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🔗 Read the report and explore the full policy recommendations here: engine.is/s/Mapping-th...

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4️⃣ But you don’t need to take our word for it—throughout the report you can learn from startup founders discussing issues impacting them from open source, to data, copyright, talent, and more.

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3️⃣ AI touches so many parts of the economy, meaning AI policy isn’t about one bill or one framework. Startups need a policy agenda that unleashes innovation, encourages investment, creates clear rules, and opens markets.

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2️⃣ AI can be technical, but it is essential for stakeholders to grasp key topics in AI and how they intersect with startups and policy. The report features digestible topic-based explainers that are useful if you’ve ever had questions like: What are model weights? 🤔

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1️⃣ Startups are implicated at every level of the AI ecosystem, with startups building AI, building with AI, and using AI to better everyday tasks. That means policies impacting one part of the stack can reverberate and affect startups across other parts of the ecosystem.

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Center for Democracy & Technology @cdt.org · 24/04/2025

AI is a foundational technology driving innovation in every corner of the economy—especially in the startup ecosystem. Today, we’re releasing a report examining how startups are building in this space, key topics for policymakers, and how they can support U.S. AI startups.👇

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Reposted by Engine

@engineorg.bsky.social's ’s Kate Tummarello: Startups that host content know that they can end up in the crosshairs because of one piece of viral content, and are taking their cues from larger platforms… The focus might be on the large companies, but everyone’s watching.

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Engine @engineorg.bsky.social · 21/01/2025

With over two million monthly active users, the eponymous Boddle characters are in the hearts and minds of students and teachers alike. We sat down with Edna to discuss content moderation, access to technology in the classroom, and policies impacting EdTech.

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Engine @engineorg.bsky.social · 21/01/2025

Edna Martinson is bringing high-quality practice and assessments in English Language Arts and Mathematics to students everywhere.

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Engine @engineorg.bsky.social · 13/01/2025

As the co-founder of Path, he is focused on using AI to create scalable, personalized learning tools that bridge these gaps. We sat down with him to discuss his journey, the role of AI in education, and his vision for the future of learning. Read more: www.engine.is/news/startup...

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#StartupsEverywhere: New York, N.Y. — ENGINE

Engine supports the growth of technology entrepreneurship through economic research, policy analysis, and advocacy on local and national issues.

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Engine @engineorg.bsky.social · 13/01/2025

Chandler Malone, the founder of Path, witnessed the stark contrast in opportunities based on socioeconomic status growing up, which fueled his passion for making education more accessible.

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A Texas court temporarily blocked the Corporate Transparency Act’s Beneficial Ownership Info (BOI) rule, which would’ve required startups to file costly reports beginning year-end. Regulations have an outsized burden on startups, who should keep an eye on the rule’s status.

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USCIS finalized an H-1B rule modernizing the high-skilled visa lottery process, clarifying and streamlining certain elements, including codifying which entities are eligible for cap exemption. Policymakers should work to expand high-skilled immigration pathways.

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In the Senate, Sen. Tim Scott introduced The Empowering Main Street in America Act in September. The bill similarly expands capital access for startups and improves investor access. Policymakers should work quickly to improve cap access for founders in the new year.

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The House passed H.R. 2799, the Expanding Access to Capital Act, which increases funding for startups via an expanded pool of diverse investors. It notably expands the definition of accredited investor, supporting women, rural, and minority founders.

California Governor Gavin Newsom (D) vetoed California's SB 1047—a controversial bill to regulate AI development—which would’ve hindered innovation and harmed the startup ecosystem. Many are considering responses to AI that risks contributing to a burdensome regulatory patchwork.

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The Senate passed a legislative package called the Kids Online Safety and Privacy Act, which would drastically change how startups interact with their users. The legislation would lead companies to rely upon age verification and carries risks to user privacy & cybersecurity.

In July, over 80 countries reached an agreement on digital trade negotiations without U.S. participation. The text includes many helpful provisions, but exceptions may greenlight countries' efforts to restrict data flows, raising barriers for startups.

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The Supreme Court took a look at state laws on content moderation, explaining that the First Amendment protects an Internet platform’s right to ~not~ host user content. Mandates on how Internet platforms host, present, and moderate user content are unworkable for startups.

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Federal broadband affordability programs faced critical challenges, with the Affordable Connectivity Program expiring in May and the Universal Service Fund, which supports programs like E-Rate and Lifeline, under review by the Supreme Court.

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In May, Colorado passed the Colorado AI Act—the country’s first comprehensive AI legislation. The law is likely just the first of many and will create compliance costs that limits startup competitiveness.

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In April, the FCC revived net neutrality rules, preventing ISPs from engaging in blocking, throttling, or paid prioritization. The reinstallation of these vital protections—ensuring startups equal access to users—is now under review by the Sixth Circuit.

