This week in Santa Cruz County business: Capstan raises funds for heart valve treatment, Animal Shelter Benefit Shop seeks new storefront

Each week, we’re taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Capstan Medical raises $110 million for technology to treat certain types of heart disease

A medtech company headquartered on the Westside of Santa Cruz announced Wednesday that it has raised a Series C funding round of $110 million to advance its efforts to treat certain types of heart valve disease using innovative robotics technology. (Series C is typically the fourth and final stage of venture financing, following seed, Series A and B rounds.)

Cardiovascular disease is one of the leading causes of death in America, and one person dies every 33 seconds from it, according to statistics from the Centers for Disease Control and Prevention. Traditional treatment approaches can be highly invasive, with long recovery times. Capstan Medical has been working on an alternative treatment that brings together catheter-based technology with surgical robotics for what it says is a less invasive approach. The company was founded in 2020 and has more than doubled its operations in the past year since it announced its previous funding round. It’s now gearing up to launch its first trials in human patients early next year. 

Read my full story here.

County Animal Shelter’s benefit shop seeks new home

The Santa Cruz County Animal Shelter is seeking a new home for its thrift store. The shop, which raises money for the shelter, opened on 17th Street in Live Oak in 2018, in a building owned by the county parks department. The store must vacate by March 15, 2025.

According to county spokesman Jason Hoppin, the parks department needs to relocate some maintenance staff and storage after losing some space to the Live Oak library annex build-out at Simpkins Family Swim Center and has been working with the shelter on this for a couple of years.

“We are looking for a place that’s about 2,000 square feet with excellent parking and easy access for elderly customers and their pets,” said Lea Goodman, the store’s manager. “We also would prefer to stay in the Live Oak area if that’s possible since we’ve been a fixture there for six years. … We would need to negotiate a rent that is reasonable so we can send the maximum amount of money to the shelter.”

The current location at 17th Avenue and Felt Street, across from Shoreline Middle School, has provided the store with low rent in exchange for the initial extensive renovation of the building when it moved in, according to Goodman, and that arrangement has helped ensure it can give the bulk of its revenue directly to the animal shelter. Finding the space the store needs at an affordable rate has been challenging, and one option officials have looked at would be to find a landlord who would accept a tax-deductible provision in lieu of all or portions of rent. So far, there have been no takers. Goodman said the store is also looking into grant options.

ICYMI: Winds of change at Linda’s Seabreeze: Beloved Seabright restaurant under new ownership

Longtime breakfast and lunch staple Linda’s Seabreeze has new owners at the helm. The restaurant has been in the Seabright neighborhood of Santa Cruz for 35 years, opening just two weeks after the Loma Prieta earthquake. Check out Lily Belli’s story here.

Ch-ch-changes: Openings, closings and other developments

• Cruzio Internet selected for Public-Private Partnership Award: The Monterey Bay Economic Partnership will honor Santa Cruz-based Cruzio this week with a 2024 public-private partnership award. Cruzio is being recognized for work on initiatives like Equal Access Summits to the Sea, which is helping expand broadband access for underserved areas in Santa Cruz, San Mateo, Santa Clara and Monterey counties.
• Unnatural Products names chief operating officer: Santa Cruz-based biotech company Unnatural Products has appointed Simon Bailey to the new role of chief operating officer and president of research & development. Bailey has more than 25 years of experience in drug discovery and related fields, and most recently served as executive vice president at San Diego’s Plexium. Unnatural Products, founded in 2016, has developed an artificial intelligence-based platform that helps enable new treatments for certain types of rare cancers and diseases that have been resistant to other therapies. 
• Lakeside Organic founder named Grower of the Year: Dick Peixoto, owner of Lakeside Organic Gardens in Watsonville, was given the Grower of the Year award last week at the 2024 Organic Grower Summit in Monterey. This award recognizes Peixoto for his work building Lakeside Organic Gardens into one of the biggest family-owned, solely organic vegetable growers and shippers in the United States. Founded in 1996, Lakeside has more than 2,200 acres of over 50 different crops.

Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers

• 69.1%: That was the occupancy rate for county hotels in October, marking a 4% increase from October 2023. The average daily room rate was $174.98, slightly down from that same time last year, according to the latest numbers from Visit Santa Cruz County. Also of note: 71.7% of tourists who came to Santa Cruz County in October were from elsewhere in California.

What’s new on the Lookout Job Board

• Housing Assistant at Housing Authority of The County of Santa Cruz
• Senior Quality Improvement Nurse (RN) at Central California Alliance for Health
• Housing Programs Supervisor at Housing Authority of The County of Santa Cruz
• Lead Payer Analytics Consultant at Central California Alliance for Health
• Water Facilities Operator I, II, III at Scotts Valley Water District

Want more? Browse all openings on our job board.

Hiring? Post your job today!

Save the date 

• Thursday, Dec. 12: The Monterey Bay Economic Partnership will hold its holiday mixer from noon to 1:30 p.m. at MBEP headquarters, 3180 Imjin Rd. in Marina. At the event, MBEP CEO and President Tahra Goraya and UC Santa Cruz Chancellor Cynthia Larive will honor the winners of the 2024 Alfred Diaz-Infante Community Impact Award and Public-Private Partnership Awards. Register to attend here.
• Monday, Dec. 16: A virtual community feedback meeting is scheduled for 6 p.m. to discuss the proposed Clocktower Center project in downtown Santa Cruz. City planning staff and representatives from local developer Workbench will answer questions from the community and hear concerns. Meeting details are here. 
• Wednesday, Dec. 18: Pajaro Valley Business Builders will hold a holiday mixer from 11:30 a.m. to 1 p.m. at El Alteno Restaurant, 323 Main St. in Watsonville. 
• Wednesday, Jan. 15: Santa Cruz Works has rescheduled its eighth annual Titans Awards ceremony, celebrating individuals who have made a significant contribution to Santa Cruz, Monterey or San Benito counties through their innovation, leadership and dedication to making a positive impact. The ceremony is at Kuumbwa Jazz, 320-2 Cedar St., Santa Cruz. Tickets and details here.
• Saturday, Jan. 18 – Monday, Jan. 20: Annual hackathon CruzHacks returns to the UC Santa Cruz campus for its 11th year, bringing together more than 400 aspiring innovators. To apply to participate, go here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

• Years in the making, The Neighbor’s Pub gives LGBTQ+ community a long-awaited bar to belly up to (Lookout)
• Watsonville hospital network outage caused by cyberattack (Lookout)
• Graham Hill housing proposal faces challenges, ownership lawsuit (Santa Cruz Local)