Daily Business Report: Tuesday, June 1, 2021
San Diego tech venture capital funding
on pace for another record year in 2021
Technology companies remain confident in San Diego as an innovation hub. The market has evolved into a strong talent pool that attracts creativity and vibrancy. That’s according to JLL’s Technology Insight report.
In addition to Fortune 100 tech companies forming beachheads in the innovation clusters, startup companies have seen growth after receiving record level venture capital funding.
Over the last 18 months, startups in Downtown received the largest share of new VC funding, with 31 rounds averaging $25 million per deal. This is driving demand for an emerging innovation Downtown submarket.
On the heels of 2020’s record year of VC funding for the overall market, 2021 is on pace for another record year with $832 million year-to-date through May.
The Outlook
San Diego’s allure as one of most desirable cities to live keeps it on the map as a destination for tech companies seeking its quality lifestyle, while also having the lowest average asking office rents among key California markets. With three local major universities in expansion mode, this will also provide further pipeline for defense, tech and life science industries. The office outlook is upbeat, as many companies ranging from growing startups to mature tech firms are looking to grow their commitment to San Diego.
PHOTO: Courtesy of Rafael Pol on Unsplash
Gear up for a big fight over sports betting
at California tribal casinos, horse racing tracks and more
Buy Emily Hoeven | CalMatters
Californians would be able to legally bet on Padres, Warriors, Dodgers and 49ers games — among others — at tribal casinos and horse-racing tracks if voters pass a measure that qualified Thursday for the November 2022 ballot.
It will likely be one of the most high-profile and expensive fights of the year — not wanting to be shut out of a potentially billion-dollar market, card rooms and non-tribal casinos have already funneled hundreds of thousands of dollars into the reelection campaign of Attorney General Rob Bonta, who’s tasked with writing the ballot measure title and summary many voters use to make their decisions. Meanwhile, California, which is home to the most professional sports teams in the nation, stands to collect up to $500 million in tax revenue annually if the measure passes. It could have collected even more under proposed legislation that would have allowed sports betting at non-tribal card rooms and on state-sanctioned websites, but the proposal died last year amid tribal opposition.
Opinion:
Assemblywoman Lorena Gonzalez out to
cripple small business owners and their employees
Assemblywoman Lorena Gonzalez nearly destroyed the entire independent contracting industry with her notorious legislation Assembly Bill 5. Now, she’s set her sights on small business owners and the hundreds of thousands of Californians they employ.
Assembly Bill 257 aims to demote over 25,000 franchise owners to middle managers and subject them to the authority of large corporations, an unelected board, and eventually, corrupt unions that put people like Gonzalez into office. The bill seeks to hit small business owners – particularly restaurant owners and workers – as they gasp for life after more than a year of Gov. Gavin Newsom’s statewide shutdowns, restrictions, and mandates.
The legislation, which could be called “AB5 2.0” for the devastating impact it would have on jobs, workers’ and businesses’ autonomy, takes advantage of the fact that most people don’t understand just how independent franchises truly are of their parent brand. Contrary to misconceptions, local franchise owners are responsible for hiring and firing decisions, setting wages and benefits, and ensuring their businesses comply with health, labor, and safety laws. The franchisor has very little say over the day-to-day operations of the small business.
If Gonzalez gets her way, franchise owners and the more than 373,000 people they employ would become employees of the national brand, and subject to its decisions, and the franchisor would be liable for actions by the franchises.
Coastal Commission raises concerns
over plans for De Anza Point
By Dave Schwab | sdnews.com
A proposal by Campland on the Bay to demolish vacant mobile homes at the former De Anza Cove mobile home park and convert about 150 mobile home sites there into RV spaces, was paused after the California Coastal Commission attached numerous conditions to those plans.
Jacob Gelfand of Terra Vista Management, which operates Campland on the Bay as well as Mission Bay RV Resort adjacent to the now-vacant mobile home park at De Anza Point, pulled his proposal from consideration by the Coastal Commission on May 12. The move came after Coastal Commission staff recommended requiring numerous conditions to approve Campland’s RV conversion proposal.
