Quick Take

In this week's survey of local business, Jessica M. Pasko reports on the rollout of a new AI tool for Santa Cruz-based fintech company Paystand, notes a court date for a former executive of Scotts Valley's Ambient Photonics and runs down other numbers, names and dates to know.

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.

Local fintech company launches new AI tool

Santa Cruz-based Paystand is growing its artificial intelligence-enabled software portfolio with a new set of tools that bring what are known as AI agents to financial processes including accounts receivable, spend management and reporting. 

Paystand, founded in 2014 with a goal of becoming like the Venmo of business payments, enables companies to do things like pay vendors directly without having to mail them a paper check or automate payments for recurring bills. This helps speed up payments as neither payee nor recipient has to wait for a bank to process it, which can often add additional time and/or fees.

Now the company, which moved from Scotts Valley to downtown Santa Cruz almost two years ago, is working to expand its services to help financial professionals with other functions. With its new agentic finance offering, AI agents take on some of the manual work finance teams do, and run on Paystand’s network.

Former executive of now-defunct local tech company due in court for allegations he embezzled thousands of dollars 

A former executive of Ambient Photonics, a Scotts Valley-headquartered solar cell technology company that shuttered late last year, is due in court this week to set a date for a preliminary hearing. According to a criminal complaint filed in Santa Cruz County Superior Court, Nishith “Nick” Mehta, faces multiple felony charges for embezzlement and identity theft. Mehta has pleaded not guilty to the charges.

According to the criminal complaint, Mehta is accused of using his position with the company to “unlawfully secrete [company] property with fraudulent intent” accounting for nearly $4 million. He’s also accused of committing multiple incidents of identity theft, using personal information connected to a glass supplier to transfer money into his personal accounts. At the time, Mehta served as the company’s controller, managing financial operations and accounting functions, according to records. The crimes are alleged to have occurred between January 2023 and March 2025.

On Thursday, a court date is set to schedule a preliminary hearing in the case, the process in which a judge will determine whether there is sufficient evidence for the case to proceed to trial. 

ICYMI: Barilla buys Goodles, the Santa Cruz mac-and-cheese brand making ‘noodles, gooder’

Barilla buys Goodles Gooder Foods
Santa Cruz-based Gooder Foods, the maker of Goodles, will be purchased by Barilla, the world’s largest pasta producer, the company announced Thursday. Credit: Via Gooder Foods

An international pasta giant plans to acquire a Santa Cruz-based macaroni-and-cheese company with a mission to make a better, healthier product. 

Last week, it was announced that Barilla would purchase Gooder Foods, the maker of Goodles. Founded in 2020 by CEO Jen Zeszut and partners, Goodles took aim at capturing the attention of health-conscious customers. It initially launched with four flavors that featured a noodle packed with protein and other nutrients, with bright, colorful packaging to boot. Now, the products are carried by national retailers like Whole Foods Market and Target.

The company will remain headquartered in Santa Cruz and continue to operate independently after the sale is completed. Financial terms of the deal weren’t disclosed, but as the Wall Street Journal reported, Goodles was valued at $88 million after a funding round in 2023.

Read Lily Belli’s full story here.

Ch-ch-changes

  • New boba shop opens in downtown Santa Cruz: UMe Tea celebrated its grand opening last weekend at its new shop at 111 Locust St. The chain was founded in California in 2019. Current operating hours at the new shop are Monday through Sunday, noon to 8 p.m.
  • Spirit Halloween to return downtown this month: Seasonal retailer Spirit Halloween will set up shop at the former Palace Arts on Pacific Avenue starting later this month. It’s the national chain’s second temporary location in the county, in addition to its store that opens annually in the Capitola Mall.
  • Hotel occupancy, short-term rentals experience strong July showing: Local hotels saw great numbers in July, with hotel occupancy at 78.4%, up from 76.5% in June. Short-term rentals saw higher month-over-month growth, with occupancy rates rising from 69.5% in June to 78.7% in July, according to the latest statistics from Visit Santa Cruz County, the county’s tourism marketing organization. Average daily room rates for hotels reached $253.70 in July (up from $246 in June), and for short-term rentals, that rate was $491.

