September 28, 2022

Unitranche

Supportive Business Potential

Tom York on Business: Carlsbad, San Diego Among Top 10 Places to Start a Business

Downtown Carlsbad. Photo by Chris Stone

File this item under the category “Not Too Shabby.”

San Diego came in No. 3 and Carlsbad No. 9 on a list of the 100 best cities in the country for startups, according to a new study from a crowdfunding expert out of Denver.

Overall, the Crowdfund Capital Advisors study ranked Austin as the best city in the country for launching a new business. But two cities in the top 10 is something worth noting.

According to a media release, the study looked at those cities in Americn that offer the best odds for success when it comes to starting a business. The study took data from more than 5,000 companies that have raised money online and primarily from local investors.

The research then compared information ranging from the amount of money invested into pre-IPO startups, the number of fundraising campaigns, the average valuation for companies, the number of investors in fundraising rounds, the success rate of campaigns and the number of unique industries represented.

Crowdfund Calpital released the list earlier this month.

“Startups and small businesses have vast local and regional economic impacts,” said CCA investor Sherwood Neiss, principal at the firm. “Not only do they provide innovative products and services to consumers both locally and nationally, but they also fuel local economies with tax dollars and create community pride and development, not to mention new jobs.”

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Here’s another indication of the growing strength of San Diego’s venture fund business sector.

Stella, which says that it “equips, champions and funds women-led startups,” has reached a milestone. The San Diego organization has helped to connect startups with $71 million in funding in 2021.

Building on this momentum, Stella is broadening its investor network with a five-city Oxytocin Tour starting March 10 in Austin.

The organization’s exclusive network of accredited investors, called Stella Angels, invested $1.3 million via direct investments and indirectly through syndications and crowdfunding.

Through its annual events Women’s Fast Pitch and Women’s Venture Summit, Stella says it has facilitated an added $69.7 million in funding for women-led businesses nationwide, which adds up to the $71 million in funding.

According to a news release, Stella says the record year signifies an increasing awareness of the importance of funding women-led startups.

Over the past three years, only 2% of VC funding went to women-led startups. Stella’s leaders hope the tour will lead to deals that can increase the funding percentage.

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Meanwhile, local big data startup Deckard Technologies says it has signed an agreement with Brea-based HdL Cos. to provide data on short-term rental properties in the West.

The two are now currently working on 18 projects in California and Nevada while pursuing contracts in other states, according to a news release.

HdL Cos. offers cities a turnkey system to collect property and transient occupancy taxes from hotels and short-term rentals.

The rapid growth of the short-term rental sector has driven cities to collect taxes that support essential public services, including fire, safety, schools, trash pickup, and tourism, according to a news release.

Deckard says it will use AI among other technologies to provide details of rental properties, which will help determine whether the property is paying required taxes.

“The goal of the two companies … is to create fairness and tax equity,” said CEO Nick Del Pego. “Many people renting properties just don’t realize they have to pay transient occupancy taxes.”

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Diabetes Research Connection San Diego, a nonprofit that funds research conducted by early-career scientists aimed at finding treatments for Type 1 diabetes, has announced a scientific review committee for 2022.

The DRC SRC is a collaboration of experts from universities and research institutions nationwide. See the full list of DRC SRC members here.

In 2021, DRC provided seed funding for 16 new research projects, bringing the total support of early-career scientists to $2 million, according to a media release. 

Follow on funding, a critical measure of the viability of projects funded by DRC, has topped $8.4 million in additional funds for T1D research.

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The California Welcome Center Oceanside recently made over its displays to better reflect the impact of North County’s surfing and skateboard culture on the business climate. The center — the first stop for many visitors coming into the San Diego region — said the makeover provides an immersive experience reflective of Oceanside’s adventurous lifestyle and beach culture.

Another new addition is the center’s skateboard display donated by Tracker Trucks founder and Oceanside resident Larry Balma.

The display showcases the development of skating over the years through evolving styles for boards and includes boards from celebrity skateboarder Tony Hawk and son, Riley, a local business owner.

Part of the state’s official network of visitor information centers, the Oceanside welcome center serves more than 50,000 visitors a year. Established in 2000, the Oceanside location was one of the first state welcome centers, which now number 21.

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Los Angeles-based Sunday Capital said it has secured $31 million in financing to pay for development of an upscale three parcel, 297-acre residential development in Santa Fe Valley.

The project will include 37 two- to 10-acre lots in one of the last undeveloped areas in and around Rancho Santa Fe.  

As a part of the financing, Sunday Capital said it has secured a $19 million loan to allow development of the first phase of the community, which is already presold to buyers.  

The developer said it will create finished pads and the community infrastructure necessary for the development of high-end, single-family homes over the next two years.

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Finally, this item of note. Front Desk Supply, a hospitality supplier in San Diego, says it has experienced an influx of new customers in the first quarter 2022. The new sales reflect the fact that hotels are scouring for suppliers to offset supply chain shortages and increases in travelers staying in local properties.

The company said it increased sales 28% in the quarter compared to the earlier quarter.

“Front desk managers typically have a dedicated supplier, but they have resorted to finding new sources because of the supply chain crisis,” said Front Desk executive Mark Zisek. “Americans have a “best trip of all time” mindset for 2022, according to this year’s travel trends, so hotels cannot risk falling short of customer expectations.”

Tom York is a Carlsbad-based independent journalist who specializes in writing about business and the economy. If you have news tips you’d like to share, send them to [email protected]







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