
Get in the KNOW
on LA Startups & Tech
XCan WeHo-Based Wheels Get More Underserved Angelenos to Ride E-Bikes?
When Los Angeles launched its micromobility pilot in 2019, it had big dreams for improving transportation equity for all Angelenos.
Three years later, less than 3,000 people make use of micromobility programs aimed at helping poorer sections of the city, despite stringent requirements on companies to provide these options and programs to help raise awareness. At issue, experts said, is a patchwork of rules and regulations between municipalities that can be a logistical headache for riders, infrastructure that doesn’t offer much protection for scooter and bike riders in these areas and a public outreach campaign that has failed to gain traction.
“It's a big challenge because when you drive your car, for example, people don't pay attention to municipal boundaries. They just want to get from point A to point B in the most seamless way possible,” said Will Sowers, director of public affairs at Wheels.
Wheels Director of Public Affairs Will Sowers.
Image courtesy of Wheels
While each city has its own equity requirements, the city of L.A. established its current program in 2021. Any operator deploying vehicles in special operation zones (including Venice, Hollywood and Downtown) is required to deploy 20% of its fleet in equity zones. There is no trip fee for rides that begin or end in these zones. The city also requires operators to offer a low-income option for riders, attend meetings with neighborhood councils and other local stakeholders, provide a non-credit-card and non-smartphone option for payment and partner with a community-based organization.
But those efforts haven't made as much an impact as the city might have hoped.
As of October 2021 there were 2,915 active users enrolled in low-income programs across all operators, according to information provided by L.A.’s Department of Transportation. That’s just 17 more riders than the city reported a year and a half earlier–in a report which also noted that 85% of users did not know that equity programs were available.
Riders in L.A.’s underserved neighborhoods use micromobility differently than those in more affluent areas, according to Sowers. While a rider in Venice might ride to the beach or to a restaurant, riders in underserved areas often use e-scooters as a way to get from a transit stop to work and vice versa.
“We've even seen examples of people using our device as a courier,” he added, “where they may — with one of many delivery apps — grab a short shift.”
Wheels Plan to Go Further
Wheels is trying something different. The company has made an effort to design its scooter for the way that lower-income riders use them, and is one of the few scooter companies able to thread the requirements of multiple municipalities in L.A.
It currently boasts it has the most interconnected micromobilty network in the L.A. metro region, with permits to operate in the city of L.A., Santa Monica, Culver City and West Hollywood, as well as plans to launch in Glendale.
Practically speaking, that means a user could ride a Wheels device between municipalities to get to work or school without worrying about landing in a no-parking zone (Beverly Hills, for instance, is geofenced and off-limits for scooter riding and parking).
Wheels was founded in 2018 in West Hollywood by Jonathan and Joshua Viner, who previously co-founded pet-walking startup Wag. The company’s scooters are designed for traveling longer distances. While a typical standup scooter goes one mile per ride, a Wheels seated mini-bike goes about one and a half miles. Along with its app-based service, the company also offers monthly rentals.
So far, the company has raised $96.3M in funding..
As part of its “Wheels for All” program, riders in all four municipalities who use state or federal benefits can ride at a steep discount. Currently, Wheels devices are $1.10 to unlock and then $0.39 per minute to ride. But underserved riders get unlimited rides of 30 minutes or less, paying only the unlocking fee.
The program is also more expansive than L.A. requires. In addition to low-income riders, people with disabilities and older adults who the city designates as “underserved populations,” Wheels program is also available for unhoused people.
To qualify, applicants fill out a form online and provide proof of enrollment in a state or federal program.
In comparison, its competitor Lime offers rides for $0.50 to unlock plus $0.07 per minute plus tax through its Lime Access program; Bird offers 50% off rides for low-income Angelenos through its Community Pricing program.
Although Wheels has the most interconnected equity program, enrollment is low. Only about 1,000 riders are signed up across the greater L.A. area. The program has provided just over 23,000 rides in the last year.
Sowers said this is an issue his company is doing its best to address. He added that he frequently talks to social service workers and organizations to help spread the word. Many, he said, are initially skeptical of recommending micromobility options to their clients.
One such person called him after seeing someone with a disability riding a Wheels device:
“They called me and were like, ‘That makes sense to me. It makes sense that someone can sit down and potentially have an accessibility challenge, but still be able to ride your device’.”
Berkeley professor and co-director of the Transportation Sustainability Research Center Dr. Susan A. Shaheen told dot.LA over email that Wheels’ approach to equity has potential.
“It could provide a more affordable alternative to private vehicle use, particularly during these times of high gas prices,” she said.

