Congress, FCC, New America Foundation Focus on Broadband

Broadband plays a critical role in economic development and opportunity around the world. The United States, however, lags behind other countries in terms of the number of citizens reached by internet infrastructure. The U.S. ranks fifteenth out of 34 Organization for Economic Cooperation and Development countries in wired broadband subscriptions per 100 inhabitants, according to December 2011 data.

“The freedom and openness of the Internet has enabled small businesses in dorm rooms and garages to grow into some of the most successful companies in the world,” Federal Communications Commission Chairman Julius Genachowski told Congress in a hearing July 18. Genachowski testified before the U.S. House Committee on Small Business about the commission’s ongoing efforts to encourage innovation and investment in broadband along with other administration officials from the National Telecommunications and Information Administration and Department of Agriculture.

Genachowski’s testimony comes during a week in which broadband is at the forefront in Washington, D.C. July 19, the FCC released its second report on consumer broadband performance in the U.S. The same day, the New America Foundation released a report entitled, “The Cost of Connectivity” comparing the cost of broadband in 25 cities around the world.

In recent years the FCC has significantly reformed rules and programs in an effort to expand broadband penetration across the United States. One of the most wide-reaching, the overhaul of the Universal Service Fund, aims to encourage deployments of high-speed internet access to underserved communities. Other moves, including the commission’s net neutrality rules, seek to maintain the openness of the internet and preserve the system that has facilitated some of the world’s most dynamic companies.

Competitive broadband markets, open internet protocols, and the speed of internet services make a big difference for startups. Competition creates incentives for providers to keep prices low, while high speeds create opportunities for consumers to harness products and services offered by innovative, young companies. Openness ensures a level playing field for internet platforms. Closing the broadband gap will create opportunities in communities that lack adequate broadband speeds across the U.S.

The New America Foundation report also takes a look at competition in other countries. Using Paris as a case study, researchers illustrate the impact of an “unbundling” policy undertaken in France to introduce competition to the state-owned monopoly France Telecom. New companies created competition and were able to offer services on the existing DSL infrastructure which brought down costs. Twelve years later, companies are laying new cables to “meet growing demand for faster speeds at low prices,” according to the report.

Startups aren’t limited to big cities like New York and San Francisco, a fact that was highlighted by Engine at Startup Day on the Hill last month. Broadband provides an opportunity for entrepreneurs to innovate and opens access to customers across the country and around the world. Efforts like those undertaken by Google in Kansas City to deploy next-generation fiber demonstrate the potential of even further advances in broadband technology boosting small business and startups.

Image by BigRiz via Wikimedia under Creative Commons Attribution-Share Alike license

Innovation Depends on Visa Reform

Foreign-born “computer professionals” represent the largest share of H-1B visa applicants, according to a study released this week from the Brookings Institution. The study explores the demand for the H-1B class of highly skilled professional visas across different U.S. metropolitan areas, assessing which geographical and professional areas rely most heavily on foreign-born talent.

The findings show that science, technology, engineering, and mathematics (STEM) occupations accounted for more than half of all H-1B requests in 92 of the 106 metropolitan areas studied, pointing to the disparity of United States STEM graduates and advanced STEM occupations needing to be filled. The Obama administration estimated in February 2012 that less than half of U.S. students pursuing a degree in STEM fields ultimately earn a degree in a STEM discipline. 

The H-1B visa system also plays a major role for small companies and startups which rely on these highly skilled workers to develop products and services. “Our study shows that private firms account for the vast majority, 90 percent, of requests,” Neil Ruiz, a co-author of the study, said in an email to Engine. The top 100 H-1B employers make up only 20 percent of these visas requests. “I would not be surprised if some of them [the remaining employers] are smaller companies or startups,” Ruiz said. For more from Ruiz, see his video. 

The study also noted that specialized skills tend to cluster in certain regions of the world. For example, 56 percent of the world’s engineering degrees are awarded to students studying in Asia, compared to the United States, which graduates just 4 percent of these degrees.

Clustering effects aren’t limited to skill set distribution. Innovation centers in the United States are situated near universities, metropolitan areas endowed with venture capital, and research and development hubs. These areas, from the tech hub of Silicon Valley to the Research Triangle Park in Durham, North Carolina, rely on the H-1B visa program to stock the talent pool for startups in need of highly skilled workers.

The H-1B visa is an essential tool for growing technology centers and the economic benefits they provide. The study’s recommendations include forming a non-governmental, non-political commission to assess the needs of metropolitan areas and assign H-1B caps accordingly.

Legislation proposed this year, including measures such as Startup Act 2.0, seeks to eliminate per-country visa caps, along with other measures designed to allow tech businesses easier access to the foreign-born talent they need in order to grow and thrive in a globally competitive market.

