Should Venture Capital-Backed Startups Get Federal Stimulus Money?
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Something in the Silicon Valley Air: Why Multinational Firms Send Their Entrepreneurs Here
Dockless Dilemma
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Sponsored
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You can hear her work on \u003ca href=\"https://www.npr.org/search?query=Rachael%20Myrow&page=1\">NPR\u003c/a>, \u003ca href=\"https://theworld.org/people/rachael-myrow\">The World\u003c/a>, WBUR's \u003ca href=\"https://www.wbur.org/search?q=Rachael%20Myrow\">\u003ci>Here & Now\u003c/i>\u003c/a> and the BBC. \u003c/i>She also guest hosts for KQED's \u003ci>\u003ca href=\"https://www.kqed.org/forum/tag/rachael-myrow\">Forum\u003c/a>\u003c/i>. Over the years, she's talked with Kamau Bell, David Byrne, Kamala Harris, Tony Kushner, Armistead Maupin, Van Dyke Parks, Arnold Schwarzenegger and Tommie Smith, among others.\r\n\r\nBefore all this, she hosted \u003cem>The California Report\u003c/em> for 7+ years, reporting on topics like \u003ca href=\"https://soundcloud.com/rmyrow/on-a-mission-to-reform-assisted-living\">assisted living facilities\u003c/a>, the \u003ca href=\"https://www.npr.org/sections/alltechconsidered/2014/12/01/367703789/amazon-unleashes-robot-army-to-send-your-holiday-packages-faster\">robot takeover\u003c/a> of Amazon, and \u003ca href=\"https://www.kqed.org/bayareabites/50822/in-search-of-the-chocolate-persimmon\" rel=\"noopener noreferrer\">chocolate persimmons\u003c/a>.\r\n\r\nAwards? Sure: Peabody, Edward R. Murrow, Regional Edward R. Murrow, RTNDA, Northern California RTNDA, SPJ Northern California Chapter, LA Press Club, Golden Mic. Prior to joining KQED, Rachael worked in Los Angeles at KPCC and Marketplace. She holds degrees in English and journalism from UC Berkeley (where she got her start in public radio on KALX-FM).\r\n\r\nOutside of the studio, you'll find Rachael hiking Bay Area trails and whipping up Instagram-ready meals in her kitchen.","avatar":"https://secure.gravatar.com/avatar/87bf8cb5874e045cdff430523a6d48b1?s=600&d=blank&r=g","twitter":"rachaelmyrow","facebook":null,"instagram":null,"linkedin":"https://www.linkedin.com/in/rachaelmyrow/","sites":[{"site":"arts","roles":["administrator"]},{"site":"news","roles":["edit_others_posts","editor"]},{"site":"futureofyou","roles":["editor"]},{"site":"bayareabites","roles":["editor"]},{"site":"stateofhealth","roles":["editor"]},{"site":"science","roles":["editor"]},{"site":"food","roles":["editor"]},{"site":"forum","roles":["editor"]}],"headData":{"title":"Rachael Myrow | KQED","description":"Senior Editor of KQED's Silicon Valley News Desk","ogImgSrc":"https://secure.gravatar.com/avatar/87bf8cb5874e045cdff430523a6d48b1?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/87bf8cb5874e045cdff430523a6d48b1?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/rachael-myrow"},"samharnett":{"type":"authors","id":"253","meta":{"index":"authors_1591205172","id":"253","found":true},"name":"Sam Harnett","firstName":"Sam","lastName":"Harnett","slug":"samharnett","email":"samharnett@gmail.com","display_author_email":false,"staff_mastheads":[],"title":"KQED Contributor","bio":"Sam Harnett covered tech and work at KQED. He is the co-creator of \u003cem>\u003ca href=\"http://www.theworldaccordingtosound.org\">The World According to Sound\u003c/a>,\u003c/em> a 90-second podcast that features different sounds and the stories behind them.\r\n\r\nBefore coming to KQED, Sam worked as an independent reporter who contributed regularly to \u003cem>The California Report, Marketplace,\u003c/em> \u003cem>The World \u003c/em>and NPR.","avatar":"https://secure.gravatar.com/avatar/2538b972ac02f2b9546c7a6c59a0f3d0?s=600&d=blank&r=g","twitter":"Samwharnett","facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"news","roles":["edit_others_posts","subscriber"]},{"site":"stateofhealth","roles":["author"]},{"site":"science","roles":["editor"]},{"site":"quest","roles":["subscriber"]}],"headData":{"title":"Sam Harnett | KQED","description":"KQED Contributor","ogImgSrc":"https://secure.gravatar.com/avatar/2538b972ac02f2b9546c7a6c59a0f3d0?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/2538b972ac02f2b9546c7a6c59a0f3d0?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/samharnett"},"markfiore":{"type":"authors","id":"3236","meta":{"index":"authors_1591205172","id":"3236","found":true},"name":"Mark Fiore","firstName":"Mark","lastName":"Fiore","slug":"markfiore","email":"mark@markfiore.com","display_author_email":false,"staff_mastheads":["news"],"title":"KQED News Cartoonist","bio":"\u003ca href=\"http://www.MarkFiore.com\">MarkFiore.com\u003c/a> | \u003ca href=\"https://twitter.com/markfiore\">Follow on Twitter\u003c/a> | \u003ca href=\"https://www.facebook.com/pages/Mark-Fiore-Animated-Political-Cartoons/94451707396?ref=bookmarks\">Facebook\u003c/a> | \u003ca href=\"mailto:mark@markfiore.com\">email\u003c/a>\r\n\r\nPulitzer Prize-winner, Mark Fiore, who the Wall Street Journal has called “the undisputed guru of the form,” creates animated political cartoons in San Francisco, where his work has been featured regularly on the San Francisco Chronicle’s web site, SFGate.com. His work has appeared on Newsweek.com, Slate.com, CBSNews.com, MotherJones.com, DailyKos.com and NPR’s web site. Fiore’s political animation has appeared on CNN, Frontline, Bill Moyers Journal, Salon.com and cable and broadcast outlets across the globe.\r\n\r\nBeginning his professional life by drawing traditional political cartoons for newspapers, Fiore’s work appeared in publications ranging from the Washington Post to the Los Angeles Times. In the late 1990s, he began to experiment with animating political cartoons and, after a short stint at the San Jose Mercury News as their staff cartoonist, Fiore devoted all his energies to animation.\r\nGrowing up in California, Fiore also spent a good portion of his life in the backwoods of Idaho. It was this combination that shaped him politically. Mark majored in political science at Colorado College, where, in a perfect send-off for a cartoonist, he received his diploma in 1991 as commencement speaker Dick Cheney smiled approvingly.\r\nMark Fiore was awarded the Pulitzer Prize for political cartooning in 2010, a Robert F. Kennedy Journalism Award in 2004 and has twice received an Online Journalism Award for commentary from the Online News Association (2002, 2008). Fiore has received two awards for his work in new media from the National Cartoonists Society (2001, 2002), and in 2006 received The James Madison Freedom of Information Award from The Society of Professional Journalists.","avatar":"https://secure.gravatar.com/avatar/fc4e2a612b15b67bad0c6f0e1db4ca9b?s=600&d=blank&r=g","twitter":"MarkFiore","facebook":null,"instagram":"https://www.instagram.com/markfiore/?hl=en","linkedin":null,"sites":[{"site":"arts","roles":["contributor"]},{"site":"news","roles":["editor"]},{"site":"futureofyou","roles":["editor"]},{"site":"science","roles":["editor"]}],"headData":{"title":"Mark Fiore | KQED","description":"KQED News Cartoonist","ogImgSrc":"https://secure.gravatar.com/avatar/fc4e2a612b15b67bad0c6f0e1db4ca9b?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/fc4e2a612b15b67bad0c6f0e1db4ca9b?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/markfiore"},"awoelfle":{"type":"authors","id":"11630","meta":{"index":"authors_1591205172","id":"11630","found":true},"name":"Alice Woelfle","firstName":"Alice","lastName":"Woelfle","slug":"awoelfle","email":"awoelfle@KQED.org","display_author_email":false,"staff_mastheads":[],"title":null,"bio":null,"avatar":"https://secure.gravatar.com/avatar/00e46668235dc71f4a7513cf5eb31df3?s=600&d=blank&r=g","twitter":null,"facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"news","roles":["subscriber"]}],"headData":{"title":"Alice Woelfle | KQED","description":null,"ogImgSrc":"https://secure.gravatar.com/avatar/00e46668235dc71f4a7513cf5eb31df3?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/00e46668235dc71f4a7513cf5eb31df3?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/awoelfle"}},"breakingNewsReducer":{},"campaignFinanceReducer":{},"firebase":{"requesting":{},"requested":{},"timestamps":{},"data":{},"ordered":{},"auth":{"isLoaded":false,"isEmpty":true},"authError":null,"profile":{"isLoaded":false,"isEmpty":true},"listeners":{"byId":{},"allIds":[]},"isInitializing":false,"errors":[]},"navBarReducer":{"navBarId":"news","fullView":true,"showPlayer":false},"navMenuReducer":{"menus":[{"key":"menu1","items":[{"name":"News","link":"/","type":"title"},{"name":"Politics","link":"/politics"},{"name":"Science","link":"/science"},{"name":"Education","link":"/educationnews"},{"name":"Housing","link":"/housing"},{"name":"Immigration","link":"/immigration"},{"name":"Criminal Justice","link":"/criminaljustice"},{"name":"Silicon Valley","link":"/siliconvalley"},{"name":"Forum","link":"/forum"},{"name":"The California Report","link":"/californiareport"}]},{"key":"menu2","items":[{"name":"Arts & Culture","link":"/arts","type":"title"},{"name":"Critics’ Picks","link":"/thedolist"},{"name":"Cultural Commentary","link":"/artscommentary"},{"name":"Food & Drink","link":"/food"},{"name":"Bay Area Hip-Hop","link":"/bayareahiphop"},{"name":"Rebel Girls","link":"/rebelgirls"},{"name":"Arts Video","link":"/artsvideos"}]},{"key":"menu3","items":[{"name":"Podcasts","link":"/podcasts","type":"title"},{"name":"Bay Curious","link":"/podcasts/baycurious"},{"name":"Rightnowish","link":"/podcasts/rightnowish"},{"name":"The Bay","link":"/podcasts/thebay"},{"name":"On Our Watch","link":"/podcasts/onourwatch"},{"name":"Mindshift","link":"/podcasts/mindshift"},{"name":"Consider This","link":"/podcasts/considerthis"},{"name":"Political Breakdown","link":"/podcasts/politicalbreakdown"}]},{"key":"menu4","items":[{"name":"Live Radio","link":"/radio","type":"title"},{"name":"TV","link":"/tv","type":"title"},{"name":"Events","link":"/events","type":"title"},{"name":"For Educators","link":"/education","type":"title"},{"name":"Support KQED","link":"/support","type":"title"},{"name":"About","link":"/about","type":"title"},{"name":"Help Center","link":"https://kqed-helpcenter.kqed.org/s","type":"title"}]}]},"pagesReducer":{},"postsReducer":{"stream_live":{"type":"live","id":"stream_live","audioUrl":"https://streams.kqed.org/kqedradio","title":"Live Stream","excerpt":"Live Stream information currently unavailable.","link":"/radio","featImg":"","label":{"name":"KQED Live","link":"/"}},"stream_kqedNewscast":{"type":"posts","id":"stream_kqedNewscast","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/newscast.mp3?