Victoria Stafford, a third-year student at UC Berkeley, was set to begin working at Yelp in June as a sales intern — the only internship she applied to. And then it was canceled because of the COVID-19 pandemic.
“When I first read the cancellation email, I didn’t believe it. I refreshed my inbox; I rubbed my eyes as if I were waking up from a dream. It was clear that COVID-19 was becoming a mounting concern, but it never occurred to me that my internship was in jeopardy,” Stafford said.
Internship cancellations hurt more than just summer plans. The programs are often pipelines into future jobs and access to valuable work experience.
For Stafford, a business and domestic environmental major from a small town in rural Utah, there are very few business and policy-related opportunities.
“I ask that employers do everything they can to make their internship opportunities more accessible in these upcoming months, and come next year and the year after, show understanding and compassion for employment gaps,” she said.
Dozens of other students from across the country flooded my inbox, sharing stories about the impact on internship cancellations on their paths toward employment.
One student turned down offers and interviews from Google, JP Morgan and Goldman Sachs to pursue a software engineering position. The offer they accepted was yanked weeks later. Another student lost their chance at a post-graduate job at their dream company because their offer was revoked. One only had an offer in their hands for three weeks before it was rescinded.
A number of companies across the country, including Glassdoor, StubHub, Funding Circle, Yelp, Checkr and even the National Institutes of Health, have canceled their internship programs due to COVID-19, TechCrunch has learned. The cancellations, which will likely increase in the days and weeks to come, are unsurprising, due to the uncertainty the pandemic has caused. Still, fewer internships jeopardize the postgraduate job prospects for thousands of college students, and, beyond that, limit the talent pipeline on which tech companies so often are dependent.
There’s even a Twitter account that tracks the status of 2020 internships.
We have been receiving numerous DMs asking for status of individual companies. If you would like to receive notifications for a particular company you are interested in, please fill this form.https://t.co/7heMiOEGDo
— Summer Internships 2020 (@hiring2020) March 25, 2020
Like the concerts, conferences, universities and schools, these cancellations are because of the COVID-19 pandemic ravaging the world right now. While some companies cited health concerns, others pointed to the uncertain economic landscape.
In a statement, job search and review platform Glassdoor said the rapid spread of COVID-19 has grown “beyond a health concern into an economic one.” As a result, it has “decided to pause hiring and reprioritize some initiatives internally to ensure we are well positioned for both the downturn and recovery.”
A Funding Circle spokesperson confirmed that the company halted its internship program, “given the travel and relocation” for the upcoming intern cohort to San Francisco. In an email obtained by TechCrunch, the National Institute of Health canceled its prestigious internship — which has a 20% acceptance rate — to “stop community spread of Sars-Cov-2 through social distancing.”
“Therefore, hosting 1000+ early career scientists who deserve close supervision and intense mentoring is not appropriate at this time,” the email reads. “The cancellation of the NIH SIP applies to all students, whether you were planning to volunteer or were offered a fellowship position. It also applies, even if you were planning to do computational work that could be done remotely.”
In a statement to TechCrunch, NIH said its program has been reduced to “maintenance-only and mission critical (including research on COVID-19) operation due to spread of the novel coronavirus.”
“Regrettably, as part of this effort to keep people safe and limit the spread through social/physical distancing, it has been necessary to cancel the Summer Internship Program for young trainees at NIH for 2020, but those students already selected for the program will be given priority for summer internship positions in 2021.”
Checkr, based in Denver and San Francisco, put its summer internship program on hold due to “the challenges of onboarding interns while everyone is remote.”
Google has rescinded some internship offers for its UX design internship, per a LinkedIn post. After the publication of this article, Google announced that it is making its internship program virtual this year, but it is unclear whether or not that impacts interns who have already had their internships rescinded.
While a number of tech companies have put their internship programs on hold, others are piecing together experimental remote internship programs for their students.
Quizlet is preparing for its annual internship program and is preparing a “contingency plan for an internship that will be virtual if necessary.” Uber has formed a dedicated team to start working on an online internship program “should the situation remain unchanged.” Lyft and Twitter, depending on the state of the pandemic, plan to onboard San Francisco interns virtually.
The pandemic has certainly put remote internship management services in high demand. That said, a handful of startups have been working on the sector for years.
