Access to Capital

Startup News Digest 10/28/22

Startup News Digest 10/28/22

The Big Story: Engine releases report on the role of acquisitions in the startup ecosystem. Engine, in partnership with Startup Genome, released a new report this week examining the role exits play in the startup ecosystem, highlighting the importance of exits via acquisition, and emphasizing the experience of founders that have had their companies acquired. The report—“Exits, Investment, and the Startup Experience: the role of acquisitions in the startup ecosystem”—should equip policymakers with a solid foundation from which they can advance pro-innovative policies that startups need to thrive.

Engine Releases Report on the Role of Acquisitions in the Startup Ecosystem

Engine Releases Report on the Role of Acquisitions in the Startup Ecosystem

The U.S. startup ecosystem is defined by dynamism. Startups are constantly being founded, earning investment, growing, exiting, and—yes—failing in cities and towns all across the country. Startup exits and investment are two intimately related and important drivers of this dynamism critical to economic growth and innovation in the startup ecosystem. Startup exits—both those that are profitable and those that are not—promote the building of knowledge, recycling of talent, and flow of capital through the ecosystem. Each of those components are key to building new startups and stimulating the investment needed to grow them to scale.

Startup News Digest 10/21/22

Startup News Digest 10/21/22

The Big Story: Judge strikes down Maryland tax on digital advertising. A Maryland judge struck down the U.S.’ first tax on digital advertising, which faced vocal challenges including from technology companies and would have resulted in taxed companies passing down its cost to customers, including startups. In a ruling on Monday, the court found the tax, implemented by Maryland lawmakers to raise revenue, unconstitutional and a violation of the Internet Tax Freedom Act.

Startup News Digest 10/14/22

Startup News Digest 10/14/22

The Big Story: Proposed independent contractor rule could make hiring harder for startups. This week the Department of Labor (DoL) issued a proposed rule that is likely to impact how early-stage startups build their teams. The DoL’s proposed rule on worker classification would limit who can be considered an independent contractor and comes shortly after the Federal Trade Commission (FTC) announced similar enforcement priorities for the gig economy. As we shared in a recent blog post, the rule could limit startup flexibility in their hiring decisions, which could particularly impact growing companies with lean budgets.

Startup News Digest 09/30/22

Startup News Digest 09/30/22

The Big Story: Network access fee debates heat up worldwide. This week, European telecom companies redoubled their push to make large Internet companies pay based on the traffic they generate, a policy that would undermine net neutrality principles and negatively impact the broader Internet ecosystem. The push comes after months of agitating by Internet service providers (ISPs) for the payments, called network access fees, and amid a growing number of jurisdictions that have taken steps toward such policies, including South Korea.

Startup News Digest 09/16/22

Startup News Digest 09/16/22

The Big Story: Startups are collateral as policymakers talk past each other on tech policy. Over the last week we’ve seen several tech policy conversations where contradictory, party-line talking points are on full display that—if taken seriously as policy ideas on everything from privacy, to national security, to content moderation, and more—would make life much harder for thousands of startups across the country. Lawmakers’ competing and mutually exclusive visions for the Internet doesn’t stop them from threatening policy changes that would alter the way tech companies, including startups, have to operate, however, as we highlight in a new blog post.

Startup News Digest 09/09/22

Startup News Digest 09/09/22

The Big Story: SBIR reauthorization remains at a standstill. Startups await the fate of the Small Business Innovation Research (SBIR) program as lawmakers continue to deliberate its reauthorization ahead of its fast-approaching September 30 expiration. With fierce support from advocates and innovators—who recognize the positive impact the program has on the innovation ecosystem—alike, this critical funding stream for R&D and commercialization risks drying up without congressional action.

Startup News Digest 08/26/22

Startup News Digest 08/26/22

The Big Story: Biden administration unveils student loan relief plan. After months of deliberation, President Joe Biden announced a three-part plan aimed at easing student loan debt, a move that could lower barriers for entrepreneurship in the U.S. The announcement—fulfilling a 2020 campaign promise—will cancel up to $10,000 in federal student debt for many borrowers and up to $20,000 for Pell Grant recipients for those that earn less than $125,000 per year or $250,000 for households. It also includes steps to cap monthly payments, improve the forgiveness programs for borrowers who work in public service, and increase accountability around skyrocketing college costs.

Startup News Digest 08/19/22

Startup News Digest 08/19/22

Startup Advocacy Week and Congressional Startup Day underscore the importance of pro-innovation policy. Startups are key drivers of innovation, they spur job growth, and invigorate the U.S. economy. We at Engine are lucky to work with a vast network of startups across the country who know, first-hand, how essential pro-innovation policies are to their success—and those policies can only become a reality when policymakers invite startup founders to the table to listen to their experiences and hear about their needs. Those very conversations took place during this Startup Advocacy Week and Congressional Startup Day.

Engine Releases Policy Roadmap for Supporting Startups Everywhere

Engine Releases Policy Roadmap for Supporting Startups Everywhere

Today, Engine issued a paper focused on the policy insights needed—and the legislative actions required—to adequately support the expanse of the startup ecosystem, and to grow the innovation economy. We hope this paper can serve as a resource for policymakers considering a wide range of policy issues that impact early-stage companies across the country.

