The 25 hottest San Francisco startups to watch in 2016
Honor wants to reinvent how you take care of your elderly parents.
Unlike on-demand services like Uber and Lyft that let people accept jobs right away, Honor wants its home-care professionals, who start at $15 an hour, to foster long-lasting relationships with seniors. In January 2016, the startup changed its caretakers from contractors to employees, even offering stock options and benefits. Its model of taking care of not only the elderly, but also its caretakers, made Honor stand out among the new startups in San Francisco. Earlier this month, it was named Best New Startup at the Crunchies, the Oscars of startups.
Founded: 2014 by Sandy Jen, Cameron Ring, Monica Lo, and Seth Sternberg
Funding: $20 million from Andreessen Horowitz, Homebrew, and Kapor Capital.
Checkr may be the big winner of the "gig economy."
What it is: More companies are providing on-demand services carried out by independent contractors, who drop off your deliveries and drive you from place to place, and many of these have gone through Checkr. The company is poised to take advantage of the growing freelancer market by offering the same background checks offered by traditional firms, but quicker. Its background checks have become staples for companies like Uber, Handy, Instacart, and GrubHub.
Checkr's background reports can be ready anywhere between a few hours and a couple of days, though most are ready within 24 hours. Its background checks include address history, sex-offender searches, and Social Security-number verification, in addition to checking applicants' names against terrorist watch lists and crime databases.
Founded: 2014 by Jonathan Perichon and Daniel Yanisse
Funding: $39 million from Y Combinator, Accel Partners, Khosla Ventures, and Google Ventures among others.
Gusto solves the payroll and benefits problems for small businesses.
Founded: 2011 by Joshua Reeves, Edward Kim, and Tomer London
Funding: $136.7 million from Google Capital, General Catalyst, Obvious Ventures, and Kleiner Perkins Caufield & Byers.
Slack is doing away with email and changing how we work.
What it is: Slack is a workplace-communication app that has taken the tech world by storm and wants to change the way businesses everywhere communicate.
Slack does away with long email threads and gives users a group chat room. But this isn't a chat room from the days of AOL Instant Messenger. Slack lets users share files and work collaboratively, in addition to setting up private groups and sending direct messages to individual users.
Founded: 2013 by Stewart Butterfield. Slack was originally an internal tool used by Butterfield's team at Tiny Speck, the company that made the multiplayer game "Glitch," but Butterfield decided to spin it out into its own product and company. The team started working on it at the end of 2012, but it launched in beta in 2013.
Funding: $340 million from Accel, Andreessen Horowitz, Social + Capital, KPCB, Google Ventures, Horizons Ventures, IVP, Spark, DST, and Index.
AltSchool wants to change the education system.
AltSchool wants to bring personalized learning to schools, but not just through putting a screen in front of a kid and pretending its customization. Instead, AltSchool uses something called "playlists," which consist of a weekly mix of 20 to 25 activities per student per week, including individual, small-group, or whole-class projects.
Founded: 2013 by Max Ventilla and Bharat Mediratta
Funding: $137 million from Founders Fund, Andreessen Horowitz, First Round Capital, and the Omidyar Network.
Navdy will change how you drive.
Founded: 2013 by Doug Simpson and Karl Guttag
Funding: $30 million from Upfront Ventures, Shervin Pishevar, Naval Ravikant, Eric Ries, and Brad Feld.
In a key election year, Brigade rallies people to vote.
It's earned the nickname "a Tinder for politics."
But Brigade wants to do more than have its users hit agree or disagree on important issues. The company used interactive voting guides to draw millennials into local politics. Its users' opinions on a local San Francisco election accurately reflected — with one exception — how the voter base ended up voting in the polls.
Founded: 2014 by Sean Parker, Matt Mahan, John Thrall, James Windon, Jason Putorti, and Miche Capone
Funding: $9.5 million from Sean Parker, Ron Conway, SV Angel, and Marc Benioff.
After School is an anonymous app teens are obsessed with.
The app was taken off the App Store and its founders, Cory Levy and Michael Callahan, went back to work creating a new way to make a safe but anonymous place for teens. Since it relaunched in February, it's already caught back on with teens and raised new funding.
