For decades, the tech and startup community paid little attention to Washington, D.C. Entrepreneurs chose to focus their energies on building their companies, without much regard for the happenings of Congress or state legislatures. But in recent years, startups have begun to recognize that the decisions made by policymakers in a distant city can have a huge impact on their day-to-day operations and bottom lines. While the lawmaking process might seem long, laborious, and, at times, incomprehensible, it is more important than ever for the entire startup ecosystem to proactively engage policymakers at all levels of government—not only to foster a startup-friendly environment but also to anticipate and shape important policy debates that will affect America and the tech and startup communities for years to come.
Startup News Digest 8/5/2016
Back in May, regulation crowdfunding went into effect, allowing anyone to invest in a startup through an online platform for the first time ever. But, as Engine has previously explained, we’re skeptical about the extent to which this market will truly take off given the current regulatory framework. We welcomed the House’s passage of Rep. Patrick McHenry’s Fix Crowdfunding Act (H.R. 4855) last month, which makes a couple of fixes from the startup community’s wish list like permitting special purpose vehicles. But the bill was heavily amended before passage, and as Evan argues in Bloomberg this week, it is missing a number of the startup community’s desired changes.
Startup News Digest 7/29/2016
Three weeks ago, Engine took a look at how the Democratic Party’s draft platform would impact the tech and startup communities. This week, the party released their final platform to coincide with the beginning of the Democratic National Convention (DNC). Building on their draft, Democrats committed to rolling out broadband to every American and added language around the deployment of next-generation 5G technologies and free, public Wi-Fi. Some changes were made around encryption as well. While the initial draft did not even mention the issue, the final platform pledged support for a “national commission” on encryption, an idea that has been championed by Sen. Mark Warner and Rep. Michael McCaul.
Heading West with Rise of the Rest
Engine is excited to announce that we will be hitting the road again this October for Revolution’s fifth Rise of the Rest tour. Rise of the Rest is a road show to highlight and support entrepreneurship across America. Over the past four tours, we’ve had the chance to see thriving startup ecosystems in places like Baltimore, Nashville, and Detroit.
Engine Submits Comments on Artificial Intelligence
Last Friday, Engine submitted comments to the White House Office of Science and Technology Policy (OSTP) on questions presented by the growth of artificial intelligence (AI) technologies. We highlighted the innovation being driven by AI startups across the U.S. and asked that policymakers keep this tremendous potential in mind when approaching AI. The policies pursued today will directly impact the future ability of the U.S. to remain a global leader in the emerging field of AI, and as such, policymakers should establish a legal framework that encourages innovation and growth.
Startup News Digest: 7/22/2016
As the Republican National Convention kicked off this week, GOP leaders released the final draft of their party platform. The platform included a commitment to several issues important to the tech industry, such as expanding broadband access and pushing back against over-regulation, as well as a nod to startups and small businesses by supporting an expansion of tax deductions for startup and small business expenses. The GOP also reaffirmed their commitment to digital privacy rights and called for a resolution to the ongoing encryption debate, though they declined to take a firm stand on the issue. Unfortunately, the party reiterated their ardent opposition to net neutrality, and language in the platform on high-skilled immigration reform and LGBT issues will likely disappoint the tech community.
Republicans Release Their Party Platform
As the Republican National Convention kicked off this Monday, the GOP also released the final draft of their party’s platform. The platform, which was written with input from the party’s base sourced via www.platform.gop, included generous mentions of issues important to the startup community.
Startup News Digest: 7/15/2016
Startups across the U.S. use stock options to attract and incentivize top talent. But as we’ve written before, the current tax code makes it difficult for employees to exercise those options requiring employees to pay taxes on their options even when there’s no public market to sell them to cover the tax burden. On Tuesday, Senators Dean Heller (R-NV) and Mark Warner (D-VA) and Representative Erik Paulsen (R-MN) introduced a bill aimed at remedying this.
Investing in the Internet economy of tomorrow
The incredible growth in mobile internet use over the past few years is nothing short of staggering. There are now around 6.4 billion internet connected devices worldwide, and that number is increasing by 5.5 million every single day. Some predictions suggest that we could reach over 20 billion connected devices by 2020, prompting a boom in the startups that will build the gadgets and services powering the coming Internet of Things (IoT). But such optimistic estimates assume that we’ll have the infrastructure to support billions of these connected devices.
Statement on Launch of Senate Broadband Caucus
Meaningful broadband access and affordability are essential to a vibrant entrepreneurial ecosystem. Startups rely on broadband to connect with users, develop innovative products and services, and run their daily operations. Access to quality broadband can also save startups an average of $16,000 per year, which is a significant amount for a company trying to get off the ground.
Statement on Approval of EU-U.S. Privacy Shield Agreement
In the months since the original Safe Harbor agreement was invalidated by the European Court of Justice, the startup community has been in legal limbo awaiting resolution. The approval of this revised trans-Atlantic data-transfer framework brings much needed certainty for American startups with European users.
Startup News Digest: 7/8/2016
Over 40 technology startups from across the country signed Engine's letter to Congress explaining why encryption is essential to their business operations and their users’ digital security and trust. “Encryption is at the heart of many of our products and services. Without the security and confidence that encryption provides, it would be difficult or impossible for us to find customers and investors, and ultimately, grow our businesses...
Startups should be watching as the Supreme Court decides Samsung v. Apple
Historically, startups have had little occasion to pay attention to the proceedings of our nation’s highest court. While arcane questions of constitutional law have an enormous impact on broader society, the Supreme Court’s activities are often too far removed from the challenges entrepreneurs must handle every day to simply keep their businesses afloat. But, an upcoming case on the Supreme Court’s docket may warrant a shift from this traditional mindset, as the outcome of the dispute could have a resounding impact on startups and small businesses in all industries.
40 Startups Tell Congress: Encryption Matters
Startup News Digest: 7/1/2016
Tech Companies Take Stock of the Brexit
As the dust settles from last week’s stunning Brexit vote, the broader tech community, which staunchly supported remaining a part of the European Union (EU), is taking stock of the potential repercussions of the decision. While the United Kingdom (UK) and the EU still have to negotiate the exact terms of the deal (assuming the British can cobble together a new government committed to the Brexit), uncertainty surrounds several key issues important to the tech community.
Clinton Releases Tech Policy Agenda
Throughout the long primary process, the tech world watched with growing concern as the candidates assiduously avoided focusing on many of the key policy issues impacting the technology sector. Considering both major parties have spent considerable time over the past few years trying to appeal to the tech world’s interests, it seemed odd that tech issues were receiving such little attention in the presidential election.
Startup News Digest: 6/24/2016
As the world reacts to the news of UK voters’ historic decision to leave the European Union, many are wondering what this means for the tech industry, which widely favored remaining in the EU. While the full consequences of the UK’s departure will take years to play out, the interim period could be one of great uncertainty for British and European tech firms, as well as for those U.S. companies with employees and customers across the pond.
FAA Makes It Easier for Commercial Drones to Fly
The Federal Aviation Administration (FAA) finalized its long-awaited small unmanned aircraft systems (UAS) rules on Tuesday, making it much easier for businesses to use drones for new and innovative commercial purposes. These rules provide much-needed clarity for the emerging drone industry and put the U.S. ahead of most countries, though significant gaps in the regulatory framework remain.
Face the Music: How the DMCA Promotes Innovation and Fosters Creativity
The RIAA and its allies in the traditional music industry continue to ramp up their efforts to undo one of the key laws that made the modern internet possible, releasing a letter to Congress yesterday signed by dozens of musicians arguing that the Digital Millennium Copyright Act (DMCA) is somehow ruining the music industry.