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Category: Silicon Alley

Don’t Say Gig: California AB5 & How It Will Affect Tech Globally

Don’t Say Gig: California AB5 & How It Will Affect Tech Globally

Image by Pete Linforth from Pixabay

It looks like California Bill AB5 will be going into effect. To refresh your memory, “Known popularly known as the gig worker bill, it required companies that hire independent contractors to reclassify them as employees,” wrote Investopedia.

Upside: gig workers will now be entitled to minimum wages, health insurance, vacation time and other employee benefits. Downside: they no longer choose their schedules, may be barred from taking other employment. And who ultimately gets the bill for the increased costs? Enactment of the bill was temporarily delayed by trucker protests. “California truckers pledge to continue blockade of Oakland port over controversial labor law,” as it made it difficult for them to work as independent contractors, Fox News reported.

It affects tech, too – big time, so pay attention.

During the lockdowns, some countries required that employers continue to pay their employees, even in cases where the company would essentially need to cease functioning as a result of said lockdowns. If they laid the employees off, they were required to pay three months severance. Both of which drove many companies out of business, especially startups – so everyone was out of a job. Nothing like throwing out the baby with the bathwater. Read More...

Urban Distancing and the Rise of the Rest

Urban Distancing and the Rise of the Rest

For years, our urban areas have been attracting the young and the talented away from smaller towns, cities and suburbs, which had been leading to a seeming unabated expansion of our major urban centers into sprawling megalopolises. You could rattle off the destinations almost by rote: New York, San Francisco/Silicon Valley, Seattle, Los Angeles, plus a few more here and there. It didn’t matter that housing costs were absurd and, in many cases, up to half one’s salary would go into living quarters roughly the size of one’s college dorm. These were the epicenters, the hubs, at what may well prove to be, in retrospect, a moment in time.

We have yet to see the full after effects of the lockdowns, and while there have been reports of urban areas and states like New York and California hemorrhaging citizens, we’ve been hearing from our readers that many of them who moved out New York et al seemingly temporarily, sheltering with family or friends, gravitating back to the cities/towns/communities where they grew up, carrying on business over zoom et al, and watching the Draconian lockdowns and more lately, urban rioting, from afar, now have no intention of moving back. In fact, one investor friend who moved to a farm upstate at the onset, recently posted on the gram, showing off his new brood of calves. They were like having little kittens, he said. Read More...

Fake It Til You Make It 2.0

Fake It Til You Make It 2.0

More and more we’re seeing founders without so much as a plan to profitability raise outrageous amounts of venture capital based mostly on, from what we can tell, hubris, being mediagenic and what may arguably be either a Napoleonic complex, a touch of bipolar syndrome, or some combination of the two.

There seems to be a clear pathway to success in technology without having to be bothered with showing profits or even having a viable or clearly defined product, but given the downfall of Elizabeth Holmes (Theranos), Travis Kalanick (Uber), and most lately Adam Neumann (WeWork), that pathway hasn’t been clearly defined, or refined. But we have been paying attention, and we believe we have come up with 12 basic rules for success in technology – even with little or simple tech required: Read More...

The NYC Tech Inferiority Complex

The NYC Tech Inferiority Complex

The New York Post recently reported that Amazon is eyeing a return to New York City. This came on the heels of the Amazon/NYC as second headquarters debacle when Amazon abruptly pulled out of the deal thanks to protests orchestrated by a certain Queens member of Congress.

But that’s not what this is about. As we’ve been hard at work on our StartupOneStop app, which will not be limited to NYC information, West Coast readers, et al, two things occur to us: Read More...

140 Characters Who Helped Shape the Tech World

140 Characters Who Helped Shape the Tech World

It was Peter Thiel who said, “We were promised flying cars. Instead we got 140 characters.” It looks like flying cars may be slowly rolling out, with Singapore’s flying taxi trial set to begin in the second half of 2019, but who the hell are those 140 characters to whom Theil might have been referring? As a co-founder of PayPal and an early investor in Facebook, LinkedIn, Yelp and Quora, he certainly knows what sorts of characters tech can breed.

We’ve been involved in the tech world since the nascent days of Web 1.0 in New York City – with monthly trips to Silicon Valley at the time, as well – and over the years, have encountered many of those characters, upfront and personal, for better or for worse. Of course we have stories to tell, but that’s for a later date and a much longer opus.

Some were true innovators who created platforms and software and devices that forged an entirely new industry. You may not be familiar with their names, but their contributions should never be forgotten. Some forgot their original drivers, whether it was to not be evil or to connect the world, tracked the world’s population in ways and to an extent to which it had never been tracked before, storing it and parsing out that information to the highest and/or any and all bidders, and paying no heed to the concept that we might have the right to be forgotten. Read More...

How to Defy the Laws of Time and Physics – And (Sometimes) Common Sense

How to Defy the Laws of Time and Physics – And (Sometimes) Common Sense

We were recently asked to give a brief history of the early days of tech in New York. Given the speed of tech, it’s not all that easy to condense even a relatively short cycle into a brief presentation, especially considering internet time: a lot happened quickly, and all at once.

