Many of the things we came to loathe in 2020 will continue on in 2021 — the pandemic, misinformation and injustice. But that's also true for the ambition, innovation and adaptability that propels us into a brighter future.
In many ways startups are built for moments like this, where unexpected problems and opportunities pop up, prompting widespread changes in consumer behavior. The new year is already bringing more of these societal pivots, and entrepreneurs will be building and failing and rebuilding and iterating to solve for emerging needs.
It's in that spirit of looking ahead that Austin Inno puts together a Startups to Watch list each year. It focuses on the local startups that we believe are poised to have a big year, whether that means landing a big round, launching a product or solving an emerging problem. We generate this batch of promising companies through our daily reporting on the city's startup ecosystem — we're fortunate to get exposed to dozens of early-stage companies at demo days, pitch competitions and networking.
We can't pretend to have a crystal ball, but several companies that have appeared on this list in past years have gone on to become local rockstars on the startup scene. And, of course, others have had more typical startup trajectories or even failed. (You can learn more about a few startups to watch from previous years at the bottom of this post.)
In past years, we've named all the startups on the list at once. This year, we have been revealing them on a weekly basis since Jan. 8, and now the full list is published. Check out the details on all the companies below, then tune in to a Feb. 11 virtual event highlighting some of the founders, presented with our sister publication the Austin Business Journal. Register here.
Laundris
How do you innovate on laundry? Make it faster and easier. That’s the approach Laundris has taken. The B2B commercial laundry software platform helps businesses manage inventory, track items in real time and see where everything is at. The startup’s founder and CEO, Don Ward, last year was recognized as one of Google’s Top 30 Black Founders in America to Watch in 2021. Laundris has raised about $1 million since its founding in 2017.
Sustainment
In the year 2020, almost everyone learned about supply chains as the pandemic exposed their vulnerabilities. Now there's a new Austin startup hoping to become a big player in the mammoth market, particularly at the intersection of government and business. Sustainment, a platform that helps connect manufacturing vendors and heavy industry, emerged on the local startup scene last year and in January secured a $2.1 million funding round. The company's software is already used by the U.S. Department of Defense and state government clients, including the Oklahoma Department of Commerce. The startup is led by CEO Bret Boyd, who is also a U.S. Army veteran and co-founder and partner at Grayline Group, as well as a former VP at Stratfor and TrackingPoint.
Yotta Energy
While Yotta Energy has been around since 2017, its flagship solar storage product is just about to launch in 2021. The startup, led by CEO Omeed Badkoobeh, developed solar battery storage units for individual rooftop panels that are relatively easy to install. It has raised about $7.5 million through grants and equity funding as it developed its storage units. Now it is focusing on commercial clients with its new tech before looking at residential opportunities. The startup also last year landed the Solar Impulse Foundation’s Solar Impulse Efficient Solution label.
PRESERVED
One of the biggest obstacles to holding criminals accountable for sexual harassment, bullying and stalking is the lack of evidence. In particular, keeping a reliable record of harassing activities can make a big difference. That's where PRESERVED, founded by CEO Christine Townsend comes in. Its app provides tools for users to log photo evidence, scan documents, upload screenshots, record audio and more, all while verifying information such as time, date, location and even weather conditions. More recently, the startup has developed directories of divorce lawyers, private investigators, nonprofits and others who can assist those trying to get out of dangerous situations.
Check App
The world has seen how powerful smartphones can be in documenting interactions between police and civilians. But our phones hold more than just video capabilities. Michael Odiari developed a new way to use phones to improve safety for police and the people they pull over. Registered users can upload their drivers license and registration, and then use the app to quickly give an officer documents before a face-to-face conversation. Once both sides are connected, the app launches video conversation between driver and officer to establish communication. Odiari has worked with the Kyle Police Department to test the app, and the startup was part of the Sputnik ATX accelerator last year.
