Venture capital investment has been instrumental to the development of technology and the Internet, with venture firms partnering with the founders of iconic U.S. companies like Amazon, eBay, Facebook, Google, and Uber. Today, venture is building on past success to deliver next-generation products and services to the American public. In 2020, venture capital investors deployed $52 billion into software startups, 31% of total capital invested, and up from $45 billion invested in the space in 2019.
U.S. technological leadership has spurred consumer benefit and job creation due to the right blend of policy priorities over the last several decades. Going forward, it is vital policymakers redouble efforts to collaborate and grow the U.S. technology and Internet sectors, as well as reforming procurement processes so the federal government can fully utilize innovative services and products that startups are bringing to market.
Venture investors are focused on building ‘the next big thing’ that brings value and jobs to Americans. To do this, NVCA supports policies that spur technology startup activity:
- Regulation – A low regulatory burden so startups are not stifled as they disrupt incumbents.
- Procurement – Reforms to government procurement laws to allow fast-growing startups to more easily navigate the complex and costly acquisition process.
- Antitrust—Ensure reforms to antitrust laws do not harm the startup ecosystem by prohibiting acquisitions of venture-backed companies.
- Net Neutrality – Rules that ensure edge startups maintain fair and equitable access to consumers.
- Spectrum – Increased availability of spectrum to power access to innovative products, like IoT, apps, or on demand economy services.
- Global Digital Trade – Rules that enable cross-border data flows and ban data localization.
- Internet Governance – Ensure a globally connected Internet that is a home to free expression and commerce.