The SoCal Companies Affected By the Fall of Silicon Valley Bank

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

The SoCal Companies Affected By the Fall of Silicon Valley Bank
An event held by SVB Private, an arm of Silicon Valley Bank, in March. (Cameron Rice)

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The shockwaves fromSilicon Valley Bank’s (SVB) unexpected shutdown are rattling the tech industry writ large. In Southern California, SVB invested in several local tech companies through its SVB Capital venture arm.

Though the bank’s VC arm won’t be able to conduct future investments, founders that do have money tied up with the company in the form of debt will have to pay back the eventual new owner of SVB, and potentially would be opening themselves up to new loan terms.

With this in mind, let’s look at the Southern California tech firms that still have money tied up with SVB, and how that might affect their operations as the floundering bank searches for a bailout.


Suiteness

Walnut-based Suitness makes an app for people to book adjoining hotel rooms or suites. It took debt financing from SVB and paid it off last year, founder Kyle Killion said.

But, Killion said he almost wished they had been a bit less financially responsible: “We could have gotten an even better deal if we had waited” to pay off the SVB debt, he told me. “If we had waited the debt would be sold off to another bank at a discount and we would need to pay them [and] that new bank’s cost-basis would be lower because of the discount.”

In addition to SVB, Suiteness has also taken funding from Y Combinator and counts OpenAI founder Sam Altman as a board member and investor. Killion said that despite the current turmoil, his company had a good experience lending from the embattled bank. “We did get a very generous deal from SVB,” he said.

Pathmatics

Pathmatics is now part of app data firm SensorTower, but before itsMay 2021 buyout, the Santa Monica-based mobile ad analytics company raised debt funding from SVB. Gabe Gottlieb founded Pathmatics and served as its CEO for nearly 11 years before the buyout, and he is now Sensor Tower’s chief strategy officer.

Gottlieb said Pathmatics found SVB after its series A round. He said Pathmatics paid off its SVB debt before the acquisition and noted if it weren’t for the closing, he’d bank with SVB again. “I feel like we got a pretty good deal,” Gottlieb told me, adding it was a “low interest rate in absolute terms for a startup that was still very much in the growth phase.”

The founder also added, “I always felt like they had top-notch people working there [and] I’m really sad to see what has happened to them as they were an important part of literally generations of startups’ success.

EcoSense

In the last several years EcoSense has bought out a number of rival LED makers, including Lumium Lighting in January 2019 andSoraa in March 2020. The LED luminaire company raised a debt financing round from SVB in late June 2020, according to PitchBook Data. EcoSense launched in 2009 and is now owned by Korrus, a lighting company based in Chinatown.

Fulcrum Microsystems

A semiconductor company based in Calabasas, Fulcrum Microsystems raisednearly $17 million from investors including SVB Capital back in March 2007. The company was lateracquired by chip-maker Intel in July 2011 for an undisclosed sum. Fulcrum’s tech mainly powers Ethernet switches for data centers, and Intel’s buy gave it a valuable direct supplier to power its data centers across the globe.

HealthTap

Per Pitchbook, Sunnyvale-based virtual doctor appointment app HealthTap raised debt financing from SVB in April 2020. SVB was biotech-focused and rana healthtech investment banking division alongside providing debt rounds to healthtech companies in California.

Last November, HealthTaplinked with Samsung to bring its Eval360 tech – which lets doctors conduct virtual medical exams – to develop software that would allow people to get those virtual evaluations through their Samsung Smart TVs in the future.

Kandji

ThisSan Diego-based company builds a device management software for IT teams using Apple products. It raised $60 million from investors including SVB Capital in March 2021. Less than a year later, itraised another $100 million, also from investors including SVB Capital. In addition to SVB Capital, Kandji is backed by VC firm Greycroft, which has an Arts District office, and Manhattan Beach-based B Capital. Kandji has raised nearly $90 million since its 2018 launch.

Shield AI

San Diego-basedShield AI is trying to build Hivemind, the world’s first artificial intelligence pilot to power autonomous planes. SVB backed the company in December 2022, joining Shield AI’s$225 million Series E round. SVB also invested in its $22 million Series B round in April 2019. Shield AI has raised $575 million since it launched in 2015, and is also backed by Venice-based Riot Ventures.Boeing recently partnered with Shield AI to research unmanned flight technologies for the U.S. Air Force.

Disclosure: SVB has been a sponsor of dot.LA events and recently had an article published on the site as part of a paid partnership agreement.

