🔦 Spotlight

In the midst of widespread gaming industry layoffs, a glimmer of positive news emerges as Disney announces a significant move: a $1.5 billion investment in Epic Games. 🏰💰🐭

Image Source: Disney

Disney's $1.5 billion investment in Epic Games, disclosed late Wednesday, signals a strategic alignment aimed at expanding the success of "Fortnite." The deal enhances Epic's growth prospects after financial setbacks, including layoffs, and strengthens the partnership between the two companies. With Disney gaining a larger equity stake in Epic, the collaboration will broaden the integration of beloved Disney franchises like Marvel, Star Wars, Pixar, and Avatar into the game, potentially boosting its appeal and longevity. This significant investment underscores Disney's commitment to interactive entertainment and signifies a shift towards games as a primary revenue stream, aligning with the growing trend of digital engagement among younger demographics. Moreover, the potential for crossover sales of physical Disney products within "Fortnite" and the exploration of new content distribution channels are just some of the opportunities arising from this partnership.

For LA tech, the Disney-Epic Games partnership represents a validation of the region's burgeoning tech and gaming ecosystem. The substantial investment in Epic, who maintains a large Los Angeles office with 1,000+ employees (according to LinkedIn), reflects confidence in the LA’s talent pool and innovation potential. Additionally, this partnership between two industry giants fosters an environment for further collaboration, investment, and growth within LA's tech sector. As Disney and Epic Games deepen their ties and explore new avenues for content integration and distribution, it not only elevates the prominence of LA as a tech hub but also stimulates economic growth and job creation in the region. This partnership highlights LA's unique position as a hub where technology and entertainment converge. With its ability to integrate diverse industries, LA is driving innovation and expansion in digital entertainment. 🚀💸🎮

🤝 Venture Deals

LA Companies

• ProducePay, a financing and marketplace platform for the fresh produce market, raised a $38M Series D led by Syngenta Group Ventures joined by Commonfund, Highgate Private Equity, G2 Venture Partners, Anterra Capital, Astanor Ventures, Endeavor8, Avenue Venture Opportunities, Avenue Sustainable Solutions, and Red Bear Angels. - learn more
• Blush, an invite-only dating app that drives users to local businesses on dates, raised a $7M Seed Round from individuals like Naval Ravikant. - learn more
• Mogul, a startup founded last year that provides an overview of an artist's royalty earnings and identifies areas where money is owed but has not yet been collected, raised a $1.9 million seed round from Wonder Ventures, United Talent Agency, AmplifyLA, and Creator Partners. - learn more
• Avnos, a hybrid direct air capture startup, raised a $36M Series A led by NextEra Energy and joined by Safran Corporate Ventures, Shell Ventures, Envisioning Partners, and Rusheen Capital Management. - learn more
• AI.fashion, startup whose mission is to help retailers enhance the online shopping experience by providing consumers with virtual try-ons and personalized fashion recommendations, raised a $3.6M Seed Round led by Neo. - learn more
• Suma Wealth, startup that aims to demystify financial topics and provide culturally relevant content, virtual experiences, and resources to help Latino users navigate financial challenges and opportunities, raised a $2.2M Seed Round . Radicle Impact led, and was joined by Vamos Ventures, OVO fund and the American Heart Association Impact Fund. - learn more
• 222, a startup that helps users discover their city and meet new people through unique social experiences, raised a $2.5M Seed Round. Investors included 1517 Fund, General Catalyst, Best Nights VC, Scrum Ventures, and Upfront Ventures. - learn more
• LimaCharlie, a security operations cloud platform, raised a $10.2M Series A led by Sands Capital. - learn more
• Polycam, an app that uses a smartphone’s sensors to capture 3D scans of objects, raised an $18M Series A co-led by Left Lane Capital and Adjacent, and joined by Adobe Ventures and individuals like Chad Hurley and Shaun Maguire. -learn more.

LA Venture Funds

• M13 co-led a $6.5M Seed Round for Code, a micropayments startup building upon the kin (KIN) cryptocurrency. - learn more
• Wonder Ventures has garnered $102 million in fresh capital commitments. - learn more

Actively Raising

• ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
• CZero, a startup building software to decarbonize logistics for logistics businesses and goods business through a vetted marketplace and optimization software. - learn more
• Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
• Sweetie, a marketplace to help people plan date nights, is raising a $1.5M Pre Seed Round. - learn more
• StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

Happy Friday Los Angeles! You made it through the first week of 2024!

🔦 Spotlight

Elon Musk may be a divisive (albeit entertaining) figure, but the continued success of SpaceX is pivotal for the aerospace industry in Los Angeles and more broadly around the world.

Image Source: SpaceX webcast

What happened with SpaceX in 2023?

• Elon Musk challenged Facebook founder, Mark Zuckerberg to a cage fight.
• SpaceX launched 96 successful missions with its Falcon series of rockets, a 57% increase over its previous annual record.
• SpaceX conducted two test flights of the largest and most powerful rocket ever built, Starship.
• Roughly two-thirds of SpaceX's launches in 2023 were devoted to building out Starlink, the company's satellite-internet megaconstellation.
• Isaacson’s Elon Musk biography was published in September including everything from Musk’s tumultuous relationship with his father to his work ethic and “demon mode”.

Moving forward what can we expect from SpaceX and its controversial founder? Continued innovation pushing the aerospace industry to new limits? Yes. More drama? Without a doubt.