_=1","title":"KQED Newscast","featImg":"","label":{"name":"88.5 FM","link":"/"}},"news_11818061":{"type":"posts","id":"news_11818061","meta":{"index":"posts_1591205157","site":"news","id":"11818061","score":null,"sort":[1589461203000]},"guestAuthors":[],"slug":"should-venture-capital-backed-silicon-valley-startups-get-federal-stimulus-money","title":"Should Venture Capital-Backed Startups Get Federal Stimulus Money?","publishDate":1589461203,"format":"audio","headTitle":"The California Report Magazine | KQED News","labelTerm":{},"content":"\u003cp>Like small companies all over the country, Silicon Valley startups have been letting tens of thousands of people go. But does that mean venture capital-backed startups should receive small-business loans paid for by taxpayers? It depends on who you ask.\u003c/p>\n\u003cp>A few weeks back, U.S. Rep. Anna Eshoo, D-Palo Alto, signed a \u003ca href=\"https://eshoo.house.gov/sites/eshoo.house.gov/files/documents/Congressional%20letter%20to%20SBA%20re%20affiliate%20rule%20-%203.27.20.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">letter with other Congress members\u003c/a> to the U.S. Small Business Administration arguing for VC-backed startups to be treated like other small businesses.\u003c/p>\n\u003cp>As the letter states: \"Because startups can sometimes have dozens of investors – including angel investors, venture capital firms, and the investing arms of corporations — even determining if any given startup is eligible could be prohibitively onerous for these companies to apply for SBA resources.\"\u003c/p>\n\u003cp>That letter went nowhere, to the apparent surprise of congresswoman Eshoo, whose father owned a small business back when she was growing up in Connecticut.\u003c/p>\n\u003cp>\"He was a jeweler and a watchmaker by trade. Business went up. It went down. It went sideways,\" Eshoo said. \"These startups are the definition of small, and we want them to succeed!\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>This week, Eshoo and Rep. Ro Khanna, D-Santa Clara, co-sponsored \u003ca href=\"https://www.congress.gov/bill/116th-congress/house-bill/6751/text?r=4&s=1\" target=\"_blank\" rel=\"noopener noreferrer\">legislation\u003c/a> that argues tech startups face the same kind of economic risk Eshoo’s dad did. New businesses commonly fail at the rate of 20 percent a year, according to the \u003ca href=\"https://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Bureau of Labor Statistics\u003c/a>. Silicon Valley startups fail at the rate of \u003ca href=\"https://indicators.kauffman.org\" target=\"_blank\" rel=\"noopener noreferrer\">80 percent\u003c/a> in 2019.\u003c/p>\n\u003cp>\"There are going to be winners and losers. The startup environment has always been like that,\" said Rachel Massaro, vice president and director of research of the nonprofit \u003ca href=\"https://jointventure.org/news-and-media/news-releases/1757-2019-silicon-valley-index-investment-pouring-in-to-megadeals-yet-fewer-early-stage-deals-for-startups-commercial-space-booming-challenges-mount\" target=\"_blank\" rel=\"noopener noreferrer\">Joint Venture Silicon Valley\u003c/a>.\u003c/p>\n\u003cp>Massaro reminds us that seed and early-stage VC funding in the region has been shrinking over the last decade, as has the popularity of filing for an IPO. What has been on the upswing: an “exit strategy” other businesses commonly can't enjoy.\u003c/p>\n\u003cp>Large companies in Silicon Valley like to buy startups, for the people and the technology. If you have a lot of cash, and \u003ca href=\"https://www.kqed.org/news/11816098/silicon-valley-on-a-hiring-spree-during-coronavirus-pandemic-but-for-how-long\" target=\"_blank\" rel=\"noopener noreferrer\">many tech giants do right now\u003c/a>, a recession is what investors call a “buying opportunity.”\u003c/p>\n\u003cp>\"They have more money. They have more ability to absorb the crisis and move past it. So they might very well pick out some of those small companies and integrate them into their own,\" Massaro said.\u003c/p>\n\u003cfigure id=\"attachment_11816236\" class=\"wp-caption aligncenter\" style=\"max-width: 2138px\">\u003cimg class=\"size-full wp-image-11816236\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM.png\" alt=\"In the market for a job in Silicon Valley. You might have better luck at a large company, compared to a start up, as this May 5, 2020 screen shot from Layoffs.fyi indicates.\" width=\"2138\" height=\"1136\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM.png 2138w, https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM-160x85.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM-800x425.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM-1020x542.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM-1920x1020.png 1920w\" sizes=\"(max-width: 2138px) 100vw, 2138px\">\u003cfigcaption class=\"wp-caption-text\">In the market for a job in Silicon Valley. You might have better luck at a large company, compared to a startup, as this May 5, 2020, screenshot from Layoffs.fyi indicates. \u003ccite>(Rachael Myrow/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Tell that to someone whose employer hasn’t been snapped up yet. More than 400 U.S. startups have laid off more than 47,000 employees since early March, according to a pandemic-era startup tracker called \u003ca href=\"http://layoffs.fyi/tracker\" target=\"_blank\" rel=\"noopener noreferrer\">Layoffs.fyi\u003c/a>.\u003c/p>\n\u003cp>In a recent press call, congressman Ro Khanna said the legislation can help Silicon Valley rebound faster and better than it would otherwise. \"The Valley has gone through this before. The biggest thing the federal government really can do is small business loans and continuing to make fundamental business investments in science and technology that could allow for that emergence.\"\u003c/p>\n\u003cp>The stimulus packages haven’t explicitly excluded Silicon Valley startups. But the rules that govern who gets to apply exclude companies more or less controlled by wealthy investors, like venture capitalists. Acknowledging concern about wealthy investors bellying up to the public trough, the Caring for Startup Employees Act of 2020 would bar startups from using money they received under the new waiver to pay their investors.\u003c/p>\n\u003cp>Tech trade groups like the \u003ca href=\"https://nvca.org\" target=\"_blank\" rel=\"noopener noreferrer\">National Venture Capital Association\u003c/a> have lobbied for federal consideration. But many banks and lenders are still reluctant to accept applications from VC-backed startups without changes like the ones proposed in the legislation Congresswoman Eshoo has co-sponsored.\u003c/p>\n\u003cp>Fritz Morris is CEO and co-founder of \u003ca href=\"https://www.brightmind.io/brightmind-blog/2020/01/02/brightmind-and-your-career\" target=\"_blank\" rel=\"noopener noreferrer\">Brightmind Labs\u003c/a>, an online education platform focused on adults looking to beef up their career skills. \"The idea is that there are a couple billion people in the world without access to good quality education, career skills training and mentorship,\" he said. [aside tag=\"coronavirus\" label=\"More Related Stories\"]\u003c/p>\n\u003cp>Morris has backing from angel investors and has not applied for a PPP loan, but he says he's sympathetic to the needs of other startups that feel the need to apply to stay afloat. \"I know, though, that there are others who are really struggling. Especially at the early seed stage, or the founding stage, it can be quite scary to start a company in Silicon Valley.\"\u003c/p>\n\u003cp>\"Having an extra $25-50,000, as small as that might seem to some people, would actually be pretty helpful when we’re going through some of these pilots,\" Morris said.\u003c/p>\n\u003cp>\"But I do have sort of an ethical position on that where I feel like if the primary intention is to help people who really are struggling, then I do think probably the majority of those folks are outside of Silicon Valley. The mom-and-pop founders and the retailers and the folks who just otherwise would lose their business or lose their income completely,\" Morris said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>He added that it hasn't escaped him how a number of well-capitalized companies and schools like \u003ca href=\"https://www.cnn.com/2020/04/20/business/shake-shack-ppp-loan-sba/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">Shake Shack\u003c/a> and \u003ca href=\"https://www.latimes.com/california/story/2020-04-30/coronavirus-private-schools-ppp-loans\" target=\"_blank\" rel=\"noopener noreferrer\">Stanford\u003c/a> have been embarrassed by negative press into giving paycheck protection loan money back to the federal government.\u003c/p>\n\n","blocks":[],"excerpt":"Should venture-capital-backed startups receive small-business loans paid for by taxpayers? It depends on who you ask.","status":"publish","parent":0,"modified":1590601636,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":21,"wordCount":909},"headData":{"title":"Should Venture Capital-Backed Startups Get Federal Stimulus Money? | KQED","description":"Should venture-capital-backed startups receive small-business loans paid for by taxpayers? It depends on who you ask.