It has become more and more clear that domestic demand for highly skilled labor is outpacing supply. This gap must be addressed by policymakers before the lack of STEM-educated professionals dampens innovation, growth, and entrepreneurship in the U.S. economy. We support measures introduced by lawmakers to end the cap system that arbitrarily prevents talented individuals working for U.S. companies. Policymakers should also consider reforms of the immigration system that would make it easier for entrepreneurs to enter the U.S., start businesses, and create American jobs.

Image from the Brookings Institute.

Entrepreneurs Need Startup Act 2.0

Earlier this week, the office of Senator Jerry Moran, a leading co-sponsor in the Senate of Startup Act 2.0, released a short video detailing the need for reform of the immigration processes for entrepreneurs as would be enabled by Startup Act. 

In the video, Morpheus Medical Co-Founder and Engine member Fabien Beckers, a French citizen by birth, tells his story, and outlines why, despite receiving his education in the U.S. and founding a company here, he and his employees may be forced to close up shop because of his visa situation. 

Check out the video at Sen. Moran's YouTube page here, and remember to call your member of Congress today at http://engine.is/startupact and ask them to co-sponsor and champion Startup Act 2.0 in the House and Senate. With your voice, we can help make this law a reality for founders like Fabien all across the U.S. and keep startups thriving here at home.

Patent Lawsuits May Cost Startups Billions

Patent litigation is becoming an expensive hurdle for startups, and people outside the startup community are taking note. “It’s not clear that we really need patents in most industries” Judge Richard Posner told Reuters in an interview July 5 following his decision to end a patent suit between Apple and Google’s Motorola Mobility unit. The jurist and professor characterized the proliferation of patents in the technology industry and other high innovation markets as “a problem.”

Posner, a judge on the 7th U.S. Circuit Court of Appeals and professor at the University of Chicago, is a prolific author on law and economics, including the book The Economic Structure of Intellectual Property Law.

His comments follow a recent Boston University study that estimated companies were subjected to $29 billion in direct costs from 2011 patent infringement claims filed by “non-practicing entities” -- companies that operate by collecting fees on patent licenses as opposed to making products. While large companies pay more of the overall settlement and legal costs, the expenses make up a greater share of smaller companies’ revenue, according to the estimates.

Lawsuits brought by entites like Lodsys, a company that has sued app developers for the use of in-app purchases and other fundamental technologies, demonstrate the vulnerability of startups to the high costs of patent litigation and settlement.

A June 25 article by Bloomberg’s Susan Decker highlighted the study co-author James Bessen’s impression of the effect of litigation on entreprenuers and innovation:

“I was surprised at the magnitude and how much of it is really hitting small companies,” said Bessen. “It’s having a bigger effect on innovation than we had thought.”

Startups need a patent system that fuels innovation and incentivizes invention. Money seeped away by lawsuits robs young, dynamic firms of the opportunity to create jobs, enhance their products, and reach new customers. Reforms in the America Invents Act, signed into law in September 2011, didn’t go far enough to protect entrepreneurs. We need new, well-considered legislation to address predatory lawsuits and the billions observed by researchers to be lost to settlements and legal fees.

UberX Threatened by DC Council Proposal

The Council of the District of Columbia is slated to vote tomorrow on a price-setting measure that, if passed, will block competition in the district’s transportation market. Uber, an Engine member and a startup that will be immediately affected by the proposal, is urging its users and concerned parties to call, email, and tweet to members of the council. For more information on how you can help, read Uber co-founder Travis Kalanick’s blog post. A petition has also been launched to oppose the measure. 

The so-called Uber Amendment contains language that sets a minimum fare for sedan drivers offering transportation services. Startups like Uber, who offer a popular and efficient service, would not be permitted to charge less than five times the fare of a taxicab. Sedan prices would be set by law higher than those of competitors. Under the proposal, UberX, a lower-cost car service the company unveiled July 4, would not be able to operate in the Washington DC market.

Not only does the proposed amendment stifle competition, it poses a danger to a healthy and vibrant economy by preventing the growth of startups and the jobs they provide in the DC market. Engine urges its members to support healthy competition and disruptive startups like Uber by voicing your concerns with council members.

Update 7/10/2012: After receiving thousands of notes from Uber customers, the DC Council has dropped its plans to add the minimum fare amendment. Report in full at the DCist.

DC City Council Set to Vote Against Lower-Cost Transportation

The City Council in Washington DC is set to vote tomorrow on a measure that would stifle progress in the transportation industry -- specifically it would prohibit startup company Uber from offering a competitive service in the sector. Join us in calling members of the Council to ask them to protect innovation by voting against this proposal. 

