TLDR: Policymakers and Trump administration officials are holding discussions this week about the impending coronavirus relief package, but the lack of progress on a deal means that Americans and entrepreneurs are still waiting for much-needed support. As deliberations continue, lawmakers should consider a variety of proposals to strengthen currently available small business loan programs and pursue policies that will position startups and entrepreneurs to survive for the long-term.
Startup News Digest 07/31/20
The Big Story: Messy ‘Big Tech’ hearing fails to address startup competition. Big tech CEOs were in the hot seat this week during a House antitrust hearing ostensibly about anti-competitive practices. Instead, however, lawmakers used the opportunity to air a variety of grievances against large tech firms without offering a coherent plan for policymaking that could benefit the U.S. startup ecosystem. While some of the members of the House Judiciary Antitrust Subcommittee used Wednesday’s hearing with the CEOs of Amazon, Apple, Google, and Facebook to address startup concerns, the hearing clearly demonstrated that policymakers need to rethink their approach to competition policy by listening to the concerns of the entrepreneurial community if they truly want to support startup growth and innovation.
#StartupsEverywhere: Pine Bluff, Ark.
Pine Bluff is known as the ‘Bass Capital of the World’ because of its numerous recreational opportunities and bass fishing tournaments, but a group of local citizens and entrepreneurs is working to turn the city into a hub of business development. Go Forward Pine Bluff (GFPB), a non-profit organization, is working to improve education, local government, infrastructure, quality of life, and economic development in the city. The organization created an innovation hub in 2017 to help drive their economic development efforts. Known as The Generator at Go Forward Pine Bluff, the innovation hub is working to improve the digital skills of entrepreneurs, improve the city’s lagging broadband access, and support the long-term success of small businesses.
Section 230 back in the spotlight
TLDR: The Trump administration and policymakers are putting growing pressure on a bedrock Internet law that allows companies of all sizes to host and moderate user-generated content. Startups depend on this framework—known as Section 230 of the Communications Decency Act—to grow without the fear of being sued into bankruptcy over the user-generated content they host and moderate. Weakening this law would have a disastrous effect on the Internet ecosystem.
Engine Submits Letter to Senate on Copyright Fair Use and the DMCA
In recent comments filed with the Senate Judiciary Subcommittee on Intellectual Property, Engine emphasized the importance of copyright fair use and urged that it continue to be protected and permitted online. Fair use is an essential component of copyright law that allows creators and users to engage in certain authorized uses of copyright content, which is important because overly-rigid application of copyright law could otherwise stifle innovation and creativity. And as we explain in the letter, startup platforms in particular benefit from balanced copyright law because they are able to serve users and creators who rely on fair use without having to worry about potentially ruinous copyright infringement litigation.
Startup News Digest 07/24/20
The Big Story: In order to promote tech competition, Congress needs to hear from startups. While a planned House antitrust panel next week featuring the CEOs of Amazon, Apple, Google, and Facebook has reportedly been postponed, the startup community is still paying close attention to ongoing congressional discussions about allegations of anti-competitive practices by the country’s largest tech firms. Recent history has shown that efforts to combat the perceived dominance of a few tech firms often have counterproductive outcomes, and policymakers need to factor the U.S. startup community into their work moving forward.
#StartupsEverywhere: Denver, Colo.
PAIRIN, a startup based in the Mile-High City, is using the power of entrepreneurship to help people across the U.S. who have been displaced by the economic uncertainty caused by the COVID-19 outbreak. We recently spoke with Michael Simpson, Founder and CEO of PAIRIN, to find out how he is leveraging his background in technology and coaching to harness the power of workforce development, government, and education to maximize every person’s potential.
Startups Stand the Most to Lose after Privacy Shield Rollback
TLDR: Europe’s top court last week struck down Privacy Shield, a data transfer pact between the European Union and the United States that allowed U.S. companies to process and store European users’ data in America. The decision, which could have an outsized impact on U.S. startups, stems from U.S. government surveillance programs that European courts have repeatedly found issues with—especially in the wake of the disclosures from former National Security Agency contractor Edward Snowden in 2013. Without the U.S. scaling back its sweeping surveillance programs, however, it’s unlikely that the EU and U.S. will be able to agree on a new framework to replace Privacy Shield—something that growing startups need to reach potential users across Europe.
Startup News Digest 07/17/20
The Big Story: EU court strikes down transatlantic data transfer pact. The Court of Justice of the European Union this week struck down Privacy Shield, a transatlantic agreement that lets U.S. companies process and store European users’ data in the U.S. The ruling creates uncertainty for many U.S. and EU companies by jeopardizing the flow of data between Europe and the United States. The case, known as “Schrems II,” evolved out of Austrian privacy activist Max Schrems’ 2013 lawsuit following the revelations about the U.S. government’s surveillance programs by NSA whistleblower Edward Snowden.