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🌴🧑‍💻 Your Guide to LA Tech Week 2024

🔦 Spotlight

Happy Friday Los Angeles,

As many of you know, LA Tech Week is right around the corner, kicking off next Monday October 14th bringing together founders, creatives, investors, and engineers for a week of immersive events, panels, and socials across the city. From blockchain and AI to biotech and design, LA Tech Week is a chance to dive into the ideas shaping today’s technology landscape.


What to Look Forward To

Insights from Visionary Leaders: Hear firsthand from industry trailblazers as they share stories, challenges, and key lessons from their experiences. Expect fresh perspectives on AI, venture capital, biotech, and the ethical questions around emerging technologies.

Interactive Panels: This week isn’t about watching from the sidelines; it’s about engaging directly with the tech community. Participate in hands-on panels discussing everything from startup scaling to ethical AI, with honest insights from those actively shaping these fields.

Networking Mixers & Social Events: Meet and connect with founders, VCs, developers, designers, and fellow techies across LA. Rooftop mixers, lunch meetups, and creative gatherings offer the perfect chance to spark ideas and collaborate.

Plan your week with the daily lineup, organized by location for easy navigation:

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

Enjoy LA Tech Week 2024!!


🤝 Venture Deals

LA Companies

  • Clout Kitchen, a Los Angeles and Manila based startup, has raised $4.45M in seed funding, co-led by a16z SPEEDRUN and Peak XV’s Surge, to develop AI-powered digital twins, which enables gaming creators to produce realistic virtual avatars for content and fan engagement. - learn more
  • MeWe, a privacy-focused social media platform, has raised an initial $6M in Series B funding led by McCourt Global to support Web3 integration and expand its decentralized network for 20 millions users. - learn more

    LA Venture Funds
    • EGB Capital participated in a $10M Series A funding round for MiLaboratories, which develops software that enables biologists to independently analyze complex genomic data, accelerating research and discovery in fields like drug development. - learn more
    • Crosscut Ventures participated in the $13.75M seed round for Airloom Energy, a company focused on developing airborne wind energy technology to harness high-altitude winds, with plans to accelerate a pilot project in Wyoming. - learn more
    • Overture VC participated in a $5.5M Seed funding round for Molg Inc., a company developing robotics and software for circular manufacturing, designed to disassemble electronics efficiently and recover valuable materials to reduce e-waste and support sustainable production. - learn more


      LA Exits

      • Options MD, a Los Angeles based telemedicine platform that provides care for people suffering from severe and treatment-resistant mental illness, is set to be acquired by Resilience Lab, an AI-driven provider focused on enhancing mental health care access. - learn more

      Download the dot.LA App

      LA Tech Week 2024: Saturday-Sunday Event Lineup
      tech-week

      Here’s what’s happening during the closing weekend (Oct 19 - Oct 20) of LA Tech Week 2024! Events are organized by location so you can easily catch the sessions that interest you most.

      SATURDAY EVENTS

      BEVERLY HILLS

      12:00 PM

      • BIG Showcase (Invite Only):

      BIG Showcase (Invite Only)

      2:00 PM

      Light Dao

      Struck Capital, Seahorse Express

      EAGLE ROCK

      12:00 PM

      Sunrise Integration, Shopify

      EL SEGUNDO

      9:00 PM

      Administratum, Valar Atomics

      HOLLYWOOD

      10:00 AM

      Passes

      MALIBU

      6:00 PM

      • Malibu Beachfront Investors Networking & Wine Tasting:See Details

      Gaya Ventures

      MARINA DEL RAY

      6:00 PM

      • Awaken Your Spirit: A Journey of Transformation (Invite Only)

      Sagos Distro, Alma Wellness

      SANTA MONICA

      7:00 AM

      Founders Running Club

      8:30 AM

      Techstars

      9:00 AM

      Magic Mind

      StartupStarter, Inc., City of Santa Monica

      10:00 AM

      Gen She

      AI LA

      Crea, Barry's, Unsubscribe

      10:30 AM

      Plantologist

      11:30 AM

      • Pickleball Palooza (Invite Only)

      YouTube

      1:00 PM

      • Realfren Games: From strangers to an inner Realfren within 52 weekends: See Details

