At a virtual town hall held Thursday by dot.LA and PledgeLA to identify actions leaders in the L.A. tech and startup community can take now to break down racial barriers to jobs and capital, and to democratize economic opportunity for the region -- there were ultimately a robust number of questions asked and interest expressed around the issue, though tangible actions remain to be seen.
Nearly 30 years after the 1992 riots in Los Angeles, protesters across the U.S. gathered this time to march against systemic racism and violence faced by the black community after George Floyd was killed while in police custody in Minneapolis.
Across social media, tech companies in L.A. and beyond have posted and tweeted their support for #blacklivesmatter, muted their feeds, and opened their pocketbooks, while music companies took part in a blackout. Companies have also donated to various diversity, equity and inclusion causes, but it remains an open question as to what impact those efforts will have.
<p>"I'm very happy to see that the conversation has shifted, so quickly. I mean, I say that, and kind of almost have to laugh to myself, because this is the conversation that black folks have wanted to have for the last several decades," said Austin Clements, partner at OPV, an early stage venture capital firm created to address the unmet investment needs of small business owners, and managing director of Grid 110 South LA, which provides entrepreneurs with free access to community, mentors and critical resources.</p><p>"Now that people are paying attention, I have two options, I can either be shaming people for like, 'Why are you late to this party?' or I can be welcoming and say 'hey, you know, thanks for showing up.' And I tend to take the latter because that's going to be what makes the next decade, look a lot different than the last."</p><p>Unlike the response to COVID-19 pandemic, where the tech community rushed to directly help and support the effort for PPE, testing and other needs, the response to the protests have been a little more subdued and mixed.</p><p>Some tech companies and leaders have asked how they can help, but for many people, "they don't necessarily see the connection (to) their professional career, their professional skill sets, and how it can address the current issue," said Jasson Crockett, manager of economic policy for the Los Angeles Mayor's Office of Economic Development.</p><p>"I would encourage tech (workers) not to feel uncomfortable wading into this space simply because they are tech and they don't see a direct resolution from their professional skill set. Bring your humanity. Bring your commonality as an Angeleno and as a person."</p><p>In an annual countywide survey released in April, <a href="https://luskin.ucla.edu/opinions-about-quality-of-life-in-l-a-vary-sharply-across-generations" target="_blank">the Luskin School of Public Affairs at the University of California, Los Angeles found "a growing generational and economic divide" among residents</a>. Nearly ⅔, or 64%, of respondents between the ages of 18 and 39 said that L.A. wasn't a place where people who work hard can succeed, but merely a place where the rich can keep getting richer. That's not even accounting for the racial aspects of widening income inequality issues. </p><p>Clements said in recent years, despite increased conversation around diversity and inclusion in Silicon Valley, "there are a lot of minorities, particularly brown and black people that have been left out, and no one could really understand why. Or, there have been all kinds of excuses from, you know, there's a pipeline problem to, you know, all the culture fit and every excuse that you could possibly come up with." He added: "I haven't been seeing a lot of broadly accepted diversity efforts in tech."</p><p>As the chair of PledgeLA, an initiative created by the Annenberg Foundation and the mayor of Los Angeles to promote civic engagement and diversity within the tech community, Clements has been trying to help broaden that effort. Today, <a href="https://www.pledgela.org/" target="_blank">PledgeLA has more than 200 signatories from L.A.'s venture capital and tech community</a> who have pledged to "increase our community engagement by supporting organizations that are making a difference throughout Los Angeles"; "to actively and continuously improve equity, diversity, and inclusion at all levels of our organizations and in our investment decisions"; and "to hold ourselves accountable by measuring and transparently reporting on our progress and impact on these outcomes."</p><p>It is on that last point that many companies have been less willing to engage. The results for the survey and data from the participating companies who did respond are expected to be released soon, Clements said.</p><p>But, as an example of their findings, one of the questions asked to respondents was about how people got their jobs. For the overwhelming percentage of white respondents to the survey, they got their jobs through a friend or referral from someone that worked at the company itself. That was not the case for every other group, Clements said. </p><p>"If you're not tied into this community and these aren't your firsthand relationships, it's hard to actually break into this (tech and VC community)," Clements said. "If you're black, you're literally replying to a LinkedIn post cold and you're at a disadvantage, quite frankly."</p><p>Clements added: "If we just keep asking everybody that's sitting in the room who else they know in the room isn't going to look any different over time."