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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    francesca@dot.la
    LA Tech Week 2024: Tuesday’s Event Lineup
    tech-week

    Here’s the Tuesday, October 15 lineup for LA Tech Week 2024, organized by location so you can easily explore events that fit your goals and schedule. Dive in and see what’s happening near you!


    BEL AIR

    5:00 PM

    Andrew Yeung, Blindspot

    Elevate Members

    8:00 PM

    Andrew Yeung, Blindspot

    BEVERLY HILLS

    8:00 AM

    Scrappy

    9:00 AM

    • Operators Meet Up (Invite Only)

    Halogen Ventures

    5:00 PM

    Plug and Play, 2045, Studio by Tishman Speyer, Breaking Bread

    6:00 PM

    VCPE GROUPS, ENTREPRENEUR.VC

    Stellenium, MyBrand Global, Project Sanctuary

    Ayana foundation, Cherub

    Matey, Inc.

    Mission Matters, Destination Luxury

    BRENTWOOD

    9:00 AM

    75 & Sunny, Fika, Navitas

    3:00 PM

    Stanford Angels & Entrepreneurs of Socal

    CARSON

    12:00 PM

    J.P. Morgan, Cooley, CAA, Porsche

    CENTURY CITY

    12:00 PM

    Entrepreneur Ventures, VCPE Groups, CAA (Creative Artists Agency)

    CULVER CITY

    9:00 AM

    Intersections LA

    3:00 PM

    AWS for Startups

    5:30 PM

    Techstars, Saywise

    EL SEGUNDO

    11:00 AM

    Calibrate Ventures, Advaita Capital, ACME VC, Techstars

    4:00 PM

    • Blowouts for Builders: Honoring Women in Hard Tech (Invite Only)

    First Resonance

    CX2 Inc.

    5:00 PM

    • American Dynamism (Invite Only)

    HOLLYWOOD

    10:00 AM

    Community Pros of Los Angeles

    1:00 PM

    Communia

    LONG BEACH

    2:00 PM

    Our Generation Cares

    6:00 PM

    • AI for Technology Enabled Autism Providers Happy Hour (Invite Only)

    SpectrumAi, LEARN Behavioral

    MALIBU

    10:00 AM

    Goldhirsh Foundation, LA2050, Creative Visions

    MARINA DEL REY

    11:00 AM

    DMK Engineering, Inc., Digital Law Group, PLLC

    3:00 PM

    USC, Information Sciences Institute (ISI)

    PLAYA DEL REY

    8:00 AM

    AI LA

    PLAYA VISTA

    8:30 AM

    • AI in Action: Redefining the Digital Content Lifecycle in Media + Entertainment :See Details Here

    Sprockit, Verizon Innovation Lab

    Google

    6:30 PM

    • Trends in Building and Investing: Data, AI and the Future Internet Economy :See Details Here

    Everi AI, Five Two Five VC

    SANTA MONICA

    7:00 AM

    Founder Common, Founders Run Club

    8:00 AM

    Just Go Grind

    8:30 AM

    • Brewing Connections: Coffee + Alfajores Networking Breakfast for Founders at Seed Stage :See Details Here

    Braintly, Alt-Black

    Upfront Ventures, Brex

    9:00 AM

    Mercato Partners

    Dialpad

    Garden Labs

    Deel, Alumni Ventures, TeamTailor

    M13

    LendTech, Two to Twenty, The Artemis Fund, Orrick

    9:30 AM

    Mucker Capital

    Qapita, Remofirst, Commenda

    10:00 AM

    a16z, Fenwick

    The FutureList, Global Venture Network

    USC Marshall Grief Center for Entrepreneurial Studies

    Cherry Hill Advisory

    11:00 AM

    Liz Shows

    • Business Value - Measure, Create, & Retain (Invite Only)

    Objective IBV

    • Transactional Trends & FinTech Transformation: Overcoming Payment Threats in a Post-COVID Marketplace (Invite Only)

    Chargebacks911

    Next Stage Trajectory

    12:00 PM

    SSM

    • Scaling Hardware: From Concept to Market - A Lunch Panel for Industry Leaders :See Details Here

    SEACOMP, Conduit Venture Labs, AJProTech

    FusionAuth, Global Venture Network

    1:00 PM

    Kiva AI

    Cherry Hill Advisory

    2:00 PM

    Morrow, Global Venture Network

    Le Club, Blueprints AI

    Spartacus.app

    2:30 PM

    • From London to #LATechWeek: What makes a world-class innovation hub with Snap, Universal Music, BAM Ventures, and OnePlan :See Details Here

    London & Partners, RSM

    3:00 PM

    SEACOMP, Conduit Venture Labs, AJProTech

    • Venture Financing and Alternative Forms of Financing: What Startups Need to Know :See Details Here

    SSM Law

    Startup Village, Sigma Eta Pi, UCLA

    Venturous Counsel

    3:30 PM

    J.P. Morgan

    Two Bear Capital, Binarly, CIQ

    HereWefranch.com, Early Adopters Community

    • LinkedIn Marketing Exec Roundtable: Insights and Strategies for Engaging SaaS Buyers :See Details Here