Startup News Digest 08/12/22

Startup News Digest 08/12/22

The Big Story: Patent policy conversations need startup voices. Policymakers are continuing to evaluate several aspects of the patent system—one of many areas where policymakers need to account for startup voices and experiences to craft policy that promotes their success. This summer, IP subcommittees in both the Senate and the House held hearings about the Patent Trial and Appeal Board (PTAB)—a venue within the Patent and Trademark Office (PTO) that can take a second look at likely-invalid patents and weed out those that should not have issued.

Startup News Digest 08/05/22

Startup News Digest 08/05/22

The Big Story: Immigration reform is key for innovation, competitiveness. Pressure is building on lawmakers to address flaws in the country’s immigration system that keep the tech sector—including startups—from having the talent it needs. Following the recent passage of a sweeping competitiveness package, the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) and Science Act, members of the tech industry are calling to attention the need for immigration reform to keep the sector competitive.

Startup News Digest 07/29/22

Startup News Digest 07/29/22

The Big Story: New net neutrality bill would benefit startups. Lawmakers are restarting the stalled conversation around net neutrality, the idea that Internet service providers (ISPs) shouldn’t be able to charge websites and online services—including those run by startups—for better, faster access to their users. This week, Sen. Ed Markey (D-MA) and Sen. Ron Wyden (D-OR), introduced the Net Neutrality and Broadband Justice Act—a bill that would reclassify broadband to give the Federal Communications Commission (FCC) authority to regulate ISPs, including on net neutrality.

Startup News Digest 07/22/22

Startup News Digest 07/22/22

The Big Story: CHIPS Act takes precedence in USICA developments. The Senate is moving forward with pared-down competitiveness legislation following Tuesday’s procedural vote, which cleared a key procedural hurdle. While the narrower package largely focuses on subsidies for the semiconductor industry, it is also expected to include some of the larger bill’s provisions to increase funding to broadly support U.S. innovation. Senators expect to tee up final passage next week, which would then send the bill to the House for consideration.

Startup News Digest 07/15/22

Startup News Digest 07/15/22

The Big Story: Hope fades for pro-startup provisions in U.S. competitiveness package. After months of negotiations, Congress has hit another roadblock to advancing a compromise version of two bills aimed at boosting U.S. competitiveness: the Senate’s United States Innovation and Competition Act (USICA) and the House’s America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act.

Startup News Digest 07/08/22

Startup News Digest 07/08/22

The Big Story: Copyright Office concludes ancillary copyright protections are not warranted. In a recent report, the U.S. Copyright Office explained why it does not recommend expanding or adopting new copyright-like protections for press publishers. The Copyright Office’s study was rooted in concerns about supporting vitally important local news media, but it focused specifically on whether policymakers should extend copyright-like protections (also known as “ancillary copyright”) to sharing hyperlinks and quoting news headlines or snippets of articles. Last week’s report concluded that it is not clear any new copyright-like protections would solve problems facing press publishers, while those sorts of copyright expansions would have “critical policy and Constitutional dimensions.”

Startup News Digest 06/24/22

Startup News Digest 06/24/22

The Big Story: Patent policy discussions resurface in D.C. this week. This was an active week for patent policy conversations in D.C., with the Senate, House, and Patent and Trademark Office (PTO) all weighing in. Procedures for reviewing low-quality patents took center stage, with many focused on the role the Patent Trial and Appeal Board (PTAB) plays in the startup and small business ecosystems. It is imperative that policymakers who want to understand the full impact of the PTAB—particularly in regards to U.S. startups—ensure startup voices have an equal seat at the table when the topics are discussed.

Startup News Digest 06/17/22

Startup News Digest 06/17/22

The Big Story: Possible federal privacy framework on the horizon. After years of discussions and negotiations, lawmakers are taking serious steps towards creating a much-needed federal privacy framework that would create consistency for startups and protections for consumers. Earlier this week, the House Energy and Commerce subcommittee on Consumer Protection and Commerce held a hearing discussing the American Data Privacy and Protection Act (ADPPA)—a draft bipartisan, bicameral bill that is the first meaningful step towards a federal privacy law following years of negotiations. Subcommittee Chair Jan Schakowsky (D-Ill.) reportedly said this week that the subcommittee will consider and vote on the bill during a markup next week.

Startup News Digest 06/10/22

Startup News Digest 06/10/22

The Big Story: Patent Quality Week examines impact, reach, importance of balanced patent system. Today we close out our second annual Patent Quality Week where we—alongside startup leaders, experts, and industries across the country—set out to demystify the complex patent system and highlight the important ways in which it impacts every person and business in the U.S. With a better understanding of how the system operates, and all the ways we encounter it, we can chart a path to ensure patent policy works for every entrepreneur, innovator, and individual. And we can make sure everyone has a voice in the system.

Startup News Digest 06/03/22

Startup News Digest 06/03/22

The Big Story: JOBS Act 4.0 could create more opportunities for startups. Policymakers are considering a sweeping package of proposals that could increase opportunities for startups to access capital and reduce regulatory barriers that make existing opportunities difficult. In comments to the Republican leadership of the Senate Committee on Banking, Housing, and Urban Affairs, Engine explained how the Jumpstart Our Business Startups (JOBS) Act 4.0—as well as potential modifications and additions to the bill—could incentivize investment, open up more avenues for would-be investors, and advance equitable access the startup ecosystem.