtyMogul a long term owner while keeping its brand and digital marketplace intact, supporting a member base that has invested more than $1.2B of equity into properties valued above $8B. The Wideman Company says the acquisition will bring additional capital and strategic support to expand RealtyMogul’s offerings and deal flow for individual investors and real estate sponsors. - learn more

                                                                          Download the dot.LA App

                                                                          RELATEDEDITOR'S PICKS
                                                                          Trending