šŸŽ® Riot Games' Valorant Finals Are Another Jewel In LA's Gaming Crown

Wil Chockley
WIl Chockley is a partner at 75 & Sunny, where he evaluates potential investment opportunities across sectors and works with founders to build their strategy and execute on their vision.
šŸŽ® Riot Games' Valorant Finals Are Another Jewel In LA's Gaming Crown
Photo courtesy of Riot Games

šŸ”¦ Spotlight

šŸŽ®šŸ’„šŸ”« ā€œUSA, USA, USA!ā€ If you wandered into the Kia Forum this past Saturday and listened to the cheers, you might have thought you had stumbled into a secret Olympic Games, and honestly youā€™d kind of be right.

That not-so-secret Olympics was the Valorant Champions Tour Grand Final, hosted by LA-based gaming giant Riot Games.

I was lucky enough to attend, and, as I sat in the sold-out crowd of 11,500 screaming fans, watching (real) fire erupt from the stage and (CGI) explosions and gunshots flash on the jumbotrons, I felt like a kid on his first day at a new school. Everyone around me seemed to know exactly what to do, and I was just sitting there, confused and overwhelmed, looking exactly like this emoji ā†’ šŸ˜®

For those of you not familiar with Valorant, itā€™s a first person shooter game (Ć” la Call of Duty) where two teams of five compete to shoot each other or finish various tasks while avoiding being shot by the other team (sorry to all of the Valorant fans out there for butchering this description). Last month, more than 20 million people played the game, and over a million fans tuned in online to watch the Championship Finals live, according to Riot. While those numbers are obviously huge, Valorant is tiny compared to Riotā€™s flagship game League of Legends, which counted over 150 million players last month.

So why the ā€œUSA, USA, USA!ā€ chant? For the same reason traditional pro sports teams are built around cities. People love cheering for the home team. Riot has organized the professional Valorant league (Valorant Champions Tour or VCT) into regional teams. Saturdayā€™s eventual champion was the North American team, Evil Geniuses - an underdog who triumphed against the heavily favored Southeast Asian Paper Rex team. Fans couldnā€™t get enough of both sides, though ā€œEGā€ was the definitely a little more hometown love.

These fans didnā€™t just come for the 3+ hour actual competition, though. Attendees started showing up more than four hours before the Grand Finals started, hanging out in the baking hot parking lot at the Riot-organized ā€œFan Festā€ before watching the wildly impressive opening musical acts performing Riot-created music from the Valorant game. It was, dare I say it? A Riot of a good time.

So what does this all meanā€¦

This competition is living proof of how gaming is now the largest category in entertainment, and itā€™s not even close. The industryā€™s estimated $192B in 2022 revenue is double the size of the TV and movie businesses, and more than 7x the size of the music industry.

It also demonstrates the strength of gaming as one of LAā€™s core tech sectors. Riot is an LA company, through and through. It was born out of founders Brandon Beck and Marc Merrillā€™s USC dorm room, opened its first office in Santa Monica in 2006, and maintains its headquarters on Olympic Blvd in West LA to this day. For more evidence of LAā€™s gaming prowess, look no further than our Around the Internet section below. šŸ˜Ž

šŸ¤ Venture Deals

LA Startups

  • LA-based Trellis, a provider of state trial court data, raised $15m in Series B funding led by Top Tier Capital Partners, with participation from Okapi Ventures, Calibrate Ventures, Craft Ventures, Revel Partners and Sky Dayton - learn more
LA VCs
  • MFast, a financial services distribution network, raised a $6M Series A led by LA-based Wavemaker Partners, with participation from Krungsri Innovate, Headline Asia and insiders Do Ventures, JAFCO Asia and Ascend Vietnam Ventures - learn more
  • Pi-xcels, a startup that manufactures an NFC-enabled point of sale device that can issue interactive e-receipts, raised a $1.7M Seed Round led by LA-based Wavemaker Partners, and joined by Hustle Fund, Amand Ventures, and Black Kite Capital - learn more
  • TeamSense, a platform that helps manufacturers manage the attendance of their deskless workers, raised a $4M Seed Round led by LA-based Bonfire Ventures, with additional funds provided by Operator Collective - learn more
New LA Funds
  • Black Ostrich Ventures, an LA-based venture capital firm, has launched a $20 million pre-seed and seed stage fund to support African founders to grow their businesses in the cleantech, supply chain, ag-tech, and edtech sectors. The newly created firm says it will mainly support startups in Tanzania, Zambia, Morocco and Uganda, with check sizes ranging from $50,000 to $200,000. - learn more

