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.
- The Early-Stage Startups in LA Set to Take Off in 2021 - dot.LA ›
- Los Angeles Startups Closed a Record Number of Deals in Q3 - dot.LA ›
- dot.LA's Map of Startups in Los Angeles - dot.LA ›
- The Hottest LA Startups of 2020 - dot.LA ›
- Los Angeles Cleantech Incubator Launches Green Loan Fund - dot.LA ›
Subscribe to our newsletter to catch every headline.
1. It’s Bigger Than It Looks—Even From the Inside
The floor is massive—laying out original products from Amazon’s own apparel lines alongside name brands like Theory, Adidas and Calvin Klein, as well as several other lines that have up until now only existed online. But the actual store is much larger than the two floors that most customers will only ever see.
Amazon Style is just the front—the homepage, if you will—behind which a large warehouse facility keeps a gigantic surplus of inventory. A floor-to-ceiling glass window on the main floor gives shoppers just a peak behind the scenes, as employees help load industrial-sized elevators with racks of goods to send upstairs to the dressing rooms.
2. Online Shopping IRL
When perusing the store’s bouquet of cottagecore maxi dresses, Kendall & Kylie blazers and, yes, a whole section dedicated to Y2K apparel, one doesn’t just pick an item off the rack and take it with you while you shop. Instead, each rack has a barcode that you can scan via the Amazon Shopping app, which has your sizes pre-loaded from previous purchases. (You can opt for a different size if you choose.) That cues an AI-enabled algorithm to start searching through the store’s warehoused catalog and zip the desired item over to the second floor, where the dressing room provides its own glimpse into the future of shopping.
The store also boasts a version of The Drop, an Amazon staple that allows online customers to shop entire influencer-curated collections for a 30-hour flash window.
3. Changing Stations of the Future—Today
Your phone also acts as your keycard to get into your personal dressing room. To prevent waiting, you are put in a virtual cue the moment you scan your first item; should the Amazon app prompt that your room is ready while you’re still shopping, a tap of your screen allows you to hold your spot in the queue while freeing up the room for someone else. (And if your phone dies while you’re waiting, Amazon says a Style employee on the floor will be happy to help you keep your place in line, or hook you up with a charge.)
Amazon Style’s dressing rooms offer a tech-enabled twist to trying on clothes.Image by Joshua Letona
The changing room is like its own parlor trick. Designed to look like a walk-in closet, one wall has a full-length mirror and a giant touchscreen while another has all the clothes you scanned in your style and size preference. Expect to see a few surprises in there, as Amazon’s algorithm picks out other stuff you might want to try on based on your picks. It would be spooky if it wasn’t so convenient—an IRL mashup of the online retailer’s “Recommended Based on Your Purchases” and “Frequently Bought Together” features.
If an item doesn’t fit quite right or you want to see how a skirt looks in blue instead of black, just tap the touchscreen to request a variant. Or an entirely new outfit, as the screen makes available everything in the facility. Then just bring it down to checkout—perhaps the wildest part of this ride.
4. Palming the Bucks
Checking out of Amazon Style’s flagship store is what really blew my mind—although apparently it’s because I haven’t been to one of the Amazon Go, Amazon Fresh or Whole Foods locations where cashless checkouts have been an option in select stores since 2020.
I assumed you could just walk out the door with your purchase, because I watch "Saturday Night Live" sketches for news. While the Go payment option isn't available at Amazon Style, there are several checkout options to keep the experience as frictionless and non-cumbersome as possible.
One way is to take the clothes you want out of the dressing room and go directly to Amazon’s palm-enabled checkout kiosks. That’s right: Register on the spot for an Amazon One account, and you need merely to wave your hand over a little black device that reads your palm and charges your on-file payment method. It’s super convenient for everyone except $10 boardwalk psychics, who just may be put out of business by such technology.
For the more traditional set, you still have the option of paying via credit card or cash.
Shoppers can check out of Amazon Style with the wave of a palm.
Image by Joshua Letona
5. Supply & Demand & Return
Amazon Style’s brick-and-mortar location opens up a variety of new ways to shop, return and exchange clothing. For instance, you can order a load of clothes online and pick them up in the store; anything you don’t want can be returned in the store without you ever having to print a shipping label.
See something you like but don’t have time to try it on? Just scan the barcode, pick it up at the front of the store and pay on your way out without ever going into a dressing room.