Tappy Guide
People with disabilities face uncertainties every day. This is where Tappy Guide wants to help. The startup, which was recently part of the Austin Technology Incubator, built an app for people with visual, hearing or mobility impairments that provides real-time data and location information, as well as data on accessibility of some buildings and transit options. The startup, founded by CEO John Petrous, also has indoor navigation capabilities to assist in public spaces, museums, venues and other facilities. It has received funding from Ford and the city’s transportation department through the Austin City:One Challenge.
Supply Drop
Everybody could use an assistant these days to properly maintain their stock of household staples like laundry detergent, toilet paper and trash bags. And that’s what Supply Drop is designed to do – take your list of needs and learn and confirm how often you want to have them delivered. And it does so with predictive analytics. The startup was founded in 2019 by serial entrepreneurs CEO Andrew Busey and COO April Downing, and it has raised $2 million from a variety from Austin investors.
Knit
Yesterday’s goal of reaching millennials is quickly evolving into a quest to reach Gen Z. That’s where Knit comes in. The startup, formerly known as PurPics, taps into its network of Gen Z consumers, largely on college campuses, and connects them with early-stage brands, especially in the CPG space, to help them tweak their products based on target user feedback before launching. Its analytics of user video surveys provide quick turnarounds for developers. In exchange, Knit channels money from the brands to its users’ favorite social causes. The startup is led by co-founder and CEO Aneesh Dhawan, and it has raised about $2 million.
First Dollar
After founding health care management software startup Patient IO, which was acquired in 2016, First Dollar co-founders Jason Bornhorst and Colin Anawaty have a new health-oriented startup. And they launched it during the pandemic, no less. First Dollar is a health care savings account platform that was built on the idea that for every dollar you put into a First Dollar HAS, you get $2 back in value in savings and spending. It also assists with family healthcare and retirement savings. The startup came out of stealth mode earlier this year with $5 million in funding.
Shipshape Solutions
It’s pretty easy to ignore your water heater until there’s a puddle under it and you’re stuck with a cold shower. And the same is true of many aspects of our homes. Shipshape aims to simplify that by putting sensors in or near common trouble spots, such as overheating attics or crawlspaces with too much moisture. It anticipates maintenance issues and alerts you of problems. And it suggests upgrades that might save money in the future. The startup, founded by Alexander Linn, Ryan Dalton and Becket Linn, moved from San Francisco to Austin last year, and it was in the Techstars Alabama EnergyTech Accelerator.
Radical Girl Gang
Founder Bre Cruickshank started her career in product line management at Nike before moving to Austin to work in digital merchandising at Outdoor Voices. In 2019, she launched Radical Girl Gang, a online marketplace that curates women-owned brands in clothing, accessories, home goods and wellness. The startup has mostly been bootstrapped, but landed its first angel investor in Beth Goff-McMillan, CEO of SKG, and it was selected as one of the women-led startups to receive funding from the Beam Angel Network.
BOXT
Many of us shop for wine by the label or by the type. Austin boxed wine startup BOXT looks at itself not as a wine company but as a taste bud company that matches customers with the types of wine they love based on a quiz. The startup, founded by Sarah Puil, a former entrepreneur in residence at Next Coast Ventures, has raised some seed funding and quickly sold out of its holiday offerings.
ReturnSafe
Going back to the office comes with a lot of trepidation. ReturnSafe has developed a screening and contact tracing app, in addition to vaccine management tools to help businesses get back to normal in the safest possible ways. The startup, led by Tarun Nimmagadda, has put together a team of doctors and medical professionals, in addition to developers and engineers, to help organizations including Sesame Street and the San Antonio Spurs limit the risks of spreading Covid-19. In late December, it raised a $3.2 million found of funding led by Fifty Years and Active Capital.
Gawq
Everyone has an opinion on the news these days. Gawq, a curated news app, seeks to give readers a way to compare content across the left-to-right political spectrum, as well as help rate articles for bias. The startup, founded by Joshua Dziabiak, a serial entrepreneur and former CMO at The Zebra, just launched in the back half of 2020. It’s bootstrapped for the time being, but it has already amassed thousands of users.
