The 2024 Global Startup Ecosystem Report (GSER), released at the London Tech Week, solidified Los Angeles' status as a global startup powerhouse, maintaining its impressive #4 global ranking (#3 in the US), tied with Tel Aviv. The city's vibrant ecosystem continues to attract top talent and significant investment across diverse sectors like crypto, gaming, and cleantech.
While large exits above $50 million declined in LA during 2023, the drop was less severe compared to Silicon Valley, London, or Tel Aviv. Notably, LA was the only ecosystem to see an increase in active unicorns from 41 to 42 between mid-2021 and the end of 2023. New unicorns include advanced auto manufacturing startup Divergent 3D, cleantech company Newlight Technologies, and cloud platform Restaurant365.
With over 500 VC firms, a top talent pipeline from universities like UCLA, Caltech, and USC, and major funding rounds like $1.05 billion for parking tech startup Metropolis, $150 million for VideoAmp, and $70 million for Chaos Industries, LA's startup scene shows no signs of slowing down. The city's diverse population provides a rich global talent pool, further fueling entrepreneurial growth across hot tech sectors.
However, LA still lags behind the top three startup ecosystems—Silicon Valley, New York City, and London—in certain key metrics, particularly in funding and exits. Despite these challenges, Los Angeles' diverse and vibrant startup ecosystem, bolstered by significant investments and a rich talent pool, is strongly positioned for continued growth. The city's strengths in emerging sectors like cleantech and gaming, combined with an increasing number of active unicorns, should not be underestimated. With strategic efforts to enhance funding and success metrics, LA is well on its way to joining the more elite global ranks of startup ecosystems.
Let's take a look at some of the most notable startups based in and around LA, California in 2024:
1. Arketa
Year Founded: 2020
HQ: LA, California, USA
Size: 1-50
Founders: Rachel Lea Fishman, Joshua Archer
Arketa is a comprehensive platform designed to empower fitness and wellness businesses with robust hybrid offerings. Launched in 2020, Arketa has quickly become a go-to solution for studios looking to seamlessly integrate both in-person and digital services. The platform offers a no-code hub that enables businesses to manage class bookings, process payments, and unlock additional revenue streams such as live-streamed classes, video libraries, retreats, and branded retail. With a focus on creating an all-in-one tech solution, Arketa supports a wide range of clients, from boutique fitness studios to larger wellness enterprises, facilitating millions of dollars in revenue each month.
The founders of Arketa, Rachel Lea Fishman and Joshua Archer, bring a unique blend of industry expertise and personal passion to the table. Fishman, a former fitness instructor, and Archer, an Ironman athlete, understand the challenges faced by fitness business owners. Their commitment to customer satisfaction and innovation is evident in Arketa’s user-friendly platform, which prioritizes ease of use and customization. The company's funding round of $7.6 million in December 2022, led by prominent investors including First Round Capital and Y Combinator, underscores its potential to revolutionize the fitness industry by supporting hybrid workout routines and maximizing monetization opportunities for businesses.
2. Hadrian
Year Founded: 2020
HQ: LA, California, USA
Size: 51-200
Founders: Chris Power
Hadrian is redefining advanced manufacturing by building the planet's most efficient factories, aimed at accelerating the U.S. Space & Defense industry. The company's mission is to automate and modernize the production of precision metal components, addressing the bottleneck caused by a network of traditional, owner-operated machine shops. By utilizing high levels of automation and advanced software, Hadrian delivers flight-grade machined parts in a fraction of the traditional lead times, cutting the cost of making rockets, satellites, jets, and drones by half. Their factories promise reliability, transparency, and ultra-fast turnaround times, positioning themselves as the backbone of America's industrial future.
In early 2022, Hadrian secured $90 million in Series A funding led by Lux Capital and Andreessen Horowitz, followed by a $117 million Series B round in late 2023, with participation from RTX Ventures, Construct Capital, and others. This funding supports their expansion plans, including a second factory in Torrance, California, and further automation of their production processes. With notable customers in the aerospace sector and a focus on scaling efficiently, Hadrian aims to revolutionize the industry by enabling rapid, reliable, and cost-effective production of high-precision components. The company's unique approach leverages a blend of automation and human expertise to achieve unprecedented efficiency in manufacturing.
