🔦 Spotlight
Ever suspected your go-to black hole of time, I mean social media app, might have a secret plan to keep you hooked? Well, a judge in Los Angeles seems to think so! 📱👀⚖️
A Los Angeles judge has rejected the dismissal of significant lawsuits against Meta, TikTok, Snap, and Google. The lawsuits claim that these platforms are deliberately designed to addict and exacerbate mental health disorders in teenagers, potentially leading to multibillion-dollar liabilities. The judge ruled that the companies cannot use Section 230, a legal shield often employed by Big Tech, to evade some claims. The decision is based on the assertion that it is the design features of the platforms, not the specific content, that cause harm to users.
The lawsuits, brought forth by numerous government officials and parents of minors, argue that social media platforms function as defective products, contributing to issues like eating disorders, anxiety, and even suicide among young users. The focus on design elements aims to bypass the legal protection historically granted by Section 230, which shields tech companies from liability as third-party publishers. The judge's decision also allows allegations that Meta may have concealed internal research on the negative impacts of Instagram on minors' mental health to proceed. This includes data suggesting that young users spending extended time on the platform experience heightened anxiety and depression.
So what does this all mean…
In summary, this ruling could mark a significant turning point in how tech companies are held accountable for the potential negative impacts of their platforms. It may lead to increased scrutiny, regulatory changes, and shifts in industry practices to prioritize user well-being.🛀🤳🏛️
🎉 Don’t forget about our referral contest this month! 🎉
Competition Status: Number of referrals to beat is 3 with just over a week remaining!
Gif by trt_network on Giphy
The contest is simple: whoever refers the most friends to dot.LA using our referral program by October 31st will get a coffee and conversation with Zillow, Pacaso, and dot.LA co-founder Spencer Rascoff, where you can pitch him, get business advice, or just shoot the breeze. This is a great opportunity for any current or future entrepreneur, so good luck referring! ☕️☕️☕️
P.S. If you’re not based in LA, you can hop on a Zoom instead 💻
🤝 Venture Deals
LA Startups
- Arctop, a developer of cognition software, raised a $10M Series A co-led by Fifth Growth Fund and Supermoon Capital. - learn more
- Jam & Tea Studios, a startup building a remote-first multi-player game studio, raised a $3.2M Seed Round led by London Venture Partners, with participation from Sisu Game Ventures and 1Up Ventures. - learn more
- Salted, a developer of quick-serve restaurant brands, raised a $14M Series B led by Creadev and participation from Proof Ventures and B. Riley Financial. - learn more
- K2 Space, a spacecraft startup, raised a $7M Funding Round from Alpine Space Ventures. - learn more
LA Funds
- MTech Capital participated in a $17M Series B extension for Matic, a startup that operates an insurance agency and marketplace. -learn more
- Clocktower Technology Ventures participated in a $3.7M Seed Round for QuoteMachine, a startup whose software enables retailers to provide customized quoting, ordering, invoicing, and payment services. -learn more
- TenOneTen Ventures participated in a $9.75M Series A for Urban Sky, a startup that provides Earth imaging services using reusable stratospheric balloons. -learn more
LA Exits
- Moment, a livestream platform for events and ticketed experiences, was acquired by Patreon, which connects creators with paying fans. -learn more
Stifel Venture Banking | Where Innovation Grows
Stifel’s Venture Bankers are here to support the innovation economy. From founder dinners to industry-focused events, our LA-based team enjoys bringing people together to build lasting relationships and further strengthen the community. We focus on both VC firms and VC-backed companies from inception to exit across all sectors, including Consumer, Fintech, Enterprise Software, Frontier Tech, Health Tech, and Climate Tech. We aim to provide high-touch, white-glove service to our clients while offering attractive interest rates on deposits. Debt financing is also a critical component, and we are active lenders in the space for both venture debt, lines of credit, and capital call lines.
Al Guerrero, Managing Director, leads Stifel Venture Banking in Los Angeles. Greg Singer and Sam Wogan work with Al as Relationship Managers. Hunter Briggs handles Treasury Management for clients, and Charlie Smith serves as a Fund Banker for venture and private equity firms.
Stifel Venture Banking launched in 2018 and expanded in Los Angeles in March of this year. We are part of Stifel, a global wealth management and investment banking company founded in 1890. Entrepreneurial culture is at the core of our Firm – with over 30 accretive acquisitions in the past 20 years. The strength and diversity of Stifel’s business gives our venture banking clients’ professional guidance on managing their personal finances and planning for the future. As a founders’ business grows, our Investment Banking team can provide guidance on navigating public markets, accessing debt and equity capital markets, and more.
Learn more about Stifel Venture Banking here 😎
✨Featured Event (11/9)✨
RECURRING REVENUE CONFERENCE on November 9th in Culver City
Southern California's premier SaaS and Subscription conference, this one-day event draws 600+ top founders, executives, investors, and Cloud experts. Experience a dynamic program with 20+ sessions, including leading industry speakers, fireside chats, breakout sessions, and roundtable discussions. This year's insights span AI, metrics that matter, scaling strategies, making a pivot, the changing role of the CFO, what investors are looking for, and more. Keynotes include ChowNow and HackerOne CEOs. Attendees will enjoy plenty of networking time during breakfast, lunch, coffee cart breaks, and cocktails on the patio. Join us on November 9th at the Culver City Hilton to learn from industry leaders.
Learn more and register using DOTLA229 for a discounted ticket rate of $229 (regularly $399): bit.ly/3EitWB5
Early-stage founders get a discounted ticket rate ($59). Apply here today!
Want your event featured? Shoot us an email!
📅 LA Tech Calendar
Tuesday, October 24th
- AI and the Creator Economy - Join AI LA in partnership with FYI and Underscore Talent Tuesday evening in Hollywood, at an event centered around how AI is reshaping expression, content, and entrepreneurship in the Creator Economy.
- Venice Tech Happy Hour - Join Startup Coil and FoundrHaus for a special LA Tech Happy Hour event.
Wednesday, October 25th
- University $50K Shark Tank Startup Competition - Join ORCA and Honors Fund Wednesday night in DTLA to see 6 of the best University Founded B2B SaaS Startups pitch live in front of a investor panel and audience of 100+. After all 6 pitches, the panel will debrief and then make the $50k investment decision live on the spot.
- LA Startup and Tech Mixer - Join LA Tech Mixer in Santa Monica to connect with individuals in the startup, tech & entrepreneurial space!
Thursday, October 26th
- FUNders’ Halloween Happy Hour - Join Wiseras.com for a spine-tingling evening of connection and innovation at their Tech Founder's Halloween Happy Hour.
- Expert DOJO Fall 2023 Cohort Demo Day! - Join Expert Dojo’s fall demo day to learn about the investment opportunities in their 10 newest investments! Sectors vary from artificial intelligence to gaming!
Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!
📙 What We’re Reading
- Learn about NBC’s new streaming service that bets on high school and amateur sports. - read more
- Microsoft acquires Activision Blizzard in $69-billion gaming deal. - read more
- MetAlert gets first order for its gun tracker device. - read more
- Amazon Web Services (AWS) is celebrating a milestone of its flagship startup program AWS Activate , the 10th anniversary of the program’s launch. - read more
- Netflix raises prices and adds nearly 9 million subscribers in Q3 with ad-supported plans up nearly 70% from Q2. - read more
