Tech:NYC Digest: June 21

Tech:NYC Digest: June 21

June 21, 2023 • Estimated Reading Time: 8 minutes

Wednesday, June 21, 2023

Happy longest day of the year (and official start of summer)! ☀️ In today’s digest, tech companies take on the rising costs of childcare, a statewide ban on non-competes, and prepping for Pride Weekend in NYC.

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  • Legislation banning non-compete clauses in employment contracts statewide is headed to the desk of Gov. Kathy Hochul, after the state legislature signed off in a special session today. Gov. Hochul has until the end of the year to sign the new rules into law. (Bloomberg) 

    • The measure, however, does not ban confidentiality agreements or non-solicitation deals, in an effort to preserve businesses’ ability to protect their proprietary information. 

  • Senate Majority Leader Chuck Schumer unveiled his long-awaited legislative framework for regulating artificial intelligence in a speech today. He warned that “Congress must join the AI revolution” now or risk losing its only chance for federal laws to keep pace with the technology. (NBC News)

  • The city is planning to open a new application center in the coming weeks to help migrants formally apply for asylum — a necessary step in securing permits to work legally in the US. (New York Daily News)

In other reading:

Childcare costs have ballooned to the point that just 7% of NYC families with children can afford center-based care for one infant or toddler, according to a new report from the Citizens’ Committee for Children of New York. 

To help respond, tech startups are stepping in to marshal resources to better define the challenges parents face in finding care, and advocate for solutions.

Brooklyn-based startup Carefully recently launched Fix Childcare, an online resource hub dedicated to understanding the causes of the childcare crisis and inspiring action.

  • The site is focused on surfacing "stories from people in the community driving change to help people find the support they need," Carefully CEO Leslie Borrell told us. "We aim to be a place where families, community organizers, and elected officials can find valuable information about the system issues driving our childcare crisis from the people who are being impacted and the people who are working to find solutions." 

Carefully’s hub comes alongside a new push for companies to be more transparent about their childcare benefits: NYC-based newsletter publisher (and Tech:NYC member!) theSkimm is partnering with advocacy campaign Moms First on the #ShowUsYourChildCare initiative. 

  • The challenge builds on the success of last year’s #ShowUsYourLeave campaign, which led to more than 100 companies publishing their paid family leave policies on Twitter, LinkedIn, and other platforms.

  • Reshma Saujani, Moms First’s founder (and Tech:NYC board member) went first, sharing that the organization’s benefits include a $1,000 monthly stipend for care-related costs. 

Startup tools like Carefully’s new resource hub adds to efforts by the New York City Economic Development Corporation's Childcare Innovation Lab and New York’s new $500 million public investment in childcare programs, for example, to set employers up to provide more robust benefits for the long-term.

Our take: If the race for talent during the pandemic taught us anything, it’s that expansive benefits are a powerful recruitment and retention tool. The expectations from (future) employees are here to stay — how industry leaders invest in support for childcare will remain a critical strategy for attracting a more diverse, equitable workforce.

In other reading:

  • What Pay Transparency Laws Are Revealing (The New York Times)

  • This is what Instagram’s upcoming Twitter competitor looks like (The Verge)

  • Cameras on or off? How to settle the debate on video calls for good (Fast Company)

  • Aktos, a NYC-based debt collection SaaS startup, raised $4.4 million in seed funding. 8VC and Crew Capital co-led the round.

  • Caraway, a NYC-based provider of women's mental, physical, and reproductive health services, raised $16.75 million in Series A funding. Maveron and GV co-led the round and were joined by 7wireVentures, Hopelab Ventures, Wellington Partners, Ingeborg Investments, and The Venture Collective.

  • Fero Labs, a NYC-based provider of manufacturing process optimization software, raised $15 million in growth funding. Climate Investment led the round and was joined by Blackhorn Ventures, Innovation Endeavors, and DI Technology.

  • Oso, NYC-based authorization platform for developers, raised $15 million in Series B funding. Felicis led the round and was joined by Sequoia Capital and Harpoon Ventures. 

  • Parrot, a NYC-based AI transcription and management platform, raised $11 million in Series A funding. Amplify Partners and XYZ Venture Capital co-led the round.

  • Sollis Health, a NYC-based concierge urgent and emergency care provider, raised $15 million in Series A extension funding. Participating investors include Torch Capital, Strand Equity, Arkitekt Ventures, and Read Capital.

  • June 26: Virtual: #notapitch: Unofficial Feedback on Your Idea/Prototype from a VC, with Brooklyn Bridge Ventures partner Charlie O’Donnell. Register here.

  • June 28: In-person: AI Meets Virtual Worlds: The Future of Sentience, with Google Labs visiting scholar Steven Johnson, cognitive scientist David Chalmers, and Betaworks CEO John Borthwick. Hosted by Betaworks and Next Big Idea Club. Register here.

  • June 29: In-person and virtual: How I Raised My Seed, with Ned CEO David Silverstein. Hosted by Brooklyn Bridge Ventures. Register here.

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