Founded: 2014 by Callahan and Levy
Funding: $17.65 million from Accomplice, Naval Ravikant, and Cowboy Ventures, among others
21 could change how payments work on the internet.
Founded: 2013 by Nigel Drego, Daniel Firu, Veerban Kheterpal, Matthew Pauker, and Balaji Srinivasan.
Funding: $116 million from Andreessen Horowitz, Qualcomm, Cisco, and Peter Thiel.
Chariot wants to crowdsource a new way to commute.
The company crowdsources new routes based on demand from its riders. A person can suggest a route, and if there are enough votes to support it, the company launches it. Already people are ditching public-transit options in San Francisco to take more efficient routes between the Financial District and the Marina, or the Embarcadero to Potrero Hill.
Founded: 2014 by Romain Di Vuolo and Ali Vahabzadeh
Funding: $3 million from Major League Baseball Ventures, Winklevoss Capital, SoftTech VC, and Haystack
Workflow makes complicated tasks on your phone as easy as an app.
Founded: 2014 by Conrad Kramer, Nick Frey, and Ari Weinstein
Funding: Unknown. Self-funded from app store and initially supported by Rough Draft Ventures.
Lever already powers hiring for many Silicon Valley companies and wants to make it easy for the world.
Founded: 2012 by Sarah Nahm, Nate Smith, and Randal Truong
Funding: $32.8 million from Scale Venture Partners, Y Combinator, and Redpoint Ventures among others.
Product Hunt discovers the newest and best products.
The company evolved from an email newsletter to a site similar to Reddit, but for products. Users up-vote the new products, startups, apps, podcasts, and websites that are the most popular that day. As it's grown, the company has added sections for games, podcasts, and books, although it still leans heavily on its tech audience. It doesn't stop either at attracting the hot new products — top Valley investors and founders now do "Live" sessions, where they answer questions and provide advice.
Founded: 2013 by Ryan Hoover
Funding: $7 million from Andreessen Horowitz, Google Ventures, SV Angel, and Y Combinator, among others.
Gigster lets top programmers work how they want, when they want.
Founded: 2013 by Debo Olaosebikan and Roger Dickey
Funding: $12 million from Andreessen Horowitz, Y Combinator, Ron Conway, Jason Calacanis, and Ashton Kutcher.
HackerOne turns hackers into help that makes companies secure.
"The general problem is that vulnerabilities are inevitable. No matter what your security system, you are going to find issues," HackerOne cofounder and CTO Alex Rice told Business Insider last year. "The current state of the world is pretty terrible. A researcher that finds [a bug] in the wild doesn't know what to expect."
Founded: 2012 by Alex Rice, Michiel Prins, Jobert Abma, and Merijn Terheggen
Funding: $34 million from Benchmark Capital, Drew Houston, David Sacks, and Jeremy Stoppelman.
Shyp makes mailing packages painless.
What it is: Shyp takes all the hassle out of shipping packages and, one day, wants to own the whole shipping experience. Instead of taking a package to UPS or the post office, all you have to do with Shyp is take a picture of whatever it is you want to send. A driver will then pick up the package within minutes, and you're done.
Shyp comparison-shops across carriers and charges you the lowest price for shipping, adding on $5 plus the cost of shipping. In 2015, the company did away with addresses, allowing users to sign up with profiles, so just typing in a name would send a shipment to an address that they choose.
It's just the beginning in Shyp's ambitions to change how people ship things. Its CEO has hinted at a future where FedEx takes care of the cross-country flights, but Shyp couriers then manage the delivery on the ground, letting its users pick delivery windows and locations that suit them.
Founded: 2013 by Joshua Scott, Jack Smith, and Kevin Gibbon
Funding: $62 million from Kleiner Perkins Caufield & Byers, Homebrew, Machine Shop Ventures, and SherpaVentures, among others.
Eero wants to make Wi-Fi less of a pain.
When you buy three — that's how many Eero says a typical home needs — you'll connect the first to your modem and the others get plugged into power outlets. The devices connect to one another through internal radios. Eero's devices are available for preorder now — you can get one for $199 or three for $499. Its devices are slated to ship by February 2016.
