Startups need less congressional chaos and more solutions
Startup News Digest 08/18/23
Startup News Digest 07/21/23
The Big Story: Policymakers threaten successful startup exits, investment. This week, federal agencies released new draft guidelines for merger enforcement that could reduce the number of acquisitions and negatively impact the ability of startups to successfully exit. The new draft guidelines come amid a parallel effort to revise the filing process for larger transactions, adding costs and new burdens to those acquisitions. Taken together, the agencies’ actions are designed to limit acquisitions, which are critical to investment and successful exits in the startup ecosystem.
Paying twice? The persistent proposal that could upend the Internet and increase startup costs
Last month, a majority of the European Parliament voted in favor of a resolution contemplating a policy framework that could diminish startup competitiveness and endanger the open Internet. The vote is the latest in a long-running effort by telecom companies to force websites and apps to pay them based on the traffic they generate. That model, sometimes called “sender pays,” is gaining popularity with policymakers throughout the world—including in the U.S.—threatening net neutrality principles and the competitiveness of U.S. startups.
Startup News Digest 07/14/23
The Big Story: EU, U.S. implement framework to restore transatlantic data transfers. The European Commission this week adopted a needed decision to implement the EU-U.S. Data Privacy Framework, bringing certainty back to transatlantic data transfers and lowering barriers for startups. The long-awaited agreement ends years of uncertainty surrounding data flows needed for U.S. startups to serve EU customers thanks to the invalidation of an earlier transfer agreement called Privacy Shield. The new framework is a welcome step that will bolster the competitiveness of U.S. startups looking to serve the EU market.
Startup News Digest 06/30/23
The Big Story: Supreme Court strikes down Biden student loan relief plan. The Supreme Court this week struck down President Biden’s student loan relief plan that would have canceled up to $20,000 in student debt for qualified borrowers. The decision, while not unexpected, is a blow to the millions of Americans riddled with student debt, and individuals whose debt acts as a barrier to pursuing entrepreneurship.
Startup News Digest 06/02/23
The Big Story: House passes capital formation bills. The House passed several bills this week to improve capital access for startups, including by providing educational resources on capital raising options for underrepresented small businesses and another to broaden the pool of potential startup investors.
Startup News Digest 05/26/23
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 03/10/23
The Big Story: Broad, diverse coalition underscores importance of Section 230. This week, Engine joined more than three dozen public interest organizations, academics, free expression advocates, industry associations, and companies in a letter highlighting the value of Section 230 in enabling users, community building, and expression online. The letter was sent to members of the Senate Judiciary Subcommittee on Privacy, Technology, and the Law ahead of a hearing Wednesday on Section 230, a foundational Internet law that enables platforms of all sizes to host and moderate user content without risking ruinous liability.
Startup News Digest 03/03/23
The Big Story: Congress looks to build momentum on privacy legislation. This week, a congressional subcommittee held a hearing exploring federal data privacy legislation, a top priority for startups. The hearing comes amid the emerging mosaic of state privacy laws that can create confusion and duplicative costs for startups. The hearing, held by the House Energy and Commerce subcommittee on Innovation, Data, and Commerce, focused on building upon legislation that passed through the committee last Congress and explored several issues important to startups in the privacy debate, including whether to preempt state laws, whether to allow private rights of action, and how to properly scope requirements for small businesses and startups.
Startup News Digest 02/17/23
The Big Story: Section 230, privacy, encryption in crosshairs at kids safety hearing. The Senate Judiciary Committee held a hearing Tuesday on protecting children’s safety online, where lawmakers suggested changes to several issues important to startups, like Section 230, data privacy, and encryption. The wide-ranging proposals appear conceived with the largest tech companies in mind, but they would affect all Internet companies, especially startups. The hearing comes amid efforts from policymakers at all levels of government aimed at safeguarding young Internet users that could carry unintended negative consequences for startups without necessarily protecting children.
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 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 05/13/22
The Big Story: Big week for Biden’s broadband efforts. The Biden administration is honing in on broadband expansion this week with new partnerships with Internet providers to ensure low-cost broadband for low-income Americans and the kickoff of a program to make available $45 billion for state broadband initiatives. Reliable, accessible, affordable broadband is crucial to the startup ecosystem and innovators across the country.
Startup News Digest 03/18/22
Big story: FCC digs into digital discrimination. This week, the Federal Communications Commission (FCC) voted to kickstart proceedings to tackle digital discrimination—the lack of reliable, accessible, and affordable broadband in certain communities across the country—which creates barriers for would-be startup founders, especially underrepresented founders.
Startup News Digest 02/18/22
The Big Story: Over 100 startups, investors, organizations defend QSBS tax treatment. This week, more than 100 startups, startup investors, and startup support organizations sent a letter to Congress urging them to preserve the current tax treatment of Qualified Small Business Stock (QSBS), which helps startups attract early-stage investment and employees.
Startup News Digest 02/11/22
The Big Story: EARN IT Act moves forward despite concerns from lawmakers, advocates, and industry. A bill moving through the Senate would amend critical Internet legal frameworks that startups rely on to host user-generated content and disincentivize startups from using privacy and security-enhancing measures like encryption.
Startup News Digest 02/04/22
The Big Story: The startup policy priorities for 2022. This week, Engine released its 2022 Startup Agenda, highlighting the policy priorities of the U.S. startup ecosystem and featuring startups across the country explaining the ways policy can support them. As we explain in the agenda, there are startups in every state and every congressional district. There are startups that have all kinds of business models and rely on all types of funding. There are startups that operate in every sector of U.S. industry. And all of them will be impacted by policymakers' decisions across a range of issues.
Startup News Digest 05/21/21
The Big Story: As broadband subsidy program ramps up, lawmakers eye next steps. The need for universal broadband was back in the spotlight this week as lawmakers discussed the impacts of the digital divide, especially during the pandemic. At a hearing Tuesday, the House Appropriations subcommittee on financial services and general government examined the impact a lack of affordable, reliable broadband has, especially on rural communities and communities of color.
