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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.
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Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Exclusive: Meg Whitman Talks Quibi, L.A.'s Tech Scene, and Hollywood's Renaissance
02:43 PM | April 07, 2020
Quibi launched this week into a world turned upside down by the novel coronavirus. How do things look on day two? dot.LA caught up with Chief Executive Officer Meg Whitman – former boss of eBay and Hewlett-Packard, and one-time California gubernatorial candidate – to discuss.
Whitman shares her reaction to the initial flow of real-time data on Quibi users, what she'll be watching closely over the next few months, and what the well-heeled company's future may hold. She also forecasts how the streaming wars may play out, reflects on lessons learned about the tech world, and reveals her thoughts on the burgeoning innovation ecosystem in Los Angeles.
You've spoken about looking forward to Quibi transitioning from an organization driven by intuition and experience to one driven by data. What is the initial data telling you?
First of all, we're really excited about our day one launch and our day one performance. The fact that we are number three in the App Store and number two in the entertainment segment of the App Store is a remarkable accomplishment. So we're thrilled.
And the social sentiment — we have social listening tools, like everyone else — the social sentiment is 80% positive, which is extraordinary. All the feedback we've been getting from users through our customer support team, they've embraced our innovative approach to what we're doing here. And Turnstyle, our technology: interestingly, the data shows 50% of the viewing was in portrait, 50% was in landscape--which is fascinating. So we're thrilled about that, super excited, and going onto day two here.
Over these next 89 days until the free trial ends and as the launch continues to unfurl, what will you be watching most closely?
Well, because the tech platform is not a legacy platform — it was built for Quibi — we were able to instrument into our data layer just about every piece of data that we could ever imagine we would want. So we can see, not individuals, but what are the trends in how people are watching, what are our top shows, what is our customer support team telling us every single day about what people want? Then we will prioritize those observations and requests into our product roadmap and into the kind of content that we produce. So we're looking for all the signs of how people use this app and what we can learn from it. And then of course we look at the metrics of downloads, trials, net paid subscribers, number of Quibi's (Quick Bites) per day that people watch, hours per day that people watch. We'll be watching all of that data for things that we should be doing, and adapting along the way.
Now that you've launched, can you talk a bit more than you have previously about the path to profitability?
I don't know about more than the past, but Jeffrey (Katzenberg) and I have run businesses for many, many, many years, and ultimately we know that revenues have to be greater than costs. Sometimes, not everyone subscribes to that, but we certainly do. So we've got a very clear path to profitability. The fundraise ($1.75 billion) gives us a nice long runway to get there. But we're very eye-on-the-prize in getting to a self-sustaining business. We've not told people what that number is yet, because we haven't even launched really; we're on day one. Over time, we'll communicate that to our investors and maybe even more broadly. We're very focused on getting to profitability.
When do you expect to be able to communicate the number of subscribers you're shooting for and the timeframe for doing so?
Well, remember we're a private company; certainly our investors have a window into that. But my view is we will take stock at a year. And we'll look back and maybe we'll give a more broad report on how we did in our first year. But we'll see. We're still new at this and it's the unknown unknowns that we're trying to figure out. I can't give you an exact date but I would think after a year; I'm very focused on "where are we after a year?"
To what extent has the coronavirus affected your projections and forecasts, if at all?
It hasn't at all, really. It's affected our launch plans. We had a physical launch event; we moved to a virtual launch event. We were going to do our Daily Essentials (daily news and culture segments) every day from the studios of our content partners; most of those now are being done at home. We were originally going to do a two-week free trial; but we did if you sign up by the end of April, we now have a 90-day free trial. So we made some adjustments, but in terms of our goals and aspirations for net paid subscribers and things like that, unchanged. Because I think we'll get through this. I don't know whether it'll be the beginning of summer, end of the summer, middle of fall, but we'll get through this and I think things will ultimately return to normal. So we didn't think it made sense to change the projections just yet.
Thinking back to when Jeffrey Katzenberg first approached you with this idea, what advice would you give to that past version of Meg, with the benefit of hindsight?
I think you will appreciate this, given that you are at the intersection of tech and media: these two worlds are very different. I knew that, but the difference between the San Francisco Bay area and L.A. is even bigger than I had thought. Neither is better than the other; they're just different. I took that into account, but I don't think, until I moved to L.A. and really tried to bridge these two worlds, that I understood how different they are.
It is our superpower: putting the engineering team right next to the content team was absolutely the right decision. All the advice I got from my friends in Silicon Valley was I had to put the tech for Quibi in Silicon Valley, or Seattle, or Austin or someplace like that. And I spent about two months trying to figure out whether the bench of tech talent here in L.A. was deep enough to support the launch of Quibi, and I ultimately determined that it was. It was absolutely 100% the right move.
