"state of play"

Before there was TikTok, the long since defunct Vine was the short social media platform. Now one of Vine's founders and one of its creators are pushing to build a new video app to help creators make money easier than they can on TikTok or any of the other crowded social media apps.

Clash rolled out new features on Tuesday that let anyone make money from videos regardless of follower count – the strategy is a direct response to companies like Instagram and YouTube, where creators have to be "verified" to earn any form of cash.

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  • After WeWork, VC's noticed a major shift in how founders were pitching their companies. Growth and costly customer acquisition strategies are out while profitability is in.
  • Some VC's, scared off by high valuations, are holding back their dry powder waiting for the market to cool. For instance, PLUS Capital's team compiled a list last year of companies it wanted to invest in if only the price was cheaper.
  • VC's are excited about employees leaving SpaceX and starting new companies. "That talent is going to be game changing."

As the new decade begins, Southern California's tech scene continues to sizzle. More than 7,000 investors have poured money into 4,768 startups, ranging from a unicorn that aspires to have scooters whizzing through every city on earth to one that has ambitions to colonize Mars to the thousands of smaller companies just trying to get to their Series A, according to data analyzed by dot.LA.

"No one is doubting L.A.'s place in the tech ecosystem anymore," said Arteen Arabshahi, vice-president at WndrCo. "People realize L.A. is meaningful."

Last year ended with what is arguably the most consequential local acquisition to date when Paypal bought Honey for $4 billion. According to Pitchbook, L.A. VC exit deal flow hit $8.4 billion last year, the second highest amount ever after 2017, when Snap went public.

"I don't think Los Angeles will ever be Silicon Valley," said Brian Lee, co-founder and managing director of BAM Ventures. "We don't have grandparents named Fairchild Semiconductor and we don't have aunts and uncles named Google and Yahoo. But we are growing and we do have some great businesses being started here."

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Gov. Gavin Newsom will lead the state of California for another year after defeating the recall effort by a nearly 28-point margin.

While Newsom credited his win to a voter rejection of loosening mask and vaccine mandates, a tenet of G.O.P. frontrunner Larry Elder's campaign, the victory also signals that the state's unusually close ties with the tech industry will go uninterrupted — at least until voters flock to polls again to select a governor on November 8, 2022.

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