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XWhy Do People Resist New Technology Like Electric Vehicles?
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
Last week California air regulators voted to ban all new internal combustion car sales starting in 2035. The news was met with a predictable mix of responses: Some lauded the decision as forward-thinking and environmentally responsible; others saw it as government overreach–an attack on consumer freedom and the free market.
Whether the arguments against EVs are in good faith or not (they’re often not), the fact remains that this burgeoning technology has been met with fierce resistance since Teslas started hitting the road back in 2008. It’s easy to find examples of people keying EVs, rolling coal to spite them or blocking chargers with gas-powered cars.
A part of human nature is naturally resistant to change and to the unknown. It has served us well evolutionarily over the past 200,000 years. Tradition keeps us safe when it comes to eating the right wild berries or choosing a route to the next town. It wouldn’t surprise me to learn that there were people in the Roman Empire spreading myths about how using indoor plumbing makes your sword hand weak, or that riding in a chariot would make your uterus fall out. Even without political tribalism and pressure from the fossil fuel industry, new tech can be divisive.
Rosabeth M. Kanter, a professor of business at Harvard Business School, who studies these ideas, says the number one reason people resist change is that they fear a loss of control over their lives. This may explain why the ban on new gas cars in California has faced some backlash.
“For people who are feeling like life is slipping out of their control–that sinister forces are pushing them around–they're likely to not want to be forced into making a change,” says Kanter. Whether or not the state could have accomplished the same goal without a mandate is debatable, but due to the California Air Resources Board’s successful history of driving national policy with ambitious state-level laws, it’s not surprising they chose to take that risk.
However, Kanter also notes that plenty of new tech innovations have been welcomed with open arms. Take the smartphone, for instance. Steve Jobs announced the iPhone in 2007. By 2017, 77% of Americans owned a smartphone. Cars, of course, were always going to be slower transition—after all, the lifecycle of a car is at least three or four times as long as that of a smartphone. But why has there been so much cultural resistance to the growing EV market share?
The biggest and most obvious answer is cost. Smartphones aren’t cheap, but there’s a big difference between $700 and $70,000. The current batch of EVs on the road are simply too expensive for the average person to afford. Knowing that demand would outstrip initial manufacturing capacity, EV makers have chosen to offer luxury models first in order to make as much money as possible while ramping up production. And while legacy OEMs are beginning to enter the scene and change this dynamic, we’re still early in this story and costs are still extremely high.
Kanter says that to get consumers to adopt new tech, the transition has to be smooth. It has to be easy. Remember taking your flip phone to a Verizon or AT&T and trading it in for a smartphone? These companies made it simple and offered excellent financing plans–just a few extra dollars added to your bill every month. And while there are about a thousand different EV rebates and incentives on offer (see Wednesday’s newsletter) finding and understanding how to apply these deals is a whole lot harder than trading in a Motorola Razr for an iPhone.
Regarding smooth transitions: Charging infrastructure remains another huge impediment. While EV range anxiety is perceived to be much more of an issue than it actually is, the fact remains that America’s charging infrastructure is inadequate–especially rural areas in the middle of the country. If California wants to get everyone in an EV as quickly as possible, the state will need to make EV charging as seamless as gassing up.
Another thing Kanter says made the transition to smartphones different from EVs and other technology. New phones offered immediate and obvious benefits. Maps and internet access alone would’ve sold the devices. They also connected customers to networks that were pretty much inaccessible without the device. Nobody wants to miss out on the group chat drama. “The minute they see things that are benefits for themselves, you don't have to argue with them anymore,” says Kanter. “The benefits are right there in front of them.”
The benefits of electric vehicles, on the other hand, are more subtle or even existential. Calculating the cost of recharging the vehicle or the cost per mile of driving almost requires some familiarity with high-school physics. While the math isn’t necessarily complex or difficult, it’s new and foreign enough to present a barrier. Yes, it’s usually cheaper per mile to drive an EV than to fill up with gas, but to figure that out you have to know what a kilowatt hour is and how many your car consumes per mile of travel and how much electricity costs per kilowatt hour. Climate benefits only really apply at a society- and perhaps planetary level.
