Slack’s Stewart Butterfield: Collaboration Means Leadership From Everywhere

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.

Slack’s Stewart Butterfield: Collaboration Means Leadership From Everywhere

Stewart Butterfield is the co-founder and chief executive officer of Slack, a collaboration hub beloved by more than eight million daily active users. In this episode, Spencer joins Stewart at Slack's San Francisco headquarters to discuss their recent partnership with Atlassian, Slack's unique origin story, managing through growth and adversity, and how Slack is fundamentally changing communication at work.


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

Spencer Rascoff: Today I'm in San Francisco in the offices of Slack, and I'm with Butterfield. Stewart, thanks a lot for having me. It's great to have you here.

Stewart Butterfield: My pleasure.

Rascoff: So, congratulations, first of all. The timing of this worked out great. There was some huge news that came out about Slack and HipChat. Why don't you just share the news, and we can talk about it.

Butterfield: Sure.

Rascoff: What did you announce?

Butterfield: We've been working with Atlassian for a couple of years now on general partnerships. So, we make Slack the hub for collaboration or messaging for work or however you want to characterize it, and they make Jira, which is a really popular bug and issue tracker ticketing system used for all kinds of things. They make Confluence, which is like a Wiki/knowledge management tool, Bitbucket, source code control kind of like GitHub, and a whole bunch of other products.
And they also had a product called HipChat traditionally, and then about a year ago they introduced a new product called Stride which was their replacement for HipChat, and both HipChat and Stride were competitive with Slack. We still worked with them really well because we collectively had, at this point, hundreds of thousands of organizations who were using Slack with at least one Atlassian tool, like — I forgot to mention — Trello, task management application.
And we had no problem competing with them and cooperating, and they didn't either, but I think they came to the realization that the resources that they were investing in those products was probably better invested in their core products, which are, you know — in terms of market share, in terms of revenue — are much, much larger and go deeper on the partnership. And I think that was a really smart move, you know, very well-rewarded by the market and analysts. I got a lot of congratulatory emails saying that was brilliant, and I said, “We executed well, but I've got to give them credit for the idea." And I think it was a really unusual move for someone to make.

Rascoff: Yeah. I've never seen — so, what they basically did was they said they were gonna wind down HipChat and sell you the customer list and the IP —

Butterfield: Mm-hmm. Not even the customer list.

Rascoff: OK.

Butterfield: We're working together with them. So, we built a whole migration tool. They're messaging all of their customers, and definitely no one is being forced to migrate, but we wanted to extend the same pricing that they had to all those customers and just make it as easy as possible for people to move over.

I think there's a long history — if you go back to, like, what Microsoft looked like to IBM in 1982, or what Google looked like to Microsoft in 2001, or what Facebook looked like to Google in 2006-2007 — of a smaller, focused start-up with traction versus a larger incumbent that has multiple lines of business, and there's just a real advantage, I think, that you get in terms of the experience you can provide to customers and the kinda clarity and focus. So, I think there's — that's not always true, sometimes the big company squashes the smaller one, and in fact maybe that's more often true — but there's definitely a handful that make it out. So, I mean it feels good, but it doesn't feel good because that came at the expense of someone else, you know.

Rascoff: Right.

Butterfield: That feels good because we have thousands — tens of thousands of customers tweeting stuff, like, every day, posting to Facebook, telling their friends, insisting at their new employer that they evaluate Slack 'cause they used it at their old employer because they really like it.

Rascoff: I get the sense that the culture is not a competitor-focused culture, it's more of a persona-focused culture, customer-focused.

Butterfield: Yeah.

Rascoff: Employees come here every day trying to do the right thing by your users, and sort of whatever happens in the competitive landscape happens. Is that fair to say?

Butterfield: Yeah. No one will ever get fired because they were too good to a customer.

Rascoff: Right.

Butterfield: Including “good" in the sense of lost revenue opportunities or deferred revenue for us. We really believe in the long run — and I want to be doing this for the next 20 or 30 years, and, you know, it'd be great if the company existed for a couple hundred thousand years, couple hundred million years, who knows. In the long run, the measure of our success will be how much value we created for our customers. 'Cause you can always be the exploiter, you know, you can always be extracting more value than you can create but not for long. That just doesn't work for the universe for very long.

Customers are not gonna consistently choose Slack every year, every year, no matter what happens in the marketplace, no matter what other products arise, what other systems, if we're just trying to suck more money out of them and not make it actually something that's worth their while. I mean, the ideal case is for every dollar they spend with us they're getting back $10 or $100 or who knows in value. So yeah, we're definitely not focused on what competitors are doing, we're aware — we actually have a saying inside, “Competitor aware, customer obsessed."

Rascoff: I like that.

Butterfield: Yeah.

Rascoff: So, my first start-up, Hotwire, was very competitor focused. We were really focused on Priceline, and Zillow, my next start-up, is not so competitor focused. We're really consumer focused and persona focused. And it's a much more inspiring place to work when you're persona focused and not competitor focused. It's a little bit — I don't know, it's a little bit hollow, almost, to be overly competitor focused.

Butterfield: Yeah. I think it's easier for us to take that position than many other companies. If you're one of, I don't even know, let's say 1,200 restaurants in SoHo, in New York.

Rascoff: Right.

Butterfield: People have a lot of choice, and they're also not gonna go to your restaurant every time. And for Hotwire and most other travel sites, it's like it's a purchase-by-purchase decision, and people might have three tabs open —

Rascoff: It's much more zero-sum, yeah.

Butterfield: Yeah, and they're looking all over the place. Whereas — and certainly people can evaluate all kinds of software that they might use in the enterprise, but the commitment to actually make a purchase or invest is, like, something that happens over the course of months, you know.

Rascoff: Right.

Butterfield: And it's a much bigger just in terms of, like, literally the calories, like the glucose burned in their frontal cortex of the human beings who are doing this — is, like, a million times greater 'cause you have to shift the behavior of, you know, depending on the size of the company, dozens of people, hundreds of people, thousands of people, against habits they had formed over, like, the last decade or two.

Rascoff: So today, Slack is incredibly successful, of course, riding high from this recent announcement, but that's just a proof point. You know, so we don't need to dwell on it. It wasn't always that way. So, Slack rose from another company that was not as successful, so can you describe the founding story and sort of the early days of how Slack got started?

Butterfield: Sure. Here is the fastest possible version. Back in 2002, in, like, the really dark days — post-9/11, post-WorldCom and Enron, post-dot-com crash, NASDAQ down 80 percent, S&P 500 down 65 percent — we started a web-based massively multiplayer game company, which was not very well-timed. That ended up turning into Flickr through other means. Flickr got bought by Yahoo. A group of us went to go work for Yahoo.