“We remain fully committed to moving forward,” said Gelfand describing the benefits of Terra Vista Management’s plans as “significant and wide-ranging.” Those conditions, Gelfand said, include repair of the bike and pedestrian path around the peninsula and abatement of the vacant mobile homes.
“While we had hoped to be able to move forward after the May 12 hearing, we need more time to continue work on final plans before resubmitting the full scope of the project to the Coastal Commission,” said Gelfand.
Campland’s plans call for adding 150 more RV campsites to the existing 260 there while re-opening the scenic coastal bike and pedestrian path around De Anza Point as part of its five-year lease extension with the city.
FDA approves Scripps Research’s
ozanimod for ulcerative colitis
Ozanimod, the drug invented at Scripps Research that won FDA approval last year for relapsing forms of multiple sclerosis, has been approved in the United States for a second high-need medical condition, ulcerative colitis.
The once-daily oral drug, sold by Bristol Myers Squibb under the name Zeposia, can now be prescribed to treat adults with moderate to severe forms of the inflammatory bowel disease. Notably, it’s the first drug in a novel class of immune-modulating compounds to be approved for ulcerative colitis, which affects about 1 million people in the United States.
“For patients with ulcerative colitis, this oral drug offers a better and more convenient option to control disease progression and improve quality of life,” says Hugh Rosen, MD, PhD, who invented ozanimod along with fellow Scripps Research professor Edward Roberts, PhD, and their laboratory colleagues. “The hope is that this will lead to fewer dangerous complications or serious infections than current treatment options, providing a steadier path for newly diagnosed patients as well as those failing other treatments.”
Credit Union’s Sarah Bilyeu named 2021
IABC/San Diego Communicator of the Year
Sarah Bilyeu, senior vice president of business development and community relations at San Diego County Credit Union, has been named the 2021 IABC/San Diego Communicator of the Year. The award recognizes local leaders who demonstrate strategic excellence in communication, and lead the way with their contributions and high quality work.
Bilyeu was selected for her exceptional leadership, demonstrated strategic communication and passion for her work which has had a significant impact at SDCCU. In her time with the credit union, she has been instrumental in expanding the community relations, public relations and business development activities to help elevate awareness of SDCCU and contribute to the organization’s success.
Bilyeu joined SDCCU in 2013, bringing with her nearly a decade of experience in communications. Before joining SDCCU, Sarah served on the public relations and corporate communications team at Bridgepoint Education where she developed and managed multiple complex internal and external communications initiatives to support key business goals to ensure message consistency, increase brand awareness and enhance the organization’s reputation.
GoSite names Bhavin Rawal, Randall Turner
and Gary Arnold to top company roles
GoSite, an all-in-one platform for small businesses selling services, announced three top level hires — Bhavin Rawal, Randall Turner, and Gary Arnold — to further invest in supporting small business growth.
The cloud-based platform and mobile app transforms the way small business owners run their businesses by making it easier for their customers to find, book, and pay for services online.
Bhavin Rawal was appointed as the company’s chief product officer. In this role, Rawal will be leading product management, engineering, and design teams to provide comprehensive product expertise as the company moves toward product-led growth and builds out its fintechofferings.
GoSite welcomes Randall Turner as executive vice president of strategy and business development. Turner brings nearly two decades of founder and acquisition experience in SaaS and digital services working with consumers, small businesses, and enterprises.
GoSite continues to focus on growth by appointing Gary Arnold as executive vice president of marketing. Arnold hails from Amazon and GoDaddy and most recently served as the global head of product marketing — merchant solutions at PayPal.
Northrop Grumman secures $99 million Navy contract
Northrop Grumman has received a $99 million contract modification from the U.S. Navy for additional low-rate initial production of a lot 5 MQ-4C Triton unmanned aircraft system. The action expands the scope of the previously awarded, fixed-priced incentive contract and the military service will obligate the full value of the modification from fiscal years 2019 through 2021 funds, the Department of Defense said.