Countries failed to implement the global tax deal, setting the stage for a return and proliferation of harmful Digital Services Taxes (DSTs). Even whenDSTs target large companies, the costs are passed on to startups relying on their services.

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In January, the House passed bipartisan tax legislation to restore immediate expensing for R&D costs and expand the Child Tax Credit. Unfortunately the Senate failed to pass the bill that would have supported innovation, leaving the issues open for next Congress.

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As 2024 ends, we’re reflecting on the biggest policy developments that are shaping the startup ecosystem. Here’s how policymakers have influenced innovation—and what it means for the year ahead. 🧵

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The Biden administration sought to quash M&A activity. The incoming administration should chart a different course that recognizes the role acquisitions play in the startup ecosystem and ensures the U.S. remains at the forefront of global innovation.

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But you don’t have to just take our word for it! Visit the site to learn directly from startup founders discussing the importance of acquisitions in their own words. startupexits.engine.is#stories

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Acquisitions are the overwhelming majority of startup exits and they promote the building of knowledge, recycling of talent, and flow of capital through the ecosystem. Those components are key to building new startups and stimulating the investment needed to grow them to scale.

Startups Need Acquisition as an Exit Path - Engine Advocacy Reports

Successful exits are a critical part of the startup lifecycle and innovation ecosystem. That’s why today, we’re launching a new website dedicated to the role that exits—especially those via acquisition—play in the startup ecosystem! Check it out here: startupexits.engine.is 🧵

startupexits.engine.is

STARTUPS NEED ACQUISITION AS AN EXIT PATH Startup acquisitions promote the building of knowledge, recycling of talent, and flow of capital through the ecosystem. Each of those components are key to bu...

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9️⃣ Virginia’s Digital Replication Right Act advances, creating hurdles for startups by holding platforms and AI developers liable for unauthorized replicas of individuals’ likenesses. Generative AI and content-hosting startups face costly innovation and litigation challenges.

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AI Essentials: The role of data and where it comes from

8️⃣ This week in AI Essentials: Data powers AI innovation. Our blog dives into how startups source training data and what this means for competition. Policymakers must ensure small startups can access the data they need to innovate, grow, and compete. bit.ly/4gaF7wQ

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By Kyrylo Bakumenko, Min Jun Jung

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7️⃣ Retiring Rep. Patrick McHenry (R-N.C.) led his final hearing focused on innovation in finance. Members and witnesses discussed AI's role in financial services and ways to unlock private capital by broadening investor access to boost startup growth.

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6️⃣ A Texas court paused enforcement of the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act. While this ruling delays mandated reporting for startups, they should continue to follow along as the situation develops.

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5️⃣ Opportunity Zones are expiring in 2026, and startups need Congress to act. OZs drive investment in undercapitalized communities. Event Vesta’s Co-Founder urges Congress to reauthorize and improve the program to better support small businesses and startups.

4️⃣ With a slimmed down priority list, it’s unlikely Congress will make progress on these proposals. These bills have broad support to boost startups, but the new Congress must ensure they don’t get lost in a crowded agenda next year.

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3️⃣ The Spectrum and National Security Act, once in year-end discussions, would reauthorize FCC auction authority to fund initiatives like semiconductor incentives, NSF research, and the now-expired Affordable Connectivity Program—critical for startups and broadband access.

2️⃣ Several AI bills await broader action, including the bipartisan CREATE AI Act, which would authorize the NAIRR. This initiative expands access to compute, data, and tools for startups. Codifying the NAIRR through the CREATE AI Act would provide certainty for the program.

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1️⃣ Congress is narrowing its year-end agenda, leaving startup-critical proposals at risk. Lawmakers hoped to attach measures on AI and telecom to must-pass bills like the NDAA and funding legislation, but key opportunities for the ecosystem may slip through the cracks.

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Engine @engineorg.bsky.social · 09/12/2024

#ICYMI: Here’s last week’s top stories impacting the startup ecosystem: Congress leaves critical AI and innovation bills behind, Opportunity Zones face expiration, a court pauses startup reporting rules, and more. 🧵

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As the co-founder and CEO of Brightwave—an AI research assistant for finance professionals designed to enhance investment decision-making—he is committed to harnessing the power of language models to process vast quantities of information and identify mispriced assets.

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Engine @engineorg.bsky.social · 09/12/2024

With a deep understanding of the statistical realities shaping our world, Mike Conover recognized the limitations of human cognition in active asset management.

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We know that more investors from underrepresented communities are more likely to invest in underrepresented founders, making the startup ecosystem more equitable and, ultimately, more innovative: static1.squarespace.com/static/57168...

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More than 100 voices from the startup ecosystem called on Congress to pass legislation that would make it easier for more people from more backgrounds to invest in startups.

We’re also grateful to the startups who advocated for pro-innovation tax policy in comments to the House Ways & Means Committee. 40+ startups signed onto comments calling for tax policies that enable entrepreneurship and incentivize investment in startups: static1.squarespace.com/static/57168...

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