    LinkedIn

    4:00 PM

    NachoNacho, Kalungi, GLASS

    • Beyond the AI Buzz - Crafting Equitable Workplaces in the Digital Age :See Details Here

    Margins, Open Venture Capital

    • Tech Trends Deep Dive: Innovation, Culture and Trust (Invite Only)

    Edelman

    • What Founders Need to Know About 2D Barcodes and the Future of Transparency :See Details Here

    GS1US, Global Venture Network

    Bump, Capitalize VC, H/L Ventures, Trapital Ventures, Select Management Group, Symphonic Capital, Popstar Ventures

    4:30 PM

    Expert DOJO

    5:00 PM

    Nuleep Inc., Asians in Energy City of Irvine

    OpenSphere.ai

    • Golden Hour with Gold House (Invite Only)

    Gold House, Microsoft, Silicon Valley Bank

    Golfjoy

    SimpleClosure, Cooley, Cambrian Ventures

    5:30 PM

    Lenny's Community

    OCV Partners, Hyperlink Ventures, Mucker Capital, HSBC

    Plantologist

    MaC Venture Capital, Generation Space, Fenwick

    6:00 PM

    Stripe

    Entre, WeWork, Fidelity

    Republic

    Stubbs Alderton, Markiles Preccelerator

    Clay

    Alt-Black

    • GenAI for the Entertainment Industry Dinner (Invite Only)

    A16z

    • SVB at LA Tech Week 2024 (Invite Only)

    Silicon Valley Bank

    MLOps Community, Databricks

    Pragma, AWS, Hathora, Mod.io, Unity

    ReMatter, Zuma.AI

    Tech Pitch Roast Comedy LLC

    Draper University

    Crosscut Ventures, Wilson Sonsini, Juniper Square

    Leave a Mark

    No Pressure Networking, All in All

    6:30 PM

    No Pressure Networking, All in All

    Olympian Motors, Inc

    ElevenLabs

    7:00 PM

    How&How, Cashapp, FNDR, Patagonia

    Pearpop

    Camino5

    Callista Media, Viecolo

    AI Wave

    7:30 PM

    Los Angeles Fun Events

    SUNSET

    5:30 PM

    D-Line Summit (A Deep Tech Summit)

    • TORRANCE

    5:30 PM

    • Grow Your Legal Practice With AI Personas: A Personal AI Hands-On Workshop :See Details Here

    Personal AI, The Simon Law Group Justice Team

    USC

    5:30 PM

    Untapped Ventures, USC School of Advanced Computing, AI LA, Embark Ventures

    VENICE

    8:00 AM

    Science

    J.P. Morgan Startup Banking

    8:30 AM

    Richie Knows, NAMI Westside Los Angeles

    9:00 AM

    Perkins Coie

    9:30 AM

    Riot Ventures, Space VC, Stifel Bank

    11:00 AM

    • The Art of Building Buzz and Community on Social Media with 3 Top Brands :See Details Here

    BrandBastion

    12:00 PM

    J.P. Morgan

    4:30 PM

    Harbor

    5:00 PM

    J.P. Morgan, Intuit Ventures, TOOLBX

    • Accelerating Innovation: The Role of Venture Studios and Accelerators in the LA Startup Ecosystem :See Details Here

    Reitler

    5:30 PM

    Ellevoy

    6:00 PM

    • Scaling Success: Tech, Marketing, & Leadership Synergy Happy Hour :See Details Here

    1Above Tech, Venture Ahead

    Fenwick, Toku

    7:00 PM

    NGL

    8:00 PM

    Dropbox, 99VC

    WEST HOLLYWOOD

    10:00 AM

    RJR Partners, Talk Shop Media

    12:00 PM

    AWSM SCTY, Grid110

    7:00 PM

    Hyphah

    WESTSIDE

    7:00 PM

    AltiamCX, Ruckus

    WESTWOOD

    2:00 PM

    IFC Global, APSDG, UCLA School of Engineering

    TCA Los Angeles, UCLA Anderson

    4:00 PM

    WeAreLATech.com, LiveBash.com

    WINDSOR HILLS

    8:00 AM

    Slauson& Co

    For updates or more event information, visit the official Tech Week calendar.

    Enjoy LA Tech Week 2024!

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    LA Tech Week 2024: Monday’s Event Lineup
    tech-week

    LA Tech Week 2024 kicks off on Monday, October 14, with a packed schedule of events spread across Los Angeles. This opening day offers founders, investors, creatives, and tech enthusiasts endless opportunities to connect, learn, and collaborate. From early morning fitness sessions to afternoon workshops and evening socials, Monday’s diverse programming sets the stage for an impactful week. Below is the schedule organized by location, so you can easily find the events that match your goals and availability.

