Before policymakers regulate AI, they need to understand a fundamental technology: neural networks.
Congress needs to act on child care challenges
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.
The Big Story: Policymakers turn attention to patent policy. Over the past weeks, there have been several indications policymakers across D.C. are thinking about the various roles patents play in innovation policy—both recognizing their potential to support innovators but also seeking to understand how low-quality patents hurt startups and small businesses.
TopProp is a daily fantasy sports platform designed to enable users to import existing fantasy football teams and calculate the odds of winning their matchups with friends. We spoke with Michael Zavagno and Griffin Kurzius, Co-Founders of TopProp, about what led them to build the platform and the challenges startups face when navigating different regulatory structures based on location.
The Big Story: New tax deal could impact global startup ecosystem. Officials from around the world are moving forward with a new tax deal that would shift current tax laws and stands to impact both large companies and startups. G20 Finance Ministers this Wednesday endorsed the agreement that 136 countries agreed on last week, which would tax businesses based on where their goods and services are consumed—a shift from taxation based on physical presence. The deal would also set a new global minimum tax of 15 percent.
Evidence and data must inform innovation policy, but numbers without context cannot tell a whole story. When it comes to patent policy, for example, counting certain patent applications that were filed with or abandoned before the U.S. patent office might not indicate much (if anything) about domestic innovation.
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.
The Big Story: Congress hears about startups’ need for clear data rules. Lawmakers have turned back to discussions of a federal privacy framework, including at a hearing this week on data security, which featured testimony from Engine focused on how startups need clarity and certainty around data security practices.
Storj is an encrypted, decentralized cloud storage provider that utilizes its own digital token to facilitate transactions. We spoke with Ben Golub, the CEO of Storj, about how their platform functions, the current uncertainty around cryptocurrency and digital asset regulation, and the importance of considering startups’ perspective in policy making.
The Big Story: SHOP SAFE bill advances despite potential to harm e-commerce startups and small businesses. In a first vote this week, the House Judiciary Committee advanced the SHOP SAFE Act, a bill that would create substantial costs and risks for e-commerce startups—making it harder for them to compete—and erect new barriers for entrepreneurs and small businesses who want to sell goods online.
Tomodachi is a social learning platform that enables students to create unique content and present work to audiences beyond the classroom. Started by a wife and husband duo, Na Xue and Ken Lo, with the mission of creating meaningful educational connections and providing a global, inclusive learning environment. We had the chance to speak with Na Xue—a former educator and co-founder of Tomodachi—about the origins of the company, regulatory challenges in EdTech, and the challenges women founders can face when building their startups.
“Engine is proud to support the Restoring the America Invents Act, introduced today by Senators Patrick Leahy (D-Vt.) and John Cornyn (R-Tex.). This bill would promote patent quality, help stem abusive patent assertion, and repair certain tools startups can and have used to challenge invalid patents. It also reflects the value of high-quality U.S. patents to promote innovation and embodies the balance needed to ensure that low-quality, invalid patents are not so easily weaponized against domestic innovators and small businesses.”
The Big Story: Congress hits roadblock on immigration reform
A potential pathway to citizenship for Dreamers—a group critical to the startup ecosystem—was derailed this week when the Senate Parliamentarian blocked Democrats’ efforts to include immigration reform in the $3.5 trillion reconciliation bill. Many Dreamers are entrepreneurs, and, as a group, they employ over 86,000 individuals across the country. Legislators are now considering alternative proposals to ensure immigration provisions remain a priority.
Melon is a Chicago-based company working to build and implement e-commerce solutions for an array of businesses that are increasingly relying on digital consumers, especially in the midst of the COVID-19 pandemic. Ryan Nicholson—Founder and CTO—told us why he founded Melon, the ongoing impact he’s seeing of COVID-19 on the businesses they work with, and how startups are looking for certainty across an array of policy topics.
The following statement is attributed to Kate Tummarello, Executive Director of Engine, regarding today’s introduction of the Unleashing American Innovators Act of 2021.
Statement:
“Engine is proud to support the Unleashing American Innovators Act of 2021, a bill that would expand startup access to the U.S. Patent and Trademark Office’s resources and services. The legislation, introduced by Senators Patrick Leahy (D-VT) and Thom Tillis (R-NC), would lower barriers to entry for underrepresented founders interested in seeking high-quality patents and enhance the PTO’s presence across the country so that the government can do an even better job of meeting innovators where they are at.”
In a series of State Policy Updates, we are exploring how state initiatives are impacting the innovation happening in startup ecosystems across the country. While much of Engine’s work centers on policy advocacy and education in the federal landscape, state-based policymakers impact startup formation and growth through their own work. We’re tracking what’s working for startups, what’s falling short, and what federal policymakers can learn from their state-level counterparts.
WithClutch is a software company working to provide access to easily refinance car loans through credit unions. Based in San Francisco, Calif., Nicholas Hinrichsen—Co-Founder and CEO—told us how he founded WithClutch, the challenges he’s faced while navigating the immigration system as an entrepreneur, and how his company has benefitted from the innovative environment provided by a regulatory sandbox in Arizona.
The America Invents Act (AIA), signed into law ten years ago today, was the most substantial update to the U.S. patent system in recent memory. Reflecting on the past ten years reveals the ways in which the AIA has supported startup success but also shows room for improvement.
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