āš’ļø Open Roles

Operations Associate @ Techstars Space Accelerator

Techstars Space Accelerator is hiring a Los Angeles based Operations Associate. This role is responsible for the administrative duties and operational execution throughout the duration of the accelerator program. Logistics experience as well as familiarity with the early stage venture backed company ecosystem is preferred. A willingness to learn and comfort tackling new problems is a must.

Itā€™s a chance to get amazing experience, broaden your network in ways you could never imagine, get exposure to some of the greatest up and coming companies and teams in the country. Historically, most associates end up being employed by one of the teams or by someone they met during the span of the three months. Many also go on to build their own companies. Apply directly here.

āœØFeatured EventāœØ

Plug In South LA is hosing its Accelerator Cohort 4 Founder Showcase on September 14th.

Hosted by our friends at Plug In, this event will showcase Early Stage Black and Brown Founders rolling out new service and platform solutions in Digital Health/Healthcare Tech, FinTech, Digital Media, PropTech, and EdTech.

šŸš€ For Early Stage Investors looking to diversify their portfolios with high-potential companies led by Black and Brown Entrepreneurs, this showcase is a must-attend. We also extend a warm welcome to the LA Tech community, including LPs, Corporate Executives & Foundations, and Family Offices.

šŸŽŸļø Secure your spot now and immerse yourself in a night of innovation, inspiration, and boundless opportunities. Register for the Plug In Accelerator Cohort 4 Founder Showcase here.


šŸ“… LA Tech Calendar

Tuesday, September 5th

  • Tacos and Tech šŸ—½ - ScaleHealthā€™s monthly happy hour for tech and healthcare innovators.

Thursday, September 7th

Other events to add to the calendar

šŸ—½ - Free

šŸŒ Around The Internet

Over the past few years, there has been a shift in startup dynamics that has resulted in a dispersion of funding across the country. This geographical redistribution of seed investments mirrors the evolving landscape of venture capital, propelled by trends such as remote work and the strength of emerging startup ecosystems.

Unsurprisingly the Bay Area stands as the preeminent force in startup funding taking the top spot for capital invested in 7 of the 10 verticals listed below. That being said Los Angeles had a strong showing in the first half of 2023 and dominated the gaming vertical. Total capital raised by gaming companies based in Los Angeles during in the first half of 2023 was nearly $85M, more than 4X the next leading market, Dallas/Fort Worth. šŸŽ®šŸ‘¾šŸ•¹ļø

Read More

Source: Carta

šŸ“™ What Weā€™re Reading

  • SEC Settles First NFT Enforcement Action, Against Media Company Impact Theory. - read more
  • Completion of the $2 billion automated people mover project at Los Angeles International Airport has been pushed back to fall of next year. - read more
šŸˆSnapchatā€™s Super Bowl Push & Appleā€™s New App šŸ“²ā€”Hereā€™s Whatā€™s New

šŸ”¦ Spotlight

Hello, Los Angeles!

With Super Bowl LIX coming up this Sunday, the buzz isnā€™t just about the Chiefs vs. Eagles matchupā€”itā€™s also about how tech is shaping the experience. From Snapchatā€™s interactive game-day features to Appleā€™s latest product launch, thereā€™s plenty happening beyond the field.

Snapchatā€™s Super Bowl Features

If you're watching the game, chances are youā€™ll be on your phone just as much as your TV. This year, Snapchat is rolling out AR Lenses, live score updates, and Spotlight challenges to make game day more interactive. Want to try on your teamā€™s jersey? Thereā€™s a Lens for that. Need real-time updates? Snap has them covered. Attending the game in New Orleans? Live Location can help you track down friends in the crowd. As the second-screen experience becomes more ingrained in live sports, Snap is making sure itā€™s front and center.