3. Whatnot
Year Founded: 2019
HQ: LA, California, USA
Size: 200+
Founders: Grant LaFontaine, Logan Head
Whatnot, founded in 2019 by Grant LaFontaine and Logan Head, is a live-stream shopping platform designed to connect collectors and enthusiasts. The platform offers an interactive experience where users can buy and sell items like rare Pokémon cards, Funko Pops, sneakers, trading cards, sports memorabilia, and more. Whatnot's unique approach combines social media engagement with e-commerce, creating a powerful marketplace for niche communities. The company has rapidly expanded its offerings to include categories such as diecast cars, stamps, and action figures.
In July 2022, Whatnot raised $260 million in a Series D funding round, co-led by DST Global and CapitalG, increasing its valuation to $3.7 billion. This funding is being used to further develop the in-app live and social commerce marketplace and expand into new collectible categories. The company's fast growth is attributed to its strong community and the interactive nature of its platform. Whatnot has also made strategic hires, including Xinan Wu from Citadel Securities and Agnieszka Podsiadło from Lyft, to scale its engineering and enhance the platform experience. With its innovative approach, Whatnot is well-positioned to become a leading player in the U.S. live-stream shopping market.
4. Exosonic
Year Founded: 2019
HQ: Torrance, California, USA
Size: 1-50
Founders: Norris Tie, Timothy MacDonald
Exosonic is pioneering the future of supersonic aviation with a focus on developing low-boom, supersonic aircraft for both military and commercial applications. Founded in 2019 and headquartered in Torrance, California, Exosonic has been making significant strides in the aerospace industry. The company recently successfully flew its EX-3M "Trident" high-speed unmanned aerial system, marking a pivotal milestone in demonstrating its engineering capabilities. This subscale demonstrator serves as a platform to validate autonomy software and sensors, providing valuable insights for the development of larger, more complex supersonic aircraft.
In addition to its advancements in UAV technology, Exosonic is also working on a 70-passenger, Mach 1.8 supersonic jet designed for commercial use, aiming to reduce travel time significantly. This airliner is being developed to fly overland with a muted sonic boom, allowing for supersonic flight that is less disruptive to those on the ground. With several government contracts, including partnerships with the US Air Force, Exosonic is leveraging its UAV projects to support its long-term goal of revolutionizing passenger air travel. The company has secured over $8 million in funding, including more than $5 million in private capital and $3 million in AFWERX funding from the US Air Force. By reinvesting profits from its UAV sales, the company aims to bring its supersonic airliner to market, promising faster, quieter, and more efficient travel solutions.
5. MarqVision
Year Founded: 2020
HQ: LA, California, USA
Size: 51-200
Founders: Mark Lee
MarqVision is a cutting-edge platform designed to protect brands from counterfeits, gray market sales, and digital piracy. Founded in 2020, this AI-powered SaaS helps brands automate the monitoring and protection of their intellectual property (IP) across more than 1,500 online marketplaces, including ecommerce, social media, and NFT platforms. By leveraging advanced image recognition and natural language processing technologies, MarqVision ensures that counterfeit products and pirated content are swiftly identified and removed, allowing brands to safeguard their assets and maintain their market integrity. The company's Growth Protection Platform provides a comprehensive solution for brand and content protection, global trademark filing, and integrated legal services, making it a one-stop-shop for IP management.
In August 2022, MarqVision raised $20 million in Series A funding led by DST Global Partners and Atinum Investments, with participation from existing investors such as Softbank Ventures, Bass Investment, and Y Combinator. This funding round underscores the significant market opportunity for MarqVision's innovative technology, which has already garnered adoption from leading global brands like LVMH, Gentle Monster, and Champion. MarqVision's proprietary AI models achieve a 95%+ accuracy rate in detecting counterfeits, and their platform has been recognized with a prestigious Innovation Award from LVMH. With a retention rate of over 97% across its customer base, MarqVision is poised to continue expanding its services and enhancing its capabilities to meet the evolving challenges of brand protection in the digital age.
