Looking to Build a Granny Flat in Your Backyard? Meet the Firms and Designs Pre-Approved in LA
Adding a backyard home in Los Angeles is now nearly as easy as buying a barbecue.
Homeowners who for years have wanted to build a granny flat in their backyard, but dreaded the red tape, can now choose from 20 pre-designed homes that the city has already approved for use.
The shift, made official last week, will speed up a weeks-long process and bring more badly needed units to an overpriced market. It also has the potential to elevate the 14 startups and firms building the next generation of homes.
The designs for the stand-alone residences range from a 200-square-foot studio to a 1,200-square foot, two-story, two-bedroom unit. And many of the homes are filled with design flourishes, reflecting the diverse architecture of the city, from a house in the silhouette of a flower to one with a spiral outdoor staircase leading to the roof.
It's no surprise. The program was spearheaded by Christopher Hawthorne, a former architecture critic at the Los Angeles Times and now the city's chief design officer.
The firms are primarily local and startup architecture and design firms, while others are well-known with a history of building granny flats, also know as accessory dwelling units, or ADUs.
The standard plans avoid the Los Angeles Department of Building and Safety's typical four-to six-week review process and can allow approvals to be completed in as quickly as one day.
Some aspects of the plans can be modified to fit a homeowner's preferences. Eight other designs are pending approval.
Mayor Eric Garcetti believes by adding more such units, the city can diversify its housing supply and tackle the housing crisis. Recent state legislation made it easier to build the small homes on the lot of single-family residences. Since then, ADUs have made up nearly a quarter of Los Angeles' newly permitted housing units.
Because construction costs are relatively low for the granny flats – the pre-approved homes start at $144,000 and can go beyond $300,000 – the housing is generally more affordable. The median home price in L.A. County in January was $690,000.
Here's a quick look at the designs approved so far:
Abodu
Abodu
Abodu, based in Redwood City in the Bay Area, exclusively designs backyard homes. In 2019, it worked with the city of San Jose on a program similar to the one Los Angeles is undertaking.
In October, it closed a seed funding round of $3.5 million led by Initialized Capital.
It has been approved for a one-story 340-square-foot studio, a one-story one-bedroom at 500 square feet, and a one-story, 610-square-foot two-bedroom.
The pricing for the studio is $189,900, while the one-bedroom costs $199,900 and the two-bedroom is $259,900.
Amunátegui Valdés Architects
Connect Homes
Design, Bitches
Escher GuneWardena Architecture
First Office
Fung + Blatt Architects
Fung + Blatt Architects is a Los Angeles-based firm founded in 1990.
The city has approved its 795-square-foot, one-story, one-bedroom unit with a roof deck. It estimates the construction cost to be $240,000 to $300,000, excluding landscape, site work and the solar array. Homeowners can also expect other additional costs.
Taalman Architecture/ IT House Inc.
LA Más
Jennifer Bonner/MALL
Massachusetts-based Jennifer Bonner/MALL designed a "Lean-to ADU" project, reinterpreting the stucco box and exaggerated false front, both Los Angeles architectural mainstays.
The design has been approved for a 525-square-foot one-story, one-bedroom unit with a 125-square-foot roof deck.
sekou cooke STUDIO
New York-based sekou cooke STUDIO is the sole Black-owned architectural firm on the project.
"The twisted forms of this ADU recalls the spin and scratch of a DJ's records" from the early 90s, the firm said.
Its design, still pending approval, is for a 1,200-square-foot, two bedroom and two bathroom can be adapted to a smaller one-bedroom unit or to include an additional half bath.
SO-IL
New York-based SO-IL was founded in 2008. It has completed projects in Leon, Seoul, Lisbon and Brooklyn.
Its one-story, one-bedroom 693-square-foot unit is pending approval. It is estimated the construction cost will be between $200,000 and $250,000.
WELCOME PROJECTS
Los Angeles-based Welcome Projects has worked on projects ranging from buildings, houses and interiors to handbags, games and toys.
Its ADU is nicknamed The Breadbox "for its curved topped walls and slight resemblance to that vintage counter accessory."