No Equity Without Infrastructure
Another challenge that Wheels, like its competitors, deals with is infrastructure. California law bans e-scooters from operating on sidewalks. But not everyone is comfortable riding an e-scooter or e-bike in the street, especially where there are no bike lanes and little infrastructure to keep riders safe. That’s especially true in many low-income neighborhoods.
“If you want to prioritize equity, you need to build infrastructure for micromobility in the places that are the most dangerous to use micromobility, which is in the least-invested communities,” said Michael Schneider, founder of advocacy group Streets For All. He added that providing equity means building interconnected cycling infrastructure throughout the city, especially along L.A.’s high injury network.
The city has said it's trying to address the disparity.
Los Angeles has brought in $4 million over two fiscal years through its micromobility permit program, according to the city’s Department of Transportation. It’s using some of that money to fund a redesign of the 7th Street corridor, including protected bike lanes, after data showed that this segment of Downtown was one of the busiest for e-scooters and e-bikes, Public Information Director Colin Sweeney said via email.
In the future, Sowers sees the potential for L.A. to use that funding, along with the data it collects from operators, to build better infrastructure in underserved areas.
“If someone in a transit desert is riding one of our devices, and I give the city good data and say, ‘Hey, I've got tons of rides in this neighborhood, but there's no protected bike lanes,’ then that creates a reason for the city to build that.”
- Bird CEO: Gas Prices Could Boost E-Scooter, E-Bike Ridership - dot ... ›
- LINK Will Add Another 1500 E-Scooters to LA Streets - dot.LA ›
- Veo CEO Is Bringing Anti-Tech Bro Approach to Micromobility - dot.LA ›
- Move Slow and Fix Things: E-Scooter Startup Superpedestrian ›
- Lime Is Bringing Its New, More Eco-Friendly Scooters to LA - dot.LA ›
- E-Scooter Companies Quietly Change Low-Income Programs in LA - dot.LA ›
- Wheels Agrees To Sell Business to Micromobility Firm Helbiz - dot.LA ›
- Wheels Agrees To Sell Business to Micromobility Firm Helbiz - dot.LA ›
- Wheels Agrees To Sell Business to Micromobility Firm Helbiz - dot.LA ›
Two LA Startups Raised $2.37B to Build What AI Needs
🔦 Spotlight
Happy Friday, LA.
The largest checks in tech are increasingly going toward companies trying to build their way out of America’s biggest physical constraints.
This week, two Los Angeles startups raised a combined $2.37 billion in equity to tackle two particularly urgent ones: how the country manufactures critical hardware and where it will find enough electricity to power the AI era.
Torrance-based Hadrian is building highly automated factories for defense and aerospace. El Segundo’s Valar Atomics wants to manufacture nuclear reactors at scale. Different industries, same underlying bet: the next generation of technology will depend on our ability to produce physical infrastructure much faster than we do today.
Hadrian raised $1.37 billion in Series D funding, bringing its valuation to $7.87 billion. The company plans to use the capital to open new factories, expand research and development, and increase its capacity to produce critical defense, aerospace and industrial systems.
Hadrian’s pitch is straightforward, if wildly ambitious: America needs to relearn how to build things and build them quickly.
Its factories combine skilled workers with AI, robotics and proprietary software to manufacture precision components and, increasingly, complete mission-critical systems. Its customers include defense giants such as Lockheed Martin and RTX, along with newer players like Anduril.
The company has come a long way from simply making aerospace parts. Hadrian is positioning itself as a piece of America’s industrial infrastructure, offering manufacturers a way to rapidly scale domestic production at a time when wars abroad, strained supply chains and growing defense demands have made the country’s manufacturing gaps increasingly difficult to ignore.
Investors are clearly buying the argument. The new round comes just over a year after Hadrian raised $260 million, suggesting that “reindustrialization” has officially graduated from venture capital buzzword to billion-dollar investment thesis.
Meanwhile, roughly 15 miles away in El Segundo, Valar Atomics is moving even faster than its enormous ambitions suggested.
When we last wrote about Valar, the company was reportedly raising $450 million at a $2 billion valuation and racing to prove that nuclear energy could move on AI’s timetable. Now, it has closed a $1 billion Series B led by Sequoia Capital, secured an additional $200 million credit facility and reportedly reached a $6 billion valuation.
Valar is developing standardized, factory-built nuclear power plants designed to avoid the enormous costs and decades-long construction timelines associated with traditional nuclear projects. Its goal is not merely to build a working reactor, but to eventually manufacture fleets of them.
That ambition also sounds considerably less theoretical than it did when we first covered the company. In June, Valar’s Ward 250 reactor achieved a self-sustaining nuclear reaction. Just one week later, the company demonstrated the reactor generating electricity to power an Nvidia Blackwell system. Valar now says the new funding will help it move from proving its technology works to producing reactors at scale.