LIFT Aircraft
Throughout our lifetimes, we’ve almost all envisioned personal aircraft at one point or another. Now, it’s here. LIFT Aircraft is an Austin startup on the forefront of personal flight. It was founded by Matt Chasen, who previously founded uShip and has a background in aerospace. The startup’s Hexa aircraft is designed for non-pilots to experience personal flight. It looks a bit like an extra large drone, and it runs on electric propulsion. This year, it’s hoping to start the 25-city tour it put off when the pandemic set in.
Stylust
Apps still have our attention. But perhaps not as much as text messages. That’s where startup Stylust is making its play with a text-based shopping platform that acts almost like an assistant that helps with purchases and returns. The company, founded by Melissa Bridgeford in 2018, has raised $3 million, and it has made in-roads with alcohol companies, including bourbon maker Pinhook and rum maker Marsh House Rum. But it’s more than booze. The text-based shopping allows shoppers to send in screen shots or links to just about anything. Then, Stylust’s AI and human assistants provide the cheapest and best matches available online.
Fundr
Fundr, a portfolio startup of Austin accelerator Sputnik ATX, is an investment marketplace that uses artificial intelligence to create a diversified portfolio of startups for investors. The company, launched in 2018 by co-founder and CEO Lauren Washington, along with Boris Moyston and Chief Technology Officer Jean-Philippe Desmontils, automates the fundraising process by connecting founders and investors with its proprietary algorithm. Its tech comes at a critical time as startup ecosystems across the nation advocate for more venture capital to flow to founders of color.
Didactic
Stealthy edtech startup Didactic is led by co-founders Gagan Biyani, who was a co-founder of online course provider Udemy, and Wes Kao, who co-founded altMBA along with Seth Godin. Though details are limited, the company says it is working on an online learning platform that uses cohort-based courses. Earlier this year, Didactic reported raising $4.3 million in equity funding from investors including First Round Capital's Bill Trenchard, Backstage Capital founder Arlan Hamilton, AngelList co-founder Naval Ravikant, Netflix co-founder Marc Randolph and his son, Logan, and Jason Calacanis. Didactic also raised $750,000 from 517 investors on a crowdfunding campaign on Republic. It just added Shreyans Bhansali, a former engineer at Venmo and co-founder of Socratic, as a technical co-founder.
Volcon
Dirt bikes and UTVs are entering the electric era at Volcon, a recently launched startup founded by Christian Okonsky, who is also founder of electric vehicle manufacturer Ayro, and Adrian James, who founded Sprout Equity Ventures. It has raised $4.5 million through a combination of accredited investors earlier this fall, as well as non-accredited investors who bought small stakes through a WeFunder campaign that raised $2.5 million from more than 1,000 investors. After opening a temporary assembly space in Round Rock, it plans to soon build an HQ and customer experience center in Liberty Hill.
Virtual Arts Inc. (DanceFight)
Competitive content. Yep, it’s a thing. And DanceFight, an app made by Austin-based Virtual Arts Inc., has found a lot of fans and competitors quickly. After emerging in early 2020, it raised a $1.9 million round of funding from Quake Capital Partners, Sound Media Ventures, VSCO CEO and co-founder Joel Flory and Thunderstruck Dance Competitions. Its app lets users compete side-by-side in videos. It was founded by Ryan Jordan and Rich Sloan, who met at SXSW. While dancing is what it's known for, the company plans to branch out to basketball trick shots, singing, comedy, rap and more.
Siera.AI
The pandemic has increased the already growing demand for robotics, and Siera.AI has developed AI-driven software that can help them navigate more safely in warehouses. The startup, led by CEO and CTO Saurav Agarwal, was founded in 2017. In 2020, it reported more than $4.5 million in new equity funding. When it was founded, it was supported by a small grant from the National Science Foundation. It later raised $2.1 million across four rounds of funding from investors including James Kuffner and Dorm Room Fund, according to Crunchbase. More recently, it announced a strategic partnership with UniCarriers Americas to use Siera.AI's safety and autonomy tech in its material handling equipment.