It has been approved for a one-story, one-bedroom 560-square-foot unit.
wHY Architecture
Firms that want to participate in the program can learn more here . Angelenos interested in building a standard ADU plan can learn more the approved projects here.
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Startups were ranked by how many votes each received. In the case of a tie, companies were listed in order of capital raised. The list illustrates how rapidly things move in startup land. One of the hottest startups had not even started when 2020 began. A number doubled or even 16x'd their valuation in the span of a few short months.
To divvy things up, we delineated between companies that have raised Series A funding or later and younger pre-seed or seed startups.
Not surprisingly, many of the hottest companies have been big beneficiaries of the stay-at-home economy.
PopShop Live, a red-hot QVC for Gen Z headquartered out of a WeWork on San Vicente Boulevard, got the most votes. Interestingly, the streaming ecommerce platform barely made it onto the Series A list because it raised its Series A only last month. Top Sand Hill Road firms Andreessen Horowitz and Lightspeed Venture Partners reportedly competed ferociously for who would lead the round but lost out to Benchmark, which was an early investor in eBay and Uber. The round valued PopShop Live at $100 million, way up from the $6 million valuation it raised at only five months prior.
Scopely, now one of the most valuable tech companies in Los Angeles, was also a top vote getter.
The Culver City mobile gaming unicorn raised $340 million in Series E funding in October at a $3.3 billion valuation, which nearly doubled the company's $1.7 billion post-money valuation from March. It is no coincidence that that was the same month stay-at-home orders began as Scopely has benefited from bored consumers staying on their couch and playing ScrabbleGo or Marvel Strike Force.
The company's success is especially welcome news to seed investors Greycroft, The Chernin Group and TenOneTen ventures, who got in at a $40 million post valuation in 2012. Upfront Ventures, BAM Ventures and M13 joined the 2018 Series C at a $710 post-money valuation.
Softbank-backed Ordermark, which flew more under the radar, also topped the list. The company's online ordering platform became a necessity for restaurants forced to close their dining rooms during the pandemic and raised $120 million in Series C funding in October.
On the seed side, two very different startups stood out. There was Pipe, which enables companies with recurring revenues to tap into their deferred cash flows with an instant cash advance, and Clash App, Inc., a TikTok alternative launched by a former employee of the social network in August.
We will have the list of Southern California's top seed startups out tomorrow.
Hottest
PopShop Live ($100 million)
The live-streaming shopping channel created by Danielle Lin reportedly found itself in the middle of a venture capital bidding war this year. Benchmark eventually won out leading a Series A round, vaulting the app at a $100 million valuation. The Los Angeles-based platform has been likened to QVC for Gen Z and it's part of a new wave of ecommerce that has found broader appeal during the pandemic. Google, Amazon and YouTube have launched live shopping features and other venture-backed startups like Los Angeles-based NTWRK have popped up.
Boiling
Scopely ($3.3 billion)
One of the most valuable Southern California tech startups with a $3.3 billion valuation, the Culver City mobile game unicorn has benefitted from a booming gaming market that has flourished in this stay-at-home economy. Scopely offers free mobile games and its roster includes "Marvel Strike Force," "Star Trek Fleet Command" and "Yahtzee with Buddies." In October the company raised a $340 million Series E round backed by Wellington Management, NewView Capital and TSG Consumer Partners, among others fueling speculation that it was on its road to an IPO. Co-CEO Walter Driver has said that he doesn't have immediate plans to go public.
Ordermark ($70 million)
The coronavirus has forced the closure of many dining rooms, making Ordermark all the more sought after by restaurants needing a way to handle online orders. Co-founder and CEO Alex Canter started the business in 2017, which recently rang in more than $1 billion in sales. Ordermark secured $120 million in Series C funding by Softbank Vision Fund 2 in October that it will use to bring more restaurants online. The company's Nextbite, a virtual restaurant business that allows kitchens to add delivery-only brands such as HotBox from rapper Wiz Khalifa to their existing space through Ordermark, is also gaining traction.