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Should Venture Capital-Backed Startups Get Federal Stimulus Money?","datePublished":"2020-05-14T13:00:03.000Z","dateModified":"2020-05-27T17:47:16.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11818061 https://ww2.kqed.org/news/?p=11818061","disqusUrl":"https://ww2.kqed.org/news/2020/05/14/should-venture-capital-backed-silicon-valley-startups-get-federal-stimulus-money/","disqusTitle":"Should Venture Capital-Backed Startups Get Federal Stimulus Money?","source":"Coronavirus","sourceUrl":"https://www.kqed.org/coronavirus","audioUrl":"https://traffic.omny.fm/d/clips/0af137ef-751e-4b19-a055-aaef00d2d578/ffca7e9f-6831-41c5-bcaf-aaef00f5a073/34a62c78-8850-4074-a52d-abbb01259e9b/audio.mp3","path":"/news/11818061/should-venture-capital-backed-silicon-valley-startups-get-federal-stimulus-money","audioDuration":185000,"audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Like small companies all over the country, Silicon Valley startups have been letting tens of thousands of people go. But does that mean venture capital-backed startups should receive small-business loans paid for by taxpayers? It depends on who you ask.\u003c/p>\n\u003cp>A few weeks back, U.S. Rep. Anna Eshoo, D-Palo Alto, signed a \u003ca href=\"https://eshoo.house.gov/sites/eshoo.house.gov/files/documents/Congressional%20letter%20to%20SBA%20re%20affiliate%20rule%20-%203.27.20.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">letter with other Congress members\u003c/a> to the U.S. Small Business Administration arguing for VC-backed startups to be treated like other small businesses.\u003c/p>\n\u003cp>As the letter states: \"Because startups can sometimes have dozens of investors – including angel investors, venture capital firms, and the investing arms of corporations — even determining if any given startup is eligible could be prohibitively onerous for these companies to apply for SBA resources.\"\u003c/p>\n\u003cp>That letter went nowhere, to the apparent surprise of congresswoman Eshoo, whose father owned a small business back when she was growing up in Connecticut.\u003c/p>\n\u003cp>\"He was a jeweler and a watchmaker by trade. Business went up. It went down. It went sideways,\" Eshoo said. \"These startups are the definition of small, and we want them to succeed!\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>This week, Eshoo and Rep. Ro Khanna, D-Santa Clara, co-sponsored \u003ca href=\"https://www.congress.gov/bill/116th-congress/house-bill/6751/text?r=4&s=1\" target=\"_blank\" rel=\"noopener noreferrer\">legislation\u003c/a> that argues tech startups face the same kind of economic risk Eshoo’s dad did. New businesses commonly fail at the rate of 20 percent a year, according to the \u003ca href=\"https://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Bureau of Labor Statistics\u003c/a>. Silicon Valley startups fail at the rate of \u003ca href=\"https://indicators.kauffman.org\" target=\"_blank\" rel=\"noopener noreferrer\">80 percent\u003c/a> in 2019.\u003c/p>\n\u003cp>\"There are going to be winners and losers. The startup environment has always been like that,\" said Rachel Massaro, vice president and director of research of the nonprofit \u003ca href=\"https://jointventure.org/news-and-media/news-releases/1757-2019-silicon-valley-index-investment-pouring-in-to-megadeals-yet-fewer-early-stage-deals-for-startups-commercial-space-booming-challenges-mount\" target=\"_blank\" rel=\"noopener noreferrer\">Joint Venture Silicon Valley\u003c/a>.\u003c/p>\n\u003cp>Massaro reminds us that seed and early-stage VC funding in the region has been shrinking over the last decade, as has the popularity of filing for an IPO. What has been on the upswing: an “exit strategy” other businesses commonly can't enjoy.\u003c/p>\n\u003cp>Large companies in Silicon Valley like to buy startups, for the people and the technology. If you have a lot of cash, and \u003ca href=\"https://www.kqed.org/news/11816098/silicon-valley-on-a-hiring-spree-during-coronavirus-pandemic-but-for-how-long\" target=\"_blank\" rel=\"noopener noreferrer\">many tech giants do right now\u003c/a>, a recession is what investors call a “buying opportunity.”\u003c/p>\n\u003cp>\"They have more money. They have more ability to absorb the crisis and move past it. So they might very well pick out some of those small companies and integrate them into their own,\" Massaro said.\u003c/p>\n\u003cfigure id=\"attachment_11816236\" class=\"wp-caption aligncenter\" style=\"max-width: 2138px\">\u003cimg class=\"size-full wp-image-11816236\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM.png\" alt=\"In the market for a job in Silicon Valley. You might have better luck at a large company, compared to a start up, as this May 5, 2020 screen shot from Layoffs.fyi indicates.\" width=\"2138\" height=\"1136\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM.png 2138w, https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM-160x85.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM-800x425.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM-1020x542.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2020/05/Screen-Shot-2020-05-05-at-8.23.08-AM-1920x1020.png 1920w\" sizes=\"(max-width: 2138px) 100vw, 2138px\">\u003cfigcaption class=\"wp-caption-text\">In the market for a job in Silicon Valley. You might have better luck at a large company, compared to a startup, as this May 5, 2020, screenshot from Layoffs.fyi indicates. \u003ccite>(Rachael Myrow/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Tell that to someone whose employer hasn’t been snapped up yet. More than 400 U.S. startups have laid off more than 47,000 employees since early March, according to a pandemic-era startup tracker called \u003ca href=\"http://layoffs.fyi/tracker\" target=\"_blank\" rel=\"noopener noreferrer\">Layoffs.fyi\u003c/a>.\u003c/p>\n\u003cp>In a recent press call, congressman Ro Khanna said the legislation can help Silicon Valley rebound faster and better than it would otherwise. \"The Valley has gone through this before. The biggest thing the federal government really can do is small business loans and continuing to make fundamental business investments in science and technology that could allow for that emergence.\"\u003c/p>\n\u003cp>The stimulus packages haven’t explicitly excluded Silicon Valley startups. But the rules that govern who gets to apply exclude companies more or less controlled by wealthy investors, like venture capitalists. Acknowledging concern about wealthy investors bellying up to the public trough, the Caring for Startup Employees Act of 2020 would bar startups from using money they received under the new waiver to pay their investors.\u003c/p>\n\u003cp>Tech trade groups like the \u003ca href=\"https://nvca.org\" target=\"_blank\" rel=\"noopener noreferrer\">National Venture Capital Association\u003c/a> have lobbied for federal consideration. But many banks and lenders are still reluctant to accept applications from VC-backed startups without changes like the ones proposed in the legislation Congresswoman Eshoo has co-sponsored.\u003c/p>\n\u003cp>Fritz Morris is CEO and co-founder of \u003ca href=\"https://www.brightmind.io/brightmind-blog/2020/01/02/brightmind-and-your-career\" target=\"_blank\" rel=\"noopener noreferrer\">Brightmind Labs\u003c/a>, an online education platform focused on adults looking to beef up their career skills. \"The idea is that there are a couple billion people in the world without access to good quality education, career skills training and mentorship,\" he said. \u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"tag":"coronavirus","label":"More Related Stories "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Morris has backing from angel investors and has not applied for a PPP loan, but he says he's sympathetic to the needs of other startups that feel the need to apply to stay afloat. \"I know, though, that there are others who are really struggling. Especially at the early seed stage, or the founding stage, it can be quite scary to start a company in Silicon Valley.\"\u003c/p>\n\u003cp>\"Having an extra $25-50,000, as small as that might seem to some people, would actually be pretty helpful when we’re going through some of these pilots,\" Morris said.\u003c/p>\n\u003cp>\"But I do have sort of an ethical position on that where I feel like if the primary intention is to help people who really are struggling, then I do think probably the majority of those folks are outside of Silicon Valley. The mom-and-pop founders and the retailers and the folks who just otherwise would lose their business or lose their income completely,\" Morris said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>He added that it hasn't escaped him how a number of well-capitalized companies and schools like \u003ca href=\"https://www.cnn.com/2020/04/20/business/shake-shack-ppp-loan-sba/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">Shake Shack\u003c/a> and \u003ca href=\"https://www.latimes.com/california/story/2020-04-30/coronavirus-private-schools-ppp-loans\" target=\"_blank\" rel=\"noopener noreferrer\">Stanford\u003c/a> have been embarrassed by negative press into giving paycheck protection loan money back to the federal government.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11818061/should-venture-capital-backed-silicon-valley-startups-get-federal-stimulus-money","authors":["251"],"programs":["news_72","news_26731"],"categories":["news_1758","news_8","news_248"],"tags":["news_21275","news_27350","news_25057","news_2011","news_6238","news_353","news_4849","news_6607"],"featImg":"news_11818231","label":"source_news_11818061"},"news_11790332":{"type":"posts","id":"news_11790332","meta":{"index":"posts_1591205157","site":"news","id":"11790332","score":null,"sort":[1576181695000]},"guestAuthors":[],"slug":"can-new-tech-platforms-reduce-bias-in-the-workplace-these-startups-think-so","title":"Can New Tech Platforms Reduce Bias in the Workplace? These Startups Are Betting on It","publishDate":1576181695,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>Can an app help make your workplace more equitable?