
Get in the KNOW
on LA Startups & Tech
XMother Blames TikTok For Daughter’s Death in ‘Blackout Challenge’ Suit
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
The mother of a 10-year-old girl who died after allegedly trying a dangerous online “challenge” has sued Culver City-based TikTok and its Chinese parent company ByteDance, claiming the social media app’s algorithm showed her videos of people choking themselves until they pass out.
Nylah Anderson, an intelligent child who already spoke three languages, was “excruciatingly asphyxiated” and found unconscious in her bedroom on Dec. 7, according to a complaint filed Thursday in federal court in Pennsylvania. She spent five days in pediatric intensive care until succumbing to her injuries.
The lawsuit, filed by her mother Tawainna Anderson, claims TikTok’s algorithm had previously shown Nylah videos depicting the “Blackout Challenge,” in which people hold their breath or choke themselves with household items to achieve a euphoric feeling. That encouraged her to try it herself, the lawsuit alleged.
“The TikTok Defendants’ algorithm determined that the deadly Blackout Challenge was well-tailored and likely to be of interest to 10-year-old Nylah Anderson, and she died as a result,” the suit said.
In a previous statement about Nylah’s death, a TikTok spokesperson noted the “disturbing” challenge predates TikTok, pointing to a 2008 warning from the Centers for Disease Control and Prevention about deadly choking games. The spokesperson claimed the challenge “has never been a TikTok trend.” The app currently doesn’t produce any search results for “Blackout Challenge” or a related hashtag.
“We remain vigilant in our commitment to user safety and would immediately remove related content if found,” the TikTok statement said. “Our deepest sympathies go out to the family for their tragic loss.”
At least four other children or teens have died after allegedly attempting the Blackout Challenge, according to the Anderson lawsuit. TikTok has grappled with dangerous challenges on its platform before, including one in which people tried to climb a stack of milk crates. That was considered so dangerous that TikTok banned the hashtag associated with it last year. In February, TikTok updated its content rules to combat the dangerous acts and other harmful content.
The Anderson lawsuit comes as lawmakers and state attorneys general scrutinize how TikTok and other social media can be bad for teens and younger users, including by damaging their mental health, causing negative feelings about their body image and making them addicted to the apps.
- Banning Snapchat Drug Sales Is 'Top Priority,' Snap Says - dot.LA ›
- TikTok Updates Content Rules and Guidelines - dot.LA ›
- TikTok 'Blackout Challenge' is the Focus of a New Lawsuit - dot.LA ›
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Weekly Tech Recap: Niche Streaming Services Are Nibbling Netflix's Lunch
Smaller, niche competitors to Netflix are slowly gobbling up its marketshare, according to new data. In the last two years, Netflix and Hulu's combined share of streaming video subscriptions in the U.S. has dropped from nearly 75% to below 50%.
Subscribers for the 10 so-called "specialty" subscription streamers that Antenna tracks — including Cinemax, BET Plus and Sundance Now — have collectively grown 74% over the last two years.
And while their growth rates are larger, these niche streamers only have a small fraction of the market. Dive into the numbers.
LA Startups To Watch 👀
🚙 Fisker Inc. is set to debut its electric SUV at the Los Angeles Auto Show in November. The Manhattan Beach-based electric vehicle startup also told investors on Thursday that it is accelerating development of its small car.
✈️ This week, Elude launched its travel app — built with a set of AI and Tinder-like features meant to create a personalized travel booking experience for price-conscious millennials and Gen Z. On Thursday, the Los Angeles-based startup raised $2.1 million in a round of seed funding led by Mucker Capital and Unicorn Ventures.
🌙 Kenshō Health, a Los Angeles-based startup that offers a searchable referral service to help patients find holistic medicine healthcare providers, will soon make a move into telehealth. The company announced Thursday that it raised $3.5 million in a seed funding round that was led by KB Partners and included Company Ventures and Gaingels.
🪙 Cent, owner of NFT marketplace Valuables, raised $3 million from celebrity investors to help creators make money by minting non-fungible tokens from tweets.
#TechLA's Movers & Shakers This Week 📢
🎞 Reese Witherspoon is selling her production company Hello Sunshine — which makes shows for Apple, Hulu, HBO and Amazon — to former Disney executives Kevin Mayer and Tom Staggs' media startup.
🏡 Last week, Rialto-based Plant Prefab opened its second factory, in Ontario, and on Tuesday announced that it raised an additional $30 million for a third highly automated factory. The company says it is poised to take on the growing green home market.
LA Tech and Venture Capital News 🗞
📚 Edtech powerhouse GoGuardian nabbed a $200 million strategic investment from Tiger Global Management, making the Los Angeles company an instant unicorn on Thursday. GoGuardian's software lets teachers monitor students' activity online during school hours, technology that's attracted criticism from privacy rights advocates.
⬆️ Adtech startup Ryff is moving into the creator economy with a new service called Spheera. This week it raised $11.7 million in a Series A funding led by Audent Global Asset Management.
