Quick Take

In this week's local business roundup, Jessica M. Pasko looks at how a pillar of the banking community has navigated choppy waters, has the latest on capital infusions for Netleaf and Bastille Networks and more news, notes and numbers.

Each week, we’ll be 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.

Santa Cruz County Bank marks 20th anniversary

Santa Cruz County Bank will mark 20 years in business on Saturday, Feb. 3, and it remains one of the top-ranked community banks in the country. It currently operates eight branches in Santa Cruz, Monterey and Santa Clara counties, with Salinas marking its newest branch. (It opened last year.)

It’s those strong community ties that have been crucial to Santa Cruz County Bank’s success, said CEO Krista Snelling. Unlike a bigger operation, all deposits made at the bank are reinvested back into the three counties where it does business. 

Krista Snelling, president and CEO of Santa Cruz County Bank. Credit: Kevin Painchaud / Lookout Santa Cruz

“If your deposits are with a major bank, who knows where that money is being deployed,” said Snelling. “We only lend here.”

Community banks are financial institutions owned and operated locally, and serving a specific geographic area. They’re generally on the smaller side; the Federal Deposit Insurance Corporation (FDIC) loosely defines them as having less than $10 billion in assets. In other words, these aren’t your Bank of Americas or Wells Fargos of the world. 

According to the latest stats available from the FDIC, the number of community banks nationally dropped from 6,802 to 4,750 between 2012 and 2019, though community banks acquired more than two-thirds of the community banks that closed during the study period. Count Santa Cruz County Bank among those; it merged with Lighthouse Bank in 2019.

The bank currently employs around 150 people, five of whom have been with the company since Day 1, including executive vice president and chief marketing officer Mary Anne Carson, who was hired three months before the bank opened. The bank will honor Carson and four others at its anniversary celebration next month. 

Read more about Santa Cruz County Bank’s trajectory here.

Two Santa Cruz companies net new funding rounds

The Neatleaf Spyder robotic platform hovering over a cultivation facility monitoring plant health.
The Neatleaf Spyder hovering over a cultivation facility monitoring plant health. Credit: Neatleaf

Neatleaf, a provider of technology to help manage indoor cannabis crops and improve yields, has raised $4 million in a new funding round led by AgFunder, an investment group specializing in agriculture tech and food tech. Neatleaf was founded in 2020 and has offices in Santa Cruz and Munich.

The company’s flagship product is the Neatleaf Spyder, which is a fully autonomous robotic platform that helps growers collect data on plant health and growth metrics. The company says its technology can detect plant issues even before the human eye can. Cultivators can use the data captured by the tool to compare growth conditions across facilities, and it enables remote monitoring, saving time and resources.

Meanwhile, Bastille Networks announced it has raised another $44 million for its wireless threat intelligence technology. New investor Goldman Sachs Asset Management led the Series C round, joined by existing investor Bessemer Venture Partners. Series C financing is the fourth stage of startup financing and comes when a company has already been established and wants to scale its operations and growth. It’s often the last phase of venture capital financing. 

Santa Cruz-headquartered Bastille Networks provides software to help large businesses and government organizations secure their wireless devices, including cellular, Bluetooth and WiFi-connected devices like phones, tablets and more. The company launched its first software product in 2019 to detect and locate cellphones via their cellular signal. 

Along with the funding round, Goldman Sachs vice president Zartasha Chaudhry is joining the company’s board of directors.

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

  • Santa Cruz Bicycles CEO steps down: Joe Graney is leaving his position as CEO of Santa Cruz Bicycles after more than 20 years with the company, including eight at the helm. He’ll be replaced by Folkert Lamsvelt, a longtime employee of Pon, which acquired SCB in 2015. Graney plans to spend more time with his family — and riding bikes, according to Garen Becker, brand manager. 
  • Jonathan Rose Companies acquires Westside apartment complex: One of the nation’s leading owners of affordable and mixed-income housing is acquiring the Mission Gardens Apartments in Santa Cruz. The company plans to begin renovations and upgrades immediately. Mission Gardens, which consists of 50 apartments, was first developed in 1981.

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

Looking at the numbers

  • $298: That’s the average amount a California family spends weekly on groceries, according to a new study from the U.S. Census Bureau. That’s higher than any other state in the country. The average weekly rate? Around $270. 
  • Half: That’s the number of renters in the U.S. considered to be “cost burdened” – that is, those who spent more than 30% of their income on rent and utilities in 2022. A new report from Harvard University’s Joint Center for Housing Studies found 22.4 million households fit that category, an increase of two million compared to three years prior.

Save the date

  • Thursday, Feb. 1: The 2023 annual Titans of Tech event honors the individuals who have contributed to the local tech and entrepreneur community from 6 to 8 p.m. at Kuumbwa Jazz Center. Details and tickets available here.
  • Wednesday, Feb. 7: The Monterey Bay Economic Partnership will host a panel titled “Election 2024: Democracy, Hope & Action” moderated by County Supervisor Zach Friend. Details and registration here.
  • Thursday, Feb. 15: The Santa Cruz County Chamber of Commerce will host its economic forum brunch at Hotel Paradox from 9:30 a.m. to noon. Panelists include Visit Santa Cruz County CEO Terence Concannon and Marshall Delk, vice president and senior business banking officer at Santa Cruz County Bank. Registration and details here.
  • Monday, March 4: Apple alum, Watsonville resident and current Canva chief evangelist Guy Kawasaki has a new book out called, “Think Remarkable: 9 Extraordinary Habits That Will Transform Your Life and Illuminate the World.” He’ll be speaking about the book at Bookshop Santa Cruz at 7 p.m. Details and registration for the free event are here.
  • Thursday, April 11: The Santa Cruz County Chamber of Commerce will host its annual event honoring individuals, businesses and organizations for their contributions to the community. “A Night of Stars” takes place from 5:30 to 9 p.m. at the Cocoanut Grove Ballroom at the Santa Cruz Beach Boardwalk. Register here.

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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, NY, where she covered everything from...