Last year brought big changes to L.A.'s startup and tech scene, from video streaming to blockchain technology to a boom in electric vehicles and the sectors supporting them, 2021 was a year that saw entire industries pivot to embrace a new tech landscape put in place by the pandemic. We asked experts from across the tech and startup world what they see coming for the city and its startup scene in 2022.
Check back for new posts. We'll be adding more predictions daily, and let us know what you see over the horizon; share with us on Twitter and Instagram.
The Streaming Wars Were Quaint. In 2022, Hollywood Will See an Era of Unorthodox Consolidation
As 2022 dawns, the Justice Department’s long-awaited decision on the Discovery/ WarnerMedia/ AT&T merger shines most brightly on the entertainment industry’s horizon.
2022 Will Be the Year Automation Changes Fast Food for Good
Restaurant innovation to improve customer convenience will continue to grow at a rapid pace around things like autonomous delivery vehicles, unmanned and automated 24/7 open food kiosks and app-based ordering and paying. Diners are embracing automation more than ever before and are open to change if it means added safety, convenience and efficiency, as well as consistency in the quality of food they receive.
In 2022, ‘Fan-Centric’ Accounting Will Bring Emerging Artists More Money from Streaming Music
Streaming subscribers and revenues hit new heights this past year. Label valuations climbed. Song catalogs from artists including Bruce Springsteen and Neil Young were purchased for record sums. Yet in the midst of this booming music economy, many artists felt that they were not receiving their fair share of the rewards.
In 2022, that will change. As pressure mounts from fans and rival services that offer a different model for payment, streaming music stalwarts will begin to change how the billions in streaming revenues get divvied up to benefit emerging musicians and bands with the most dedicated fans.
The Creator Economy and Social Commerce Proved Itself This Past Year. In 2022, Watch as It Booms!
With more than 50 million content creators across the globe and social media using new monetization tools and social commerce features, 2022 will witness an explosion of creative energy and the birth of a new type of online economy.
It has never been a better time to be a content creator: the cost for entry is incredibly low –sometimes totally free. You just need a device and an internet connection, social media platforms from TikTok to YouTube started creator funds in 2021, including incentives and monthly payments based on performance. The goal: to encourage creators to continue making content that keeps readers on their platforms and enables them to make a living out of it.
In 2022, Get Ready for a Battle of Kitchen Robot Concepts
The coming year will be a proving year around all the hype of robotics in food that was created in 2020 and 2021. In 2022, the reality will set in that the labor shortage in restaurants is not a fleeting issue, though it may become less acute than it had been during the height of the pandemic. Restaurants will need to expand their robotics and AI pilots and roll-out new solutions.
This Will Be the Year We See Tech Equity Make Its Mark and Move Beyond Gesture
2022 will be a year of growth and momentum around tech equity and ethics.
Independent efforts for racial and gender equity through tech flourished in 2021. Many of us chafe at using the term “DEI” (which stands for “diversity, equity and inclusion”) as it’s become a marketing slogan for some. Instead, we’re designing ways to do things differently so that we can better tackle the ways that tech can be used to enforce inequalities.
Already there are some shining examples of efforts underway. Researchers, activists and journalists are looking into how they can use big data and AI to aid in these efforts.
'Billionaires in Space' Is Boring; 2022 Will See Entire Industries Go Galactic
This last year was a watershed for the commercial space economy. An incredible amount of capital was invested in the new aerospace economy, surpassing the likes of legacy space heavyweights Boeing and Airbus. The year saw incredible financial exits from California-based companies Momentus, Planet, Rocket Lab and Astra, among others (Long Beach-based Virgin Orbit is set to go public in 2022). And it captured the public’s attention with billionaires floating in microgravity.
EV Sales Will Soar in 2022 as New Models Flood the Market
Overall light vehicle sales plummeted last year because of pandemic-related supply chain issues, but electric vehicle sales are set to surge in 2022.
