I’m extremely excited that Senator Mark Udall (D-CO), the senior senator for Colorado, has signed on as a co-sponsor of The Startup Visa Act of 2010 that was originally proposed by Senators Kerry (D-MA) and Lugar (R-IN). Senator Udall joins his Colorado colleague in the House, Jared Polis (D-CO), who has proposed Startup Visa legislation as part of his EB-5 reform bill.
In addition, our friends at SVB Financial (the parent of Silicon Valley Bank) have also formally endorsed the Startup Visa. My partner Jason Mendelson wrote a post about a roundtable that Silicon Valley Bank hosted for members of “the new Democrat Coalition” which included Jared Polis. Shortly after this meeting, SVB formally endorsed the Startup Visa.
I’m really proud that two of Colorado’s members of Congress are leading the charge on the Startup Visa. I have deep respect for both Mark and Jared, their understanding of the importance of entrepreneurship, and their vision for innovation in our country. I’m also grateful that SVB – which has been an integral part of the entrepreneurial activity throughout the US – for their support as well.
We are working on a few additional major announcements and endorsements in the next sixty days. I’ve received a number of requests for ways to help. At this point, if you are part of an organization that you think would be supportive of the Startup Visa, please drop me an email and let’s talk about ways to get a formal endorsement.
Over the past 24 months, a deplorable activity in the money management business came to light. It got the name “pay to play” but was just another form of bribery. The common description of pay to play is “the practice of making campaign contributions and related payments to elected officials in order to influence the awarding of lucrative contracts for the management of public pension plan assets and similar government investment accounts.” Yup – sounds like bribery to me.
However, for some reason, the definition of this expanded to include any campaign contributions to any state or local officials, regardless of the size. So, if I contribute $1,000 to the campaign of the Colorado state treasurer, I violate this SEC rule and become someone who is “paying to play.” Now, as someone who gets multiple calls and emails most days to contribute to campaigns as an election approaches, I can assure you that it has never occurred to me to support the campaign for a state treasurer. However, I do know that a candidate for state treasurer has called me asking for campaign contributions. And I’ve politely declined.
After studying the implications of this ruling, I’ve decided it prohibits me and my spouse (Amy) from making any campaign contributions to state or local races anywhere in the country. The NVCA has also studied the new SEC rule and has come to the same conclusion:
“This ruling is consistent with guidance the NVCA has been providing members. It is now even more important to have a firm-wide policy against political contributions to these officials / candidates. This restriction does NOT include political contributions to candidates running for federal office (U.S. House of Representatives, U.S. Senate, U.S. President) nor does it include contributions to the NVCA PAC, which only gives to federal candidates.”
We’ve instituted this rule at Foundry Group, although it’s upsetting and offensive to me because I think it fundamentally violates my First Amendment rights. To err on the side of caution, we’ve determined that spouses cannot make state or local political contributions either. This infuriates Amy, as it should.
It’s even more upsetting when you consider that there is no cap on political contributions that corporations can make. The Supreme Court ruled on this in January stating that the government has no business regulating political speech. So, on one hand we have corporations who can give any amount to any candidate running for office while on the other hand my wife can’t contribute $1,000 to someone running for governor of Colorado.
Now, don’t misunderstand me – I think pay to play is grotesque. And Amy and I are huge advocates of campaign finance reform. However, the core problem of pay to play is bribery, not the active support of state and local candidates for office by individual citizens. They are totally different things and should be able to be easily and cleanly differentiated, without the government regulating my political speech.
I’m in Washington DC again – this time to talk about innovation. I’ve been here three times in the past year – the first time was to hear Bilski at the Supreme Court in November and then I was back in March to talk about and promote the Startup Visa.
Yesterday, Thomas Friedman article wrote another great OpEd about the topic titled A Gift for Grads: Start-Ups. As with many Friedman OpEd’s, rather than just railing against the situation, he suggests several specific things that can be done – in this case by the current administrationb. His premise is that to solve the unemployment issue, especially among recent college graduates, we need three things: more start-ups, more start-ups, and more start-ups. And to do this, Friedman talked to Robert Litan (vice president of research and policy at the Kauffman Foundation) and Curtis Carlson, (CEO of SRI International) and came up with the following.
I strongly agree with each of these. My one small addition to the Secretary Newco idea is that person should be an accomplished entrepreneur rather than a career politician, policy person, academic, or lawyer.
Over the next two days I’ve got a meeting with each of my Colorado Senators (Michael Bennet and Mark Udall) as well as a summit at the White House led by Phil Weiser (Director of Technology and Innovation for the National Economic Council), Aneesh Chopra (CTO of the US), and Vivek Kundra (CIO of the US). Our summit includes a small group of VCs from different parts of the US that I’ve helped put together and it’ll focus on the issue of early stage entrepreneurs and innovation throughout the country (specifically – more than just Silicon Valley). I’m also participating in a roundtable titled Implementing The National Broadband Plan and Protecting Consumer Choice: The Venture Capitalist Perspective with fellow VCs Brad Burnham from USV and Santo Politi from Spark Capital. And, as a special bonus, I’m going over the CIA later today for a tour, although I can’t talk about it, so you didn’t just read that.
I don’t spend a lot of time in DC, in politics, or even following politics (I’ve never been a political junkie) so these short immersions are fascinating to me. Hopefully when I look back on the time I’ve spent on this stuff I’ll feel like it’s been a productive effort for the cause of entrepreneurship and innovation in the US which is the thing I spend all my time actually working on by helping create new companies.
I got anxious just reading the book You, Me & The U.S. Economy.
Last Thursday, I had a beautiful dinner at Susan and Richard Casey’s house. The Casey’s co-founded and run Square 1 Bank and have become good friends over the past few years. During dinner we had a wide ranging conversation about a bunch of things “not-tech.” On my way out, Susan handed me a book titled You, Me & The U.S. Economy by her friend Stacy Carlson. I tossed it in my bag along with the book Richard gave me (Thomas Sowell’s Intellectuals and Society). I started reading it last night and finished it up today.
It lived up to its subtitle “A Plainspoken Story of Financial Crisis.” The only other book I’ve read on the financial crisis of 2008 was Andrew Ross Sorkin’s Too Big To Fail. Amy and I were in the UK on a week off the grid from 9/12/08 to 9/20/08 so we left as the crisis was blossoming and returned to a very different financial superstructure. I found Too Big To Fail to be riveting but felt that it was missing something. After reading You, Me & The U.S. Economy I realized that Sorkin was doing too much storytelling and didn’t really get under the skin of some of the massive intellectual contradictions going on. I think Carlson filled that gap for me without necessarily trying.
Carlson was Paulson’s speechwriter during the financial crisis. The book is told in her voice and describes the events as they unfolded. She does it is clear language (she is a speechwriter after all), is delightfully self-deprecating, and defines and endless array of terms and acronyms in a way that a human can understand. She also gives a somewhat different view of the events from the inside – less drama and inside baseball than Sorkin, but just as much sense of stress, anxiety, and urgency.
If you are interested in the history of the financial crisis, want to understand what it looked like from the inside to someone who was part of the battle but not on the front lines, or just want a dose of anxiety, you’ll enjoy You, Me & The U.S. Economy.