Nine years — or sorry, seven years — later, 2009, we decided to try it again. We started another web-based massively multiplayer game company, which also failed. After about three and a half years, we had 45 people working on it and a pretty eclectic group because there's, like, some really serious, hardcore back-end engineering challenges, but there's also writers and artists and animators and musicians, and there is, of course, a business operations team and customer support.

And over the course of those three and a half years, we had started using a pretty ancient Internet technology called Internet Relay Chat, or IRC, which predates the web by a couple of years. And over the course of that three and a half years, just, like, one at a time and a pretty jury-rigged, hacky fashion, fixed the things that we thought were really annoying, like the kind of — the most irritating problems and challenges we had around internal communication or, conversely, the opportunities for improvements that seemed most obvious.

And then over the course of these years, we had this system for internal communications where it was a real virtuous circle; the more people paid attention to it, the more information we would route into it.

Rascoff: What did you call it internally?

Butterfield: It didn't even have a name. I think this is one of the reasons it had such incredible product market fit is there was, like, no ego involved in this. There was no speculation about what a user might want or like. This was just, like, how can we spend the minimum number of minutes to fix or improve this and then go back to what we were supposed to be doing and —

Rascoff: And it was just used for employees, the 45 employees that were working on this game that was not finding traction in the marketplace.

Butterfield: Yeah. Like, I don't even know if you — or if I did an interview at that time and someone said, like, “How do you all work?" I probably would have mentioned it, but it wouldn't have seemed very significant. At the end of the process, though, when we decided to shut down the game, we realized, “Hey, we would never work without something like this again, and probably other people would like it."

So, we had this blueprint which we executed against, and as soon as we put it in the hands — I mean not as soon as, 'cause the first couple customers are almost impossible to get. We had to beg our friends to please try it, please try it. 'Cause one of the challenges for Slack and things like it is you can't unilaterally decide — I mean, you maybe can 'cause you're the CEO — but one can't typically unilaterally decide that they're gonna use Slack to communicate with their team; everyone has to agree. Whereas somebody like, say, Dropbox — I've been paying for Dropbox for seven years or something like that. I'm a very, very happy customer — I didn't want to have to back anything up. I have multiple computers, seemed like a great solution. I just did it, but you can't do that with Slack, right? You need to get at least two people —

Rascoff: Right, you need buy-in from the rest of your —

Butterfield: Yeah, yeah.

Rascoff: Right.

Butterfield: And that needs to happen not, like, sequentially over the course of a year but more or less around the same time, and it's disruptive 'cause it's a change to how you communicate internally. So, I don't want to underplay that as a challenge. But once we did get groups using it, we found they just kept on using it, and the usage inside those companies grew, and people were very happy. And the same thing happened for them as happened for us: the more information you routed into it the more attention people paid, and the more attention people paid the more information you added into it, until, like, finally there was one kind of focal point for where work happens across the whole organization.

Rascoff: So, when you pivoted this gaming start-up to an office collaboration technology start-up, were there some people that either said, “Hey, I'm not in on that next mission," or people that weren't a good fit for what you needed?

Butterfield: Oh no, I mean — the actual shutdown — I'm glossing over the trauma.

Rascoff: OK.

Butterfield: It's pretty brutal. I mean, there was 45 people, we laid off 37 of them.

Rascoff: OK.

Butterfield: And, you know, for entrepreneurs in the audience who have been doing it for a while I'm sure they'll recognize the ups and downs. But I mean, first of all, it's humiliating personally 'cause, you know, I put a lot of my own credibility on the line, and I talked to press and investors and saying we're gonna do this and that, and then it doesn't work. And that feels bad for me individually. But much worse is the fact that I convinced most of these people to come work at the company and to give up some other opportunity that they had.

Rascoff: Right.

Butterfield: In some cases, to move to a different city. I mean there was a moment when I was announcing it internally where I kinda was just looking around the room while I was talking. First of all, I started crying almost immediately, before I got the first sentence out, but then I, like, locked eyes with one guy who, just a couple months ago had moved from a different city, away from his in-laws who were helping take care of his at that point, I think 18-month-old daughter and buy a house in this new city. And then I was telling him, “Sorry, you don't have a job anymore."

So, happy ending on that one because we hired him back about six or nine months later and he was a very early Slack employee and happy. But yeah, I mean, we don't have a big need for musicians at Slack or animators or level designers or a lot of the disciplines. So, that was, like, a — it was a pretty dark time for a while and took us a few months to — because we had money left, we were able to do it in a relatively elegant way, so a couple months to kinda clean it up.

Rascoff: Right.

Butterfield: So, offer our customers their money back, or we could donate it to a charity on their behalf, or we could keep it, to put a lot of effort into making sure that people got other jobs. We built, like, this whole website with everyone's resume and portfolio, and we did some interview coaching and wrote reference letters and got everyone else a job.

Rascoff: This was in Vancouver mostly.

Butterfield: This was, yeah, Vancouver and San Francisco, but Vancouver was the larger office at that time, and then — so, that's the end of 2012, beginning of 2013, and we start making Slack middle of 2013. We had started using it ourselves and we tried to get some friends to use it. August of 2013, we did private beta, which we called a “preview release" 'cause we didn't want people to think it was flaky. February of 2014, so four and a half years ago, we officially launched it and started charging and stuff like that. So, it was really fast, like 14 months.

Rascoff: Right.

Butterfield: And by the time we launched it, there was about 15,000 daily active users, and the teams were really sticking and there was just — like I said, this incredible product market fit out of the gate, which, to be honest, I think has propelled us to where we are today, four and a half years later.

Rascoff: I mean, managing through adversity for a leader but also for the whole company frequently makes the company all that much stronger and better. Probably somewhere in the Slack DNA, and definitely in your management DNA, are lessons learned from that period.

Butterfield: Yeah.

Rascoff: As the company has scaled to today — to 1,000 employees, eight offices — what are some lessons that you've learned as a leader through that growth period? How have you changed as a leader and as a manager? You know, what are some things that other listeners can learn from having managed through that growth?