6. Duffl
Year Founded: 2019
HQ: LA, California, USA
Size: 1-50
Founders: David Lin
Duffl is transforming quick commerce with its unique 10-minute delivery service tailored specifically for college students. Founded in 2019 by David Lin, Duffl began as a dorm room project at UCLA and has since expanded to multiple campuses including Arizona State University and the University of Texas. The company leverages a student-driven workforce to deliver snacks and convenience items via electric scooters, focusing on high-margin goods such as snacks, ice cream, and energy drinks. This model not only ensures rapid delivery but also provides students with hands-on experience in running a business, as they take on roles as "Admirals" managing their campus operations.
Duffl's growth has been bolstered by its participation in Y Combinator's Winter 2020 cohort and subsequent successful funding rounds, raising over $13 million, including a $12 million Series A led by Volition Capital. Despite the challenges faced by the quick commerce industry, Duffl has managed to achieve cash flow breakeven at several of its locations by maintaining a lean operation focused on high-density areas. This approach, combined with minimal marketing spend and a strong referral system, has allowed Duffl to thrive while many competitors have struggled. The company's innovative model and strategic campus presence have positioned it as a standout player in the fast-growing quick commerce sector.
7. Subject
Year Founded: 2020
HQ: Beverly Hills, California, USA
Size: 51-200
Founders: Felix Ruano, Michael Vilardo
Subject is a digital learning platform that specializes in creating engaging online courses for high school students. Originally known as Emile Learning, Subject was rebranded in 2022 to reflect its commitment to expanding access to educational opportunities globally. The platform offers a comprehensive range of core, Advanced Placement (AP), and elective courses designed to meet Common Core standards. Subject leverages interactive storytelling, multimedia formats, and bite-sized video lessons to align with Gen Z's learning preferences, making education both effective and enjoyable. This innovative approach has resulted in a 94% completion rate and significant improvements in student performance metrics, such as a 13% average score improvement in math exams.
Founded in 2020 during the COVID-19 pandemic, Subject has rapidly grown, now employing seventy people across offices in Los Angeles and Seattle. The platform partners with over 70 schools and districts, including prominent educational institutions like KIPP campuses and Jefferson County School District. The company was founded by Felix Ruano and Michael Vilardo, who have been instrumental in driving its vision and growth. Subject's $29.4 million Series A funding round in March 2022, led by Owl Ventures with participation from Kleiner Perkins and SoftBank Group, underscores the confidence investors have in its mission and potential. With this funding, Subject aims to further expand its operations and continue developing its cutting-edge educational tools to empower students and teachers worldwide.
8. Modern Animal
Year Founded: 2019
HQ: LA, California, USA
Size: 200+
Founders: Steven Eidelman
Modern Animal is transforming the veterinary care industry with its innovative approach to pet healthcare. Founded by Steven Eidelman in 2019 and headquartered in Los Angeles, Modern Animal focuses on providing a seamless and comprehensive care experience for both pet owners and veterinary professionals. The company integrates advanced technology into its services, offering 24/7 telemedicine, instant appointment booking, easy prescription management, and access to pet health records through a user-friendly app. This tech-centric model aims to make pet care more accessible, transparent, and efficient, ensuring high-quality medical outcomes and enhancing the overall pet owner experience.
In its mission to transform veterinary care, Modern Animal emphasizes the well-being of its practitioners by addressing common industry challenges such as burnout and communication issues. The company provides a supportive work environment equipped with modern tools and resources to foster sustainable careers for veterinary professionals. With a strong focus on growth, Modern Animal has raised significant funding, including a $75.5 million round in 2021 led by True Ventures and Founders Fund, and is expanding its clinic network across multiple states. This expansion is supported by key executive hires, including Dr. Christie Long as Chief Medical Officer and Pei-Chin Wang as Chief Product Officer, who are driving the company’s mission to improve pet care at scale.
9. AI.Fashion
Year Founded: 2023
HQ: LA, California, USA
Size: 1-50
Founders: Daniel Citron
AI.Fashion is revolutionizing the fashion industry with its innovative AI-powered product photography platform. Founded in 2023 by experts from Google, Microsoft, and MIT, the company leverages a combination of artificial intelligence and real human models to create high-quality, customizable product images at a fraction of the cost of traditional photo shoots. Brands can easily upload their clothing, select models from an extensive library, and deploy the resulting content across various channels. This streamlined process not only reduces costs by up to 30% but also accelerates campaign turnaround times by 50%, making it an invaluable tool for fashion brands looking to enhance their marketing efficiency.