💡 The Alliance for SoCal Innovation and Silicon Valley Bank (SVB) are teaming up to create the SoCal Venture Pipeline, a fund that backs brands and companies in lesser-known parts of Southern California where entrepreneurs have fewer connections to venture capitalists.
Listen Up 🎙
Need a podcast recommendation this weekend? Here are some new pods we have for you:
🔈 Lindsay McCormick, founder and CEO of Bite Toothpaste Bits, says she came up with the idea for her company while working as a producer at HGTV's "HouseHunters" show. In this episode of Behind Her Empire, McCormick offers advice for up-and-coming entrepreneurs. Listen on Stitcher, Apple Podcasts, Spotify, iHeart Radio or wherever you get your podcasts.
🔈 Carey Ransom, founder and president of Orange County-based venture studio Operate, tells the LA Venture podcast that the entrepreneurs of tomorrow are those who demonstrate grit and determination to improve their lives. Listen on Apple Podcasts, Stitcher, Spotify or wherever you get your podcasts.
🚨 EXTRA EXTRA 🚨
💉 Los Angeles city officials are considering a rule requiring residents to show proof of #vaccination before entering restaurants, bars or grocery stores. Here's how you can show proof that you got vaccinated.
🎥 Streaming platforms are helping film productions in Los Angeles return to pre-pandemic levels. From April through June, production in L.A. ramped up to a total of 9,791 shoot days, the highest number since late 2019, just before the coronavirus pandemic froze the motion picture industry.
📱 Mobile is an emerging battlefront for streaming platforms. And NBC's Peacock TV mobile app is getting a boost thanks to the Tokyo 2020 Olympics. From June to July, the app saw average daily users in the U.S. climb 52%, to about 2.4 million.
🗞 Activision Blizzard continued to make news this week starting on Monday with workers penning a letter to CEO Bobby Kotick, calling on the company to create a safe work environment. The next day, Blizzard President J. Allen Brack stepped down from the company "to pursue new opportunities."
📊 But despite the strife and protest from employees and shareholders, the company announced second-quarter revenues of $1.92 billion, well above Wall Street expectations.
💬 Male players often level bigoted criticism at female gamers or argue they're not comfortable playing with women. And within the gaming workforce, women have contended with blatant sexual harassment. Team Cloud9 White describes what it's like to be women in the world of esports.
LA Tech and Venture Capital Events 💬
Check out these upcoming Southern California events in the tech and startup scene in August:
- Electric Vehicles Battery Tech USA 2021 Exhibition And Conference - August 12-13 - Long Beach, CA
- ITAD Summit 2021 - August 18-19 - Huntington Beach, CA
- Paradigm Talks is holding a networking event for entrepreneurs, private investors and corporate finance professionals - August 19 - Los Angeles, CA
- Build-N-Scale LA is holding a networking event - August 25 - Santa Monica, CA
Is your organization having an event? Let us feature it in our newsletter! Email luis@dot.la.
Am I doing this right? 🤔
Throw me feedback, compliments or questions on this newsletter at luis@dot.la or on Twitter at @rungomez.
Luis Gomez is dot.LA's Engagement Editor. Prior to joining the dot.LA team, he served as the audience growth consultant for Capital & Main. He has also previously worked as a digital producer for The San Diego Union-Tribune, NPR affiliate KPCC in Los Angeles and Yahoo. Follow him on Twitter at @RunGomez.
An LA AI Company Just Won Entertainment’s Backing
🔦 Spotlight
Hello LA.
The entertainment industry has spent the past several years debating what generative AI could take from creators.
This week, some of its biggest companies put money behind an AI startup promising to build something for them instead.
Los Angeles-based Stability AI raised $76M in Series B funding from an investor group that includes Electronic Arts, Sony Music Group, Universal Music Group and Warner Music Group. AMD Ventures and Pacific Alliance Ventures also joined the round, while LA-based MANTIS Capital and Sound Ventures are among the company’s existing backers.
The financing brings Stability AI’s total funding under CEO Prem Akkaraju to $232M, including two equity rounds and convertible notes. The company plans to use the new capital to expand its creative production tools, applied research and professional services across music, gaming and entertainment.
The amount is notable. The names attached to it are the bigger story.
Generative AI’s arrival in entertainment has been anything but quiet. Artists have questioned whether their work was used to train models without permission. Studios have faced pressure over how the technology could affect jobs. Record labels have pursued AI companies in court while simultaneously exploring how the same technology might fit into their businesses.
Now, several of the world’s largest entertainment companies are investing directly in one.
That does not mean the industry has resolved its concerns about AI. It means some of its biggest players would rather help shape the technology than wait to see what it becomes.
Stability AI is positioning itself for that opening. Rather than focusing solely on general-purpose models, the company is building tools specifically for professional creatives. Its recently launched Stable Audio 3.0 was trained on fully licensed music and lets artists generate, edit and arrange audio through a web platform or directly inside digital audio workstations.

