The Big Story: Over 65 startups call for uniform federal privacy law. This week, startups are calling on Congress to pass a federal privacy law that takes the startup ecosystem into account. A coalition of startups and support organizations across 26 states sent a letter to Congress urging lawmakers to pass a law that creates uniformity, promotes clarity, limits bad faith litigation, accounts for the resources of startups, and recognizes the interconnectedness of the startup ecosystem. The letter comes as states continue to enact their own unique data privacy laws, and as a Congressional committee explored the problems posed by a sectoral federal privacy landscape in a hearing this week.
#StartupsEverywhere: Flint, Mich.
With an academic and entrepreneurial background in the sciences, Utopic Ventures Founder and General Partner Neil Thanedar seeks to provide pre-seed capital to an underserved segment of the innovation ecosystem: scientist-run startups. We spoke with Neil about his passion for scientific and deep-tech companies, the impact of the accredited investor definition on the investing world, and his desire to make Michigan the next tech hub.
Startup News Digest 04/21/23
The Big Story: Non-compete ban would boost the startup ecosystem. Policymakers received thousands of comments this week as a key agency considers a change that would make it easier for people to leave their jobs, including to found and join early stage startups. In conjunction with the Juelsgaard Intellectual Property and Innovation Clinic, Engine submitted comments this week to the Federal Trade Commission urging the agency to move forward with a proposed rule change that would ban most non-compete agreements, which are post-employment contracts that bar workers from taking up jobs with competitors for a prescribed period of time.
#StartupsEverywhere: Hampton, Va.
100 percent-disabled veteran Dr. Ahmad Glover had a goal of developing touchless wireless power networking technologies that would recharge devices and provide power the same way that we get WiFi: over the air. We spoke with Dr. Glover about his unique experience with the U.S. innovation ecosystem, the importance of telecom and power in rural areas, and how policymakers should think about spectrum selloff and prioritizing
Engine submits comments to FTC on proposed non-compete ban
Engine is a non-profit technology policy, research, and advocacy organization that bridges the gap between policymakers and startups. Engine works with government and a community of thousands of high-technology, growth-oriented startups across the nation to support the development of technology entrepreneurship through economic research, policy analysis, and advocacy on local and national issues. Engine appreciates the opportunity to submit this response to the Federal Trade Commission’s request for comment on the Commission’s notice of proposed rulemaking banning most non-compete clauses in employment contracts.
Startup News Digest 04/14/23
The Big Story: Policymakers set their sights on artificial intelligence. This week saw a frenzy of activity from policymakers around the globe looking to regulate artificial intelligence technologies, which startups are increasingly leveraging in their products. In the U.S., federal agencies recently kicked off processes to examine AI and intellectual property as well as AI accountability, while Congress is exploring legislation. Abroad, policymakers have used existing regulations to ban certain AI tools and are looking to adapt their proposed AI rules.
#StartupsEverywhere: Chicago, Ill.
Innovare is an education technology company that aims to enable improvement throughout educational communities through the use of education management software and good data. The company’s platform helps educators centralize and analyze student data in order to guide better, data-driven decisions in the classroom. We spoke with AJ DeLeón, Co-Founder and CEO of Innovare, to learn more about his platform, his experience navigating various data privacy regimes—including why he favors a uniform, federal privacy standard, and his experience raising the capital necessary to build Innovare.
Startup News Digest 04/07/23
The Big Story: States continue adding to tech regulatory landscape risking additional burdens for startups. State legislative sessions are in high gear this spring, advancing tech legislation and threatening to grow a patchwork of varying rules startups must navigate as they grow. This week, for example, the Washington Senate passed a bill governing health information and other personal data. Their effort joins several other states putting forward proposals aimed at privacy and data security, online safety, and content moderation—that each will have noticeable ripple effects for startups.
#StartupsEverywhere: Atlanta, Ga.
Zinnia Founder & CEO Lauren Marturano founded her company with the goal of making offsite corporate planning a seamless process by simplifying travel and agenda planning for groups. We spoke with her about her experiences as a woman founder fundraising and building a product, the importance of startup accelerators, and how it’s been navigating data privacy issues.
