When Skydio, a younger maker of drones in San Mateo, California, despatched a buyer proposal in 2023 to the Las Vegas Metropolitan Police Division, its chief of employees, Mike Gennaro, forwarded the e-mail to VC Ben Horowitz.
“Which deployment are you trying to do?” Horowitz wrote again.
“No matter you need, Ben,” Gennaro replied, in line with emails seen by TechCrunch.
Horowitz then despatched cash to the Las Vegas Metropolitan Police Division’s (LVMPD) police basis to buy Skydio drones for the division.
It was a win-win, seemingly. Skydio was capable of tout its relationship with the LVMPD, whereas the division acquired a brand new software to battle crime. In a weblog submit detailing the partnership, Skydio praised the LVMPD’s option to undertake its X10 drones as being “pushed by the bold imaginative and prescient of creating Las Vegas the most secure neighborhood in America.”
They didn’t point out Horowitz, even if the VC’s relationship with the LVMPD runs deeper than simply funding the Skydio drones.
The enterprise capitalist has facilitated communication between the LVMPD and at the very least six a16z portfolio corporations. TechCrunch realized about this relationship after receiving over 100 emails between Horowitz and the division, in addition to inside police emails about his donations primarily between January 2023 and July 2024, in a public information request.
In whole, the investor has donated at the very least $7.6 million to fund police division purchases over the previous few years, in line with a submit he revealed on a16z’s weblog in mid-October after studying about TechCrunch’s receipt of the general public information. He and his spouse Felicia have additionally paid to develop and enhance the LVMPD’s fitness center, in line with the emails and his submit.
Horowitz isn’t alone on this strategy to supporting police. Soliciting donations to police foundations to cowl the price of particular tools purchases is an more and more well-liked and controversial strategy taken by among the largest departments across the nation.
Specialists and advocates on police accountability and surveillance advised TechCrunch that police foundations bypass the everyday procurement course of that may embody public conferences, a city-approved finances, and a possible bidding interval to offer opponents an opportunity.
“It’s horrifying from an excellent authorities perspective, from a nonprofit [and] ethics perspective, and simply actually has grow to be such a serious a part of how novel police applied sciences are marketed and marketed,” Albert Fox Cahn, founder and government director of the Surveillance Know-how Oversight Venture, stated in an interview.
Fox Cahn and others additionally stated donations can arrange corporations for ongoing contracts the place taxpayers foot the invoice. And so they say it could actually tilt the enjoying subject. In Skydio’s case, the Las Vegas Metropolitan Police Division owned merchandise from at the very least three different drone corporations earlier than Horowitz’s donation, a previous public information request revealed.
Horowitz argued in his submit that the general public sector typically has “hassle budgeting” for brand new strategic know-how, so “by donating the know-how, I’m able to give LVMPD a operating begin.”
His strategy was praised by David Ulevitch, a basic associate at a16z, which backed Skydio. “What @bhorowitz and Felicia have accomplished in Vegas is a masterclass in philanthropy and influence,” Ulevitch wrote. “I hope it catches on in cities throughout America as a mannequin to carry nice know-how to public security and bootstrap the method.”
TechCrunch requested Horowitz for an interview and despatched an inventory of questions for this story, however he didn’t reply. Andreessen Horowitz spokesperson Grace Ellis declined to reply the questions, and stated there was “nothing extra for Ben to share past his weblog submit.” An unnamed consultant of the LVMPD’s public data workplace stated the division “is grateful to the non-public residents who present funding for numerous initiatives all through the division,” and declined to reply additional questions.
Paying for Prepared911, Flock Security and extra
For Horowitz’s spouse Felicia, California in 2020 was starting to look an excessive amount of like her previous. The 2 had lived within the prosperous Bay Space city of Atherton, California, for years. However Felicia had grown up exterior of Los Angeles, in Compton and Carson, California, the place she “noticed a lot of her mates murdered,” Horowitz stated in his weblog submit.
Between Prop. 47, a 2014 California coverage that reclassified some felonies as misdemeanors, and politicians’ short-lived pledges to slash police budgets, Felicia felt she was watching her dwelling state deteriorate in actual time. “The brand new insurance policies — defund the police, don’t prosecute crime — are destroying the communities the place I grew up,” she was quoted saying in The Wall Road Journal. “If you wish to genocide black individuals, the California insurance policies are a fantastic blueprint.”