</p><p>That seems to be evident in past actions by the tech community. Roughly five or six years ago, some of the larger tech companies began publicly admitting that their employees were less representative of the overall population, especially at the executive level, Clements said.</p><p>"Unfortunately, they either just have not been equipped or just haven't tried or made it a priority to make any meaningful or substantive advances to improve those numbers," Clements said. "And the reality is, they've gotten away with it. I mean, if we look into stock prices of all these companies, like they've shot up and so I guess theoretically, they haven't had to from a business case standpoint prioritize that. I think that there's the moral case and a business case at this point for ensuring that your staff and your community is more representative of the actual populations of the city."</p><p>The numbers have been clear, <a href="https://hbr.org/2018/07/the-other-diversity-dividend" target="_blank">in study</a> <a href="https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Organization/Our%20Insights/Why%20diversity%20matters/Why%20diversity%20matters.ashx" target="_blank">after study</a>, that diverse companies and funds reap dividends from the diverse perspectives and insights brought to the table. Take just one conclusion, from McKinsey & Company, "Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians."</p><p>But recruiting people outside of your network takes work. With the shakeup of the economy due to the novel coronavirus, there's a real danger that companies especially in the startup community abandon any existing diversity efforts because of a tightened bottom line, said Emily Slade, cofounder and COO of Valence, a new tech platform and community incubated by Upfront Ventures that's focused on connecting black professionals with mentorship, job opportunities and capital.</p><p>"We just have to really encourage everybody to stay focused on the fact that this work is very important," Slade said, "and we've just begun."</p><p>Valence currently works with hundreds of companies and has more than 7,000 black professionals on it.</p><p>The American ideal of a meritocracy has long been a vaunted ethic in the tech and business world. Those communities and their leaders have evangelized the idea that with hard work anyone can pull themselves up the ladder of wealth and influence by their bootstraps. But the panelists did not agree.</p><p>"We live in a world in which your talent, your skill and your ability and potential come secondary at best, probably tertiary to who you know," Crockett said. "And when you start with that as the baseline, then by no way is this a meritocracy, not even close."</p><p>As a former teacher for at-risk young adults, Crockett said it seems as if "we continually feed this message of meritocracy to keep people going, because if not, fi we all in one voice admit we don't have a meritocracy right now and there's no plan for how we're going to change it, we're just admitting it, that's a scary reality for a lot of people who are on the fringes of society, who say, 'shit, why am I trying.'"</p><p>All of us should be asking what we're doing to acknowledge and support and foster the efforts of everyone, and requires first taking the step of admitting that there is no meritocracy right now, Crockett added.</p><p>The speakers weighed in on many more issues and also addressed some of the many audience questions received by dot.LA, including around the topic of recruitment and a perceived "pipeline problem." dot.LA also plans to post additional responses by panelists to questions asked during Thursday's panel. In the meantime, please watch the video below for insights directly from these speakers. </p><p>Lastly, a takeaway thought from Crockett: </p><p>
"What is important is that we capture (this) momentum, unlike in the past, when there has been a moment in time that these conversations have reached a fever pitch but then the energy dissipated," Crockett said. "It is tough to sustain that energy for a topic that makes so many people feel so incredibly uncomfortable, and for which there are so many such a wide range of opinions and perspectives. And so my hope is that the tech community can be an important part in sustaining this conversation beyond the protests beyond next week (because) when you talk, my boss listens."<br/></p><p>__</p><p><em>Do you have a story that needs to be told? My DMs are open on Twitter </em><a href="https://twitter.com/latams" target="_blank"><em>@latams</em></a><em>. You can also email me at <a href="mailto:mailto:tami@dot.la" target="_self">tami(at)dot.la</a>, or ask for my contact on Signal, for more secure and private communications.</em></p><p class="shortcode-media shortcode-media-youtube">
<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="06e31f21c620c46e30195a4011f99a80"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/xpHW_gtxyH0?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
<small class="image-media media-caption" placeholder="Add Photo Caption...">Strategy Session: Lessons of the Moment – Rebuilding & Equality in the Future of LA Tech</small>
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<a href="https://www.youtube.com/watch?v=xpHW_gtxyH0&feature=youtu.be" target="_blank">www.youtube.com</a>
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Here are the latest headlines regarding how the novel coronavirus is impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest updates.
