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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.
Luxurious Second Home Ownership without the Headache: How Pacaso is Changing the Landscape of Real Estate
12:36 PM | September 27, 2024
🔦 Spotlight
Pacaso addresses the pain points of second home ownership, offering a luxurious, flexible, and financially sound alternative to traditional second homes and ultra-luxury hotels. Co-founded in 2020 by entrepreneur Austin Allison and former Zillow executive and prominent LA tech figure Spencer Rascoff, Pacaso, an unicorn startup, has redefined vacation home ownership with its unique co-ownership model. Rascoff's contributions to the LA tech scene extend beyond real estate; he also founded 75 & Sunny, an LA-based startup studio and venture fund, and co-founded dot.LA, an LA tech news and events company.
LA residents adore Pacaso for its lush vacation destinations that also make for smart investments. Pacaso offers everything from serene weekend getaways in Aspen to sophisticated escapes in Paris. Each residence, valued between $200k to over $2M for 1/8th, boasts meticulous design, high-end furnishings, and premium amenities. Unlike traditional second home ownership, which involves high costs, maintenance, and underutilization, or ultra-luxury hotels, which lack the personal touch and investment potential, Pacaso's co-ownership model offers a superior solution. Co-owners enjoy the benefits of a high-end vacation home without the full financial burden and hassle of sole ownership, making it a smarter and more flexible choice for discerning buyers.
Image Source: Pacaso
Cabo, Mexico
$822,000 (1/8th ownership)
5 bds. l 5 ba. l 4,969 sq ft
Image Source: Pacaso
Paris, France
$600,000 (1/8th ownership)
2 bds. l 2.5 ba. l 1,410 sq ft
Image Source: Pacaso
Malibu, California
$750,000 (1/8th ownership)
3 bds. l 3 ba. l 1,880 sq ft
Image Source: Pacaso
Park City, Utah
$755,000 (1/8th ownership)
4 bds. l 4.5 ba. l 2,584 sq ft
Head to Pacaso to learn more about its innovative co-ownership model that addresses the common challenges of second home ownership!
🤝 Venture Deals
LA Companies
- Oak Essentials, the natural skincare brand founded by Jenni Kayne, has raised an undisclosed amount in Series A Funding from Silas Capital and Unilever Ventures. This investment will drive the brand’s expansion, focusing on product development, boosting marketing efforts, and expanding distribution channels. - learn more
- Playhouse MD, an upcoming children’s healthcare platform that incorporates play to enhance health outcomes, has raised $4M in funding, according to a recent SEC filing. - learn more
- FluidLogic, a high-performance hydration system provider, raised $15M in a Series A Extension led by Solyco Capital to support product development and innovation for adventure sports and outdoor endurance categories, with consumer products launching in early 2025. - learn more
- Reflect Orbital, which uses in-space reflectors to direct sunlight to solar farms and large-scale lighting applications after sunset, has raised $6.5M in seed funding led by Sequoia Capital. The funding will help the company develop production vehicles and expand its team as it builds space-based energy infrastructure. - learn more
- Feno, a Los Angeles-based company developing an AI-powered energy trading platform, raised $6M in seed funding led by Bold Capital Partners. - learn more
LA Venture Funds
- Finality Capital led a $4M Pre-Seed Funding Round for Octra, a pioneering blockchain network focused on Fully Homomorphic Encryption (FHE). - learn more
- Smash Capital led a €20M Series B round into Vilnius-based Ovoko, an e-commerce platform for buying and selling used car parts across Europe, marking Smash Capital's first investment in Lithuania. The funds will support Ovoko's product development, market expansion, and team growth as it aims to dominate the European market for second-hand automotive components. - learn more
- M13 led a $9M Series A Funding Round for Zenlytic, the world’s first self-serve business intelligence platform. - learn more
LA Exits
- Donut Digital, a Manhattan Beach creative-led performance marketing agency, agreed to be acquired by New Engen, a leading digital marketing agency. - learn more
- National Emblem Inc., a renowned manufacturer of emblems and specialty products, has been acquired by Enrich Enterprises Inc., which will now operate under the National Emblem tradename. - learn more
- Continuum Global Solutions’ healthcare vertical has been acquired by Everise, a customer service management company, enhancing Everise’s capabilities in pharmacy benefit management and expanding its growth prospects in the healthcare sector. - learn more
- Radical Semiconductor, a company specializing in processing-in-memory technology, has been acquired by BTQ Technologies, a leader in post-quantum cryptography. This acquisition strengthens BTQ’s ability to secure data in the post-quantum era by integrating Radical Semiconductor's advanced technology portfolio. - learn more
- Subrosa Digital, a full service digital marketing and consulting agency, was acquired by Navio Networks, a leading CTV operator in Free Ad-supported Streaming TV (FAST). - learn more
Read moreShow less
Superpedestrian Will Add Another 1500 LINK Scooters to LA Streets
01:29 PM | January 26, 2022
Image courtesy of Zac Estrada
While the electric scooter market might appear flooded based on how many of the vehicles are scattered along sidewalks in major U.S. cities, there is yet another company on the block trying to make the case for alternative mobility solutions across the country, including here in Los Angeles.