That licensed-data approach is central to the pitch. The next phase of creative AI will not be decided only by which company produces the most impressive model. It will also depend on which companies can earn the trust of the artists, studios and rights holders whose work gives those models value.
For its new strategic investors, the round offers more than financial upside. It creates a closer view into how generative AI may change production, a voice in how the tools develop and an opportunity to establish rules before those rules are established for them.
For Stability AI, the backing provides something equally important: credibility inside industries that have every reason to scrutinize what it is building.
The company now has capital and access to some of the largest catalogs, franchises and creative workforces in entertainment. What it does with that access will determine whether this becomes a meaningful alliance or simply an impressive collection of logos.
Either way, the industry is no longer watching from a safe distance.
It has entered the room.
LA’s Air-Taxi Plans Are Coming Downtown
While Stability AI is trying to change how entertainment gets made, Archer Aviation wants to change how people get to it.
AEG and Archer announced plans to develop downtown Los Angeles’ first vertiport at L.A. LIVE, creating a potential new stop in Archer’s proposed electric air-taxi network ahead of the 2028 Olympic and Paralympic Games.

The planned site would sit beside Crypto.com Arena and allow passengers to travel to and from the entertainment district aboard Archer’s Midnight aircraft. The company says its network could turn drives that take an hour or longer into electric flights lasting approximately 10 to 20 minutes.
Archer has already identified SoFi Stadium, USC and Hollywood Burbank Airport as possible locations, with its recently acquired Hawthorne Airport expected to serve as the network’s central operating hub. As the official air-taxi provider of LA28 and Team USA, Archer has an unusually visible deadline for turning those plans into something tangible.
AEG and Archer have completed an initial feasibility study of the L.A. LIVE site, including reviews of land use, airspace, power availability and community impact. The next phase will examine operations and the passenger experience.
There is still a substantial distance between a proposed vertiport and a functioning air-taxi network. The infrastructure must be built, regulatory approvals must be secured and passengers must be persuaded that flying across the city is safer and more practical than staying on the ground.
Still, few locations could make that future feel more real than L.A. LIVE. Millions of people already pass through the district for concerts, games and major events. Placing a vertiport there would bring urban air mobility out of the concept stage and directly into public view.
Together, this week’s announcements show Los Angeles becoming a testing ground for two technologies still moving from promise toward everyday use.
One could reshape how entertainment is created. The other could reshape how Angelenos reach it.
In a city famous for both its creative industries and its traffic, that feels appropriately on brand.
More from this week’s LA startup and venture scene below.
🤝 Venture Deals
LA Companies
- Atorie raised a $9.5M seed round from investors including a16z speedrun, Night Capital and Lightspeed Venture Partners’ Jeremy Liew. The AI-powered fashion startup connects consumers directly with luxury manufacturers to offer high-quality goods without traditional designer markups, and will use the funding to expand logistics, production and its AI shopping tools. - learn more
- Long Beach-based Maglut Heavy Industries emerged from stealth with $3.1M in pre-seed funding from Wave Function, Nova Threshold and Julian Capital. The startup is developing a chromatography-based system to process and refine rare earth elements domestically, with pilot tests producing materials at more than 99.9% purity. - learn more
- MANTIS Venture Capital participated in Voya Energy’s $35M Series A, led by Energy Impact Partners and joined by John Doerr, StepStone, Founders Fund, Overmatch and Seven Stars. The Hayward-based startup will use the funding to commercialize its aluminum-fueled generators, which provide clean, off-grid power for data centers and other energy-intensive operations without combustion or local air emissions. - learn more
- Regeneration.VC participated in eComID’s $17M seed round, led by Systemiq Capital and joined by Course Corrected, Stadium and returning investor CapitalT. The Stockholm-based startup will use the funding to expand internationally and scale its AI-powered Shopping Passport, which helps retailers personalize sizing and product discovery while reducing returns. - learn more
- Clocktower Technology Ventures participated in Helcim’s $53M Series C, led by BDC Capital’s Growth Venture Fund and joined by new investors Curql Collective and LA-based Gold House Ventures. The Calgary payments company will use the funding to expand its platform, develop additional financial services and serve more small and midsize businesses across North America. - learn more
LA Exits
- Altruist agreed to be acquired by Vanguard, giving the Los Angeles-based wealth technology and custody platform greater resources to expand its tools for independent financial advisors. Altruist will continue operating as a standalone business under its existing leadership and brand after the deal closes, which is expected later this year pending regulatory approval; financial terms were not disclosed. - learn more
- Personality AI has been acquired by WildBrain for approximately $11M in cash and 1M WildBrain shares upfront, with additional payments tied to future performance. The startup develops kid-safe conversational AI experiences for entertainment characters, including “Hey Peppa Pig,” and will help WildBrain expand its franchises into interactive products across toys, apps and digital platforms. - learn more


