LA Tech Updates: TikTok pays Creators as Rivals Dig In, Amazon Reportedly Eyes Sears, J.C. Penny Stores

Taylor Soper, GeekWire
Taylor Soper is GeekWire's managing editor, responsible for coordinating the newsroom, planning coverage, and editing stories. A native of Portland, Ore., and graduate of the University of Washington, he was previously a GeekWire staff reporter, covering beats including startups and sports technology. Follow him @taylor_soper and email taylor@geekwire.com.
LA Tech Updates: TikTok pays Creators as Rivals Dig In, Amazon Reportedly Eyes Sears, J.C. Penny Stores
Photo by Bryan Angelo on Unsplash

Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.

Today:

  • TikTok Pays Creators as Rivals Dig In
  • Amazon Wants to Use Sears and J.C. Penny Stores as Fulfillment Centers: WSJ

          TikTok Doles Out Money to Creators, Batting Away Rivals

          Tiktok announced today the first receipts of a $200 million creator fund including several Los Angeles-based app stars. It comes as the social app faces increased competition from those trying to lure away talent and the threat of an outright ban.

          The company has promised to up their funds for rising U.S. creators to $1 billion over the coming three years.

          Among the 19 selected so far is Los Angeles-based Alex Stemplewski, a photographer who shares the impromptu photo shoots he has with strangers in public with his 9.6M followers.

          There's also Justice Alexander, one of the top Latino creators on the app, who captures quick video of the many pranks he plays on his girlfriend and daughter with his 5.4M followers.

          Well-known TikTok-er David Dobrik recently gave away a Tesla to one of his more than 20M followers as part of a sweepstakes for the most heartfelt story.

          The Creator Fund will open their applications in the middle of the month for anyone 18 years or older looking to expand their work on Tiktok. To be considered, creators must have 10,000 followers or at least 10,000 video views in the last 30 days and follow community guidelines.

          President Trump recently signed an executive order that will ban the Chinese-owned company by September 20th unless it's sold to an American company before that date. TikTok has responded by threatening legal action.

          Amazon Wants to Use Sears and J.C. Penny Stores as Fulfillment Centers: WSJ

          live.staticflickr.com

          Amazon is in talks with mall operator giant Simon Property Group to convert Sears and J.C. Penney department stores into package distribution centers, according to a report from The Wall Street Journal.

          The discussions come as Amazon continues to grow its e-commerce empire which has helped contribute to the downfall of brick-and-mortar retailers including Sears and J.C. Penney, which both filed for Chapter 11 bankruptcy protection. That trend accelerated with the pandemic as malls closed and millions of consumers rely on Amazon for online shopping.

          Shares of Simon Property Group, which has 21 malls in California including the Del Amo Fashion Center, Brea Mall and Ontario Mills, jumped on the news. The company is set to report earnings after Monday's market close.

          Adding more warehouses would help Amazon speed up deliveries as the company plans to offer its Prime members 1-day delivery of their orders. Amazon posted $5.2 billion in profits in the second quarter, doubling its bottom line from the same quarter a year ago, despite spending more than $4 billion on COVID-19 initiatives.

          This story was originally appeared on GeekWire.

          ๐Ÿค Musk Picks Texas and ๐Ÿ”ฅTinder AI Picks Your Profile Pictures
          Image Source: Tinder

          ๐Ÿ”ฆ Spotlight

          Tinder is altering dating profile creation with its new AI-powered Photo Selector feature, designed to help users choose their most appealing dating profile pictures. This innovative tool employs facial recognition technology to curate a set of up to 10 photos from the user's device, streamlining the often time-consuming process of profile setup. To use the feature, users simply take a selfie within the Tinder app and grant access to their camera roll. The AI then analyzes the photos based on factors like lighting and composition, drawing from Tinder's research on what makes an effective profile picture.

          The selection process occurs entirely on the user's device, ensuring privacy and data security. Tinder doesn't collect or store any biometric data or photos beyond those chosen for the profile, and the facial recognition data is deleted once the user exits the feature. This new tool addresses a common pain point for users, as Tinder's research shows that young singles typically spend about 25 to 33 minutes selecting a profile picture. By automating this process, Tinder aims to reduce profile creation time and allow users to focus more on making meaningful connections.

          In wholly unrelated news, Elon Musk has announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. SpaceX will move from Hawthorne to Starbase, while X will shift from San Francisco to Austin. Musk cited concerns about aggressive drug users near X's current headquarters and a new California law regarding gender identity notification in schools as reasons for the move. This decision follows Musk's previous relocation of Tesla's headquarters to Texas in 2021.

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          • Penguin Random House agreed to acquire comic book publisher Boom! Studios from backers like Walt Disney Co. - learn more

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          Top LA Accelerators that Entrepreneurs Should Know About

          Los Angeles, has a thriving startup ecosystem with numerous accelerators, incubators, and programs designed to support and nurture new businesses. These programs provide a range of services, including funding, mentorship, workspace, networking opportunities, and strategic guidance to help entrepreneurs develop their ideas and scale their companies.


          Techstars Los Angeles

          Techstars is a global outfit with a chapter in Los Angeles that opened in 2017. It prioritizes local companies but will fund some firms based outside of LA.

          Location: Culver City

          Type of Funding: Pre-seed, early stage

          Focus: Industry Agnostic

          Notable Past Companies: StokedPlastic, Zeno Power


          Grid110

          Grid110 offers no-cost, no-equity programs for entrepreneurs in Los Angeles, including a 12-week Residency accelerator for early-stage startups, an Idea to Launch Bootcamp for pre-launch entrepreneurs, and specialized programs like the PledgeLA Founders Fund and Friends & Family program, all aimed at providing essential skills, resources, and support to help founders develop and grow their businesses.