EVs are expected to reach over 450,000 sales in 2021, and EV sales through November were up 88% compared to 2020 EV sales through last November. This huge increase is due to a few key new models arriving in the marketplace this year, such as the Ford Mustang Mach-E and Volkswagen ID.4. In its first full year, Tesla’s Model Y was by far the EV sales leader in 2021.
In 2022, Robots Will Conquer Food Delivery and Distribution
In 2022, the food service industry will experience more labor challenges as restaurant and hospitality workers continue to leave in droves.
Fortunately, food technology has come a long way in developing robotics and automation in these last 18 months. Automated solutions in the kitchen will be well established by Q3 of 2022 and more vending style machines will appear in high-foot-traffic areas such as airports and schools, but also in the lobbies of high-rise buildings.
In 2022, Expect More Cross-Platform Livestreaming from Creators
TikTok’s short form videos are ideal for discovering new audiences. Meanwhile long-form platforms such as Twitch and YouTube are perfect for maintaining, engaging and growing a community of fans. The marriage of these elements will change the game for creators in the new year.
From our Fingertips to Outerspace: Spencer Rascoff's 2021 Predictions
I started my journey as both an angel investor and founder over 20 years ago.
A handful of successful companies and hundreds of investments later, I realized a few common themes throughout my portfolio. One in particular stands out: democratization.
Democratization, or making things more accessible to more people, has been a considerable factor in much of my decision making as a founder and investor.
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Similar programs are common in the startup world and in the creator economy. For example, social media companies can use accelerator programs not only to support rising stars but to lure those creators—and their audiences—to the company’s platforms. Genies believes avatars will be a crucial part of the internet’s future and is similarly using its program to encourage creators to launch brands using Genies’ platform.
“I think us being able to work hands on with this next era—this next generation of designers and entrepreneurs—not only gets us a chance to understand how people want to use our platform and tools, but also allows us to nurture those types of creators that are going to exist and continue to build within our ecosystem,” said Allison Sturges, Genies’ head of strategic partnerships.
DIY Collective’s initial cohort will include roughly 15 people, Sturges said. They will spend three weeks at the Genies headquarters, participating in workshops and hearing from CEOs, fashion designers, tattoo artists and speakers from other industries, she added. Genies will provide creatives with funding to build brands and audiences, though Sturges declined to share how much. By the end of the program, participants will be able to sell digital goods through the company’s NFT marketplace, The Warehouse. There, people can buy, sell and trade avatar creations, such as wearable items.
Genies will accept applications for the debut program until Aug. 1. It will kick off on Aug. 8, and previous experience in digital fashion and 3D art development is not required.
Sturges said that the program will teach people “about the tools and capabilities that they will have” through Genies’ platform, as well as “how to think about building their own avatar ecosystem brands and even their own audience.”
Image courtesy of Genies
Founded in 2017, Genies established itself by making avatars for celebrities from Rihanna to Russell Westbrook, who have used the online lookalikes for social media and sponsorship opportunities. The 150-person company, which has raised at least $250 million to date, has secured partnerships with Universal Music Group and Warner Music Group to make avatars for each music label’s entire roster of artists. Former Disney boss Bob Iger joined the company’s board in March.
The company wants to extend avatars to everyone else. Avatars—digital figures that represent an individual—may be the way people interact with each other in the 3D virtual worlds of the metaverse, the much-hyped iteration of the internet where users may one day work, shop and socialize. A company spokesperson previously told dot.LA that Genies has been beta testing avatar creator tools with invite-only users and gives creators “full ownership and commercialization rights” over their creations collecting a 5% transaction fee each time an avatar NFT is sold.
“It's an opportunity for people to build their most expressive and authentic self within this digital era,” Sturges said of avatars.
The company’s call for creators could be a sign that Genies is close to rolling out the Warehouse and its tools publicly. Asked what these avatar tools might look like, the startup went somewhat quiet again.
Allison Sturges said, “I think that's probably something that I'll hold off on sharing. We will be rolling some of this out soon.”
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