The Amazon Shopping app also boasts a Deals feature, which automatically sorts for the best price on items to help customers either save money (or believe they are).
While Glendale is home to the only Style store so far, Amazon isn’t ruling out more locations. With fewer retailers able to afford rents on America’s main strips and shopping malls, Amazon’s resources—and its unique position at the intersection of tech and retail—make it easy to envision more Style stores on the horizon.
A Look Inside Amazon's New Retail Store in Glendale
Image by Joshua Letona
It may not be the best ghost story to come out of Los Angeles, but Nicky will soon haunt the pages of a book written by bestselling author Neil Strauss, who has penned autobiographies for the likes of Marilyn Manson and Jenna Jameson. Nubla has licensed Nicky to an NFT storytelling project called Jenkins the Valet, which is backed by Creative Artists Agency and will see Strauss cobble together stories from various Bored Ape holders.
Nubla’s Bored Ape Yacht Club #6717, which he affectionately named "Nicky Nickels."
Photo courtesy of Gene Nubla“This goes into the philosophy of Web3—like, I can participate as an owner now,” said Nubla. “I'm in the door now, versus on the outside looking in and just watching the movies [and] paying the ticket.”
These days, there are scores of artists, startups and entertainment companies—as well as ordinary NFT holders—who are parlaying non-fungible tokens into commercialized intellectual property. Santa Monica-based Universal Music Group, one of the world’s largest record labels, has created a “metaverse group” consisting of four Bored Apes who ostensibly make music, while crypto exchange Coinbase is using Bored Apes as characters for a film trilogy. Talent agencies like WME and United Talent Agency, meanwhile, have added Bored Apes and other NFT characters to their client rosters.
These creative works are possible because blockchain firms like Yuga Labs, the company behind Bored Ape Yacht Club, have attached broad commercialization rights to NFTs, which are unique digital assets verified using blockchain technology. Granting those rights could boost the value of NFT collections by making them more culturally relevant, according to experts, though it remains to be seen whether such projects can appeal to audiences beyond NFT adopters.
A lot of legal questions remain, too, as actor and producer Seth Green just learned the hard way. Green is developing a hybrid live-action/animated comedy called “White Horse Tavern,” in which the creator’s own Bored Ape—whom Green affectionately named “Fred”—comes to life as a friendly neighborhood bartender. The project was almost sabotaged last month when a scammer duped Green in an online phishing scheme—stealing four of his NFTs, including Fred. Since Bored Ape NFTs come with a license to commercialize the art, Green may have momentarily lost the rights to produce the show (Fred has since returned home safely). The drama turned Green into a poster child for how sketchy the world of NFTs can still be—the “Wild West” of digital assets, as some observers have put it.
Ready for Primetime?
Jeremy Goldman, a Los Angeles attorney who leads the blockchain group at law firm Frankfurt Kurnit Klein & Selz, credits companies like Yuga Labs for generating immense value for their NFT collections. The problem, as he sees it, are the collections’ relatively brief terms and conditions that don’t spell out what happens in certain situations, like when an NFT is stolen. That has the risk of killing projects and productions if investors or distributors are uncertain of the consequences.
“All of these NFT projects, including Bored Ape Yacht Club, are highly experimental and in some ways were never meant for primetime,” Goldman told dot.LA. “A lot of questions about the license are sort of unanswered.”
That hasn’t stopped some entertainment tech firms from sticking NFT avatars in their stories. L.A.-based Invisible Universe is developing an animated parody called “The R3al Metaverse,” which will include characters from five NFT collections. (Disclosure: dot.LA co-founder and executive chairman Spencer Rascoff is an investor in Invisible Universe).
Promotional art for the "The R3al Metaverse."Photo courtesy of Invisible Universe
The startup bought three NFTs and secured licenses for two more that fit well with the story, CEO Tricia Biggio told dot.LA. Just to be sure, Invisible Universe approached the creators behind the NFT projects, as well. While those organizations had varying views on using the IP, they all saw the value of Invisible Universe’s project, she noted.
“It was funny—some of them would be like, ‘Well, you actually don't have to run it by us,’” Biggio said.
In “The R3al Metaverse,” NFTs who live in the digital world come over to the real one after they’re cast in a reality TV show and move in together. The parody pokes fun at the debate around the value of NFTs, as well: In one episode, the characters stare at a painting and are confused by its lack of “real-world application” besides being a wall decoration. (“Like zero utility,” one observes, according to a storyboard of the scene.) Invisible Universe will release around 40 episodes of the program on social media platforms starting in late July, with each episode running between 45 and 90 seconds.
