Daily Business Report: May 23, 2024
Meet the 2024 Procopio
LaunchPad Incubator Startup Class
Four innovative startups have been selected to participate in Procopio’s 2024 LaunchPad incubator class of companies. They include the developer of a SaaS platform decoding human cognition (Braintelligence), the maker of an indoor-safe continuous power generator (Emission Free Generators), the creator of a digital end-to-end platform for fire safety (Digital Fire Prevention), and an innovator in battery diagnostics helping to maximize battery life (ReJoule).
Among the offerings of the LaunchPad incubator is office space in Procopio’s Del Mar Heights offices, located in the heart of San Diego’s high-technology community. The program also offers additional benefits for emerging growth companies beginning their formation, protection of core technology, early funding and growth.
LaunchPad participants receive a selection of complimentary corporate and intellectual property legal services along with office space and back-office business support. The nine-month program also includes educational opportunities on key topics including valuation, funding, intellectual property strategy, employment issues, and pursuing a strong exit. Procopio attorneys provide ongoing legal support and assist with corporate structuring, patent protection, investor pitches, branding, and growth strategy.
Top Photo: Digital Fire Protection’s easy-access Data Vault holds critical up-to-date building information for fire safety vendors and historical detail for fire departments; eliminating information, data or document loss – and keeping you in compliance.
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Sapporo-Stone Brewing unveils phase 1 of its $60 million expansion
Two years following the announcement of its acquisition by Sapporo U.S.A. San Diego-based Sapporo-Stone Brewing, unveiled the near completion of phase one of its expansion project at its Escondido brewery. The $20 million investment in the Escondido facility is one of two significant investments for growth with $40 million invested in the company’s Richmond, Va. operation. These investments will result in the doubling of the company’s capacity to about 700,000 barrels a year across its bi-coastal breweries. The brewing of Sapporo beers in Escondido and Richmond, Va. is now underway.
Sapporo-Stone Brewing is now a combined team of nearly 850 employees, about 600 of whom are based in San Diego County.
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California Supreme Court appears hesitant
to overrule voters on gig worker law
By Levi Sumagaysay | CalMatters
Based on their line of questioning, California Supreme Court justices seemed to be reaching for a compromise as they heard oral arguments Tuesday in the long-running legal saga over whether gig workers should be considered independent contractors or employees.
Proposition 22, the gig industry-backed initiative that 58 percent of state voters passed in 2020, has been mired in a legal back-and-forth since it became law — including being ruled unconstitutional by a Superior Court judge before being upheld by a state appeals court. Uber, Lyft, DoorDash, Instacart and other companies have used the law to treat their drivers and delivery workers in California as independent contractors, not as employees.
The specific question before the state’s highest court is whether Prop. 22 conflicts with the state Legislature’s constitutional power to enforce a complete workers’ compensation system. Because of a clause in the initiative declaring gig workers independent contractors not eligible for workers’ comp, the whole law could be thrown out. But the justices did not seem to want to do that.
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General Atomics awarded $94.8 million contract for AI Smart Sensor prototype
General Atomics Aeronautical Systems Inc. (GA-ASI) was awarded a $94.8 million contract for research, development, test, and evaluation of Autonomy and Artificial Intelligence for the Smart Sensor Intelligence, Surveillance, and Reconnaissance (ISR) prototype. The work was awarded by the Army Contracting Command on April 30, 2024, with an estimated completion date of March 31, 2026.
The Smart Sensor System is being developed by the Chief Digital AI Office (CDAO) with a goal of creating a platform-agnostic AI and autonomy system that enables autonomous surveillance and reconnaissance operations in contested environments, as well as being able to communicate with other platforms.
“General Atomics has invested in and deployed autonomy capabilities for several years as part of our aircraft mission systems,” said Darren Moe, senior director for automation, autonomy and AI development. “Being selected to perform this work against a pool of almost 1,000 bidders is a great achievement and opportunity for our company to apply its AI and autonomy skills to this important development program.”
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California Senate passes bill to tighten rules on plastic bags
By Chris Jennewein | Times of San Diego
Legislation by Sen. Catherine Blakespear of Encinitas to ban the use of thin-film plastic bags at grocery store checkouts passed the California Senate on Tuesday.
Senate Bill 1053 closes a loophole to the original ban enacted 10 years ago to ensure that customers are offered either paper bags or fully reusable plastic bags at checkout.
“California’s original ban on plastic bags hasn’t worked out as planned, and sadly, the state’s plastic bag waste has increased dramatically since it went into effect,” Blakespear said. “We need to do better.”
Blakespear said that “almost none” of the plastic bags currently sold at checkout are actually recycled, so her bill requires bags to meet higher recycling standards.
“The reality is that these bags are difficult to recycle — and so few are ever recycled — and they are seldom reused,” she said. “Instead, they have contributed to California’s growing plastic waste.”
SB 1053 passed the Senate on a 30-7 vote and now moves to the Assembly for consideration.
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California introduces pre-K through 3rd teaching credential
The California Commission on Teacher Credentialing has established a new teaching credential for pre-kindergarten through third grade (PK-3) aimed at expanding a diverse workforce of educators who have the necessary knowledge, skills, and abilities to provide developmentally appropriate learning for all young children. Prospective PK-3 teachers must complete a commission approved teacher preparation program that includes coursework and supervised clinical practice in California schools as well as completion of a performance assessment.
