What Are LA’s Hottest Startups of 2022? See Who VCs Picked in dot.LA’s Annual Survey
In Los Angeles—like the startup environment at large—venture funding and valuations skyrocketed in 2021, even as the coronavirus pandemic continued to surge and supply chain issues rattled the economy. The result was a startup ecosystem that continued to build on its momentum, with no shortage of companies raising private capital at billion-dollar-plus unicorn valuations.
In order to gauge the local startup scene and who’s leading the proverbial pack, we asked more than 30 leading L.A.-based investors for their take on the hottest firms in the region. They responded with more than two dozen venture-backed companies; three startups, in particular, rose above the rest as repeat nominees, while we've organized the rest by their amount of capital raised as of January, according to data from PitchBook. (We also asked VCs not to pick any of their own portfolio companies, and vetted the list to ensure they stuck to that rule.)
Without further ado, here are the 26 L.A. startups that VCs have their eyes on in 2022.
1. Whatnot ($225.4 million raised)
Whatnot was the name most often on the minds of L.A. venture investors—understandably, given its prolific fundraising year. Whatnot raised some $220 million across three separate funding rounds in 2021, on the way to a $1.5 billion valuation.
The Marina del Rey-based livestream shopping platform was founded by former GOAT product manager Logan Head and ex-Googler Grant LaFontaine. The startup made its name by providing a live auction platform for buying and selling collectables like rare Pokémon cards, and has since expanded into sports memorabilia, sneakers and apparel.
2. Boulevard ($40.3 million raised)
Boulevard’s backers include Santa Monica-based early-stage VC firm Bonfire Ventures, which focuses on B2B software startups. The Downtown-based company fits nicely within that thesis; Boulevard builds booking and payment software for salons and spas. The firm has worked with prominent brands such as Toni & Guy and HeyDay.
3. GOAT ($492.7 million)
GOAT launched in 2015 as a marketplace to help sneakerheads authenticate used Air Jordans and other collectible shoes. It has since grown at a prolific rate, expanding into apparel and accessories and exceeding $2 billion in merchandise sales in 2020. The startup sealed a $195 million funding round last summer that more than doubled its valuation, to $3.7 billion.
The Best of the Rest
VideoAmp ($578.6 raised)
Nielsen competitor VideoAmp gathers data on who's watching what across streaming services, traditional TV and social apps like YouTube. The company positions itself as an alternative to so-called "legacy" systems like Nielsen, which it says are "fragmented, riddled with complexity and inaccurate." In addition to venture funding, its total funding figure includes more than $165 million in debt financing.
Mythical Games ($269.4 million raised)
Seizing on the NFT craze, Mythical Games is building a platform that powers the growing realm of “play-to-earn games.” Backed by NBA legend Michael Jordan and Andreessen Horowitz, the Sherman Oaks-based startup’s partners include game publishers Abstraction, Creative Mobile and CCG Lab.
FloQast ($202 million raised)
FloQast founder Michael Whitmire says he got a “no” from more than 100 investors in the process of raising a seed round. Today, the accounting software company is considered a unicorn.
Nacelle ($70.8 million raised)
Nacelle produces docuseries, books, comedy albums and podcasts. The media company’s efforts include the Netflix travel series “Down To Earth with Zac Efron.”
Wave ($66 million raised)
A platform for virtual concerts, Wave has hosted performances by artists including Justin Bieber, Tinashe and The Weeknd. The company says it has raised $66 million to date from the likes of Warner Music and Tencent.
Papaya ($65.2 million raised)
Sherman Oaks-based Papaya looks to make it easier to pay “any” bill—from hospital bills to parking tickets—via its mobile app.
LeaseLock ($63.2 million raised)
Based in Marina del Rey, LeaseLock says it’s on a mission to eliminate security deposits for apartment renters.
Emotive ($58.1 million raised)
Emotive sells text message-focused marketing tools to ecommerce firms like underwear brand Parade and men's grooming company Beardbrand.
Dray Alliance ($55 million raised)
Based in Long Beach, Dray says its mission is to “modernize the logistics and trucking industry.” Its partners include Danish shipping company Maersk and toy maker Mattel.
Coco ($43 million raised)
Coco makes small pink robots on wheels (you may have seen them around town) that deliver food via a remote pilot. Its investors include Y Combinator and Silicon Valley Bank.
HiveWatch ($25 million raised)
HiveWatch develops physical security software. Its investors include former Twitter executive Dick Costollo and NBA star Steph Curry’s Penny Jar Capital.
Popshop ($24.5 million raised)
Whatnot competitor Popshop is betting that live-shopping is the future of ecommerce. The West Hollywood-based firm focuses on collectables such as trading cards and anime merchandise.
First Resonance ($19.4 million raised)
Founded by former SpaceX engineer Karan Talati, First Resonance runs a software platform for makers of electric cars and aerospace technology. Its clients include Santa Cruz-based air taxi company Joby Aviation and Alameda-based rocket company Astra.
Open Raven ($19 million raised)
Founded by Crowdstrike and Microsoft alums, Open Raven aims to protect user data. The cybersecurity firm’s investors include Kleiner Perkins and Upfront Ventures.
Fourthwall ($17 million raised)
When an actor faces the camera and speaks directly to the audience, it’s known as “breaking the fourth wall.” Named after the trope, Venice-based Fourthwall offers a website builder that’s designed for content creators.
The Non Fungible Token Company ($15 million raised)
The Non Fungible Token Company creates NFTs for musicians under the name Unblocked. Its investors include Jay Z’s Marcy Venture Partners and Shawn Mendez.
Safe Health Systems ($15 million raised)
Backed by Mayo Clinic Ventures, Safe Health develops telehealth software and offers tools for enterprises to launch their own health care apps.
