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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From NFTs to augmented reality and streaming services, a new frontier reshaping entertainment and technology has exploded in Los Angeles. It's ripe with media talent and fueled by venture capital.
Dot.LA will explore that intersection of media and tech during our inaugural Intersect summit. We'll be talking to Los Angeles executives, entrepreneurs and investors at the forefront about trends moving the industry.
The event kicks off Wednesday with a keynote address from the CEO of Kevin Hart's Laugh Out Loud Productions and concludes with a pitch competition featuring three SoCal startups. Join the live event by applying to attend at the Intersect site. Follow us here for coverage.
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The Live Events Industry Braces For a New Normal, and a 'Roaring' Return to In-Person
As more people get vaccinated, venues and stadiums are opening up, leaving a looming question: what will events look like in the future?
Leaders in the entertainment and event space said events in the near term will be hybrid, with organizers ensuring attendees feel and are safe. The industry is hoping that those watching at home will see others experiencing the in-person event, and become more comfortable with the idea of returning in person.
While some companies have found success in remote events, panelists said, it isn't equivalent to standing shoulder-to-shoulder with friends and strangers on the concert hall floor as they're experiencing their favorite artists.
"I'm looking forward for live to come back," said Robert Ellin, founder, CEO and chairman of LiveXLive.
LiveXLive will be testing the waters for its return to live events in June with an in-person matchup in Miami called "Social Gloves," which will pit YouTubers against TikTokers in the boxing ring. It will also be livestreamed.
VidCon will return as a live event in October in Anaheim. It's also selling digital tickets for remote access.
"I know they're going to enjoy the experience so much they're going to want to go to a VidCon somewhere else around the world when it comes near them in '22 or '23," Jim Louderback, GM and senior vice president of VidCon at Viacom, said of at-home viewers.
Ellin said he feels like we are moving into the Roaring 20s based on his experience of the excitement in Miami.
"We're all in the digital space right now," he said. "No matter what we do, the live experience is nothing like it. You're actually interacting with people and so there's going to be audiences."
In Los Angeles, SoFi stadium will host Vaxx Live on May 8, a charity concert featuring Selena Gomez. Organizers said it will host thousands of fully vaccinated frontline health care and essential workers.
Even as things return, more or less, to normal, industry insiders say the future live events will use more technology than it once did, including touchless purchasing at the ticket booth and concession stand, as well as more virtual and augmented reality experiences.
Louderback said at VidCon they're thinking of ways to incorporate those technologies, maybe a scavenger hunt or secret party through AR.
"I think there's really creative unique ways to integrate them," he said. "I think we all have to be thinking about those and those special ways to make it more interesting," he said.
Ellin said Social Gloves will feature NFTs in the form of a digital card, but also a physical card.
"As you can touch it and feel it, you're going to want to really have a responsibility of protecting those assets long term," he said.
When it comes to touchless technology at venues or processes like mobile ordering and individual packaging, Wroan said it might seem cumbersome and costly upfront, but it will put more people in seats.
"I think, once they're up and running, we're actually going to be more efficient — probably in the long run, better," she said. "Part of it, too, is just people feeling confident and safe to get off the couch and come experience a live event."
Snap Inc’s AR Play
Snap Inc. is placing big bets on AR technology.
Last year, it announced a $3.5 million fund for augmented reality (AR) creators building their own lenses for the app.
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