Bay Area technology entrepreneur Ethan Agarwal said he will run for governor of California in 2026, becoming the first major newcomer to enter what is expected to be a crowded Democratic field. Agarwal, best known for founding fintech firm The Coterie and fitness-app maker Aaptiv, told Axios he wants to tackle the state’s high cost of living and a business climate he says is driving residents and companies away. The 42-year-old has already scheduled fundraising events backed by DoorDash co-founder Stanley Tang and Y Combinator president Garry Tan. Agarwal’s announcement comes as political speculation intensifies around the race to succeed Governor Gavin Newsom, who is barred from seeking a third term when his tenure ends in January 2027. Politico reported that U.S. Senator Alex Padilla is not ruling out a bid; a person familiar with his thinking said the former California secretary of state is “actively considering” joining the contest. With Vice-President Kamala Harris saying last month she will not run, no clear front-runner has emerged. A Berkeley IGS survey released last week found 38 percent of voters undecided. Among those expressing a preference, former congresswoman Katie Porter led with 17 percent support, followed by Republican Riverside County Sheriff Chad Bianco at 10 percent and former U.S. health secretary Xavier Becerra at 9 percent. California’s non-partisan primary is scheduled for June 2026, leaving candidates roughly ten months to build name recognition and raise money before ballots are printed. Agarwal’s business-oriented pitch and Padilla’s statewide profile underscore the ideological and geographic diversity that could shape the race as Democrats seek to hold the governorship for a fifth consecutive term.