\u003c/p>\n\u003cp>That was the question that a scrappy group of tech startups, jockeying for more than $100,000 in prize money, sought to tackle last week at the People Ops Tech Pitch Competition in Berkeley, an annual event exploring technological solutions to societal issues like bias and discrimination.[aside tag='bias' label='Recent Coverage of Bias']\u003c/p>\n\u003cp>“Tech is not a panacea. We've seen tech used for awful things,” warned Freada Kapor Klein, a \u003ca href=\"https://www.kaporcapital.com/who-we-are/freada-kapor-klein/\" target=\"_blank\" rel=\"noopener noreferrer\">founding partner\u003c/a> of Kapor Capital, the venture capital firm behind the event. “We've seen tech used in the service of bias and profiling and stereotyping. Tech is a set of tools that can be used for good or for evil or for mixed purposes.\"\u003c/p>\n\u003cp>The event comes amid growing mistrust of the tech industry in recent years, as huge firms like Facebook and Google have faced public backlash for \u003ca href=\"https://www.techrepublic.com/article/facebook-data-pri%20acy-scandal-a-cheat-sheet/\" target=\"_blank\" rel=\"noopener noreferrer\">compromising the privacy of their users\u003c/a>, and governments worldwide have witnessed how popular platforms can be used nefariously to threaten democratic institutions.\u003c/p>\n\u003cp>But Kapor Klein emphasized that there are also plenty of inspiring innovators out there using technology to address inequality, particularly in the workplace, where women and people of color often find themselves at a distinct disadvantage.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“I want everybody out there to be aware of all these great tools that can make the workplace more welcoming to everybody,” she said.\u003c/p>\n\u003cp>To that end, the 10 finalist startups, winnowed from a pool of nearly 200, each had five minutes to present their tech-based proposals for reducing workplace bias, as a small group of judges and a larger audience of investors and fellow entrepreneurs listened intently.\u003c/p>\n\u003cp>One company, called Tilt, made the case that its platform, which manages all aspects of family leave, would help improve retention of women. Another startup, called Skillist, described itself as a job application platform that aims to steer employers away from resumes by showcasing what candidates are actually capable of accomplishing on the job.\u003c/p>\n\u003cp>Teresa Hodge, CEO of \u003ca href=\"https://r3score.com/\">R3 Score,\u003c/a> a Baltimore-based company, pitched software to help employers more fairly consider candidates with criminal histories\u003cspan style=\"font-weight: 400\">.\u003c/span>\u003c/p>\n\u003cp>The platform emphasizes attributes like education level, employment and community participation, and weighs them against the seriousness of the applicant's criminal record. It then calculates a score similar to a credit score.\u003c/p>\n\u003cp>“Current tools like criminal background checks pretty much lock individuals out,” Hodge said. “One in three [adult] Americans have an arrest or conviction record. It’s kind of impossible to continue to overlook a third of our population.”\u003c/p>\n\u003cp>Hodge also noted that, as a black woman in her 50s, she has encountered plenty of bias, even in her effort to fight it.\u003c/p>\n\u003cp>“If I was a white man, to be honest, with this tool, I would have been funded,” she said. “I've had a couple of potential investors say, ‘But who came up with this idea?’ And in that moment I realized, ‘Oh, you don't think I could have come up with this.’ ”\u003c/p>\n\u003cp>The judges, however, had no such reservations; Hodge won the competition's first prize and audience choice award.\u003c/p>\n\u003cp>One of the three judges, Sargun Kaur, who runs an incubator for Google, explained said that the tool had the potential to help employers reduce bias in the employment process and significantly expand certain hiring pools.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“They’ve come up with a very simple solution that's going to impact a number of lives,” she said. “[Employers] have been simply rejecting individuals because of a binary background check. Now they have more information.”\u003c/p>\n\n","blocks":[],"excerpt":"The annual philanthropic competition offers prize money to those tech startups addressing bias in the workplace.","status":"publish","parent":0,"modified":1576522792,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":18,"wordCount":619},"headData":{"title":"Can New Tech Platforms Reduce Bias in the Workplace? These Startups Are Betting on It | KQED","description":"The annual philanthropic competition offers prize money to those tech startups addressing bias in the workplace.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Can New Tech Platforms Reduce Bias in the Workplace? These Startups Are Betting on It","datePublished":"2019-12-12T20:14:55.000Z","dateModified":"2019-12-16T18:59:52.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11790332 https://ww2.kqed.org/news/?p=11790332","disqusUrl":"https://ww2.kqed.org/news/2019/12/12/can-new-tech-platforms-reduce-bias-in-the-workplace-these-startups-think-so/","disqusTitle":"Can New Tech Platforms Reduce Bias in the Workplace? These Startups Are Betting on It","audioUrl":"https://www.kqed.org/.stream/anon/radio//2019/12/techbias.mp3","audioTrackLength":132,"path":"/news/11790332/can-new-tech-platforms-reduce-bias-in-the-workplace-these-startups-think-so","audioDuration":132000,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Can an app help make your workplace more equitable?\u003c/p>\n\u003cp>That was the question that a scrappy group of tech startups, jockeying for more than $100,000 in prize money, sought to tackle last week at the People Ops Tech Pitch Competition in Berkeley, an annual event exploring technological solutions to societal issues like bias and discrimination.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"tag":"bias","label":"Recent Coverage of Bias "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“Tech is not a panacea. We've seen tech used for awful things,” warned Freada Kapor Klein, a \u003ca href=\"https://www.kaporcapital.com/who-we-are/freada-kapor-klein/\" target=\"_blank\" rel=\"noopener noreferrer\">founding partner\u003c/a> of Kapor Capital, the venture capital firm behind the event. “We've seen tech used in the service of bias and profiling and stereotyping. Tech is a set of tools that can be used for good or for evil or for mixed purposes.\"\u003c/p>\n\u003cp>The event comes amid growing mistrust of the tech industry in recent years, as huge firms like Facebook and Google have faced public backlash for \u003ca href=\"https://www.techrepublic.com/article/facebook-data-pri%20acy-scandal-a-cheat-sheet/\" target=\"_blank\" rel=\"noopener noreferrer\">compromising the privacy of their users\u003c/a>, and governments worldwide have witnessed how popular platforms can be used nefariously to threaten democratic institutions.\u003c/p>\n\u003cp>But Kapor Klein emphasized that there are also plenty of inspiring innovators out there using technology to address inequality, particularly in the workplace, where women and people of color often find themselves at a distinct disadvantage.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“I want everybody out there to be aware of all these great tools that can make the workplace more welcoming to everybody,” she said.\u003c/p>\n\u003cp>To that end, the 10 finalist startups, winnowed from a pool of nearly 200, each had five minutes to present their tech-based proposals for reducing workplace bias, as a small group of judges and a larger audience of investors and fellow entrepreneurs listened intently.\u003c/p>\n\u003cp>One company, called Tilt, made the case that its platform, which manages all aspects of family leave, would help improve retention of women. Another startup, called Skillist, described itself as a job application platform that aims to steer employers away from resumes by showcasing what candidates are actually capable of accomplishing on the job.\u003c/p>\n\u003cp>Teresa Hodge, CEO of \u003ca href=\"https://r3score.com/\">R3 Score,\u003c/a> a Baltimore-based company, pitched software to help employers more fairly consider candidates with criminal histories\u003cspan style=\"font-weight: 400\">.\u003c/span>\u003c/p>\n\u003cp>The platform emphasizes attributes like education level, employment and community participation, and weighs them against the seriousness of the applicant's criminal record. It then calculates a score similar to a credit score.\u003c/p>\n\u003cp>“Current tools like criminal background checks pretty much lock individuals out,” Hodge said. “One in three [adult] Americans have an arrest or conviction record. It’s kind of impossible to continue to overlook a third of our population.”\u003c/p>\n\u003cp>Hodge also noted that, as a black woman in her 50s, she has encountered plenty of bias, even in her effort to fight it.\u003c/p>\n\u003cp>“If I was a white man, to be honest, with this tool, I would have been funded,” she said. “I've had a couple of potential investors say, ‘But who came up with this idea?’ And in that moment I realized, ‘Oh, you don't think I could have come up with this.’ ”\u003c/p>\n\u003cp>The judges, however, had no such reservations; Hodge won the competition's first prize and audience choice award.\u003c/p>\n\u003cp>One of the three judges, Sargun Kaur, who runs an incubator for Google, explained said that the tool had the potential to help employers reduce bias in the employment process and significantly expand certain hiring pools.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“They’ve come up with a very simple solution that's going to impact a number of lives,” she said. “[Employers] have been simply rejecting individuals because of a binary background check. Now they have more information.”