- With internships cancelled, Valence tries to fill the void for young black professionals
- Florida is poised to open Disney World and SeaWorld. Will California be far behind?
- Snap and LAUSD promotes reading during COVID, with an assist from celebs like Alicia Keys
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With internships cancelled, Valence tries to fill the void for young black professionals
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzMyNTkwMi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYwNTczNTE4M30.YVDJESMmCRibfFoEY82y4HiQci38rzJH1RKsJGlw_aE/image.png?width=980" id="7f574" class="rm-shortcode" data-rm-shortcode-id="f541a00e8d17de6d806235c23444c2f4" data-rm-shortcode-name="rebelmouse-image" /><p>Across the country aspiring young students have had their summer internships cancelled because of the pandemic, crushing dreams and muddying professional paths. It's been especially hard for communities of color, where some are the first in the family to go to college or where internships provide an entrance into a professional world.</p><p>Valence Enterprises Inc., a Santa Monica-based company that's developed a sort of LinkedIn for black professionals, is trying to offset the pain calling on their network of leaders and professionals to provide career advice. Their network of 7,000 individuals can talk on everything from Hollywood to venture capital to marketing. Indeed, the legion of young professionals seeking it will need that hand as they enter a world forever changed by the pandemic.</p><p>Many are already facing devastating family loss - as the coronavirus kills African Americans at three times that of white families. And job loss is concentrated in low-wage sectors where black and Latino workers are seeing high unemployment. </p><p>The very wealth gap that Valence seeks to lessen is only <a href="https://www.weforum.org/agenda/2020/05/pandemics-poor-rich-economics-coronavirus-covid19/" target="_blank">expected to widen after the pandemic</a>. </p><p>Dubbing their efforts the "Boost Challenge," Valence is asking their network of more than 7,000 professionals to provide 30 minute one-on-one coaching sessions. "This is a chance to be coached by some really inspiring people that you otherwise wouldn't have direct access to," said Emily Slade, co-founder of Valence.</p><p>So far, they have gotten a buy in from the former chief marketing officer of Beats By Dre, and founder of Opus, Omar Johnson, to offer branding advice; Olympic medalist Michael Johnson will give partnership and sponsorship advice; and Boris Kodjoe, who founded the Full Circle Festival and is an actor and model, will offer his thoughts on the entertainment industry. Other participants include the chief marketing officer of Snap, Kenny Michell; Maisha C. Leek, a partner at Human Ventures; Derek Ali, a Grammy Award-winning mixing engineer; and Caroline Wang, chief culture, diversity and inclusion officer at Target Corp.</p><p>"As a tech platform and professional network focused on connecting the Black community with mentorship, job opportunities and capital,<a href="http://www.valence.community/" target="_blank"> Valence</a> is in a unique position to provide some support," said Kobie Fuller, the co-founder and a general partner at Upfront Ventures. Valence has previously partnered with historically black colleges and universities, where students are reeling from the impacts of the pandemic.</p><p>An online survey by HBCUvc found among students at historically black colleges 62% lost their job due to COVID-19. The sample survey of 137 students by the nonprofit aimed at increasing opportunity in venture capital and technology also showed that among those 75% held a job while at school. </p>Florida is poised to open Disney World and SeaWorld. Will California be far behind?
