

Get in the KNOW
on LA Startups & Tech
X
Image from Shutterstock
Keylogging Controversy Brings TikTok Back Under US Government Scrutiny
Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
TikTok, the social app that’s so popular that some are using it as a search engine at this point, remains as vital destination as ever for Pink Sauce connoisseurs. Still, the company’s PR headaches continued this week.
Independent research performed by developer Felix Krause found code injected by the social network’s operating system enabling it to monitor all keyboard inputs and tags, even without hitting “submit,” a process known as “keylogging.”
As Krause explained on his blog, this could potentially include recording sensitive information such as passwords and credit card numbers. And because TikTok comes with an internal browser, this functionally gives the app the ability to monitor its users as they browse around third-party websites and services.
TikTok’s certainly not alone in checking out all of your data as you type. A previous post by Krause focused on tracking code within Meta’s Facebook and Instagram iOS apps, allowing them to potentially follow users within in-app browsers as well. A recent survey of the top 100,000 most popular websites found that 1,844 logged an EU user’s email address without their consent, and 2,950 recorded a U.S. user’s email data in some form. The keylogging protocol has also been used as a way for employers to monitor the activity of remote employees.
Though it certainly sounds sinister, keylogging is not necessary by definition malicious. TikTok claims that the code in question is used for “debugging, troubleshooting, and performance monitoring,” and in a statement, a representative denied that the company even collects specific keystroke or text input data. (The company also pointed out similar code in GitHub that’s used for an alternative purpose than keylogging, as a third party example.)
Still, the very mention of privacy concerns and TikTok in the same sentence is enough to raise some eyebrows in the U.S., where the app–which is owned by the Chinese parent company ByteDance–has always operated under a dark cloud of suspicion. Allegations in 2019 that the app was hoovering up data from underage users and censoring content on behalf of China’s ruling Communist Party led to calls for investigations from high-profile politicians. In December of that year, just as TikTok was taking over as the world’s most downloaded app, the U.S. Department of Defense was recommending that all military personnel delete it from their phones.
In 2020, President Trump signed a series of executive orders banning U.S. companies from doing business with TikTok (as well as the Chinese-owned WeChat app). These orders were later reversed by the Biden administration, which nonetheless urged Americans handling sensitive information to consider the apps a “heightened risk.”
The House of Representatives’ Chief Administrative Officer (CAO) echoed these concerns just this week following the keylogging report, issuing a “cyber advisory” about security on TikTok, noting that, despite its Culver City headquarters, it’s still “a Chinese-owned company.”
So even a U.S. government that was initially inclined to be more TikTok friendly may be having second thoughts.
From Your Site Articles
- TikTok Timeline: The Rise and Pause of a Social Video Giant - dot.LA ›
- Why Snap Wants To Implement an AI Powered Search Engine - dot.LA ›
Related Articles Around the Web
Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
dot.LA VC Sentiment Survey: Investors See Lots of Deals and Hiring Despite Long Return to Normal
06:58 AM | December 16, 2020
Welcome to the first edition of the dot.LA VC Sentiment Survey. Every quarter we're going to be surveying the top VCs in Los Angeles. We asked dozens of partners and top level investors who they thought were the hottest companies and best VCs right now and we will be sharing their opinions in the coming days and weeks.
But we first wanted to know how they are feeling about the startup world and the larger economy at the end of the most tumultuous year of our lifetimes.
Our survey found a considerable amount of optimism, especially considering that coronavirus hospitalizations and deaths continue to skyrocket in California and the U.S.
Of the 28 respondents, 82% expected their portfolio companies to hire more staff in the next quarter, with over half saying they had also added employees in the last quarter. None said they had seen reduced staffing or expected to do layoffs in the next quarter.
Dealmaking among our cohort remained robust. Slightly under half said they made the same number of deals in the past quarter compared to Q3, while 35% said they made more deals and only 25% said they made fewer deals. Most saw valuations hold steady while 35% saw them go up.
For comparison, when Pitchbook surveyed 102 VC's last month, 51% said they were investing at the same pace as before the pandemic, and only 3.9% said they had significantly pulled back.
It can seem a bit incongruous to see such robust dealmaking amidst a recession, but if we've learned anything this year it's that the pandemic and ailing broader economy has little effect on most tech companies and in many cases has been a benefit by accelerating the shift to digital.
Graphics by Candice Navi
Most of our VCs don't think the U.S. economy will start to recover for another year. A third think the recession will last all the way until the second half of 2022 and even stretch into 2023. That's slightly more pessimistic than a recent survey of economists, which found 73% expect the U.S. economy to recover to pre-pandemic GDP by the second half of 2021.
And the pandemic is likely to have lasting impact on the workplace. If you've gotten used to Zoom meetings and yoga pants, do not expect a return to the office anytime soon. Most respondents don't expect to require their employees to go back until the second half of 2021. Notably, a quarter of our VCs do not expect employees to ever go back.
Lead image and graphics by Candice Navi.
Read moreShow less
Ben Bergman
Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.
https://twitter.com/thebenbergman
ben@dot.la
Billion-Dollar Beauty. Billion-Dollar Radios. Only in LA.
10:39 AM | May 30, 2025
🔦 Spotlight
Hello Los Angeles,
This week, LA proved it can scale in silence and shine in the spotlight, sometimes in the same breath.
Let’s start with the quiet powerhouse.