The platform's latest innovation, Persona by AI.Fashion, allows for virtual photo shoots that maintain a human-centric approach, ensuring that the modeling industry continues to thrive alongside technological advancements. Persona supports advanced design and image customization, enabling brands to perform A/B testing and localize visuals for different markets effectively. With a recent $3.6 million seed funding round led by Neo announced in February 2024, AI.Fashion is well-positioned to expand its offerings and continue driving innovation in the fashion photography space.
10. Autograph
Year Founded: 2021
HQ: LA, California, USA
Size: 51-200
Founders: Tom Brady
Autograph, co-founded by professional football player Tom Brady, is an innovative NFT platform that enables celebrities to launch their own non-fungible tokens. Established in 2021 and headquartered in Los Angeles, Autograph quickly gained traction by securing $170 million in a Series B funding round led by prominent Silicon Valley investors Andreessen Horowitz and Kleiner Perkins, with additional participation from Lightspeed Venture Partners and 01A. The platform aims to revolutionize the fan experience by offering exclusive digital collectibles from well-known athletes and entertainers, including Tiger Woods, Naomi Osaka, and Tony Hawk.
The platform’s mission is to bring NFTs to the mainstream by leveraging partnerships with major celebrities and expanding its user base. Autograph's CEO, Dillon Rosenblatt, formerly of Cameo and Apple Music, leads a team dedicated to enhancing the NFT space. The company’s recent funding will be used to scale its technology and develop new partnerships to broaden its reach. Since its inception, Autograph has partnered with major names in sports and entertainment, making significant strides in the rapidly growing $44 billion NFT market.
11. Vena Vitals
Year Founded: 2019
HQ: Irvine, California, USA
Size: 1-50
Founders: Ray Liu, Joshua Kim, Michelle Khine
Vena Vitals puts a new spin on blood pressure monitoring with its innovative, non-invasive technology. The company has developed a soft, wearable sticker that continuously monitors blood pressure with clinical accuracy. This advanced sensor conforms to the skin and provides real-time arterial pulse measurements, eliminating the need for invasive needles or traditional cuff-based methods. Vena Vitals' solution has been validated in operating rooms, proving to be as accurate as current best-in-class tools but at a fraction of the cost.
The founding team brings a wealth of experience in health tech innovation, with multiple past startups and successful exits. The company has shown significant promise, winning the University Lab Partners’ Pitch. Launch. Grow. competition, which awarded them $10,000 and a sponsored lab space. Their technology has the potential to extend beyond hospital settings into the consumer market, providing an easy-to-use tool for at-home blood pressure monitoring. With the ongoing clinical validation and plans for regulatory clearance, Vena Vitals aims to significantly impact patient care by making continuous blood pressure monitoring more accessible and affordable.
12. Inversion Space
Year Founded: 2021
HQ: LA, California, USA
Size: 51-200
Founders: Justin Fiaschetti, Austin Briggs
Inversion Space, founded in 2021 by Justin Fiaschetti and Austin Briggs, is pioneering a new frontier in cargo transportation by developing autonomous re-entry vehicles designed to deliver cargo from space back to Earth. Unlike traditional space companies focused on sending payloads to orbit, Inversion aims to transform space into a transportation layer for Earth. Their innovative approach involves deploying fleets of orbiting vehicles capable of re-entering Earth's atmosphere at high speeds and delivering cargo to any location in minutes. This ambitious plan promises to revolutionize terrestrial cargo transport by leveraging the advantages of space-based logistics.
Inversion's pathfinder vehicle, Ray, is set to launch on SpaceX's Transporter-12 mission in October 2024. This mission will validate critical technologies for their next-generation vehicle, Arc, which is expected to debut in 2026. Ray, a compact spacecraft, will undergo a three-phase mission, including on-orbit operations, controlled descent, and a parachute-assisted splashdown. The company's strong vertical integration allows them to build most components in-house, enhancing their capability to innovate and scale rapidly. With a $10 million seed round and a facility in Torrance, California, Inversion is well-positioned to meet the needs of both government and private sector clients, offering a reusable platform for on-orbit testing and rapid cargo delivery.