With a long, blighted history of corruption and malfeasance in the taxi industry, the city of Washington has long stood against progress in a vital area of transportation for the Nation's Capital. Earlier this year, Uber, who we're proud to say joined us last month for our Startup Day on the Hill event, launched their innovative, disruptive service in Washington alongside many other cities throughout the U.S. and around the world. Almost immediately, this move was met with resistance from the Taxi Commission, Mayor Vincent Gray and the City Council in an attempt to protect an existing taxi industry which has been fighting modernization for some time.

Tomorrow, the Council is looking to take another step backward against modernization of transportation in the District with the impending passage of a so-called "fare floor" for Uber riders. The proposal, according to an email sent earlier this afternoon by Uber CEO Travis Kalanick to the product's users, would set rates no less than five times higher than a minimum taxi rate. Instead of investing in a modern taxi fleet, or welcoming innovation in transportation in DC, Mayor Gray and the Council will instead seek to make an alarming move against innovation and a popular small business in DC by forcing rights sky high and making programs like the recently-announced UberX -- a lower-cost alternative to Uber's popular black car services that uses hybrid cabs -- impossible in the Nation's Capital.

Amidst the furor surrounding the impending votes, there is still an opportunity to change hearts and minds and keep transportation in Washington free for innovation and modernization. If you live in the District, or use Uber to get around DC, we are encouraging you to call members of the DC Council and register your displeasure with the proposed regulations. Here are their numbers, we hope you'll make the call.

Phil Mendelson (Chairman), (202) 724-8064, pmendelson@dccouncil.us
Mary Cheh, Ward 3, (Chairperson of Committee on the Environment, Public Works and Transportation), (202) 724-8062, mcheh@dccouncil.us, @marycheh
Michael Brown, at-large, (202) 724-8105, mbrown@dccouncil.us,
@cmmichaelabrown

Jim Graham, Ward 1, (202) 724-8181, jgraham@dccouncil.us, @jimgrahamward1
Jack Evans, Ward 2, (202) 724-8058, jevans@dccouncil.us, @jackevansward2
Muriel Bowser, Ward 4, (202) 724-8052, mbowser@dccouncil.us, @murielbowser
Kenyan McDuffie, Ward 5, (202) 724-8028, kmcduffie@dccouncil.us, @kenyanmcduffie
Tommy Wells, Ward 6, (202) 724-8072, twells@dccouncil.us, @tommywells
Yvette Alexander, Ward 7, (202) 724-8068, yalexander@dccouncil.us, @cmyma
Marion Barry, Ward 8, (202) 724-8045, mbarry@dccouncil.us, @marionbarryjr

David Catania, at-large, (202) 724-7772, dcatania@dccouncil.us, @cataniapress
Vincent Orange, at-large, (202) 724-8174, vorange@dccouncil.us, @vincentorangedc

Unlicensed Spectrum Offers Innovation Opportunities for Startups

Next week, Engine will cohost “The Power and Potential of the Unlicensed Economy,” an event focused on unlicensed wireless technologies. While immigration and financial regulation have dominated stories over the last year about startup-focused legislation in Washington, new laws and proposed spectrum regulation may have a revolutionary effect on growth in the mobile device and application ecosystem.

As the four national carriers in the United States battle it out over download speeds and 3G versus 4G service, unlicensed technology has quietly carried the burden of the data services that many startups have harnessed to offer new products. For example, 47 percent of iPhone data traffic and 91 percent of iPad data traffic was observed to have been transmitted over WiFi networks (as opposed to 3G and EDGE networks), according to ComScore data cited in a November 2011 Yochai Benkler working paper. 

The Federal Communications Commission employs a variety of regulatory tools to prevent interference between spectrum users. The most prominent regulatory regime for smartphone users, in terms of cost, utilizes licenses that provide exclusive rights to spectrum in a given geographic area. These licenses are bid on in FCC auctions that have generated about $55 billion in revenue to the Treasury since their inception in the early 1990’s. Sprint, AT&T, and Verizon control most of these licenses, charging users a monthly fee to access their airwaves.

Unlicensed regulation flips this regime. Users can access a given band of spectrum in any place, assuming their devices follow particular technical standards and don’t overload the available bandwidth. WiFi is an example of a pervasive unlicensed technology; anyone with a WiFi compliant radio can access a hotspot anywhere in the U.S., so long as the number of users doesn’t overload the network. The same holds true for the airwaves that facilitate transmission between baby monitors, garage door openers, and RFID chips in ID badges and in mobile tap-to-pay cards and devices.

So why do these regulatory approaches matter to startups? You may have heard about the spectrum crunch in which the available bandwidth for users is outpaced by the demand for airwaves. While the demand glut for data services is a reality, there is spectrum that could be used by device manufacturers and carriers. The catch? The FCC, incumbent spectrum licensees, and other government agencies have to find ways to open more of these airwaves for new commercial applications.