Of course you have this entire debate playing out against a climate in which batteries and gasoline have somehow become political footballs. If “opposing any policy from the other side” remains de rigueur in Washington, EV adoption will be slowed by politics…until the transition is truly seamless and the benefits are impossible to ignore.
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David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
How Replify Found Its Niche and an Acquirer
🔦 Spotlight
Hello LA,
This week’s startup story began three years ago with an AI assistant built for almost any small business. It ended, or perhaps graduated, with an acquisition by one of the fitness industry’s largest technology providers.
ABC Fitness has acquired Replify, an AI platform that manages customer communication for gyms and wellness businesses across phone, text, email and chat. Its virtual agents can answer questions, qualify leads, schedule tours and classes, follow up on missed calls and run outbound campaigns. Financial terms were not disclosed.
Before Replify found its footing in fitness, it was HeyLibby, a general-purpose AI assistant founded in 2023 by former Zillow colleagues Spencer Rascoff, Tony Small and Anna Rodriguez. The company was incubated inside Rascoff’s 75 & Sunny Labs and initially set out to help small businesses turn incoming messages into qualified leads.
That broad vision gave HeyLibby a large potential customer base, from real estate agents and contractors to hairstylists and event planners. But as the team searched for product-market fit, one industry’s problem stood out. Gym and wellness employees were often too busy helping customers in person to answer every call, text or email, leaving prospective members waiting and potential revenue on the table.
That insight reshaped the company. HeyLibby narrowed its focus to fitness and wellness, raised a $4.5M seed round in 2025 and later rebranded as Replify. It went on to work with brands including Gold’s Gym and UFC Gym, proving that its AI agents could do more than answer routine questions. According to the company, customers have captured up to 10 times more leads and shortened sales cycles from roughly 30 days to as little as three to five days.
ABC Fitness became a natural next step. The company provides software to more than 30,000 fitness businesses serving over 40 million members worldwide. By adding Replify to its platform, ABC can offer gyms an always-available AI front desk while bringing Replify’s technology to a much larger global customer base.
Replify’s journey offers a useful lesson amid the rush to build AI products for everyone. The company began with a broad promise, identified a customer with a specific and expensive problem, and built deeply around that need. Gym owners did not need another flashy chatbot. They needed someone to answer the phone when the front desk could not.
Sometimes the smartest AI strategy is simply picking up the call.
More from this week’s LA startup and venture scene below.
🤝 Venture Deals
LA Companies
- Dimension raised a $1.65M seed round backed by Science Inc., UpscaleX, OpenSky, Long Run Capital, 1864 Fund and others. The profitable social-commerce company will use the funding to launch Seller OS more broadly, an agentic AI platform that automates TikTok Shop operations for brands and agencies. - learn more
- Procode raised a $10M Series A led by Health Velocity Capital, bringing its total funding to $14M. The AI-powered medical billing company will use the capital to acquire two additional billing businesses and expand its platform beyond plastic surgery and dermatology into all surgical specialties and ambulatory surgery centers. - learn more
- Antares raised $470M in Series C financing, including $370M in equity and $100M in debt, in a round co-led by Paradigm and Caffeinated Capital. The nuclear energy company will use the capital to commercialize its autonomous microreactors, with an electricity-producing model planned for 2027 and initial deployments at U.S. military installations beginning in 2028. - learn more
- Wilshire Lane Capital participated in Ellis’ more than $10M seed round, which was led by First Round Capital and included Kearny Jackson, 645 Ventures, Harlem Capital, Khosla Ventures and others. Founded by Cadre founder Ryan Williams, Ellis has emerged from stealth with an AI-native operations platform that helps private credit managers reconcile fragmented data and automate workflows such as portfolio monitoring, investor reporting and compliance; the funding will support team growth and further product development. - learn more
- Rebel Fund participated in Dili’s $15M Series A, led by Khosla Ventures, bringing the AI compliance company’s total funding to $21.7M. Dili helps energy, construction, infrastructure and manufacturing companies identify compliance issues by reviewing project data in real time, and will use the funding to expand its team and broaden its platform into additional audit and waste-detection workflows. - learn more
