Startups struggle to have proper advocacy in government. They are often too small to build a policy strategy and too busy building to take time to participate in the process, but not having that voice can result in a huge negative impact for them.
Of the few groups that focus on developing a comprehensive policy strategy, most do so only at the federal level … but many of the problems startups acutely experience are actually at the state level of government.
While large amounts of funding may be appropriated at the federal level, regulations on how this funding flows to businesses and communities are determined at the state level.
Add this to the bistate nature of the Louisville and Southern Indiana region, and you can see why we are trailing as a region in startup development. Well-intentioned politicians 1. lack entrepreneurial experience, 2. never hear from startups about their problems and ways to improve their outcomes through better policy, and 3. have a mythical impression of startups informed by national media that is not the norm in most communities.
Recognizing these issues, we recently rallied about 50 leaders from across the country for a policy design workshop dedicated to addressing three critical areas:
- Supporting entrepreneurial ecosystems: Whether through economic development activities, technical assistance, or investment capital, we want to bolster the entrepreneurial landscapes in both Kentucky and Indiana.
- Advocating for better policy: We came together to learn best practices and pave the way for more founder-friendly policies, especially at the state level, where startups often face unique challenges.
- Empowering founders: From seed to Series B, we wanted to hear firsthand about the challenges founders encounter in growing, fundraising and sustaining their ventures.
This was the first time in our region's history that an organized group was specifically focused on entrepreneurship to develop a strategy with, and for, entrepreneurs. We wanted to bridge the gap between startups and effective government advocacy, creating a supportive ecosystem where founders are heard, and innovation thrives.
The policy design workshop could not have been possible without Render and Render Capital, Shelby Somervell from Greater Louisville Inc., and countless other partners from across the state, region and nation.
These were the key questions driving this initiative:
- What policies truly foster a founder-friendly environment, and how can we ensure their endurance in the ever-evolving business and financial landscape?
- What regulatory or policy changes are needed to guarantee that founders can access the capital necessary for confident business growth?
- How can we encourage bistate collaboration to ensure that regional success translates into wins for both states, preventing companies from relocating due to state-specific limitations on investment capital?
- How should startups interact with government entities at various levels (metro, state, federal), and what changes are necessary to support a thriving entrepreneurial ecosystem?
- How can we prime the pump for the emergence of funds and intermediaries focused on solving these problems? What roles do grant funding, creative debt and equity play in this landscape?
- How can we support innovative and high-risk funds and products working to level the playing field within venture capital across the country?
- What is needed to align foundations and community funders with entrepreneurship goals, creating a seamless connection between community and economic development initiatives?
- Is it possible to build a national model for collaboration and bistate policy that ensures founders are supported as they start and grow within their communities?
These are the policies that emerged as the most promising and ones we hope the entire region will work to see implemented alongside Amplify and GLI. We are currently continuing this committee effort to ensure we have a lasting voice in Frankfort and Indianapolis with the interests of founders in mind.
The call to action is simple: Show up and advocate for better policies. Let’s work together to see these proposals passed and to create annual opportunities to convene and champion better ways to help founders thrive in the Louisville and Southern Indiana ecosystem.
— Bryce Butler is the founder and managing director of Access Ventures, based in Louisville. Reach him at bryce@accessventures.org