\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11790332/can-new-tech-platforms-reduce-bias-in-the-workplace-these-startups-think-so","authors":["11630"],"categories":["news_8","news_248"],"tags":["news_17687","news_20109","news_25944","news_26777","news_353","news_6607"],"featImg":"news_11790340","label":"news"},"news_11738951":{"type":"posts","id":"news_11738951","meta":{"index":"posts_1591205157","site":"news","id":"11738951","score":null,"sort":[1554987613000]},"guestAuthors":[],"slug":"something-in-the-silicon-valley-air-why-multinational-firms-send-their-entrepreneurs-here","title":"Something in the Silicon Valley Air: Why Multinational Firms Send Their Entrepreneurs Here","publishDate":1554987613,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>\"The first impression here, I’m thinking, 'OMG, I’m really in Silicon Valley.” That is what you see on the TVs!'\" gushed Jasmine Meng, 28, a materials engineer from Shanghai who is spending the first half of 2019 trying to launch a startup in Sunnyvale.\u003c/p>\n\u003cp>Fortunately for Meng, she has got the full backing of a giant German multinational, but more on that later. Let's talk first about Meng's winning startup idea.\u003c/p>\n\u003cp>In China’s big cities, horrendous air pollution is a regular thing, not just the occasional outgrowth of wildfires like those seen last fall in California. Air pollution is a top reason why you see so many Chinese people wearing face masks.\u003c/p>\n\u003cp>If you haven't visited China recently, you can watch any number of news reports depicting the country's struggle with air pollution:\u003cbr>\n[youtube https://www.youtube.com/watch?v=xaLuyS7yrIw]\u003c/p>\n\u003cp>\"I am the potential customer of our products,\" Meng said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>And that problem led Meng to come up with this pitch: a better face mask, one that is better fitting, better functioning, and frankly, less ugly. \"It can protect your health and in the meantime, not compromise your style,\" she said.\u003c/p>\n\u003cp>She delivered this pitch to her employer, \u003ca href=\"https://www.mann-hummel.com/en/\" target=\"_blank\" rel=\"noopener noreferrer\">Mann+Hummel\u003c/a>, which makes most of its billions annually from industrial air filter manufacturing; conventional car filters, to be specific.\u003c/p>\n\u003cp>Headquartered near Stuttgart, Germany, Mann+Hummel has been looking for alternative directions to pivot into, given that the conventional car market is changing dramatically, disrupted in large part by Silicon Valley.\u003c/p>\n\u003cp>[youtube https://www.youtube.com/watch?v=R17ZNvGofe4]\u003c/p>\n\u003cp>Germany has long been famous for its high quality engineering and manufacturing. But the future of both is all about software: automation and artificial intelligence. You want to be a player in that future? You’re going to have people working here, in the San Francisco Bay Area.\u003c/p>\n\u003cp>And, if Mann+Hummel is to survive, it needs new blockbuster products, too. So a few years ago, the company launched a startup contest called \u003ca href=\"https://blog.mann-hummel.com/en/part-innovative-start-scene/\" target=\"_blank\" rel=\"noopener noreferrer\">InCube\u003c/a>. The winning idea gets you six months at a startup incubator, \u003ca href=\"https://www.plugandplaytechcenter.com\" target=\"_blank\" rel=\"noopener noreferrer\">Plug and Play Tech Center\u003c/a>, in Sunnyvale.\u003c/p>\n\u003cp>That's how Meng has come to be Chief Product Officer of \u003ca href=\"https://www.instagram.com/purar_us/\" target=\"_blank\" rel=\"noopener noreferrer\">Purar\u003c/a>, “fighting smog with fashion” for a little more than three months now.\u003c/p>\n\u003cp>Meng and her team members from Germany, England and Mexico are halfway through their time at \u003ca href=\"https://www.plugandplaytechcenter.com\" target=\"_blank\" rel=\"noopener noreferrer\">Plug and Play Tech Center\u003c/a>, a startup accelerator that partners with large companies like Mann+Hummel to — \u003ca href=\"https://www.kqed.org/news/11732182/is-the-future-of-automotive-engineering-in-silicon-valley-ask-this-german-auto-giant\" target=\"_blank\" rel=\"noopener noreferrer\">among other things\u003c/a> — launch startups on a test run basis.\u003c/p>\n\u003cp>Purar has six months to develop Meng’s concept, identify and ink partnerships, and ultimately, make the case to headquarters that its fashionable face masks should become a Mann+Hummel department, subsidiary or spinoff.\u003c/p>\n\u003cp>There have been three InCube cohorts so far, all connected to filtration: indoor, water and now wearables. The first team, focused on building filtration, landed a partnership with \u003ca href=\"http://www.shimizu-industry.co.jp\" target=\"_blank\" rel=\"noopener noreferrer\">Shimizu Industry\u003c/a> of Japan and has since become a spinoff company.\u003c/p>\n\u003cp>\"Fail fast, is what they say,\" said Candace Widdoes, Plug and Play’s Chief Operating Officer. Is six months enough time to get anything started? \"Oh absolutely. We do three-month cohorts. Either you do something in three months or not! Six months is plenty of time.\"\u003c/p>\n\u003cfigure id=\"attachment_11739123\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11739123\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-800x630.jpg\" alt=\"The Purar team is surrounded, of course, by the requisite walls of sticky notes. But team members say the atmosphere at Plug and Play Tech Center is invigorating and optimistic. The entrepreneurs and investors they meet here are as keen to talk about collaboration as they are competition.\" width=\"800\" height=\"630\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-800x630.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-160x126.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-1020x803.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-1200x944.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The Purar team is surrounded, of course, by the requisite walls of sticky notes. But team members say the atmosphere at Plug and Play Tech Center is invigorating and optimistic. The entrepreneurs and investors they meet here are as keen to talk about collaboration as they are competition. \u003ccite>(Rachael Myrow/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\"The fact that we operate outside rigid and fixed corporate structures, brings many advantages to it,\" said Purar’s Chief Marketing Officer, Isabell Kloess.\u003c/p>\n\u003cp>How is Silicon Valley's business culture different from that in Germany? For one thing, development projects often take three years, not three months.\u003c/p>\n\u003cp>Here in Silicon Valley, \"everything's happening fast. So we have to be fast. Everybody is so curious. Everybody is really smart. There's more emphasis on the sort of cooperative model where it's like maybe there's a way we can both thrive by working together on the same project,\" said Kloess.\u003c/p>\n\u003cp>In contrast, back in Germany, \"a lot of things are standardized and planned out. One of my projects within the company prior [to Purar] was actually to standardize all of (the) processes worldwide,\" she added.\u003c/p>\n\u003cfigure id=\"attachment_11739124\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11739124\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/04/Intertextile20expo-800x552.jpeg\" alt=\"The Purar team recently visited the Intertextile expo in Shanghai, looking for potential suppliers.\" width=\"800\" height=\"552\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/04/Intertextile20expo-800x552.jpeg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/Intertextile20expo-160x110.jpeg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/Intertextile20expo.jpeg 1020w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The Purar team recently visited the Intertextile expo in Shanghai, looking for potential suppliers. \u003ccite>(Photo: Courtesy of Purar)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Kloess doesn’t begrudge the steady, slow methodology of her employer back home. It’s typical, and often necessary, for a so-called “legacy company to operate.\"\u003c/p>\n\u003cp>But that mindset often proves resistant to new ideas, killing them off — and driving out the people who generate them. Sending those people to Silicon Valley gives them a genuine chance to try something that ultimately rebounds to the benefit of the mother ship back home.\u003c/p>\n\u003cp>\"It makes the corporate employee more entrepreneurial,\" Widdoes said. \"Even if they go back to Mann+Hummel, they bring this incredible experience back with them. No matter what, it's a win-win.\"\u003c/p>\n\u003cp>For all the talk about Purar being independent, the team’s pitch includes the backing and experience Mann+Hummel brings to the table.\u003c/p>\n\u003cp>So what happens if Purar fails?\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"Then the next team starts,\" Kloess said.\u003c/p>\n\n","blocks":[],"excerpt":"A Silicon Valley startup accelerator hosts employees from companies around the globe to — what else — launch startups on a test run basis.","status":"publish","parent":0,"modified":1589058899,"stats":{"hasAudio":false,"hasVideo":true,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":28,"wordCount":927},"headData":{"title":"Something in the Silicon Valley Air: Why Multinational Firms Send Their Entrepreneurs Here | KQED","description":"A Silicon Valley startup accelerator hosts employees from companies around the globe to — what else — launch startups on a test run basis.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Something in the Silicon Valley Air: Why Multinational Firms Send Their Entrepreneurs Here","datePublished":"2019-04-11T13:00:13.000Z","dateModified":"2020-05-09T21:14:59.