13. Axle Health
Year Founded: 2020
HQ: LA, California, USA
Size: 1-50
Founders: Adam Stansell, Connor Hailey
Axle Health is transforming the home healthcare industry with its advanced scheduling and workforce management software. Founded in 2020, Axle Health has developed a comprehensive platform that includes a mobile app for clinicians, an operations dashboard for office teams, and proprietary logistics algorithms to optimize scheduling and clinician routing. This technology significantly reduces travel time between patient visits, allowing healthcare providers to spend more time on patient care and less on logistics, ultimately addressing the critical staffing shortages in home healthcare.
In February 2024, Axle Health raised $4.2 million in seed funding led by Pear VC and TRAC VC, bringing its total funding to $4.4 million. The company plans to use this funding to expand its software and machine learning engineering teams, further enhancing its platform's capabilities. Since its launch, Axle Health has seen impressive market traction, exceeding $1 million in annual recurring revenue (ARR) within its first year. The company's innovative approach not only improves operational efficiency but also enhances patient engagement through improved appointment scheduling and real-time communication.
14. Black Unicorn Factory
Year Founded: 2020
HQ: LA, California, USA
Size: 200+
Founders: Johnny Stewart
Black Unicorn Factory, based in Los Angeles, is a pioneering African American-owned tech startup accelerator dedicated to transforming small businesses into public stock market-ready unicorns. Founded by Johnny Stewart, a seasoned growth hacker and entrepreneur, the company operates a Pre IPO-Startup Accelerator program. This program utilizes the J.O.B.S. Act (Jumpstart Our Business Startups Act) to prepare startups for IPOs, ensuring they meet the rigorous standards required for public trading. With a focus on businesses that have strong credit ratings, substantial revenue, and valuations exceeding $50 million, BUF has successfully positioned over 65 companies for public market entry. The accelerator’s innovative approach and commitment to diversity are making significant strides in the fintech industry, particularly for BIPOC business owners.
In addition to supporting startups, Black Unicorn Factory offers a unique investment opportunity for everyday consumers through its "Follow Me for Equity" program. This initiative allows users to earn equity in pre-IPO companies simply by following them on social media for a year or more. The company's success is underscored by its impressive $420 million funding round in May 2021, led by BarterVentures, which has elevated its valuation to $6.1 billion. This funding will further bolster BUF’s mission to democratize access to capital and reshape the startup landscape. As one of the few African American-owned unicorn companies globally, Black Unicorn Factory is not only fostering innovation but also empowering a new generation of entrepreneurs and investors.
15. Emerge Tools
Year Founded: 2020
HQ: Santa Monica, California, USA
Size: 1-50
Founders: Noah Martin, Josh Cohenzadeh
Emerge Tools is modernizing mobile app development with a suite of powerful tools designed to optimize app performance and reduce app size. Founded in 2020 by Noah Martin and Josh Cohenzadeh, the company offers products like Size Analysis, Performance Analysis, Snapshots, Launch Booster, and ReaperAI. These tools help developers monitor and reduce app size, prevent performance regressions, build UIs with confidence, and improve app startup times. Emerge Tools' advanced analytics and proprietary algorithms provide actionable insights, allowing teams to streamline development processes and enhance user experience.
Emerge Tools has quickly gained traction among top mobile development teams and is backed by prominent investors including Y Combinator, Matrix Partners, and Haystack Fund. The company has raised $1.7 million in its seed round, with additional backing from Liquid2 Ventures and a group of angel investors. Companies like DoorDash, Square, Duolingo, Dropbox, Bumble, and Stripe rely on Emerge Tools to maintain and enhance their app performance. The platform's robust features, such as automated size alerts, performance testing on real devices, and dynamic runtime analysis, make it an essential resource for mobile app developers looking to stay competitive in the fast-paced tech landscape.
