Startups call for better access to capital for entrepreneurs of color
Before policymakers regulate AI, they need to understand a fundamental technology: neural networks.
The video game industry is concentrated in a handful of locations, leaving incredible talent in underserved areas frequently overlooked. Ben Kvalo started Midwest Games to change that narrative, supporting underrepresented game developers because increasing diversity in game development leads to better products and bigger markets. Ben recently joined us to talk about Midwest Games, the challenges of raising capital in the Midwest, the importance of small developers in maintaining a healthy video game ecosystem, and the potential benefits of AI for the industry.
Engine statement on SCOTUS Decision in Moody v. NetChoice and NetChoice v. Paxton
Consumer weather models are too coarse for farms and conservancies that are large enough to occupy their own microclimates. Dr. Carlos Gaitan started Benchmark Labs to solve this problem, leveraging artificial intelligence to create custom weather models for farmers and conservators—helping them increase their crop yield and better manage their land. Carlos recently sat down with us to discuss Benchmark Labs, his experience as an immigrant founder, the value of government funding for startups, and how policymakers should approach AI policy.
Engine applauds the U.S. House of Representatives’ passage of the Helping Angels Lead Our Startups (HALOS) Act. The bill, which was approved by a wide margin of 325-89, would clarify regulatory ambiguities around general solicitation, making it easier for startups to publicly showcase their ideas without unintentionally running afoul of securities laws.
Today, the U.S. House of Representatives passed the widely supported, broadly bipartisan Email Privacy Act by a unanimous vote of 419-0. The bill would make long overdue updates to the Electronic Communications Privacy Act (ECPA) to bring our digital privacy laws into the 21st century. Specifically, the bill would clarify that law enforcement must obtain a warrant—except in certain clearly defined emergencies—before accessing individuals’ electronic communications.
The pitch competition has practically become a standard rite of passage for startups, especially early-stage firms seeking investment. Yet, many pitch events may violate decades-old securities law. Congress is now considering legislation to fix this: The HALOS Act. Sponsored by Rep. Steve Chabot (R-OH), this legislation clarifies the rules around pitch competitions, making it easier for startups to pitch their business plans and find potential investors.
Among the many challenges entrepreneurs face in launching and scaling a startup, recruiting talented employees is one of the most difficult. There’s already a shortage of tech workers in this country (there are currently more than 600,000 open computing jobs nationwide, and last year, only 43,000 students graduated with computer science degrees), and it’s even more dire for startups that must compete with some of the most successful companies in the world to recruit these employees.
April 5, 2016 marked the four year anniversary of the enactment of the Jumpstart Our Business Startups (JOBS) Act. While the statute is still relatively young, we have already begun to see the positive impacts that its provisions have had on startups’ ability to raise capital. It has made going public easier and created new pathways for startups to raise money through Regulation A+ and general solicitation under Regulation D. And with regulation crowdfunding set to finally go live in May, we are hopeful that a vibrant non-accredited investor crowdfunding market will emerge in the near future.
It is hard to overstate how incredibly dangerous and foolish the Burr-Feinstein “Compliance with Court Orders Act of 2016” draft legislation is and even harder to believe it was coauthored by California’s senior senator, Dianne Feinstein, D-Calif., and Sen. Richard Burr, R-N.C.
In the year since the Federal Communications Commission (FCC) approved its historic Open Internet Order, net neutrality has faced countless attacks in both the courts and Congress. Once again, the Order and the FCC’s broader authority have come under fire. H.R. 2666, the “No Rate Regulation of Broadband Internet Access Act,” threatens the FCC’s ability to fulfill its congressionally-mandated responsibilities and represents yet another attempt by anti-net neutrality lawmakers to undermine an open Internet.
Across the country and far beyond Silicon Valley, new centers of startup activity are on the rise. Among them, Miami, Florida is one of the more exciting and dynamic cities emerging as a hub for startups. Not only are more entrepreneurs calling Miami home, but a real ecosystem is forming, complete with a new co-working and events space in the heart of Miami’s Wynwood district, investor groups with a renewed commitment to South Florida entrepreneurs, and a slew of meet-ups, conferences, and hackathons attracting students, programmers, entrepreneurs, and investors eager to be part of this transformation.
I am excited to announce today that Paul Geller has joined our team as Engine’s new Managing Director. Paul will focus on corporate outreach, and joins Engine as a startup veteran who spent the last few years building technology applications for fashion and retail brands in New York. He previously served on the Audio Board of the Consumer Technology Association and as a partner at Hangar.
On New Year’s Eve 2015, while most people were out celebrating, the Copyright Office quietly issued an notice of inquiry seeking public input on an incredibly important topic: the effectiveness of Section 512 of the Digital Millennium Copyright Act (DMCA). For those who didn’t skip their New Year’s Eve party to brush up on copyright policy, here’s a refresher: the DMCA is a law from 1998 that, among other things, grants online service providers (OSPs)—basically, all your favorite websites—a legal “safe harbor” from facing lawsuits arising from user copyright infringements.
Since the earliest days of this election cycle, the 2016 presidential candidates have been sparring about immigrants and immigration reform. Both Democrats and Republicans agree that the country’s immigration policies are among the most important issues the next administration will need to tackle (and hopefully with the support of Congress). Yet, as enormous and all-encompassing as our country’s immigration problems are, only a narrow portion of them have been discussed by the candidates.
As strange as it may seem, only a small percentage of Americans can legally invest in most startups today. Under long-standing rules governing who qualifies as a so-called “accredited investor,” only quite wealthy individuals (those make at least $200,000 in annual income or have $1 million in assets, excluding their home) can buy shares in a fast-growing, privately held company.
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