Snapā€™s New Initiative: The Department of Angels

Super Bowl Sunday is about competition, but what happens when the challenge isnā€™t on the field? Yesterday, Snap announcedĀ The Department of Angels, a new initiative aimed at supporting communities recovering from disasters, offering independent funding and resources to help them rebuild on their own terms. Backed by $10 million from Snap Inc., Evan Spiegel, Bobby Murphy, and the California Community Foundation, the program shifts away from traditional corporate donations and toward grassroots, community-led recovery efforts. Could this be a model for how tech companies engage with real-world crises in the future?

Apple Wants to Change How You Send Invites

Apple is stepping into the event invite space with Apple Invites, a new app designed to make organizing gatherings simpler. Competing with platforms like Partiful and Evite, Appleā€™s version integrates directly into iMessage and Apple Calendar, making it an easy, built-in option for Apple users. With so many invite platforms out there, will Appleā€™s streamlined approach become the go-to for iPhone users, or will it simply be another tool in the mix?

Where to Watch Super Bowl LIX

The Chiefs and Eagles face off this Sunday at 3:30 PM PT on FOX. Hereā€™s a helpful link to directly access ways to watch. You can stream the game for free on Tubi, or catch it on YouTube TV, Hulu + Live TV, NFL+, and fuboTV. And of course, weā€™ll be watching to see which brandsā€”including tech giantsā€”deliver the most memorable ads of the night.

Between Snapā€™s game-day integrations, its push to support community-led recovery, and Appleā€™s move into digital invites, this week is full of shifts in how we connect. Which of these will redefine the way we interact? Weā€™ll be watching.

šŸ¤ Venture Deals

LA Companies

  • Musical AI, a company specializing in rights management for generative AI music, has raised a $1.5M seed funding round led by Build Ventures. The investment will support the development of Musical AI's attribution model, which analyzes tracks to determine the contribution of various data sources in AI-generated music. This enables rightsholders to monitor and manage the use of their works, while providing generative AI companies with access to quality licensed data and detailed usage reports. - learn more

LA Venture Funds
  • Fika Ventures participated in a $16M Series A funding round for Ivo, a San Francisco-based AI-powered contract review platform, bringing its total funding to $22.2M. The company plans to use the funds to scale its AI-driven contract review solutions and has launched the Ivo Search Agent to enhance contract search and analysis capabilities. - learn more
  • Freeflow Ventures participated in a $7M seed funding round for Miist Therapeutics, a Bay Area-based company specializing in physics-based inhaled medicines. Miist plans to use the funds to advance its two lead programs: MST-01 for smoking addiction and MST-02 for migraine treatment. Their proprietary inhaler delivers sterile aqueous drug particles to the peripheral lung, achieving rapid absorption and symptom relief. - learn more
  • Fiore Ventures participated in a $9.5M strategic funding round for Little Otter, a digital mental health care provider specializing in whole-family services. The company plans to use the funds to expand its services to reach millions of families covered by Medicaid and commercial insurance plans, leveraging an AI-powered platform to enhance patient triage and personalized care. - learn more
  • Arca participated in a $13.5M Series A funding round for Beamable, a company specializing in providing live game services for game developers. The funds will be used to expand Beamable's decentralized gaming infrastructure and enhance its platform offerings. - learn more
  • Village Global participated in an $8M seed funding round for Desteia, a company leveraging AI and graph theory to address supply chain disruptions. The funds will be used to enhance Desteia's technology and expand its market reach. - learn more
  • TI Capital and QBIT Capital co-led a $7.5M Series A funding round for Largo.ai, a company specializing in AI-driven solutions for the film industry. The funds will be used to enhance Largo.ai's AI-powered platform and expand its market presence. - learn more
  • Strong Ventures participated in a ā‚©3.5 billion (approximately $2.9M) funding round for Class101, a South Korea-based all-in-one creator content platform. The company plans to use the funds to enhance its 'Creator Home' service, recruit top creators in fields such as economics, side jobs, art, crafts, and careers, and expand corporate subscription services for employee education and welfare. - learn more
  • Village Global participated in a $4M Seed funding round for Perspective AI, a Palo Alto, California-based company specializing in AI-mediated customer conversations. The funds will be used to expand operations and development efforts. - learn more