Two approaches have been introduced this year to address the problem. One, called TV white spaces, allows devices to operate in the gaps of spectrum between the broadcast channels used by over-the-air television stations. The project was preserved by provisions of payroll tax legislation signed by President Obama in February. The second, proposed by the National Telecommunications and Information Administration in March, aims to allow commercial users to share spectrum with government transmitters such as the Defense Department and Coast Guard. Both approaches rely on the rise of software-defined radios and other new technologies which employ technological solutions to avoid interference with other transmitters. New, innovative wireless devices may face barriers getting old technology and incumbent users to cooperate.

White spaces applications face geographic challenges. Television broadcasters can crowd more than half of the 49 available full-power channels available in some metro markets covering multiple cities (i.e.: San Jose, San Francisco, and Oakland). New FCC auctions that will allow broadcasters to relinquish some or all of their bandwidth in exchange for portions of auction revenue could also limit the available white spaces spectrum. These factors, teamed with rules to protect broadcasters from interference, may limit the success of potential urban “super WiFi” deployments that have been touted by FCC Chairman Julius Genachowski.

The spectrum sharing proposal may face challenges in working with government spectrum users. The DOD, for example, employs a variety of spectrum across the country for different purposes, ranging from communication with drones to conventional radio. This leaves some federal users with little incentive to begin sharing spectrum with new devices that might disrupt critical military and government technologies.

With such a crowded playing field, startups need to be keenly aware of how the federal government is regulating spectrum. The impact of regulation will be vast. Even if this technology doesn’t reach the hands of consumers, opportunities to develop enterprise applications for logistics, fleet management, and smart grid are just a few examples of the potential opportunities for innovators to build products on reliable, free-to-access airwaves.

Engine aims to advance the debate on wireless regulation next week. We invite you to attend the event if you’re in the area or watch the live stream.

Internet Declaration Highlights SOPA/PIPA Legacy

Ahead of Independence Day in the United States, groups are banding together to highlight principles behind the free and open internet. Entrepreneurs and startups are vital players in the internet economy, and should make their voices heard as the discussion evolves on these critical issues that impact internet culture and commerce.

A coalition representing advocacy groups, civil society organizations, companies, academics, and individuals have launched a “declaration of internet freedom” at www.internetdeclaration.org/freedom. The groups highlight five principles: expression, access, openness, innovation, and privacy.

Startups can take this opportunity to provide feedback on Techdirt, reddit, Cheezburger, and Github.

Nearly six months after the blackout protests and call campaigns derailed SOPA and PIPA, users across the web are coming together to remind lawmakers that these efforts weren’t a one-time groundswell. Startups have a great deal at stake in the open internet discussion and entrepreneurs and innovators should take this opportunity to let the community know about their concerns.

High Skilled Immigrants Driving U.S. Innovation

Immigration reforms similar to those proposed in Startup Act 2.0 would help the United States retain foreign students that are driving innovative patents in the domestic economy, according to a report released June 26. The report, conducted by the Partnership for a New American Economy, found that 76 percent of patents issued in 2011 to the top 10 patent-producing universities had at least one foreign-born inventor.

The partnership’s reviewed 1,466 patents awarded to the top 10 schools and highlighted the endowment of foreign-born inventors on patents in “cutting-edge fields.” These inventors were observed to contribute to as many as 87 percent of patents issued in fields which include semiconductor device manufacturing, information technology, pulse or digital communications, pharmaceutical drugs or drug compounds, and optics.

Patents are one measure of new and innovative products developed in the U.S. economy. The report doesn’t just present the statistics, it also shares some of the stories behind the people and projects these patents protect. Innovators from Cyprus, Malaysia, and India involved in patents for technologies behind seawater purification, enhanced digital photography, and strong-as-steel metal that can be molded like plastic.

Foreign-born innovators like these may blossom as domestic-entrepreneurs after emerging from academia. Engine recently featured one such immigrant entrepreneur Rutul Davè, co-founder of Bright Funds -- one of 18 startups that attended Startup Day on the Hill. Rutul earned a master’s degree in computer science before founding his growing startup.

Research and development spending at U.S. universities has increased five-fold over the past 25 years, growing from about $10 billion in 1985 to nearly $50 billion in 2007. Harnessing spillover benefits of this research is critical to the growth of high tech industries. With STEM job growth anticipated to continue through 2017 and less than half of U.S. college students completing the STEM degrees they start, more highly-skilled workers are needed for the U.S. to remain competitive.

Startup Act

2.0 tackles the issue of highly-educated immigration head-on, creating new visas for MA and PhD recipients in STEM fields and extending their ability to find and accept work with companies in the United States. You can learn more about the measure and contact your representative about immigration at www.engine.is/startupact.