          Location: DTLA

          Type of Funding: Seed, early stage

          Focus: Industry Agnostic

          Notable Past Companies: Casetify, Flavors From Afar


          Idealab

          Idealab is a renowned startup studio and incubator based in Pasadena, California. Founded in 1996 by entrepreneur Bill Gross, Idealab has a long history of nurturing innovative technology companies, with over 150 startups launched and 45 successful IPOs and acquisitions, including notable successes like Coinbase and Tenor.

          Location: Pasadena

          Type of Funding: Stage agnostic

          Focus: Industry Agnostic, AI/Robotics, Consumer, Clean Energy

          Notable Past Companies: Lumin, Coinbase, Tenor


          Plug In South LA

          Plug In South LA is a tech accelerator program focused on supporting and empowering Black and Latinx entrepreneurs in the Los Angeles area. The 12-week intensive program provides early-stage founders with mentorship, workshops, strategic guidance, potential pilot partnerships, grant funding, and networking opportunities to help them scale their businesses and secure investment.

          Location: Los Angeles

          Type of Funding: Pre-seed, seed

          Focus: Industry Agnostic, Connection to South LA and related communities

          Notable Past Companies: ChargerHelp, Peadbo


          Cedars-Sinai Accelerator

          The Cedars-Sinai Accelerator is a three-month program based in Los Angeles that provides healthcare startups with $100,000 in funding, mentorship from over 300 leading clinicians and executives, and access to Cedars-Sinai's clinical expertise and resources. The program aims to transform healthcare quality, efficiency, and care delivery by helping entrepreneurs bring their innovative technology products to market, offering participants dedicated office space, exposure to a broad network of healthcare entrepreneurs and investors, and the opportunity to pitch their companies at a Demo Day.

          Location: West Hollywood

          Type of Funding: Seed, early stage, convertible note

          Focus: Healthcare, Device, Life Sciences

          Notable Past Companies: Regard, Hawthorne Effect


          MedTech Innovator

          MedTech Innovator is the world's largest accelerator for medical technology companies, based in Los Angeles, offering a four-month program that provides selected startups with unparalleled access to industry leaders, investors, and resources without taking equity. The accelerator culminates in showcase events and competitions where participating companies can win substantial non-dilutive funding, with the program having a strong track record of helping startups secure FDA approvals and significant follow-on funding.

          Location: Westwood

          Type of Funding: Seed, early stage

          Focus: Health Care, Health Diagnostics, Medical Device

          Notable Past Companies: Zeto, Genetesis


          KidsX

          The KidsX Accelerator in Los Angeles is a 10-week program that supports early-stage digital health companies focused on pediatric care, providing mentorship, resources, and access to a network of children's hospitals to help startups validate product-market fit and scale their solutions. The accelerator uses a reverse pitch model, where participating hospitals identify focus areas and work closely with selected startups to develop and pilot digital health solutions that address specific pediatric needs.

          Location: East Hollywood

          Type of Funding: Pre-seed, seed, early stage

          Focus: Pediatric Health Care Innovation

          Notable Past Companies: Smileyscope, Zocalo Health


          Disney Accelerator

          Disney Accelerator is a startup accelerator that provides early-stage companies in the consumer media, entertainment and technology sectors with mentorship, guidance, and investment from Disney executives. The program, now in its 10th year, aims to foster collaborations and partnerships between innovative technology companies and The Walt Disney Company to help them accelerate their growth and bring new experiences to Disney audiences.

          Location: Burbank

          Type of Funding: Growth stage

          Focus: Technology and entertainment

          Notable Past Companies: Epic Games, BRIT + CO, CAMP


          Techstars Space Accelerator

          Techstars Space Accelerator is a startup accelerator program focused on advancing the next generation of space technology companies. The three-month mentorship-driven program brings together founders from across the globe to work on big ideas in aerospace, including rapid launch services, precision-based imaging, operating systems for complex robotics, in-space servicing, and thermal protection.

          Location: Los Angeles

          Type of Funding: Growth stage

          Focus: Aerospace

          Notable Past Companies: Pixxel, Morpheus Space



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          ๐Ÿš One Step Closer to Air Taxis in LA
          Image Source: Joby Aviation

          ๐Ÿ”ฆ Spotlight

          Joby Aviation, a pioneering electric air taxi company, has achieved a significant milestone by successfully flying a hydrogen-electric aircraft demonstrator for 523 miles with only water as a byproduct. This groundbreaking flight showcases the potential for emissions-free regional travel using vertical take-off and landing (eVTOL) aircraft, eliminating the need for traditional runways. The company's innovative approach combines its existing battery-electric air taxi technology with hydrogen fuel cells, paving the way for longer-range, environmentally friendly air travel.

          For LA residents, this development holds exciting implications for future transportation options. Joby's technology could potentially enable direct flights from LA to destinations like San Francisco or San Diego without the need to visit conventional airports, offering a cleaner and more convenient alternative to current travel methods. The company's progress in both battery-electric and hydrogen-electric aircraft positions it at the forefront of next-generation aviation, promising to revolutionize urban and regional mobility.

          Notably, Joby Aviation has already made strides in Southern California by securing an agreement with John Wayne Airport earlier this year to install the region's first electric air taxi charger. This strategic move sets the stage for LA to be among the initial markets where Joby will launch its electric air taxi service. With plans to commence commercial operations as early as 2025 using its battery-electric air taxi, LA residents may soon have access to a fast, quiet, and environmentally friendly mode of transportation that could significantly reduce travel times and traffic congestion in the region. In the not too distant future, LA might find itself in an identity crisis without traffic and excess smog ๐Ÿคž๐Ÿคž.


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