Simmering
Cameo ($300 million)
Cameo, which launched three years ago, had its breakout year in 2020 as C-list celebrities like Brian Baumgartner banked over a million dollars from creating customized videos for fans. In the sincerest form of flattery, Facebook is reportedly launching a feature that sounds a lot like Cameo. Even though the company is still technically headquartered in Chicago, we included Cameo because CEO Steven Galanis and much of the senior team moved to L.A. during the pandemic and say they plan to continue running the company from here for the foreseeable future.
Mothership ($64 million)
Co-founded by CEO Aaron Peck, Mothership provides freight forwarding services intended to streamline the shipping experience. The company's tracking technologies connect shippers with nearby truck drivers to speed up the delivery process. It raised $16 million in Series A venture funding last year, driving the platform to a $48 million pre-money valuation.
Nacelle ($6.7 million)
Founded in 2019, Nacelle's ecommerce platform helps retailers improve conversion rates and decrease loading speeds for their sites. The software integrates with Shopify and other services, offering payment platforms and analytics integration, among dozens of services. Nacelle raised about $4.8 million earlier this year with angel investors that included Shopify's Jamie Sutton, Klaviyo CEO Andrew Bialecki and Attentive CEO Brian Long.
Boulevard ($30 million)
Matt Danna and Sean Stavropoulos came up with Boulevard when an impatient Stavropoulos was frustrated wasting hours to book a hair appointment. Their four-year-old salon booking and payment service is now used by some of Los Angeles' best-known hairdressers. Last month, the two secured a $27 million Series B round co-led by Index Ventures and Toba Capital. Other investors include VMG Partners, Bonfire Ventures, Ludlow Ventures and BoxGroup.
CloudKitchens ($5.3 billion)
Uber co-founder Travis Kalanick CloudKitchens rents out commissary space to prepare food for delivery. And as the pandemic has fueled at-home delivery, the company has been gobbling up real estate. The commissaries operate akin to WeWork for the culinary world and allow drivers to easily park and pick-up orders as the delivery market has soared during pandemic. Last year, it raised $400 million from Saudi Arabia's colossal sovereign wealth fund.
GOAT ($1.5 billion)
Founded by college buddies five years ago, GOAT tapped into the massive sneaker resale market with a platform that "authenticates" shoes. The Culver City-based company has since expanded into apparel and accessories and states that it has 20 million members. Last year, Foot Locker sunk a $100 million minority investment into 1661 Inc., better known as Goat. And this fall it landed another $100 million Series E round bankrolled by Dan Sundeheim's D1 Capital Partners.
Savage X Fenty
The lingerie company co-founded by pop singer Rihanna in 2018 is noted for its inclusivity of body shapes and sizes. It has raised over $70 million, but The New York Times' DealBook newsletter recently reported that it's been on the hunt for $100 million in funds to expand into active wear. The company generates about $150 million in revenue, but is not yet profitable, according to the report. It became the focus of a consumer watchdog investigation after being accused of "deceptive marketing" for a monthly membership program.
Warming Up
FabFitFun ($930 million)
The lifestyle company provides customized personal subscription box services every three months with full size products. Started in 2010 by Daniel Broukhim, Michael Broukhim, Sam Teller and Katie Rosen Kitchens, it now boasts more than one million members. Last year, the company raised $80 million in a Series A round led by Kleiner Perkins last year and appears to be preparing for an eventual IPO as it slims down costs and refocuses on its high value products.
Dave ($1 billion)
Launched in 2016, the finance management tool helps consumers to avoid overdrafts, provides paycheck advances and assists in budgeting. Last year, it began to roll out a digital bank account that was so popular that two million users signed up for a spot on the waitlist. The company, run by co-founder Jason Wilk, has raised $186 million in venture capital and counts billionaire Mark Cuban as an early investor and board member. Other backers include Playa Vista-based Chernin Group.
Sure ($59 million)
SURE offers multiple technology products to major insurance brands — its platform can host everything from renter's insurance to covering baggage, so customers never have to leave an agency's website. It also offers its platform to ecommerce marketplaces, embedding third-party insurance protections for customers to purchase all on the same webpage. Founded in 2014, the Santa Monica-based startup last raised an $8 million Series A round led by IA Capital in 2017.