Felicia wished out of California and Horowitz was intrigued by Las Vegas. The town, he advised a Substack publication, promised “the Raiders, wonderful eating places, and world class leisure.”
Horowitz bought his Las Vegas residence, and his enterprise associate, Marc Andreessen, reportedly purchased a $36 million vacant plot 9 minutes down the street. By early 2023, the emails present Horowitz had begun making private strategies about merchandise to the police division and was quickly writing checks. The couple donated $800,000 for brand new pc terminals and $120,000 for the fitness center, tossing in cash for brand new ice and cappuccino machines, he wrote in his submit.
He additionally began connecting Vegas police with a16z portfolio corporations. Along with Skydio, he donated $400,000 for the police division to amass know-how from Ready, an a16z firm that makes use of AI to assist with 911 calls, and an unspecified quantity for surveillance cameras from Flock Security, one other a16z firm. Horowitz additionally arrange introductions for safe communications startup Kodex, and Earnin’, which helps workers entry their pay earlier than payday, the emails present.
The LVMPD didn’t simply blindly settle for his donated know-how, although, in line with the emails.
Horowitz advised Gennaro in an August 2023 e-mail that he would make a donation for the division to amass know-how from Toka, an a16z-backed cybersecurity firm. However police management had considerations. The startup was gradual to supply pricing data and there have been questions on whether or not Toka’s know-how would work effectively with a few of LVMPD’s cameras, in line with the emails.
LVMPD management wished their inside enterprise and know-how governance board to evaluate the tech earlier than even receiving a Toka demo and warned there may be a “prolonged” clearance approval course of.
Whereas it’s not clear why, a deal was by no means labored out: A spokesperson for Toka advised TechCrunch that LVMPD “has by no means been a consumer or person of our merchandise.”
How Horowitz guided the Skydio deal
The Skydio deal wasn’t simple both. Horowitz had donated the cash for the LVMPD to purchase Skydio drones earlier than 2023, in line with emails seen by TechCrunch. Beforehand, the police pressure owned a handful of X2 Skydio drones, issued from 2020 to 2022, in addition to drones from corporations Autel, Brinc, and Skyfront, in line with a earlier public information request.
In a 2023 e-mail to chief of employees Gennaro, Brad Cupp, then-Las Vegas police sergeant, mirrored on the X2 Skydio drones. He wrote that they confirmed a “large quantity of promise,” however “fell wanting what we would have liked operationally.”
In the identical e-mail, Cupp wrote that the Skydio crew had listened to LVMPD’s suggestions, creating a brand new drone that “has the potential to actually be a sport changer,” he wrote. “I’m hoping it is possible for you to to help upgrading all or a part of our fleet of Skydios.”
Gennaro forwarded the message to Horowitz, asking for assist. A couple of months later, Skydio formally introduced their new drone, the X10, and despatched over a proposal to LVMPD for drones and drone docks — a touchdown pad for drones stationed all through town — in hopes that Horowitz would donate the tools to the police pressure.
This potential deal took on a newfound significance after the corporate stopped promoting shopper drones that yr, betting its future on authorities, protection, and regulation enforcement. This meant all of their stock must meet the next normal: police drones normally want longer battery lives and higher cameras, in addition to extra know-how like thermal sensors.
It was an costly wager. In line with a 2024 pitch deck ready by Skydio investor Linse Capital that was seen by TechCrunch, the drone firm forecasted that it might burn via at the very least $238 million by 2029, primarily based on elements like elevated manufacturing and growth into new industries and geographies. Linse Capital was extra pessimistic about Skydio’s wants, in line with the deck. It forecasted Skydio might plow via at the very least $348 million within the subsequent 5 years on its method to profitability. A Skydio consultant stated that these figures will not be in any Skydio pitch decks and that the agency can not validate them. Linse Capital declined to remark.
Horowitz, nonetheless, expressed shock on the giant scope of Skydio’s proposal to the LVMPD, particularly its suggestion to place docks on colleges, in line with the emails.
“I assumed that we simply wished this for the 11 neighborhoods,” Horowitz emailed Gennaro, the “we” referring to the police division and himself, because the one footing the invoice. “They bid the colleges too. Is that what we requested for?”
Gennaro defined that extra drones had been needed in higher-crime neighborhoods, although a lot of the e-mail was redacted, together with his response to placing docks on colleges. Gennaro ended the e-mail by deferring to his donor’s judgment.