      LA Exits

      • SpringboardVR, a provider of virtual reality (VR) venue management software and a leading content marketplace for location-based entertainment, has been acquired by SynthesisVR. Previously owned by Vertigo Games, SpringboardVR is known for its platform that enables VR arcade operators to manage content licensing and operations efficiently. With this acquisition, SynthesisVR aims to enhance its offerings for VR arcades and developers, supporting the growth and innovation of the VR industry. - learn more
      • Generation Genius, an educational streaming platform that provides K-8 science and math videos, activities, and lessons, has been acquired by Newsela to enhance its instructional content and strengthen real-world connections in science and math education. - learn more

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        AI Dominates the Headlines, but Defense Tech Is Gaining Speed

        šŸ”¦ Spotlight

        Hello, Los Angeles!

        This week, DeepSeekAI has been dominating the tech conversation. The Chinese AI startupā€™s chatbot app surged to the No. 1 spot on the App Store, drawing both excitement and scrutiny. Supporters see its open-weight model as a potential game-changer, offering developers more flexibility compared to closed AI systems like OpenAIā€™s. But the rapid rise has also raised questions about security, data governance, and global AI competition. Whether DeepSeek will be a long-term disruptor or just a momentary sensation remains to be seen, but one thing is clearā€”AI remains the tech industryā€™s driving force.

        But while AI continues to dominate headlines, another sector is quietly making wavesā€”defense technology. And one LA-based startup just secured a major endorsement from investors and the U.S. government.

        Castelionā€™s Hypersonic Betā€”Can It Outrun the Defense Industryā€™s Red Tape?

        Image Source: Castelion

        El Segundo-based Castelionjust raised$100 million to accelerate its mission to build hypersonic weapons faster, cheaper, and at scale. The financingā€”$70 million in equity (led by Lightspeed Venture Partners with participation from a16z, Lavrock Ventures, Cantos, First In, BlueYard Capital, and Interlagos) and $30 million in venture debt (from Silicon Valley Bank)ā€”is the latest sign that venture capital sees national security startups as a high-growth opportunity.

        Unlike traditional defense contractors, Castelion is operating like a fast-moving startup, not a slow-moving government supplier. Founded by former SpaceX engineers, the company is applying an iterative, test-heavy approach to building long-range hypersonic strike weaponsā€”which travel at speeds exceeding Mach 5 (3,800+ mph) and are designed to evade modern missile defenses.

        Not Just VC-Backedā€”The U.S. Military is Betting on Castelion Too

        While the $100 million raise is a major milestone, Castelion already has funded contracts with the U.S. Navy, U.S. Air Force, and U.S. Army. These contracts are focused on hypersonic technology development and scaled manufacturing, areas where the military has struggled to move quickly due to bureaucratic delays and reliance on traditional defense giants.

        To prove it can execute, Castelion recently successfully launched a low-cost ballistic missile from a self-built launcher in Mojave. Now, with both government contracts and venture capital behind it, the company is pushing forward on more flight tests and building out its scaled production capabilities.

        Image Source: Castelion - Castelion launches a missile prototype in Mojave, CA

        With rising geopolitical tensions and an increasing focus on faster, cost-effective deterrence, Castelion is positioning itself as a new kind of defense playerā€”one that moves at startup speed. Whether it can sustain that pace while navigating the complexities of government procurement remains to be seen, but one thing is clear: the future of defense tech isnā€™t just about who can build the best weaponsā€”itā€™s about who can build them fast enough.