Intro ($11.6 million raised)
Intro’s app lets you book video calls with experts—from celebrity stylists, to astrologists, to investors.
DASH Systems ($8.5 million raised)
With the tagline “Land the package, not the plane,” DASH Systems is a Hawthorne-based shipping company that builds hardware and software for automated airdrops.
Ettitude ($3.5 million raised)
With a focus on sustainability, Ettitude is a direct-to-consumer brand that sells bedding, bathroom textiles and sleepwear.
Afterparty ($3 million raised)
Along similar lines as Unblocked, Afterparty creates NFTs for artists and content creators such as Clay Perry and Tropix.
Heart to Heart ($0.75 million raised)
Heart to Heart is an audio-focused dating app that “lets you listen to the story behind the pictures in a profile.” Precursor Ventures led the pre-seed funding round.
Frigg (undisclosed)
Frigg makes hair and beauty products that contain cannabinoids such as CBD. The Valley Village-based company raised an undisclosed seed round in August.
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Founded in 2013, the company has already proven its technology can work via pilot programs in Sweden, Germany and Italy—as well as its homeland of Israel, where it’s a publicly traded company on the Tel Aviv Stock Exchange. But on Tuesday, Electreon announced a partnership with Michigan public authorities, as well as private stakeholders like Ford Motor Company, to install a one-mile-long stretch of electrified road in Detroit—the first time such a system would be used in public roads in the U.S. The system is expected to be operational by next year.
Electreon, which opened its U.S. headquarters in Los Angeles last month, is initially targeting fleet vehicles like taxis, buses and drayage trucks for its technology, but plans to eventually expand into the consumer EV market as well. Electric road systems would be especially attractive to fleet vehicles for a number of reasons, the most obvious being that they stop frequently. Time spent idling, especially in predictable locations, means it’s easier to know where to install electrified roads and make them cost-effective.
Stefan Tongur, Electreon’s L.A.-based vice president of business development, says the company’s induction charging technology will probably charge slower than the traditional plug-in station model. But if the pavement under every bus station was electrified, he told dot.LA, a small amount of charge would be added to the vehicle at every stop—meaning the bus would need to take fewer, if any, breaks to recharge its battery.
Image courtesy of Electreon
It’s easy to imagine similar use cases at ports, rail yards or airport taxi lanes, all of which could spell significant savings for companies that lose time and money when their electric fleet vehicles are plugged in and recharging. Many of these areas also fall under the purview of the private sector, which would make uptake and implementation easier, according to Tongur. He said Electreon is already eyeing a move into such spaces.
Electreon aims to have its wireless charging technology installed on public roads around the U.S. within “a couple of years,” Tongur added. While Detroit will host the pilot program, Los Angeles and New York will be the next targets.
“L.A. is obvious, right? It’s the Mecca of EVs,” he said. “You have air quality issues here; you have the port of L.A. and Long Beach; you have so much traffic. Moving to electrification is, I would say, a must.”
The goal of installing wireless charging for moving vehicles is “very courageous,” said Mehrdad Kazerani, a professor of electrical and computer engineering at the University of Waterloo in Ontario, Canada. Kazerani noted that researchers at the university had developed a similar concept for the sprawling Trans-Canada Highway. “Of course, we did not pursue this idea, but it seems Electreon has made good progress along this line,” he said.
Kazerani added that wireless charging technology may also allow the EVs of the future to use considerably smaller batteries, which would make the cars lighter, more energy-efficient and less expensive. Smaller batteries would also mean less mining for battery materials and less waste when a battery reaches the end of its life.
“This is kind of an invitation to the U.S. market: to policymakers, state agencies, fleet owners and original equipment manufacturers,” Tongur said. “This is an opportunity to do things together—join us on this path and journey.”
Based in West Hollywood, Superjoi’s platform allows creators to run Kickstarter-like campaigns to raise capital for projects, while giving fans the chance to suggest ideas for new content. Creators can also reward fans who chip in by giving them event tickets, merchandise or a personal video call. Later this year, Superjoi plans to help fans reap financial rewards, too—such as a share of advertising revenues generated from projects that they backed.
A screenshot from Superjoi's platform.
Major online platforms like Facebook and YouTube have increasingly monetized the relationship between creators and fans, targeting users with ads and sharing some of the revenues with creators. But Superjoi’s founders contend that fans have been completely cut out of the equation despite driving creators’ successes. In September, the startup began building a platform that would give fans a share of the financial upside, co-founder and CEO Chris Knight told dot.LA.
“Superjoi, as we position it, is liquidity with love,” Knight said. “The reason why we call it that is, for somebody who's creative, there's no better funding source for their creativity than the people who love them—and that’s their fans.”
Knight learned a lot about what he calls “superfans” after helping to build Fantom, a fan-focused smartwatch launched with England’s Manchester City Football Club. The Premier League team consults its fans on decisions relating to its stadium and sponsorships, he noted. “I see huge opportunities in the future for creators to actually have a deeper engagement with their audience and actually mobilize their audience to a new level,” Knight said.
Fans will initially fund projects on Superjoi by buying “supercoins,” an in-platform currency that is worth $1 each. While supercoins are not technically crypto tokens at this stage, the startup envisions letting fans invest in creators, earn a financial return and receive ownership in their content based on tokenization. Superjoi collects a 10% cut of a creator’s fundraising goal.
The platform plans to launch in mid-May with about 25 U.S.-based creators with larger audiences, and will onboard more creators on a waitlisted basis, Knight said. A full public launch is expected later this summer.
Superjoi, which has 14 employees, plans to use the new funds on growing its team, acquiring creators and marketing the platform.