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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.
Smash Ventures, Backer of Epic Games and Manscaped, Raises $500 Million for New Fund
03:48 PM | January 05, 2022
Photo by Jeremy Bishop on Unsplash
Smash Ventures, a late-stage venture capital firm founded by former Disney executives, has raised $500 million for a new venture fund, according to a regulatory filing with the Securities and Exchange Commission.
Hollywood-based Smash has announced only a handful of tech investments since launching in 2018. The firm, led by co-founders and managing partners Eric Garland and Evan Richter, has backed Fortnite-creator Epic Games, sports betting giant DraftKings, conspicuously named grooming brand Manscaped, and search engine DuckDuckGo.
Smash maintained a relatively low profile until March 2021, when it announced a $75 million fund. At the time, the founders claimed that they had already deployed a total of $500 million in capital.
Nine-figure raises aren’t unusual for late-stage VCs like Smash, and some established names have pushed the envelope further. Venture capital giant Andreessen Horowitz, for example, secured $2.2 billion last year solely to invest in cryptocurrency-related ventures.
Smash Ventures did not respond to a request for comment on the new fund.
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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.
MM.LaFleur's Founder On How to Power Through Self-Doubt
04:54 PM | December 15, 2020
On this episode of the Behind Her Empire podcast, hear from Sarah LaFleur, the founder and CEO of MM.LaFleur, a fashion company creating practical, inspired wardrobes for the modern, professional woman.
LaFleur talks about the winding journey that led her to entrepreneurship and how her business went from having negative $2,000 in their bank account to grow into a multi-million-dollar company. LaFleur says they tripled their revenue overnight from one specific strategy that ended up saving the company. She also talks about how she turned the COVID-19 crisis into an opportunity to define the brand.
Key Takeaways:
- MM.LaFleur was inspired by LaFleur's regular travels when she was working as a consultant, most of which left her clothes wrinkled when she showed up to meet with clients.
- While LaFleur did not have a background in fashion, she was a professional woman who understood the pain points of getting dressed for work. Her partnership with designer and co-founder Miyako Nakamura solidified MM.LaFleur's brand identity.
- To bring in some income while building up her company, LaFleur tutored kids in the evenings, and says she loved focusing on something other than the business while also taking some stress out of not having a regular income stream.
- When MM.LaFleur started out, it had no website nor marketing budget. Instead, the company got the word out about the brand by doing regular trunk shows. It generated a lot of money, buzz and developed direct relationships with her customers.
- It took about 50 investors rejections before LaFleur's mentor, Bob Deutsch — and some of his friends — invested $400,000. It was a pivotal point for the business. Without it, LaFleur believes MM.LaFleur would not be around.
"In this moment of desperation, we said, 'what if we just told our existing customers ...we're going to pick some styles that we think will work for you based on your order history. We'll send them to you and you can decide what you want to keep and what you want to return.' And it was a total last-ditch effort because we just like we're holding on to inventory. Nobody's buying them. When we sent that email, we had more people respond to that email than we ever had in any marketing email ever. We made more money in that one week than we had in any month prior to that. -- Sarah Miyazawa LaFleur
Sarah Miyazawa LaFleur is the founder and CEO of MM.LaFleur. She previously worked at TechnoServe, Starwood Capital and as a consultant at Bain and Company.
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Yasmin Nouri
Yasmin is the host of the "Behind Her Empire" podcast, focused on highlighting self-made women leaders and entrepreneurs and how they tackle their career, money, family and life.
Each episode covers their unique hero's journey and what it really takes to build an empire with key lessons learned along the way. The goal of the series is to empower you to see what's possible & inspire you to create financial freedom in your own life.
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