LA Tech Updates: Spotify Misses Revenue Mark, Snap Releases Diversity Report, TikTok Jabs Facebook

Francesca Billington

Francesca Billington is a freelance reporter. Prior to that, she was a general assignment reporter for dot.LA and has also reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. She graduated from Princeton in 2019 with a degree in anthropology.

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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:

  • Spotify has more listeners, but ad revenue drops
  • 'We Must Do More': Snap Releases Dismal Diversity Report
  • TikTok CEO Promises More Transparency, Jabs Facebook for 'Copycat Product'

    TikTok CEO Promises More Transparency, Jabs Facebook for 'Copycat Product'

    LA Tech Updates: TikTok Says it Will Pay Creators — and Universal Music Group

    TikTok is promising more transparency.

    The Culver City-based social media platform will release its algorithms and content moderation policies, CEO Kevin Mayer wrote in an open letter Wednesday. Owned by China's ByteDance, the company has been facing pressure as speculation grows that its content is being shared with Beijing.

    "We accept this and embrace the challenge of giving peace of mind through greater transparency and accountability," Mayer wrote. "We believe it is essential to show users, advertisers, creators, and regulators that we are responsible and committed members of the American community that follows US laws."

    Earlier this month, the Trump administration said it was "looking at" banning the app over those concerns. Then last week, the House prohibited U.S. federal employees from downloading the app on government-issued devices.

    It's also notable that his letter was published the same day Facebook's Mark Zuckerberg as well as the CEOs of Twitter, Google and Apple testified before Congress on antitrust law. In the letter, Mayer takes a swipe at Zuckerberg for this upcoming Reels product.

    What you need to know:

    • Calling it the Transparency and Accountability Center, TikTok will let experts view the company's data practices and algorithms.
    • Investors of parent company ByteDance are now valuing the app at $50 billion — surpassing the projected 2020 revenue by 50 times. Some are pushing for ownership over the platform.
    • Mayer took jabs at the other tech giants in the letter:
      • "This puts us a step ahead of the industry, and we encourage others to follow suit."
      • "At TikTok we welcome competition. We think fair competition makes all of us better. To those who wish to launch competitive products, we say bring it on."
      • Then he hit Facebook's forthcoming Reels feature, calling it a "copycat product."

    'We Must Do More': Snap Releases Dismal Diversity Report

    Snap's Accelerator Program Expands with 'Yellow Collabs'

    While much of the tech world was fixated on a blockbuster congressional hearing of four executives from top tech companies, Snap Inc. quietly released its first report on diversity since the company was founded in 2011 and the numbers were dismal.

    Evan Spiegel, CEO of Snap, which has faced allegations of a racist and sexist workplace, as recently as last month told employees he wouldn't release the numbers publicly. The company has good reason to try to bury the news.

    Blacks only represent 4.1% of Snap's U.S. workforce while Hispanic/Latinx makeup 6.8%, far below their numbers in the general population. At the top, 2.6% of leadership roles are held by Blacks while seven percent are held by Hispanic/Latinx. Women make up 32.9% of Snap's global workforce but only 16.1% of tech teams and just 6.7% of tech teams' leadership.

    "To date, our DEI (Diversity, Equity & Inclusion) outcomes simply have not been good enough," the company said in the report. "We must do more." Snap has set a goal of doubling the number of women in tech roles by 2023 and doubling the number of underrepresented minorities at the company by 2025.

    While its diversity numbers are low, Snap is not much worse than other tech giants, though most of those companies have released their numbers for years.

    Last month, Snap was forced to remove a Juneteenth filter that prompted users to smile in order to break a series of chains, and that was not the first time the company was criticized for an offensive filter.

    "We deeply apologize for the offensive Juneteenth Lens," the company said in a tweet.

    Snap outlined a number of steps to improve its numbers, including changes to recruiting, setting representation goals for underrepresented groups, and instituting a $70,000 minimum living wage for employees working at its Santa Monica headquarters.

    Spotify Has More Listeners, but Ad Revenue Drops

    Spotify Earnings: The Music Streaming War Is Heating Upfarm5.staticflickr.com

    Spotify's second quarter earnings, released today, show listening and podcast streaming up even as revenue missed the mark with the pandemic hurting ad sales.

    The Swedish music streaming service acknowledged slower business in April and May across emerging regions. Still, Spotify said its strength in North America offsets the setback, noting that it turned a corner in June.