Butterfield: It's more like what hasn't changed? I mean, I have been making software for about 25 years, like professionally, and I'm 45 now, and I'm good at product design, good at software development. I'm probably not gonna get any better at this point, not because I'm so great at it but just because, like, now I'm relatively old, and I've been doing it for so long that if I was gonna get better it would have happened in the last 25 years. And I'm sure I have other significant skills as well, but I feel like that was the strength in my career that got me to where I am, and now that's largely irrelevant. How good — I mean, I'm sure —

Rascoff: Because you have a team that's doing the —

Butterfield: Yeah, 'cause there's 1,200 employees.

Rascoff: Right.

Butterfield: And I'm not gonna make any — you know, like, I could make 10 basis points and, like, one-tenth of a percent worth of the significant decisions on the product development side, and hopefully I make a contribution on strategy, but my job is just completely different, and it took me a long time to figure it out. And I'm sure I wouldn't have said this to you at the time, but if you asked me two years ago what my job was, I would have thought inside my head, very secretly, only to myself, that my job is to be smarter than everyone else and to make all of the really important decisions.

And I didn't mean that, like, coming from an egotistical place, I just felt the pressure of, like, I need to be able to approve anything that's happening. I need to be able to, like — when there was an irreversible, very significant decision for the company, I had to be the one to make it, which, you know, I think actually is still a little bit true today. But when there was irreversible-but-unimportant decisions or reversible-but-important decisions, I didn't need to be the one making those.

So, it took me a long time to figure out what the job actually was, and to me there's three components. So, one, set the strategy and vision for the company, which sounds very lofty, but it isn't super time consuming. We had a great vision out of the gate. We had a great strategy out of the gate. Like, we haven't changed our pricing. In fact, we have set the — the pricing was proposed before we even started developing Slack, and we haven't changed it, and maybe there's better pricing, but it must have been pretty close 'cause it's working.

And the kind of — the positioning we put ourselves in, which is we want to build up to the edges of other software but not necessarily compete with them. We don't want to make document-editing tools, we're not gonna make calendaring tools, we're not gonna make, like, a bug or issue tracker, but we want to make your experience at each of those tools which you already use better because you use Slack.

The second thing is kind of a basket of governance, administrative, supervisory duties, and we have a great GC, we have a great CFO, so that actually doesn't take that much of my time either.

Which leaves a third bucket, which should be almost all of my time, which is ensuring that the performance of the organization, as a whole, is as high as possible. And I didn't think about that as my job, and because I didn't I also didn't delegate that. So, I think we were in a position a year ago, and I think we're still working out of this, where most of the executive team was making most of the decisions, you know. We would spend time, collectively, looking at spreadsheets where each row was a thing that someone was working on and saying, “Is this thing higher or lower priority than that thing? Is it the right team working on it?" And that actually would be fine at 100 or 200 people — it doesn't work at the scale that we're at now, and it's certainly not gonna work at the scale that we're gonna be at at a year and a half or two years from now.

Rascoff: So, setting the vision, but most importantly up-leveling the organization. A lot of that is around motivation, communication, employee comms.

Butterfield: Yeah.

Rascoff: So, the culture at Slack is — it seems very similar to ours. I mean, you have this phrase, “Work hard and go home." What does that mean, and how would you describe the culture here?

Butterfield: So, yesterday I did a new hire welcomes — I do, like, every two weeks — it's like the batch of people who started, and I tell them about that. I don't really actually know if we have it up at our new office, but we will at some point — we definitely had it up at our old office. And I say we had this thing up on the wall that says, “Work hard, go home." Pause, beat, beat. Everyone understood the “go home" part, and everyone laughs.

The work hard part — the point of the whole thing was we want to be able to hire all kinds of people.

Rascoff: Yes.

Butterfield: And some people got kids, and they can't stay till 8 p.m. or 9 p.m. or 10 p.m. Some people have other stuff. They're active volunteers in their community. Their church is important to them. They have hobbies that are significant. And if we can be disciplined, professional focused while we're at the office and really take the best advantage of those, I don't know, four to maybe six hours of really creative, kind of focused intelligent work, then we could all just go home earlier and do other things and rest up and kind of be prepared to do this for years and years — as opposed to play foosball for 45 minutes in the middle and then have a two-hour lunch and spend a lot of time talking about TV shows or going to karaoke that night or whatever it is. That was really important to us.

It took me awhile, until really recently, to think, “You know, we have mission and vision, strategy — we have values," but the thing that became most significant for me in thinking about what kind of culture we wanted to build were these four attributes that someone else mentioned to me, a guy named Suresh Khanna, who last I heard was the CRO at AdRoll, a retargeting company. And I was going for a walk with him once, and he mentioned just in an offhand way that he looks to hire people who are smart, humble, hard-working and collaborative. And for some reason that combination, that phrase really stuck with me.

So, like, a year or maybe two years later, I'm not even — I guess probably two years later, I realized, “Wow, that's, like, a really magical combination." And it's not that those are four important attributes and hopefully you have at least one of them as a strength but those in combination. So, you have probably worked with people who are smart and hard-working but neither humble nor collaborative, and there's certainly an archetype that comes to mind when I say that. Conversely, people who are collaborative and humble but neither smart nor hard-working — another different archetype that comes to mind.

Rascoff: Right.

Butterfield: And that's the thing that we want to cultivate. So, smart in the sense of being not high IQ, although that's a bonus if you have it, but oriented towards learning.

Rascoff: Growth mindset.

Butterfield: Yeah, and realizing that your intelligence and creativity are relatively precious things, and if you're going to be spending mental energy on something it shouldn't be something that is routine, that could be made into a checklist, that is kind of — like, there's no point trying to remember that stuff. Computers are relative to humans, perfect at remembering things. And humans are relative to computers; basically, we don't remember anything. Like, we don't — literally nothing. I don't know who I am, where I am, why we're in this room, like, just no memory. Computers can do arithmetic 100 trillion times faster than human beings — and by the way, with perfect accuracy — whereas no matter how good you are at doing math in your head, you're gonna get things wrong once in a while. So, I mean, those are kind of obvious ones. But how quickly can you improve the way that you work, and how steadily can you improve the efficacies? That's smart.

Humble is pretty obvious. Hard-working is pretty obvious. Although I have to point out that humility is kind of a fundamental one in the sense that being smart like that — understanding when you make a mistake and figuring out how to improve it — requires an element of humility. But the one that I think is gonna be least well understood is collaborative 'cause it's a pretty open word. It has a lot of connotations. It's kind of — it's difficult to know what someone means when they say that this person is collaborative, and here we mean something really specific.

Rascoff: That's very hard to evaluate in an interview as well.

Butterfield: Yeah, yeah, it is. So here, we don't mean like meek or submissive or deferential. We don't mean like you have a tendency to go along with what other people want, which I think is what comes to mind when people say “collaborative," at least sometimes. It's kinda the opposite.