We can make a difference

Rutul Davè is an entrepreneur with over ten years of experience in software and marketing. He immigrated to United States to pursue a master's degree in Computer Science, fell in love with the land of opportunity and innovation, and founded Bright Funds to connect donor capital to the most effective nonprofits in the world. @letsfixtheworld

As a kid growing up in India during the 1980s, there was one public service video on television that I vividly remember even today. It was a simple message on unity, and the video showed how by joining forces one can overcome any threat that is considerably bigger and stronger.

More than 20 years later, the significance of that message was again evident to me last week. On June 19th-20th, the Bright Funds team joined 17 other startups from all over America on a two-day event on Capitol Hill. Engine Advocacy, a group with the mission to create a platform for innovators and entrepreneurs to connect with government and policymakers, put together the event and invited Bright Funds to participate.

One message was loud and clear - startups can make a difference and have a say in the government and in policy decisions.

As someone who participated in the event with some skepticism, it took me some time to come to that realization. As entrepreneurs we are busy building businesses in the face of uncertainty, and as startups we feel we are too small to have any impact on government. But sitting in a room alongside smart, driven, like minded entrepreneurs and having a conversation with congressmen from both sides of the aisle, it became clear that when united, our voices will be heard. We are the engines of economic growth and job creation. When we ask questions, present our point of view, and tell our stories, we can influence policy decisions that make it easier to start and run businesses and build the future.

We’ve shown that we can come together to influence policy decisions, with the movement to prevent poorly drafted copyright bills SOPA and PIPA from passing earlier this year. The ground-up movement was an excellent example of the strength of the technology and startup community to unite and influence a policy that would have severely limited our freedom to innovate.

I realized that my voice counts. As someone who immigrated to United States, earned a masters, and am fortunate to be a part of the innovation happening in Silicon Valley, I have had the opportunity to participate in the impact that entrepreneurship, startups and high-skilled immigration has had on the economy.

I couldn't help but make the parallels in the approach used at Startup Day and the one we use at Bright Funds, a startup that I co-founded earlier this year. Through this service, we are connecting donor capital to the most effective nonprofits in the world. We are building a community that believes in uniting the support for the most effective nonprofits that are instrumental in solving the social challenges of our time. And the biggest weapons we have in our arsenal are the technologies enabling this effort, and the unity and focus of our actions. Social challenges like ensuring access to clean water for everyone, preserving the environment, and eliminating poverty look large and intimidating, but we can achieve these goals when we join forces and we unite. Besides the passion behind solving a problem for our customers, that inspiration alone was enough to build Bright Funds.

If you are a startup, join me at Engine Advocacy and let's make a difference.

Take Startup Act One Step Further, says Marvin Ammori

Startup Act should include a provision to encourage training in computer programming in the U.S., says Marvin Ammori in a piece for the Atlantic today.

The tech world is coming out in strong support of Startup Act 2.0, a bipartisan bill that eases the way for entrepreneurs to hire the foreign-born high-skilled workers they need to build and scale high-growth startup businesses without moving offshore.

While making changes to the skilled immigration process is an essential measure in getting startup talent in this country, Ammori writes that Startup 2.0 is “a great bill, but it could be better”. The gist of the article is that the key to unlocking success for future generations of startups is in setting up all Americans for success in innovative and technology based new businesses -- this means giving public schools funding and incentives to teach all kids how to code, just like all kids are taught basic math and grammar, Ammori says.

An entrepreneurial mentality will be key in navigating the requirements of today’s job market, and the current education system which encourages an obedient worker mentality is unsuited to an economy that increasingly relies on new startups and innovation. Further than encouraging entrepreneurship in our students, though, we should be equipping kids from an early age with programming skills that are fast becoming as ubiquitous a requirement as learning english or math.

Ammori suggests federal government involvement , suggesting that a new iteration of the bill, “Startup Act 3.0, could fund grants for expanding programming classes, beginning with small-scale pilot programs”.

Ammori’s views might not be revolutionary, but he is dead on the money when it comes to the need for a multilateral approach to the dearth of high-tech graduates coming out of U.S. universities. The short term solution is fixing the skilled immigration system, as Startup 2.0 does. The longer term solution is catching the U.S. education system up to the economy of today and the future. We as a country need to set a course on both of these goals, and we can’t afford to wait.

Click here to learn more about Startup Act 2.0 and connect with your representative to let him or her know that it’s important to you.

Uber at Startup Day

Uber Technologies, a San Francisco based technology startup, is innovating at the intersection of mobile technology, transportation and logistics. Uber connects people who want a convenient and classy ride with professional sedan car drivers who are available to provide it. Uber allows users to dispatch, track, and pay for rides given by licensed for-hire vehicles in more than 12 cities, from their mobile phone. Our service works with iPhone, Android, via the web and with any SMS capable device.

