Childcare Providers Get a Lifeline From L.A. Startup WeeCare

Rachel Uranga

Rachel Uranga is dot.LA's Managing Editor, News. She is a former Mexico-based market correspondent at Reuters and has worked for several Southern California news outlets, including the Los Angeles Business Journal and the Los Angeles Daily News. She has covered everything from IPOs to immigration. Uranga is a graduate of the Columbia School of Journalism and California State University Northridge. A Los Angeles native, she lives with her husband, son and their felines.

Childcare Providers Get a Lifeline From L.A. Startup WeeCare
Photo courtesy of WeeCare

Erika Metry is trying to figure out how to pay the mortgage on the tidy, three bedroom Inglewood home where she and her mother run a small childcare center that's now looking after kids of frontline workers.

The children she took care of pre-COVID-19 no longer come, but she's one of the lucky small-business owners who can keep their doors open during the pandemic. Metry has stayed afloat thanks in part to her partnership with WeeCare, a Marina Del Rey, venture-backed company that has been connecting essential workers to childcare providers.

As the pandemic has worn on, about half of the nation's childcare centers have closed and about a third of childcare homes have shuttered, according to a survey by the National Association for the Education of Young Children. Meanwhile, half of the employees that made up the industry are furloughed or out of a job.


That could be a major problem in California as everyone from distributors to retail sales clerks return to the workplace on Friday. Safety restrictions have severely cut how many children some facilities can take. So, parents of young children desperate to go back to work may find themselves not only jittery about returning a child to daycare, but there simply may not be room for them.

And the winnowing capacity could strain the budgets of many care facilities with high rent costs and that were already operating on thin margins.

"We don't know what's going to happen next," Metry said. "We are waiting for all this to pass."

Metry's daycare Wonderland WeeCare can accommodate 14 children, but she's only been taking care of three since the outbreak.

Childcare Providers Are Getting a Lifeline From L.A. Startup WeeCarePhoto courtesy of WeeCare

In Los Angeles, childcare facilities have been able to stay open during the pandemic for essential workers, but with parents staying home more than half of centers closed. Meanwhile, many smaller home daycare centers like Metry's remained open.

"A number of the programs that have closed will not be able to reopen once the pandemic has subsided," said Rhian Evans Allvin, chief executive of the National Association for the Education of Young Children. She added that there was already a shortage of daycare before the pandemic swept the nation, and it may only get worse.

"What we don't know is if the overall supply lessens dramatically, how many providers will be left?" she said. "I would imagine that overall there will continue to be far more demand than there is supply."

The Center for American Progress has estimated the pandemic could eliminate as many as 4.5 million childcare slots nationwide.

"I think you could make the argument that larger providers can weather the storm longer because of how they're financed, but we've not been through this before," said Evans Allvin. "So I don't know."

Metry has been able to survive in part because of her association with WeeCare.

WeeCare CEO Jessica ChangPhoto courtesy of WeeCare.

Founded in 2017 by Jessica Chang, the company takes care of the administrative tasks for home daycare, helping with marketing and other functions. The service helps keep the costs low for the provider, making the service more affordable for parents. Since the COVID outbreak, it has helped ensure that everyone's temperature is checked through video monitoring.

The company, which raised a seed round of $4.2 million led by Social Impact in 2018, is one of two working with Los Angeles Mayor Eric Garcetti's office to find daycares for essential workers.

Garcetti has offered a $100 stipend per shift for qualified hospital employees needing care. The program has provided a steady stream of parents knocking at the door of Chang's network of homecare providers.

It's given Metry some income as her other clients are still at home. Meanwhile, her mother brokered an agreement with the bank to defer mortgage payments. And though she hoped to secure a small business loan, she hasn't been able to get one.

Chang, who previously worked in private equity, started the business after having a child and finding quality care difficult to find. Her idea was to help small mom-and-pop schools — which make the bulk of the market — with billing, marketing, schedules and helping connections with parents. Her network of childcare providers spans 20 states and includes about 2,000 daycare providers, a number that's gone up since the pandemic.

COVID-19, she thinks, can actually help small homecare providers.

"Daycares are really well positioned right now; they naturally have smaller settings and naturally don't have a lot of people coming in and out," she said.

Under new state guidelines, childcare facilities cannot have more than 10 to a group of children and are required to be screened for illness. Larger centers that rely on a bigger population of children can have challenges making the economics pencil out as their capacity diminishes.

"I think what's going to end up happening is people will reevaluate childcare, and they're going to go back to daycare, like home daycare, as an option for their children," Chang said.

In the meantime, the small centers have other challenges.