    BEVERLY HILLS

    7:00 AM

    Andrew Yeung, Blindspot

    8:00 AM

    Scrappy

    9:00 AM

    TechWalk, Qapita

    12:00 PM

    VCPE GROUPS, Entrepreneur.VC

    2:00 PM

    • Future of Farming: AI and Indigenous Collaboration for a Sustainable Food System : See Details Here

    Celebration Nation Inc

    7:00 PM

    LightDAO, Mission Matters

    CENTURY CITY

    6:00 PM

    • KOSME-LAVA Demo Day (Invite Only)

    Los Angeles Venture Association

    CULVER CITY

    9:00 AM

    Amazon Web Services (AWS)

    Intersections LA

    1:00 PM

    • Networking for Underrepresented Founders - Optimize your networking savviness, and have fun along the way : See Details Here

    AWS Startups

    2:30 PM

    AWS

    3:00 PM

    Family Offices Investors Summit, Sandbox, Soulbound, KIKI, Babylon Voice, CryptoHQ Fund

    DTLA

    7:00 AM

    • Tech Runs (Invite Only)

    Crosscourt

    EL SEGUNDO

    6:00 PM

    Stonegardens Advisory, Demand Signal Ventures

    HOLLYWOOD

    2:00 PM

    • Brand Positioning + Content Strategy Workshop (Invite Only)

    Alpha Wolves Media

    6:00 PM

    LaFamilia Foundation (VCFamilia), Pivotal Ventures

    INGLEWOOD

    6:30 PM

    • UCLA Anderson Elevating Voices: A Pitch Competition & Networking Opportunity :See Details Here

    Westwood

    LONG BEACH

    11:30 AM

    Starburst Aerospace, Ampaire, Auriga Space, Long Beach Accelerator, Rebel Space, Sunset Ventures, Emerging LA

    MALIBU

    5:00 PM

    Sunstone, Pepperdine University

    6:00 PM

    Wilshire Lane Capital

    MAR VISTA

    3:30 PM

    Uthana

    MARINA DEL REY

    3:00 PM

    USC, Information Sciences Institute

    MID CITY

    10:00 AM

    The Growth Club

    PASADENA

    1:00 PM

    Emerging LA, Sunset Ventures

    5:00 PM

    AI LA

    PLAYA DEL REY

    8:00 AM

    AI LA

    SANTA MONICA

    7:00 AM

    PitchandRunLA, Global Venture Network

    8:00 AM

    Fortify Ventures

    8:30 AM

    Ganas Ventures

    9:00 AM

    Tech Breakfast Club

    A16z

    10:00 AM

    Clutch Talent

    • Santa Monica Innovation Hub: Technology Street Fair on Ocean Avenue :See Details Here

    City of Santa Monica, StartupStarter, Inc., Downtown Santa Monica, Inc. (DTSM)

    • Sip & Scale (Invite Only)

    AMP Beauty

    10:30 AM

    Socialtrait Inc

    11:00 AM

    Mucker Capital, LeadrPro, JP Morgan, K&L Gates

    12:00 PM

    Global Venture Network, GS1US, The FutureList, FusionAuth

    1:00 PM

    Cherry Hill Advisory, Crescent

    1:30 PM

    Charlie Financial, Aprime Technology

    4:00 PM

    Nathan Family Office

    Artium AI, Freeplay, Silicon Valley Bank

    Sidebar Summit, Redwood Collective

    4:30 PM

    HIRECLOUT

    5:00 PM

    Los Angeles Fun Events

    Orbis86

    6:00 PM

    ImaginingForward

    PowerYou AI

    Musa Capital

    Hustle Fund

    VCPE Groups, Entrepreneur Ventures

    Hive

    A16z

    Tech Pitch Roast Comedy LLC

    Human To Human

    7:00 PM

    Verve, M13, Stifel, WSGR

    Frances Mendez, Ryan Edwards

    VENICE

    7:00 AM

    Bankless Ventures

    Powerful Stuff, Drybaby

    8:00 AM

    J.P. Morgan Startup Banking Team - LA

    9:00 AM

    Google

    10:15 AM

    Open Venture Capital, Empowered Yoga Venice, Oya Femtech Apparel, Wellness Growth Ventures

    12:00 PM

    J.P. Morgan Innovation Economy Team - LA

    Crypto Mondays, Continuum, Female Funders Club

    4:00 PM

    J.P. Morgan, WICIF, MCJ

    6:00 PM

    Product Manager Association of Los Angeles

    6:30 PM

    HITMKR Inc., The Bushido Group, Mission Matters

    VIRTUAL

    8:30 AM

    Clutch Talent

    WESTLAKE VILLAGE

    11:00 AM

    Hub 101, Steven Dorfman Center for Innovation & Entrepreneurship, California Lutheran University

    WESTSIDE

    3:00 PM

    MaC Venture Capital

    • Speaker Panel: Leveling the playing field - Removing the barriers to entry for developers :See Details Here

    Elemental Computing Inc.

    Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit theofficial Tech Week calendar. Enjoy the start of LA Tech Week 2024!


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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

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