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XFormer Rivian VP Claims EV Startup's 'Boys Club' Resulted in Gender Discrimination
Zac Estrada is a reporter covering transportation, technology and policy. A former reporter for The Verge and Jalopnik, his work has also appeared in Automobile Magazine, Autoweek, Pacific Standard, Boston.com and BLAC Detroit. A native of Southern California, he is a graduate of Northeastern University in Boston. You can find him on Twitter at @zacestrada.
A former executive at Amazon-backed Rivian that called the company a boy's club and accused the founder of creating a bro culture has filed a lawsuit accusing the Irvine-based electric truck company of gender discrimination.
The suit filed in a California Superior Court in Orange County and first reported by the Wall Street Journal, comes as the electric car company is set to go public next week with a $55 billion valuation.
Laura Schwab, the previous VP of Sales and Marketing at Rivian, said Thursday in a post on Medium that she was ignored by male colleagues, shut out of meetings and dismissed after reporting the problem to human resources.
The lawsuit was not publically available as of publication, but in her post she alleges she was fired in retaliation two days after going to HR with a discrimination complaint. She said the Chief Operating Officer would not communicate with her.
Rivian said it could not comment due to the quiet period imposed ahead of the IPO.
In the article titled "Life Outside the Boys Club: Why I spoke Up About Rivian's Toxic Bro Culture and Got Fired" she said the culture at Rivian was unlike anything she had seen in her two decade career in the auto industry.
"Time and time again, I raised concerns regarding vehicle pricing and manufacturing deadlines, but no one listened, even though I have extensive experience launching and pricing vehicles," she wrote in the post. "It wasn't until my (often less experienced) male colleagues raised the exact same ideas that the Chief Commercial Officer would respond."
Formerly of Jaguar Land Rover North America and most recently the president of Irvine-based Aston Martin North America, Schawb joined Rivian in November 2020 with promises that her voice would be an important part of the company.
At the time, Rivian had little sales infrastructure in place to get their EVs to customers on schedule, Schwab said, arguing that she was on the ground floor of those operations. The company's first vehicles were delivered in September.
According to the Wall Street Journal, Schwab was fired as part of company restructuring, but no other executives were terminated at that time for that reason.
Schwab said in the post Rivian's culture was crafted by its founder R.J. Scaringe, who built a team of tight-knit men who didn't listen to outsiders.
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Zac Estrada is a reporter covering transportation, technology and policy. A former reporter for The Verge and Jalopnik, his work has also appeared in Automobile Magazine, Autoweek, Pacific Standard, Boston.com and BLAC Detroit. A native of Southern California, he is a graduate of Northeastern University in Boston. You can find him on Twitter at @zacestrada.
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'Esports Winter’ is a Myth, Local Gaming Execs Say
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
Last year, global venture capital investment in esports dropped by more than 40%. Investors have been rapidly selling off teams and franchises, and the industry has witnessed a consistent decline in ad spend. This has prompted many critics to coin the term “esports winter,” referring to a fall-off in the industry, an indication that VCs believe their investments didn’t achieve success as expected.
A recent article in The New York Times highlighted two major esports leagues that recently divested from their teams: Madison Square Garden sold its team CounterLogic Gaming to NRG in April, while Team SoloMid sold its League of Legends Championship Series team in late May.
Arguing that the industry still has potential for growth, several gaming executives at a LA Tech Week panel said that instead of an “esports winter,” the industry was experiencing a period of “normalization.” The panel at SoHo House in West Hollywood featured Brian Anderson, CEO of Culver City-based esports outfit FlyQuest Sport, Gene Chorba, head of developer relations at Roku and Felix LaHaye, founder of United Esports.
“I'm actually very skeptical of the claim of an esports winter,” Anderson said. “I think that what I'm seeing in the market right now, ultimately, is just a lot of venture capital firms that deployed capital into the eSports space that are not generating the returns that they were looking for, and have now done the press junket and are labeling it an esports winter.”
“In reality,” Anderson said, “esports, in my view, is alive and well.”