Founded in Cambridge, Mass., in 2013, transportation robotics startup Superpedestrian launched its LINK e-scooter network in its hometown (which is also home to Harvard and MIT) in early 2020—just as the coronavirus pandemic put the brakes on demand for shared services like ride-sharing, bike-sharing and, of course, e-scooters.
That may have helped LINK gain a footing in L.A. and other locales, however, as Superpedestrian has now expanded the service to nearly 50 cities around the world.
“At the beginning of the pandemic there were a lot of people who went out and bought their own cars because they thought it would be a safer way to get around,” Superpedestrian policy and business development manager Sharon Zhang told dot.LA. “But now they’re seeing how much it costs to own a car.”
Superpedestrian’s LINK scooters arrived in L.A. in August 2021 through a program with the city’s Department of Transportation. There are currently about 3,500 of the company’s electric scooters dotted around the city—from Downtown to the San Fernando Valley and in neighborhoods like Koreatown, Eagle Rock and Highland Park—and LINK plans to ramp up to 5,000 scooters on city streets this year. Superpedestrian has also parked some of the scooters around USC and UCLA, in the hopes of building ridership among college students.
Superpedestrian deployed its first vehicles in neighborhoods that it identified as either popular for other e-scooter companies, or as having less-than-adequate bus or light-rail service and ripe for micromobility solutions. While LINK initially appealed to recreational riders, it’s increasingly being used by riders to commute to work and school or to connect with other transportation options, according to Zhang. LINK says the average scooter ride in the city is 1.4 miles and less than 15 minutes long. (Rides cost $1 to unlock the scooter, plus 39 cents per minute.) So far, the company has attracted more than 400,000 rides in L.A. covering over 540,000 miles.
Of course, LINK has to compete in a crowded e-scooter market that has exploded in popularity since the mid-2010s. The L.A. area is dominated by Santa Monica-based Bird, which went public through an SPAC deal last year, and San Francisco-based Lime. Ride-hailing companies Uber and Lyft have also stepped into the market—though Ford-backed Spin announced this month that it was “beginning to exit nearly all open permit markets globally” in a bid for profitability. There are also various bike-sharing services to account for, like the one run through L.A.’s Metro system.
“We’ve been asked in other markets why we’d want to be there when there were 6 or 7 other [e-scooter] companies,” Zhang said.
The ace up LINK’s sleeve, she noted, is that Superpedestrian designed and manufactured its own scooters, rather than outsourcing to a third-party company as some of its competitors do. Superpedestrian engineered the LINK scooters to be larger and heavier than some competing models; that makes them more stable on pothole-stricken streets and allows for a larger battery than other scooters, with an estimated 61-mile range in typical conditions.
Zhang said the reinforced chassis on the scooters not only provides stability but also lowers the costs of deploying them. Superpedestrian uses its own staff to charge and service the scooters—rather than employing contract or gig workers—at two L.A.-area facilities. That staff, part of a roughly 55-person team that the company employs in the area, can swap out different parts that might be damaged, rather than scrapping the whole scooter. And while the scooters are expected to last for several years on the streets, their batteries are expected to outlive other hardware pieces and can be reused with new scooters.
Vandalism is still the largest threat to LINK’s scooter fleet. Superpedestrian said they’ve received reports of the vehicles being recovered from across state lines and, in some cases, after being thrown into water; in the latter instance, some of the scooters were able to dry out and still function.
Superpedestrian also leans on its “vehicle intelligence” technology to run more than 1,000 system checks on individual scooters, which can inform technicians whether there’s a low charge level or power delivery and braking problems. Its system can also determine if a scooter is left in an unsafe location—such as blocking a sidewalk or access point—or if it’s entering an area where e-scooters are banned, in which case it will flash lights on its handlebars before eventually coming to a stop.
Later this year, Superpedestrian plans to incorporate a pedestrian defense system, which it says can determine if riders are on the sidewalk when they shouldn’t be or violating other traffic laws based on regulations. The scooters, which can reach speeds of up to 20 miles per hour, are regulated to a 15-mile-per-hour maximum, and are slowed even more when the scooter’s sensors detect it is entering a no-ride zone, such as Dodger Stadium.
Zhang said Superpedestrian is encouraged by the inroads LINK has made in L.A. and is looking to expand to other markets. In California, LINK also operates in San Diego and Bay Area cities including Oakland and San Jose.
But with e-scooters having rubbed many local communities the wrong way, Zhang added that LINK and other micromobility operators need more buy-in from stakeholders beyond city government officials. That includes not just city councils and local transportation departments, but also neighborhood councils and colleges and universities.
“Our goal is to continue to expand,” Zhang said. “L.A. is an open market for e-scooter permits, though—and the whole area can be like swiss cheese in terms of regulations.”
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- Unagi E-Scooter Subscriptions Are Expanding in Los Angeles - dot.LA ›
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Zac Estrada
Zac Estrada is a reporter covering transportation, technology and policy. A former reporter for The Verge and Jalopnik, his work has also appeared in Automobile Magazine, Autoweek, Pacific Standard, Boston.com and BLAC Detroit. A native of Southern California, he is a graduate of Northeastern University in Boston. You can find him on Twitter at @zacestrada.
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