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI4ODI2OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMDkzNDcyNH0.-nX2hvzltOpH8ieuOf_ohBoNJM-JbXhshLlK4D1FW8M/img.jpg?width=980" id="d0ee6" class="rm-shortcode" data-rm-shortcode-id="79ab04e2418b271f2628e2786013b354" data-rm-shortcode-name="rebelmouse-image" /><p>Walt Disney World wants to reopen in weeks after the Orlando amusement park was shuttered as the pandemic spread, and the company's multi-tiered proposal might be a blueprint to how the Magic Kingdom will open the front gates of its Anaheim park. Other Florida parks are also unveiling proposals to do the same, which must be approved by Gov. Ron DeSantis. </p><p>Disney plans a tiered reopening, with Disney World and Animal Kingdom opening on July 11, then Epcot and Hollywood Studios on July 15.SeaWorld wants to open on June 11. And Universal Orlando presented its plan to reopen on June 5. That plan also has been approved by the Orlando task force, which sent its recommendation to the governor. "We are developing a series of 'know before you go' communication vehicles and our objective is to reinforce our health and safety messages to guests before they arrive on our property so they are aware and prepared for the new environment," Disney's senior vice president of operations, Jim McPhee, <a href="https://www.latimes.com/business/story/2020-05-27/walt-disney-world-park-reopening" target="_blank">told the task force.</a></p><p>Will the same re-opening plan soon be unveiled for California's version of the theme parks? <a href="https://www.latimes.com/california/story/2020-05-27/silicon-valley-health-officer-slams-faster-pace-of-california-coronavirus-reopening" target="_blank">The Los Angeles Times reported</a> that a key architect of the nation's first coronavirus shelter-in-place order is criticizing the state's <a href="https://www.latimes.com/california/story/2020-05-26/los-angeles-county-reopens-with-new-state-guidelines-while-city-allows-in-store-shopping" target="_blank">increasingly fast pace</a> of lifting stay-at-home restrictions. Dr. Sara Cody, health officer for Santa Clara County — home to Silicon Valley and Northern California's most populous county — said she was concerned by the decision to allow gatherings of up to 100 people for <a href="https://covid19.ca.gov/pdf/guidance-places-of-worship.pdf" target="_blank">religious</a>, political and cultural reasons.</p>Snap and LAUSD promotes reading during COVID, with an assist from celebs like Alicia Keys
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjY1NzUwMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTU5OTAxNDQ3N30.Ff-fzCnRnQLbhIXn1cyzX0YwGUwp8YwNWrif-9njEE4/img.jpg?width=980" id="34bce" class="rm-shortcode" data-rm-shortcode-id="8bec468dda80a988ea00bd5388f3aa67" data-rm-shortcode-name="rebelmouse-image" />c1.staticflickr.com<p>Snapchat and L.A. Unified School District are partnering to keep high school students reading books while the coronavirus pandemic keeps them from the classroom. On Wednesday, Snap launched a new original series titled <em>The A-List Book Club </em>on its Discover platform, which houses Snap-curated content for its young-skewing audience. The new series will showcase celebrities discussing a favorite book and what it means to them. </p><p>Participating celebrities, who will shoot the footage themselves, include Russell Westbrook, Alicia Keys, and Kendall Jenner. At the end of each episode, LAUSD students can swipe up to be directed to L.A. Unified's website, where they can enter their student credentials to receive a free digital copy of the book. Book donations are supported by L.A. Students Most In Need, a charity created to support students during this challenging time. </p><p>The series will also air on LAUSD's YouTube channel, as well as on Snapchat nationwide, but without the swipe up option. "Education creates opportunity, and we are excited to support public education and help create new ways to engage students in learning outside the structure of a classroom," said Evan Spiegel, Snap's co-founder and CEO. "We are inspired by working together with Los Angeles Unified to create resources for students to help them build the foundation for future success."</p>From Your Site Articles
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Culver City-based United Dwelling, which aims to help alleviate California's critical housing shortage by helping homeowners turn their garages into stylish studio homes they can rent out to tenants, announced Tuesday it has raised $10 million in series B funding to be able to build more units.
