🛍 Consolidation Begins in Live Shopping with Popshop Live Acquisition

Christian Hetrick

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.

🔦 Spotlight

LA-based Popshop Live, a mobile live shopping marketplace was acquired this week by CommentSold, a Huntsville, Alabama-based live selling technology provider. Never heard of live shopping? Fear not, you are in good company. Less than a third of US adults have heard of live shopping. Prepare to be ahead of the curve. 🎥 🛍️ 💸

Live shopping combines real-time video streaming with e-commerce, enabling viewers to watch product presentations, interact with hosts, and make purchases instantly during the stream - similar to TV-based QVC but online or in an app.

Live shopping is growing quickly in the U.S., but it’s not nearly as popular here as it is in China, where it saw $514 billion in sales in 2022, representing 17% of all e-commerce sales. U.S. live shopping is expected to top $31B this year, representing less than 3% of the overall e-commerce market. Popshop Live was a beneficiary of investors’ hopes that live shopping would grow quickly here to match its penetration in China.

Prior to its acquisition, Popshop Live had raised $24.5 million, most recently at a $100m valuation, from A-list investors including Benchmark, M13, Progression Fund, and many others. Unfortunately for Popshop Live’s investors and team, the company struggled to manage cash in the tougher venture environment of 2022 and 2023, and it doesn’t seem likely the acquisition generated much in terms of financial rewards, though terms were not disclosed.

The good news for creators is that this merger creates a more comprehensive platform that combines CommentSold's SMB-focused e-commerce capabilities with Popshop Live's app-based marketplace and offers creators of all sizes access to a suite of features, including state-of-the-art live streaming software, dropshipping, inventory management, and an easy-to-onboard marketplace.

Popshop Live’s closest competitor, LA-based Whatnot, is the big fish in the U.S. live shopping market. Focused on collectibles like Funko Pop dolls and Pokemon cards, it has raised $485 million from investors like CapitalG, DST Global, Andreessen Horowitz, Redpoint, Y Combinator and others. Whatnot seems to be experiencing none of Popshop Live’s growing pains, as it ranked #9 on the a16z marketplace 100 this year, sitting alongside more established marketplace leaders like Instacart and SeatGeek. In addition to pure-play attempts like Whatnot and Popshop Live, tech giants have dabbled in the space, with Amazon pushing Amazon Live while Instagram Live recently discontinued live shopping after a splashy release in 2020.

With the ups and downs of the last few years, it remains to be seen if live shopping with remain a fairly niche market in the U.S., or if we’ll all be buying our next big purchase from our favorite creators.

🤝 Venture Deals

LA Startups
  • Lex, a months-old AI-powered writing tool raised a $2.75M Seed Round led by True Ventures. - learn more
  • Crate, an AI-powered platform that gives personalized product recommendations raised a $5M Seed Round from MaC Venture Capital, Bessemer Venture Partners, UpFront Ventures and others. - learn more
  • Massdriver, an extendable cloud ops platform, raised an $8M funding round led by Builders VC and joined by 1984 Ventures, YC, Uncorrelated Ventures, Page One Ventures, Soma Capital and Hack VC. - learn more
  • Mosh, a maker of brain health-focused nutritional products, raised a $3M Series A led by Main Street Advisors and joined by Joyance Ventures, The Lab Capital Advisors, Verso Capital and Entrepreneur Ventures. - learn more
  • LighthouseAI, a provider of pharma-supply chain compliance tools, raised a $2.3M Seed Round led by Healthy Ventures and joined by Bertelsmann Next. - learn more
  • Ghost, a B2B marketplace for surplus inventory, raised a $30M Series B led by Cathay Innovation and joined by insiders Union Square Ventures, Equal Ventures and Eniac Ventures. - learn more
  • Jinx, a dog food brand, raised a $17.9M Series B co-led by The Merchant Club and Align Ventures and joined by insiders AF Ventures and Era Ventures, and the Range Group. - learn more
LA Funds

✨Featured Event✨

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.

🚀 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.

🎟️ 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.