What impact does Uber have on your community and on the country?

Uber is all about moving people around their cities more efficiently and in style. Uber’s technology makes it easier to live in neighborhoods poorly served by public transportation and taxis. It makes it easier to go to dinner or get to business meetings in hard to reach neighborhoods. Uber also means fewer cars on the road. For every Uber car we add to a city, we’re taking at least 6 cars off the road and out of parking garages. And while prices are more than a taxi, they are significantly less than traditional limousine companies.

We model how many cars need to be on the road, and where they need to be positioned to serve customers most efficiently. For example, the Nationals, events at the Kennedy Center and Fourth of July fireworks all drive significant demand in DC -- we are constantly collecting this information and communicating it out to drivers to ensure that the right number of drivers are in the right places at the right times. We’ve even gotten pretty good at knowing exactly what drop in demand we can expect when Congress is out of session!

Uber also provides a platform for sedan drivers to make an honest living. Before Uber, sedan drivers often worked for large limousine providers (or “hustled” for rides illegally) and their paycheck and schedule was at the mercy of dispatchers. Uber empowers drivers to work when they want and how they want. The increased earnings and predictability of earnings has allowed many drivers to add cars and hire drivers. For the first time their earning potential goes well beyond their hours on the road.

Do you feel that Uber is supported by government, local and federal?

Uber has definitely faced challenges from local regulatory authorities and local government officials in many cities we have entered. When it comes to transportation, cities have done business a certain way for decades, and that means resistance to change, even if that change is good for its citizens. Rather than see how Uber’s technology is improving transportation and life in the city, local regulators don’t take the time to learn about Uber. Many have tried to limit Uber because it doesn’t fit into existing regulatory frameworks or tried to categorize Uber as a taxi or limousine rather than a technology company.

Why are you attending startup day and why do you think it’s important for startups to have a voice in Washington?

Policymakers need to better understand an important engine of economic growth and job creation: entrepreneurs who have an idea, execute on it, and create new markets. Decisions made in Congress or in local governments can either make it easier to start new businesses and create jobs or harder. Uber has created thousands of middle class jobs across the country by empowering licensed drivers to start their own businesses; we have created a great customer experience, and are bringing tax revenue to local and federal governments. Since startups don’t always have resources for big lobbying firms, it’s important for policymakers to create opportunities like this event, to have startups tell their stories and hopefully help lawmakers think differently about the issues they face.

Have you in your business faced any particular challenges related to policy?

Definitely -- we have faced challenges right here in DC. One example is upon arrival in DC we found that the limousine licencing office had not accepted a new application in nearly four years. A moratorium on licences that was only supposed to last for two years had suddenly become nearly four. There was no public documentation on this decision and drivers have been given no information on when it will re-open.

Another example is the pressure we have faced from local regulators who originally declared Uber’s model illegal without having taken the time to understand us. Going forward, I hope that regulators and legislators remain focused on the best outcomes for the citizens of their city rather than on politics or lobbying interests.

Ultimately Uber is all about choice - our goal is to roll out an efficient and reliable transportation alternative to as many people and in as many cities as possible. We are committed to using our technology to empower entrepreneurs and continue to ensure that consumers have access to the best possible transportation service at the best possible prices.

AgLocal at Startup Day

Today marks the kickoff of Startup Day on the Hill, an event launched by Engine to bring 18 startups from across the country to meet with policymakers to demo their products and talk about issues confronting small businesses. We caught up with AgLocal, who is attending the event. AgLocal is a web based marketplace and buyer management platform specific to meat producing farms, meat buyer/distributors, and retailers. 

What impact does your business have on your community and on the country?

Rural job creation, future farm sustainability and viability via food supply innovation.

AgLocal's mission is to use the web as a tool to remove many of the barriers to the market for independent family farms, giving them higher margins and incentivizing sustainable and ethical practices. By doing this we will use the efficiency created to drive the market with new options for buyers large and small.

Cost easement, quality and transparency will hand power to the meat lovers!

Do you feel that your business is supported by government, local and federal?

I do! Many policy makers and administrators have been supportive of our mission, there is also a lot of education and sharing that must continue in order to continue the momentum gained.

Why are you attending startup day and why do you think it’s important for startups to have a voice in Washington?

Even before I founded AgLocal and from my time at the Kauffman Foundation, traveling to DC and in Silicon Valley, I've learned of the importance of startups to the

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unique foundation of American innovation and wealth creation. Now more than ever is a chance to set a road map for future innovation and wealth, because of what we know about innovation in America. A good portion of wealth is created during economic down cycles (See this Kauffman report, also see economist Joseph Schumpeter theory of Creative Destruction.

