Startup News Digest 11/13/20

The Big Story: Recognizing the contributions of veteran entrepreneurs. Each year, almost 200,000 service members transition to civilian life. Armed with leadership skills, technical knowledge, and problem-solving capabilities, many of these veterans choose to launch their own startups and small businesses as a way of using their military experience to further serve the public good. In fact, the U.S. Small Business Administration has found that veterans “are at least 45 percent more likely than those with no active duty military experience to be self-employed.” With more than 2.5 million U.S. businesses owned by veterans—approximately 9.1 percent of the nation’s private sector companies—it is especially critical that these entrepreneurs and founders receive the attention and support that they need to thrive. As we reflect on Veterans Day and the contributions of those who have served our country, Engine wanted to take the opportunity to also celebrate just some of the contributions of veteran-led startups across the United States. 

U.S. Air Force veteran Chasity Wright used her military experience to launch and grow Infiltron, a startup that proactively secures data, devices, and technology with solutions that will be especially important as we increasingly adopt 5G technology. Chasity told us that stepping out of uniform and owning her own business allowed her to “test out things that came to mind while I was in the Air Force.” Because of her familiarity with aerospace systems, cybersecurity issues, and networking from her military service, Chasity was able to understand the vulnerabilities in these systems—thereby positioning her to come up with effective solutions as she entered the private sector. Within and beyond her work with Infiltron, Chasity is also dedicated to promoting social responsibility and diversity in tech; for example, focusing on “mitigating some of the risks that come along with inaccurate or biased facial recognition technology” and leading policy efforts to fund and support a diverse STEM pipeline in Georgia. She credits the “mission-minded culture and hard-working environment” of the Air Force as “an important part of [her] entrepreneurial journey.”

Another entrepreneur, Mike Slagh—the CEO of Shift—started a company designed to help service members and veterans access the opportunities, resources, and connections to advance their careers post-service. Mike started Shift not long after leaving the U.S. Navy to enable other veterans in search of careers to get “up to speed in new environments as quickly as possible.” In the Navy he had worked “closely with some of the best problem solvers—people with the ability to think linearly and laterally at the same time, and who are very good under pressure,” and he knew those were the skills required, for example, in emerging tech jobs. And through Shift he has created the connections service members can use to leverage their skills when entering the civilian workforce and given employers across the country easier access to this high-skilled and diverse talent pool. By partnering with DOD, Air Force, venture capital firms, tech companies, and others to provide industry-immersive experiences, Shift is helping bridge the gap between military service and full-time careers. 

While Veterans Day is only observed once a year, it is important for the startup community and policymakers to remember the numerous, daily contributions of veteran entrepreneurs all across the country. As we honor those who have served in uniform, let’s not forget to celebrate those service members who have used their military experience and knowledge to find entrepreneurial success across the United States. 

 

Policy Roundup:

Senate panel considers new FCC member. The Senate Commerce Committee held a hearing this week to consider the nomination of Nathan Simington to the Federal Communications Commission. Simington—a senior adviser with the National Telecommunications and Information Administration—played a significant role in drafting a petition to the FCC in response to President Donald Trump’s May executive order on “preventing online censorship.” Simington told the Senate panel that he does not plan to recuse himself from any Section 230-related votes at the FCC despite his work on the petition, a declaration that prompted Sen. Richard Blumenthal (D-Conn.) to threaten to hold up Simington’s confirmation.

PTO considers changes to weaken patent review. The U.S. Patent and Trademark Office is considering changes to its patent review procedures which is sparking concern because these review procedures are one of the most effective ways to challenge low-quality patents. As we have noted, review procedures that allow companies to ask the PTO for a “second-look” at low-quality patents and to cancel those that should not have issued, help startups avoid the problems caused by so-called “patent trolls.” 

EU plan to access encrypted communications draws pushback. Privacy rights advocates criticized a European Union proposal that would require tech companies to provide law enforcement officials with access to encrypted communications, with some EU policymakers saying that the plan would undermine security for all digital users. Opponents of the non-binding proposal said it represents an existential threat to secure communications and an escalation of the bloc’s growing reliance on invasive surveillance measures. 

 Maryland businesses organize against digital ad tax. A coalition of Maryland business groups launched a campaign this week urging state lawmakers to refrain from passing a controversial tax on digital advertisements, saying that the legislation—designed to target large tech firms—would harm small businesses that advertise online. The Maryland General Assembly passed the tax in March along a party-line vote, but Gov. Larry Hogan (R) vetoed the measure in May. Democrats, who hold a veto-proof majority in the Maryland state legislature, will decide whether or not to overturn the governor’s veto when they return in January. 

EU authority issues guidance following Privacy Shield rollback. The European Data Protection Supervisor (EDPS) recently issued new guidance to help EU companies comply with the European Court of Justice’s July decision to invalidate Privacy Shield—a transatlantic agreement that let U.S. companies process and store European users’ data in America—and open up for scrutiny other mechanisms for data transfer.

Startup Roundup:

#StartupsEverywhere: Warner Robins, Georgia. Infiltron is a veteran-founded startup that uses software and other solutions to safeguard personal information—especially biometric data and data on Internet-connected devices—from outside intrusion. We recently spoke with Infiltron’s Founder and CEO, Chasity Wright, to learn more about her startup’s work, how her experience in the Air Force shaped her entrepreneurial journey, and how her company is working to mitigate some of the risks and concerns associated with the use of facial recognition.

#StartupsEverywhere: San Francisco, California. Shift is a platform that provides current and former members of the U.S. military with the resources, guidance, and immersive experiences needed to advance their careers. We chatted with Mike Slagh, the CEO of Shift, to learn more about the startup’s work with veterans and service members, the importance of investment in talent and nascent technologies, and the criticality of veterans as a talent pool in the future economy.

Join us next week for a conversation about capital access policy. Engine is hosting a webinar next Tuesday, November 18th at 4 p.m. ET to discuss access to capital policy and how startups can work with policymakers to drive solutions to capital access barriers. We will explore some of the challenges that startups face when accessing capital, the unique roadblocks faced by underrepresented founders, and how COVID-19 has impacted the startup community. RSVP here.

#EngineStartupSpotlight. Each Wednesday, Engine is spotlighting a different startup on social media to highlight the policy issues affecting their business. Read this week’s spotlight here, or reach out to us here to be featured.