States gear up to work on AI
Startup policy outlook under second Trump term
Executive coaching should be accessible to anyone who is interested, but oftentimes scaling the education is not practical. With her company Zella Life, co-founder Remy Meraz is democratizing professional development using AI. We sat down with her to discuss AI, independent contractors, and more.
After working in the financial sector for over 20 years, Mical Jeanlys-White founded her own company, WealthMore, a wealth tech with a focus on tackling a key financial barrier—wealth building and management. Her company leverages technology to connect everyday Americans with accessible wealth management services, aiming to provide wealth creation for all. We sat down with her to discuss her journey in raising capital, navigating tax policy, the evolving role of AI, and more.
Vance Reavie is no stranger to entrepreneurship. Using his knowledge from previous ventures, he created an AI platform that intelligently automates manual marketing and merchandising workflows and content generation processes for brands and retailers. We sat down with Vance to discuss the startup ecosystem in Arkansas, AI policy and regulation, grant opportunities, and more.
TLDR: When Congress returns from recess later this month, policymakers must ensure that they are effectively supporting startups in their fourth coronavirus relief package. In order to protect our nation’s startup ecosystem, however, Congress needs to look beyond currently available small business loan programs and examine other policy proposals that will enable startups and entrepreneurs to survive the pandemic’s economic fallout.
The Big Story: Congress extends small business loan program, but startups still need relief. Congress this week extended the deadline for startups and small businesses to apply for emergency funding from the Paycheck Protection Program (PPP), just hours before the loan program was set to expire. Under the measure, the U.S. Small Business Administration can continue to approve and offer PPP loans until August 8th to startups and small businesses that have been financially harmed by the coronavirus pandemic.
In the Midwest, some local entrepreneurs—such as Nebraska’s Tom Chapman, the Founder and Managing Principal at Chapman & Company—are advocating for a fundamental shift in the way the U.S. approaches startup ecosystems. We recently spoke with Tom to learn more about his company’s work supporting the creation of high-growth startups, the unique needs and challenges for entrepreneurs in the Midwest, his latest startup venture, and how the Midwest’s unique startup system makes it well-suited to address the problems that have vexed more traditional U.S. tech hubs.
TLDR: Telegram paid $18.5 million and returned the proceeds of its coin offering back to investors as part of a settlement with the U.S. Securities and Exchange Commission. The agency sued the firm last year for raising $1.7 billion through an initial coin offering to fund the development of its blockchain project, known as the Telegram Open Network. The settlement comes as U.S. cryptocurrency firms continue to seek regulatory certainty for the industry, including clear guidelines for digital coin offerings.
The Big Story: Congress increases pressure on vital Internet law. Policymakers are ramping up attacks on Section 230 of the Communications Decency Act, the 1996 law that has allowed startups that host user content to thrive. While this law provides online companies of all sizes with the ability to moderate users’ content without being held liable for users’ speech, the latest round of attacks on Section 230 have been largely framed around Internet companies’ content moderation practices—a difficult, time consuming, and expensive task for any online platform.
From its conception in 1999, the Greater Nashville Technology Council has been focused on bolstering the region’s entrepreneurial community by advocating for and supporting tech startups across Middle Tennessee. The member-based organization works with a variety of local stakeholders—including tech professionals, policymakers, and other state-based entrepreneurial organizations—to promote local workforce development and tech education initiatives. We recently spoke with the Greater Nashville Technology Council’s President and CEO, Brain Moyer, to learn more about the organization’s work, the region’s startup ecosystem, and what policymakers can do to further support local entrepreneurs.
TLDR: Federal officials are sending conflicting messages about their continued participation in global talks about the creation of a framework for digital services taxes (DSTs). While many of these taxes are targeted at large Internet companies, there are concerns that the startup community will be harmed by the trickle-down effect of increased costs for services and products to offset the taxes.
The administration’s decision to halt the issuance of work visas—including those under the H-1B program—for highly-skilled foreign workers will needlessly harm the tech industry and U.S. startup ecosystem that rely upon talented employees to drive global innovation. Instead of helping startups and small businesses recover from the coronavirus pandemic’s economic downturn, this proclamation hampers the tech sector’s ability to respond to the ongoing outbreak by limiting the effectiveness and reach of its workforce.
The Big Story: DOJ proposes changes to bedrock Internet law. The Department of Justice this week released a set of proposals for reforming a bedrock Internet law, a move that would make it more difficult and costly for Internet companies to host users’ content. The announcement comes as some lawmakers and federal officials have called for legislation to scale back Section 230 of the Communications Decency Act, which provides Internet companies of all sizes with the ability to moderate user content without being held liable for what they do or do not take down from their sites.
Austin-based nonprofit organization DivInc is working to drive systemic change across the U.S. startup community by fostering the growth and development of underrepresented entrepreneurs. The organization is focused on connecting entrepreneurs of color and women founders with the mentors, connections, opportunities, and resources needed to create more authentically inclusive startup communities.
TLDR: Protecting the collection and use of consumers’ personal information continues to be at the top of mind for lawmakers, with new efforts in Congress looking to address the use of personal information in contact tracing apps amid the coronavirus pandemic, and unnecessarily tying the use of targeted online ads to an unrelated intermediary liability law.
The Big Story: Treasury pushes for ‘much more targeted’ small business relief. Treasury Secretary Steven Mnuchin told the Senate Small Business Committee on Wednesday that the Trump administration is open to including a new round of Paycheck Protection Program (PPP) loans in the next coronavirus relief package, although he said that any future funding “needs to be much more targeted to the industries and small businesses having the most trouble going forward.” Mnuchin added that he is loosening the program’s existing rules in order to ensure that most of the small businesses receiving PPP loans can receive at least some loan forgiveness.
As nationwide protests over police brutality and inequality continue, industries across the U.S. are reevaluating their diversity and inclusion initiatives in order to more effectively combat systemic racism within their own ranks. One startup that has been focusing on these workplace inequalities is Dipper, a platform launched last year that lets Black and Latinx professionals share and review their company experiences in order to help other professionals of color make more informed career decisions. We recently spoke with Netta Jenkins, the Co-Founder of Dipper, to learn more about Dipper’s work, the experiences of entrepreneurs of color, and some of the steps that need to be taken in order for the tech industry to better support underrepresented founders and their ideas.
TLDR: Amid the coronavirus pandemic and critical ongoing conversations about race-based inequalities and injustices, Americans are increasingly turning to the Internet to learn, share, and stay informed. That's shining a brighter light on the ways in which Internet platforms handle all kinds of content—including misinformation, violent speech, and alleged infringement from the country's highest office.
In light of recent nationwide protests over police brutality and systemic racism, we’re putting our normal newsletter on hold this week in order to focus on organizations working to address those issues. Technology policy has a role to play in making sure people can stay connected and informed, and the tech industry has a long road ahead in addressing its own systemic inequality. But we’re spending this time listening to and highlighting organizations that have been working to address these issues on a larger scale, and we encourage you to do the same.
Patent litigation is notoriously expensive and can last for years. For startups in particular, the high costs and risks of these lawsuits are difficult to cover. Startups already operate on thin margins, and do not have excess resources to spend on legal fees or settlements arising from frivolous patent assertions. The mere existence of litigation (or a patent demand) also forces startups to divert attention from R&D, makes it difficult for startups to attract customers and investors, and can cause drops in valuation.
Your privacy is important to us. To better protect your privacy we provide this notice explaining our online information practices and the choices you can make about the way your information is collected and used.
