Startup News Digest 05/19/23

Startup News Digest 05/19/23

The Big Story: Congress digs into recent bank failures. This week, committees in both chambers held hearings to examine recent bank failures, including the collapse of Silicon Valley Bank (SVB)—a key financial institution in the startup ecosystem. The collapse of SVB in particular devastated many across the innovation ecosystem, sending companies scrambling to withdraw funds and make payroll, uncertain if their full balances would be secured.

Startup News Digest 05/12/23

Startup News Digest 05/12/23

The Big Story: The difficulties of content moderation and the chance to try it yourself. Critics of the Internet industry, including policymakers, frequently complain about content moderation decisions and propose legislative changes that would make it harder for Internet companies to host, remove, demote, amplify, and curate user content. To help inform those conversations, Engine worked with Copia and Leveraged Play to develop a new video game this week—Moderator Mayhem—with the goal of highlighting the difficulties and the inherent tradeoffs Internet companies, especially startups, face while navigating moderating their users’ content. 

Startup founders travel to Capitol Hill with Engine to talk data privacy

Startup founders travel to Capitol Hill with Engine to talk data privacy

Data privacy has long been top of mind for policymakers, but in the absence of a comprehensive federal privacy framework, states have been passing their own unique privacy laws. That’s created pressure on policymakers in Washington to create national rules. When policymakers think about writing new rules for how companies can interact with consumer data, they often have only the practices of bad actors or the largest Internet companies in mind.

#StartupsEverywhere: San Francisco, Calif.

#StartupsEverywhere: San Francisco, Calif.

Fabio Caironi is the Founder & CEO of ByteNite, a company that specializes in making computing more affordable and powerful by distributing the task of data encoding. ByteNite enables users to join their distributed network of personal computing devices to earn rewards for the use of their computing power to process and store data. In addition to learning about how he thinks about issues of data privacy, we spoke with Fabio more about the company he’s building and his firsthand experience navigating the complex U.S. immigration system.

Startup News Digest 05/05/23

Startup News Digest 05/05/23

The Big Story: “Children’s safety” push for more data collection, content scanning. Lawmakers reintroduced and advanced legislation that would push Internet companies of all types and sizes to collect more data from their users and scan public and private user content in the name of childrens’ safety. The bills—including the Kids Online Safety Act, the Children and Teens’ Online Privacy Protection Act, which were reintroduced this week, and the Eliminating Abusive and Rampant Neglect of Interactive Technologies (EARN IT) Act, which advanced out of the Senate Judiciary Committee this week—would remake the regulatory framework that enables startups to grow and succeed. 

Startup News Digest 04/28/23

Startup News Digest 04/28/23

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.

#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

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.

#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

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.

#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

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. 

Startup News Digest 03/31/23

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.

#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

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.