    "We believe the improved momentum we saw in the back half of the quarter has continued into Q3 and we expect to hit our full year targets," the company told shareholders.

    What you need to know:

    • Ad revenue, which makes up less than 10% of total revenue, is down 21% from last year, a nod to dropping sales brought on by the pandemic.
    • The average revenue per Spotify Premium user (ARPU) is also down 9% as a fewer percentage of users pay the standard $9.99/month rate. More are opting in for family and student plans. Users in some countries also pay a lower price for subscriptions.
    • 13 million new monthly active members brings Spotify's total to an all-time high of 299 million. Plus, 8 million new subscribers brings the total of ad-free premium customers to 138 million.
    • Overall listening times have returned to pre-pandemic levels in all regions except Latin America.
    • More users are listening on at-home smart speakers and smart TVs.
    • In an effort to diversify Spotify content and move away from music, podcast options are expanding — including exclusive deals with big names like Joe Rogan, Kim Kardashian, DC Franchise, the Obamas and TikTok star Addison Rae.
    • Since the start of 2019, overall podcast listening has doubled since. One fifth of monthly active members are tuning in.

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    OpenAI's $6.6B Power Play: The Future of AI Just Got a Massive Boost 💰🚀
    Image Source: Open AI - Sam Altman

    🔦 Spotlight

    OpenAI is making some exciting moves! The company just completed a massive $6.6 billion funding round, pushing its valuation to an impressive $157 billion. Thrive Capital led the charge, with big names like Andreessen Horowitz and Founders Fund also joining in. This investment will allow OpenAI to further scale its operations and advance AI technologies like GPT-4 across various sectors such as healthcare, entertainment, and business.

    But that’s not the only exciting news. OpenAI has also secured an additional$1 billion credit facility, giving the company even more financial flexibility to execute its ambitious growth plans. This safety net ensures that OpenAI has the resources to scale safely and effectively while continuing to lead the AI space.

    AI is becoming integral to industries worldwide, and OpenAI’s products—like ChatGPT—are seeing rapid adoption. From education to enterprise solutions, the company is driving significant advancements in how AI is integrated into everyday life.

    Following Microsoft’s $10 billion investment earlier this year, this latest round underscores the market’s confidence in OpenAI’s potential. With its strong focus on responsible AI deployment and ethical scaling, the company is set to shape the future of AI in a way that benefits a broad range of industries and addresses global challenges.

    As AI evolves, OpenAI remains dedicated to pushing boundaries while ensuring that its innovations prioritize safety, scalability, and social impact. Keep an eye on this space—big things are on the horizon!


    🤝 Venture Deals

    LA Companies

    • Impulse Space, a Redondo Beach-based company specializing in in-space transportation services, raised $150M in Series B funding led by Founders Fund, bringing its total funding to $225M, to expand its team and advance production of its Helios and Mira vehicles. - learn more
    • Nusano has secured over $115M in Series C financing, led by The Wasatch Group, to accelerate the commercialization of its radioisotope production technology, aimed at improving cancer treatment and medical diagnostics. - learn more
    • Future Trash, a multidisciplinary creative studio, has raised a $5M Seed funding round from TIRTA and General Catalyst to develop original intellectual property (IP) within Fortnite, focusing on building unique in-game content and experiences. - learn more
    • XType, the leading software company for multi-instance management on the ServiceNow platform, has raised a $21M Series A funding round led by Norwest Venture Partners to accelerate innovation and expand its platform capabilities on the ServiceNow platform. - learn more
    • 3Laws Robotics, a robotics company focused on building AI-powered platforms to enhance the safety, security, and operational efficiency of robotic systems, has raised a $4.1M Seed funding round led by TenOneTen Ventures. - learn more

    LA Venture Funds
    • Watertower Ventures participated in the $8M Series A funding round for DocJuris, a leader in AI-based contract review and negotiation software that automates key tasks to streamline the contract process for enterprise teams and general counsels. - learn more
    • Progression Fund participated in a $3.7M Seed funding round for Permanent, a company focused on advancing sustainable agriculture by developing solutions that improve soil health and productivity. - learn more


    LA Exits

    • Loom, an educational community platform that empowers women by providing comprehensive resources on reproductive health, sexual wellness, and parenting education, has been acquired by women's health brand Perelel, marking a significant expansion in the women's health and wellness sector. - learn more

    Download the dot.LA App

    ⚠️📲🌩️ Your Digital Lifeline: Top Tech Apps for Natural Disasters

    Living in LA means being ready for anything—quakes, wildfires, crazy weather, you name it. Luckily, there’s a suite of tech apps designed to keep you informed, connected, and safe when disaster strikes. From real-time alerts to staying in touch with loved ones, these apps have you covered. Here’s the ultimate list to help you handle whatever chaos comes your way in LA County.

