Tax & Finance

Startup News Digest 04/28/23

Startup News Digest 04/28/23

The Big Story: Over 65 startups call for uniform federal privacy law. This week, startups are calling on Congress to pass a federal privacy law that takes the startup ecosystem into account. A coalition of startups and support organizations across 26 states sent a letter to Congress urging lawmakers to pass a law that creates uniformity, promotes clarity, limits bad faith litigation, accounts for the resources of startups, and recognizes the interconnectedness of the startup ecosystem. The letter comes as states continue to enact their own unique data privacy laws, and as a Congressional committee explored the problems posed by a sectoral federal privacy landscape in a hearing this week. 

Change to R&D treatment could shoulder startups with hefty tax bill

Change to R&D treatment could shoulder startups with hefty tax bill

For many startups, this year’s taxes will reflect a detrimental change to the research and development (R&D) tax credit thanks to a bill Congress passed in 2017. Without a Congressional fix, small businesses and startups without deep pockets will be less able to weather the cash flow burdens resulting from the change, and some companies may be facing hefty tax bills and will table plans for future R&D.

Startup News Digest 03/17/23

Startup News Digest 03/17/23

The Big Story: SVB fallout puts startup banking needs in the spotlight. In the wake of last week’s collapse of a key startup-facing bank, many in the startup ecosystem are concerned about the banking options and funding landscape for startups across the country.  Last week, California regulators and the Federal Deposit Insurance Corporation (FDIC) shuttered and placed into receivership Silicon Valley Bank (SVB), a mainstay bank for the global startup ecosystem. At the same time, startups scrambled to move funds and were unsure if they’d have the capital to pay their employees this week.

Startup News Digest 02/10/23

Startup News Digest 02/10/23

The Big Story: Hearings cast spotlight on capital access obstacles. Lawmakers heard from entrepreneurs and investors this week as they examined key issues impacting startups’ ability to access capital. The House Financial Services subcommittee held two hearings covering multiple legislative proposals, including efforts to expand the pool of accredited investors and changes to the structure of certain investment funds. Those changes, if enacted, would bring much needed diversity to the startup ecosystem’s investor pool and boost funding opportunities for underrepresented entrepreneurs.  

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.

Changes to Little Discussed Tax Provision Could Slow Startup Financing

Changes to Little Discussed Tax Provision Could Slow Startup Financing

After weeks of discussion, Congress remains at a standstill in the fight to advance both the bipartisan infrastructure bill and the proposed $3.5 trillion reconciliation package, with some legislators concerned about the size and scope of the packages. Revenue raisers in the form of tax increases have centered the reconciliation debate. But another proposed provision — to alter the favorable treatment of qualified small business stock (QSBS) — should be on startups’ radars.

As Policymakers Turn the Heat up on Tech Policy, Startups Need a Seat at the Table

As Policymakers Turn the Heat up on Tech Policy, Startups Need a Seat at the Table

In a new Medium post, Engine announced the launch of our Startup Agenda 2021, which outlines the policy priorities of the U.S. startup community. The Startup Agenda 2021 covers a range of policy issues that include capital access, connectivity, intellectual property, privacy, and more. As we explain in our post below, there are startups in every state and congressional district across the country, and their perspective is especially critical if policymakers hope to craft rules and regulations that boost innovation and competition.

Digital Services Taxes Will Increase Costs for Startups and Users

Digital Services Taxes Will Increase Costs for Startups and Users

As the COVID-19 pandemic continues to cripple economic growth across the globe, the United States Trade Representative (USTR) and policymakers need to be prepared for trading partners seeking to recoup lost revenues through new international taxation measures. Specifically, more nations are considering implementing or have implemented digital services tax (DST) frameworks that would largely discriminatorily target U.S. tech companies to help cover budgetary shortfalls.

Startups Need Balanced Copyright Provisions in the U.S.-U.K. Trade Agreement

Startups Need Balanced Copyright Provisions in the U.S.-U.K. Trade Agreement

As negotiations continue on a trade deal between the United States and the United Kingdom, it is crucial that policymakers push for balanced and commonsense intellectual property frameworks around the world so that startups can grow globally. This July, the U.S. and the U.K. entered the third round of negotiations on an expected trade agreement, following the U.K.’s withdrawal from the European Union earlier this year. While a number of topics are on the table, including critical digital trade provisions, the intellectual property provisions will prove essential to U.S. startups.

Startups Applaud Senate Committee for Changes to Tax Bill

Startups Applaud Senate Committee for Changes to Tax Bill

After more than 600 startups, investors, and innovators from across the country wrote to lawmakers this week, warning about the devastating consequences of a proposed tax change that could hurt small companies competing for talent, Engine applauds the Senate Committee on Finance for recent modifications to the Senate Tax Plan.

Engine Statement on the Support Our Startups Act

Engine Statement on the Support Our Startups Act

"Engine is proud to support the Support Our Startups Act, a bill that would reduce tax burdens on entrepreneurs in their first year of business. The bill from Sen. Tammy Baldwin (D-Wisc.) would help startups hit the ground running by increasing they amount they can write off as federal tax deductions in their first year.

Engine Welcomes House Passage of the HALOS Act

Engine Welcomes House Passage of the HALOS Act

On Tuesday, the U.S. House of Representatives passed the Helping Angels Lead Our Startups (HALOS) Act by a vote of 344 to 73, an even wider margin of support than when the bill passed the House during the previous Congress. Engine applauds the House passage of the bill, which would clarify regulatory ambiguities around general solicitation to ensure that startups aren't unintentionally running afoul of securities laws when participating in demo days and pitch competitions

2016 Year in Review: Capital Access + Tax

2016 Year in Review: Capital Access + Tax

2016 brought with it many positive developments for startups in terms of capital access and tax policy. Investment crowdfunding finally went live, a number of bills to facilitate capital formation passed the House, and the startup community galvanized around a tax bill that would make it easier for startup employees to exercise their stock options. While many of these policy changes hang in limbo going into 2017, we believe that next year holds significant promise for improvements to the tax and financing policy landscape for startups.