San Francisco-based Symba, which helps companies offer virtual internship programs, was founded in 2017. Co-founder Ahva Sadeghi said that last week more than 100 companies and 1,000 students reached out to Symba in regards to internship cancellations because of COVID-19.
“The companies we reached out to in the beginning who said, ‘This is great but not top of mind for us,’ are now calling us back asking us to jump on the phone today or tomorrow to get something implemented,” Sadeghi said in a phone call. “We thought we didn’t have product-market fit and now the conversation has completely changed.”
Sadeghi noted how internships assume a certain level of privilege in applicants, prioritizing those who can afford to move to a highly populated city with little to no pay. A remote internship, even in a time of health and prosperity, is important, she said.
“If you can log on to a laptop, you can access an opportunity,” she said. Another program, Chicago-based Sage Corps, founded in 2013, is pushing companies to sponsor the students impacted by internship cancellations. If sponsored, students can still participate in career growth development workshops virtually from Sage Corps, at $1,250 per student.
Thomas Brunskill, the founder of InsideSherpa, which helps companies host virtual internships, said he’s seen nearly 1,000 students a day sign up for the platform, from Northern Italy, to South-East Asia, to the United States. He started the company, which went through Y Combinator last year, to give students courses and online simulations of jobs through the comfort of their own homes.
He said his customers are mainly larger companies that employ upwards of 1,000 students, like JPMorgan Chase, Deloitte, Citi, BCG and GE.
On one end, Brunskill said the interest makes sense, as larger companies have to meet significant hiring demands. Per the National Association of Colleges and Employers, 70.4% of interns get return offers from the company where they intern.
On the other end, this concentration further showcases how smaller businesses will be impacted disproportionately from this pandemic. Many will freeze hiring altogether.
“Obviously [this] matters for students, but it also matters for companies who are now going to have this blackhole of talent,” Brunskill said. “Nobody wins in that situation — companies end up with less work-ready students who don’t really know what they’re getting into and students end up in full-time jobs that might not be aligned to their interest or skills because they never had an opportunity to test it out first.”
While layoffs are devastating, and obviously well upon us in the tech world, internship cancellations offer a harsh window into how COVID-19 doesn’t just impact our current workforce, but our future one as well.
Update 3/25/2020 3:35 p.m. PST: After asking Google on Monday to comment on internship cancellations it denied any changes. After TC published this article, however, Google provided a statement that it will moving its program to a “virtual model” this summer. The story has been updated to reflect this development.
A year ago, he took the helm of Google’s cloud operations — which includes G Suite — and set about giving the organization a sharpened focus by expanding on a strategy his predecessor Diane Greene first set during her tenure.
It’s no secret that Kurian, with his background at Oracle, immediately put the entire Google Cloud operation on a course to focus on enterprise customers, with an emphasis on a number of key verticals.
So it’s no surprise, then, that the first highlight Kurian cited is that Google Cloud expanded its feature lineup with important capabilities that were previously missing. “When we look at what we’ve done this last year, first is maturing our products,” he said. “We’ve opened up many markets for our products because we’ve matured the core capabilities in the product. We’ve added things like compliance requirements. We’ve added support for many enterprise things like SAP and VMware and Oracle and a number of enterprise solutions.” Thanks to this, he stressed, analyst firms like Gartner and Forrester now rank Google Cloud “neck-and-neck with the other two players that everybody compares us to.”
If Google Cloud’s previous record made anything clear, though, it’s that technical know-how and great features aren’t enough. One of the first actions Kurian took was to expand the company’s sales team to resemble an organization that looked a bit more like that of a traditional enterprise company. “We were able to specialize our sales teams by industry — added talent into the sales organization and scaled up the sales force very, very significantly — and I think you’re starting to see those results. Not only did we increase the number of people, but our productivity improved as well as the sales organization, so all of that was good.”
He also cited Google’s partner business as a reason for its overall growth. Partner influence revenue increased by about 200% in 2019, and its partners brought in 13 times more new customers in 2019 when compared to the previous year.