Culver City-based Silvus Technologies is being acquired by Motorola Solutions for $4.4 billion in up-front consideration, with the potential for an additional $600 million in earnout payments, bringing the total deal value to $5 billion. Silvus builds tactical mesh radios, rugged high-bandwidth systems used by militaries, emergency responders, and defense contractors in more than 40 countries. These aren’t just walkie-talkies. They are engineered to deliver secure, uninterrupted communications in places where cell service and Wi-Fi don't stand a chance. Think natural disasters, war zones, and remote terrains. The tech spun out of DARPA-funded research at UCLA, and this deal is a reminder that LA isn’t just cranking out consumer apps and AI models. We’re exporting national security infrastructure too.
But while Silvus was locking down defense contracts, another LA startup was breaking the internet.
e.l.f. Beauty Chairman and CEO Tarang Amin and Rhode Founder Hailey BieberImage Source: e.l.f. Beauty
Rhode, Hailey Bieber’s skincare brand, is being acquired by e.l.f. Beauty in a deal valued at up to $1 billion. The structure includes $600 million in cash, $200 million in stock at closing, and up to $200 million in earnout payments tied to Rhode’s performance over the next three years. Not bad for a brand that launched in June 2022 and built a cult following off just a handful of products and a crystal-clear brand identity.
Yes, it’s celebrity-founded. But Rhode didn’t just ride a name. It built a movement. The brand cut through a saturated beauty market by doing less: launching with a few standout hero products, keeping the aesthetic clean and consistent, and using community-first marketing that turned product drops into cultural events. The results speak for themselves. $100 million in net sales over the past year and a loyal fanbase that treats peptide lip treatments like limited-edition merch.
Bieber wasn’t just the face of the brand. She helped shape the strategy, led product development, and drove creative decisions from day one. Following the acquisition, she’ll continue as Chief Creative Officer and Head of Innovation, while also stepping into a new role as strategic advisor to e.l.f. Beauty. Rhode will continue to operate independently, with its headquarters remaining right here in LA.
This isn’t just a win for Rhode. It’s another clear signal that LA is where culture, commerce, and execution come together and scale fast.
Keep reading for the latest LA venture rounds, acquisitions, and fund moves making headlines this week.
🤝 Venture Deals
LA Companies
- Bezel, a luxury watch marketplace, recently secured a $670K investment from Hyperspace Ventures as part of a broader $6.8M funding initiative. This investment aims to support Bezel's growth and enhance its platform for authenticated luxury watch trading. - learn more
LA Venture Funds
- Sound Ventures participated in the Series A funding round for General Counsel AI, a startup using artificial intelligence to streamline in-house legal work. The platform helps legal teams draft documents faster, stay compliant, and eliminate repetitive tasks by embedding company knowledge directly into its AI workflows. With Sound Ventures' backing, GC AI plans to scale its team and expand the platform’s capabilities to serve more enterprise legal departments. - learn more
- Kairos Ventures participated in Vivodyne’s $40M Series A funding round, reaffirming its commitment to advancing human-relevant drug development technologies. Vivodyne, a biotech company based in Philadelphia and San Francisco, is pioneering the use of AI and robotics to grow and test thousands of lab-grown human tissues, aiming to replace traditional animal testing in drug development. This approach addresses the high failure rate of clinical trials by providing more predictive human data, potentially accelerating the development of effective therapies. The new funding will support the expansion of Vivodyne's operations, including the opening of a 23,000-square-foot fully robotic laboratory in South San Francisco, to meet the growing demand from pharmaceutical clients. - learn more
- Fifth Wall co-led Wander’s $50M Series B funding round, joining QED Investors and others to support the company’s mission of redefining luxury vacation rentals through technology and consistency. Wander operates a vertically integrated platform that combines premium vacation homes with hotel-grade service, powered by its proprietary AI system, WanderOS. With over 1,000 properties already live and a Net Promoter Score of 85, Wander aims to scale toward 300,000 homes globally, offering a trusted and seamless experience for travelers and property owners alike. - learn more
- Clocktower Technology Ventures and Overture VC participated in GridCARE’s $13.5M seed funding round, supporting the company's mission to address the growing power demands of AI infrastructure. GridCARE utilizes advanced AI to identify and unlock underutilized grid capacity, significantly reducing the time required to power data centers from several years to just 6–12 months. By bridging the gap between AI developers and utility providers, GridCARE aims to accelerate the deployment of AI technologies while enhancing energy resilience. - learn more
- Clocktower Technology Ventures participated in Monarch Money’s $75M Series B funding round, reaffirming its support for the personal finance platform's mission to enhance financial wellness for households. Monarch offers tools for aggregating financial accounts, visualizing net worth, tracking budgets, and collaborating with partners or advisors. The new funding will enable Monarch to expand its team and further develop its platform to better serve its growing user base. - learn more
LA Exits
- TinyWins, the LA-based digital creative studio known for blending emotional storytelling with performance-driven content, has been acquired by marketing consultancy The Shipyard.Best known for its work with brands like Disney, Netflix, and Google, TinyWins will continue to operate under its own name and leadership in Los Angeles. The acquisition gives TinyWins access to deeper strategic and media resources, while The Shipyard expands its creative firepower and strengthens its presence on the West Coast. - learn more
- Churchill Management Group has been acquired by Focus Partners Wealth, marking the firm’s first external acquisition since its January rebrand. The Los Angeles-based investment advisor manages $9.4 billion in assets and will expand Focus’s national footprint in wealth management. - learn more
- Dolby Theatre, renowned for hosting the Academy Awards, has been acquired by Master Investment Group in partnership with Jebs Hollywood. The new ownership plans to introduce a series of events celebrating Middle Eastern culture, aiming to showcase the region's rich heritage, music, and traditions. This initiative seeks to foster community engagement and promote cultural exchange by bringing diverse artistic expressions from the Middle East to a global audience. - learn more
Read moreShow less
RELATEDTRENDING
LA TECH JOBS