Startup News Digest: 5/20/2016

Startup News Digest: 5/20/2016

Our weekly take on some of the biggest stories in startup and tech policy. In the wake of the Apple-FBI dispute, lawmakers have made encryption a top policy priority. Several Congressional working groups have now been established to determine the best approach to address regulation of encryption technologies, but very little of the public debate focuses on the detrimental impact any new rules could have on startups.

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.

Why Startups Need More Unlicensed Spectrum, and How They Can Get It

Why Startups Need More Unlicensed Spectrum, and How They Can Get It

Startups across the country are building the next generation of Internet applications, connected devices, and innovative services—all of which rely on access to unlicensed spectrum. This week, Engine joined a diverse coalition of 23 organizations and companies in urging President Barack Obama to ensure that enough unlicensed spectrum is made available to meet growing demand.

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.

Engine Statement on House Passage of Email Privacy Act

Engine Statement on House Passage of Email Privacy Act

Today, the U.S. House of Representatives passed the widely supported, broadly bipartisan Email Privacy Act by a unanimous vote of 419-0. The bill would make long overdue updates to the Electronic Communications Privacy Act (ECPA) to bring our digital privacy laws into the 21st century. Specifically, the bill would clarify that law enforcement must obtain a warrant—except in certain clearly defined emergencies—before accessing individuals’ electronic communications.

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. 

One Way Stock Options Are Hurting Businesses – And How to Fix It

One Way Stock Options Are Hurting Businesses – And How to Fix It

Among the many challenges entrepreneurs face in launching and scaling a startup, recruiting talented employees is one of the most difficult. There’s already a shortage of tech workers in this country (there are currently more than 600,000 open computing jobs nationwide, and last year, only 43,000 students graduated with computer science degrees), and it’s even more dire for startups that must compete with some of the most successful companies in the world to recruit these employees.

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 Tech Community Is Mobilizing Against the Burr-Feinstein Encryption Bill

The Tech Community Is Mobilizing Against the Burr-Feinstein Encryption Bill

It is hard to overstate how incredibly dangerous and foolish the Burr-Feinstein “Compliance with Court Orders Act of 2016” draft legislation is and even harder to believe it was coauthored by California’s senior senator, Dianne Feinstein, D-Calif., and Sen. Richard Burr, R-N.C.

Engine Statement on House Judiciary Committee Approval of ECPA Reform Bill

Engine Statement on House Judiciary Committee Approval of ECPA Reform Bill

Engine applauds the House Judiciary Committee’s action today to approve the Email Privacy Act, which makes much needed reforms to the outdated Electronic Communications and Privacy Act (ECPA) by explicitly requiring law enforcement to obtain a warrant before accessing digital communications.

Engine Joins Letter Opposing House Rate Regulation Bill

Engine Joins Letter Opposing House Rate Regulation Bill

In the year since the Federal Communications Commission (FCC) approved its historic Open Internet Order, net neutrality has faced countless attacks in both the courts and Congress. Once again, the Order and the FCC’s broader authority have come under fire. H.R. 2666, the “No Rate Regulation of Broadband Internet Access Act,” threatens the FCC’s ability to fulfill its congressionally-mandated responsibilities and represents yet another attempt by anti-net neutrality lawmakers to undermine an open Internet.

Momentum in Miami: Lessons from an Emerging Startup Ecosystem

Momentum in Miami: Lessons from an Emerging Startup Ecosystem

Across the country and far beyond Silicon Valley, new centers of startup activity are on the rise. Among them, Miami, Florida is one of the more exciting and dynamic cities emerging as a hub for startups. Not only are more entrepreneurs calling Miami home, but a real ecosystem is forming, complete with a new co-working and events space in the heart of Miami’s Wynwood district, investor groups with a renewed commitment to South Florida entrepreneurs, and a slew of meet-ups, conferences, and hackathons attracting students, programmers, entrepreneurs, and investors eager to be part of this transformation.