impulse space

impulse space

Photo: Impulse Space

Building a spacecraft is no simple feat. Which is why historically, most manufacturers have opted to contract outside firms to handle constructing parts of their rockets, sacrificing in-house oversight for speed as they rush towards lucrative contracts to stay afloat.

But SpaceX’s track record of launches has inspired other startups to build their own spacecraft in-house. The company proved it could make vertical integration work, and that by controlling all facets of the product’s life cycle – all the way from design to assembly to testing and launch –it could drive down costs because the company’s divisions were sharing infrastructure and equipment.

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Evan Xie

Los Angeles, like the rest of the startup world, saw a dip in global venture funding. As of November 2022, funding reached $22 billion, which is 69% lower than the previous year.

Despite the massive downturn in funding due to the decline in technology stocks at the end of 2021 combined with concerns about rising inflation, it did not stop the startups on this list from raising funding. We asked more than 30 leading L.A.-based investors for their take on the hottest firms in the region. (We also asked VCs not to pick any of their own portfolio companies, and vetted the list to ensure they stuck to that rule.)

They selected a few live-shopping platforms, space startups and payment software companies and we've organized the list based on the amount of capital raised as of January, according to data from PitchBook.

Here are the eight L.A. startups VCs have their eyes on as they look ahead to 2023.

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