After what felt like a lifetime, the media has announced its new President. And, Joe Biden has got the world talking. Those running startups and those wishing to invest in them are all wondering what a Biden victory means? This then briefly unwraps some of the thinking.
Good, Bad, or Indifferent for Startups?
The new administration understands the importance of startups as part of building back better. Encouraging people to "Buy American," a $400 billion procurement program is to be established.
The next administration knows how valuable small businesses are for the country on many levels, not just in terms of tax raised. When its approach to growing the US economy is fully considered, there are more positives to take away from it. While there is still caution in these early days, confidence has not been, and neither should be lost in seed capital investment.
A Boost for Green Energy
One of the clearest elements of the vote Biden campaign was that of climate change. This is hugely positive for new businesses in anything environmental.
Companies such as Enphase Energy will be clear winners under Biden. Enphase Energy developed a microinverter that makes domestic solar power more productive, reliable, and smarter. Founded in 2006 by Martin Fornage and Raghu Belur, the company believes the microinverter business will be worth over $2 billion in the next few years.
To date, Enphase has received $75.5 million of investment and is listed in the NASDAQ. The company looks set to thrive under the green policies of the next government.
A Boost for Smaller Tech Companies
The Biden administration has looked closely at the big tech companies in the US. Accused of using Anti-Competitive strategies, this looks likely to send some jitters around the market.
For small tech startups, this could finally pave the way for success. Companies such as Ethos Life who provide ethical insurance options using advanced technology, is a company to watch. With more freedom in the market, this company, and many others, is set to grow.
Founded in 2016 by Lingke Wang and Peter Colis, the company has raised $106 million from ten investors to help further develop systems and the business. Not only does the technology make this appealing under a left-leaning government, but the entire ethical nature feels comfortable.
Without taking sides, a Democrat win for America could open more opportunities for small businesses in many fields. There are other challenges that Biden proposes to address and some undoing of prior legislation around taxes. The tax changes will undoubtedly be unpopular with wealthier people, yet it should free up more tax revenue to create a sustainable economy for small businesses.
Successful entrepreneurship drives new ideas and should help in the "Buy American" and "Make America Great" goal of both Republicans and Democrats.
Access to Best Investments
It's early days, but this turn of events “could” be a game-changer for small businesses in the US. The new administration's plans, policies, and attitude toward growing businesses will be different. So, now is the time to gain access to thousands of startups seeking investment, trade, and exposure.
The Fundz database of startups provides valuable information linking business owners with investors and third-parties, all of which could help capitalize on the changes about to happen in the US.