#StartupsEverywhere: Washington, D.C.
The Inclusive Innovation Incubator (In3) is the first ecosystem builder focused on cultivating and supporting underrepresented entrepreneurs in the nation’s capital. Launched three years ago to improve diversity and inclusion in D.C.’s emerging tech space, In3 has held hundreds of events and supported more than 1,500 entrepreneurs looking to launch new businesses.
Support Entrepreneurship by Participating in Congressional Startup Day
TLDR: We’re now a month out from Congressional Startup Day, an event highlighting the importance of startup activity across the country. This annual event connects members of Congress with startups in their states and districts to learn more about the successes and challenges of being an entrepreneur. With the coronavirus pandemic having an outsized impact on U.S. startups, Congressional Startup Day serves as a timely opportunity for members to learn more about how they can support and highlight the work of their local entrepreneurs.
Startup News Digest 07/10/20
The Big Story: Startup community voices concerns about suspension of H-1B visas. U.S. startups are asking the Trump administration to reconsider a recent decision that will limit access to high-skilled talent amid the coronavirus pandemic. In a new letter, Engine and 118 startups, entrepreneurial organizations, and other companies—including Pinterest, Postmates, Reddit, and Twitter—are asking President Donald Trump to reconsider his suspension of work visas to high-skilled foreign workers, including those issued under the H-1B visa program. The letter comes after the president signed an executive order last week temporarily halting the issuance of work visas for foreign workers through the end of the year.
Engine, startups push White House to reconsider suspension of work visas
This afternoon, Engine released a letter signed by 118 startups, entrepreneurial organizations, and other companies—including GitHub, Postmates, Reddit, and Twitter—asking the Trump administration to reconsider its recent suspension of work visas for high-skilled foreign workers, including those issued under the H-1B visa program.
#StartupsEverywhere: St. Louis, Mo.
St. Louis is developing a reputation as a hub for entrepreneurs, ranking as one of the top U.S. cities for startups. One of the startups that calls St. Louis home is Venku, an online platform that connects outdoor enthusiasts with exciting on-the-ground experiences. Whether it’s fishing, hiking, hunting or exploring, Venku improves access to outdoor experiences by allowing people across the country to connect with expert hosts eager to take them on their next adventure.
Next Coronavirus Relief Package Should Address Startup Concerns
TLDR: When Congress returns from recess later this month, policymakers must ensure that they are effectively supporting startups in their fourth coronavirus relief package. In order to protect our nation’s startup ecosystem, however, Congress needs to look beyond currently available small business loan programs and examine other policy proposals that will enable startups and entrepreneurs to survive the pandemic’s economic fallout.
Startup News Digest 07/02/20
The Big Story: Congress extends small business loan program, but startups still need relief. Congress this week extended the deadline for startups and small businesses to apply for emergency funding from the Paycheck Protection Program (PPP), just hours before the loan program was set to expire. Under the measure, the U.S. Small Business Administration can continue to approve and offer PPP loans until August 8th to startups and small businesses that have been financially harmed by the coronavirus pandemic.
#StartupsEverywhere: Omaha, Neb.
In the Midwest, some local entrepreneurs—such as Nebraska’s Tom Chapman, the Founder and Managing Principal at Chapman & Company—are advocating for a fundamental shift in the way the U.S. approaches startup ecosystems. We recently spoke with Tom to learn more about his company’s work supporting the creation of high-growth startups, the unique needs and challenges for entrepreneurs in the Midwest, his latest startup venture, and how the Midwest’s unique startup system makes it well-suited to address the problems that have vexed more traditional U.S. tech hubs.
Startups Need Clarity When it Comes to Digital Currencies
TLDR: Telegram paid $18.5 million and returned the proceeds of its coin offering back to investors as part of a settlement with the U.S. Securities and Exchange Commission. The agency sued the firm last year for raising $1.7 billion through an initial coin offering to fund the development of its blockchain project, known as the Telegram Open Network. The settlement comes as U.S. cryptocurrency firms continue to seek regulatory certainty for the industry, including clear guidelines for digital coin offerings.
Startup News Digest 06/26/20
The Big Story: Congress increases pressure on vital Internet law. Policymakers are ramping up attacks on Section 230 of the Communications Decency Act, the 1996 law that has allowed startups that host user content to thrive. While this law provides online companies of all sizes with the ability to moderate users’ content without being held liable for users’ speech, the latest round of attacks on Section 230 have been largely framed around Internet companies’ content moderation practices—a difficult, time consuming, and expensive task for any online platform.