Prop 22 ballot battle looms large. On the ballot in California this election is a question that could have lasting ramifications on the gig economy business model utilized by apps like Uber, Lyft and DoorDash. Prop 22, if passed, would allow companies like these to continue to classify its drivers and delivery workers as contractors in California. Over $180 million has been spent by the companies pushing to see it passed, and recent polling suggests the outcome will be tough to predict. [Axios]
Funding for founders of color is still lagging. A new report finds that VC funding for Black and Latinx founders is still falling far short of funding going to their white peers. Since 2015, Black and Latinx founders have raised just 2.4 percent of VC capital overall. The Bay Area has invested more money for Black and Latinx founders than any other region since 2015, with $4.6 billion raised since 2015. As a percentage of overall VC funding in the region, however, this is just 1.6 percent of the money raised in the Bay Area over that time period. [Crunchbase]
60 Coinbase employees take severance offer. Last week, we told you that Coinbase’s CEO vowed that the company would take an “apolitical” stance toward acknowledging the world around it going forward, and encouraged any employees uncomfortable with that position to take a severance package to leave the company. It turns out that about 60 employees, some 5 percent of the company’s workforce, have taken him up on that offer. [CoinDesk]
Clover Health going public. Continuing the trend for 2020, Alphabet’s Medicare insurance startup Clover Health will reportedly be going public thanks to a deal with a “blank check” special purpose acquisition company (SPAC) worth $3.7 billion. SPACs, as an alternative to a traditional IPO, are continuing to gain in popularity due to the volatility caused by the pandemic. Other recent SPAC IPOs include Opendoor, Virgin Galactica and DraftKings. [CNBC]
HubSpot is opening an SF office. Even amid the remote work renaissance of 2020, some companies are still putting down physical roots in expensive markets like SF. Boston-based sales and marketing software company HubSpot is opening a new 5,000-square-foot office in the Northern Financial District, though it won’t officially open for now. This will be HubSpot’s 12th global office. [Boston Business Journal]
Zynga, Lady Gaga partner on mental health. In recognition of World Mental Health Day on Saturday, Gaga’s Born This Way Foundation and Zynga partnered to bring mental-health awareness to the company’s popular Words With Friends app. The initiative will connect the app’s users with mental-health resources and in-game support. [VentureBeat]
