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

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.

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.

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? 🤔

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.

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.👇

@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.

#StartupsEverywhere: Tulsa, Okla. — ENGINE Engine supports the growth of technology entrepreneurship through economic research, policy analysis, and advocacy on local and national issues.

Learn more: www.engine.is/news/startup...

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.

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

#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.

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...

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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. 🧵

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.

Think you already know all this? 🧠 Check out the quiz to test your understanding of the role, type, and distribution of startup exits. Test yourself here: startupexits.engine.is#learn

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

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.