Tech:NYC Digest: June 10

Tech:NYC Digest: June 10

June 10, 2021 • Estimated Reading Time: 10 minutes

Thursday, June 10, 2021In today’s digest, the end of one of the stranger state legislative sessions in recent memory, it's been IPO-palooza for New York tech in the last year, and getting your Comptroller ranked choice preferences in order.Was this digest forwarded to you? Subscribe here.

Today marks the end of one of the stranger New York state legislative sessions. With the governor facing several controversies and possible impeachment, while the state managed the tail-end of the COVID-19 pandemic, this political era in New York certainly stands alone. Nonetheless, lawmakers have been busy this week debating and passing numerous bills right under the wire.

Why we’re watching closely: This session was already unprecedented for the combination remote-hybrid ways lawmakers had to keep the business of government moving, but it was unique for other reasons. 

  • It was the first time in New York’s history that the Democrats had a supermajority in both houses, giving the legislature far more leverage in the bill and budget negotiation processes, as any veto from the governor could be overridden.

  • And after several allegations related to covering up nursing home deaths and sexual harassment, the Assembly opened an impeachment inquiry for only the second time in the state’s history after Governor William Sulzer was impeached in 1913. (Politico) So, it’s perhaps not surprising that the usually hard-charging Governor Cuomo was quieter than usual this cycle.

I’m just a bill: The Democratic-led houses of the state legislature passed several significant bills this session, notably:

  • In March, the state legalized marijuana, making New York the 15th state to do so.

  • In April, the state legalized online sports betting and enacted the nation’s first ever “Excluded Workers Fund” so that undocumented New Yorkers ineligible for public pandemic assistance could receive unemployment insurance payments.

  • In June, the legislature passed constitutional amendments to allow for same day voter registration and no-excuse absentee ballots. The changes will need to be approved by voters in November’s general election to take effect. 

It was also budget season, and the state legislature passed a landmark $212 billion dollar budget. (New York Times) Some notable components:

  • A first-in-the-nation requirement for affordable internet at $15 per month for qualifying low-income New Yorkers. 

  • A $1 billion small business assistance fund — the state’s largest ever — to supplement federal subsidies.

  • A bump in taxes on high-income New Yorkers and businesses in the state (but not enough of one to surpass California’s rates).

Anything could still happen: On the last day, the legislature is known to work through the night, and several other last-minute bills could come to a vote, including measures on criminal justice reform, gun control, the environment, and the structure of the MTA. (City & State) 

  • For other issues, like additional voting reform bills and the Adult Survivors Act, it looks like they’ll have to wait until the next session.

ICYMI: Tech:NYC organized a coalition of more than 100 tech CEOs and other executives in support of new statewide voting rights laws. Read the full letter here. 

The past 12 months have, of course, been defined by the pandemic. But in that same time, it was hard to miss just how much New York tech grew.

The public listing craze: FirstMark Capital partner Matt Turck posed the question this week: “Remember the days when a New York tech startup going public was like a crazy, unusual event?” Well, in the last 12 months alone:

  • Better, Lemonade, Olo, Oscar, Squarespace, UiPath, Vimeo, Vroom, and at least seven others have all gone public, whether it be through an IPO, direct listing, or a SPAC.

Global IPOs are smashing records — the number of issuances on the New York Stock Exchange has quintupled from the same period last year — with tech companies topping the list to account for more than 27 percent of the last year’s global total. (Forbes)

New York has become a real center of gravity for that activity. So many homegrown NYC tech companies going public wasn’t necessarily in the cards: the economic downturn early in the COVID-19 pandemic shelved some IPOs and postponed plans to raise capital. But investor sentiment and market recovery was swift, all things considered, and it shows:

  • “Good ideas are going from good ideas to ringing the bell in record time,” said Marc Jaffe, managing partner of Latham & Watkins LLP’s New York office. (Wall Street Journal)

Who’s next? 1stdibs, CLEAR, Sprinklr, and Zeta Global have all either priced their IPO or have announced they will do so soon. It’s already proven a banner year for both New York venture capital and the public markets in the first half of the year, and we have no reason to believe the train is slowing in the second half either.

In other news:

  • Goldman Sachs informed US employees they must report their vaccination status by noon today. Disclosing the status had been optional before, but now all employees, regardless of whether they are in the office of choose to wear a mask while there, will need to log their status in the company’s internal system. (New York Times)

  • Companies from Google to WeWork want to help employers cut down on Zoom fatigue with a new approach to meetings and communications: holograms for the workplace. (Wall Street Journal)

With vaccines proving to be extremely effective, and kids 12 and older eligible to get their shots, you might be thinking again about vacation travel for yourself or your family. France today opened its borders to vaccinated Americans, and many other countries are available to visit for vaccinated individuals with varying restrictions. Do you have summer vacation travel plans?

  • 1stdibs, a New York-based online marketplace for luxury items like art, furniture and jewelry, raised $115 million in its IPO. It priced at $20 (within range) for a $794 million fully diluted valuation, and will list on the Nasdaq (DIBS). It had raised over $250 million from firms like T. Rowe Price, Groupe Artemis, Foxhaven Asset Management, Sofina Group and Allen & Co. (MarketWatch)

  • Poppy Seed Health, a New York-based telehealth app mental health for pregnant and postpartum people, raised $1.6 million in a pre-seed funding. Seven Seven Six led the round and was joined by investors including Metrodora, Christina Sass, Julia Cheek, Hannah Bronfman, Roxane Gay, Toyin Ajayi, and Halle Tecco. (Insider)

  • Zeta Global, a New York-based SaaS marketing automation platform, raised $215 million in its IPO. The company priced at the low end of its $10-$12 range, for a $1.9 billion fully diluted valuation, and will list on the NYSE (ZETA). Zeta reports a $53 million net loss on $368 million in revenue for 2020 and raised around $400 million from firms like FS Investments, GPI Capital, GCP Capital Partners, Iris Capital, JMI Equity, Sierra Ventures and Staley Capital. (PR Newswire)

  • June 11: Virtual: The War for Attention: Communication Rules for a Hybrid Workplace, with Grail Head of Communications Matt Burns, EverFi Chief Product Officer Laura Neville, and Axios VP of Communications Yolanda Brignoni. Hosted by Axios. Register here.

  • June 16: Virtual: Functions.NYC: Algorithms and Government Decision-Making, with NYC Algorithms Management and Policy Officer Alex Foard and UrbanLogiq CEO Mark Masongsong. Hosted by Tech:NYC. Register here.

  • June 22: Virtual: The Future of the Office with New York tech HR leaders, including Vivvi Head of People Lauren Gill, CommonBond VP of People Keryn Koch, and Suzy Chief People Officer Anthony Onesto. Hosted by Tribeca Venture Partners. Register here.

The mayoral race has been getting plenty of attention, but the comptroller, NYC’s chief fiduciary officer and final say on how city agencies spend their money, is a pretty big and important role too! Tonight, the official debate among the candidates airs —

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