But the difference between the best and the worst performing teams, I think, is much, much wider. Like 100 times wider than the difference between the best and the worst performing individuals. So, as long as you're hiring people who are basically competent, you're not hiring, like, completely incompetent people or, like, a bunch of thieves or something like that. You're gonna have better and worse employees, and better typically means not so much they have more talent at fulfilling the tasks — like their role-specific function, like they're better at Excel than the other people in finance — but that they elevate the people around them.

Rascoff: Right.

Butterfield: That they're an important contributor. They're kind of glue for the team. They drive more clarity and alignment. They give good feedback, and they're receptive to feedback and a bunch of other stuff. You think about, like, people that you've had to fire over the course of your career, or people you know of got fired — people do get fired for incompetence sometimes. The overwhelming majority is they didn't work well with other people.

Rascoff: Right, personal issues, yep.

Butterfield: Yeah.

Rascoff: In their relationships.

Butterfield: So, going back, the collaborative sense here is the opposite of those meek, deferential, submissive — it's leadership from everywhere. It's that you take individual responsibility for the health and performance of this team. So, when there are problems you help clear them up. When there is, like, low trust you help drive up trust. When there is a lack of accountability, when there's a lack of clarity around goals or objectives, you take responsibility for driving those up, regardless of who you are. So, I don't even mean just, like, the manager — I mean everyone.

And if there's a real, deep commitment across the organization to improve the performance of the team, everyone as an individual is better off, 'cause would you rather work on a high performing team or a low performing team? And obviously the whole company is much more successful as well.

Rascoff: I feel like I am a much better CEO today in my mid-40s than I was 15 or 20 years ago, because I agree with everything you just said, and I think it's super important, and when I was in my mid-20s I did not.

Butterfield: Yeah.

Rascoff: I didn't understand any of that.

Butterfield: Yeah. Well, I'm — good news, I'm mid-40s as well and would say exactly the same thing. Yeah, 'cause there's a real tendency to believe that it is, like, the heroic contributions of one genius software engineer or, like, one amazing marketer or something like that, and obviously individual contribution matters a lot, but —

Rascoff: Well, you know, it's nice. I mean, your product also speaks to this, right? Your product is about team collaboration, so it's obviously embedded in the culture of the DNA. As is sort of, like, you know, LinkedIn takes really seriously all these issues because the product is about that — it's about working well with others and collaboration and kind of being your best self at work, and Slack likewise has, you know, the product is that vision. But that's your philosophy background coming through, huh?

Butterfield: Yeah, it definitely is. There's actually one more kind of higher level thing that's going on, and that's over the last 30 years the tools for people to get their individual work done have improved dramatically. So, you imagine, like, how a recruiter gets stuff done in 2018 with LinkedIn, with an applicant-tracking system, you know, with tools to check their — well, resume scoring but also job description, language checkers and all this kind of stuff. Compared to walking into an office building and, like, with a pad of paper and writing down the names of all the companies and then going back to your desk and start making phone calls. Or a salesperson who has a CRM and has marketing automation tools and has lead scoring and has LinkedIn sales navigator, software engineer, you just go through the whole list.

Rascoff: And so, because they have more software to help them be more effective at work, what? Collaboration is more important?

Butterfield: Yeah. I think collaboration becomes the limiting factor.

Rascoff: Why? Oh, I see.

Butterfield: So, you think about it from your perspective, as CEO, if you could hire a magic consultant who would come in and through, like, GTD, time management, life hacks, whatever, would make everyone 10 percent more effective at the completion of their individual tasks, which is a significant component of their work, obviously. But people spend at the low end 30 percent of their time and at the high end 100 percent of their time on communication.

So, if you could have that 10 percent improvement in individual worker productivity, or the same magic consultant would drive a 10 percent increase in shared consciousness, like, knowledge of what people across the organization are doing, or 10 percent better understanding of goals, 10 percent more alignment. I mean, those things are harder to measure perhaps, but obviously more significant 'cause more incremental improvements in individual worker productivity are probably not gonna result in as much of a net change because nothing has happened over the last 50 years, with one exception: to improve the way that we communicate and the way we collaborate and the way that we share knowledge and the way that we get to that point where the team is working really well, and that's email.

And mail was a very, very significant step compared to, you know, mimeograph machines and taking paper and rolling it up into a little tube and sticking it into a cubby or interoffice mail or any of those kinds of things. But I think there is a second really significant change that we're part of — and by the way, if this was the industrial revolution, it's like 1870 —

Rascoff: And that change is improving communications in the office.

Butterfield: Yeah.

Rascoff: Email is — you think email is pretty outdated and not interactive, but messaging communication has —

Butterfield: It's a layer of communication that will be around for tens of thousands of years, probably. Like, it'll outlive most of us. And I mean this in a complimentary way, as the lowest common denominator form of communication.

Rascoff: Right.

Butterfield: Like, you can more or less guarantee that every other human being has an email address. But for internal communication, I think it's a pretty terrible choice, and the Outlook window for most people at most companies is that window they have into the workflows across the organization. It's, like, how budgets get approved, how job offers get made, how contracts go back and forth between legal teams, how decisions are communicated and memorialized. Like, it's just — it's almost everything. Your awareness of what's going on happens through that email window, and email is an individual-first mode of communication.

Rascoff: Stewart, thank you so much for the discussion, I really appreciate it. Congratulations on all Slack's success, and I am a happy user, and I look forward to continuing to be for many decades to come.

Butterfield: Yeah, thank you so much.

The post Slack's Stewart Butterfield: Collaboration Means Leadership From Everywhere appeared first on Office Hours.

https://twitter.com/spencerrascoff
https://www.linkedin.com/in/spencerrascoff/
admin@dot.la
This El Segundo Startup Wants to Manufacture Medicine in Space
Varda

🔦 Spotlight

Happy Friday, Los Angeles.

The next major pharmaceutical factory may not be built in Boston, New Jersey or Switzerland.

It may be orbiting hundreds of miles above Earth.

El Segundo-based Varda Space Industries raised a $251M Series D this week to advance an ambitious idea: manufacturing medicines in microgravity and returning them to patients on Earth.

The round was led by Lux Capital and Natural Capital, with participation from Founders Fund, Khosla Ventures, Caffeinated Capital, General Catalyst, 8090 Industries, Giant Step and Also Capital. It brings Varda’s total funding to $598M and reportedly values the company at $1.6B.