"This is the biggest problem facing California," said Steven Dietz, founder and CEO, before pausing for a moment to add: "Well maybe it's the second biggest problem right now."
<p>United Dwelling, which has gotten glowing press in <a href="https://www.nytimes.com/2019/10/15/realestate/adu-empty-garages-california-housing-shortage.html" target="_blank">The New York Times</a> and <a href="https://www.fastcompany.com/90442349/this-company-will-turn-your-garage-into-an-apartment-for-free-and-help-you-rent-it-out" target="_blank">Fast Company</a>, was born out of a <a href="https://www.hcd.ca.gov/policy-research/AccessoryDwellingUnits.shtml" target="_blank">loosening of California laws</a> in 2016, <a href="http://www.modative.com/adu-blog/the-12-most-critical-2020-adu-rule-changes-for-california" target="_blank">further relaxed this year</a>, that allow more homeowners to build Accessory Dwelling Units, or ADUs. The company says there are more than 250,000 underused two-car garages in L.A. County, the vast majority of which are simply being used to store junk. "That's a really bad use of residential space," said Dietz. </p><p>United Dwelling partners with homeowners to find a contractor for construction, find qualified tenants and manage and maintain the property. It leases the garage or land for a set number of years (usually 15 years) and the homeowner gets a cut of the rent or can choose to buy back the ADU at any time for $79,900.</p><p>To save on construction costs, United Dwelling will only build when it has secured contracts on five properties within two miles of each other. The company targets lower-income neighborhoods and so far all of its projects have been along the Expo Line west of the University of Southern California.</p><p>"What we do is not appropriate on a four million dollar million property," said Dietz.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI4ODAwNi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1NDQyNTM4Nn0.b_MkzgwWJbUO1UatOo3nMhpRy52_90y5QTgTacC_9eY/image.jpg?width=980" id="d5508" class="rm-shortcode" data-rm-shortcode-id="c2748373aa5616af429d25f5b5c64772" data-rm-shortcode-name="rebelmouse-image" />
<small class="image-media media-caption" placeholder="Add Photo Caption...">The interior of a converted garage.</small><small class="image-media media-photo-credit" placeholder="Add Photo Credit...">Ben Kessler (United Dwelling)</small></p><p>Westwood-based Alpha Edison led the round, which included investment from <a href="https://lsvp.com/" target="_blank">Lightspeed Venture Partners</a>. The funds will be used to support the installation of over 150 ADUs in 2020 and 1,500 in 2021.<br/></p><p>Dietz's career has gone in the opposite direction of the traditional tech trajectory. He was a founding general partner at Upfront Ventures in 1996 and stayed at the firm for two decades before leaving to become an entrepreneur in 2016. </p><p>Dietz started raising the series B at the beginning of the year. Just as the round was ready to close, COVID-19 hit. "I had term sheets and the world started to change," he said. "I thought the valuation had to adjust. We took it down 10% and moved forward." </p><p>The company paused construction for five weeks but is now ramping up again. Some practices it adopted during the pandemic will become permanent. For instance, the company saw no drop off in conversion rates when it switched from visiting people at their homes to virtual consultations, so that will stay. </p><p>Dietz acknowledges it is a strange time to be building a new company, but he notes that even though it has taken a temporary backburner, the state's housing problem is not going away. He also says a recession could make the company's thesis even more appealing. </p><p>"I think the economic situation makes a second source of income more interesting to homeowners," he said. </p>
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