- B Capital led ChipAgents’ $60M Series A2, which brought the semiconductor AI startup’s expanded Series A financing to $134M. ChipAgents will use the funding to scale customer deployments, expand its engineering and go-to-market teams and further develop its AI platform, which automates complex chip design and verification workflows. - learn more
- StoryHouse Ventures participated as a returning investor in Henry AI’s $16.5M Series A, led by FirstMark Capital with backing from Thomson Reuters Ventures, Y Combinator and others. The commercial real estate AI company will use the funding to expand its engineering and product teams and scale Henry Deal, a platform that automates underwriting, offering materials and other back-office work throughout a transaction. - learn more
- Walkabout Ventures and Bungalow Capital co-led Discern’s $10M Series A, bringing the company’s total funding to $17.5M. Discern provides a software-based registered agent service that automates state filings and compliance tasks, and will use the capital to scale its platform following fourfold annual recurring revenue growth in 2025. - learn more
- Starshot Capital participated in Quercus Biosolutions’ oversubscribed $5M seed round, which was led by Serra Ventures and included several climate, agriculture and grower-backed investors. The agtech startup will use the funding to expand its pipeline of AI-designed proteins for fighting herbicide-resistant weeds, begin regulatory work and explore applications targeting fungi, insects and other crop pests. - learn more
- B Capital co-led Flourish Health’s $26M Series A alongside F-Prime and Cherryrock Capital, bringing the youth mental health provider’s total funding to $46M. Flourish will use the capital to expand its psychiatrist-led, in-home care model nationwide, hire and train clinicians and further develop its AI-enabled platform for coordinating care. - learn more
- Powerhouse Capital participated in European Technology Network’s $1.6M seed round alongside Axel Springer, a LADbible co-founder and angel investors from OpenAI and DeepMind. The London-based tech media startup will use the funding to open a larger studio, expand its team, launch a newsletter and increase its livestreamed programming from two shows per week to five. - learn more
LA Exits
- Saltair, the Los Angeles body-care brand founded by model and entrepreneur Iskra Lawrence, is selling a majority stake to private equity firm TSG Consumer. Financial terms were not disclosed, but the deal will support Saltair’s expansion across e-commerce, retail and new products, while Lawrence transitions into the role of chief community advocate. - learn more
- Digital marketing agency GR0 plans to acquire Ultimate AI’s enterprise deployment division and use the team’s technology to launch a new company called GR0 AI. The platform will deploy AI agents across brands’ customer data, commerce and marketing systems to personalize outreach, recover abandoned sales and generate measurable revenue; financial terms were not disclosed. - learn more
From Uber to Atoms: Travis Kalanick’s $1.7 Billion Return
🔦 Spotlight
Hello LA,
Nine years after his turbulent exit from Uber, Travis Kalanick is back with a new company, an enormous war chest and, apparently, some unfinished business.
Los Angeles-based Atoms announced this week that it has secured a $1.7 billion equity investment led by Andreessen Horowitz, with a16z cofounder Ben Horowitz joining its board. Bain Capital, Fifth Wall, Uber and several other investors participated, while a roster of major banks, including Goldman Sachs, JPMorgan and Bank of America, are listed as debt partners.
Yes, Uber itself is now backing the comeback of its famously ousted cofounder. Silicon Valley may preach disruption, but it has always appreciated a good redemption arc.
Atoms is the culmination of the company Kalanick has spent the past eight years building largely out of public view. Formerly known as City Storage Systems, the parent company behind CloudKitchens, it is now bringing its businesses together under one ambitious umbrella: Atoms Food, Atoms Mining and Atoms Transport.
The premise is that AI’s next major frontier will not be confined to screens, chatbots or software. Atoms wants to build what Kalanick calls a “computer for the physical world,” using software, sensors, robotics and AI to automate how physical goods are produced, stored and moved.
That means tackling decidedly unglamorous but enormous industries such as mining, construction, food production and heavy transportation. Rather than betting on humanoid robots that can theoretically do everything, Atoms is focused on specialized machines designed to perform specific, economically useful jobs.
In other words, the robot does not need a face. It needs a business model.