That is a considerable amount of capital for a company whose factories periodically fall out of the sky.

Then again, that is the point.

Varda builds compact spacecraft that serve as laboratories and manufacturing facilities in orbit. Its W-Series capsules carry pharmaceutical materials into microgravity, process them in space and return the results to Earth through the atmosphere at roughly 25 times the speed of sound.

Why travel that far to make medicine?

Without gravity pulling molecules downward, certain active pharmaceutical ingredients can crystallize in structures that are difficult or impossible to reproduce on Earth. Those differences could eventually enable drug formulations with improved stability, effectiveness or delivery methods.

The science is not entirely new. Researchers have studied pharmaceutical crystallization aboard the International Space Station for decades. Varda’s challenge is turning that research into something considerably less glamorous but far more valuable: a dependable commercial process.

In other words, the company does not merely want to prove that medicine can be made in space. It wants pharmaceutical companies to treat orbit as another step in the development and manufacturing pipeline.

That requires solving the less cinematic half of the space economy.

Rockets have made it increasingly routine to send cargo into orbit. Bringing commercially useful materials safely and repeatedly back to Earth remains much harder. Varda is building both sides of that equation, pairing microgravity processing with capsules capable of surviving hypersonic reentry.

Varda

Since launching its first mission in 2023, Varda says it has completed six successful reentry missions and has more than a dozen additional launches and returns planned through 2028. This week, the company also launched two W-Series spacecraft aboard the same rocket for the first time, marking another step toward operating multiple orbital factories at once.

The new funding will help Varda increase that flight cadence, expand its pharmaceutical partnerships and move closer to delivering what it hopes will become the first medicine manufactured in space for use by patients on Earth.

There is also a second business descending through the atmosphere.

Because Varda’s capsules encounter extreme hypersonic conditions during reentry, they double as research platforms for government customers testing heat shields, navigation systems and other defense technologies. That gives the company a near-term source of demand while its longer-term pharmaceutical market develops.

The combination is distinctly Southern Californian: part aerospace company, part biotechnology startup and part defense contractor, all operating from a city where building hardware for space has become almost commonplace.

But Varda’s larger opportunity depends on making the extraordinary feel routine.

A single successful space experiment is scientifically interesting. A repeatable network of orbital factories could become an industry.

With $598M raised, six reentries completed and a growing mission schedule, Varda has moved beyond asking whether manufacturing in space is technically possible. The more important question now is whether it can become economical, reliable and useful enough for pharmaceutical companies to adopt at scale.

For decades, Los Angeles helped build the machines that carried people and satellites into space.

Varda is betting the region’s next aerospace industry will be built around what those machines bring home.

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

🤝 Venture Deals

    LA Companies

    • Charter Space raised an oversubscribed $5M seed round led by Crystal Venture Partners, with participation from QED, Blank Ventures, Gaingels and Hustle Fund, bringing its total funding to $8M. The startup will use the capital to expand its sales team and develop insurance products for emerging space activities, including lunar missions, space-based nuclear power and in-orbit spacecraft servicing. - learn more

    LA Venture Funds
    • Emerging Ventures participated in OSCP’s undisclosed Series A, led by New Science Ventures and joined by 2050 Capital. The Montréal company will use the funding to scale production, expand its engineering and sales teams and launch next-generation photonic navigation sensors designed to operate when satellite signals are jammed, spoofed or unavailable. - learn more
    • Slauson & Co. participated in Satlyt’s $8M seed round, led by Non Sibi Ventures and joined by TLCOM, Antler, Launch Africa Ventures, Enza Capital and other investors. The Sunnyvale- and Nairobi-based startup will use the funding to expand its teams and develop software that runs AI directly aboard satellites, reducing costly data transmissions and eventually connecting multiple spacecraft into a shared orbital computing network. - learn more
    • StoryHouse Ventures participated in Parakeet Health’s oversubscribed $10M Series A, led by Canvas Ventures and joined by Blank Space Ventures and HMC INQ. The healthcare AI company will use the funding to expand its platform, which automates patient communications and scheduling, while growing across additional medical specialties and enterprise health organizations. - learn more
    • Parker89 participated in Homeward’s $120M Series D, led by Saluda Grade and joined by Citi Ventures, Norwest, LiveOak Ventures and other investors; the Austin proptech company also secured $330M in asset-backed debt. Homeward will use the financing to expand its cash-offer and bridge-lending products, improve its AI-powered underwriting platform and make its home-buying and selling services available nationwide. - learn more
    • BAM Ventures participated in OuterSignal’s $22M Series A, co-led by Long Journey Ventures and Abstract Ventures and joined by Top Shelf Ventures, AME Cloud Ventures and other investors. OuterSignal will use the funding primarily to expand its team and advance its customer-intelligence platform, which helps consumer brands personalize marketing using detailed profiles built from their existing commerce and CRM data. - learn more
    • Navitas Capital participated in EliseAI’s $350M funding round, led by Andreessen Horowitz and Bessemer Venture Partners and joined by Ontario Teachers’ Pension Plan and Sapphire Ventures, valuing the company at $4B. EliseAI will use the capital to expand its AI platform for housing and other essential-service industries, building tools that automate leasing, resident support and property operations across more than 6.5M housing units. - learn more
    • Bonfire Ventures co-led Destro AI’s $8M seed round alongside Base10 Partners, with participation from CoFound Partners. The Brooklyn startup will use the funding to expand deployments of its AI platform, which coordinates robots from different manufacturers across warehouse operations, while growing its engineering and research teams. - learn more
    • TenOneTen Ventures and Wedbush Ventures participated in Meadow AI’s $7M seed round, led by Ulu Ventures and joined by York IE, Flying Fish and Leadout Capital. The Seattle startup will use the funding to expand its AI-powered “digital secret shopper,” which monitors retail and restaurant operations in real time, while growing its engineering, product and sales teams. - learn more
    • Fika Ventures participated in Outmarket’s $34.5M Series B, led by SignalFire and joined by Permanent Capital Ventures, TTV Capital and Dash Fund. Raised just four months after its Series A, the funding will help Outmarket accelerate development of its AI platform, which automates insurance brokerage tasks such as policy reviews, coverage analysis, proposals and certificates. - learn more

