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In recent years, Techstars Los Angeles managing director Matt Kozlov has witnessed local investors pour more and more capital into health care startups across the region. It’s this sector—not entertainment or the creator economy—that he hopes to spotlight through the startup incubator’s next accelerator program.
Health care, after all, is a difficult market for startups to break into “if you don’t have support of the large institutional players,” said Kozlov, who helped Cedars-Sinai Medical Center launch a health-tech accelerator in partnership with Techstars several years ago.
On Monday, Techstars L.A. officially unveiled its spring 2022 accelerator class—and in line with Kozlov’s belief in the health-tech space’s massive potential, five of the 12 companies involved are developing digital health tools.
The 13-week program will bring early- to mid-stage startups from places as far-flung as London, Singapore and Mauritius to the accelerator’s new offices in Culver City. After meeting with some 250 mentors and potential investors in the Techstars community, the founders will select a core group of “board members” to help them prepare for a demo day where they’ll ideally secure investor capital.
The program offers each startup a $20,000 investment from Techstars L.A. in exchange for a 6% equity stake in their company. By the time it wraps, some founders will have already started fundraising; two companies in the spring 2022 cohort have already closed funding rounds since being accepted, Kozlov noted.
Beyond digital health, the founders selected for the spring class are building hybrid rockets, SaaS companies, proptech applications and services for e-commerce and retail enablement. Kozlov hinted that the accelerator’s next cohort, slated to start in September, will center around Southern California’s booming aerospace industry.
Here are the startups in Techstars L.A.’s Spring 2022 Class:
Aware Health partners with employers to provide muscle, nerve and joint pain care to their employees.
Bean is a marketplace and workflow management platform for accounting services.
Equatorial Space develops hybrid-engine rockets designed to make space launch more affordable.
E-commerce retailers can integrate GoFlyy’s platform to support customers making on-demand deliveries and returns.
Hormona is a digital health startup offering at-home hormone testing and a hormone management platform for women.
Max Retail (formerly SwapRetail) helps independent retailers and brands sell unsold inventory through a market network that includes B2B, B2C and liquidation channels.
Mind-Easy partners with employers to provide their workforce with culturally sensitive mental health resources.
Modal Living designs, manufactures and installs modular backyard dwellings and offices.
Next Generation Quantum is a quantum computing hardware and programming company.
Pear Suite’s cloud-based platform that assesses “social drivers of health” for older adults.
Rwazi is a data services company providing organizations with on-ground data on products, services and activities from Africa.
SQUID iQ is a SaaS company offering hospitals a health care technology management platform for medical devices.
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Whether you are making medical devices or movies, if you have a promising startup chances are there’s someone out there to help.
Southern California is home to an armada of accelerators, incubators, startup studios and other programs designed to help new business owners develop their vision and launch the next billion-dollar business.
Some of these programs are run by investors, who often go on to back the companies they incubate in later rounds. Others were created as a way for existing companies like the Walt Disney Co. or the Los Angeles Dodgers baseball team to mine talent in their backyard for future revenue opportunities. Programs like the LA Cleantech Incubator target companies from across the globe that are developing tech to mitigate the climate crisis.
While some accelerators opt to provide funding outright in exchange for an equity stake, some prefer to not financially invest, and instead offer founders a place to work, access to mentors, and a full calendar of networking opportunities to help them connect to investors who might look to cut a check.
Local companies that grew from accelerators include Dollar Shave Club, which began at Mike Jones’ Science Inc. in Santa Monica and was sold to Unilever for $1 billion in 2016. Bill Gross’ Pasadena-based IdeaLab has also led several startups to big exits, including crypto exchange Coinbase which was valued at $80 billion when it completed an IPO this April.
Most of these accelerators accept applicants from both in and outside LA County, and some offer virtual workshops. Here’s a list of the top programs in LA that are helping new startups get off the ground.
GENERAL TECH ACCELERATORS
AmplifyLA’s accelerator backs early-stage companies that are local to L.A. County. Besides funding them through its accelerator, it works with startups in all industries to connect them to a network of L.A.-based startup founders and investors to raise additional funding once they leave the program. Notable past companies that used AmplifyLA include wine subscription firm Winc and on-demand moving and storage company Clutter.