The timing is no coincidence. AI’s enormous appetite for electricity is forcing the tech industry to confront a basic reality: the cloud still has to plug into something. Training models and operating massive data centers will require far more reliable power, and nuclear energy is rapidly becoming one of Silicon Valley’s favorite answers.
Hadrian and Valar may be solving different problems, but their unusually large rounds point to the same shift. AI can design, predict and automate, but it cannot manufacture a missile component or generate a megawatt of electricity on its own. That requires factories, energy systems, supply chains and a great deal of capital.
For years, venture-backed companies competed to build the software layer. Now, some of the biggest bets are being placed on the infrastructure underneath it.
The future may run on AI. But first, someone has to build what keeps it running.
More from this week’s LA startup and venture scene below.
🤝 Venture Deals
LA Companies
- Endeavor Optical Networks emerged from stealth with $10.75M in seed funding from General Catalyst and Andreessen Horowitz to develop a satellite network that uses lasers to move data between continents. The startup plans to use the capital to build an optics lab, hire engineers and conduct ground testing ahead of a demonstration satellite launch targeted for late 2027. - learn more
- Actualyze AI emerged from stealth with a $7M seed round backed by Storm Ventures, Canaan Partners, Morado Ventures and AME Cloud Ventures. Its platform gives enterprises a central control layer for managing AI usage across teams and applications, helping them enforce security policies, track spending, route requests between models and maintain audit trails. - learn more
- Blaze.tech raised $8.5M in pre-seed funding led by Friale, a healthcare-focused venture firm founded by the family behind HCA Healthcare. The company helps digital health startups, providers and payers turn AI-generated prototypes into HIPAA-compliant software for uses including e-prescribing, EHR integrations, telehealth and auditing. - learn more
- Canon Capital participated in Oligo Security’s $60M funding round alongside Ballistic Ventures, Greenfield Partners, Lightspeed Venture Partners, Red Dot Capital Partners, TLV Partners and other investors, bringing the cybersecurity company’s total funding to $140M. Oligo will use the capital to accelerate product development and expand its global go-to-market operations as it helps organizations detect and block software exploits in real time. - learn more
- Matter Venture Partners participated in Volta’s seed and Series A financing alongside Azora, Andreessen Horowitz, Altimeter, NVIDIA and Michael Dell’s family office, valuing the AI infrastructure startup at $2.4B. Emerging from stealth, Volta plans to use the backing to develop and operate large-scale AI data centers, supported by a $5B infrastructure financing program with Azora and a $10B European compute partnership. - learn more
- Cedars-Sinai participated in Cirrus Therapeutics’ expanded seed financing through its Intellectual Property Company, bringing the ocular immunology biotech’s total funding to $14.7M. Cirrus will use the backing to advance its gene and cell therapy pipeline, including a lead treatment for geographic atrophy, while a new collaboration with Singapore Eye Research Institute and Duke-NUS will support research, clinical development and expansion across Asia-Pacific. - learn more
- Strong Ventures made a follow-on investment in Ready Robust Machine’s ₩13.4B Series B, which was led by Quantum Ventures Korea and brought the heavy-equipment technology company’s total funding to ₩22.9B. The company develops energy-recovery systems for hydraulic machinery and will use the capital to build out mass production, expand its data services and enter the Japanese market. - learn more
LA Exits
- Artium has been acquired by global consulting firm AlixPartners, bringing its expertise in building enterprise-grade AI agents for clients including BNY Mellon, Mayo Clinic and eBay to a broader global platform. The company will continue operating as a distinct team under the name Artium by AlixPartners, retaining its founders, employees, methodology and research relationships. - learn more
From Uber to Atoms: Travis Kalanick’s $1.7 Billion Return
🔦 Spotlight
Hello LA,
Nine years after his turbulent exit from Uber, Travis Kalanick is back with a new company, an enormous war chest and, apparently, some unfinished business.
Los Angeles-based Atoms announced this week that it has secured a $1.7 billion equity investment led by Andreessen Horowitz, with a16z cofounder Ben Horowitz joining its board. Bain Capital, Fifth Wall, Uber and several other investors participated, while a roster of major banks, including Goldman Sachs, JPMorgan and Bank of America, are listed as debt partners.
Yes, Uber itself is now backing the comeback of its famously ousted cofounder. Silicon Valley may preach disruption, but it has always appreciated a good redemption arc.
Atoms is the culmination of the company Kalanick has spent the past eight years building largely out of public view. Formerly known as City Storage Systems, the parent company behind CloudKitchens, it is now bringing its businesses together under one ambitious umbrella: Atoms Food, Atoms Mining and Atoms Transport.
The premise is that AI’s next major frontier will not be confined to screens, chatbots or software. Atoms wants to build what Kalanick calls a “computer for the physical world,” using software, sensors, robotics and AI to automate how physical goods are produced, stored and moved.
