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LAβs Hottest Startups for 2023
Decerry Donato
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
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.
Anduril ($2.32B raised)
Anduril Industries Is Getting Hundreds of Millions to Build Border Surveillance Tech Image by Ian Hurley
Given how much the company has raised to date, it was no surprise that Costa Mesa-based defense technology startup and U.S. military contractor Anduril was the name that most often came up among L.A. venture investors.
Oculus co-founder Palmer Luckey, Founders Fund partner Trae Stephens, ex-Palantir executives Matt Grimm and Brian Schimpf founded Anduril in 2017. The startup is most known for its core software product, an operating system called Lattice, which is used to detect potential security threats.
To date, the startup has received investments from Andreessen Horowitz, Founders Fund, General Catalyst, D1 Capital Partners and venture capitalist Elad Gil.
ServiceTitan ($1.1B raised)
Earlier this year, the Glendale-based firm filed for an initial public offering. Since its founding in 2012, the companyβs co-founders, Ara Mahdessian and Vahe Kuzoyan built its software for a wide range of service industries, from plumbing and landscaping to pest control and HVAC.
The companyβs growth is largely driven by its ability to acquire other businesses, including landscaping software provider Aspire and pest control-focused platforms ServicePro and, earlier this month, FieldRoutes.
Whatnot ($484.41M raised)
The Marina del Rey-based livestream shopping platform makes the βHottest Startupsβ list for a second year in a row. The online marketplace was founded by former GOAT product manager Logan Head and ex-Googler Grant LaFontaine and made its name by providing a live auction platform for buying and selling collectables like rare PokΓ©mon cards, and has since expanded into sports memorabilia, sneakers and apparel.
Itβs no secret that its success is in part, due to the partnerships Whatnot inked this year, like UFC fighter Jorge Masdival to sell sports collectibles on the platform. Along with science fiction/fantasy comics publisher Heavy Metal to bring out original content for the Whatnot community.
Boulevard ($110.35M raised)
Los Angeles-based salon booking app Boulevard attracted backers including Santa Monica-based early-stage VC firm Bonfire Ventures, which focuses on B2B software startups. The startup builds booking and payment software for salons and spas and now it now serves 25,000 professionals across 2,000 salons. Boulevard has also worked with prominent brands such as Toni & Guy and HeyDay.
Varda Space ($53M raised)
Space manufacturing startup Varda focuses on designing, developing, and manufacturing products that benefit from low gravity. The products that the El segundo-based company manufactures in space are intended to be brought back down with the hope that it will improve life on earth. The forward-thinking company was founded by Founders Fund partner Delian Asparouhov and former SpaceX officer Will Bruey.
Papaya (65.2 million)
Sherman Oaks-based Papaya was founded by Patrick Kann and Jason Metzler. The company was built to make it easier for consumers to pay βanyβ bills β whether it's a hospital bill or a parking ticket β all on the mobile app. To pay, users take a picture of their bill and type in the amount they want to send as long as the end user has a mailing address or an online payment portal. Papaya utilizes optical character recognition, a software that enables the app to look at every bill β no matter what the format is β and recognize each piece of information.
Impulse Space ($30 million raised)
Based in El Segundo, Impulse Space creates orbital maneuvering vehicles capable of delivering multiple payloads to unique orbits from a single launch. Founded in 2021 by former SpaceX exec Tom Mueller built his company as a last-mile delivery partner for future inter-space missions, like servicing space stations. In July, the space startup inked a deal with Long Beach-based reusable rocket maker Relativity Space to accelerate the entry of its rover into Mars.
Popshop Live (24.5 million raised)
Whatnot competitor Popshop Live is betting that live-shopping is the future of ecommerce. The West Hollywood-based company primarily focuses on selling collectables such as trading cards and anime merchandise.
In the summer of 2021, the company bolstered its team by hiring former Instagram and Instacart executive Bangaly Kaba to lead platform growth and former head of Uber Eats Jason Droege to lead expansion.
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Decerry Donato
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
This App Hopes to Build a Support System forΒ Homeless Angelenos β On Their Terms
06:30 AM | August 30, 2021
Photo by Ioana Cristiana on Unsplash
Days after Doug Weber signed up for the Samaritan app at the suggestion of his case worker, he received his first donations β about $80 in total.
Weber found himself homeless in L.A. for six years after he says he was jilted by a business partner who ran away with his savings. He then found himself at the mercy of several persistent health problems. He was able to find temporary housing through a local nonprofit and get set up to receive food stamps, but for anything else, he relied on the kindness of strangers.
"I bought simple things. Socks, underwear. I went and bought a good leather belt β instead of a cheap one that you buy in a discount store. That was $25 alone β you know, something that's gonna hold up for a couple years and not fall apart."
The money came courtesy of users on the Samaritan app, a kind of Patreon for people experiencing homeless, or a social app introducing communities to their unhoused neighbors.
After a couple years honing its approach in Seattle, the startup is moving into Southern California, where L.A.'s sizeable homeless population and the tech world overlap, from the boardwalks of Silicon Beach to Downtown's arts district, among other places. The app hopes to grow the relationship between passersby and homeless people, beyond the quick exchange of a few crumpled dollars and a grave nod. It also hopes to give homeless users more agency in telling their story.