Location: Venice Beach
Type of Funding: Pre-seed, early stage
Focus: Software, emerging technology companies, D2C brands
Serial entrepreneur Bill Gross founded IdeaLab in 1996, and it’s since backed over 150 companies and seen 45 of those either go public or be sold. IdeaLab backs companies regardless of their growth stage or industry but has a history of backing tech companies focused on environmental or social change. Success stories include robotics firm Elementary, crypto exchange Coinbase and GIF database Tenor.
Location: Pasadena
Type of Funding: All stages, focus on seed and early stage
Focus: Agnostic, focused on any tech company
Techstars is a global outfit with a chapter in Los Angeles that opened in 2017. It prioritizes local companies but will fund some firms based outside of L.A. Director Matt Kozlov said Techstars L.A. looks to fund a wide range of companies but does try to target ones working in industries that are strong in L.A., like healthcare, artificial intelligence, e-commerce, retail, property tech, software as a service, and consumer tech.
Location: Downtown Los Angeles
Type of Funding: Pre-seed, seed rounds
Focus: Aerospace, energy, robotics, wellness, entertainment, mobility/logistics, education
Notable Companies: Sanity Desk, Lightbox
Grid110 offers founders two programs: a 12-week residency program for early-stage startups in L.A. that haven’t launched yet, and another 12-week ‘friends and family’ program run in partnership with L.A.-based venture firm Slauson & Co. that offers a $20,000 grant and course aimed at “demystifying funding” and guiding founders. Unlike some accelerators on this list, Grid110 doesn’t require an equity stake in a company in exchange for participating.
Location: Downtown Los Angeles
Type of Funding: Early stage, seed
Focus: Agnostic, focused on any tech company
Notable Companies: Rent a Romper, Struct Club
Michael Jones’ Science is a venture capital firm focused on funding early stage startups, and it also runs a venture accelerator that’s incubated some big direct-to-consumer brands, including Dollar Shave Club and PlayVS. Founders work out of Science’s campus in downtown Santa Monica where they collaborate with Jones and other entrepreneurial mentors as well as a staff of marketing, tech, and business development professionals to get their idea off the ground. Usually, Science contributes these services in exchange for a board seat and/or equity in a startup.
Location: Santa Monica
Type of Funding: Early stage VC, seed rounds
Focus: Mobile companies, direct-to-consumer, marketplace and e-commerce
Notable Companies: Dollar Shave Club, Liquid Death, PlayVS, Arrive
Santa Monica-based VC Mucker Capital also runs Mucker Lab, its accelerator for startups that are either in their earliest stages of development or looking to grow by spinning off a business unit or revamping their strategy. It invests in an array of tech companies but prefers direct-to-consumer businesses. There’s no set duration for its program, but most founders work with Mucker for at least a year. Mucker invests between $100,000 and $175,000 in companies in exchange for an 8% to 15% equity stake.
Location: Santa Monica
Type of Funding: Pre-seed, or spin-off
Focus: Agnostic, focused on any tech or direct-to-consumer company
Notable Companies: ServiceTitan, Trunk Club, Honey
Law firm Stubbs Alderton & Markiles founded its six month preccelerator program to provide startups with access to other valuable resources besides funding -- including workshops, mentorship and a package of legal services and perks it estimates is worth $500,000. Notable alumni include location-based marketing startup Rally.
Location: Santa Monica
Type of Funding: Doesn’t contribute funding, provides networking, mentorship and legal services
Focus: Agnostic, focused on any tech company
MEDIA & ENTERTAINMENT
One of the world’s largest entertainment companies, Disney is always on the hunt for new investments that can enhance its growing streaming, parks and entertainment businesses. It accepts growth-stage startups that are looking to use tech to change the entertainment industry and runs a three-month summer program that culminates in a demo day in October. Disney will invest in these startups in addition to co-working space in L.A. and mentorship from Disney executives. Though Disney often plans to strike deals to use some startups’ tech in its business, companies that develop IP during the accelerator retain full ownership of it.
