Do Startups Lack Political Klout? Pushing the Innovation Agenda


Image via The Guardian

Tumblr’s 32.5 million users woke up last week to a vision of a dystopian future. ““WTF,” a frustrated fashionista working on her own startup wrote to Betabeat. “I can’t see any of my god damn archives. UGGGGHHH.”

Logging in to their dashboards, where they browse the stream of posts from the blogs they follow, users were greeted with text and images that were blacked out like the redacted sections of a classified briefing.

Those obscured blogs represented Tumblr’s take on American Censorship Day, a protest against the Stop Online Piracy Act (SOPA), which was going before a hearing of the Congressional Judiciary Committee that afternoon. The bill would allow companies to sue service providers like Tumblr or Facebook for hosting content like copyrighted music files or movies, a big reversal from the safe harbor provisions which had long defined internet piracy law.

The startup community, both entrepreneurs and the investors who back them, had been raising the alarm for several weeks about their concerns that this bill would cripple their ability to innovate and damage the internet economy. But if SOPA was the first real test of the political muscle of the entrepreneurs and small-business owners who are driving the tech sector, it was a test they would fail. Whether SOPA eventually becomes law or not, the issue provided a clear illustration to many in the startup world that they may be frighteningly unprepared to navigate the dangerous waters of Capitol Hill, where buttonholing trumps beta-testing and hard-nosed lobbying beats “likes.”

“We’ve got all these blogs and these Twitter followers, but when it comes to politics, I worry that we’re the tree falling in the wood and nobody is hearing us,” said Fred Wilson, New York’s most prominent venture capitalist and an outspoken opponent of the SOPA bill.

Mr. Wilson and his partner Brad Burnham had travelled to D.C. recently to put in face time with Senators and members of Congress. But he worries that talk is cheap, and the startup community won’t be able to wield much influence until it begins working through D.C.’s more traditional channels. “We’re outmanned and outgunned by the older, more mature industries,” he explained. “The startup community is beginning to find its voice, but we don’t have a PAC or lobbyists.

“When the startup industry has more friends in Congress and when we are giving more money, then we will have more say. But so far we have not had a lot of success.”

Do Startups Lack Political Klout? Pushing the Innovation Agenda