Zest AI ($90 million)
Founded in 2009 by former Google CIO Douglas Merrill and ex-Sears executive Shawn Budde, Zest AI provides AI-powered credit underwriting. It helps banks and other lenders identify borrowers looking beyond traditional credit scores. It claims to improve approval rates while decreasing chargeoffs. The company uses models that aim to make the lending more transparent and less biased. This fall the company raised $15 million from Insight Partners, MicroVentures and other undisclosed investors, putting its pre-money valuation at $75 million, according to PItchbook.
PlayVS
Santa Monica-based PlayVS provides the technological and organizational infrastructure for high school esports leagues. The pandemic has helped the company further raise its profile as traditional sports teams have been benched. Founded in early 2018, PlayVS employs 46 people and has raised over $100 million. In addition to partnering with key educational institutions, it also has partnerships with major game publishers such as Riot and Epic Games.
Tapcart ($40 million)
A SaaS platform helps Shopify brands create mobile shopping apps. The marketing software saw shopping activity jump 50% over 90 days as the pandemic walloped traditional retailers. Founded by Eric Netsch and Sina Mobasser, the company raised a $10 million Series A round led by SignalFire, bringing the total raise to $15 million.
Papaya ($31.8 million)
Papaya lets customers pay any bill from their mobile devices just by taking a picture of it. The mobile app touts the app's ease-of-use as a way to cut down on inbound bill calls and increase customer payments. Founded by Patrick Kann and Jason Metzler, the company has raised $25 million, most recently a S10 million round of convertible debt financing from Fika Ventures, Idealab and F-Prime Capital Partners.
Floqast ($250 million)
FloQast is a management software that integrates enterprise resource planning software with checklists and Excel to manage bookkeeping. The cloud-based software company claims its system helps close the books up to three days faster. It is used by accounting departments at Lyft, Twilio, Zoom and The Golden State Warriors. In January, it raised $40 million in Series C funding led by Norwest Venture Partners to bring the total raise to $92.8 million.
Brainbase ($26.5 million)
The company's rights management platform expedites licensing payments and tracks partnership and sponsorship agreements. It counts BuzzFeed, the Vincent Van Gogh Museum and Sanrio (of Hello Kitty and friends fame) among its clients. In May it announced $8 million in Series A financing led by Bessemer Venture Partners and Nosara Capital, bringing the total raised to $12 million.
OpenPath ($28 million)
The Los Angeles-based company provides a touchless entry system that uses individuals cell phones to help with identification instead of a key card. The company offers a subscription for the cloud-enabled software that allows companies to help implement safety measures and it said demand has grown amid the pandemic. Founded by James Segil and Alex Kazerani the company raised $36 million led by Greycroft earlier this year, bringing its total funding to $63 million.
FightCamp ($2.5 million)
FightCamp is an interactive home workout system that turns your space into a boxing ring with a free standing bag, boxing gloves and punch trackers. The company is riding the wave of at-home fitness offerings including Peloton, Mirror and Zwift that have taken off during the pandemic as gyms closed. The company has raised $4.3 million to date.
Numerade
The Santa Monica-based company provides video and interactive content for education in math, science, economics and standardized test prep. Founded in 2018 by Nhon Ma and Alex Lee, who previously founded Tutorcast, an online tutoring service, the company gathers post-graduate educated instructors to create video lessons for online learning.
Our Place ($32.5 million)
The creator of a pan with a cult following on social media, this Los Angeles-based startup designs and retails cookware and dinnerware. Founded by Amir Tehrani, Zach Rosner and Shiza Shahid, the company completed its Series A funding earlier this year, bringing its total raised to date to $10 million.
Tala ($560 million)
For customers that have no formal credit or banking history, this company's application promises more financial access, choice and control. It gathers data to create a credit score that can be used to instantly underwrite and disburse loans ranging from $10 to $500. Co-founded by Shivani Siroya and Jonathan Blackwell, Tala has raised $217.2 million to date. Its investors include PayPal Ventures, Lowercase Capital and Data Collective.