        šŸ¤ Venture Deals

        LA Companies

        • Omnitron Sensors, a Los Angeles-based pioneer in microelectromechanical systems (MEMS) fabrication technology, has secured over $13M in a Series A funding round led by Corriente Advisors, LLC, with participation from L'ATTITUDE Ventures. The company plans to use the funds to expand its engineering and operations teams and accelerate the mass production of its first product, a reliable and affordable MEMS step-scanning mirror designed for various applications, including AI data centers, advanced driver assistance systems (ADAS), drones, extended reality (XR) headsets, and toxic gas-detection systems. - learn more
        • Camouflet, a Los Angeles-based technology company specializing in AI-driven dynamic pricing solutions, has secured a $12M Series A funding round led by QVM. The company plans to utilize the proceeds to scale its platform across various industries, expand into international markets, and enhance its technology and team to better serve its clients. - learn more
        LA Venture Funds
        • Clocktower Ventures participated in a $6.2M Seed funding round for Foyer, a New York-based fintech startup that assists individuals in saving for home purchases. The funds will be used to enhance Foyer's platform and expand its user base. - learn more
        • Smash Capital participated in ElevenLabs' $180M Series C funding round, bringing the company's valuation to $3.3 billion. Based in New York, ElevenLabs specializes in AI-powered text-to-speech and voice cloning technology. The newly secured funds will be used to enhance its AI audio platform and expand its global presence. - learn more
        • March Capital participated in a $25M Series C funding round for SuperOps to support the company's efforts in advancing AI research and development, expanding offerings for mid-market and enterprise managed service providers (MSPs), and scaling its global presence. Additionally, SuperOps is launching an AI-powered Endpoint Management tool to enhance IT team productivity. - learn more
        • Cedars-Sinai participated in a $2M funding round for Neu Health to support its AI-driven neurology care platform for conditions like Parkinsonā€™s disease and dementia. Originating from the University of Oxford, Neu Health will use the funds to enter the U.S. market, beginning with a six-month pilot program at Cedars-Sinai focused on improving neurology patient care. - learn more
        • Chapter One Ventures participated in a $2.8M seed funding round for Mevvy, a blockchain startup aiming to democratize Maximal Extractable Value (MEV) trading by simplifying access and reducing technical complexities. The funds will be used to further develop Mevvy's platform, expand its user base, and enhance its offerings. - learn more

          LA Exits

          • Kona, an AI-powered assistant and coach for remote managers, has been acquired by 15Five, a performance management platform. Founded in 2019, Kona integrates with virtual meeting platforms like Zoom and Google Meet to provide tailored coaching and enablement for remote managers. The acquisition aims to enhance 15Five's offerings by incorporating Kona's capabilities to improve manager effectiveness within existing workflows. - learn more

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            Can Technology Outpace Wildfires?

            šŸ”¦ Spotlight

            Hello, LA!

            This week, tech headlines are buzzing with OpenAI's launch of Operator, a tool that promises to transform task automation, and TikTokā€™s major outage, which left millions disconnected. But closer to home, as wildfires blaze across Southern California, survival has become the focusā€”and technology is making it possible.

            When the plume of smoke reappeared on the horizon, residents across Southern California turned to tools like Watch Duty. Over the past week, as flames surged, the app gained 600,000 new users in just one night, delivering critical, real-time information to help residents stay ahead of danger. Watch Duty, designed to provide wildfire updates, has proven to be much more than an alert system. Itā€™s a lifeline.

            The app integrates live data, satellite imagery, and community reports to send updates directly to users. Information includes fire locations, evacuation orders, and air quality indices, empowering quick, informed decisions. Its community-driven ethosā€”with contributions from locals, firefighters, and volunteersā€”ensures hyper-local and timely updates, filling gaps where traditional news outlets often fall short.

            Image Source: Watch Duty

            A New Era of Fire Alerts

            Watch Duty redefines wildfire preparedness through technology and collaboration:

            • Fire Detection: Monitors data from satellites, agencies, and ground sources to identify wildfires.
            • Data Verification: A team of experts ensures reported activity is accurate.
            • Real-Time Alerts: Notifications are sent within 60 seconds of detection.
            • Community Contributions: Local residents provide photos and updates.
            • User Notifications: Alerts include fire size, location, and evacuation details.

            These features make Watch Duty an indispensable tool during wildfire season. In 2024, the app processed over 2 million alerts and supported 50,000 evacuations, with plans to expand predictive modeling by 2025 to anticipate threats before they escalate.

            Innovations Reshaping Wildfire Management

            Early Detection Leaders:

            • AlertCalifornia: Operates over 1,000 cameras with machine learning to monitor high-risk areas.
            • Pano AI: Uses cameras and sensors to detect smoke and alert responders.
            • Torch Sensors: Deploys heat-detection sensors to identify anomalies early.

