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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Evan Xie
Front Porch noted in its recent report on the test program that its dining services have been “particularly hit hard” during the COVID-19 pandemic, and the organization is hoping to keep its remaining staff from burning out by supplementing their shifts with robot busboys (busbots?).
Here’s a glimpse at what the tech looks like: Servi robots have three shelves to stack dishes and can handle up to seven entrees depending on plate size, can carry up to 66 pounds, and they’re designed to be relatively compact–17 inches wide and about three and a half feet tall. A smaller version, the Servi Mini, can carry 2 trays, while its larger counterpart, Servi Plus, can handle up to 10 plates at once.
Hospitality robots are still a novelty, especially in North America. But as costs to produce critical components of these bots come down and more stressed restaurant managers see the cost-benefit analysis swing in their favor, that could change.
“The innovation that's happening within the food service industry is really impressive. This will likely become much more commonplace,” Bear Robotics’ co-founder and Chief Operating Officer Juan Higueros told dot.LA.
The goal is not to replace servers with Servi, but allow them to spend more time taking orders and interacting with the senior home residents, Higueros said. Bearing in mind that loneliness can be fatal for our aging population, and that coronavirus only further isolated people, it’s easy to see how for an elderly person living alone, even an extra five minutes chatting with someone at lunch could change the tune of their day.
Image courtesy of Bear Robotics
Every robot has sensors and three cameras that network with its AI brain to help steer itself and avoid obstacles, and an auto-return feature sends it back to its place in the kitchen when jobs are done.
In addition to Front Porch, Servi robots are currently deployed at a number of places across California, including Downtown L.A.-based restaurant Chiguacle Sabor Ancestral de Mexico, Ten-Raku Korean barbeque in Lynwood, John’s Incredible Pizza in Carson and a Denny’s location in Hawthorne.
“We do think that the United States is probably going to become the biggest market for us over the course of the next couple of years,” said Higueros. “A lot of folks see the ROI because obviously [they] have tremendous turnover,” said Higueros. “It’s kind of like an insurance policy in the sense that you at least have the food runner in place, in case they decide to leave you on a Friday night.”
Not to mention, the cost. At $25 to $30 per day the robots cost a fraction of the typical salary of a person working at a nursing home. For its part, Front Porch saved $6,665 on overtime in one month.
“In the past we would have asked a staff member to come back for a split shift after working the morning shift. Now we run with the labor we got with the support of the robots,” Front Porch noted.
Two other senior living centers not affiliated with Front Porch in L.A. are also using Servi robots: Regency Grand of Cascade Senior Living in West Covina and Merrill Gardens at Rolling Hills in Rancho Palos Verdes. Hotels also use them, some Marriott and Hyatt locations employ the robots now. In total the company has Servis active in 43 states, and aims to expand to all 50 by next year. With plans to deploy more in casinos and airline lounges all over the country.
A crucial step towards even furher adoption of waiter bots depends on how customers respond. As a 2021 Boston University Hospitality Review report noted, “consumers’ acceptance of service robots is determined not only by its functionality (e.g., perceived usefulness and ease of use), but also by social-emotional and relational elements that robots can provide.” In other words, any interaction that leaves a guest unsettled could be a setback. But, in Servi’s case, since it doesn’t mimic any humanoid features, its existence in a support capacity to human staff is more tolerable.
More than half of the residents at the communities that piloted Servi bots said it felt like the robots let them have more quality time with staff. 65.4% of residents told Front Porch the robots improved their overall dining experience. One resident anonymously surveyed said the robot was “much cuter than I thought it was going to be.” Another added there were “originally many naysayers, the chair of the committee really pushed for it [and] complainers have been won over.”
Some servers, however, found hiccups. Several noted that they felt the robots were too slow.
“At first it was great/ helpful; first courses are great, but when they couldn’t talk to each other, it got frustrating,” one server wrote. Others reported their job being “less painful” since the robots helped mitigate some of the physical labor that comes with the job.
There were, of course, some glitches too. Sometimes bumpy carpets would cause the robots to spill food. A server noted, “one robot gets lost sometimes.” Servers suggested that Bear Robotics make the robots louder, as one person saw that a robot “got very close to a resident that was walking very slowly,” but avoided a collision. But by and large the feedback was positive. One server said they wished the Servi robots were bigger so they could “fit an entire table’s worth of food without worrying about it tipping over.” Another waiter joked that the Servi could only be improved by making it able to clean the table for the waiter.
And most importantly, when servers at both senior living facilities were asked how they’d feel if the robots were taken away after the two-month pilot, the recorded response was pretty unanimous: “We’d be screwed.”
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