    LA Exits

    • HMBradley, now operating as MBI, has been acquired by personal finance platform Monarch as the buyer surpasses $100M in annual recurring revenue and 1M members. HMBradley co-founder Zach Bruhnke will lead the newly formed Monarch Labs, where his team will develop additional financial products and services designed to help Monarch expand beyond tracking money into helping consumers manage it. - learn more
    • Vision Films has been acquired by Legacy Distribution, combining the Los Angeles companies’ film, television, documentary and specialty-content libraries into a single global distribution business. The combined company will retain the Vision Films name, with Legacy CEO Dana Webber taking the helm and Vision Films founder Lise Romanoff transitioning into a consulting role. - learn more
    • Creative agency Zambezi received a majority investment from health and wellness-focused private equity firm Manna Tree, with financial terms undisclosed. Zambezi will continue operating independently under its existing leadership while providing branding, media and production services to Manna Tree’s portfolio companies and pursuing new business across the broader consumer market. - learn more
    • Santa Monica-based Advertise Purple was acquired by AI-powered marketing company ONAR for up to $27.8M, marking the buyer’s largest acquisition to date. The affiliate marketing agency, which generated $17.1M in 2025 revenue, will retain its leadership team while adding its Bloom analytics platform and more than 111M performance records to ONAR’s technology portfolio. - learn more
    • EasyLlama was acquired through a majority recapitalization by private investment firm Inverness Graham, with financial terms undisclosed. The compliance software company, which serves more than 5,500 small and midsize businesses, plans to expand its platform, partner network and training content while pursuing growth through strategic acquisitions. - learn more

      Download the dot.LA App

      Rainmaker Just Raised $100M to Solve the Weather

      🔦 Spotlight

      Hey Los Angeles.

      Last year, we introduced you to an El Segundo startup that had raised $25M to make it rain.

      This year, rain is apparently just the beginning.

      Rainmaker raised a $100M Series B to expand its cloud-seeding technology and pursue a much larger ambition: building the scientific and technical infrastructure to understand, influence and eventually mitigate extreme weather.

      In startup parlance, it is a pivot from “make it rain” to “solve the weather.” Subtle.

      The round included NOA VC, DCVC, Lowercarbon Capital, Dream Ventures and LA-based Upfront Ventures.

      When we covered Rainmaker last year, the company was preparing to expand its drone fleet, atmospheric research and commercial partnerships.

      It now says it has generated more than 145M verified gallons of precipitation during a four-month period. During a summer research program near Homer, Alaska, Rainmaker says one operation produced 19M gallons in three hours.

      Those are eye-catching numbers. The company’s ambitions are considerably larger.

      Rainmaker is working to build what it calls a “Weather Prime,” combining atmospheric science, autonomous aircraft, sensors and predictive software into an infrastructure platform capable of responding to water scarcity and extreme weather.

      The idea is to make cloud seeding cheaper, more measurable and easier to deploy at scale. Rainmaker’s drones deliver specialized particles into carefully selected clouds, while radar and software help determine where to operate and measure how much additional rain or snow may have been produced.

      The new funding will help Rainmaker hire more atmospheric scientists, meteorologists, chemists and engineers while expanding its research and data-collection capabilities. The company also plans to move toward increasingly autonomous operations, allowing more missions to be conducted at a lower cost.

      Rainmaker expects its cost per acre-foot of water to fall below alternatives such as desalination and agricultural fallowing in the Colorado River Basin during the upcoming water season. If that projection holds, cloud seeding could begin looking less like an experimental intervention and more like another piece of water infrastructure.

      That “if” is doing some serious atmospheric lifting.

      Cloud seeding has existed for decades, but measuring its precise effects remains scientifically difficult. A successful operation requires the right type of cloud at the right moment, and proving exactly how much precipitation would have fallen without intervention is no simple task.

      Rainmaker’s next challenge, therefore, is not merely to produce more rain. It must make the results measurable, repeatable and credible enough for governments, farmers and communities to trust.

      That responsibility becomes even more important as the company expands its vision beyond water. Rainmaker describes cloud seeding as the first step toward eventually mitigating hail, heat and other weather-related threats.

      It is a grand ambition, even by startup standards. Most founders promise to disrupt an industry. Rainmaker wants to influence the atmosphere.

      The company’s location makes the mission particularly fitting. El Segundo has become a center for startups tackling physical problems with drones, satellites, factories and defense systems. Rainmaker is applying that same aerospace-minded approach to one of the West’s oldest constraints.

      For Los Angeles, this story is about more than another substantial funding round. Rainmaker has progressed from proposing that cloud-seeding technology could be modernized to claiming it has produced rainfall at a meaningful scale.

      Now, with four times the capital it announced last year, the company must prove that those results can become dependable infrastructure.

      California has never been shy about reshaping nature to support its growth. Rainmaker is betting that the next great water project will not be built across the landscape.

      It will fly into the clouds.

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

      🤝 Venture Deals

        LA Companies

        • Hair care brand Arey raised an undisclosed Series A led by Unilever Ventures, with returning investors Greycroft and Female Founders Fund also participating. The company, which develops supplements and topical treatments for graying and aging hair, will use the funding for product development, clinical research, hiring and retail expansion. - learn more
        • Fluxnium raised a $7M seed round led by Congruent Ventures, with participation from Constellation Technology Ventures and Active Impact Investments. The company will use the funding to develop, test and scale its fiber technology for extracting uranium from seawater, aiming to create a secure domestic alternative to conventional uranium mining. - learn more