However, America faces unique challenges that it didn't face before, due to the digital and global nature of this new economy. Dialogue about policies regarding visa access, intellectual property, business taxation, investment incentive programs, and government small business loan programs, university internship to work programs is important.

What technology related policy issues concern you the most?

Net neutrality, university intellectual property pipelines, legislation like (SOPA/PIPA).

Have you in your business faced any particular challenges related to policy? Successes/challenges dealing with them?

No challenges come immediately to mind that have affected us, but we are a young company.

Entrepreneurs Head to DC for Startup Day

As we’ve continued to build Engine over the past few months, we’ve talked with many people from across America -- with founders, serial entrepreneurs, investors. Even more than talking, though, we’ve been listening. We’ve heard from a cross-section of the startup community, and as this community becomes more aware of the place we as innovators and entrepreneurs hold in the resurgence of the American economy, many have expressed an interest in broadcasting those stories of success more widely and using them to effect change.

But one question has also popped up right alongside: How do we do it?

This week, we’re taking another step forward in working to get those stories heard and helping to focus the efforts of those in power in support of our growing startup community.

Startup Day on the Hill will feature 18 of our nation’s many great tech startups, working directly with policymakers in an effort to to build vital relationships between entrepreneurs and Washington. There will be a demo session for Members of Congress and their staffers to educate them on how the products being developed in our community are disrupting industries and changing lives. We’ll also have a roundtable discussion for staff about the role startups play in the economy, a breakfast get-to-know you session and discussion on Startup Act, and focused meetings with individual startups.

There’s more information about the companies attending, as well as some of the Members who have come on board on our Startup Day page. And follow along this week, as we’ll have plenty of interesting stories about our member companies, what we’re up to and what we find along the way. We hope this will be the first of many events in which we can build relationships, bridge the divide, and further the conversation about just how meaningful the work of entrepreneurs is to the American economy.

Obama Order Ties Broadband Expansion to Infrastructure

President Barack Obama signed an executive order June 14 aiming to expand internet access to underserved areas by making broadband expansion cheaper and easier on federal property. Government agencies that manage these federal assets -- including the country’s roadways and more than 10,000 buildings -- will adopt a uniform approach to allow broadband companies to conduct rollouts around the United States.

Too many Americans lack access to even basic internet service and the move may boost government efforts to encourage companies to expand high speed internet service to underserved areas. The National Broadband Plan and subsequent reports from the Federal Communications Commission have highlighted that about one-third of Americans do not subscribe to broadband internet service. The U.S. ranked 15th among Organization for Economic Cooperation and Development countries with 68.2 percent of households possessing access to broadband, according to 2011 data. Access to these networks provides businesses, consumers, and organizations the ability to connect and thrive in the internet economy, creating jobs and new opportunities in the process.

Why connect deployments to federal properties? The U.S. Departments of Agriculture and Commerce were allocated $7.2 billion in stimulus funds to expand broadband to underserved areas. Almost four years on, USDA has only paid out about $648 million of its $2.23 billion share of stimulus dollars devoted to the “Distance Learning, Telemedicine, and Broadband Program,” according to data reported on recovery.gov.

Congress noticed the lag and demanded answers from the agency about the delay, requiring that misspent or fraudulent contracts be returned to the U.S. Treasury. The problem, however, wasn’t federal government mismanagement necessarily, rather the process of bidding and awarding contracts and the seasonal nature of construction, facing build-out challenges in the winter months.

The uniform approach may increase incentives for service providers to reach new customers, literally breaking ground for projects that would otherwise go unexecuted. The President’s announcement is a promising indicator of the administration’s willingness to cut through red tape and make good on promises to improve broadband access across the United States.

June 13 Midweek Policy Update

This week in Washington: Cybersecurity legislation may move forward in the Senate, ICANN releases a list of proposed generic top-level domains, the United States Patent Office promotes clean energy partnerships.

Cybersecurity

Senate Majority Leader Harry Reid put his colleagues “on notice” June 10, calling on democrats and republicans to work together to pass cybersecurity legislation that has stalled in previous Senate sessions. The bill faces stern resistance from many technology-focused groups concerned about its impact on privacy.

Open Data

Representative Darrell Issa announced on June 10 the OpenGov Foundation at the Personal Democracy Forum in New York City. OpenGov would allow citizens to actively engage in the policy-writing process through open, web-based technology. Issa is looking for developers to build the tool.

Patent

The USPTO held a meeting of clean technology stakeholders in an effort to improve and expand its clean technology program. Issues discussed included the importance of regional accelerators and an update on cleantech patents.

Spectrum

The FCC holds an open meeting June 13 in which the commissioners will consider moves to make more efficient use of high frequency spectrum for a nationwide interoperable public safety network.