            Image Source: Torch Sensors

            Predictive and Analytical Pioneers:

            • Chooch AI: Employs drones and computer vision to monitor fire hazards.
            • Data Blanket: Uses analytics to forecast fire behavior and assist evacuations.
            • Rain: Leverages advanced atmospheric sensing and AI-driven technology to provide precise fire detection and tracking. Its real-time data on fire weather conditions and environmental factors helps agencies anticipate and respond to wildfires with greater efficiency.
            • SCEPTER: Tracks air quality and wildfire emissions using AI and satellite data.

            Image Source: Rain

            A Vision for the Future

            As Los Angeles continues to adapt to the realities of a changing climate, tools like Watch Duty, Pano AI, and AlertCalifornia are proving to be invaluable. These technologies are not just reactive measures; they represent a shift toward proactive disaster preparedness. The question now isnā€™t whether technology can help but how much more it can achieve in the years to come.

            With the integration of predictive modeling, AI, and real-time data, thereā€™s hope for a future where wildfires are no longer unpredictable forces of destruction. Imagine every household equipped with predictive wildfire maps, heat-detecting drones, and AI-driven tools to guide safety decisions. The innovations are hereā€”it's up to us to support and scale them to ensure they reach the communities that need them most. Which company, which app, or which breakthrough will emerge as the next lifeline? The possibilities for a safer, more prepared Los Angeles feel closer than ever.

            šŸ¤ Venture Deals

            LA Companies

            • Favorited, a new livestream app positioning itself as an alternative to TikTok, has raised a $1.3M Pre-Seed from HF0, Soma Ventures, and several angel investors from the entertainment and social space. The platform, which participated in the a16z Speedrun accelerator program, offers features like streaks and leaderboards to boost user engagement. Favorited plans to use the funds to enhance its app's functionalities and expand its user base. - learn more
            LA Venture Funds
            • Overture VC participated in a $12M Series A funding round for Bedrock Energy, an Austin, Texas-based startup specializing in geothermal heating and cooling systems. Bedrock Energy plans to use the funds to advance its geothermal technologies and expand deployments in Colorado, Utah, and neighboring states. - learn more
            • Navigate Ventures LLC participated in a $7.2M Series A funding round for XILO, a San Diego-based insurance technology startup that provides a quoting and sales automation platform to help independent insurance agencies convert the next generation of insurance shoppers; the funds will be used to scale operations, manufacturing, and commercial efforts for its acne products. - learn more
            • Upfront Ventures participated in a $5.25M Seed funding round for 1up.ai, a New York-based company that automates knowledge for sales teams; the funds will be used to empower their growing customer base, including industry leaders like WalkMe, Gladly, and Deliveroo. - learn more
            • MTech Capital participated in a $2.2M Pre-Seed funding round for Qumis, a Chicago-based AI platform designed to transform insurance knowledge work; the funds will be used to scale its AI capabilities, accelerate product development, and expand its customer base. - learn more
            • Amboy Street Ventures participated in a SEK 304M Series B funding round for Gesynta Pharma, a Stockholm-based pharmaceutical company specializing in anti-inflammatory and pain-relief treatments, with the funds directed toward advancing a Phase II clinical trial of their lead candidate, vipoglanstat, for endometriosis. - learn more

            LA Exits

            • Bandy Manufacturing, a Los Angeles-based provider of aerospace fasteners and components, has been acquired by Novaria Group to enhance its portfolio and expand its capabilities in the aerospace and defense industries. - learn more
            • Pangea, a company specializing in eco-friendly and sustainable products with a focus on innovative technology solutions, is being acquired by Nature's Miracle Holding Inc. to accelerate growth and capitalize on synergies in sustainability and tech-driven product development. - learn more
            • Notisphere, a healthcare communication platform streamlining recall and alert management, has been acquired by Par Excellence Systems to enhance its capabilities in delivering efficient supply chain solutions for the healthcare industry. - learn more
            • Cryogenic Machinery Corp., a North Hollywood, California-based manufacturer specializing in cryogenic pumps for industrial gas and energy applications, has been acquired by PSG, a Dover company, to enhance PSG's portfolio of specialized fluid handling solutions. - learn more

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