        LA Venture Funds
        • Alexandria Venture Investments participated in BigHat Biosciences’ $75M Series C, co-led by DFJ Growth and Premji Invest, bringing the AI-driven biotech’s total funding to $223M. BigHat will use the capital to expand its autonomous protein-design platform and advance its AI-designed cancer therapies, including BHB810 and BHB299, toward key clinical milestones. - learn more
        • Alt Capital participated in Trebellar’s $18M Series A, led by Blossom Capital and joined by Haystack, 1Flourish and Bynd Venture Capital. Trebellar will use the funding to expand its engineering and go-to-market teams and enhance its AI platform, which helps enterprises combine fragmented workplace data to make better real estate decisions. - learn more
        • B Capital participated in Precision Neuroscience’s oversubscribed $250M Series D, co-led by Pershing Square, the Ackman Oxman Institute and an undisclosed life sciences fund, bringing the brain-computer interface company’s total funding to $430M. Precision will use the capital to expand clinical trials, advance its Layer 7 brain implant through additional FDA review and build the infrastructure needed for commercialization. - learn more
        • Mantis Venture Capital participated in Pilgrim’s $25M seed round, led by Buckley Ventures, which valued the Redwood City defense-biotech startup at $150M. Pilgrim is developing a portable system that monitors the air for viruses and other biological threats, with additional backing from Anthropic leaders, Coinbase co-founder Fred Ehrsam and other technology investors. - learn more
        • Starshot Capital participated as a returning investor in Mojave Energy Systems’ $19M Series B, led by Fairtree Elevant Ventures with a significant investment from River Bay Investments. The Sunnyvale company will use the funding to expand manufacturing, grow its sales team and develop new products for its energy-efficient commercial heating, cooling and humidity-control platform. - learn more
        • 4th Revolution Capital participated in infiniFi’s $3M-plus funding round, led by Electric Capital and joined by New Form Capital, Generative Ventures, Fasanara Capital and others. The decentralized finance platform will use the capital to launch infiniFi Prime, expand its products through neobanks and consumer finance apps and prepare for its Q4 token generation event. - learn more
        • Riot Ventures participated in American Supercritical’s $8M pre-seed round, led by Silent Ventures and joined by Harpoon, Reveille VC, Hillwood, Mana Ventures, Climate Capital and Alumni Ventures. The Denver startup is developing compact systems that use supercritical carbon dioxide to convert gas-turbine waste heat into additional electricity, potentially helping data centers generate up to 50% more power without using more fuel or water. - learn more
        • M13 led Baselayer’s $35M Series A, with participation from Torch Capital, Picus Ventures, Afore Capital and Socure executive Matt Thompson. The company will use the funding to expand its identity and risk infrastructure beyond businesses to AI agents, helping financial institutions verify who an agent represents, what it is authorized to do and whether it can be trusted. - learn more
        • BAM Ventures participated in Bird&Be’s $13M funding round, which was led by BDC Thrive and BFG Partners and joined by Founder Collective, Rejuvenation Ventures and HSR Ventures. The fertility and wellness brand will use the capital to develop new supplements and at-home diagnostic tests, expand its retail presence and broaden access to evidence-backed reproductive care. - learn more
        • March Capital joined Snorkel AI’s $350M Series E as a new investor, participating in a round co-led by Insight Partners and S32 that valued the company at $3.5B. Snorkel will use the funding to expand its platform for creating the specialized datasets and training environments needed to develop and evaluate advanced AI models and agents. - learn more
        • Clocktower Technology Ventures is among the investors backing Soteris, which has raised more than $8M in seed funding led by Spider Capital. The Y Combinator-backed insurtech company has emerged from stealth with an AI platform that helps property and casualty insurers identify the profitability and expected losses of individual policies, potentially improving margins without changing rates or staffing. - learn more
        • Smash Capital led Firecrawl’s $75M Series B, with participation from Altos Ventures, Nexus Venture Partners, Y Combinator, Freestyle and Offline Ventures. Firecrawl will use the capital to expand Alexandria, its new platform that gives AI agents one place to access the live web, specialized indexes and licensed data while compensating the people and organizations supplying that knowledge. - learn more
        • ND Capital participated in Ramona’s $25M Series A, which was led by ARCH Venture Partners and joined by Stealthpoint, Fall Line Capital, Hamamatsu, Murchison Capital Partners and Overlap Holdings. Ramona will use the funding to expand production and grow its team as it scales a 24-camera microscope that captures entire biological experiments at cellular resolution, generating richer data for drug discovery and AI models. - learn more
        • Chisos Capital participated in Axio BioPharma’s $2.4M pre-seed round alongside Elmstead Partners, the Chemical Angel Network and several angel investors. The Madison-based company will use the funding to deploy its Axio Lattice platform, which connects manufacturing data across pharmaceutical companies and their partners without requiring either side to replace existing systems or relinquish control of its data. - learn more

        LA Exits

        • Zuma has been acquired by real estate technology company Venn for $50M, bringing its AI leasing tools and engineering team into Venn’s platform. The combined company plans to help multifamily operators automate leasing and eventually expand its AI capabilities into collections, renewals and resident support. - learn more
        • GTXN was acquired by digital asset platform Luno for an undisclosed amount, bringing its licensed collection and payout infrastructure into Luno’s operations. GTXN will serve as Luno’s cross-border payments arm, helping enterprise customers move money between developed and emerging markets through a single provider with fewer intermediaries and faster settlement. - learn more
        • Podium Entertainment was acquired by private equity firms Shamrock Capital and Flexpoint Ford for more than $400M, with GoldState Music also taking a minority stake. The audiobook and publishing company, which has built a catalog of roughly 15,000 titles by working with independent authors, will retain its existing management team. - learn more

          Download the dot.LA App

          Impulse Space Just Raised $308M to Build the Roads in Orbit
          Impulse Space

          🔦 Spotlight

          Happy Friday, Los Angeles.

          Space may not have roads, but it still has a transportation problem.

          Rockets have become remarkably good at carrying satellites beyond Earth. Once those satellites reach space, however, getting them from one orbit to another can still be slow, expensive or impossible.

          Redondo Beach-based Impulse Space wants to change that, and investors are giving it considerably more fuel for the journey.

          The company raised a $308M extension to its Series D, bringing the round’s total to $808M. The new financing comes just over three months after Impulse announced the initial $500M raise and pushes its total capital raised above $1.3B.

          Existing investors 137 Ventures, BANNER VC, DFJ Growth, Linse Capital, Lux Capital and Valor Equity Partners participated in the extension. Impulse did not disclose a valuation, but convincing existing backers to commit another $308M so soon after an already substantial round is a strong signal of confidence in both the company and the market it is pursuing.

          Founded by former SpaceX propulsion executive Tom Mueller, Impulse is building vehicles designed to move satellites and payloads after they have already reached space. If rockets are responsible for getting cargo off the ground, Impulse wants to handle what happens after delivery.

          Impulse Space

          Its Mira spacecraft is built for precise maneuvering, payload deployment and proximity operations in orbit. Helios, scheduled for its first flight in 2027, is a high-energy kick stage designed to move payloads from low Earth orbit to destinations such as geostationary orbit in less than a day. The company has also introduced an electric propulsion system called Electra and a rideshare service aimed at making higher-energy orbits more accessible.

          Together, those products represent something larger than a collection of spacecraft. Impulse is attempting to build a transportation network for an economy that increasingly needs one.

          That need is becoming harder to ignore. More satellites are reaching orbit, governments are prioritizing responsive space capabilities and commercial operators want greater flexibility after launch. A satellite that can change position, reach a different orbit or respond quickly to a new mission is significantly more useful than one permanently tied to its original destination.