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

Looking at the numbers

Ali Luna, a musician and former restaurant owner, opened Luna’s Borikén Bites in May in downtown Santa Cruz. Credit: Kevin Painchaud / Lookout Santa Cruz
  • 13: That’s how many new businesses have opened in downtown Santa Cruz so far in 2026, according to the Downtown Association. That includes Anthropologie, The Alley Oop, Palmetto Superfoods and two new additions to Abbott Square – India Gourmet and Luna’s Borikén Bites – among others. 
  • 5.3%: That was the unemployment rate for Santa Cruz County in July, holding steady from the prior month. It marked a drop from 5.9% in July 2025 and matched the state unemployment rate. Between June and July, the county gained 1,000 jobs in the manufacturing, farm and trade/transportation/utilities space, but lost 1,500 in the government sector, according to the state Employment Development Department.
  • 313: That’s the average number of commercial fishing vessels that landed their catch at Monterey Bay ports (Moss Landing, Monterey and Santa Cruz) between 2010 and 2024, according to a new study from the Monterey Bay Fisheries Trust. In 1981, that number was around 1,100.

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Save the date

  • Wednesday, Sept. 9: Santa Cruz Works will hold its next New Tech event at RiverRow apartments, 444 Front St., Santa Cruz, from 6 to 8 p.m. Speakers include David Conway, founder of Purcell, a company working to transform food packaging, and Visual Endeavors founder Aron Altmark, among others. Tickets and additional speaking information is available here.
  • Thursday, Sept. 10: The Santa Cruz Area Chamber of Commerce will sponsor a new workshop with Sam Kabert, a workforce emotional fitness and organizational resilience expert who helps leaders manage stress and anxiety to lead under pressure. The workshop, titled “Reprogram for Success,” will be held at the Santa Cruz Veterans Memorial Building, 846 Front St., Santa Cruz, from 11:30 a.m. to 1:30 p.m. More details are here.
  • Thursday, Sept. 10: The Monterey Bay Economic Partnership will host AI and the Future of Our Region, a half-day event that will bring together experts from organizations like Stanford Law, GoFundMe and OpenAI to discuss the impacts of artificial intelligence on the Monterey Bay economy. The event will be held at Cal State Monterey Bay’s University Center in Marina, from 7:30 a.m. to 1:30 p.m. Register here.
  • Thursday, Sept. 10: Amoureuse Lingerie will host a grand opening and ribbon-cutting for its new store in Aptos. The boutique operated on Soquel Avenue in Santa Cruz for years, but closed that store in February and reopened in Aptos this summer. The event starts at 5 p.m. with light refreshments at 136 Aptos Village Way, Suite 200.
  • Monday, Sept. 14: The Santa Cruz Area Chamber of Commerce will host a ribbon-cutting for the new Coastal Community Justice Center at the Walnut Avenue Family & Women’s Center, 5300 Soquel Ave., Suite 105, in Santa Cruz. The event takes place from noon to 1:30 p.m. Register here.
  • Thursday, Sept. 17: The Aptos Chamber of Commerce’s September members luncheon will feature California Assemblymember Dawn Addis. The event, held from 11:30 a.m. to 1 p.m. at Seascape Golf Club, 610 Clubhouse Dr., Aptos, is $35 for chamber members and $40 for non-members. Tickets can be purchased here.
  • Wednesday, Sept. 23: The Aptos Chamber will hold its annual community showcase and artisan market at Seascape Golf Club in Aptos from 4 to 7 p.m. The event will also feature booths providing storm preparedness tips for businesses. Business owners interested in participating can sign up here.
  • Wednesday, Sept. 30: The next Women in Business mixer is slated for 5 to 7 p.m. at Grey Bears’ facility at 2710 Chanticleer Ave. in Live Oak. Anyone who brings a can of food to donate will be entered in a raffle. Register here.
  • Thursday, Oct. 8: The Santa Cruz Area Chamber of Commerce will host its next Women in Business Summit from 9 a.m. to 3 p.m. at Mission Springs, 1050 Lockhart Gulch Road, Scotts Valley. Registration is here.
  • Saturday, Oct. 17: The Startup World Cup, a global competition and conference for startups, is coming to Santa Cruz. Those interested in participating must apply to be selected for a chance to pitch their company and win an opportunity to represent Santa Cruz at the national competition in San Francisco. The event will be held at The Catalyst nightclub in downtown Santa Cruz from 9 a.m. to 5 p.m. To apply or purchase tickets, go here. Those wanting to pitch their company must apply by Sept. 17.

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

Business news worth reading

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Jessica M. Pasko has been writing professionally for almost two decades. She cut her teeth in journalism as a reporter for the Associated Press in her native Albany, New York, where she covered everything...