DNS

Also on June 13, the International Corporation for Assigned Names and Numbers (ICANN) holds a press conference unveiling the generic top-level domains applied for in the organization’s expansion program. The application window for the new domains -- which could include .lol and .nyc -- closed May 30. A release from the organization reports that more than 1,900 applications were received.

Innovation at Stake: Startups Must Opt In to Politics

Startup entrepreneurs have to get political. While legislation such as SOPA grabbed the attention of the internet community, less controversial public policy affects different types of businesses around the country -- from the neighborhood tapas bar in Providence, RI, that uses Square, to the newest mobile developer making a transit app in Seattle. Skyfire, a Silicon Valley based startup, has firsthand experience with how Washington, D.C. policy choices affect startups far from the Beltway. 

 “We’re still in early innovation mode,” says Jeffrey Glueck, CEO of the cloud computing startup. Founded in 2007, the company has around 50 employees and is a “typical small business in many ways”, according to Glueck. 

Skyfire isn’t what too many people across this nation would consider ‘typical’. Its product, serving mobile wireless operators and ultimately, consumers, eases the burden on cell towers during peak times and can free up to 60 percent of the available bandwidth. The cloud company can detect when a neighborhood cell tower is overloaded, and can take large data requests on the tower, like video, and determine the best and most efficient streaming rate for the device requesting it. In 200 milliseconds, Skyfire transcodes the video clip to a less data intensive bit-rate. This “intelligent optimization”, as Glueck calls it, comes as a result of intensive research and development, which the company spent its first few years conducting to create its product. 

And the product is doing very well. The Skyfire iPad app was the best-selling utility in the Apple App Store last year, and the company has raised venture funding to allow them to figure out how to take their expertise in video and multimedia processing and translate it into a user-friendly, workable solution to combat the spectrum crunch. “Unlimited data has been an unusual gift, but it’s ending soon,” Glueck predicts. Consumer demand for mobile broadband services is ever increasing, and even with expanded use of the more efficient LTE wireless technology, spectrum is scarce and the demand from consumers only continues to grow. Optimization strategies will be key in managing the crunch. 

As a company whose core product was conceived in order to help solve a complex policy problem, Glueck and the rest of the Skyfire team have a keen understanding of their place in the policy landscape -- and they know that spectrum isn’t the only issue that affects their business, or any other startup for that matter. The following are some of the policy issues Glueck identified as being relevant to his own and other startups: 

Patent 

Skyfire has filed 20 patents over the last five years, but so far not one of them has reached final review. And yet slow USTPO reviews are only the tip of the iceberg in terms of patent issues that are currently affecting small businesses, and technology startups in particular. “Friends of mine with startups have been subjected to ridiculous lawsuits from patent trolls, and this use of patents as a billy club with which to beat small startups absolutely has a chilling effect on innovation as a whole and in particular on startups. Even a meritless patent suit can cause a company to go out of business.” 

Immigration 

Then there’s the immigration system, which Glueck has found particularly trying. “We do all of our development in America -- we believe in having the power of top notch talent in one room in a collaborative fashion,” he says. He believes that low-wage, offshore processes can’t create at the pace of the Silicon Valley development model, which makes it particularly frustrating when he is then unable to procure visas for the hard-to-hire, highly specialized software experts that are foreign-born. “We had several employees who were rejected for trivialities on their H1Bs,” Glueck says. “If we can’t hire the right people then we’ll go out of business, and 50 people will lose their jobs”. 

Open Internet and Net Neutrality 

Glueck and Skyfire were actively involved in the internet campaign against copyright legislation SOPA/PIPA last year -- Skyfire is pro open internet. “We stake our businesses and our careers around the growth of the internet”. Glueck has also been involved with the net neutrality debate, and testified to the FCC on the issue. They came to the debate both as a mobile app developer and as a company that actively helps mitigate the spectrum crunch. “We think the FCC in the end reached a good balance,” Glueck says. 

Glueck is a CEO that is plugged into the policy issues that affect his business, and fluent enough in the ways of Washington to actively fight for policies that help his business thrive, and against the ones that are harmful. But for every Skyfire, there are other startups with less time, the political capital, or the inclination to get involved. Because running a startup is an all-consuming project, and entrepreneurs by nature would rather focus on the market and customers than to paying steady attention to the ups and downs of legislation and regulation. 

But staying informed and engaged with policy is essential for the continued success of startup companies. The SOPA win preserved the internet as a fertile ground for innovation. If passed, skilled immigration bills like Startup Act will ensure the continued success of startups and other U.S. businesses that need highly specialized workers. As we move forward, the active engagement of all startups in the political sphere will be key to making sure that government doesn’t impede entrepreneurialism or innovation.

 Skyfire is an Engine member. Click here to sign yourself or your company up to stay informed and active around policy issues that affect you.