Samaritan, a for-profit benefit "B-corp" corporation, is partnering with L.A.-based nonprofit Pathways To Your Future to upload profiles of their homeless clients, including a little bit about their life story, the items they're saving for and their goals. Homeless users can also choose to be anonymous.
Users download the app, enter their city and see profiles of Pathways' clients and those of its other nonprofit partners. From there, they can scroll through profiles and donate money toward items users' need or goals they're trying to hit β everything from groceries to making regular AA meetings. The funds are administered by the partner organization β in this case, Pathways β which Samaritan hopes can help ensure the money (which is delivered through a prepaid PEX debit card) goes toward its intended purpose. One hundred percent of the funds go to the homeless users.
Born in Seattle
Samaritan was created in Seattle in 2015 by entrepreneur and filmmaker Jonathan Kumar. It graduated from Techstars' UnitedHealthcare startup accelerator in 2020, and raised $150,000 in seed funding from Jumpstart Health Investors and Right Side Capital Management. It has also received some grant funding from nonprofits, according to Samaritan spokesman Eric Hunter.
Initially, he said, the app relied heavily on beacon technology that would notify users that they were near someone who was looking for a donation.
"When you walk by a person it will notify you that you've walked by them, and allow you to donate to them, which was a big part of our Seattle pilot," said Hunter.
It was essentially virtual panhandling, which also allowed you to offer some encouragement or a kind word.
"We've since phased it out a little bit," he said.
The company still uses the beacons β a kind of keyfob βto allow homeless users to access their funds, but the app is now more focused on giving users the ability to afford "needs" (such as clothing) or give them a congratulatory boost for "action steps" (such as meeting regularly with a case worker) that the users set themselves.
Bill Greco, who oversees Samaritan's program with Pathways, said the idea isn't really about the immediate cash.
"The goal is to get them self-sufficient," he said. "Mentally, financially, spiritually β if you will β to become independent and circle back into society."
Another goal: Building empathy among the app's users.
"When we tell one story of one person's life struggle, it really changes the perceptions that people have about homelessness," Greco said. "This obviously is not going to solve [homelessness], but I think it's going to change, hopefully, people's perception about what the issue represents β with these individualized struggles."
Greco said Pathways clients have established real relationships through the messaging feature on the app. In some cases, users have gone far beyond cash donations, bringing bikes or art supplies directly to homeless people on the app who list the items among their needs.
A series of screenshots from Samaritan's app.
A Boost for Nonprofits
Samaritan hopes to license its technology to more nonprofits like Pathways, which pays a fee for access to the app. Hunter said it's been a fairly successful business model so far.
The partnership helps Pathways attract funding and gives its homeless clients a reason to check in regularly.
"It helps differentiate the organization from the hundreds of others that are out there," said Greco.
"What really intrigues me is that the platform gives these people a voice," he said. "You know, these people are somewhat invisible, but the platform allows them to tell their story, to talk about the positive outcomes they want to achieve and to engage with potential donors."
Doug Weber still has medical bills to pay and worries whether he'll be able to afford his rent -- and he's not counting on the app to help him reach those goals.
"It's not life changing money," he said. "But for somebody who's just trying to get back on their feet... where they're living day-to-day and they're trying to save some money β it's a good thing."
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Eric Zassenhaus
Eric Zassenhaus is dot.LA's managing editor for platforms and audience. He works to put dot.LA stories in front of the broadest audience in the best possible way. Prior to joining dot.LA, he served as an editorial and product lead at Pacific Standard magazine and at NPR affiliate KPCC in Los Angeles. He has also worked as a news producer, editor and art director. Follow him on Twitter for random thoughts on publishing and L.A. culture.
https://twitter.com/ezass
https://www.linkedin.com/in/zassenhaus/
eric@dot.la
Billion-Dollar Milestones and Snapchatβs New Features
11:30 AM | October 25, 2024
π¦ Spotlight
Happy Friday Los Angeles!
This weekβs spotlight showcases LAβs thriving tech scene, featuring Snapchatβs latest feature updates and two local startups Liquid Death and Altruist, making TechCrunchβs Unicorn List for 2024.
Image Source: Snap
Snapchatβs recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like βslayβ and heart symbols for added flair in chats. Plus, the βFootstepsβ feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.
Image Source: Liquid Death
ICYMI, two LA startups joined the Unicorn Clubβachieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.
Image Source: Altruist
Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.
Together, Liquid Death and Altruist exemplify LAβs capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LAβs unique entrepreneurial spirit. Go LA!
Check out TechCrunchβs 2024 Unicorn List here. And donβt miss Snapchatβs latest featuresβperfect for adding some fun, connection and maybe a few selfies this weekend!
π€ Venture Deals
LA Companies
- Carbon Ridge, a developer of carbon capture technology for the maritime industry to reduce ship emissions, has raised $9.5M in a funding round led by Crosscut Ventures and Western Technology Investment (WTI). This investment will help accelerate the decarbonization of maritime shipping. - learn more
- Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIAβs NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
LA Venture Funds
- Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
- Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the networkβs growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more
LA Exits
- Grandview, a literary management company representing top talent across various entertainment sectors, has been acquired by TPGβs newly formed entertainment venture, Initial Group, in partnership with Untitled Entertainment. - learn more
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