"Supplies have been really hard for daycare providers," she said. "They're considered essential workers, but not according to Amazon."

Metry said she gets up early on the weekend to hunt for basic cleaning supplies such as paper towels and disinfectants that are still in short supply at stores.

Ahead of the loosening of stay at home orders, Gov. Gavin Newsom announced the opening of a state portal for childcare referrals that could help parents. And last month, he set aside $50 million for cleaning supplies and another $50 million for childcare vouchers.

Max Arias is president of the SEIU 99, which has been organizing childcare providers and sits on a statewide union coalition for childcare workers. His group has been trying to help find cleaning supplies for many who can't get what they need at Costco or other stores.

But he said in the long-term, the industry needs sustained help. He's been pressing Newsom to create an emergency childcare fund similar to Los Angeles that would accept matching funds from the corporations that are putting people back to work.

"There's going to be a high need for childcare as the economy reopens," he said. But with state finance officials projecting a $54 billion deficit, he's worried programs that rely on subsidized child care could lose much needed funds just as the system is at its weakest point. Cuts to the programs would mean "a lot of providers will have to close and a lot of families will lose access to the subsidized childcare."

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📱From Digital IDs to AI Feeds: Tech Giants Shake Up the Digital World

🔦 Spotlight

Happy Friday Los Angeles!

This week, two tech titans, Apple and Snapchat, announced groundbreaking updates that are poised to reshape the way we interact with our digital devices. From secure digital IDs to personalized AI feeds, these innovations are set to have a significant impact on our daily lives.

Apple's Digital Driver's License: A Game-Changer for LA Residents

Apple has taken a major step forward in digital identity with the integration of California driver's licenses and state IDs into Apple Wallet. This initiative, part of the state's mobile driver's license (mDL) program, offers a more convenient and secure way for LA residents to carry their identification. With encrypted data and NFC-enabled verification, users can now use their digital IDs at TSA checkpoints, select retailers, and even for age verification at bars and restaurants.

The mDL program not only simplifies travel and everyday transactions but also presents exciting opportunities for LA-based startups specializing in fintech, cybersecurity, and identity verification. As digital IDs become more widely adopted, these startups can innovate to create new applications and services that leverage this technology.


Image Source: Snap

Snapchat's AI-Powered Feed and Enhanced AR: A Personalized Experience

Snapchat is undergoing a major transformation with its most significant redesign in years, focusing on simplicity and personalization. The app now offers a more personalized experience, with an AI-driven "For You" feed that curates content tailored to individual preferences. Additionally, Snapchat has enhanced its augmented reality (AR) tools, opening up new possibilities for interactive experiences and creative expression.

LA's thriving tech ecosystem, particularly its startups focused on AI and AR, stands to benefit greatly from Snapchat's innovations. These updates provide opportunities for local developers to create complementary technologies and explore new partnerships within Snapchat's evolving platform.

Impact on LA's Tech Ecosystem

Both Apple's and Snapchat's updates underscore a growing trend toward personalization, security, and streamlined user experiences. LA's tech scene, with its vibrant startup community and strong focus on innovation, is well-positioned to capitalize on these shifts.

As digital experiences become more integrated into our daily lives, LA's startups can explore new frontiers in AI, AR, and secure mobile technologies. This wave of innovation is set to drive growth and collaboration within the local tech ecosystem, solidifying LA's reputation as a global hub for cutting-edge technology.


🤝 Venture Deals

LA Companies

  • PictorLabs, an AI-powered histopathology platform that enhances disease detection, has raised a $30M Series B led by Insight Partners. The company has now raised a total of $48.8 million. - learn more
  • Mellomanic, formerly We Are Giant, has raised a $6M Funding Round, bringing its total capital to $13.8M, to expand its platform and enhance its music experiences for artists and fans, backed by investors including Sterling Partners. - learn more

    LA Venture Funds

    • Mucker Capital participated in a $2.5M Seed Round for Tab Commerce, a fintech company providing financial management solutions to transform how restaurants handle their spending and optimize operational efficiency. - learn more
    • Finality Capital led a $3.2M Seed Round for RISE, a Gigagas Layer 2 blockchain platform designed to enhance scalability and reduce transaction costs. - learn more


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    ⏳Top Productivity Techniques for Entrepreneurs

    In the busy world of entrepreneurship, staying productive is crucial for achieving success. With numerous tasks (and social media) competing for your attention, it can be tough to stay organized and focused. Fortunately, several proven productivity hacks can help you manage your time effectively and prioritize your workload. These strategies are backed by research and have been used by successful individuals in various fields. In this listicle, we’ll explore five effective productivity hacks, including the Pomodoro Technique and the Eisenhower Matrix, that can improve your work habits and enhance your entrepreneurial efforts.


