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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.
Photo by Christian Wiediger on Unsplash
Amazon Studios is pledging that by 2024 half of all top-line roles – directors, writers, producers – in their movies and shows will be composed of women and underrepresented groups.
The Culver City studio released a new "Inclusion Policy" on Wednesday aimed at improving representation of women, people of color and other minority groups in its films and series. The effort comes as its parent, retail behemoth Amazon, acquired MGM Studios and is attempting to address longstanding criticisms of Hollywood's lack of inclusion.
But Amazon itself is catching heat for reportedly discriminating against its employees.
Darnell Hunt, dean of social sciences at UCLA and an author of the annual Hollywood Diversity Report, called Amazon Studios' new guidelines "an important piece of a larger holistic approach" to making lasting change in Hollywood. But, he said, that doesn't address the culture within Amazon proper, and how diversity, equity and inclusion are embedded into the company's daily operations.
"How does it affect executive duties at Amazon, the people making the core decisions from the very top that impact the way people throughout the organization are thinking about what the values of Amazon are?" Hunt said.
Amazon did not reply to a request for comment.
According to the Hollywood Diversity Report out of UCLA, women made up just 26% of film writers and about 21% of directors last year. People of color made up nearly 26% of film writers in 2020. There are also disproportionately fewer women and people of color directing films with budgets over $100 million, the report found.
Amazon Studios said in a statement that the new guidelines are stricter than the diversity requirements put forth last year by the Academy, which runs the Oscar Awards and has faced mounting criticism centered around a rallying cry of "OscarsSoWhite."
Starting in 2022, films vying for the Academy of Motion Picture Arts and Science's "best picture" award must submit confidential "inclusion" data; and by 2024 they must adhere to specific diversity standards, which have been both lauded and criticized for being too lenient.
Amazon Studios' new guidelines include the following specific goals for its productions:
- Each film or series with a creative team of three or more "above-the-line" roles – directors, writers, producers – "should ideally include a minimum 30% women and 30% members of an underrepresented racial ethnic/group."
- Actors' real-life identities should align with those of their characters.
- At least one character should have a speaking role from each of the following categories: LGBTQIA+, person with a disability, and three "regionally underrepresented race/ethnic/cultural groups." One character can fulfill one or more of these identities, and a minimum of 50% of them should be women.
- Seeking bids from woman-owned and minority-owned vendors and suppliers.
- Pay equity across casting, crew and suppliers.
Among the advisors who helped Amazon Studios develop its new guidelines were representatives from the USC Annenberg Inclusion Initiative, a think tank that studies diversity and inclusion in entertainment.
"Frankly, the outcomes of [diversity equity and inclusion] work within the entertainment industry have not been swift or sweeping. In part, that can be attributed to disingenuous approaches to address the systemic barriers to entry that have long plagued Hollywood," said Stacy Smith, founder and director of the Annenberg Inclusion Initiative, in a statement. "But now, Amazon Studios has created a comprehensive new blueprint that will change Hollywood by elevating those who have historically lacked access. I'm immensely proud of this new policy and I know it will be a gamechanger throughout an industry often resistant to real change."
Little was divulged by Amazon about how it plans to enforce the new guidelines.
"You have to incentivize people to do the right thing," Hunt said. "You can do it with a carrot or with a stick. I'd want to see a conversation about that."
Editor's note: This story has been updated to clarify the breadth of the studio's new policy.
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Sam Blake
Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake
https://twitter.com/hisamblake
samblake@dot.la
Snapchat Launches Web Version To Bring Messaging to Computers
09:10 AM | July 18, 2022
Photo by Souvik Banerjee on Unsplash
Snapchat is finally available on your laptop, but you’ll initially have to pay for it.
Santa Monica-based Snap announced Monday that it’s bringing the social media app’s messaging and video features to web browsers, starting with members of the company’s paid subscription plan, Snapchat Plus. The new product comes a couple weeks after Snap launched the $3.99 per month subscription tier.
Snapchat for Web—which can be found at web.snapchat.com—lets users video call or text chat from their computers. Familiar features from the mobile app’s messaging function are included, and Snapchatters can send Snaps directly from their computer, too. Eventually, Snap will incorporate its augmented reality Lenses, which can turn people bald or make them look like they’re crying, into video calls on laptops, the company said. (Disclosure: Snap is an investor in dot.LA).
Snapchat for Web will “soon” be available for all Snapchat users, though there’s no date yet for the global roll out, a company spokesperson said. For now, only Snapchat Plus subscribers can access the web version using Google Chrome browsers. Snap expects it to become available on additional browsers in the future.
Snapchat is a late entrant to the web. Social media rivals like Facebook and Twitter have long had web versions in addition to their mobile apps, and messaging apps such as WhatsApp or Slack have let people send messages from both mobile devices and computers.
“We’re excited to offer a new way for our community to keep conversations going on their computers, where they’re already working, learning, and browsing,” the company said in a press release.
Snapchat for Web marks the first major feature to come to Snapchat Plus, which provides users with “exclusive, experimental and pre-release features.” Previous features include the ability to customize the style of app’s icon, pin a “BFF” to the top of their chat history and see which users have rewatched a story.
The subscription service could bring a new revenue stream for a company that’s grappled with disruptions to its core digital ad business. In May, Snap warned that it would miss its earnings targets for the second quarter, and the company’s share price is down nearly 70% this year.
We’ll find out exactly how bad (or not) the second quarter actually went on Thursday, when the company details its financial results.
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Christian Hetrick
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
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