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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In this installment of dot.LA Dives In, we talk with Christoph Bertsch, founder and CEO of Vejo, producer of the "smart," eco-friendly, pod-based blender. As he was building the company, Bertsch says he pulled together a team of doctors and nutritionists to help design specialized wellness programs in a system called Vejo+. The system, he says, uses individual data to develop personalized blends based on each member's goals and individualized lab tests.
Bertsch created Vejo first for high-level athletes and Olympic competitors to help them improve their performance and play at their best. Those early users include Kevin Love (NBA), Todd Gurley (NFL), Conor Dwyer (Olympic Gold Medalist in swimming), Manchester City Football Club, as well as celebrities Zac Efron, Hugh Jackman, Kevin Costner, and Vin Diesel who use Vejo+ to prep for movies and as part of their daily routines. Some believe so much in the results, they invested in Bertsch's vision.
"When you ask Kevin (Love) today how he feels, and how long he actually wants to play, he says 'Listen, I feel like I'm 23,'" Bertsch says. "So Kevin did the program, liked it so much, we just got his bloodwork in such a different place. He came back and said 'Hey guys, I see it, it works in my system, and I want to be a part of the company.' So he became a shareholder."
But Vejo is not just for the elite athlete or actor. Bertsch says he designed the product with the aim of helping anyone achieve an optimal balance through its personalized nutrition recommendations. He laments how many people consume supplements without knowing what deficiencies they need to manage for, or worse - indulge in an unhealthy diet, expecting wonder pills to cancel out the negative effects. Bertsch emphasizes that optimal health and longevity are achievable even for the average consumer. How? Through data.
"Everything somehow has to be based on data," Bertsch says. "The data, which we have already from people who checked in and we transformed them... The knowledge which we have is huge, and just grows everyday."
With Vejo, Bertsch says he hopes to create a positive impact for his consumers, but also for the planet. Vejo's pods are 100% biodegradable. In collaboration with his European partners, Bertsch has been developing a water-soluble pod solution for the past few years.
"I never wanted to create a company which does not live in alignment with the planet," Bertsch says. "Once this is out there, and you have the device which is a reusable bottle, you have a pod which leaves no waste behind and it's single serve so there is no food waste, you have a solution which is quite cool."
Bertsch also hopes to utilize Vejo to give back to the community. The pandemic saw the company grow 5 times its size. Vejo launched the "Nourish Our Heroes" program to support frontline workers. For every blender a customer donates to those fighting the COVID-19 pandemic, the company will match 150% of value in its nutrient pods.
"We are just happy that we can play a little part in supporting the community. And we still do it - this topic is not over, it's ongoing. I think that is the most important thing for the DNA of Vejo. If we start something, we are very consistent."
Watch the full interview here:
Democratizing Nutrition Through Data with Vejo Founder & CEO
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Kelly O'Grady runs video and serves as the chief host & correspondent for dot.LA. Find her on Instagram @kfogrady and email her at kelly@dot.LA.
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