Anderson said there were a lot of “unrealistic expectations” around esports since it became popular in 2016, and the current decline was a sign that the market was correcting itself. “This is a necessary pain point that any nascent industry is going to go through as it matures and develops, and I think that in, let's say, 24 months, 36 months, esports will be in a much better financially sustainable place,” he said.
“I think we're having a little bit of a normalization,” Chorba said. “We saw the entire economy was being shot to the moon, with nothing behind it… we were seeing valuations of companies, public and private, that just didn't make sense for what they were building.”
Other tech industries have experienced a similar “normalization” in recent years. Cryptocurrencies, NFTs and big tech have all seen a downturn in recent months after being flooded with VC interest for many years.
According to the panelists, the existing viewer base for esports was a clear sign that the industry still had potential for growth. “There's still a ton of attention on professional video games. There's still so much grassroots fan support,” Anderson said. “As long as organizations and developers are able to figure out how to actually monetize that fan base, I think esports is still alive and well and here to stay for a long time.”
According to Insider Intelligence in 2022, there were 532 million esports viewers globally, with nearly 30 million viewers in the U.S.; this is expected to increase to 34.8 million by 2026.
Chorba explained that the reduction in ad spend and brand deals in esports shouldn’t worry investors because these crucial revenue streams have slowed down for other industries as well. “Ad-supported is hemorrhaging money and really just trying to wait out what's really a bad economy right now,” he said. As more people stop paying for cable, Chorba said, eyeballs will move onto streaming sites like YouTube or Twitch to watch gaming content.
LaHaye and Chorba said that one of the reasons for the decline in esports investments could be that executives and VCs are running esports companies like tech or SaaS companies. “As a matter of fact, they are not tech companies. They are ad-supported entertainment products,” LaHaye said.
By taking their companies to IPOs too early, certain esports companies ruined their chances in the market, LaHaye added. “There's also a downswing that's done by a rush to [go] public,” he said. “There are some fairly poor business models in esports that are going through a rougher time.”
“[Game publishing] is a hit-making business,” LaHaye said. “I think there tends to be confusion between what is a fundamental issue for the esports industry itself and some business models within the esports industry being bad business.”
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Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
L.A. Tech Week has brought venture capitalists, founders and entrepreneurs from around the world to the California coast. With so many tech nerds in one place, it's easy to laugh, joke and reminisce about the future of tech in SoCal.
Here's what people are saying about day four of L.A. Tech Week on social:
Day two of #LATechWeek was so much fun at the @dotLA event—I ran into old friends and somehow I keep running into my H-Town people. The music and vibes by @dnice were so dope! @Techweek_#techweek23 🎉💃🏻🎶 pic.twitter.com/77E6EbfoGk
— Christina 💜 (@Themetamaven) June 8, 2023
It was terrific fun to see my #LongLA guy @spencerrascoff and his entire awesome @dotLA team show out for our entrepreneurial economy last night! @Miguel@AustinEkeler#PledgeLA team ❤️🫶🙌🥳🎉 we’re all building thr foundation of LA’s next 50-100yrs right now! 🌎🥳 Energy &… pic.twitter.com/hJwwpb4iNm
— Rob Ryan (@IAmRobRyan) June 8, 2023
Exciting energy at LA’s Earliest Stage Investors and Founders rooftop sunset mixer #LATechWeek
hosted by @fikavc@MaCVentureCap@blingcapital@amplifyla@techweek_pic.twitter.com/HWmhOmfm7N
— WeAreLATech📍Los Angeles 🌊 (@WeAreLATech) June 8, 2023
Thanks to the whole #musictech & LA Tech community for mayking #latechweek as fun as it gets at our MAYK HAUS AI MUSIC PARTY & ARTIST SHOWCASE. We had a blast! C U next year! @a16z@KatiaAmeri@Techweek_pic.twitter.com/OqxDPMHLHK
— stefan👄🇺🇦📍music’verse (@stefan_mayk) June 8, 2023
Swinging into the world of VC like a perfectly timed forehand! #InvestorTennis is the newest way to network while staying active. 🎾💼 #LATechWeek@Techweek_@Expert_Dojo@PropelVC@a16zpic.twitter.com/MpfERkjlLw
— Taissa Maleh™️ (@tmaleh9) June 8, 2023
gm LA tech week ✌🏽🌴 pic.twitter.com/DJD22bfE2D
— Tyler Denk 🐝 (@denk_tweets) June 8, 2023
A huge thanks to @upfrontvc and @nickbkim for a great rooftop breakfast event on Day 4 of #LATechWeek! 🔥 pic.twitter.com/UEEixSdzw5
— Tech Week (@Techweek_) June 8, 2023
#LatechWeek: Reconnecting post-Covid! Delighted to engage with inspiring women founders, collaborators, and climate/ESG investors! pic.twitter.com/qZu7BG6O6Z
— Aalia Mauro (@aaliamauro) June 8, 2023
It was inspiring to see so many bright, self-aware, energetic, young founders dedicated to:
doing things right
not compromising
sharing valuable insights
aspiring to better the world
Everything is cyclical.