This is it, startup fans. It’s your very last chance to scoop up the few remaining tickets to our 3rd Annual Winter Party at Galvanize — the best Silicon Valley startup soiree, bar none. If you want to join this fun gathering of 1,000+ like-minded startuppers on February 7, you’d best act quickly. Exhibitor tables have long sold out. Don’t get left behind — buy your ticket now before they’re gone for good.
A big shout out to our sponsors Calgary, Uncork Capital, Brex, Galvanize and Snap Fiesta for helping us throw this bash. You’re in for an unabashed night of fabulous food, delicious drinks and festive foolishness. Time to loosen your collar and network in a relaxed setting with some of the Valley’s brightest entrepreneurs, founders and investors — attendees span the entire startup ecosystem.
You never know when a casual conversation could develop into a serious opportunity, and TechCrunch parties have a strong track record for making startup magic.
Here are just five of the many companies with whom you can meet and greet — talk about an opportunity to connect: Deloitte, Perkins Coie, Ceres Robotics, Samsung, Okta, Facebook. And while you’re at it, don’t miss meeting the 10 outstanding startups that will exhibit their tech and talent. More connections equal more opportunity.
Here’s the essential 411 on the party details:
As always, you’ll find plenty of fun. Bust out your karaoke skills, play games, and plenty of photo ops will let you light up your Insta. You might even win one of the many door prizes, including TC swag and free passes to Disrupt SF in September 2020.
Mike Rothenberg, the once high-flying VC bent on bringing the party to Silicon Valley, must now pay a whopping $31.4 million to settle a California federal court ruling in favor of Security and Exchange Commission allegations.
TechCrunch deemed Rothenberg a “virtual Gatsby” back in 2016, when we first broke the news about the downfall of his venture capital firm, Rothenberg Ventures. It seemed he took it as a compliment, changing his Instagram handle to @virtualgatsby. Indeed, the name seemed appropriate for a man who seemingly lived a party-boy lifestyle and spent lavishly to woo startup founders — including going on Napa Valley wine tours, holding an annual “founder field day” where he rented the whole San Francisco Giants’ baseball stadium and spending unsparingly to executive produce a video for Coldplay.
But the party life came to a halt when top leadership jumped ship and the SEC started looking into the books. The SEC formally charged Rothenberg in August of 2018 for misappropriating millions of dollars of his investors’ capital and funneling that money into his own bank account. Rothenberg settled with the SEC at the time and, as part of the settlement, was barred from the brokerage and investment advisory business for five years.
Rothenberg was later caught up in several lawsuits, including one from Transcend VR for fraud and breach of contract, which ended in a settlement. Another suit between Rothenberg and his former CFO, David Haase, ended with Rothenberg being ordered to pay $166,000 in damages.
But there was more to come from the SEC, following a forensic audit in partnership with the firm Deloitte showing the misuse or misappropriation of $18.8 million in investor funding. Under that examination, Deloitte showed Rothenberg had used the money either personally, to float his flashy lifestyle, or for other extravagances, such as building a race car team and a virtual reality studio. Rothenberg has now been ordered to pay back the $18.8 million he took from investors, another $9 million in civil penalties, plus $3.7 million in interest.
Neither the SEC nor Rothenberg have responded for comment. It’s also important to note none of the charges so far have been criminal, but were handled in civil court, as the SEC does not handle criminal cases.
Through all of it, Rothenberg never admitted any guilt for his actions and it is important to note that, because of this he will be able to practice again after the bar is lifted in five years. He’s also made some decent early investments in startups like Robinhood, and many investor sources TechCrunch spoke to over the years seemed quite loyal to him as an investor, despite the charges, employee mass exodus and fund implosion that followed.
And it seems this saga is not over yet. Rothenberg told MarketWatch in a recent interview that he thought the ruling was, “historically excessive and vindictively punitive,” that he planned to appeal it and would be suing Silicon Valley Bank, which Rothenberg used to funnel several investments, over the matter.
Rothenberg Ventures already filed suit against Silicon Valley Bank in August of 2018, the same day the SEC filed formal charges against Rothenberg himself. In that suit, Rothenberg alleged negligence, fraud and deceit on the part of the bank and sought a trial before jury. Silicon Valley Bank said it would defend against the case at the time.
We’ve reached out to Silicon Valley Bank and are waiting to hear back. The real question is, if Rothenberg were to come back to investing in Silicon Valley, would anyone still trust him?