The CEO of the largest business advocacy group in America, the United States Chamber of Commerce, outlined a plan to spur half a million new startups and hundreds of new initial public offerings in 2020 at his annual State of Business Address in Washington, D.C. last week.

“If we want to create more wealth and opportunity for all Americans, the answer is more business, not less,” longtime CEO Tom Donohue said. “We need a wakeup call in this country that disincentivizing growth and disparaging corporations is no way to generate collective prosperity.”

Donohue called on “bipartisan” leaders across business and government at all levels to “reinvigorate the American innovation machine” by promoting measures like new technology and industry to address climate change, immigration reform and the “side gig” economy.

These are just a few of hundreds of challenges the Chamber is taking on this year to push the nation forward in reaching a goal to surpass 500,000 business creations and 250 new initial public offerings (IPOs) annually, he said.

Startup revival for “collective prosperity”

Business growth is not just about corporate profits, he said. It’s about trillions of new dollars for employee wages and local, state and federal taxes for schools, social programs, government operations and highways and infrastructure, he said.

New business growth reduces “income inequality,” Donohue said. But instead of growing in America, startups are declining, according to U.S. Census data, Donohue said.

“We should all be troubled that we have 20 percent fewer startups than we did three decades ago, when we were a smaller country,” he said. “We should all be worried that there are half as many public companies today as in 1996.”

Arizona haven for startups

Meanwhile, Arizona is in a better position than many states in startup creation.

The state’s two largest universities spin out a steady stream of startups in bioscience, technology, water conservation and other industries annually.

Last year, University of Arizona startups alone pumped $585 million into the economy, according to a report released last month by the university’s McGuire Center for Entrepreneurship.

Arizona and metro Phoenix consistently rank among the top places to start a business by various publications and organizations. A released last month by content and comparison platform Comparisun named Arizona the fifth-best state in which to launch a startup.

Challenges ahead

During his speech last week, Donohue highlighted a number of challenges it will embark on addressing this year, including threats to the gig economy, harmful isolationist trade policy and climate change.

Threats to the “side gig” economy

One battle this year will be to stand up against recent attacks at the state level that are eroding opportunities in the gig economy and other business sectors, Donohue said.

Of concern is one law just passed in California that alters the definition of private contractors and freelancers. Employers will now be required to provide benefits to a new class of worker.

“Under such proposals, Lyft and Uber drivers would be deemed employees and not independent contractors,” Donohue said. “The result? The business model that has revolutionized entire sectors of the economy will screech to a halt. The same is true for the innovation we are seeing in everything from home repair tasks to grocery delivery.

“At stake is the flexibility and independence that have made “side gigs” or second jobs an important part of how millions of Americans support themselves and their families,” he said.

Such regulations impact not only drivers for ride-hailing services but other industries as well.

The U.S. Chamber released a�� detailing how new state regulations of the gig economy will suppress business opportunities and limit consumer choice and services.

States’ adopting costly data privacy rules

Another initiative will be to fight encroaching states’ regulations over data privacy.

As federal lawmakers have failed to adopt a national policy for data privacy, states are stepping in. That’s proving costly for businesses, Donohue said.

He cited California’s new Consumer Privacy Act and said the initial price tag of compliance is $55 billion in the state, with small businesses facing up-front costs of $50,000 each.

“Washington’s inability to make progress on data privacy is resulting in a patchwork of state rules and regulations that will stifle the free flow of goods and services across state borders,”�� he said. “Can you imagine effectively running a company when you have 50 different sets of standards to comply with? This would create conflict for businesses, confusion for consumers, and increase costs for everyone.”

Other goals and challenges for 2020 include:

Global competitiveness and free trade

Donahue said America must show proactive leadership around the world to foster U.S. businesses.

“Engaging with the world is our best strategy for strong national security and lasting prosperity,” Donohue said. “Embracing free trade doesn’t mean ignoring unfair practices aimed at us. It means leading the way in setting the rules and enforcing them, based on the simple propositions that more trade is better than less trade, more customers are better than fewer customers, and expanding markets globally will benefit everyone.”

He lauded the U.S. House passage of the United States-Mexico-Canada Agreement (USMCA) and raised the need for trade agreements with the United Kingdom, the European Union, Japan, Brazil and markets in Africa. He stressed the importance of U.S. engagement in the booming Asia-Pacific.

Immigration reform

Donahue said action is needed to update cumbersome immigration practices to make it more efficient for businesses to hire qualified foreign workers of all skill levels.��

Climate change innovation

Donahue said he wants to see research and development of new technology and industry to tackle climate issues. Currently, there are 35 bipartisan bills in Congress designed to help address climate change through innovation and investment.

Passage of a comprehensive infrastructure package

As the nation’s highways, bridges, water and sewer systems and other infrastructure continue to deteriorate, Congress must step up, Donahue said.

Abusive class action lawyers

States are increasingly fertile ground for business opponents to advance questionable agendas, Donohue said, including the class action trial bar’s sweeping new focus on municipality litigation targeting businesses under the public nuisance law.