Gen Z founders and founders event #LATechWeekpic.twitter.com/bgbLcNIuhu
— Kayla Cho (@0xkycc) June 8, 2023
gathered XR folks for #LATechWeek w/ @pearvc & crowdsourced predictions:
1) 40% expect regular headset wear on planes in 2025
2) 60% think the first @Apple#VisionPro app to reach 1M DAU will be made by a co that already exists
3) 90% say Apple will beat @meta to 100M DAU... pic.twitter.com/pwtBGpbuen
— Keith Bender (@keith__bender) June 8, 2023
halfway thru LA tech week, and I can confidently say Los Angeles has the best, most fun, and diversified tech + VC scene in the country. It's not debatable at this point
— Cass (@cassidyjrdnn) June 8, 2023
Sound baths with the sounds of the ocean at #LATechWeek 😌 pic.twitter.com/KSoV5JIFAr
— Tech Week (@Techweek_) June 8, 2023
Thank you to everyone who attended our Creator Economy Panel, co-hosted by @unitedtalent VC and @CooleyLLP, at #LATechWeek! And a special thanks to our panelists @CHRISELLEtweets, @MrEddieHuang, and @justinkan! @Techweek_#TechWeekpic.twitter.com/LlkNMQL4Nw
— GOLD HOUSE (@GoldHouseCo) June 8, 2023
Yes, @terryarbaugh and I I did ride @BirdRide scootere 16.6 miles to make it to an #LATechWeek event on time. This pic shows the first leg. We had to swap scooters due to dead batteries 🤣 pic.twitter.com/w3smaciAUd
— Connor Bush (@TheBushFromLA) June 8, 2023
Last night we hosted a #hardwaremeetup at our office for #LATechWeek.
It was an excellent event. Speakers Rahul Dhond from @firstresonance shared his journey in manufacturing and Karthik Gollapudi talked about his experience developing Dragon Flight software at @SpaceXpic.twitter.com/j30epg0gHk
— Duro (@durolabs) June 8, 2023
Going back to Cali! #LATechWeek!