Location: Burbank
Type of Funding: Growth stage, venture-backed startups encouraged
Focus: Media/entertainment, streaming, social media, kids’ entertainment
Notable Companies: Epic Games, Holler, Caffeine
Snap Inc.’s Yellow accelerator is a 13-week program for startups developing anything that could enhance digital entertainment, including direct-to-consumer brands, new social apps, creative tools or augmented reality experiences. Snap invests up to $150,000 in each startup and provides a network of creative industry executives as mentors. It invests with the aim of using startup tech in future Snapchat or Snap Inc. projects.
Location: Santa Monica
Type of Funding: Stage agnostic
Focus: Companies at the “intersection of creativity and technology”
AEROSPACE
Starbust Aerospace Accelerator
The Starburst Aerospace Accelerator connects aerospace and defense startups with a network of mentors that help them fundraise and hire. It’s also a way for startups to gain inroads to potentially valuable contracts with the U.S. Department of Defense, which is always looking for the next SpaceX. The company also partners with UCLA's school of engineering to offer a 13 week Scale accelerator program, aimed at seed and pre-seed startups.
Location: Los Angeles
Type of Funding: Doesn’t contribute funding, provides networking, mentorship, fundraising help
Focus: Aerospace, defense
Notable Companies: SeaSatellites, Pierce Aerospace
SPORTS
Los Angeles Dodgers Accelerator
Founded in 2015 as a partnership between R/GA Ventures’ Global Sports Venture Studio and the L.A. Dodgers, this program provides up to $120,000 to local sports-focused startups in exchange for up to 6% equity. Originally for a limited time, the outfit expanded to be a year-round program in 2018.
Location: Los Angeles
Type of Funding: pre-seed, seed
Focus: Sports tech, food and beverage, sports entertainment
Notable Companies: Appetize, ShotTracker
FOCUSED ON STARTUPS BY PEOPLE OF COLOR
Movember is a men’s health charity that encourages people to grow mustaches in November to raise awareness of suicide prevention, testicular and prostate cancer, but it recently launched the Rooted & Rising division to invest in creators. Rooted & Rising backs young Black creators who are creating culture-shifting art and provides them with a network of like-minded mentors and in exchange for creating up to three pieces of content during the three-month program.
Location: Los Angeles
Type of Funding: Individual funds, up to $5,000 each
Focus: Creatives of color
The Starfish Accelerator was created this year to give creative people of color funds and mentorship to create projects. Backed by the Doris Duke Foundation, participants are given a $50,000 grant and access to several mentors for six months to produce their work.
Location: Los Angeles
Type of Funding: Individual funds, up to $50,000 each
Focus: Creative IP, creatives of color
Expert Dojo is an international group with a cohort in Santa Monica. It prioritizes backing women-led startups and companies run by people of color. It invests an initial sum of $25,000 to $100,000 in participating pre-seed and seeded startups, and often invests in follow-on rounds up to $1 million. Local success stories include travel app Elude and influencer booking site Mavens List.
Location: Santa Monica
Type of Funding: Pre-seed, seed
Focus: Tech companies led by women and/or people of color
CLIMATE & CLEAN TECH
LACI’s goal is to fund startups that are both local and global that will create technologies to mitigate the effects of climate change and create greener, smarter cities. It runs several programs including a two year-long incubator where companies work out of its Downtown LA office, and invests in up to 50 startups each year.
Location: Arts District
Type of Funding: Pre-seed, seed, Series A and B
Focus: Clean energy, renewables/sustainability, solar, smart cities
COLLEGE/UNIVERSITY-RUN PROGRAMS
UCLA Anderson Venture Accelerator
UCLA’s venture accelerator is a four-month program that has incubated over 70 companies, which have raised $144 million in funding. Led in part by entrepreneur in residence Rod Kurtz, it helps student and faculty entrepreneurs bring their ideas and research to market.
Location: Westwood
Type of Funding: Doesn’t contribute funding, provides networking and mentorship opportunities
Focus: Agnostic, focused on any tech company. Student, faculty and alumni startups preferred.
Notable Companies: UNest, KPOP Foods
USC’s startup accelerator’s next cohort begins in Spring 2022. It doesn’t take equity, but also doesn’t offer funding -- instead connecting founders with potential investors snad giving them hands-on guidance and access to coworking space.
Location: Marina del Rey
Type of Funding: Doesn’t contribute funding, provides networking and mentorship opportunities
Focus: Deep Technology, Machine Learning and AI. Student, faculty and alumni startups preferred.