It did, however, strike us that many of the ideas that have made for successful – and not so successful – Silicon Valley companies today were first developed in New York in those early days. We had social networks – Six Degrees, theglobe.com, iVillage – two of which were acquired, while the third (theglobe.com) not only went public, but posted the largest first day gain of any IPO in history up to that date – then crashed spectacularly when the dot com bubble burst.  What also struck us was the on-demand economy. We did have that back then, too, so nothing new and again, what man cannot remember he is doomed to repeat.

In the days of Web 1.0, there was a company called kozmo.com, an on-demand delivery service that promised free one-hour delivery of “videos, games, dvds, music, magazines, books, food, et al, and they would even deliver a pack of chewing gum at 2 am, if there was a call for it – literally. They raised money and lots of it: $250 million, according to Wikipedia, and they burned through lots of it as well: According to documents filed with the Securities and Exchange Commission, in 1999 the company had revenue of $3.5 million, with a resulting net loss of $26.3 million. They, too, spectacularly dot bombed. Read More...

Where Are All the Women Investors?

Where Are All the Women Investors?

Following the Ellen Pao gender discrimination trial, quite a few articles came out about the lack of women investors in technology. We attend many events and panels, and it struck us that we know quite a few women tech investors, so we sat down and made a list of the ones we know in New York alone – and quickly came up with well over a hundred names. So, they’re out there. In New York, anyway.

Not long after having compiled this list (170+ VCs, angels, Corporates and Family Offices), we attended the Demo Day of one of the leading accelerators and noticed something odd: after the presentations, the male investors gathered in small groups to discuss the various companies, while the women dispersed to different stations where the entrepreneurs were answering questions and it struck us that there was something of a disconnect/chokepoint: the proverbial Old Boy networks have been around forever and while the names and faces may change, they’re still very much alive and well, while there’s no such long-standing network/pipeline among women: the women investors don’t necessarily all know each other.

Which gave birth to Ladies Who Lead, an event we plan on hosting quarterly (our 2nd one will be held this Thursday evening) so that the women investors of New York can get better acquainted with each other, in order to facilitate deal flow. Read More...

The Founder’s Guide to the 2017 Investing Landscape

The Founder’s Guide to the 2017 Investing Landscape

Esther Dyson hit it spot on when she said that there are too many entrepreneurs out there, and way too many who don’t know the fundamentals of how to work and/or build businesses properly. Many young entrepreneurs have never worked for a company, or may have worked briefly for a startup that may or may not have gotten traction/funding, and that’s not the same as working for a company that is not dependent on funding – nor are you likely to learn the fundamentals of building a true, sustainable business that way.

We talk to investors all the time and count some as being among our closest friends/longest-standing acquaintances, and they tell us things – provided that they’re shared anonymously – that they would not ordinarily share with entrepreneurs. We’re going to share some of that information with you here and, for the record, with the prior consent of those investors, and a special thanks to Veronica Guzman of WAM Ventures, who did give us permission to mention her name, for her comments and insights.

Many founders – especially first-timers – believe that pitching to investors is a panacea. Note to self: we do attend many accelerator demo days and one investor recently told us that he was writing checks to companies he had met through the accelerator, which is why he goes to demo days: to suss out good companies. Mind you, he was writing those checks to companies he had met through the accelerator three years prior, and not that day. He had been keeping a watchful eye on them, and now that they were ready (meaning, had traction/customers/sales), he was all in. A company that has nominal revenues and has only been in business a few months is asking for major disappointments, if getting funded is their goal at that point, another investor recently noted. “Advisors are telling them to pitch angels this way,” Veronica noted. Read More...

The Top 10 Whines of 2016

The Top 10 Whines of 2016

2016 was not an easy year. It was one in which emotions ran high – to put it mildly. This considered, we decided to pay homage to some of those emotions and one thing is certain: it was definitely a vintage year for whines. While there might be a preponderance of Silicon Valley people, places and companies on the list, remember – California is known for its whines. Without further ado and in no particular order:

Elizabeth Holmes/Tim Draper: It was decidedly not a good year for tech’s first female unicorn, whose fortunes went from $4+ billion to zero. The company also left a trail of unhappy investors, but not Tim Draper, who whined about the unfair press that brought the company down. “Instead of those negative reports, he argued in ArsTechnica, people should focus on what Theranos is doing for consumers. They “love” the company, he added, despite the fact that thousands of consumers have had their blood test results—results that may have led to incorrect treatments—corrected or voided. And several consumers have filed lawsuits seeking class-action status against Theranos.” We know that Holmes idolizes Steve Jobs – who is also gone, but not forgotten.

Jack Dorsey: the CEO of Twitter and Square had a mixed year. Square is doing well, from all reports, but Twitter – not so much, with the stock price pretty much in la toilette and not a buyer in sight. One of the Golden Boys of Silicon Valley lost nearly 20% of his net worth recently, with his Twitter stock tanking, but as we always say, just because you can start a company, doesn’t necessarily mean that you can run one. Or two, at the same time, for that matter. For those unhappy shareholders who believed that wunderkind Dorsey was the exception, well, it might be just that you don’t know Jack. Read More...