    The Pomodoro Technique

    Developed by Francesco Cirillo in the late 1980s, the Pomodoro Technique uses a kitchen timer to break work into intervals, typically 25 minutes long, followed by short breaks. Cirillo named the method after the tomato-shaped timer he used as a university student, and it has since been adopted by many professionals and students to enhance focus and productivity. To implement it:

    • Choose a task to work on
    • Set a timer for 25 minutes
    • Work on the task until the timer rings
    • Take a short 5-minute break
    • After 4 pomodoros, take a longer 15-30 minute break

    The Eisenhower Matrix

    Named after former U.S. President Dwight D. Eisenhower, this prioritization method helps individuals categorize tasks based on urgency and importance. Eisenhower famously stated, "What is important is seldom urgent and what is urgent is seldom important," which underscores the value of distinguishing between these two aspects to effectively manage time and tasks. This prioritization method helps you focus on what's truly important by categorizing tasks into four quadrants based on urgency and importance:

    1. Urgent and important: Do immediately
    2. Important but not urgent: Schedule for later
    3. Urgent but not important: Delegate if possible
    4. Neither urgent nor important: Eliminate

    Time Blocking

    Time blocking is a technique used by many successful entrepreneurs, including Jack Dorsey and Cal Newport, to allocate specific periods for different types of work. By scheduling tasks in advance, individuals can minimize distractions and ensure they dedicate focused time to their most important responsibilities. This creates structure and helps minimize context switching. For example:

    1. 9-11 AM: Deep work on top priority project
    2. 11 AM-12 PM: Respond to emails/messages
    3. 1-3 PM: Meetings
    4. 3-5 PM: Administrative tasks

    The Two-Minute Rule

    Popularized by productivity expert David Allen in his book "Getting Things Done," the Two-Minute Rule states that if a task can be completed in two minutes or less, you should do it immediately. This approach helps prevent small tasks from piling up and cluttering your to-do list, allowing for a more organized workflow.


    Batching Similar Tasks

    Batching tasks is a technique used by many high-performing individuals, including writer Tim Ferriss, who advocates for grouping similar activities to minimize context switching. By focusing on one type of task at a time, such as responding to emails or making phone calls, you can increase efficiency and reduce mental fatigue.


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    LA Startups Supercharging Cars and Dating 🚗⚡💑

    🔦 Spotlight

    Happy Friday Los Angeles!

    EVgo Inc., a leading Electric Vehicle (EV) charging company based in West Los Angeles, has seen substantial growth under CEO Badar Khan. The company now operates over 3,400 fast chargers across 1,000 sites nationwide, strategically placed in high-traffic urban and suburban areas to enhance convenience for EV users. EVgo’s model focuses on owning and managing its charging stations to ensure a seamless experience, reflecting its commitment to supporting the mass adoption of electric vehicles and facilitating the transition to cleaner transportation.

    In a different electrifying market, Joe Feminella, inspired by his own successful dating journey, launched the dating app, First Round’s On Me in El Segundo with $5 million in funding. This app differentiates itself by requiring users to schedule a date within 24 hours of matching, and after a soft launch in select markets, it expanded nationwide in 2024. As the dating app market faces criticism over algorithmic practices and premium features, First Round’s On Me aims to offer a more genuine and immediate dating experience. Both EVgo and First Round’s On Me exemplify how companies in different industries are addressing their respective market challenges with innovative approaches to improve user experience and engagement.


    🤝 Venture Deals

    LA Companies

    • 3DEO, a startup that specializes in 3D printing small, high-volume metal parts, raised a $3.5M Strategic Investment Round from Mizuhio Bank. - learn more
    • Spotter, a startup that underwrites creators and offers AI tools, raised a $7.4M Funding Round. - learn more
    • Cashmere, a lead generation startup for wealth managers, raised a $3.6M Seed Round. Canapi Ventures led, and was joined by Benchstrength, Plug and Play, The House Fund, and Courtyard Ventures. - learn more

    LA Venture Funds

    • Crosscut Ventures participated in an $8.9M Series A Extension for Nostra AI, a startup that helps e-commerce businesses improve their website performance by speeding up load times. - learn more
    • Fika Ventures, an eight-year-old Los Angeles venture capital firm, has raised a fourth fund in the amount of $160 million to invest in early-stage B2B startups. - learn more

        ✨ Featured Event ✨

        LA TECH CEO SUMMIT

        LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

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