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11738951 https://ww2.kqed.org/news/?p=11738951","disqusUrl":"https://ww2.kqed.org/news/2019/04/11/something-in-the-silicon-valley-air-why-multinational-firms-send-their-entrepreneurs-here/","disqusTitle":"Something in the Silicon Valley Air: Why Multinational Firms Send Their Entrepreneurs Here","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/2019/04/MyrowGermanyInSiliconValley.mp3","audioTrackLength":257,"path":"/news/11738951/something-in-the-silicon-valley-air-why-multinational-firms-send-their-entrepreneurs-here","audioDuration":257000,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\"The first impression here, I’m thinking, 'OMG, I’m really in Silicon Valley.” That is what you see on the TVs!'\" gushed Jasmine Meng, 28, a materials engineer from Shanghai who is spending the first half of 2019 trying to launch a startup in Sunnyvale.\u003c/p>\n\u003cp>Fortunately for Meng, she has got the full backing of a giant German multinational, but more on that later. Let's talk first about Meng's winning startup idea.\u003c/p>\n\u003cp>In China’s big cities, horrendous air pollution is a regular thing, not just the occasional outgrowth of wildfires like those seen last fall in California. Air pollution is a top reason why you see so many Chinese people wearing face masks.\u003c/p>\n\u003cp>If you haven't visited China recently, you can watch any number of news reports depicting the country's struggle with air pollution:\u003cbr>\n\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/xaLuyS7yrIw'\n title='//www.youtube.com/embed/xaLuyS7yrIw'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003c/p>\n\u003cp>\"I am the potential customer of our products,\" Meng said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>And that problem led Meng to come up with this pitch: a better face mask, one that is better fitting, better functioning, and frankly, less ugly. \"It can protect your health and in the meantime, not compromise your style,\" she said.\u003c/p>\n\u003cp>She delivered this pitch to her employer, \u003ca href=\"https://www.mann-hummel.com/en/\" target=\"_blank\" rel=\"noopener noreferrer\">Mann+Hummel\u003c/a>, which makes most of its billions annually from industrial air filter manufacturing; conventional car filters, to be specific.\u003c/p>\n\u003cp>Headquartered near Stuttgart, Germany, Mann+Hummel has been looking for alternative directions to pivot into, given that the conventional car market is changing dramatically, disrupted in large part by Silicon Valley.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/R17ZNvGofe4'\n title='//www.youtube.com/embed/R17ZNvGofe4'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Germany has long been famous for its high quality engineering and manufacturing. But the future of both is all about software: automation and artificial intelligence. You want to be a player in that future? You’re going to have people working here, in the San Francisco Bay Area.\u003c/p>\n\u003cp>And, if Mann+Hummel is to survive, it needs new blockbuster products, too. So a few years ago, the company launched a startup contest called \u003ca href=\"https://blog.mann-hummel.com/en/part-innovative-start-scene/\" target=\"_blank\" rel=\"noopener noreferrer\">InCube\u003c/a>. The winning idea gets you six months at a startup incubator, \u003ca href=\"https://www.plugandplaytechcenter.com\" target=\"_blank\" rel=\"noopener noreferrer\">Plug and Play Tech Center\u003c/a>, in Sunnyvale.\u003c/p>\n\u003cp>That's how Meng has come to be Chief Product Officer of \u003ca href=\"https://www.instagram.com/purar_us/\" target=\"_blank\" rel=\"noopener noreferrer\">Purar\u003c/a>, “fighting smog with fashion” for a little more than three months now.\u003c/p>\n\u003cp>Meng and her team members from Germany, England and Mexico are halfway through their time at \u003ca href=\"https://www.plugandplaytechcenter.com\" target=\"_blank\" rel=\"noopener noreferrer\">Plug and Play Tech Center\u003c/a>, a startup accelerator that partners with large companies like Mann+Hummel to — \u003ca href=\"https://www.kqed.org/news/11732182/is-the-future-of-automotive-engineering-in-silicon-valley-ask-this-german-auto-giant\" target=\"_blank\" rel=\"noopener noreferrer\">among other things\u003c/a> — launch startups on a test run basis.\u003c/p>\n\u003cp>Purar has six months to develop Meng’s concept, identify and ink partnerships, and ultimately, make the case to headquarters that its fashionable face masks should become a Mann+Hummel department, subsidiary or spinoff.\u003c/p>\n\u003cp>There have been three InCube cohorts so far, all connected to filtration: indoor, water and now wearables. The first team, focused on building filtration, landed a partnership with \u003ca href=\"http://www.shimizu-industry.co.jp\" target=\"_blank\" rel=\"noopener noreferrer\">Shimizu Industry\u003c/a> of Japan and has since become a spinoff company.\u003c/p>\n\u003cp>\"Fail fast, is what they say,\" said Candace Widdoes, Plug and Play’s Chief Operating Officer. Is six months enough time to get anything started? \"Oh absolutely. We do three-month cohorts. Either you do something in three months or not! Six months is plenty of time.\"\u003c/p>\n\u003cfigure id=\"attachment_11739123\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11739123\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-800x630.jpg\" alt=\"The Purar team is surrounded, of course, by the requisite walls of sticky notes. But team members say the atmosphere at Plug and Play Tech Center is invigorating and optimistic. The entrepreneurs and investors they meet here are as keen to talk about collaboration as they are competition.\" width=\"800\" height=\"630\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-800x630.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-160x126.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-1020x803.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut-1200x944.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/RS36470_Photo-Mar-08-8-37-31-AM-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The Purar team is surrounded, of course, by the requisite walls of sticky notes. But team members say the atmosphere at Plug and Play Tech Center is invigorating and optimistic. The entrepreneurs and investors they meet here are as keen to talk about collaboration as they are competition. \u003ccite>(Rachael Myrow/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\"The fact that we operate outside rigid and fixed corporate structures, brings many advantages to it,\" said Purar’s Chief Marketing Officer, Isabell Kloess.\u003c/p>\n\u003cp>How is Silicon Valley's business culture different from that in Germany? For one thing, development projects often take three years, not three months.\u003c/p>\n\u003cp>Here in Silicon Valley, \"everything's happening fast. So we have to be fast. Everybody is so curious. Everybody is really smart. There's more emphasis on the sort of cooperative model where it's like maybe there's a way we can both thrive by working together on the same project,\" said Kloess.\u003c/p>\n\u003cp>In contrast, back in Germany, \"a lot of things are standardized and planned out. One of my projects within the company prior [to Purar] was actually to standardize all of (the) processes worldwide,\" she added.\u003c/p>\n\u003cfigure id=\"attachment_11739124\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11739124\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/04/Intertextile20expo-800x552.jpeg\" alt=\"The Purar team recently visited the Intertextile expo in Shanghai, looking for potential suppliers.\" width=\"800\" height=\"552\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/04/Intertextile20expo-800x552.jpeg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/Intertextile20expo-160x110.jpeg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/04/Intertextile20expo.jpeg 1020w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The Purar team recently visited the Intertextile expo in Shanghai, looking for potential suppliers. \u003ccite>(Photo: Courtesy of Purar)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Kloess doesn’t begrudge the steady, slow methodology of her employer back home. It’s typical, and often necessary, for a so-called “legacy company to operate.\"\u003c/p>\n\u003cp>But that mindset often proves resistant to new ideas, killing them off — and driving out the people who generate them. Sending those people to Silicon Valley gives them a genuine chance to try something that ultimately rebounds to the benefit of the mother ship back home.\u003c/p>\n\u003cp>\"It makes the corporate employee more entrepreneurial,\" Widdoes said. \"Even if they go back to Mann+Hummel, they bring this incredible experience back with them. No matter what, it's a win-win.\"\u003c/p>\n\u003cp>For all the talk about Purar being independent, the team’s pitch includes the backing and experience Mann+Hummel brings to the table.\u003c/p>\n\u003cp>So what happens if Purar fails?\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"Then the next team starts,\" Kloess said.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11738951/something-in-the-silicon-valley-air-why-multinational-firms-send-their-entrepreneurs-here","authors":["251"],"categories":["news_1758","news_8","news_248"],"tags":["news_23542","news_3167","news_2011","news_353","news_4849","news_6607"],"featImg":"news_11739121","label":"news"},"news_11662040":{"type":"posts","id":"news_11662040","meta":{"index":"posts_1591205157","site":"news","id":"11662040","score":null,"sort":[1523650516000]},"guestAuthors":[],"slug":"dockless-dilemma","title":"Dockless Dilemma","publishDate":1523650516,"format":"standard","headTitle":"Mark Fiore: Drawn to the Bay | KQED News","labelTerm":{"term":18515,"site":"news"},"content":"\u003cp>First came the bikes, now the scooters. (No, not \u003ca href=\"https://www.kqed.org/news/11661957/president-trump-pardons-scooter-libby-former-cheney-chief-of-staff\">this Scooter\u003c/a>.)\u003c/p>\n\u003cp>Have you noticed a \u003ca href=\"http://bit.ly/fioredockless\">proliferation of rental electric scooters\u003c/a> in your neighborhood?