HEALTH, WELLNESS & BIOTECH
Founded in 2015, Cedars-Sinai Hospital’s three-month program gives companies up to $100,000 in funding and access to mentors both on the executive and medical sides of the business. It prioritizes startups looking to innovate in patient care, cybersecurity, genetics, machine learning and medical devices.
Location: West Hollywood
Type of Funding: Early/growth stage, seed, Series A.
Focus: Healthcare, Information management, Medical technology
Notable Companies: AppliedVR, CancerAid
CITY & COUNTY-RUN PROGRAMS
Created by Mayor Eric Garcetti in 2016, this program is a nonprofit that supports local businesses with mentorship and networking for funding. Applicants must be based in L.A. County, and all areas of tech are accepted.
Location: Greater Los Angeles
Type of Funding: Doesn’t contribute funding, provides networking and mentorship opportunities
Focus: Hardware, food and agriculture, healthcare/biotech, mobility, aerospace, manufacturing
Founded and fully supported by the City of Long Beach, this accelerator provides seed funding and mentorship and also helps companies plan exit and acquisition strategies. Run by managing director Andrea White-Kjoss, the four-month program gives founders access to $75,000 to $100,000 in exchange for 6-7% equity. The accelerator launched as digital only, but is planning an in-person component soon, pending COVID regulations.
Location: Long Beach
Type of Funding: seed
Focus: Tech startups located in Long Beach
An earlier version of this post also listed the Techstars Aerospace Accelerator, which is no longer in operation.
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Techstars' 2021 class of Los Angeles startups graduates this week as the accelerator comes to a close with its Demo Day.
The 12 companies will show off their work, which ranges from a stroke-detecting wristband made by Alva Health to a social network for stock traders called Cheres and Renno, an app for home renovations. If you're about to go to small claims court and need help filing paperwork, there's an app for that, too – Techstars also backed PeopleClerk, which uses its system to help California residents file in any one of the state's 58 counties.
For the past three months, each company has been working under the guidance of Techstars mentors remotely and at their Culver City offices to develop its final product, which will be shown off to investors and interested potential customers Oct. 14 during an investor showcase at the Petersen Auto Museum.
In addition to each company receiving a $20,000 grant at the onset of the program in exchange for giving Techstars 6% equity in the company, the pitch day is potentially a very valuable opportunity to court new investors and keep the business' momentum going.
Of the dozen companies that have participated in the accelerator, Techstars L.A. Managing Director Matt Kozlov said about half have– or are in the process of closing – funding rounds outside the Techstars model.
"A couple of the companies will have actually already closed rounds by Demo Day, which is pretty exciting," Kozlov said. "Some of the companies are so hot that the deals kind of ran away with themselves before the rest of the world got a chance to meet them, which is great for our founders and we're proud of them."
One of those companies is Sanity Desk, which makes software for small businesses to help them manage marketing and customer service. Sanity Desk CEO Samuel Cook said the company raised $116,000 during the program from investors outside Techstars and $1.9 million since launching in 2019.
Cook said that working with Techstars helped Sanity Desk boost its revenue by focusing on offering its product at a free or discounted price to reel in new customers. He noted Sanity Desk's monthly revenue grew 15% in September and expects the startup to hit $1 million in annual revenue by January 2021.
"The biggest breakthrough we had from the program was learning through our mentors how we could grow our revenue to $1 million in annual recurring revenue before we raised our Seed round," Cook said. "The advice we received in raising and how to raise will greatly increase our valuation at the time we raise. Plus the network and skills we have to raise will make it much easier than it would have been."
The demo day is virtual because of the ongoing coronavirus pandemic, but Techstars LA embraced a virtual and in-person hybrid model this year. The investor showcase will be in-person, and throughout the three-month mentorship period startups met both in-person and online -- Kozlov said one mentor even moderated a class while docked on a yacht.
Kozlov said Techstars will likely continue a hybrid model of in-person and virtual experiences in its future classes regardless of the pandemic, because it allows more companies to participate.
"We came to TechStars because we were looking to raise money, but the real value we got was from the mentorship and the confidence we gained to grow our business with these mentors," Cook said. "Also, the other founders in the program are a huge source of strength and inspiration to me that I can rely on them for advice, connections, and support through our journey after the program."
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