          The U.S. government is already putting Impulse’s thesis to work. Helios was selected for the U.S. Space Force’s National Security Space Launch Phase 3 Lane 1 program, making it the first upper-stage prime awarded a position in the program. Impulse also received a $28M contract extension to provide two Mira spacecraft for additional Space Systems Command missions.

          The company says its headcount has more than doubled over the past year as it expanded its facilities in Redondo Beach, Mojave, Boulder and Washington, D.C. The new capital will support further hiring, product development and facility growth as Impulse works to serve commercial, civil and defense customers.

          It also recently appointed its first chief financial officer, Adam Townsend, who previously helped guide Vizio through an IPO and its eventual sale to Walmart. The hire is another sign that Impulse is preparing for a more complex chapter, one defined not only by engineering milestones but also by a growing capital base, government contracts and large-scale operations.

          That is where this announcement becomes more interesting than its considerable price tag.

          Impulse has already shown that Mira can operate in space. Now it must prove that it can turn several ambitious vehicles into dependable infrastructure. The difference between a promising spacecraft company and a transportation network is repetition: more missions, more customers and systems that work reliably enough to become part of how the space economy operates.

          An $808M round gives Impulse the resources to pursue that vision. It also raises the expectations attached to it.

          For Southern California, the financing reinforces the region’s role in the new space economy. Los Angeles helped build the original aerospace industry, and a new generation of companies is now developing the vehicles, factories and infrastructure intended to support life beyond the launchpad.

          Impulse Space is tackling what may be the next big bottleneck. Getting to space is only the beginning.

          Someone still has to get you where you are going.

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

          🤝 Venture Deals

            LA Venture Funds

            • Riot Ventures co-led EnduroSat’s $205M funding round alongside Atreides Management, with participation from GV, Founders Fund, Lux Capital, the European Innovation Council and other investors. The Bulgarian space company will use the capital to open a high-volume satellite factory in the U.S., build a major European space and defense hub and scale production of its standardized spacecraft. - learn more
            • Upfront Ventures and M13 participated in Ayble Health’s $16M Series A, led by Neon and joined by Unum Ventures, Cleveland Clinic Ventures, DigiTx and Accomplice. The virtual-care company will use the funding to expand its AI-enabled clinic for chronic digestive and autoimmune conditions across national health plans, major employers and benefits platforms, bringing its total capital raised to more than $27M. - learn more
            • Blue Heron Ventures participated in Voxela’s Series A, led by Delight Ventures and joined by SOMPO Growth Partners, Happiness Capital, Archetype Ventures and ALL STAR SAAS FUND, bringing the eldercare technology company’s total funding to approximately $13.2M. Voxela will use the capital to expand hiring and develop new AI capabilities for its VCare platform, which helps care facilities monitor residents, prevent incidents and automate administrative work such as documentation and reporting. - learn more
            • Clocktower Technology Ventures participated in Mainstay’s more than $18M growth round alongside new investors Parker89, Stackpoint, Alpaca VC and FJ Labs, as well as returning backers Khosla Ventures and Era Ventures. Mainstay also acquired AI-powered listing platform Truelist and will use the funding to bring its real estate data, pricing and automation infrastructure to more brokerages, agents and smaller investors. - learn more
            • Amboy Street Ventures participated in Evvy’s $40M Series B, led by Catalio Capital Management and joined by new and returning investors including Rethink Impact, Muse Capital, Labcorp Venture Fund and General Catalyst. Evvy will use the funding to expand its AI-powered women’s health diagnostics and care platform, beginning with fertility, while growing distribution through physicians and strategic partners. - learn more
            • Second Sight Ventures participated in Fin.com’s $20M seed round, led by Expa and Uber co-founder Garrett Camp, with backing from Coinbase Ventures and other investors. The payments infrastructure startup will use the funding to expand its cross-border network through additional acquisitions and plans to acquire a bank within six months. - learn more
            • Clearlake Capital, Mantis Venture Capital and Sound Ventures participated in Factory’s $200M funding round, which valued the AI software development company at $5B and brought its total funding above $400M. Factory will use the capital to accelerate research, product development and global expansion for its platform, which enables enterprises to build, manage and improve software using autonomous AI agents. - learn more
            • Navitas Capital led Scaffold’s $15M seed round, with participation from D.R. Horton, Pulte Homes, Builders FirstSource and other construction-industry investors. The Austin startup will use the funding to expand its engineering team and broaden its AI-powered platform, which connects homebuilders, contractors and suppliers to automate scheduling, purchase orders and other coordination work. - learn more
            • Halogen Ventures led it’s electric’s oversubscribed bridge round, joined by Wisdom Ventures, Future Communities, E8 Angels and other new and returning investors, bringing the curbside EV-charging startup’s total funding to $15M. The financing will support its rapid expansion, including a New York City contract to install hundreds of locally manufactured chargers across all five boroughs over the next three years. - learn more
            • Matter Venture Partners participated in Delos Data’s more than $100M funding round alongside Matrix, Playground Global, Socratic Partners, Capricorn’s Technology Impact Fund and IAG. The Palo Alto startup will use the capital to expand its engineering teams and accelerate development and sales of its Nonstop AI infrastructure, designed to reduce network bottlenecks and improve the speed and efficiency of AI inference. - learn more
            • Mantis Venture Capital and Gold House participated in A Vinyl Bar in Shibuya’s $5.5M pre-seed round alongside SV Angel, BoxGroup, Quiet Capital and other investors. Founded by Spotify’s former head of innovation, the startup is developing playful music apps that let users remix, manipulate and collaboratively create sounds rather than simply stream or generate songs. - learn more

            LA Exits

            • Headspace has agreed to be acquired by AI healthcare company Sword in a deal expected to close by the beginning of Q4 2026; financial terms were not disclosed. The acquisition will combine Headspace’s mental health brand, global consumer base and network of more than 15,000 providers with Sword’s AI-powered clinical platform to offer more personalized and continuous care. - learn more
            • Nasty Gal was acquired by WSG Brands for an undisclosed amount, adding the women’s fashion label to a portfolio that also includes Von Dutch and Allbirds. WSG plans to expand Nasty Gal internationally and into categories such as footwear, beauty, activewear and accessories while growing its direct-to-consumer, wholesale and licensing businesses. - learn more
            • Converse Health was acquired by healthcare AI company Hello Patient for an undisclosed amount, bringing its back-office automation technology into the buyer’s platform. The combination will allow medical practices to use one system for patient communications and administrative work such as referral processing, chart follow-ups, authorization paperwork and medical records. - learn more

              Download the dot.LA App

              RELATEDEDITOR'S PICKS
              Trending