      Office for Humanity and Circuit Works

      • Talking blockchain technology with special guests: See Details

      LadyDayDao

      5:00 PM

      KARD, What's Plots

      THE VALLEY

      7:00 AM

      Camino5

      VENICE

      9:00 AM

      Westside Yogis

      11:00 AM

      Open App

      1:00 PM

      Ripe and Teddy's Hot House

      4:00 PM

      • Fashion Forward: How AI is Redefining the Fashion Industry: See Details

      VIAVIA, BNTO.RENT, ALMA.AI

      VIRTUAL

      11:00 AM

      BLCK UNICRN

      WEST HOLLYWOOD

      7:00 PM

      Next Sequence

      SUNDAY EVENTS

      INGLEWOOD

      12:00 PM

      Entrepreneur Ventures, VCPE GROUPS

      PLAYA DEL RAY

      2:00 PM

      AI LA, DELL, NVIDIA

      SANTA MONICA

      10:00 AM

      • Women Founders, Cold Brew & Beach View, Rooftop: See Details

      Clutch Talent

      11:00 AM

      11DollarSunglasses.com, Less Litter Foundation

      12:00 PM

      Data in LA, Amplitude

      12:30 AM

      New Moon, Warner UK Innovations

      TOPANGA CANYON

      3:00 PM

      Dreamore

      VENICE

      8:00 AM

      • Surf session with founders, investors, creators: See Details

      Surfed Club, Bow Shock

      12:00 PM

      • Podcast Panel and Brunch: LA Tech Community Builders: See Details

      WeAreLATech.com, Blankspaces.com

      VIRTUAL

      2:00 PM

      BLCK UNICRN


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

      Enjoy LA Tech Week 2024!


      Download the dot.LA App

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

      Check out Friday, October 18th's schedule for LA Tech Week 2024! Events are sorted by location so you can easily find what matches your goals for the day.

      BEVERLY HILLS

      8:00 AM

      Scrappy

      BRENTWOOD

      7:30 AM

      Seaside Ventures

      CULVER CITY

      9:00 AM

      Intersections LA

      1:30 PM

      • Showcasing Bioscience Innovation in LA County (Invite Only)

      BioscienceLA, County o LA, Larta Institute, LAEDC

      5:00 PM

      Grid110

      6:00 PM

      ACT House, Sip & Sonder

      EL SEGUNDO

      7:00 PM

      Dirac, Inc.

      INGLEWOOD

      10:00 AM

      Zoo Corporation, Embedded Ventures

      12:00 PM

      • Tech & The Built Environment Series: LA28 Roundtable & SoFi Stadium Tour: See Details Here

      Blended Impact

      MARINA DEL REY

      9:00 AM

      USC ISI

      PACIFIC PALISADES

      4:00 PM

      Silicon Valley Bank, Emmeline Ventures

      PLAYA DEL REY

      8:00 AM

      AI LA

      5:30 PM

      AI LA

      PLAYA VISTA

      12:00 PM

      • Women In Gaming Lunch at Google (Invite Only)

      Google

      4:00 PM

      Verizon, Infinity Festival

      SANTA MONICA

      11:00 AM

      SVRN Ventures

      Headline, Slow Ventures, Karat

      2:00 PM

      Glyf

      Botanical, Panoptic

      The American South Asian Network (ASAN)

      4:00 PM

      • Pizza, Wine, & Connectivity: Celebrating the Nomadic App Revolution:See Details Here

      Synadia

      The American South Asian Network (ASAN)

      Dory Consulting

      • Women in Tech: Beachfront Rooftop at Sunset - Wine-up & Unwind: See Details Here

      Clutch Talent

      Cohere Commerce

      5:00 PM

      Clutch Talent

      Pirros

      6:00 PM

      • Unlocking Capital with Angels & Advisors | No Pressure Networking + Panel:See Details Here

      No Pressure Networking

      Tech Pitch Roast Comedy LLC

      6:15 PM

      • Navigating Intersections: Empowering Leaders in Challenging Times: See Details Here

      Intersectional Ventures

      7:00 PM

      Mantis VC, Lightspeed Venture Partners

      Medusa Ai, Marco Di Luca Event Design

      SOUTH LA

      9:00 AM

      USC Lloyd Greif Center for Entrepreneurial Studies, Cap Table Coalition, PledgeLA, Sisters with Ventures

      UCLA

      1:30 PM

      CrownData.AI

      2:00 PM

      Taisu Ventures, Quotient Ventures

      VENICE

      7:30 AM

      Run Tech Club

      9:00 AM

      Google

      12:00 PM

      Ripe and Teddy's Hot House

      5:30 PM

      Spire Circles

      7:00 PM

      Moss Venice, Yuzulabs, JPMorgan Chase

      8:00 PM

      Truffle

      VIRTUAL

      2:00 PM

      BLCK UNICRN

      WEST HOLLYWOOD

      7:30 PM

      Legendary Ventures, Day Dream Ventures

      WESTSIDE

      9:30 AM

      A16Z GAMES

      7:00 PM

      • Female Funders & Founders (Invite Only)

      L'ATTITUDE Ventures

      WESTWOOD

      9:00 AM

      Fedtech, National Security Innovation Network (NSIN)


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

      Enjoy LA Tech Week 2024!

      Download the dot.LA App

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