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What Are LA’s Hottest Startups of 2022? See Who VCs Picked in dot.LA’s Annual Survey
Harri Weber
Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.
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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Harri Weber
Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.
Ambercycle’s CEO on Why Traditional Recycling Won’t Work, and What His Technology Does Instead
12:58 PM | January 05, 2022
Few industries are as tangled with buzzwords as the fashion industry. Clothing brands, rightly concerned about their tremendous effects on the environment, are eager to call their collections “green” or “sustainable.” But making tangible changes in how clothing is produced and distributed has been a struggle.
On Tuesday, L.A.-based startup Ambercycle announced it raised a $21.6 million Series A round to try to tackle the problem. The funding comes from fashion heavyweights including H&M (which has used its technology in recent collections) and online fashion and shoe retailer Zalando, among others. It will go to ramping up production of the company’s fiber regenerative technology, which it created and piloted in a manufacturing plant downtown.
Ambercycle co-founders Shay Sethi and Moby Ahmed are scientists and former UC Davis college roommates. The two see themselves as different from traditional fashion or manufacturing founders – and other research-based innovators.
“Traditionally, people have always thought, ‘here's an interesting technology, how do we craft a story around it?’” Instead, Sethi says, Ambercycle “start[s] with the products that we would really like to see and then work backwards into the technology. We develop, do research and engineering that way instead of starting in the lab.”
Ambercycle CEO and co-founder Shay Sethi
Their technology is able to break down the components of clothing to its basic polyester materials, separating its natural fibers and dyes, and creating a new material in the process, which they call cycora.
“We imagined a technology that could take an old t-shirt and turn it back into the yarns required to make that green t-shirt again,” he adds. “Anything that's in your closet today – like yoga pants or dress shirts – that's traditionally made of polyester can be made with cycora.”
Sethi and Ahmed started their company in San Francisco in 2015, then moved it to Los Angeles’ garment district two years later, looking for a manufacturing hub close to a center of innovation.
“We felt like this is a really good nexus for innovation, fashion – as well as material sciences,” Sethi says. “There is a very strong industry and a very strong familiarity with manufacturing so we felt it was a perfect blend. Also we grew up in California and didn't want to leave.”
We chatted with Ambercycle co-founder Shay Sethi about his company’s journey, its new funding and how it plans to get beyond buzzwords in planning a sustainable future for fashion.
What are the biggest challenges to the fashion industry?
When we consider the future of humanity, there's a couple key things that need to change. The big one is – given that consumption will not decrease – the reliance on natural resources will put a strain on the way in which we can live on this planet. So in order to change that, we need to take advantage of these traditionally viewed as waste streams and turn them back into new resources. So the future upstream will be all of these textile materials that are in our closet. But it's not really easy today to throw away or recycle our old garments.
We need to be able to have a low-friction way to throw away our garments and have them go back into a circular system. If we can tell a transparent and traceable story to a person, then brands and retailers will start to care.
Why is it so hard to recycle clothing currently?
So let's talk about our clothing. They are mixtures of different fibers – polyester and cotton, as well as dyes, additives, zippers, tags and stains – when they're at their end of life. We can't really recycle those materials, because they're these complex, intimate blends. Recycling has really struggled as a business, and also as a solution to waste, because you can't create a high quality product from those materials once they are at their end of life.
How is Ambercycle different from other recycling processes?
Most recycling processes are shredding or very simple mechanical processes. You can turn a t-shirt into pillow stuffing in a similar way that you can turn paper into a sort of grey newspaper and then downcycle it; The same thing happens with textiles.
The Holy Grail is really being able to turn an old t-shirt into a new t-shirt. So over the past five years, we’ve developed technology that takes these mixtures of materials that have dyes and additives, put them through a process, and make the base raw materials needed to make those same yarns. This goes in line with what's traditionally known today as circular economy where you can reuse materials, again and again.
Will Ambercycle always be focused on apparel?
Right now our focus is on apparel.
We have a couple of luxury clients that are really interested in transitioning to circular systems. Over the next couple of years, we're going to be able to talk about those, but the major message we want to help shed light on is that every year, over 120 billion garments go to landfill. We need to, as a fashion industry, transition to a circular system. It's [not] just one or two companies that can do things; Everyone as a whole needs to adopt a new ecosystem, where things are being reused in supply chains over and over again. It's very important for this transition to involve all verticals in the power supply chain. The demand for these materials is already so high. So people already care. I think we're just trying to figure out the logistics of the society right now.
There's a lot of possibilities when you think about it. You can imagine this being transformed into a system that can take other materials as well. I think we're excited about the possibilities in the future but I’m really focused on the textile-to-textile stories today.
What do you plan to do with your recent funding?
We’re trying to scale up the number of projects we're doing with different companies across the apparel industry that will require a lot of manpower or womanpower. That's a key gap we need to fill. A technology like ours that uses sort of molecular separation technologies, that advanced material science requires a sort of scale before you can really start to see the fulfillment of these contracts.