📅 LA Tech Calendar

Wednesday, August 30th

Thursday, August 31st

Other events to add to the calendar

🗽 - Free

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

🎧 What We’re Listening To

  • Listen to an engaging conversation between Minnie Ingersoll, Partner at TenOneTen, and Brett Queener, Managing Director at Bonfire Ventures. This insightful interview covers a wide array of topics, ranging from practical operational insights to Queener's unique experiences growing up in diverse countries. - listen here

📙 What We’re Reading

  • Elysian Park Ventures hosted a portfolio company summit at Dodger Stadium - read more
  • 25% of Grindr users are using the app, known for its association with hookups, for networking purposes - read more
  • Federal judge dismisses an inventor’s attempt to copyright artwork produced by AI - read more
  • Newzoo’s report on the global games market is favorable to the numerous video game publishers and developers headquartered in LA - read more

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🏰 Disney's Epic Investment Stands Out Amidst Gaming Industry Layoffs

Christian Hetrick

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.

🔦 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

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!

Venture Waves, Climate Tech Wins, and Silicon Beach's Ongoing Evolution

Christian Hetrick

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.

Anduril Seeks $1.5B in VC Funds

Defense company Anduril Industries Inc., based in Costa Mesa and founded by Palmer Luckey, is seeking to raise $1.5 billion in fresh funds to boost its valuation to $12.5 billion or more, according to sources quoted by The Information. This fundraising effort, if successful, would mark one of the largest venture capital rounds of the year.

Image Source: Anduril

Anduril recently secured a contract to develop and test small unmanned fighter jet prototypes under the Air Force’s Collaborative Combat Aircraft (CCA) program, beating out major defense companies like Boeing, Lockheed Martin, and Northrop Grumman. Alongside General Atomics, Anduril will design, manufacture, and test these aircraft, with a final multibillion-dollar production decision expected in fiscal year 2026. This program aims to deliver at least 1,000 combat aircraft to fly in concert with manned platforms and is part of the Air Force’s Next Generation Air Dominance initiative. Central to Anduril’s success in this contract is the Fury autonomous air vehicle, acquired through the purchase of Blue Force Technologies. This victory underscores Anduril's rapid advancement in the defense sector, aligning with Luckey's vision of building faster and more cost-effective defense assets. - learn more

Los Angeles Ranks Number 1 in Emerging Climate Tech Hub

The 2024 Emerging Climate Tech Hubs Report by Revolution highlights Los Angeles as a burgeoning center for climate tech innovation. LA's growth in this sector is driven by its diverse talent pool, strong research institutions, and a culture of environmental consciousness. The city's unique mix of legacy industries, such as entertainment and aerospace, alongside emerging tech companies, positions it as a pivotal player in the climate tech landscape. This shift reflects a broader trend of decentralized climate tech funding across the U.S., reducing the historical dominance of California's traditional hubs. - learn more

Silicon Beach: Looking Back, Moving Forward

Assessing the overall health of the startup market is challenging, especially as venture capital funding has decreased by an average of 61% from 2021 to 2023 across the top VC markets in the US. Markets with robust ecosystems in AI, SaaS, Biotech, Healthtech, and Fintech appear to be weathering the downturn better than those focused on Consumer and Gaming industries, areas where Los Angeles traditionally excels.

Percent Change In VC Funding By Region

CB Insights

LA Times paints a rather bleak outlook on the Los Angeles tech scene noting venture capital funding in Greater Los Angeles plummeted 73% from 2021 to 2022. Silicon Beach, once a vibrant tech corridor, currently faces high vacancy rates and lacks late-stage financiers, especially in the AI sector. However, there are positive signs, including growth in aerospace startups and increased venture capital investment in early 2024, suggesting a potential rebound for LA's tech ecosystem.

While LA may not be exceeding expectations during this period, its tech ecosystem warrants a nuanced evaluation, given the broader market dynamics and its strong performance in specific sectors. Reach out to us with your thoughts.

🚀 SpaceX gears up for another stellar year, active raises, and more

Christian Hetrick

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.

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:

🤝 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

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

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