“We are able to regulate nonetheless you see match,” he wrote. An unnamed consultant of the LVMPD’s public data workplace stated that no drone docks have at present been put in in LVMPD’s jurisdiction.
Three months later, when Horowitz pitched Gennaro on one other a16z portfolio firm, Kodex, he included a caveat: “If it’s a good suggestion, I’m blissful to assist, however let’s not let the corporate know that,” Horowitz emailed. “We don’t want one other Skyd.io proposal lol.”
Stacy Wang, Kodex’s head of promoting, stated the corporate had no data of Horowitz funding the LVMPD’s acquisition of a16z portfolio corporations’ merchandise. She advised TechCrunch that Kodex is “free to make use of” for all regulation enforcement companies.
Horowitz’s elevated proximity to the LVMPD has had different ripple results for the businesses he’s invested in. Across the similar time that Skydio publicized its partnership with the LVMPD, Sergeant Cupp, who had evangelized the corporate’s drones internally, left the division for a brand new gig, in line with his LinkedIn profile: Program supervisor at Skydio.
“You’ll get caught”
Andreessen Horowitz held its 2023 LP Summit — an occasion for the individuals who spend money on the agency’s funds — in Las Vegas. The town’s sheriff, Kevin McMahill, donning his police uniform, sat onstage between Flock Security founder Garrett Langley and a16z’s Ulevitch. McMahill couldn’t maintain again his glee as he spoke about utilizing a16z-backed applied sciences.
“Each piece of that know-how is the equal of three cops,” he stated of Flock’s merchandise, including: “Unhealthy guys know that whenever you come to Las Vegas, due to our talents — know-how being on the forefront of it — you’ll get caught.”
McMahill additionally touted LVMPD’s dedication to transparency through the discuss. However he didn’t point out the opaque software the division used to amass these applied sciences: police foundations.
These foundations are sometimes arrange as tax-exempt nonprofits, and provides non-public residents and firms a method to donate cash that can be utilized to purchase issues for police departments. Their use has exploded lately, with police foundations in main cities like New York, Los Angeles, St. Louis, and Atlanta producing tens of millions of {dollars} in annual income.
Evan Feeney, senior director of campaigns and organizing at Colour Of Change, a nonprofit civil rights advocacy group that has revealed analysis on police foundations, known as them a “authorized loophole” in an interview with TechCrunch. “Billionaires shouldn’t be allowed to purchase entry and affect with regulation enforcement,” he stated.
Transparency, or lack of it, is a major concern advocates like Feeney have with using police foundations.
To wit, Horowitz used his private basis to donate $2 million to the Las Vegas police basis in 2023. However his basis’s tax submitting vaguely described the “goal” of the donation as “help of police.”
The Las Vegas police basis, in the meantime, doesn’t publish a full rundown of its donors. And whereas it maintains a web site that lists among the packages it funds, it doesn’t point out the a16z corporations, nor does it say how a lot cash goes to anybody effort.
What little they do disclose lags behind the real-world deployment. The newest public filings for both basis solely cowl exercise via as late as June 2023.
“Welcome to the great, dystopian land of Police Foundations,” Fox Cahn, the surveillance advocate, stated.
Fox Cahn added that, typically, the donations can arrange corporations for profitable ongoing contracts with the police pressure, sidestepping opponents. After an preliminary donation, “they will then attempt to each promote the [police] on a follow-up contract but in addition then use the truth that [police] are deploying a know-how for promoting,” he stated.
“It turns into actually simply inconceivable for voters — for the general public – to carry individuals accountable,” he stated.
Horowitz has justified his involvement with the LVMPD by pointing to dropping crime charges within the metropolis — which he says is occurring thanks, partly, to his donations. In his submit, he claimed that 911 calls are being answered quicker and that, due to Flock Security, 17% extra suspects are being arrested.
However Horowitz didn’t say within the submit the place he obtained these statistics, and he declined to reply when TechCrunch requested. The LVMPD referred TechCrunch to its public crime statistics, which don’t line up with Horowitz’s figures.
Sheriff McMahill is a believer. On the LP Summit, he recalled a capturing the place all they knew was there have been two automobiles with a number of weapons firing. The case appeared hopeless till he used Flock Security know-how, which incorporates gunshot detection and license plate recognition software program, which was capable of give them extra data on the scene and assist them to catch the shooters.
“This know-how is altering the sport,” McMahill declared to the group of a16z traders. “We’re going to get to a spot sooner or later the place it turns into inconceivable to commit a criminal offense.”