Startup News Digest 03/31/23
The Big Story: R&D tax credit changes create tax bill for startups. Startups and other companies are facing higher taxes this year after a provision from a 2017 tax law went into effect recently. The law, the Tax Cuts and Jobs Act (TCJA), triggers a change to how the research and development (R&D) tax credit operates. Unless policymakers step in, startups and small businesses will have to weather the blow to their cash flow and may consider limiting future R&D costs. This could ultimately result in an overall reduction in innovation in the U.S., slowed economic growth, and decreased ability for our innovation ecosystem to compete with other countries.
#StartupsEverywhere: Santa Rosa, Calif.
After first hand experience with California’s water crisis, Lumo CEO Devon Wright decided to create a solution to make farmers’ water use cost-efficient and remotely accessible. We sat down with him to hear about his experience as a serial entrepreneur, the importance of broadband access to rural communities, and the ways the U.S. can realize our sustainability goals.
Change to R&D treatment could shoulder startups with hefty tax bill
For many startups, this year’s taxes will reflect a detrimental change to the research and development (R&D) tax credit thanks to a bill Congress passed in 2017. Without a Congressional fix, small businesses and startups without deep pockets will be less able to weather the cash flow burdens resulting from the change, and some companies may be facing hefty tax bills and will table plans for future R&D.
Startup News Digest 03/24/23
The Big Story: New research shows state privacy patchwork costs startups hundreds of thousands. Startups spend hundreds of thousands of their limited resources on privacy compliance, much of which goes to duplicative activities that don't further users' privacy, according to a report Engine is releasing today. The report, Privacy Patchwork Problem, chronicles the steps startups are taking to protect the data of their users and enumerates the costs, burdens, and barriers startups encounter—which reach into the hundreds of thousands of dollars. It underscores the need to give for a federal privacy framework that creates uniformity, promotes clarity, and accounts for the resources of startups, while creating consistent rights for their users located in every state across the country.
SVB: what happened, how the fallout impacts startups, what policymakers can do next
The fall of Silicon Valley Bank (SVB) dealt an immediate shock to the global startup ecosystem and will have lasting ramifications for banks and founders. Many startups lack access to large banks, and instead rely on community and regional banks to meet their needs. SVB in particular was uniquely situated to support the startup ecosystem, offering more favorable terms for loans and connections for founders. But the fall of SVB has led to concerns that other banks may suffer similar fates, and at the same time has brought to the forefront the risk inherent to the startup ecosystem.
Engine releases report on Privacy Patchwork Problem
Data privacy has been top of mind for consumers, policymakers, regulators, companies, and entrepreneurs for the past several years, in the wake of broad privacy rules in the EU, and action in several U.S. states. The U.S., which has long had a sectoral approach to privacy, remains without a comprehensive privacy framework, and many states have reacted by proposing, passing, and implementing their own varying—and potentially conflicting—comprehensive privacy laws.
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.
#StartupsEverywhere: San Francisco, Calif.
Vassil Mladjov is the chairman and investor at Tallio.io, a startup that delivers targeted Shoppable ads to TV viewers. Tallio aims to make the experience of watching TV more relevant to the viewers by personalizing the ad experience. We spoke with Vassil about the history of Tallio and how it pivoted from a live stream shopping platform to a personalized TV advertising system, as well as the current landscape of data privacy laws and the implications of allowing companies to copyright their application programming interfaces (APIs).
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.
#StartupsEverywhere: Framingham, Mass.
getWise is an online platform that offers affordable access to exclusive video tips and training from vetted and trusted experts. When major life events forced her to restart her career, founder Kathryn Rose used the power of her professional network and crafted a vision for getWise. We spoke with her about her arduous fundraising journey, navigating numerous privacy frameworks, and the need for resources for women entrepreneurs.
38 Groups From Public Interest To Industry Sign Letter Supporting Section 230 Ahead of Hearing
Washington – As the Senate Judiciary Subcommittee on Privacy, Technology, and the Law plans a hearing Wednesday on the law that enables online services to host user-generated content, diverse organizations from academics to industry to public interest groups sent a letter to Subcommittee leaders. The letter acknowledges that Section 230 is the legal framework that enables anyone to create spaces online where user communities can gather and share content, to the benefit of Internet users and online expression.