\u003c/p>\n\u003cp>Officials in San Francisco are considering ways to rein in rouge scooters that are being distributed around the city by a Southern California company and two Bay Area dockless bike startups.\u003c/p>\n\u003cp>City crews \u003ca href=\"https://www.kqed.org/news/11662092/s-f-scooter-battle-city-crews-seize-66-mini-vehicles-from-sidewalks\" rel=\"noopener\" target=\"_blank\">impounded 66 of the mini-vehicles\u003c/a> on Friday morning.\u003c/p>\n\u003cp>The companies placed the scooters throughout San Francisco without permits. Reports of people riding them dangerously or leaving them on sidewalks are proliferating.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n","blocks":[],"excerpt":"First came the bikes, now the scooters. Have you noticed a proliferation of rental electric scooters in your neighborhood?","status":"publish","parent":0,"modified":1523660969,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":7,"wordCount":90},"headData":{"title":"Dockless Dilemma | KQED","description":"First came the bikes, now the scooters. Have you noticed a proliferation of rental electric scooters in your neighborhood?","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Dockless Dilemma","datePublished":"2018-04-13T20:15:16.000Z","dateModified":"2018-04-13T23:09:29.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11662040 https://ww2.kqed.org/news/?p=11662040","disqusUrl":"https://ww2.kqed.org/news/2018/04/13/dockless-dilemma/","disqusTitle":"Dockless Dilemma","path":"/news/11662040/dockless-dilemma","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>First came the bikes, now the scooters. (No, not \u003ca href=\"https://www.kqed.org/news/11661957/president-trump-pardons-scooter-libby-former-cheney-chief-of-staff\">this Scooter\u003c/a>.)\u003c/p>\n\u003cp>Have you noticed a \u003ca href=\"http://bit.ly/fioredockless\">proliferation of rental electric scooters\u003c/a> in your neighborhood?\u003c/p>\n\u003cp>Officials in San Francisco are considering ways to rein in rouge scooters that are being distributed around the city by a Southern California company and two Bay Area dockless bike startups.\u003c/p>\n\u003cp>City crews \u003ca href=\"https://www.kqed.org/news/11662092/s-f-scooter-battle-city-crews-seize-66-mini-vehicles-from-sidewalks\" rel=\"noopener\" target=\"_blank\">impounded 66 of the mini-vehicles\u003c/a> on Friday morning.\u003c/p>\n\u003cp>The companies placed the scooters throughout San Francisco without permits. Reports of people riding them dangerously or leaving them on sidewalks are proliferating.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11662040/dockless-dilemma","authors":["3236"],"series":["news_18515"],"categories":["news_8","news_13","news_248","news_1397"],"tags":["news_22953","news_20150","news_20949","news_38","news_22983","news_4849","news_6607"],"featImg":"news_11662069","label":"news_18515"},"news_141894":{"type":"posts","id":"news_141894","meta":{"index":"posts_1591205157","site":"news","id":"141894","score":null,"sort":[1405528227000]},"guestAuthors":[],"slug":"can-oakland-avoid-tech-conflicts-as-startups-move-in","title":"Can Oakland Avoid Tech Conflicts as Startups Move In?","publishDate":1405528227,"format":"aside","headTitle":"Priced Out | News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_141905\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/07/Impact-Hub-e1405463126937.jpg\">\u003cimg class=\"size-medium wp-image-141905\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/07/Impact-Hub-640x480.jpg\" alt=\"Impact Hub Oakland, a new downtown tech-centric co-working and event space. (Sam Harnett/KQED)\" width=\"640\" height=\"480\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Impact Hub Oakland, a new downtown tech-centric co-working and event space. (Sam Harnett/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cspan style=\"font-size: 4.6875em;float: left;line-height: 0.733em;padding: 0.05em 0.1em 0 0;font-family: times, serif, georgia\">T\u003c/span>he start-up scene has spilled over from San Francisco into Oakland. The blog \u003ca href=\"http://liveworkoakland.com/\" target=\"_blank\">Live Work Oakland\u003c/a> has created a map showing where all these new tech companies are popping up in the city. The city's emerging tech industry is trying to cultivate a new brand — one that's more diverse and has a better relationship with the community. Entrepreneurs, investors and activists are hoping to avoid the “pricing out” of locals and cultural displacement happening in parts of San Francisco.\u003c/p>\n\u003cp>Like most of the new start-up founders in Oakland, Daniel Rodriguez and his business partner aren't originally from the city. They came to the Bay Area from Colombia, and they expected to end up in San Francisco.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'We are already off to a different start here in Oakland, and that bodes well.'\u003ccite>Mitchell Kapor,\u003cbr>\nVenture capitalist\u003c/cite>\u003c/aside>\n\u003cp>“When we thought about the U.S., we thought about San Francisco, like the mecca of the Silicon Valley,” he says. “But when we got there, the price of the rent was so high. Even sharing a room was high.”\u003c/p>\n\u003cp>So instead, the pair moved into West Oakland, a place they had heard about from others in the tech world. Now, they run their start-up out of Impact Hub Oakland. It's a new shared co-working and event space at Grand and Broadway that's buzzing with people trying to create the next big thing.\u003c/p>\n\u003cp>Mitchell Kapor, a venture capitalist also based in Oakland, thinks some of them will succeed.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Kapor, whose \u003ca href=\"http://kaporcenter.org/\" target=\"_blank\">Kapor Center for Social Impact\u003c/a> is just down the street from Impact Hub, says tech can have a different culture here than it does in San Francisco. He thinks it can be more diverse, socially aware and connected to the community.\u003c/p>\n\u003cp>“I do not want to be a Pollyanna. I think change is always a challenging process,” Kapor says, then adds: “We are already off to a different start here in Oakland, and that bodes well.”\u003c/p>\n\u003cp>[contextly_sidebar id=\"5tqal8nysLGHFvvZWZptXWpSCNlQZUcE\"]\u003c/p>\n\u003cp>Entrepreneurs and investors like Kapor are trying to grow local talent. The Hidden Genius Project and \u003ca href=\"http://www.blackgirlscode.com/\" target=\"_blank\">Black Girls Code\u003c/a> are initiatives in Oakland that help African American youth get involved in tech. Google just gave $500,000 to a charity that teaches low-income kids coding and business skills.\u003c/p>\n\u003cp>Community organizer Olis Simmons says it's nice if a few local kids get to learn coding, but that's not nearly enough if Oakland wants to head off the kind of displacement happening in San Francisco.\u003c/p>\n\u003cp>“It's tokenism,” she says. “It's marketing. It's public relations.”\u003c/p>\n\u003cp>Simmons heads \u003ca href=\"http://www.youthuprising.org/\" target=\"_blank\">Youth Uprising\u003c/a>, a neighborhood center in East Oakland, far from downtown. Unemployment there hovers around 20 percent, and the school next door doesn't have reliable high-speed internet. In order for real change to happen, she says, Oakland needs money for social programs and improving public schools—real investments that would help stabilize her neighborhood. She points out that Google and other big tech companies send billions of dollars in profits overseas to avoid taxes that fund services and education.\u003c/p>\n\u003cp>“The truth is, if you don't invest, then over the long haul what you do is you transfer ownership of the city to someone new,” Simmons says.\u003c/p>\n\u003cp>And she says if that happens in Oakland, there will be conflict, and it will be more severe than the clash over tech in San Francisco.\u003c/p>\n\u003cp>“I hate to say this. It breaks my heart to say this,\" Simmons says. \"San Francisco had a very long ramp of displacement and gentrification, that by the time things exploded, the vast majority of the poor people and the people of color were long gone. That's not true in Oakland. It will happen much more rapidly and it will be a much grittier experience.”\u003c/p>\n\u003caside class=\"pullquote alignleft\">'If you don't invest, then over the long haul what you do is you transfer ownership of the city to someone new.'\u003ccite>Ollis Simmons,\u003cbr>\nYouth Uprisings\u003c/cite>\u003c/aside>\n\u003cp>Economist Carol Zabin thinks that distributing the wealth generated by tech could ease the tensions. Zabin is the research director at the \u003ca href=\"http://laborcenter.berkeley.edu/index.shtml\" target=\"_blank\">UC Berkeley Labor Center\u003c/a>. One of the quickest ways to do that, she says, would be raising minimum wage. Higher pay would ensure that when the cost of living increases, regular folks could afford to stay.\u003c/p>\n\u003cp>“It's not just about getting into the tech jobs.” Zabin says. “It's also about improving the jobs that tech creates.”\u003c/p>\n\u003cp>Zabin’s colleague Enrico Moretti calculates that each tech job eventually creates five additional jobs outside of the innovation sector. The wealth that tech generates leads to the employment of more people in areas like food service and construction. That's why Zabin says other tech hubs should follow Seattle's lead.\u003c/p>\n\u003cp>Seattle is increasing minimum wage to $15 an hour. San Francisco has a similar measure on this November's ballot.\u003c/p>\n\u003cp>“What are the economic costs of that?” Zabin asks. “It means those wealthy tech workers have to pay more for their restaurant meals and their retail expenditures, and their services, and not very much more — 1 or 2 or 3 percentage points more when we get a wage jump of 50 or 60 percent.”\u003c/p>\n\u003cp>The start-up scene is relatively new in Oakland, but the city is already grappling with wage inequality.