The Big Story: Policymakers threaten successful startup exits, investment. This week, federal agencies released new draft guidelines for merger enforcement that could reduce the number of acquisitions and negatively impact the ability of startups to successfully exit. The new draft guidelines come amid a parallel effort to revise the filing process for larger transactions, adding costs and new burdens to those acquisitions. Taken together, the agencies’ actions are designed to limit acquisitions, which are critical to investment and successful exits in the startup ecosystem.
#StartupsEverywhere: Wilmington, N.C.
Jim Roberts has led the transformation of the once tiny startup ecosystem of coastal Wilmington, North Carolina into an environment on par with cities like Charlotte and Raleigh. This has resulted in national attention and the establishment of Wilmington as an emerging hub for tech entrepreneurs. We spoke with Jim about the importance of community building organizations, his experience leading an angel investor capital network outside of a traditional tech hub, and the impact of a more restricted definition of an accredited investor on startups.
Paying twice? The persistent proposal that could upend the Internet and increase startup costs
Last month, a majority of the European Parliament voted in favor of a resolution contemplating a policy framework that could diminish startup competitiveness and endanger the open Internet. The vote is the latest in a long-running effort by telecom companies to force websites and apps to pay them based on the traffic they generate. That model, sometimes called “sender pays,” is gaining popularity with policymakers throughout the world—including in the U.S.—threatening net neutrality principles and the competitiveness of U.S. startups.
Startup News Digest 07/14/23
The Big Story: EU, U.S. implement framework to restore transatlantic data transfers. The European Commission this week adopted a needed decision to implement the EU-U.S. Data Privacy Framework, bringing certainty back to transatlantic data transfers and lowering barriers for startups. The long-awaited agreement ends years of uncertainty surrounding data flows needed for U.S. startups to serve EU customers thanks to the invalidation of an earlier transfer agreement called Privacy Shield. The new framework is a welcome step that will bolster the competitiveness of U.S. startups looking to serve the EU market.
State Policy Update: Legislatures around the country are wrapping up. What have they been up to and how will it impact startups?
As summer kicks into gear, state legislatures are closing up shop, but not before introducing and passing legislation impacting startups. In the absence of federal action on many technology policy issues occupying the public imagination, state legislatures have acted to create their own rules, which can vary slightly, significantly—or outright conflict with—each other.
Startup News Digest 06/30/23
The Big Story: Supreme Court strikes down Biden student loan relief plan. The Supreme Court this week struck down President Biden’s student loan relief plan that would have canceled up to $20,000 in student debt for qualified borrowers. The decision, while not unexpected, is a blow to the millions of Americans riddled with student debt, and individuals whose debt acts as a barrier to pursuing entrepreneurship.
Startup News Digest 06/16/23
The Big Story: House advances tax package with pro-startup provisions. A House committee advanced multiple tax bills this week that include several startup priorities. Legislation passed by Republicans on the House Ways and Means Committee includes two bills—the Small Business Jobs Act and the Build It in America Act—that would fix R&D expensing, create startup investment incentives, and fix reporting threshold. While the entire package faces uncertainty in the Democrat-controlled Senate, several provisions—including startup priorities like R&D expensing— have bipartisan support.
#StartupsEverywhere: Lafayette, La.
As a mom, Laurel Hess understands the difficulties of multitasking and juggling competing priorities around the home. She created hampr to provide busy people with freshly done laundry and community members with a source of additional income. We spoke with her about the multiple ways hampr benefits local communities, the impact of various data privacy laws on her business, and her experience as a mom and woman founder.
Startup News Digest 06/09/23
The Big Story: Startups call on Congress to fix R&D expensing. Lawmakers in both chambers of Congress took steps this week toward addressing a critical tax issue impacting startups’ bottom lines: a recently enacted change to how startups expense research, development, and experimentation costs. House and Senate lawmakers held two hearings this week exploring how the tax code, including incentives around R&D impact small businesses and startups.
Startup News Digest 06/02/23
The Big Story: House passes capital formation bills. The House passed several bills this week to improve capital access for startups, including by providing educational resources on capital raising options for underrepresented small businesses and another to broaden the pool of potential startup investors.
Startup News Digest 05/26/23
#StartupsEverywhere: Austin, Texas
Modgarden is on a mission to provide city residents with an opportunity to take control of the way their food is grown. After food cured his own illnesses, Founder and CEO Aamar Khwaja wanted to find a way for everyone to access organic, healthy food, and built tinyFarm. We spoke to him about his background on Wall Street, the unique difficulties he faces with a hardware company, and his goals for Modgarden.
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.
#StartupsEverywhere: New York, N.Y.
Mavity offers businesses a unique chance to find and hire a dream team of creative professionals at a fraction of the traditional cost and time. We talked to Co-Founder and CEO Tomás Uribe about his Colombian background, his experience within the U.S. immigration system, and the impact of having an international employment structure.
Statement on Gonzalez v. Google
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
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.
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.
Moderator Mayhem: A game to test your content moderation skills
We’ve worked with Copia and Leveraged Play to launch Moderator Mayhem, a video game that has players navigate the inherent tradeoffs around content moderation.
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.