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What Are LA’s Hottest Startups of 2022? See Who VCs Picked in dot.LA’s Annual Survey
05:00 AM | January 31, 2022
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.
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.
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.
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
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.
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 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 produces docuseries, books, comedy albums and podcasts. The media company’s efforts include the Netflix travel series “Down To Earth with Zac Efron.”
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.
Sherman Oaks-based Papaya looks to make it easier to pay “any” bill—from hospital bills to parking tickets—via its mobile app.
Based in Marina del Rey, LeaseLock says it’s on a mission to eliminate security deposits for apartment renters.
Emotive sells text message-focused marketing tools to ecommerce firms like underwear brand Parade and men's grooming company Beardbrand.
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 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 develops physical security software. Its investors include former Twitter executive Dick Costollo and NBA star Steph Curry’s Penny Jar Capital.
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.
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.
Founded by Crowdstrike and Microsoft alums, Open Raven aims to protect user data. The cybersecurity firm’s investors include Kleiner Perkins and Upfront Ventures.
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 creates NFTs for musicians under the name Unblocked. Its investors include Jay Z’s Marcy Venture Partners and Shawn Mendez.
Backed by Mayo Clinic Ventures, Safe Health develops telehealth software and offers tools for enterprises to launch their own health care apps.
Intro’s app lets you book video calls with experts—from celebrity stylists, to astrologists, to investors.
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.
With a focus on sustainability, Ettitude is a direct-to-consumer brand that sells bedding, bathroom textiles and sleepwear.
Along similar lines as Unblocked, Afterparty creates NFTs for artists and content creators such as Clay Perry and Tropix.
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 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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08:14 AM | October 31, 2022
photo by Decerry Donato
Nick, a former inmate, has been living in the Hilda L. Solis Care First Village (HSCFV), a permanent supportive housing complex built by CRATE Modular using 66 retrofitted shipping container units, for a little over a year.
Without this housing complex, Nick would be among the 66,436 people currently experiencing homelessness in Los Angeles County.
The supporting housing complex was completed in April 2021 and is located in Downtown Los Angeles. A month after the $57 million project was finished, each room was completely occupied.
Founded in 2018, CRATE Modular began its business repurposing single-use shipping containers to build supportive housing complexes, schools, and bed and breakfasts, among others.
“I looked at where the modular market is, and where it makes the most sense,” CEO Rich Rozycki says. “California is probably the number one if not close to the number one market for modular construction.”
To date, the company has completed over 30 projects using repurposed shipping containers, a majority of which were privately funded through traditional lenders. But since affordable housing projects are funded through grants, tax credits or bonds, Rozycki says it typically takes more time to close a transaction and ultimately deliver an affordable unit to market.
But since CRATE is part of the factory-built housing program (FBH), which provides California residents with reduced housing costs, CRATE says it can typically receive approval on building plans in two to five business days depending on the project.
“There's so much work that needs to be put in place, not only in Southern California, but, Central and Northern California, Rozycki says, “and if you think about the other metro areas that are bordering California that are experiencing rapid growth, and some of the same issues that we're experiencing here, we're perfectly positioned to deliver solutions into Arizona, Nevada and Oregon.”
CRATE Modular's repurposed shipping containers at Hilda L. Solis Care First Village. Photo by Decerry Donato
But not everyone is convinced the modular approach to building supportive housing is the solution to Los Angeles’s houselessness woes.
“I think modular is one solution to building permanent supportive housing,” said PATH Ventures CEO Joel John Roberts. “However, it is not a ‘magic solution.’” Roberts points to the fact that getting affordable housing projects in CRATE’s pipeline is tricky since the modular company has a variety of projects it’s working on. Adding, however that if PATH Ventures can enter this pipeline, then the build time will decrease and the number of individuals they can house will increase.
Nonetheless, with the launch of its new cold-formed steel methodology, CRATE is optimistic they can meet these needs. The modular company began its next affordable housing project in February: a 47-unit permanent supportive housing complex in Koreatown that will house individuals in Los Angeles experiencing homelessness.
man at work at CRATE Modular Photo by Decerry Donato
Currently, using their new development method, it takes roughly seven days to build a module. But according to Rozycki, the company’s goal by the end of the year is to get to a point where they are building three modules a day, with hopes of building four to five modules a day in 2023. In that sense, Rozycki says, “we’re doing for the building sector what Henry Ford did for automobile production.”
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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.
08:00 AM | October 21, 2022
Anasofia Gomez spends her early mornings filming herself journaling, picking up coffee and getting ready for the day. By 9 a.m., she’s ready to start her full-time job as a social media marketer.
The Los Angeles-based creator is just one of the 53% of non-professional creators in the United States who maintain a full-time job while also creating monetized content. Colloquially speaking, Gomez is considered a micro-influencer—creators with followers that range from 1,000 to 100,000.
Gomez treats her content creation as a second job: she starts her day at 6 a.m. just to film her content, which often features her outfits and local recommendations, and ends her days at 11 p.m. by posting her daily video. This level of dedication has earned Gomez almost 38,000 TikTok followers and partnerships with brands like perfume company Dossier and FitOn—a fitness app.
Jon Davids, the CEO of influencer marketing company Influicity, says brands often partner with micro-influencers to create a larger volume of content. Similar to their partnerships with normal influencers, companies will send micro-influencers free products in exchange for a promotional video. Depending on the influencer, some companies will pay over $200 per video.
The difference, of course, is that since companies can pay micro-influencers less, they’ll get more content for their money. For example, he says a mega-influencer may charge $5,000 for one video, while companies can take that same budget and work with roughly 30 micro-influencers.
“You can get lots and lots and lots of content without paying massive amounts of money for it,” Davids says. “And, frankly, the supply is just there.”
But Gomez says the money is often inconsistent. A month-long deal can briefly boost her income, but that doesn’t guarantee a partnership for the upcoming months. The inconsistency isn’t without its benefits, however. Gomez says that since she doesn’t rely on these partnerships for income, she can be more particular about what companies she works with.
Gomez has even turned her micro-influencing, work-life balance into content. Her series documenting her attempts to make the most of her time outside of work has taken off. Gomez’s first video about her “promise to get off the couch and seize life” has over 10 thousand likes. As such, she’s since maintained a series of videos focused on how she uses her time outside of work.
In fact, the “5 to 9” trend, which features people showing off their detailed routines before and after work, often with homemade meals and elaborate skincare routines, can get creators thousands of views. Other micro-influencers highlight content specifically about their careers: lawyers translate legal jargon, nurses discuss their work hours and teachers share their classroom management strategies. Which is to say, for many non-professional creators, quitting their full-time job would likely alter their content and potentially alienate their audience.
To that end, Davids says, these niche communities, such as influencers who make content about engineering or waste management, are often where micro-influencers thrive.
“The micro-influencers that we have today really didn't exist five or six years ago,” Davids says. “People who had very, very small audiences on social weren’t doing it to have any kind of professional presence—they were just kind of creating content for their friends and family.”
Which is why, Davids adds, amateur content creators can actively engage their followers on a more personable level than many mega-influencers.
Nonetheless, Gomez has thought about pursuing content creation full-time. But, she finds that she enjoys the security her traditional job provides compared to the lack of financial consistency from her influencing endeavors.
“You just never know what the future is with social,” Gomez says. “I think you really do have to be in a really good place [financially] to be able to say, ‘I'm going to quit my job and just do content creation.’” Amen.
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Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
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