That means tackling decidedly unglamorous but enormous industries such as mining, construction, food production and heavy transportation. Rather than betting on humanoid robots that can theoretically do everything, Atoms is focused on specialized machines designed to perform specific, economically useful jobs.
In other words, the robot does not need a face. It needs a business model.
For a16z, the investment is as much a bet on Kalanick as it is on industrial AI. In an essay bluntly titled “Travis Is Back,” Horowitz argues that Kalanick possesses the rare mix of technical range, endurance and sheer force of will required to drag old-line industries into a new technological era. The firm’s broader thesis is that robotics will eventually handle much of the repetitive work involved in making, moving and storing physical goods, creating a market potentially as consequential as computing itself.
There is also some history being settled. Kalanick, Horowitz and Marc Andreessen nearly partnered during Uber’s early days but never completed the deal. In a new conversation about Atoms, Kalanick and Horowitz revisit that missed opportunity and the long road that brought them back together. Sixteen years later, the check is considerably larger.
The scale of the investment is remarkable, but so is its location. Atoms is headquartered in Los Angeles, giving the city a front-row seat to one of tech’s boldest industrial AI bets. It also reinforces something increasingly evident across LA’s startup ecosystem: the next era of AI will not only be written in code. It will be built in kitchens, warehouses, mines, vehicles and factories.
Whether Atoms becomes the operating system for the physical world or simply proves that even $1.7 billion cannot make atoms behave like bits remains to be seen. But Kalanick is taking another enormous swing, and this time, Los Angeles is where the comeback story begins.
More from this week’s LA startup and venture scene below.
🤝 Venture Deals
LA Companies
- Hawthorne-based Andrenam raised an $18M Series A led by Upfront Ventures, with participation from Valor Equity Partners, Also Capital, First Round Capital and Long Journey Ventures, bringing its total funding to $30M. The maritime defense startup will use the capital to scale production of its sonar-equipped buoys and expand its AI-powered platform for detecting and tracking underwater activity. - learn more
- Long Beach-based Bluecore Energy emerged from stealth with approximately $10M in oversubscribed financing led by Slauson & Co., with participation from Harlem Capital, Precursor Ventures, Hartbeat Ventures and others. The company is developing small modular nuclear reactors that can operate aboard floating barges and deliver zero-emission power to ports, data centers and other critical infrastructure. - learn more
- Vikk AI raised $4.2M across a $700K pre-seed and $3.5M seed round, with backing from MagnaSci Ventures and several angel investors. The legal AI startup will use the funding to expand its consumer assistant, document tools and advertising platform that connects users with lawyers based on their needs and location. - learn more
- Final Boss Sour raised $4M in strategic funding from Evolution VC Partners, The Angel Group, Mondelēz International’s SnackFutures Ventures and others, bringing its total funding to $12M. The gaming-inspired real-fruit snack brand will use the capital to expand into major retailers, including Walmart, Kroger, Target and 7-Eleven, while developing new products and collaborations. - learn more
- Overture Ventures participated in Fluxco’s $26M seed round, led by 8VC and Congruent Ventures, alongside Trust Ventures, Koch Disruptive Technologies and others. The Austin startup uses AI to help companies source electrical transformers from more than 150 manufacturers, reducing a procurement process that can take months to just days. - learn more
- Alexandria Venture Investments and Wedbush Healthcare Partners participated as returning investors in Crystalys Therapeutics’ oversubscribed $130M Series B, which was led by Frazier Life Sciences. The San Diego biotech will use the funding to advance Phase 3 trials and commercialization preparations for dotinurad, its once-daily oral treatment for gout. - learn more
- Rebel Fund participated in Klaimee’s $5.5M seed round, led by FundersClub’s Alexander Mittal and backed by ex/ante, Pioneer Fund, Y Combinator and others. The San Francisco insurtech startup certifies and insures autonomous AI agents, helping businesses manage financial and liability risks that traditional cyber and technology policies may not cover. - learn more
- M13 participated in Skyfall AI’s undisclosed funding round alongside Fidelity, Inovia Capital, Touring Capital, NextView Ventures and Garage Capital. Founded by former Microsoft researchers, the San Francisco startup is developing AI systems capable of making long-term decisions across finance, operations, marketing and other business functions, with the goal of building an autonomous enterprise. - learn more
- Interlagos Capital led Beyond Reach Labs’ $10M seed round, with participation from TerraForge Capital, Off-Piste Capital, Y Combinator and Augur VC. The startup will use the funding to scale production of its deployable solar-array hardware for satellites at a new 16,000-square-foot facility in Brooklyn, with plans to achieve flight qualification by the end of 2026. - learn more