I think we have a huge and wonderfully burgeoning tech community here in L.A., and I hope we can be a part of having that community grow and thrive. Because there's a lot of talent here. Not as deep as in the Bay Area, but a lot of talent, and we're super glad we put the tech team and the content team together. That helped bridge two very different worlds.
To what extent does L.A.'s burgeoning scene represent some of the earlier days that you saw in the Bay Area?
Well first of all, it's a smaller community. L.A. is still probably more of an entertainment-focused city than a tech-focused city. The Bay Area is all tech, all the time. So it's a smaller community here.
What I will say that I think ultimately advantages L.A., is the number of undergraduate institutions in the community. Think about it: it's USC, it's UCLA, it's Harvey Mudd, it's Pitzer, it's Pomona, it's Cal Tech, it's Occidental, it's Loyola-Marymount, and many, many more. So I think the future here is incredibly bright, because you've got all these schools focusing on computer science, focusing on engineering, so I think there will be a huge group of next-gen engineers who went to college here and want to stay. Up in the Bay Area it's just a few schools. It's UC Santa Cruz, it's Stanford, it's Berkeley, Santa Clara University -- fantastic schools, but not as many. And I think that bodes well for the future with the next generation of engineers.
Silicon Valley has been a tech hub since 1939, with the founding of Hewlett Packard; it was founded way back in the day, so there's a lot more history there. But I don't think that means L.A. can't be fantastic in terms of a tech hub.
Keeping your forecasting hat on, as media content and platforms continue to proliferate and improve, what must companies competing in the space do to emerge on the other side among the winners?
I think there's never been a better time to be a creator in Hollywood. There's tremendous demand for writers, directors, producers, actors, actresses, and all the people that surround these productions. It's literally like a renaissance in Hollywood. And I think the eye on the prize is always, is it a great story? Does it tell a new story, tell a story differently? And does it capture people's hearts and, secondarily, their minds? So you've got to keep your focus on the quality and the diversity of content that people want. That sounds a bit motherhood and apple pie, but I think that's always been true here and probably still is.
As an equilibrium eventually emerges in this space, how do you think that might look?
I think it depends on how things unfold. There's always been transitions in entertainment. Movies, to television, to streaming, to what we hope will be content designed and made for your phone, which opens up a whole new way to tell stories. I don't think there will necessarily be winners and losers, I think there will be big winners and good winners. Because there's such a hunger for content.
The other thing I would say is that every business now is a technology business, whether it's the entertainment industry, whether it's agriculture; every single business is a technology business. So I do think companies that focus on what are the trends in technology, what are some of the underlying trends that consumers adopt around technology — that will help them be winners and it will complement their fantastic content.
In your career, particularly with eBay, you had the tall task of getting people to be comfortable with the unfamiliar. You have a similar task here with Quibi. What have you learned about how to do that?
If it's compelling, people do it by themselves. One of the worries about eBay was trust and safety. So we instituted this notion of trust and safety, and the feedback profile was something we did to improve people's confidence buying online. You have to remember, in 1998 people were not buying online. Amazon was a tiny little company and there were just a few ways you could buy online back in the day. Some of it's just time, some of it is features and functionality that you build in that make people feel comfortable. But much of it, often when you're doing something entirely new, it has to get out there, people have to try it, recommend it to their friends, and people have to appreciate what you have to offer. There's no way to make people feel comfortable. It's just giving people the opportunity to try it.
How do you envision our phones changing and the way we interact with them?
The question we ask ourselves is: How can this new way to consume very high quality content on your phone continue to help enable storytellers to tell stories in new ways? The way we think about it is, what does your phone have to offer that we could take advantage of? GPS, gyroscope, camera, touchscreen, easy access to every social network. How can we take this remarkable device that has changed everything in the last 13 or 14 years, and enable storytellers to take advantage of it?
We have started with a couple interactive shows. We've got a dating show coming down the road. We've got Steven Spielberg's After Dark coming. What can we do to utilize this camera? We have a show coming in the next month or two where the horizontal view of what's happening is different than the vertical view. It's two views of the same scene, as opposed to the same view of the same scene, just told with the horizontal or vertical position of your phone. So we're really thinking through, how do we help creators do things that take unique advantage of the phone? That's going to be our focus for the next 12-18 months: what is the next Turnstyle, if you will.
---
Sam Blake covers entertainment and media for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA
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Sam Blake
Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake
https://twitter.com/hisamblake
samblake@dot.la
🛡️Meet the Defense Unicorn That Just Raised $250M to Stop Drone Swarms
11:19 AM | March 07, 2025
🔦 Spotlight
Hello, Happy Friday!