    Get Real-Time Alerts

    Image Source: MyRadar

    FEMA App
    • What it does: Provides real-time alerts from the National Weather Service, along with shelter and disaster recovery info.
    • Key features: Weather alerts, shelter locator, and preparedness resources.
    • Available on:iOS | Android
    MyRadar Weather Radar
    • What it does: Offers real-time, animated radar for tracking severe weather and storms.
    • Key features: Live radar, storm tracking, and severe weather alerts.
    • Available on:iOS | Android
    Clime: NOAA Weather Radar
    • What it does: Delivers real-time radar and weather updates, with wildfire and flood tracking.
    • Key features: Customizable weather alerts, disaster tracking.
    • Available on:iOS | Android
    American Red Cross Emergency App
    • What it does: Provides real-time alerts for over 35 types of emergencies, plus disaster preparedness tips.
    • Key features: Alerts, safety check-ins, and emergency tips.
    • Available on:iOS | Android
    My Earthquake Alerts & Feed
    • What it does: Sends real-time earthquake alerts, with maps and detailed data.
    • Key features: Earthquake alerts, customizable notifications, detailed maps.
    • Available on:iOS | Android
    Citizen
    • What it does: Delivers real-time alerts for emergencies, including natural disasters and crime near your location.
    • Key features: Safety alerts, live incident reports, and community updates.
    • Available on:iOS | Android

    Stay Connected with Loved Ones

    Image Source: Life360

    While social media apps like Facebook and X provide real-time updates, additional tools can help with communication and location sharing, ensuring you stay connected and safe.

    Nextdoor
    • What it does: Connects neighbors with real-time local updates on emergencies and community events.
    • Key features: Neighborhood alerts, local info, resource sharing.
    • Available on:iOS | Android
    WhatsApp
    • What it does: Enables secure messaging, location sharing, and video/voice calls with family and friends.
    • Key features: End-to-end encryption, location sharing, voice/video calls.
    • Available on:iOS | Android
    Zello Walkie Talkie
    • What it does: Turns your phone into a push-to-talk walkie-talkie for communication in low-signal areas.
    • Key features: Push-to-talk, works over Wi-Fi/data, group communication.
    • Available on:iOS | Android
    Glympse – Share Your Location
    • What it does: Lets users share real-time locations with family and friends without needing an account.
    • Key features: Location sharing, ETA updates, private tracking.
    • Available on:iOS | Android
    Life360
    • What it does: Tracks real-time location of family members and provides emergency SOS alerts.
    • Key features: Family location tracking, emergency alerts, crash detection.
    • Available on:iOS | Android

    Stay Mobile

    Image Source: PlugShare

    For navigating road closures and traffic during disasters, Google Maps and Waze are essential tools that offer real-time updates and alternate routes. Along with these go-to options, there are additional apps that can help you stay mobile when it matters most.

    GasBuddy
    • What it does: Locates nearby gas stations and provides real-time updates on fuel availability and prices.
    • Key features: Gas station locator, fuel prices, availability checks.
    • Available on:iOS | Android
    PlugShare
    • What it does: Provides a comprehensive map of public EV charging stations worldwide. It offers real-time availability, pricing, user reviews, and photos of charging stations, helping you find the best nearby options.
    • Key features: Real-time station availability, detailed station info, user reviews, and trip planning.
    • Available on:iOS | Android

    Traditional Preparedness Tips

    In addition to these tech apps, it’s crucial to prepare for natural disasters with traditional methods:

    • Build a disaster kit: Gather essential supplies like food, water, first aid supplies, and a flashlight.
    • Develop an evacuation plan: Determine where you will go and how you will get there in case of an emergency.
    • Keep emergency contacts handy: Make a list of important phone numbers.

    Maximize Battery Life and Data During Emergencies

    During disasters, power outages and increased network traffic can affect your device's battery life and data usage. Consider the following:

    • Keep your devices charged: Use portable or solar-powered chargers to extend battery life.
    • Conserve data: Use Wi-Fi hotspots when available to avoid excessive data charges.