Here is some of what is to come in 2024:

• SpaceX has already deployed direct-to-smartphone satellites in its first launch of 2024.
• Bill Gerstenmaier, SpaceX's vice president of build and flight reliability, announced that they are looking to increase flight rate to 144 flights during 2024.
• SpaceX will launch 5 astronaut missions in 2024 if everything goes to plan.
• Starlink will continue to build out the company’s satellite-internet megaconstellation in 2024 as they have permission to deploy double the current number of satellites in orbit.
• SpaceX is working to get other Starship vehicles ready, in keeping with the company's development philosophy, which prioritizes frequent test flights and rapid iteration.
• SpaceX is facing a complaint issued by a regional office of the National Labor Relations Board, for illegally firing employees in 2022 for circulating a letter critical of the company’s founder and chief executive, Elon Musk.

🤝 Venture Deals

Just Announced

Check back next week!

LA Exits

• CG Oncology, an Irvine, CA-based developer of immunotherapies for bladder cancer, filed for a $100M IPO. It plans to list on the Nasdaq (CGON) with Morgan Stanley as left lead underwriter, and has raised around $317m in VC funding. - learn more
• McNally Capital agreed to sell Advanced Micro Instruments, a Costa Mesa, CA-based maker of gas analyzers and sensing technologies, to Enpro (NYSE: NPO). - learn more

Actively Raising

• ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
• CZero, a hard-tech startup that is developing a technology for decarbonizing natural gas, is raising a $1.5M Seed Round. - learn more
• Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
• Sweetie, a marketplace to help people plan date nights, is raising a $250K Angel Round. - learn more
• StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

📅 LA Tech Calendar

Sunday, January 7th

• LA Coffee Club x Popl - "Networking Gone Wild" Mansion Party & Panel - Join 310 Coffee Club for a panel discussion and networking in Beverly Hills. The panel will be discussing "Networking Tactics to 2x your Potential" with founders & CEOs including Jason Alvarez-Cohen of Popl, Nathan Green of Kin, Rory Garton-Smith of Checkmate, Christina Galbato of Create Her Empire, and Casey Adams ofListener.com!

Wednesday, January 10th

• Startup Cafe: Networking with a Kick - Entrepreneurs, Startups, and Tech Enthusiasts join together to meet and connect with like-minded people, industry professionals and investors, while enjoying a nice cup of coffee in Venice at The KINN. This week’s interactive discussion about AI’s evolution in entertainment will feature Dr. Sam Khoze and Rachel Joy Victor.
• Venice Tech Happy Hour- Join Startup Coil and FoundrHaus Wednesday evening and enjoy the sunset from the rooftop, grab a bite overlooking Abbot Kinney, and mingle with other tech enthusiasts and entrepreneurs by the bar on the patio.

Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!

📙 What We’re Reading

• Tune in to TenOneTen Partner Minnie Ingersoll’s conversation with Josh Porter, co-founder of FirstLook Partners. Josh explains why he thinks smaller funds make the best investment opportunities. He has seen hundreds of decks and digs in on how to evaluate funds and his unique approach to co-investments. - listen here
• Fisker will add dealerships to EV sales model. - learn more
• 4 Predictions for AI in 2024. - learn more

Image Source: UCLA Health

Skeptics once doubted the feasibility of a high-speed rail connecting LA to Las Vegas, but now it's becoming a reality. Perhaps all it takes is the right team to turn the improbable into the possible.

LA County has invested millions to establish itself as a biotech hub, including funding the nonprofit BioscienceLA and its BioFutures program. The county's investments have also created a supportive infrastructure with initiatives like the 20,000-square-foot BioscienceLA office in Culver City, generating significant economic activity and jobs. However, despite these efforts, LA has remained a secondary market for biotech and life sciences due to geographic sprawl and limited supply of life science/biotech space, even though the region boasts significant life science talent.

Life Science Degree Completions by Vacancy Comparison

Cushman & Wakefield

A leading figure in the biotech scene in Los Angeles is the impressive biotech entrepreneur, Arie Belldegrun. Belldegrun has played a significant role in the successful exits of Agensys, Cougar Biotechnology, and Kite Pharma, which collectively sold for $13.4 billion. An Israeli-born urologist and immunology researcher, Belldegrun has been instrumental in building the biotech sector in Los Angeles. Utilizing proceeds from these exits, he established Bellco Capital, which primarily invests in life science and real estate companies, and co-founded several biotech-focused funds and ventures.

Belldegrun's efforts have culminated in the creation of the California Institute for Immunology and Immunotherapy at the former Westside Pavilion in Westwood, in collaboration with other prominent figures and philanthropists. The 700,000-square-foot property, acquired at the end of 2023, will also house the UCLA Center for Quantum Science & Engineering. “The goal is to build the immunology equivalent of Silicon Valley in Los Angeles,” says UCLA Health CEO John Mazziotta, MD, PhD. The center will hold its own patents and will eventually foster new biotech startups through its incubator and accelerator programs. The initiative has secured $500 million in state funding and plans to raise an additional $1 billion, positioning Los Angeles to become a leading biotech hub alongside regions like the Bay Area, San Diego, and Boston. Despite challenges posed by the city's geographic sprawl, these combined efforts by leaders like Belldegrun and county programs are transforming LA's biotech landscape, fostering a thriving environment for future scientific and commercial successes.