It's very easy to make a couple of t-shirts, but it's very hard to make millions and millions and millions of kilograms of stuff. We're going to be scaling up production of one of our main materials today, cycora. Demands are already way through the roof. I felt like right now was the right time to raise external capital to accelerate that plan.
This interview was edited for clarity and brevity.
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Camay Abraham
Camay Abraham is a journalist, researcher, and a freelance reporter for dot.LA. She covers fashion, tech and culture and has previously written for Glossy, i-D, Dazed and Screen Shot, among other outlets. She has an MA in fashion psychology from London College of Fashion and has been interviewed by Vice and ABC Australia for her work in fashion and well-being. Pronouns: she/her.
Meet the LA Startup Founder Who Had Two Hours To Prep Her 'Shark Tank' Pitch
03:48 PM | April 01, 2022
Photo courtesy of Curie
One Sunday afternoon last September, Sarah Moret was hiking through Griffith Observatory when she received a voicemail from the producer of “Shark Tank,” ABC’s hit entrepreneurial reality show. The voice message notified her that she had just two hours to get to the “Shark Tank” studio and pitch Curie, her aluminum-free deodorant brand, to the show’s “Sharks”—its panel of investor judges featuring Mark Cuban, Lori Greiner, Barbara Corcoran, Daymond John and Kevin O'Leary.
"I just jumped in the car; my fiancé was driving, and he brought me home as fast as possible in the carpool lane," Moret told dot.LA. "I curled my hair, got ready in 20 minutes and did my makeup in the passenger seat of his car for a primetime TV show."
Sarah Moret at the top of her hike, moments before she received a call from the producers of "Shark Tank."
Photo courtesy of Curie
Moret first applied to be on “Shark Tank” in 2020, but didn't receive a callback. She heard back from the show after reapplying the following year, with initial plans to film in July—but the producers bumped her filming date and put her on standby until September.
"I compare it to being like an understudy in a play," she explained. "I didn't have a set filming date. I was just told that I would get a phone call if there was space in the schedule for me to film.”
But Moret was confident she had a product worth waiting for, and the entrepreneurial know-how to scale it into a successful business. Most conventional antiperspirants in the market are made out of aluminum that can cause armpit irritation; while there are natural, aluminum-free deodorant brands, Moret said they also irritated her skin or left her smelling like a gym bag. Curie, her solution to these problems, uses sage oil and probiotics to beat the stink, arrowroot powder to absorb the sweat, and chamomile and aloe to soothe the armpits.
Prior to launching Curie in 2018, Moret worked as an associate at Santa Monica-based venture capital firm Crosscut Ventures, where she earned a spot on the investing team. There, she learned the ins and outs of the startup world.
“Curie started from a personal need,” Moret said. “I'm an athlete and at the time was a marathon runner, and just couldn't find anything that worked.”
Curie generated revenues of $125,000 in its first year of selling deodorant sticks. The following year, the startup had $700,000 in sales. At the start of 2020, she raised $1 million through a convertible note capped at $5 million to continue growing the brand. It has gradually expanded its product offerings to include body wash, moisturizing body oil, a detox mask and hand sanitizers.
Before appearing on “Shark Tank,” Curie’s body products were already sold in over 300 stores nationwide including Nordstrom, Anthropologie and fitness gym Soulcycle. It had also frequently appeared on shopping network QVC.
Fast forward to September 2021, and Moret finally entered “the Tank” with her eyes set on Corcoran and Greiner. She wanted to make a deal with one or both of them because, as Moret put it, “I just gravitate towards female investors or founders.”
Curie's line of deodorant sprays in three scents. Photo courtesy of Curie
When Moret’s episode of “Shark Tank” finally aired last month, she was surprised to find herself the first one up. Moret confidently introduced Curie on national television without a hint of sweat on her face or dirt from the hiking trail. She charmed the Sharks with her background and solid numbers—her opening pitch was for a $300,000 investment in exchange for a 5% equity stake—but four out of the five Sharks didn’t bite, saying she had raised too much money early on and had too many products.
This wasn’t new to Moret: Her first efforts at pitching Nordstrom and QVC had been rebuffed as well. “Rejection is a part of being an entrepreneur,” she said. “You're always going to get no’s; you can't let those no’s stop you or discourage you.”
It all came down to the final Shark, Daymond. When he produced an offer—$300,000 for 20% equity—that Moret deemed too low, she shot back: “I know my worth, I know the company's worth and I'm not backing down.”
After Moret countered with $300,000 for 12% equity, Cuban and Corcoran combined on an offer of $300,000 in exchange for 14% equity. Moret took the deal, as Cuban quipped: “I never thought I would be in a women’s deodorant business, ever.”
After the show aired, Curie sold out all of its deodorant products in 24 hours and now has some 5,000 customers on its waitlist. Moret said the company has plans to roll out further products, but supply chain issues have impacted their progress.
“Our biggest hurdle right now is just getting back in stock quickly, so we can get people their deodorant,” she said.
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Decerry Donato
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
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