Northrop will carry out work in California, Texas, Maryland, Indiana, Utah, Mississippi, North Dakota, West Virginia and various areas within the continental U.S. The Titon program, a seagoing variant of the company’s Global Hawk unmanned surveillance aircraft, is bsed in Rancho Bernardo and its San Diego team will conduct 25 percent of the work.
DOD expects all tasks to conclude by January 2025.
TaylorMade Golf acquired by South Korean private equity firm
KPS Partners will sell TaylorMade Golf to South Korean private equity irm Centroid Investment Partners for an undisclosd price. A globally recognized golf equipment maker and one of Carlsbad’s largest employers, TaylorMade’s sale comes amid a revival of golf, which was considered a safe outdoor sport during COVID-19 lockdowns.
Software startup CMX raises $50 million in VC funding
CMX, a San Diego startup that helps big food brands like Burger King and Chick-fill-A manage operations and supply chain risk, safety, and equity compliance, has raised $50 million in a Series A round of VC funding. The company will use the funds to add up to 20 employees to its current staff of 38 over the next 18 months.
California employment law firm opens new San Diego office
Davtyan Law Firm announced the opening of its new office in the Emerald Plaza at 402 West Broadway, Suite 400, in Downtown San Diego. The Glendale-based employment law firm said the new office location will help better serve San Diego clients.
Due to COVID protocols, all appointments will be virtual until further notice. Call 858-956-7899 for more information.
Synbal, in collaboration with La Jolla Institute for Immunology,
is awarded grant to develop mouse model for COVID-19 research
Synbal Inc., a San Diego privately held biotechnology company specializing in the development of genetically complex, humanized mouse models for research, has received a grant from the National Institute of Allergy and Infectious Diseases to develop a novel, humanized mouse model for Covid-19 therapeutics research.
Synbal is partnering with La Jolla Institute for Immunology (LJI) to fully characterize the model that will then be made available in early 2022 to the research community to accelerate the development of new therapeutics that can be used to treat this devastating pandemic.
“This grant is a further validation of the active genetics approach that Synbal is taking to develop novel pre-clinical models for use in the development of therapeutic treatments for cancer, autoimmunity and infectious diseases,” said David R. Webb, CEO and board Member of Synbal.
“With this partnership, we are tackling a major public health issue and establishing a strong collaboration between academia and industry,” says Sujan Shresta, a professor in LJI’s Center for Infectious Disease and Vaccine Research. “The mouse models we develop will be important tools for scientists as we develop next generation COVID-19 vaccines and therapies.”
Sustainable method to 3D print steel
wins big at Triton Innovation Challenge
Engineers, physicians, biologists and business students at UC San Diego showcased their environmentally focused technologies at the ninth annual Triton Innovation Challenge business competition. A startup developing a 3D printing technique that can manufacture steel cheaper than existing methods, with no carbon emissions and minimal wasted scrap metal, earned the $7,000 Grand Prize.
The Triton Innovation Challenge is a business competition focused on fostering creativity and bringing to the spotlight commercially promising, environmentally focused technologies generated by students, staff and faculty from across UC San Diego. The competition is hosted by the Jacobs School of Engineering, Rady School of Management and Scripps Institution of Oceanography, and showcases startups or technologies that come from, are inspired by, or directly impact nature. The competition is funded by the William and Kathryn Scripps Family Foundation.
Green Steel Printing, a venture founded by Jacobs School of Engineering materials science PhD students Olivia Dippo and Andy Zhao, earned the Grand Prize for their solution to reducing carbon emissions and metal waste in the steel manufacturing industry. Current steel manufacturing processes take iron oxide ore, and burn coal or natural gas to reduce the ore into iron, which is then converted to steel. This accounts for 7 percent of global carbon dioxide emissions.
