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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Photo by Thimo Pedersen on Unsplash
What began as a social app for collectors to swap stories and photos has ballooned into a digital stage for live auctions and unboxing videos. Since January, the Los Angeles tech startup has hired some 40 employees and leased a 10,000 square-foot office space in the Marina Arts District.
And on Tuesday — just a few months since its last big boost — the startup closed a $50 million Series B round.
Whatnot recently closed a $50 million Series B round.
"It's probably one of the fastest growing marketplaces we've ever seen," said Y Combinator's Anu Hariharan, who led the round.
It's been over a year since consumers moved online in droves and investors are still sinking millions into retail technology —livestream shopping especially.
L.A.-based Popshop Live was valued at $100 million last fall after an investor bidding war to lead its Series A. Talkshoplive, which hosts celebrities livestreaming about their memoirs and latest albums, scored seed capital in February from a venture firm backed by eBay's founder.
One Pokemon collector dropped $17,500 on a 1st Edition Shining Charizard card during a broadcasted event streamed live on Whatnot.
What gives? Hariharan said U.S. ecommerce has only embraced video in the last three to five years, and now it's everywhere. Even retailers like Home Depot introduced livestream demos and workshops during the pandemic.
Grant Lafontaine, the CEO and co-founder of Whatnot, brought the technology to a niche, well-connected community of online shoppers. He founded the company in 2019 with Logan Head, a former product manager at the online sneaker marketplace GOAT.
Their users are 18 to 32-year-old collectors who spend hours browsing eBay listings but crave something more interactive.
"They're on eBay because they're buying the collectibles, they're on Instagram to show them off," Lafontaine said. "They come to Whatnot because they can do both."
The company got its start as a social platform and marketplace — sans video livestreaming. That function came later, after a steady pool of users made checking Whatnot a daily habit.
"I was the first person to go live," Lafontaine said. "I sold out $5,000 worth of collectibles in two-and-a-half hours. The experience kind of spoke for itself. Anyone who saw it wanted to use it."
Other investors include Andreessen Horowitz, Animal Capital, musicians Ryan Tedder and DJ Skee with Min 10 and NFL players DeAndre Hopkins, Bobby Wagner and Jeremy Padawer. The company has raised $75 million to date.
Whatnot now boasts 15 categories of collectibles, from FunkoPops to sports cards (the most popular category on the app) to a few newer experimental verticals like vintage clothing. Within the next year, Lafontaine said he hopes to hit 30.
"For a young startup, it's always important to start with one or two categories, not with everything," said Hariharan. "What Whatnot has done really well in collectives will help them scale pretty much any product."
The app, she said, is on its way to becoming "eBay 2.0."
A previous version of this story stated Whatnot closed a $40 million Series B Round. The correct amount is $50 million.From Your Site Articles
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🔦 Spotlight
Happy Friday, LA!
Image Source: Waymo
In case you’ve been cooped up indoors or haven’t had a chance to leave the office this week, you might have missed the latest buzz—Waymo’s self-driving cars are now cruising all over LA! That’s right—Waymo One, the autonomous ride-hailing service, has officially expanded citywide, now covering nearly 80 square miles of Los Angeles. After months of testing and a waitlist, Angelenos can now book rides 24/7 in areas stretching from Santa Monica to Hollywood to the USC neighborhood. Early feedback has been overwhelmingly positive, with passengers rating the service 4.7/5. Riders are praising the smooth, safe experience—making it a game-changer for getting around the city, whether it’s for work, errands, or leisure.
Image Source: Snap
Meanwhile, Snapchat is stepping up its game with new features in its Family Center designed to boost family safety and connectivity. Parents can now request their teens' live location on Snap Map, stay informed about their location-sharing settings, and set travel notifications to get alerts when family members arrive or depart from key locations like home or school. These updates give families more control and peace of mind in managing their digital interactions.
🤝 Venture Deals
LA Companies
- Camouflet, an AI-driven platform specializing in real-time pricing optimization, has raised a $3M Seed funding round from private investors to enhance its services. - learn more
- Chaos Industries, a defense tech company specializing in advanced detection and monitoring systems, raised a $145M Series B funding round led by Accel to accelerate its development of critical national security technologies. - learn more
- Radiant, a company specializing in advanced nuclear microreactors, raised a $100M Series C funding round led by DCVC. The funds will be used to complete the Kaleidos Development Unit and conduct testing at Idaho National Laboratory's DOME facility, aiming to bring factory-built microreactors to market. - learn more
- Mundial Media, a company focused on contextual marketing for multicultural audiences, raised a $1.5M Pre-Seed extension round led by new and existing investors, with the funds aimed at advancing their Cadmus AI technology and expanding digital advertising offerings. - learn more
LA Venture Funds
- Joyful Ventures participated in a seed funding round for Meatly, a UK-based company specializing in lab-grown pet food, though the exact amount raised has not been disclosed. - learn more
- B Capital participated in a $200M Series C funding round for Writer, a full-stack generative AI platform that helps enterprises deploy secure and reliable AI solutions to address critical business challenges. - learn more
- LFX Venture Partners participated in a US$30M Series C2 funding round for UniUni, a company transforming last-mile delivery for e-commerce through technology, and plans to use the capital to improve its platform and rapidly grow its operations. - learn more
- Alexandria Venture Investments participated in a $84M Series B funding round for TRexBio, a South San Francisco biotechnology company focused on decoding the immune biology of human tissue to develop groundbreaking therapeutics. - learn more
- Composition Capital participated in a $20M Series B funding round for Arbolus, an expert insights platform that connects investors and consultants with subject matter experts, to support Arbolus's expansion into the U.S. market - learn more
- Type One Ventures co-led a Series A funding round for Lunar Outpost, a company specializing in lunar surface mobility, commercial space robotics, and space resources; the funds will support their active programs. - learn more
- Trousdale Ventures participated in a $29M funding round for Starfish Space, a Seattle-based satellite servicing company that will use the funds to develop and launch its Otter spacecraft, designed to extend the operational life of satellites in geostationary orbit. - learn more
- Plus Capital participated in a $20M Series A funding round for OneSkin, a San Francisco-based biotech company specializing in skin health treatments, with the funds aimed at expanding research, developing new formulas, and growing its presence in the anti-aging skincare industry. The company will also invest in its team and explore new sales channels. - learn more
- Starshot Capital participated in a $10.5M Series A funding round for Ecolectro, a New York City-based green hydrogen company, to support the development of its scalable electrolyzer technology and make green hydrogen more accessible. - learn more
- Navitas Capital participated in a $37M Series B funding round for SwiftConnect, a company that provides connected access solutions for buildings and spaces, to expand its network, scale operations, and support new product initiatives. - learn more
- Edge Case Capital Partners participated in a $1.5M Pre-Seed funding round for TestSprite, an AI platform that automates software testing, to accelerate product development, expand the team, and scale operations. - learn more
- Griffin Gaming Partners led a €17M Seed funding round for BIT ODD, a Finnish gaming studio focused on creating mobile games that prioritize creativity and emotional depth over finance-driven metrics. - learn more
- The K Fund participated in a $20M funding round for Homethrive, a caregiving solutions platform, and the funds will be used to help expand its AI-driven care navigation, improve personalized support, and enhance digital tools to increase engagement across various payer populations. - learn more
LA Exits
- Farm Dog, a Los Angeles-based company that provides a platform with tools to help agronomists streamline their work—offering features for field scouting, document management, and data integration to enhance productivity in agriculture—has been acquired by FarmQA. - learn more