    These apps are your go-to tools for staying informed, connected, and ready for anything in Los Angeles County. Whether you need real-time alerts, navigation assistance, or ways to keep in touch with loved ones, having these apps on hand can make all the difference when it matters most.

    Download the dot.LA App

    Luxurious Second Home Ownership without the Headache: How Pacaso is Changing the Landscape of Real Estate

    🔦 Spotlight

    Pacaso addresses the pain points of second home ownership, offering a luxurious, flexible, and financially sound alternative to traditional second homes and ultra-luxury hotels. Co-founded in 2020 by entrepreneur Austin Allison and former Zillow executive and prominent LA tech figure Spencer Rascoff, Pacaso, an unicorn startup, has redefined vacation home ownership with its unique co-ownership model. Rascoff's contributions to the LA tech scene extend beyond real estate; he also founded 75 & Sunny, an LA-based startup studio and venture fund, and co-founded dot.LA, an LA tech news and events company.

    LA residents adore Pacaso for its lush vacation destinations that also make for smart investments. Pacaso offers everything from serene weekend getaways in Aspen to sophisticated escapes in Paris. Each residence, valued between $200k to over $2M for 1/8th, boasts meticulous design, high-end furnishings, and premium amenities. Unlike traditional second home ownership, which involves high costs, maintenance, and underutilization, or ultra-luxury hotels, which lack the personal touch and investment potential, Pacaso's co-ownership model offers a superior solution. Co-owners enjoy the benefits of a high-end vacation home without the full financial burden and hassle of sole ownership, making it a smarter and more flexible choice for discerning buyers.


    Image Source: Pacaso

    Cabo, Mexico

    $822,000 (1/8th ownership)

    5 bds. l 5 ba. l 4,969 sq ft

    View Here


    Image Source: Pacaso

    Paris, France

    $600,000 (1/8th ownership)

    2 bds. l 2.5 ba. l 1,410 sq ft

    View Here


    Image Source: Pacaso

    Malibu, California

    $750,000 (1/8th ownership)

    3 bds. l 3 ba. l 1,880 sq ft

    View Here


    Image Source: Pacaso

    Park City, Utah

    $755,000 (1/8th ownership)

    4 bds. l 4.5 ba. l 2,584 sq ft

    View Here

    Head to Pacaso to learn more about its innovative co-ownership model that addresses the common challenges of second home ownership!


    🤝 Venture Deals

    LA Companies

    • Oak Essentials, the natural skincare brand founded by Jenni Kayne, has raised an undisclosed amount in Series A Funding from Silas Capital and Unilever Ventures. This investment will drive the brand’s expansion, focusing on product development, boosting marketing efforts, and expanding distribution channels. - learn more
    • Playhouse MD, an upcoming children’s healthcare platform that incorporates play to enhance health outcomes, has raised $4M in funding, according to a recent SEC filing. - learn more
    • FluidLogic, a high-performance hydration system provider, raised $15M in a Series A Extension led by Solyco Capital to support product development and innovation for adventure sports and outdoor endurance categories, with consumer products launching in early 2025. - learn more
    • Reflect Orbital, which uses in-space reflectors to direct sunlight to solar farms and large-scale lighting applications after sunset, has raised $6.5M in seed funding led by Sequoia Capital. The funding will help the company develop production vehicles and expand its team as it builds space-based energy infrastructure. - learn more

    LA Venture Funds
    • Smash Capital led a €20M Series B round into Vilnius-based Ovoko, an e-commerce platform for buying and selling used car parts across Europe, marking Smash Capital's first investment in Lithuania. The funds will support Ovoko's product development, market expansion, and team growth as it aims to dominate the European market for second-hand automotive components. - learn more
    • M13 led a $9M Series A Funding Round for Zenlytic, the world’s first self-serve business intelligence platform. - learn more



    LA Exits

    • Continuum Global Solutions’ healthcare vertical has been acquired by Everise, a customer service management company, enhancing Everise’s capabilities in pharmacy benefit management and expanding its growth prospects in the healthcare sector. - learn more
    • Radical Semiconductor, a company specializing in processing-in-memory technology, has been acquired by BTQ Technologies, a leader in post-quantum cryptography. This acquisition strengthens BTQ’s ability to secure data in the post-quantum era by integrating Radical Semiconductor's advanced technology portfolio. - learn more

    Download the dot.LA App

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