Attending:
- @a16ztxo Demo Day
- @founderfamilia & @VCFamilia panels and after party
- Speaking at @3XPgg Gaming Expo and @DcentralCon@hackapreneur
If you would like to connect, please feel free to hit me up!#startup#founder#web3#nftpic.twitter.com/OPiyV9XMOm
— Jonathan G. ₿lanco 🛠🦄 (@jgproduct) June 8, 2023
We wrapped up our #LATechWeek day in the one-of-a-kind Budman Studios art gallery for "AI Music Showcase & Party," immersed in the future of music + AI! 🎶 pic.twitter.com/qm3VfY9mnW
— Tech Week (@Techweek_) June 8, 2023
Great sunset soirée by the beach. only in Silicon Beach. 🏖️ let’s https://t.co/qEYeXtxCqe ! #LATechWeek@Techweek_pic.twitter.com/5BOU9iRoqc
— stefan👄🇺🇦📍music’verse (@stefan_mayk) June 8, 2023
We had so much fun celebrating #LATechWeek with our friends from @amplifyla & @techweek_ 🌴
If you've been listening to our World Music 🎧 playlist, what has been your favorite track?#GoGlobal#TechWeekpic.twitter.com/W6tfYWuMLy
— GoGlobal (@goglobalgeo) June 8, 2023
Best part about LA Tech Week? LESS events. MORE intimate spaces with quality humans.@brexHQ Wired. Iykyk pic.twitter.com/nTmgAiShkg
— Jeanine (@JeanineSuah) June 8, 2023
In LA for #LATechWeek with Black Meta Agency tap in and let’s build! #Web3#Tech#VR#AppleXR#AppleMR#Fintech#Blockchain#NFT#Crypto#bmaweb3#lifeandtimesofhj -
Let’s rock!!! pic.twitter.com/VZKqwK9lou
— Howard R. Jean 🇭🇹 • DC • NY (@howardrjean) June 8, 2023
This is me at LA Tech Week
(my 49 year old body can no longer keep up 2023 founders) pic.twitter.com/ISSHdjrQEK
— Ed @ HelloStartup.LA (@hellostartupla) June 8, 2023
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LA Latino/a Founders On Why Authenticity Matters in Tech
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
As one of the most diverse cities in the world, Los Angeles is home to almost 5 million people who identify as Hispanic or Latino/a. Yet, many feel they still lack representation in the city’s tech space.
“I can safely say that last year’s LA tech week hosted all of the events on the west side, and very few were focused on telling Latino and Latina entrepreneurial stories,” said Valeria Martinez, investor at VamosVentures. “We wanted to change that this year.”
The event, titled “The East Side Story –– Latino/a Founders and Funders in LA,” was held at Los Angeles Cleantech Incubator (LACI) in the vibrant Arts District with participation from VamosVentures, LatinxVC, VCFamilia, Supply Change Capital, and LEEAF.
The event was centered around stories about the Latino/a community told by its members. “Storytelling is the most powerful tool we have as human beings,” said restauranteur Bricia Lopez. “We are all here because of the stories that were told to us and the stories that were read to us.”
Lopez’s father migrated to Guadalajara, Mexico because he heard a story about a better life on the other side of the border. While he didn’t have the opportunity to see that “better life,” Lopez wants to share his story with the world in the hopes of inspiring others to share their stories.
“I think for many generations, we were the gatekeepers holding us back from telling our own stories,” Lopez said. “But we are now empowered to share our stories and when we talk about wanting to hear stories from us, it's because we want a mirror into the possibility of who we can become. To me that was how powerful a story is.”
With over 400 RSVPs and a packed house that ranged from founders and investors to vendors and aspiring entrepreneurs, the event brought light to a community hungry for stories they can connect and relate to.
Fanny Grande, CEO of Avenida Entertainment Group, said that on-screen stories about the Latino community are very limited. This lack of representation inspired her to start her production company that aims to empower independent creators.
“The advances of technology, social media and the new generation being very vocal about how they want to be represented gives me hope that things are going to change,” Grande said.
One way Avenida Entertainment Group champions its creators is by providing tech solutions to help fund and produce projects. At the event, Grande announced that her production company plans to launch an English-language streaming service for Latinos to provide visibility to these projects.
“A lot of our clients are so happy that not only did they get their projects made, they're going to be seen by the community who funded the project,” she said.
Patty Rodriguez, co-founder of publishing company Lil’ Libros, aims to give representation to the Latino/a community by publishing bilingual children’s books.
Rodriguez said that entrepreneurship was never a part of her vocabulary while growing up. She also had no experience in publishing before she started her business, but she believed that “we belong on these platforms.” For her, the greatest moments are opening the doors for Latino/a authors and seeing copies of their books at major bookstores.
“It's so beautiful to see your dreams come true and you're working every morning to see them,” she said. “It's wonderful to see them at Target, Barnes & Nobles across the country.”
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.