Posted on

Fundamentally altering antitrust laws will harm US startups and slow the economy


Linda Moore

Linda Moore is the president and CEO of TechNet, a bipartisan policy and political network.

More posts by this contributor

Computer science is the key to America’s skills crisis
The New Technology Policy Battlegrounds Are Getting Closer To Home

Bobby Franklin

More posts by this contributor

5 policies Washington should enact to end the climate crisis and joblessness
Taking stock of the VC industry’s progress on diversity, equity and inclusion

Neil Bradley

Neil Bradley is the executive vice president, chief policy officer and head of strategic advocacy for the U.S. Chamber of Commerce, the world’s largest business organization representing companies of all sizes across every sector of the economy.

The United States is the land of opportunity, where anyone with an idea can bring it to market. This philosophy has fueled America’s growth and prosperity and made the U.S. the global leader of innovation.
However, the very recipe that created America’s economic success is being threatened by proposals in Congress that will make creating a new business less attractive. Proposed changes to the existing framework of merger and acquisition law would handcuff successful businesses in every industry, have a chilling effect on investment in the next great American idea and close the door on the greatest engine of job creation our country has seen.
The startup ecosystem is unique. At the beginning, young businesses use capital from friends, family or even outside investors to help them get started. Not all are successful, and that’s OK. Those that do succeed graduate to other levels of financing, including angel or venture capital.
While some companies will eventually grow big enough to become public through the IPO process, most don’t. The regulatory impediments have made this more difficult, and, as a result, there is less than half the number of public companies than a generation ago. That’s why most entrepreneurs seek and welcome being acquired.
Acquisition is an attractive and common exit opportunity that contributes to the health of our economy. Last year, 886 venture-backed companies were acquired, while just 103 went public.
Acquisitions allow venture capital partners to make new investments in the next generation of entrepre …

Read More