Between 2005 and 2018, the five biggest U.S. tech firms collectively spent more than half a billion dollars lobbying federal policymakers. But they shelled out even more in 2019: Facebook boosted its lobbying budget by 25%, while Amazon hiked its political outlay by 16%. Together, America’s biggest tech firms spent almost $64 million in a bid to shape federal policies.
Clearly, America’s tech giants feel they’re getting value for their money. But as CEO of Boundless, a 40-employee startup that doesn’t have millions of dollars to invest in political lobbying, I’m proposing another way. One of the things we care most about at Boundless is immigration. And while we’ve yet to convince Donald Trump and Stephen Miller that immigrants are a big part of what makes America great — hey, we’re working on it! — we’ve found that when you have a clear message and a clear mission, even a startup can make a big difference.
So how can scrappy tech companies make a splash in the current political climate? Here are some guiding principles we’ve learned.
You can’t make a difference if you don’t make some noise. A case in point: Boundless is spearheading the business community’s pushback against the U.S. Department of Homeland Security’s “public charge rule.” This sweeping immigration reform would preclude millions of people from obtaining U.S. visas and green cards — and therefore make it much harder for American businesses to hire global talent — based on a set of new, insurmountable standards. We’re doing that not by cutting checks to K Street but by using our own expertise, creativity and people skills — the very things that helped make our company a success in the first place.
By leveraging our unique strengths — including our own proprietary data — we’ve been able to put together a smart, business-focused amicus brief urging courts to strike down the public charge rule. And because we combine immigration-specific expertise with a real understanding of the issues that matter most to tech companies, we’ve been able to convince more than 100 other firms — such as Microsoft, Twitter, Warby Parker, Levi Strauss & Co. and Remitly — to cosign our amicus brief. Will that be enough to persuade the courts and steer federal policy in immigrants’ favor? The jury’s still out. But whatever happens, we take satisfaction in knowing that we’re doing everything we can on behalf of the entire immigrant community, not just our customers, in defense of a cause we’re passionate about.
Taking a stand is risky, but staying silent is a gamble, too: Consumers are increasingly socially conscious, and almost nine out of 10 said in one survey that they prefer to buy from brands that take active steps to support the causes they care about. It depends a bit on the issue, though. One survey found that trash-talking the president will win you brownie points from millennials but cost you support among Baby Boomers, for instance.
So pick your battles — but remember that media-savvy consumers can smell a phony a mile off. It’s important to choose causes you truly stand behind and then put your money where your mouth is. At Boundless, we do that by hiring a diverse workforce — not just immigrants, but also women (we’re over 60%), people of color (35%) and LGBTQ+ (15%) — and putting time and energy into helping them succeed. Figure out what authenticity looks like for your company, and make sure you’re living your values as well as just talking about them.
Tech giants might have a bigger megaphone, but there are a lot of startups in our country, and quantity has a quality all its own. In fact, the Small Business Administration reported in 2018 that there are 30.2 million small businesses in the United States, 414,000 of which are classified as “startups.” So instead of trying to shout louder, try forging connections with other smart, up-and-coming companies with unique voices and perspectives of their own.
At Boundless, we routinely reach out to the other startups that have received backing from our own investor groups — national networks such as Foundry Group, Trilogy Equity Partners, Pioneer Square Labs, Two Sigma Ventures and Flybridge Capital Partners — in the knowledge that these companies will share many of our values and be willing to listen to our ideas.
For startups, the venture capitalists, accelerators and incubators that helped you launch and grow can be an incredible resource: Leverage their expertise and Rolodexes to recruit a posse of like-minded startups and entrepreneurs that can serve as a force multiplier for your political activism. Instead of taking a stand as a single company, you could potentially rally dozens of companies — from a range of sectors and unique weights in their fields — on board for your advocacy efforts.
Every company has a few key superpowers, and the same things that make you a commercial success can help to sway policymakers, too. Boundless uses data and design to make the immigration process more straightforward, and number-crunching and messaging skills come in handy when we’re doing advocacy work, too.
Our data-driven report breaking down naturalization trends and wait times by location made a big splash, for instance, and not just in top-ranked Cleveland. We presented our findings to Congress, and soon afterward some Texas lawmakers began demanding reductions in wait times for would-be citizens. We can’t prove our advocacy was the deciding factor, but it’s likely that our study helped nudge them in the right direction.