16. Coco
Year Founded: 2020
HQ: Santa Monica, California, United States
Size: 51-200
Founders: Brad Squicciarini, Zach Rash
Coco, a Los Angeles-based startup, is revolutionizing the food delivery industry with its fleet of semi-automated, remotely piloted electric vehicles. Founded in 2020, Coco's mission is to make delivery more affordable, reliable, and sustainable by using robots stationed at local restaurants. These robots, equipped with GPS tracking and two-way microphones, are controlled remotely, ensuring fast and efficient deliveries while reducing environmental impact. Since its inception, Coco has completed over 100,000 deliveries, maintaining a high customer satisfaction rating of 4.8 out of 5.
In a competitive market featuring companies like Starship and Nuro, Coco has distinguished itself with its distinctive pink robots, which have become a familiar sight in neighborhoods across Southern California. The startup recently raised $36 million in a Series A funding round led by Silicon Valley Bank, Founders Fund, and notable investors such as Sam Altman, bringing its total funding to approximately $43 million. This investment will support the expansion of Coco's operations to more U.S. cities, enhance their technology, and significantly increase their fleet. With a 97% on-time delivery rate and partnerships with various local and national restaurants, Coco is set to reshape the landscape of last-mile delivery services.
17. Odys Aviation
Year Founded: 2019
HQ: Long Beach, California, USA
Size: 1-50
Founders: James Dorris
Odys Aviation is pioneering the next generation of regional air travel with its hybrid-electric vertical take-off and landing (VTOL) aircraft. Founded in 2019, the company aims to cut travel time in half on the world's busiest routes by providing a sustainable and efficient alternative to traditional air travel. Their aircraft can cover distances up to 750 miles, making it suitable for over half of the busiest domestic routes in the U.S. With advanced propulsion technology, Odys Aviation promises a 76% reduction in CO2 emissions compared to conventional aircraft, addressing both efficiency and environmental impact.
Odys Aviation has made significant strides, including raising $12.4 million in funding from investors such as Giant Ventures, Soma Capital, and the U.S. Air Force. Recently, they secured additional investment from Knighthood Global, expanding their market reach globally. The company plans to launch a full-scale prototype in 2024, with commercial availability targeted for 2025. Their VTOL aircraft is designed to operate from vertiports and helipads, enhancing flexibility and reducing the need for traditional airport infrastructure. This innovation is set to redefine regional air travel, offering a private aviation experience at competitive prices.
18. Altro
Year Founded: 2019
HQ: LA, California, USA
Size: 200+
Founders: Michael Broughton, Ayush Jain
Altro is a mission-driven fintech startup that helps individuals build credit through non-traditional payment methods, such as recurring digital subscriptions. Founded in 2019 by Michael Broughton and Ayush Jain, the company aims to democratize access to credit by leveraging payments for services like Netflix, Spotify, and Hulu. Altro's innovative approach connects these payments to credit bureaus, enabling users to improve their credit scores without incurring additional costs. This model is particularly beneficial for the 63 million unbanked or underbanked Americans who face significant barriers to accessing financial services.
In addition to its credit-building services, Altro focuses on financial education, offering over 350 educational audio clips covering topics such as cryptocurrency, investing, and trading. This initiative aims to enhance users' financial literacy and further improve their credit scores. The company, headquartered in San Francisco, has garnered significant investor interest, raising $21 million in total funding, including an $18 million Series A round led by Pendulum and supported by Jay-Z's Marcy Ventures. Altro continues to grow, planning to expand its team and launch new features such as free banking services to address the needs of the unbanked population.
FAQs
1. How successful is the Los Angeles startup ecosystem in 2024?
Los Angeles ranks #4 globally and #3 in the US in the 2024 Global Startup Ecosystem Report (GSER), tied with Tel Aviv. This strong ranking reflects the city's ability to attract top talent and investment across diverse sectors such as crypto, gaming, and cleantech.
2. What are the most successful startup sectors based in LA, California?
Los Angeles' startup ecosystem is particularly strong in sectors like cleantech, gaming, and crypto. Notable new unicorns in these sectors include Divergent 3D, Newlight Technologies, and Restaurant365.
3. What are some recent major funding rounds in Los Angeles startups?
Recent significant funding rounds in Los Angeles include $1.05 billion for parking tech startup Metropolis, $150 million for VideoAmp, and $70 million for Chaos Industries. These investments highlight the continued strong financial support for LA startups.