ServiceTitan ($2.25 billion)
Founded in 2007 by chief executive Ara Mahdessian and president Vahe Kuzoyan, ServiceTitan operates software that helps residential home contractors grow their businesses. It provides businesses tools like customer relationship management and accounting integration to streamline operations. The company closed a $73.82 million Series E funding round from undisclosed investors earlier this year.
100 Thieves ($160 million)
Founded in 2017 by former professional "Call of Duty" player Matthew Haag, 100 Thieves manages esports competitions in major titles including "Counter Strike Global Offensive" and "League of Legends." The company also produces apparel and merchandise, opening a physical store and training ground called the "Cash App Compound" in collaboration with Fortnite earlier this year. The company has raised $60 million to date, from investors including Salesforce CEO Marc Benioff and Aubrey Graham, better known as the rapper Drake.
Emotive ($16.5 million)
This AI-powered customer service platform automates text conversations between customers and businesses to increase sales. Emotive uses their sales team to verify questions, distinguishing it from other bot-driven marketing services, according to the company. The company was founded in 2018 by Brian Zatulove and Zachary Wise, who serve as the chief executive and the chief operating officer, respectively. It has raised $6.65 million to date, from Floodgate Fund and TenOneTen Ventures.
Everytable ($33 million)
Created by former hedge fund trader Sam Polk, the Los Angeles-based startup wants to be a healthy fast food chain. It prices its healthy pre-packaged meals around $5 in underserved communities while costing more in other neighborhoods with the goal of reducing so-called food deserts in low-income neighborhoods. It also offers a subscription delivery service. The company recently closed a $16 million Series B round led by Creadev along with Kaiser Permanente Ventures.
Lead art by Candice Navi.
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Ara Katz, a serial entrepreneur and founder of probiotic company Seed tops our list. Katz found a niche in a multi-billion dollar industry, but she acknowledges that this past year has been especially tough for women, as the pandemic forced millions to drop out of the workforce.
"It is not lost on me what a privilege it is to be building a company as a female founder and mother given how impactful the pandemic and the past year has been on women and mothers in the workforce," said Katz. "My best advice to founders is to build with abandon — it is contagious, amplifying and makes it all meaningful."
Nationally, female-founded or co-founded companies earned less than 3% of all venture capital in 2020, according to data from Pitchbook. Although women founders say they still face issues of sexism and encounter more obstacles than their male counterparts, there are signs of improvement. In the first quarter of this year, women entrepreneurs reeled in $9.8 billion in capital investment nationally – an all-time high in quarterly investments over the past 12 years.
In Los Angeles, Long Beach and Santa Ana, $544 million was poured into female founded startups alone over that time.
Therese Tucker, founder of fintech company BlackLine, which also made our list, said that it's important for women to find people who believe in them as they build their companies.
"Don't be intimidated by condescension," Tucker said, "Look for people you can actually partner with who 'get' your business."
And just as importantly, founder of health platform Kensho, Krista Berlincourt, said stay true to who you are.
"It is not easy. And you'll be surrounded by men, so just find the people who get you and your vision, hold onto them tight, and go for it. Then remember that soft is strong. You don't have to 'crush it' to be successful," she said. "Be you. Be flexible. Soften. Grow. That's the only thing that has ever worked," Berlincourt added.
Here's the complete list:
Ara Katz, Seed
Ara Katz
Ara Katz is the co-founder and co-CEO of Seed, a Venice-based probiotic company designed to improve health and digestion. Katz's experience as a breastfeeding mother led her to explore the importance of microbes and their impact on bodily health. Among other leading roles, Katz was co-founder and CMO of ecommerce marketplace Spring, which was sold to ShopRunner in 2018. She was also on the founding team of Beach Mint, an e-commerce company for fashion and lifestyle brands.
Claire Schmidt, AllVoices
Claire Schmidt
Claire Schmidt aims to empower workers through AllVoices, an anonymous reporting and management platform, which allows employees to report issues in the workplace. The LA-based company has raised a total of $4.1 million with investments by Crosscut, Greycroft, Halogen Ventures and dot.LA founder Spencer Rascoff. Inspired by the the MeToo movement, the platform lets employees alert management to problems like discrimination, harrasment, or work bias. Prior to roles at AllVoices, Schmidt was vice president of technology and innovation at Fox properties and senior director of giving at Thrive Market, an e-commerce platform for organic products.