For a16z, the investment is as much a bet on Kalanick as it is on industrial AI. In an essay bluntly titled “Travis Is Back,” Horowitz argues that Kalanick possesses the rare mix of technical range, endurance and sheer force of will required to drag old-line industries into a new technological era. The firm’s broader thesis is that robotics will eventually handle much of the repetitive work involved in making, moving and storing physical goods, creating a market potentially as consequential as computing itself.
There is also some history being settled. Kalanick, Horowitz and Marc Andreessen nearly partnered during Uber’s early days but never completed the deal. In a new conversation about Atoms, Kalanick and Horowitz revisit that missed opportunity and the long road that brought them back together. Sixteen years later, the check is considerably larger.
The scale of the investment is remarkable, but so is its location. Atoms is headquartered in Los Angeles, giving the city a front-row seat to one of tech’s boldest industrial AI bets. It also reinforces something increasingly evident across LA’s startup ecosystem: the next era of AI will not only be written in code. It will be built in kitchens, warehouses, mines, vehicles and factories.
Whether Atoms becomes the operating system for the physical world or simply proves that even $1.7 billion cannot make atoms behave like bits remains to be seen. But Kalanick is taking another enormous swing, and this time, Los Angeles is where the comeback story begins.
More from this week’s LA startup and venture scene below.
🤝 Venture Deals
LA Companies
- Hawthorne-based Andrenam raised an $18M Series A led by Upfront Ventures, with participation from Valor Equity Partners, Also Capital, First Round Capital and Long Journey Ventures, bringing its total funding to $30M. The maritime defense startup will use the capital to scale production of its sonar-equipped buoys and expand its AI-powered platform for detecting and tracking underwater activity. - learn more
- Long Beach-based Bluecore Energy emerged from stealth with approximately $10M in oversubscribed financing led by Slauson & Co., with participation from Harlem Capital, Precursor Ventures, Hartbeat Ventures and others. The company is developing small modular nuclear reactors that can operate aboard floating barges and deliver zero-emission power to ports, data centers and other critical infrastructure. - learn more
- Vikk AI raised $4.2M across a $700K pre-seed and $3.5M seed round, with backing from MagnaSci Ventures and several angel investors. The legal AI startup will use the funding to expand its consumer assistant, document tools and advertising platform that connects users with lawyers based on their needs and location. - learn more
- Final Boss Sour raised $4M in strategic funding from Evolution VC Partners, The Angel Group, Mondelēz International’s SnackFutures Ventures and others, bringing its total funding to $12M. The gaming-inspired real-fruit snack brand will use the capital to expand into major retailers, including Walmart, Kroger, Target and 7-Eleven, while developing new products and collaborations. - learn more
- Overture Ventures participated in Fluxco’s $26M seed round, led by 8VC and Congruent Ventures, alongside Trust Ventures, Koch Disruptive Technologies and others. The Austin startup uses AI to help companies source electrical transformers from more than 150 manufacturers, reducing a procurement process that can take months to just days. - learn more
- Alexandria Venture Investments and Wedbush Healthcare Partners participated as returning investors in Crystalys Therapeutics’ oversubscribed $130M Series B, which was led by Frazier Life Sciences. The San Diego biotech will use the funding to advance Phase 3 trials and commercialization preparations for dotinurad, its once-daily oral treatment for gout. - learn more
- Rebel Fund participated in Klaimee’s $5.5M seed round, led by FundersClub’s Alexander Mittal and backed by ex/ante, Pioneer Fund, Y Combinator and others. The San Francisco insurtech startup certifies and insures autonomous AI agents, helping businesses manage financial and liability risks that traditional cyber and technology policies may not cover. - learn more
- M13 participated in Skyfall AI’s undisclosed funding round alongside Fidelity, Inovia Capital, Touring Capital, NextView Ventures and Garage Capital. Founded by former Microsoft researchers, the San Francisco startup is developing AI systems capable of making long-term decisions across finance, operations, marketing and other business functions, with the goal of building an autonomous enterprise. - learn more
- Interlagos Capital led Beyond Reach Labs’ $10M seed round, with participation from TerraForge Capital, Off-Piste Capital, Y Combinator and Augur VC. The startup will use the funding to scale production of its deployable solar-array hardware for satellites at a new 16,000-square-foot facility in Brooklyn, with plans to achieve flight qualification by the end of 2026. - learn more


