In reply to the question, “Why go to D.C.,” DBL Investors Managing Partner Nancy Pfund retorted, “Why not?"
Such was the consensus today between a panel of venture capitalists and tech-government relations experts, in a conversation covering the relevance of government policy to private company ecosystems. Goodwin Procter Partner Elise Zoli moderated the panel this afternoon in a short session at the seventh edition of the AlwaysOn & STVP Summit at Stanford.
Joe Kennedy, CEO of Pandora, garnered a bit of applause during his introduction, seemingly as congratulations for his legal victories in Washington announced in the first week of July. The Webcaster Settlement Act of 2009, proclaimed the piece of legislation that saved online radio, gives online radio stations and the recording industry a chance to come up with revenue sharing models.
Speaking from experience then, Kennedy emphasized the fact that even though most startups may be new to their industry or, like Pandora, even inventing a new industry, there already exists an “incumbent industry,” one deeply integrated into Washington and its laws. In Pandora’s two-year battle, Kennedy was going up against the recording industry, a coalition of companies that has been in Washington since the dawn of recording itself.
Agreeing that “incumbents are, of course, first in line,” NEA Partner Jon Sakoda still thinks it important to make Washington a partner. He said that companies cannot just go to the capital asking for whatever they want, but must prove their value by “explaining why their slice of the pie is important.”
Pfund reiterated this point, saying, "you shouldn't go in thinking you deserve anything. You need to build a case, understand the needs of the people you're talking to.” Congressmen get interested when a company translates their case into terms of job creation, tax revenue, or even global warming solutions.
The Vice President of Government and Political Affairs for TechNet, Betsy Mullins, mostly agreed with the rest, adding that, though lobbyists are very important in having somebody putting extended time into Washington, it is much more powerful for a CEO to make a trip to the capital, to personally interact with politicians.
As an example of this, Kennedy came off particularly touched by his interactions with Los Angeles congressman Howard Berman, nearly attributing the success of Pandora’s campaign in Washington to one solitary moment between the CEO and politician.
All in all, the panel appeared to forward three main points: know what you want, know that you don’t deserve it, and know how you can earn it. Tech startups who engage with Washington in a forward-thinking and everybody-wins manner will lead them to the desired fruits of their labor.
(image source: ABC News)
