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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Billion-Dollar Milestones and Snapchat’s New Features

🔦 Spotlight

Happy Friday Los Angeles!

This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

Image Source: Snap

Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

Image Source: Liquid Death

ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

Image Source: Altruist

Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


🤝 Venture Deals

LA Companies

  • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
LA Venture Funds
  • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
  • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

LA Exits


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      ⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

      🔦 Spotlight

      Happy Friday Los Angeles,

      The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

      The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

      For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

      While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

      The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

      Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

      As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

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


      🤝 Venture Deals

      LA Companies

      • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

      LA Venture Funds
      • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
      • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

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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

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