Ariel Kaye, Parachute
Ariel Kaye
Ariel Kaye used her design and brand background to launch Parachute in 2014. Parachute is a direct-to-consumer bedding brand based in Culver City. The startup has raised over $47 million in funding to date with investments by H.I.G Capital, Jaws Ventures and Brilliant Ventures. The brand avoids chemicals and synthetics in their products putting an emphasis on sustainability.
Therese Tucker, BlackLine
Therese Tucker
Therese Tucker is the founder and executive chair of BlackLine, an LA-based platform for accountants that takes on repetitive or complicated tasks. BlackLine pulled in nearly $352 million in revenues in 2020, and expects to grow that to at least $410 million this year. Ranked among Fortune's '50 fastest growing' women led companies in 2016, the company also received first place in G2's "Best Finance Products of 2021" ranking.
Sophia Amoruso, Nasty Gal
Sophia Amoruso
Southern California native Sophia Amoruso is the founder and former owner of Nasty Gal, a multi-million dollar clothing store originally started on eBay. Nasty Gal was sold at a value of $20 million, including $15 million in debt, to BooHo in 2017. Amoruso's newest project is an eight-week entrepreneurship course called Business Class, which aims to help female business leaders begin or grow their small businesses. The New York Times bestseller author of#GIRLBOSS, she detailed her entrepreneurial story that was later made into a Netflix series.
Madeline Fraser, Gemist
Madeline Fraser
Madeline Fraser is the CEO and founder of Gemist, a mobile app that allows users to design a ring and try it on at home before they buy. Fraser used her experience in growing tech-startups to create one of her own. The sustainable jewelry brand raised $1 million in funding in its first seed round in 2019 and last year was backed by De Beers Group Ventures, Hawke Ventures and Monique Woodward last year for an undisclosed amount.
Krista Berlincourt, Kensho
Krista Berlincourt
Berlincourt is the CEO and co-founder of Kensho, an Los Angeles-based health platform and guide to natural medicine. Kensho provides users with specialized wellness services from surfing to acupuncture. The company has raised $1.3 million and is backed by top investors like CrossCut Ventures, Female Founders Fund and Evolve Ventures. Prior to creating her own company, Berlincourt worked in public relations at venture-backed Simple.
Katherine Power, Who What Wear
Katherine Power
Katherine Power co-founded Who What Wear 15 years ago out of frustration with a fashion industry that was often out of reach for many. The brand focuses on providing affordable and size-inclusive fashion. She is now CEO of Clique Media Group, a parent company that oversees Who What Wear and other consumer brands. As of 2017, Clique Media Group raised over $15 million in funding with investments by Amazon, Greycroft and e.ventures. Power was also listed in Fortune's 40 under 40 in 2016.
Cat Chen, Skylar
Cat Chen
Cat Chen is the founder and CEO of Skylar, a fragrance and body care brand. Chen developed a hypo-allergenic and cruelty free fragrance after being dismayed by the lack of clean ingredients in high-priced perfumes. The company founded in 2017 has raised a total of $11 million backed by Amplify, FirstMark Capital and GingerBread Capital. Prior to Skylar, Chen was was an executive of operations at The Honest Company, where she helped grow the company to $300 million of revenue in her four years there.
Shivani Siroya, Tala
Shivani Siroya
The founder and CEO of Tala, a Santa Monica-based consumer credit smartphone app, Shivani Siroya created the company to assist people in underrepresented markets. Tala uses advanced data science to provide personalized financial services, such as disbursing loans to people with no formal credit history. The startup has raised over $217 million in funding by top investors, and has since been mentioned in TedTalks, Wall Street Journal and Financial Times. Siroya's company is valued at an estimated $750 million dollars as of 2019, and was deemed one of the top FinTech companies in the world by Forbes.
Lead image by Ian Hurley.
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