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 courtesy of Newlight Technologies
Newlight Technologies, founded in 2003, has spent over a decade developing materials the company says produces net zero pollution. They created AirCarbon through replicating natural processes that occur in our oceans.
"Today, we are primarily focused on producing AirCarbon in increasing quantity, bringing it to market through our foodware and fashion brands, and continuing to work with our partners to help increase the speed of our growth both on the supply and application sides," said Mark Herrema, Newlight's chief executive officer.
Consumers and companies' concern over climate change has increased demand for alternatives to plastics and other carbon-based products. The fashion industry, in particular, has come under fire for their heavy production of polyester clothes, which are petroleum-based and don't easily break down.
At their Huntington Beach production facility, Newlight recreates ocean water conditions that are ideal for the microorganisms they later add to thrive and consume dissolved greenhouse gases. They then collect pollutants such as methane gas to feed to the microorganisms. Afterward, the creatures excrete it, and their waste is dried into pellets, which are then melted and made into different materials.
This process produces no carbon waste and no greenhouse gases. In fact, they're actually consumed and do not return to the atmosphere. AirCarbon is also biodegradable, as it was made entirely by natural processes and organisms.
Joseph Greene, a professor of sustainable manufacturing and engineering at California State University, Chico, said he is looking forward to seeing them develop sustainable plastics for other manufacturing companies and industries as well.
"I'm not aware of any other company producing PHA with technology like this," said Greene, referring to polyhydroxyalkanoate, the term for biopolymer materials such as CarbonAir. "I think that Newlight has an excellent opportunity to transform the marketplace with a low-cost biodegradable PHA plastic."
Newlight has been producing straws and cutlery under their Restore brand, which hasn't yet been released, though the company offers pre-ordering online. These products are durable enough to be reused, though they disintegrate over time in ocean water.
Restore is a line of straws and cutlery, a few of the items most commonly found as plastic ocean-bound waste.Photo courtesy of Newlight Technologies.
"AirCarbon can be used to replace plastic and leather in a variety of applications, but we looked to see where we could have the most immediate impact. Since it is natural and ocean-degradable, and since foodware — things like straws, forks, cups, bottles — represent the majority of plastic product types in the ocean, we are focused today on using AirCarbon under our Restore foodware brand to make natural foodware to replace plastic foodware," said Herrema.
Newlight's luxury fashion brand, Covalent, allows consumers to dive into even more detail about the carbon footprint of their purchases. Using the timestamp that marks the day AirCarbon for the product was created, customers can use this "Carbon Date" to access IBM blockchain production history via the Covalent website for their purchase and the carbon footprint related to each part of the production process.
Covalent focuses on eyewear, but offers a line of purses and cases as well.Photo courtesy of Newlight Technologies.
"We have developed a way to use AirCarbon to replace high-performance plastics, like acetate, and also animal and synthetic leather, so we are producing AirCarbon eyewear and AirCarbon Leather goods through our Covalent fashion brand to bring carbon-negative products into fashion, and help try to turn fashion into a force for environmental good," said Herrema.
Newlight's carbon footprints are verified by the Carbon Trust, a third party organization that offers carbon certification services. They found that for every kilogram of AirCarbon produced with renewable methane using Newlight's natural ocean microorganisms, 88 kilograms of carbon dioxide equivalent greenhouse gas are prevented from entering the atmosphere.
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