For this week's spotlight story, we're turning our attention to a monumental leap in defense technology achieved by Epirus, a dynamic startup based in Torrance that specializes in groundbreaking anti-drone systems. Recently, Epirus successfully secured a whopping $250 million in Series D funding, raising its total capital to over $550 million and solidifying its status as a unicorn in the defense tech sector.
Image Source: Epirus
At the heart of Epirus’s arsenal is Leonidas, a solid-state, directed energy system named after the fierce Spartan king. As formidable as its namesake suggests, Leonidas stands out by neutralizing unmanned systems and other electronic threats with unmatched precision—a vital capability in today’s digital battlefield where drones are increasingly common. Offering a high-tech shield against potential threats, Leonidas has established Epirus as a key player in modern warfare technology, underscored by significant contracts such as a notable $66 million deal with the U.S. Army in 2023.
Founded in 2018 by a visionary team including Joe Lonsdale, Bo Marr, Max Mednik, Nathan Mintz, Grant Verstandig, and John Tenet, Epirus combines expertise across technology, strategy, and security to push the boundaries of defense innovation. The collective experience and strategic foresight of its founders have propelled the company's rapid growth and technological advancements.
Looking to the future, Epirus plans to utilize this influx of capital to broaden its reach into international and commercial markets, enhance its team, fortify its supply chain, and establish a new training center in Oklahoma to further military preparedness.
This latest round of funding was led by 8VC and Washington Harbour Partners LP, accompanied by a diverse group of new and returning investors, including strategic defense partner General Dynamics Land Systems and seasoned investors like StepStone Group and T. Rowe Price Investment Management, Inc. New stakeholders such as Oppenheimer's Private Market Opportunities Vista VI Fund, NightDragon, Manhattan Venture Partners, Centaurus Capital LP, and Center15 Capital also joined, reflecting robust market confidence in Epirus’s innovative approach and future potential.
Keep an eye on Epirus as it navigates this exciting phase of growth and innovation. With its advanced technologies and strategic expansions, Epirus is not just responding to the challenges of today’s digital battlefield but is also setting the pace for tomorrow’s defense landscape.
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- Mote, a company specializing in carbon-negative energy production, has secured $7M in the initial close of its Series A funding round. The investment was co-led by Nella Next and Preston-Werner Ventures. Mote converts agricultural and forestry waste into clean hydrogen through its Biomass Carbon Removal and Storage (BiCRS) technology, which also sequesters carbon dioxide. The funds will be used to advance its first commercial-scale facility, expand engineering capabilities, and accelerate strategic partnerships in the hydrogen and energy sectors. - learn more
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- ACID Labs, a leader in instant social gaming on messaging platforms, has raised $8M in funding led by a16z GAMES Speedrun and NFX, with participation from Fusion. The funds will be used to accelerate its mission of building viral instant games where people already connect, focusing on creating seamless, social-first gaming experiences. - learn more
- MelodAI, a company specializing in AI-generated content (AIGC) and multimodal AI agent services, has secured a new round of funding led by LF Labs. The funds will be used to advance product development and expand market presence in the Web3 and AI entertainment sectors, enhancing MelodAI's competitiveness in the global AIGC and AI agent service industries. - learn more
LA Venture Funds
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- FirstLook Partners participated in a $25M equity funding round for Flex, a Miami-based fintech company that provides an all-in-one finance platform for business owners. Flex offers services such as business banking, expense management, credit cards, and accounts payable automation. The company plans to use the funds to enhance its AI-driven accounts payable automation and expand its personal finance management services for business owners. - learn more
- B Capital led a $96M equity investment in Odeko, a New York-based all-in-one operations and technology partner for local coffee shops, cafes, and other food and beverage businesses. Including a $30M credit facility from Banc of California, the total funding amounts to $126M. Odeko plans to use the funds to fuel growth through new services and cost savings for customers, acquire businesses to extend its market reach and product offerings, and build out its leadership team. - learn more
- Presight Capital participated in a $2.2M Seed funding round for Needle, an AI-powered search and agent development platform based in San Francisco and Berlin. Needle enables organizations to access and manage data across various internal systems, integrating with tools like Confluence, Slack, Gmail, and Dropbox. The funds will be used to expand the engineering team, enhance core technology, and accelerate go-to-market initiatives. - learn more
- Village Global participated in a $2.8M Pre-seed funding round for Orpheus Ocean, a New Bedford, Massachusetts-based company specializing in deep-sea robotics. Orpheus Ocean develops autonomous underwater vehicles (AUVs) designed to enhance deep ocean and seafloor data collection. The funds will be used to conduct the first commercial demonstrations of their AUV technology, expand their technical team, and grow their fleet to support increased deployments in the coming year. - learn more
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