Illustration by Ian Hurley
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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The app opens onto a map that shows users historic crime scenes in their area, using GPS data. Each crime comes with a case file that includes a list of articles, documents, photos, audio clips and videos curated by crime journalists and researchers that is meant to provide an organized synopsis of "the 5 w's and h."
CrimeDoor was conceived by Neil Mandt, a longtime film and TV producer-turned-tech entrepreneur. A true crime enthusiast, Mandt said he saw an opportunity to merge the popular genre with immersive reality, an industry he's been increasingly involved in over the last few years and which he believes is "on the verge" of explosive growth.
The AR environments are constructed based on real crime scene photos, police reports and eyewitness accounts using CrimeDoor's patent-pending technology and Unity, a gaming engine.
Users can explore the crime scene using their mobile devices at the real, physical location when feasible, or with a joystick navigator from their own home. They'll see the scene as it was reconstructed, and can "pick up" evidence and enlarge it on their screens for closer inspection.
At launch, the app will contain about 500 cases and dozens of virtual doorways, Mandt said. Cases are free, but the app charges $1.99 to enter a door, or a monthly fee of $4.99.
Some of the cases are famous, such as the murder of OJ Simpson's former wife Nicole Brown Simpson or the shooting of John Lennon. But, Mandt said, most will not be as familiar.
One such case is that of Rebecca Zahau, a woman whose 2011 death in Coronado, California was ruled a suicide. The family contested the cause of death and filed a wrongful death lawsuit. Zahau's family has provided CrimeDoor with materials such as court documents and autopsy photos. A perpetrator was charged in a civil trial – not a criminal one – and Mandt said the family wants to bring the case back to light and give the public a chance "to look at it."
Mandt also noted he has heard great feedback from both user test groups and law enforcement agencies.
"The average detective has one hour on a crime scene and later a couple of photos and a matchstick and a hairy sock," Mandt said. "We have shown this to the FBI and law enforcement departments and without exception everyone compared it to DNA. The way DNA changed the game, this will do the same."
According to a company representative, a retired criminal investigator who helped to solve the infamous Golden State Killer case called CrimeDoor "a game changer for cold cases around the world."
UCLA law professor Eugene Volokh, who has studied and written about the intersection of AR/VR and law, told dot.LA that CrimeDoor should be wary of potential issues such as libel or needlessly upsetting a victim's family members. He emphasized, however, that such concerns are no different than those faced by any true crime storyteller, regardless of the medium.
"Generally, there are no legal or ethical problems raised by an AR or VR app as opposed to a documentary or a book," he said.
Mandt, who is self-financing the app, sees partnerships with media companies as a big opportunity for future growth. He said an organization with legacy crime footage, such as "60 Minutes," could partner with CrimeDoor to build out the AR crime portal, re-air the legacy footage on television, then direct viewers to the app and share a cut of the income.
"I'm interested in where the social web goes and how other AR leaders come to us and say here's how we can collaborate," he said. "The tech community, I'm excited to see what kind of creative things they can do with this. And Hollywood – producers will look at this and come to us."
Mandt also hinted at potential expansion by augmenting the user experience with sounds and technology that stimulates a user's sense of touch. He's also considering adding a marketplace to sell merchandise and implementing a credit-earning system to allow for add-on experiences, such as a ride-along in the OJ white Bronco highway chase.
Down the line, CrimeDoor may incorporate advertising, Mandt said. The app may also eventually incorporate premium content, such as access to movies, shows and books related to a given case.
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Sam Blake primarily covers media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA
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TikTok Doles Out Money to Creators, Batting Away Rivals
Tiktok announced today the first receipts of a $200 million creator fund including several Los Angeles-based app stars. It comes as the social app faces increased competition from those trying to lure away talent and the threat of an outright ban.
The company has promised to up their funds for rising U.S. creators to $1 billion over the coming three years.
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Well-known TikTok-er David Dobrik recently gave away a Tesla to one of his more than 20M followers as part of a sweepstakes for the most heartfelt story.
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live.staticflickr.com
Amazon is in talks with mall operator giant Simon Property Group to convert Sears and J.C. Penney department stores into package distribution centers, according to a report from The Wall Street Journal.
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Shares of Simon Property Group, which has 21 malls in California including the Del Amo Fashion Center, Brea Mall and Ontario Mills, jumped on the news. The company is set to report earnings after Monday's market close.
Adding more warehouses would help Amazon speed up deliveries as the company plans to offer its Prime members 1-day delivery of their orders. Amazon posted $5.2 billion in profits in the second quarter, doubling its bottom line from the same quarter a year ago, despite spending more than $4 billion on COVID-19 initiatives.
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