Whether you’re Bill Gates or a small-business owner, if you’re quoted in The New York Times, then your voice will reach the same people. Reporters love to feel like they’re including quotes from the “little guy,” so make yourself accessible, and learn to give snappy, memorable quotes to reporters, and you’ll soon find that they keep you on speed dial.
Our phones rang off the hook when Trump tried to push through a healthcare mandate by executive order, for instance, and our founders were quoted by top media outlets — from Reuters to Rolling Stone. It takes a while to build media relationships and establish yourself as a credible source, but it’s a great way to win national attention for your advocacy.
To make a difference, you’ll need allies in the corridors of power. Reach out to your senators and congresspeople, and get to know their staffers, too. Working in politics is often thankless, and many aides love to hear from new voices, especially ones who are willing to stake out controversial positions on big issues, sound the alarm on bad policies or help move the Overton window to enable better solutions.
We’ve often found that prior to hearing from us, lawmakers simply hadn’t considered the special challenges faced by smaller tech companies, such as lack of internal legal, human and financial resources, to comply with various regulations. And those lawmakers come away from our meetings with a better understanding of the need to craft straightforward policies that won’t drown small businesses in red tape.
Political change doesn’t just happen in the Capital Beltway, so make a point of reaching out to your municipal and state-level leaders, too. In 2018, Boundless pitched to the Civic I/O Mayors Summit at SXSW because we knew that municipal leaders played a critical role in welcoming new Americans into our communities. Local policies and legislation can have a big impact on startups, and the support of local leaders remains a critical foundation for the kinds of change we want to see made to the U.S. immigration system.
It’s easy to make excuses or expect someone else to advocate on your behalf. But if there’s something you think the government could be doing better, then you have an obligation to use your company’s energy, talent and connections to push back and create momentum for reform. Sure, it would be nice to splash money around and hire a phalanx of lobbyists to shape public policy — but it’s perfectly possible to make a big difference without spending a dime.
But first, figure out what you stand for and what strengths and superpowers you can leverage to bear the problems you and your customers face. Above all, don’t be afraid to take a stand.
Eight years ago, Two Sigma Investments began an experiment in early stage investing.
The hedge fund, focused on data-driven quantitative investing, was well on its way to amassing the $60 billion in assets under management that it currently holds, but wanted more exposure to early stage technology companies, so it created a venture capital arm, Two Sigma Ventures.
Now, eight years and several investments later, the firm has raised $288 million in new funding from outside investors and is pushing to prove out its model, which leverages its parent company’s network of 1,700 data scientists, engineers and industry experts to support development inside its portfolio.
“The world is becoming awash in data and there’s continuing advances in the science of computing,” says Two Sigma Ventures co-founder Colin Beirne. “We thought eight years ago when when started, that more and more companies of the future would be tapping into those trends.”
Beirne describes the firm’s investment thesis as being centered on backing data-driven companies across any sector — from consumer technology companies like the social networking monitoring application, Bark, or the high performance, high-end sports wearable company, Whoop.
Alongside Beirne, Two Sigma Ventures is led by three other partners, Dan Abelon, who co-founded SpeedDate and sold it to IAC; Lindsey Gray, who launched and led NYU’s Entrepreneurial Institute; and Villi Iltchev, a former general partner at August Capital.
Recent investments in the firm’s portfolio include Firedome, an endpoint security company; NewtonX, which provides a database of experts; Radar, a location-based data analysis company; and Terray Therapeutics, which uses machine learning for drug discovery.
Other companies in the firm’s portfolio are farther afield. These include the New York-based Amper Music, which uses machine learning to make new music; and Zymergen, which uses machine learning and big data to identify genetic variations useful in pharmaceutical and industrial manufacturing.
Currently, the firm’s portfolio is divided between enterprise investments, consumer-facing deals, and healthcare focused technologies. The biggest bucket is enterprise software companies, which Beirne estimates represents about 65% of the portfolio. He expects the firm to become more active in healthcare investments going forward.
“We really think that the intersection of data and biology is going to change how healthcare is delivered,” Beirne says. “That looks dramatically different a decade from now.”
To seed the market for investments, the firm’s partners have also backed the Allen Institute’s investment fund for artificial intelligence startups.
Together with Sequoia, KPCB, and Madrona, Two Sigma recently invested in a $10 million financing to seed companies that are working with AI. “This is a strategic investment from partner capital,” says Beirne.
Typically startups can expect Two Sigma to invest between $5 million and $10 million with its initial commitment. The firm will commit up to roughly $15 million in its portfolio companies over time.