Founded: 2014 by Nick Weaver, Amos Schallich, and Nate Hardison
Funding: $40 million from AME Cloud Ventures, Initialized Capital, Great Oaks Venture Capital, Homebrew, Menlo Ventures, First Round, Playground Global, Redpoint Ventures, and Shasta Ventures.
Eaze makes it easy to get a prescription and a delivery of medical marijuana.
While the "Uber for weed" moniker might have pigeon-holed the startup at first, Eaze has shown that it wants to be more than just another delivery company and become one of the early success stories in the legalization of the cannabis industry.
Founded: 2014 by Keith McCarty
Funding: $12.5 million from 500 Startups, DCM Ventures, and Fresh VC.
Postmates lets you order almost anything and have it delivered to your door in under an hour.
Last week, he told the New York Times that his company "can and will be profitable by 2017." That makes 2016 a make-or-break year for one of the hottest startups in the city.
Founded: 2011 by Sam Street, Sean Plaice, and Lehmann
Funding: $140 million from Tiger Global, Spark Capital, and Founders Fund, among others
Sano Intelligence wants to eliminate the finger prick.
Still largely in stealth, the 4-year-old startup is rumored to be working on a noninvasive patch that monitors your metabolic levels, like blood glucose. It's not designed only for patients with diabetes because Sano wants to open up health tracking to the masses.
A large lunch can spike your glucose levels, leaving you feeling sluggish, said its founder, Ashwin Pushpala, in an interview with TechCrunch. Knowing how much glucose tips you into that sluggish feeling versus just giving you a boost can help anyone make more informed decisions about when and what to eat.
Founded: 2012 by Pushpala
Funding: $10.27 million in seed funding from lead investors True Ventures and Intel Capital in June 2015.
Medium wants to make publishing accessible to everyone.
An obvious example of its power came in October 2015, when Amazon fought back against a New York Times story by posting on Medium. The two companies exchanged posts not on their own sites, but in the "neutral ground" — as Williams called it — of Medium. While the site is a well-known commodity in San Francisco, it's still trying to break out into a global force as big as WordPress.
Founded: 2012 by Ev Williams, Jason Goldman, and Biz Stone
Funding: $82 million from Google Ventures, Greylock Partners, Chernin Group, and Obvious Ventures, among others.
6SensorLabs makes a portable gluten tester to make sure people know what's in their food.
The company won TechCrunch's Disrupt battlefield at CES in January, and is accepting preorders. Nima's gluten testing is just the first step, and its cofounder, Shireen Yates, told The WSJ that it could one day detect everything from E. coli to salmonella in food.
Founded: 2013 by Yates and Scott Sundvor
Funding: $4 million from Upfront Ventures, SoftTech VC, and Mitch Kapor
Shift wants to become the largest car company in the US without owning a single vehicle.
What it is: Instead of collecting cars in a lot, Shift wants to change the age-old system of buying and selling used cars. The 2-year-old startup will deal with the hassle of selling the car, including photographing and setting a competitive price based on market research. For those in the market for new wheels, a Shift "car enthusiast" acts as a personal concierge and brings the car to you to test drive — no visits to a dealership or dealing with pushy salespeople required.
The key to Shift's future, CEO George Arison said in September, is the fact that the company doesn't own a single car. While competitors Vroom and Beepi buy the cars and then sell them online, Shift doesn't keep any inventory. By not owning the cars in the process, Shift thinks it became the largest car company in the US, in the same way Airbnb has built a hotel company without a hotel room.
Founded: 2013 by Christian Ohler, Minnie Ingersoll, Morgan Knutson, Arison, and Joel Washington
Funding: $73.8 million from DFJ, Highland Capital, and Goldman Sachs, among others.
Operator makes it easy to find anything you need.
Founded: 2014 by Robin Chan, Philip Fung, and Camp
Funding: $10 million from Greylock
Juicero is the future of juice, or so Silicon Valley believes.
The startup is still in stealth, but it's already the buzz around Silicon Valley. As one unaffiliated investor, Peter Nieh, put it: "Juicero is looking to be the Keurig of fresh juice. Massive market waiting to be disrupted."
Founded: 2013 by Doug Evans
Funding: Unknown. The startup has completed two rounds totaling $22 million, according to PitchBook. CrunchBase claims that the total is closer to $90 million. The company was rumored to be completing an additional $120 million round in January 2015.