Who will watch a show about NFTs—which, for all of their recent hype, are still owned by just a tiny fraction of the population? Biggio said that the audience for “The R3al Metaverse” will primarily be holders of its featured NFT communities: Bored Ape Yacht Club, Cool Cats, Doodles, World of Women and Robotos, which collectively have roughly 50,000 tokens in circulation. That said, Biggio believes the show can build an audience outside the not-yet-mainstream NFT market and, in turn, boost the value of those collections.
“Because we aren't gating the content, we have a unique opportunity to onroad people into the Web3 space who enjoy the content, fall in love with the characters and want to be a part of the collaborative storytelling experience,” Biggio said.
‘A Unique Opportunity To Create Wealth’
At their most basic level, NFTs—like artwork at large—generate much of their value from their scarcity and cultural relevance. Yet companies like Yuga Labs have popularized the idea of giving NFT holders commercial rights as well, allowing Bored Ape holders to put their ape’s face on a t-shirt or other merchandise and sell it. That not only makes the NFT itself more lucrative, but may well make the entire collection more valuable as Bored Apes are plastered on storefronts or featured in films.
“By giving broad IP rights—either making them public domain or granting commercial rights to holders—you're increasing the chances, potentially, that these items are going to get out there and go viral and become culturally relevant, and therefore sought after,” said Goldman, the attorney.
Bill Starkov, a real estate developer who lives near Calabasas, “right by the Kardashians,” in his words, is the founder of another primate-inspired NFT project, Apocalyptic Apes. (The collection’s zombified primates look like scarier versions of Bored Apes.) Starkov said his team gave NFT holders the right to do “whatever you want” with the artwork—so long as they don’t use the Apocalyptic Apes brand name. “We have to make sure they use it properly enough and it's used to promote our project and our brand in a good way,” he explained.
Apocalyptic Apes have been featured on the shorts of mixed martial arts fighters. Photo courtesy of Bill Starkov
Apocalyptic Ape holders have placed their simians on hot sauce bottles, exercise equipment and sunglasses, he noted, while on the entertainment side, a car-racing game, comic books and movies depicting the apes are all in the works, too. Starkov, who goes by Fity.Eth online, has also partnered with Nicky Diamonds, the owner of clothing company Diamond Supply, on licensing deals with Ape holders to create merchandise. Those deals are generating tens of thousands of dollars for ape holders who collaborated with Diamond, he said.
“One thing that people are sleeping on is the understanding of IP rights,” Starkov said of some people in the NFT community. “They think it's a quick flip, but it's not. It's something long-term. It's something that's here to stay. It's a unique opportunity to create wealth.”
Nubla is among the NFT holders who have taken advantage of those IP rights. Speaking through an augmented reality filter on his computer that made him look like Nicky Nickels, Nubla said he’s earned some cash by allowing artists to make works based on his Bored Ape, including one artist who sells lapel pins bearing NFT art. A street painting of Nicky also adorns the side of a brick building in Brooklyn—part of a mural by the graffiti artist Masnah, who was paid for his work by NFT holders.
"Nicky Nickels" was featured in a Brooklyn street painting. Photo courtesy of Gene Nubla
When the Florida-based startup Tally Labs launched the Jenkins the Valet project last June, Nubla was one of the 69 lucky people to randomly mint a rare “Yacht” NFT. That allowed him to license his Bored Ape as a character in Strauss’ novel and receive a share of the book’s royalties. Nubla debated selling the Yacht NFT as its value reached six figures, but ultimately decided to keep it and build out Nicky’s IP “just to see where it goes.”
Nubla does see some risk in NFT collections decentralizing their IP; he noted that there isn’t much stopping another Bored Ape holder from using their NFT to promote ideas or views that others may disagree with or find offensive. But like a lot of people involved in the space, he’s enamored with the idea of Web3—a decentralized vision for the internet that runs on blockchain-powered applications.
“It'd be nice to be able to benefit off the royalties of anything that comes off this,” Nubla said of the Strauss novel, which is coming out this summer. “But I'm doing it mainly just for the vibes.”
- Seth Green, Bored Ape NFTs and Intellectual Property - dot.LA ›
- WME's Newest Clients Are A Pair Of Bored Ape NFTs - dot.LA ›
- Beverage Startups Are Using NFTs to Build Their Brands - dot.LA ›