capital access

Startup News Digest 1/4/2019

Startup News Digest 1/4/2019

New year, new Congress, same issues. The new year and the new Congress kicked off this week, but many of the policy debates that concerned startups in 2018 will continue on. As the Democrats take control of the House and the gavels of key committees, expect vigorous oversight of the Trump administration across the board, which is likely to impact several of the policy areas startups care most about, including trade, net neutrality at the Federal Communications Commission, and more.

Startups Applaud Senate Committee for Changes to Tax Bill

Startups Applaud Senate Committee for Changes to Tax Bill

After more than 600 startups, investors, and innovators from across the country wrote to lawmakers this week, warning about the devastating consequences of a proposed tax change that could hurt small companies competing for talent, Engine applauds the Senate Committee on Finance for recent modifications to the Senate Tax Plan.

Engine Statement on the Support Our Startups Act

Engine Statement on the Support Our Startups Act

"Engine is proud to support the Support Our Startups Act, a bill that would reduce tax burdens on entrepreneurs in their first year of business. The bill from Sen. Tammy Baldwin (D-Wisc.) would help startups hit the ground running by increasing they amount they can write off as federal tax deductions in their first year.

Engine Welcomes House Passage of the HALOS Act

Engine Welcomes House Passage of the HALOS Act

On Tuesday, the U.S. House of Representatives passed the Helping Angels Lead Our Startups (HALOS) Act by a vote of 344 to 73, an even wider margin of support than when the bill passed the House during the previous Congress. Engine applauds the House passage of the bill, which would clarify regulatory ambiguities around general solicitation to ensure that startups aren't unintentionally running afoul of securities laws when participating in demo days and pitch competitions

2016 Year in Review: Capital Access + Tax

2016 Year in Review: Capital Access + Tax

2016 brought with it many positive developments for startups in terms of capital access and tax policy. Investment crowdfunding finally went live, a number of bills to facilitate capital formation passed the House, and the startup community galvanized around a tax bill that would make it easier for startup employees to exercise their stock options. While many of these policy changes hang in limbo going into 2017, we believe that next year holds significant promise for improvements to the tax and financing policy landscape for startups.

 

Engine Statement on House Passage of Capital Access Bills

Engine Statement on House Passage of Capital Access Bills

Today, the House of Representatives passed a package of bills that will improve the capital access landscape for innovators across the country, including the Micro Offering Safe Harbor Act (H.R.4850) and the Private Placement Improvement Act of 2016 (H.R.4852). With the approval of these two bills, the House has now passed four of Engine’s 2016 legislative priorities related to capital access. 

An Opportunity to Fix Crowdfunding Before It Falters

An Opportunity to Fix Crowdfunding Before It Falters

On May 16, 2016, regulation crowdfunding will go into effect, meaning for the first time ever,anyone can invest in a startup through an online platform. This is big. Until Congress passed the JOBS Act  in 2012, buying an equity stake in a company required being fairly wealthy or having a pre-existing relationship with the entrepreneurs raising capital. But the Internet has dramatically changed the way entrepreneurs share their ideas and connect with potential investors. With the JOBS Act, the law finally caught up as well – or it almost did.

Calling All Accelerators: SBA Launches Growth Accelerator Fund Competition

Calling All Accelerators: SBA Launches Growth Accelerator Fund Competition

Do you run a growth accelerator, incubator, co-working space, shared maker-space, or other entrepreneurial ecosystem organization? If so, you might be eligible to compete for a $50,000 prize from the government. Last week, the Small Business Administration (SBA) launched its Growth Accelerator Fund Competition for the third year in a row. Each year, the agency awards $50,000 prizes to selected organizations to help cover part of their operating budgets.

Engine Statement on House Passage of the HALOS Act

Engine Statement on House Passage of the HALOS Act

Engine applauds the U.S. House of Representatives’ passage of the Helping Angels Lead Our Startups (HALOS) Act. The bill, which was approved by a wide margin of 325-89, would clarify regulatory ambiguities around general solicitation, making it easier for startups to publicly showcase their ideas without unintentionally running afoul of securities laws.

An Outdated Law Shouldn't Limit Demo Days

An Outdated Law Shouldn't Limit Demo Days

The pitch competition has practically become a standard rite of passage for startups, especially early-stage firms seeking investment. Yet, many pitch events may violate decades-old securities law. Congress is now considering legislation to fix this: The HALOS Act. Sponsored by Rep. Steve Chabot (R-OH), this legislation clarifies the rules around pitch competitions, making it easier for startups to pitch their business plans and find potential investors. 

Four Years of the JOBS Act: Examining Its Impact and Looking Forward

Four Years of the JOBS Act: Examining Its Impact and Looking Forward

April 5, 2016 marked the four year anniversary of the enactment of the Jumpstart Our Business Startups (JOBS) Act. While the statute is still relatively young, we have already begun to see the positive impacts that its provisions have had on startups’ ability to raise capital. It has made going public easier and created new pathways for startups to raise money through Regulation A+ and general solicitation under Regulation D. And with regulation crowdfunding set to finally go live in May, we are hopeful that a vibrant non-accredited investor crowdfunding market will emerge in the near future.

The SEC could change the requirements for investing in startups, and that’s not good

The SEC could change the requirements for investing in startups, and that’s not good

As strange as it may seem, only a small percentage of Americans can legally invest in most startups today. Under long-standing rules governing who qualifies as a so-called “accredited investor,” only quite wealthy individuals (those make at least $200,000 in annual income or have $1 million in assets, excluding their home) can buy shares in a fast-growing, privately held company.