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>In November, Oakland will ask voters to decide whether to increase minimum wage to $12.25 an hour, and in West Oakland, there are protests against two new redevelopment zones that community members fear will speed up gentrification. As more start-ups move in, locals are wondering what roll tech companies will play in these issues.\u003c/p>\n\n","blocks":[],"excerpt":"Entrepreneurs, investors and activists look to avoid tensions that have beset San Francisco's boom.","status":"publish","parent":0,"modified":1527806665,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":24,"wordCount":989},"headData":{"title":"Can Oakland Avoid Tech Conflicts as Startups Move In? | KQED","description":"Entrepreneurs, investors and activists look to avoid tensions that have beset San Francisco's boom.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Can Oakland Avoid Tech Conflicts as Startups Move In?","datePublished":"2014-07-16T16:30:27.000Z","dateModified":"2018-05-31T22:44:25.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"141894 http://ww2.kqed.org/news/?p=141894","disqusUrl":"https://ww2.kqed.org/news/2014/07/16/can-oakland-avoid-tech-conflicts-as-startups-move-in/","disqusTitle":"Can Oakland Avoid Tech Conflicts as Startups Move In?","customPermalink":"2014/07/16/oakland-tech-startups-innovation-gentrification/","path":"/news/141894/can-oakland-avoid-tech-conflicts-as-startups-move-in","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_141905\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/07/Impact-Hub-e1405463126937.jpg\">\u003cimg class=\"size-medium wp-image-141905\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/07/Impact-Hub-640x480.jpg\" alt=\"Impact Hub Oakland, a new downtown tech-centric co-working and event space. (Sam Harnett/KQED)\" width=\"640\" height=\"480\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Impact Hub Oakland, a new downtown tech-centric co-working and event space. (Sam Harnett/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cspan style=\"font-size: 4.6875em;float: left;line-height: 0.733em;padding: 0.05em 0.1em 0 0;font-family: times, serif, georgia\">T\u003c/span>he start-up scene has spilled over from San Francisco into Oakland. The blog \u003ca href=\"http://liveworkoakland.com/\" target=\"_blank\">Live Work Oakland\u003c/a> has created a map showing where all these new tech companies are popping up in the city. The city's emerging tech industry is trying to cultivate a new brand — one that's more diverse and has a better relationship with the community. Entrepreneurs, investors and activists are hoping to avoid the “pricing out” of locals and cultural displacement happening in parts of San Francisco.\u003c/p>\n\u003cp>Like most of the new start-up founders in Oakland, Daniel Rodriguez and his business partner aren't originally from the city. They came to the Bay Area from Colombia, and they expected to end up in San Francisco.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'We are already off to a different start here in Oakland, and that bodes well.'\u003ccite>Mitchell Kapor,\u003cbr>\nVenture capitalist\u003c/cite>\u003c/aside>\n\u003cp>“When we thought about the U.S., we thought about San Francisco, like the mecca of the Silicon Valley,” he says. “But when we got there, the price of the rent was so high. Even sharing a room was high.”\u003c/p>\n\u003cp>So instead, the pair moved into West Oakland, a place they had heard about from others in the tech world. Now, they run their start-up out of Impact Hub Oakland. It's a new shared co-working and event space at Grand and Broadway that's buzzing with people trying to create the next big thing.\u003c/p>\n\u003cp>Mitchell Kapor, a venture capitalist also based in Oakland, thinks some of them will succeed.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Kapor, whose \u003ca href=\"http://kaporcenter.org/\" target=\"_blank\">Kapor Center for Social Impact\u003c/a> is just down the street from Impact Hub, says tech can have a different culture here than it does in San Francisco. He thinks it can be more diverse, socially aware and connected to the community.\u003c/p>\n\u003cp>“I do not want to be a Pollyanna. I think change is always a challenging process,” Kapor says, then adds: “We are already off to a different start here in Oakland, and that bodes well.”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Entrepreneurs and investors like Kapor are trying to grow local talent. The Hidden Genius Project and \u003ca href=\"http://www.blackgirlscode.com/\" target=\"_blank\">Black Girls Code\u003c/a> are initiatives in Oakland that help African American youth get involved in tech. Google just gave $500,000 to a charity that teaches low-income kids coding and business skills.\u003c/p>\n\u003cp>Community organizer Olis Simmons says it's nice if a few local kids get to learn coding, but that's not nearly enough if Oakland wants to head off the kind of displacement happening in San Francisco.\u003c/p>\n\u003cp>“It's tokenism,” she says. “It's marketing. It's public relations.”\u003c/p>\n\u003cp>Simmons heads \u003ca href=\"http://www.youthuprising.org/\" target=\"_blank\">Youth Uprising\u003c/a>, a neighborhood center in East Oakland, far from downtown. Unemployment there hovers around 20 percent, and the school next door doesn't have reliable high-speed internet. In order for real change to happen, she says, Oakland needs money for social programs and improving public schools—real investments that would help stabilize her neighborhood. She points out that Google and other big tech companies send billions of dollars in profits overseas to avoid taxes that fund services and education.\u003c/p>\n\u003cp>“The truth is, if you don't invest, then over the long haul what you do is you transfer ownership of the city to someone new,” Simmons says.\u003c/p>\n\u003cp>And she says if that happens in Oakland, there will be conflict, and it will be more severe than the clash over tech in San Francisco.\u003c/p>\n\u003cp>“I hate to say this. It breaks my heart to say this,\" Simmons says. \"San Francisco had a very long ramp of displacement and gentrification, that by the time things exploded, the vast majority of the poor people and the people of color were long gone. That's not true in Oakland. It will happen much more rapidly and it will be a much grittier experience.”\u003c/p>\n\u003caside class=\"pullquote alignleft\">'If you don't invest, then over the long haul what you do is you transfer ownership of the city to someone new.'\u003ccite>Ollis Simmons,\u003cbr>\nYouth Uprisings\u003c/cite>\u003c/aside>\n\u003cp>Economist Carol Zabin thinks that distributing the wealth generated by tech could ease the tensions. Zabin is the research director at the \u003ca href=\"http://laborcenter.berkeley.edu/index.shtml\" target=\"_blank\">UC Berkeley Labor Center\u003c/a>. One of the quickest ways to do that, she says, would be raising minimum wage. Higher pay would ensure that when the cost of living increases, regular folks could afford to stay.\u003c/p>\n\u003cp>“It's not just about getting into the tech jobs.” Zabin says. “It's also about improving the jobs that tech creates.”\u003c/p>\n\u003cp>Zabin’s colleague Enrico Moretti calculates that each tech job eventually creates five additional jobs outside of the innovation sector. The wealth that tech generates leads to the employment of more people in areas like food service and construction. That's why Zabin says other tech hubs should follow Seattle's lead.\u003c/p>\n\u003cp>Seattle is increasing minimum wage to $15 an hour. San Francisco has a similar measure on this November's ballot.\u003c/p>\n\u003cp>“What are the economic costs of that?” Zabin asks. “It means those wealthy tech workers have to pay more for their restaurant meals and their retail expenditures, and their services, and not very much more — 1 or 2 or 3 percentage points more when we get a wage jump of 50 or 60 percent.”\u003c/p>\n\u003cp>The start-up scene is relatively new in Oakland, but the city is already grappling with wage inequality.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>In November, Oakland will ask voters to decide whether to increase minimum wage to $12.25 an hour, and in West Oakland, there are protests against two new redevelopment zones that community members fear will speed up gentrification. As more start-ups move in, locals are wondering what roll tech companies will play in these issues.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/141894/can-oakland-avoid-tech-conflicts-as-startups-move-in","authors":["253"],"programs":["news_6944"],"series":["news_18549"],"categories":["news_248"],"tags":["news_4613","news_6611","news_2141","news_18","news_23374","news_23370","news_6607"],"featImg":"news_141905","label":"news_6944"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. 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Because everyone needs a little help being human.\u003cbr />\u003cbr />\u003ca href=\"https://www.npr.org/podcasts/510312/codeswitch\">\u003cem>Code Switch\u003c/em> offical site and podcast\u003c/a>\u003cbr />\u003ca href=\"https://www.npr.org/lifekit\">\u003cem>Life Kit\u003c/em> offical site and podcast\u003c/a>\u003cbr />","airtime":"SUN 9pm-10pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Code-Switch-Life-Kit-Podcast-Tile-360x360-1.jpg","meta":{"site":"radio","source":"npr"},"link":"/radio/program/code-switch-life-kit","subscribe":{"apple":"https://podcasts.apple.com/podcast/1112190608?mt=2&at=11l79Y&ct=nprdirectory","google":"https://podcasts.google.com/feed/aHR0cHM6Ly93d3cubnByLm9yZy9yc3MvcG9kY2FzdC5waHA_aWQ9NTEwMzEy","spotify":"https://open.spotify.com/show/3bExJ9JQpkwNhoHvaIIuyV","rss":"https://feeds.npr.org/510312/podcast.xml"}},"commonwealth-club":{"id":"commonwealth-club","title":"Commonwealth Club of California Podcast","info":"The Commonwealth Club of California is the nation's oldest and largest public affairs forum. 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