Cetera announces new partners at Wilde Wealth Management
Cetera Financial Group announced that industry veteran financial advisers Jeffrey Anthony and Jason Fial have joined the ownership group at Wilde Wealth Management. Wilde Wealth Management is an independent wealth management firm that is one of the largest businesses within the Cetera Advisors community. Cetera previously completed a minority investment in Wilde Wealth Management that empowered the expansion of the ownership group to additional advisers.
Brainomix showcases growing evidence for its imaging biomarkers in lung fibrosis
Brainomix, a pioneer in artificial intelligence (AI) imaging solutions to enable precision medicine, announced a series of new studies that were presented this week at the American Thoracic Society (ATS) Conference in San Diego. The studies reflect the company’s expanding life science partnerships and academic collaborations with luminary research centers in the lung space.
SOCi unveils groundbreaking Genius Search
SOCi Inc., the CoMarketing Cloud for multi-location enterprises, unveiled Genius Search, a groundbreaking application designed to transform local search optimization. Genius Search transcends traditional listings management tools by integrating top AI models to automate data analytics and local search optimization at every location. Genius Search analyzes top local-search ranking factors and aggregated insights from real-time local consumer activity—including search behavior, business reviews, and social media engagement.
Swiss biotech innovation on display at BIO 2024 International Convention
Swiss life science innovation will again be on display at the BIO 2024 convention June 3-6 in San Diego. Switzerland Global Enterprise will present 41 leading Swiss biotech stars at the SWISS BIOTECH pavilion demonstrating Switzerland’s key role in the healthcare sector. The companies presenting at this year’s conference show a wide range of innovative solutions from drug discovery, leveraging AI for data analytics to clinical trial management and pharmaceutical consulting services.
Ryan Sandler joins Presidio Capital Management as a wealth manager
Presidio Capital Management, a San Diego wealth management firm, announced that Ryan Sandler, CFA, has joined the firm as its newest wealth manager. After graduating from Canyon Crest High School in San Diego, Ryan earned his bachelor’s degree in business from the University of California, Berkeley. Following a successful career in software sales, Ryan transitioned to finance where he earned the prestigious CFA designation—achieved by less than 2 percent of wealth managers nationwide. Over the past five years, Ryan has led investment teams in building and managing model portfolios.
Wiliot introduces new ambient IoT food safety initiative
Underscoring its commitment to set a new benchmark for food safety, Wiliot, the ambient Internet of Things (IoT) pioneer, announced a major new food safety initiative that works to create completely transparent and traceable supply chains – soon required for FSMA 204 compliance – through the adoption of ambient IoT technology. Ambient IoT is a battery-free wireless technology that is being incorporated in multiple wireless standards, such as Bluetooth, 5G Advanced, 6G, and Wi-Fi – allowing food products to be connected to the internet and the power of AI at a fraction of the cost of legacy technologies.
Bonkers Toys signs worldwide licensing deal with Invisible Narratives
One of the fastest-growing US toy companies, Bonkers Toys, has signed a worldwide, multiyear licensing deal with Invisible Narratives, the first-of-its-kind Tra-Digital studio created by former Paramount and Dreamworks SKG President Adam Goodman and Chief Creative Adviser Michael Bay, to manufacture and distribute toys based on the record-setting animated YouTube series “Skibidi Toilet.” The partnership between Bonkers Toys and Invisible Narratives will bring “Skibidi Toilet” toys to major retailers worldwide beginning in the fall of 2024.
Procede Software named an ATD 2024 BEST Award winner
Procede Software, a leading heavy-duty commercial vehicle dealer management system and solutions provider, announced they have been named an Association of Talent Development 2024 BEST Award winner. The BEST Awards is a global program designed to recognize organizations that demonstrate enterprise-wide success as a result of employee talent development. Being named to the list reflects Procede’s dedication to continuous learning and professional development at every level of the company.
Allez Health announces $60 million capital raise
Allez Health Inc., formerly known as Zense-Life Inc., an emerging biosensor venture founded by proven experts in the continuous glucose monitoring (CGM) space, announced a $60 million Series A+ financing. The round was led by Korean in-vitro diagnostics company Osang Healthcare Co. Ltd. as a strategic investor, with participation from existing investors. The new capital is expected to be used to accelerate growth towards pivotal trials, to support regulatory approval filings, and to scale manufacturing operations. Allez Health, Inc. is an innovative smart biosensor company for connected digital health platforms.
Clearspeed appoints insurance industry veteran Kim Garland to Advisory Board
Clearspeed, a leading provider of voice analytics technology for risk assessment at scale in the government, insurance, banking, sports integrity, and security sectors, announced the appointment of Kim Garland to Clearspeed’s advisory board. Garland brings over 35 years of experience in leading insurance corporations to success by implementing innovative business growth strategies and driving change amidst complex challenges. Garland will be instrumental in furthering Clearspeed’s rapid expansion to enable clients to assess risk at scale. In his role, Garland will also serve as a resource for Clearspeed’s sales team,.
Survey: C-suite execs trust AI’s potential, but face challenges
A new survey of C-suite executives and AI leaders shows while enterprise decision-makers trust the potential of AI, many lack confidence in their company’s strategy to execute as well as the data readiness to ensure reliability of AI outputs. Moreover, 7 in 10 executives say their AI strategy is not fully aligned to their business strategy today. The survey, conducted for Teradata by NewtonX, a leading global B2B market research company, included expert interviews and a quantitative study of executives and decision makers who have inside knowledge into their company’s AI strategy and execution.
