Protecting National Security While Preserving America’s Innovation Advantage

The United States has long been the world’s leading destination for venture capital because it welcomes entrepreneurs, talent, and investment from around the globe. Responsible foreign investment has helped fuel the growth of countless American startups, creating jobs, advancing breakthrough technologies, and strengthening U.S. competitiveness. 

At the same time, policymakers have a legitimate responsibility to safeguard national security by preventing strategic competitors from accessing sensitive technologies. As Congress and the Administration continue to modernize the Committee on Foreign Investment in the United States (CFIUS) process and implement outbound investment screening, reforms should be carefully tailored to address genuine security risks without restricting the capital formation that fuels American innovation. 

Policy Priorities

Modernize CFIUS Without Hindering Innovation 

CFIUS plays an essential role in protecting national security by reviewing foreign investments in sensitive sectors. However, the process should remain risk-based, transparent, and narrowly tailored to avoid creating unnecessary uncertainty for startups and investors. 

NVCA supports policies that strengthen national security while providing clear guidance, efficient reviews, and predictable rules for venture-backed companies and their investors. 

Preserve America’s Competitive Advantage 

The United States remains the world’s premier destination for entrepreneurship because of its deep capital markets, strong research institutions, and open innovation ecosystem.  

Policymakers should ensure that new investment restrictions do not create unintended consequences by discouraging capital formation or making it harder for startups to grow and compete. 

NVCA supports policies that reinforce America’s position as the global leader in innovation while balancing economic competitiveness and national security.

Meet The Policy Expert

Ashlyn Roberts
VP, Government Affairs