Bipartisan politicians

Real change will require bipartisan politicians, Donohue said.

“The business community must not, and will not, stand on the sidelines of these debates,” Donohue said. “While the Chamber never engages in presidential politics, we will praise or criticize proposals by presidential candidates from both parties. We will lead the opposition to the policies that undermine the job creators, that penalize the innovators and that target the wealth creators and investors that allow Americans to provide for their families and plan for their futures.”

To read more about Donohue’s address, go to:

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Tucson nonprofit Community Investment Corporation recently announced it has teamed up with Startup Tucson and San Francisco-based crowdfunding platform Wefunder to bring equity crowdfunding and startup support to the southern Arizona city.

In partnership with CIC, Wefunder’s will provide opportunities for companies that might not be ready for typical venture capital or angel investments. According to CIC, funding rounds are not limited to smaller amounts but are generally lower than typical equity fundraising.

“We want to ensure that Tucson entrepreneurs have access to the capital they need,” said Danny Knee, . “Partnering with one of the most mature and visible crowdfunding platforms like Wefunder is a great way to expand access.”

Gov. Doug Ducey signed a bill in 2015 to allow small businesses and entrepreneurs in Arizona to raise money from the general public through equity crowdfunding.

House Bill 2591 allows companies to raise up to $2.5 million and non-accredited investors to give up to $10,000 each.��

“We’re in favor [of this law] because there is a need for more refined instruments on how people can raise capital,” Mitzi Montoya, vice president and dean of entrepreneurship and innovation at Arizona State University, . “Crowdfunding is an excellent concept to leverage that social network for investments.”

According to Montoya, equity crowdfunding empowers small businesses and entrepreneurs with wider access to capital, providing more funding options than just banks, family and friends, and angel investors.

HB 2591 has paved the way for the new partnership between CIC, Startup Tucson and Wefunder.

The alliance came just in time for Tucson’s TENWEST Impact Festival, an annual week-long festival that gathers “forward-thinking minds” to for creating social, environmental and economic impacts.

, which took place from Oct. 11 to 20 this year, first started in 2015 as Arizona’s version of the popular South by Southwest festival in Austin, Texas.

Knee also credited TENWEST leadership at , including executive director Liz Pocock and programs and events director Dre Voekel, with helping seal the deal with Wefunder.

is a nonprofit organization that supports economic development in the Tucson region by providing current and aspiring entrepreneurs with education, networking, mentoring and a free membership program to help them grow their businesses.

Wefunder was founded in 2011 but has recently become more involved in local community fundraising, according to CIC.

“CIC caught wind of this interest and began conversations with Wefunder in late spring of this year,” the company said in a statement.

What caught Knee’s attention were the values Wefunder’s executives expressed and their rationale for expansion to smaller cities like Tucson, according to the statement.

Wefunder has funded 307 startups with $108.5 million and venture capitalists have invested over $2 billion more in Wefunder’s portfolio of successfully funded businesses.

“It was not a profit play for Wefunder,” Knee said. “They are truly all about the democratization of capital and investing. They are about just like CIC is.”

Businesses that want to seek funding through the new partnership can

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Intel Capital, Intel Corporation’s global investment organization, announced $117 million of investments at the in Phoenix, adding 14 “disruptive” tech startups to its ever-growing portfolio of data-centered companies from around the world.

“At Intel, we’re focused on pushing the boundaries of technology to make amazing experiences possible,” an Intel Capital spokesperson said. “Each of these new portfolio companies is pushing disruptive technologies that advance key areas of focus for Intel.”

New investments continue to signal Intel Corporation’s transition into a data company, shaking up the startups’ respective industries and supporting the advancement of technology intended to improve health, convenience and quality of life for consumers.

“We’ve invested behind new applications of technology, with a shift from manufacturing to service-based solutions, such as smart health care, service robots and AI,” the spokesperson said. “Other investments include IoT, (robotics, drones, connected cars), as well as datacenter hardware and software.”

Intel Capital’s mission is two-fold: create a return on investment for Intel shareholders and support Intel Corporation’s strategic objectives and break ground on new tech.

“Intel has driven disruption for the last 50 years, changing the way we live by making compute ubiquitous,” said Wendell Brooks, president of Intel Capital and senior vice president of Intel Corporation, at the summit. “Intel Capital is continuing that legacy of disruption with these investments. These companies are shifting the way we think about artificial intelligence, communications, manufacturing and health care — areas that will become increasingly essential in coming years as the linchpins of a smarter, more connected society.”

Intel Corporation set up shop in Arizona in 1979, beginning operations in Chandler the following year. Today, the company has more than 10,000 , manufacturing microprocessors that power data centers and hundreds of millions of devices worldwide.

The company’s annual economic impact in Arizona is about $5.3 billion, according to a 2013 study by Arizona State University.

Intel Capital launched the Intel Capital Diversity Initiative in 2015 to provide diverse startups access to Intel Capital’s business development programs, global network, technology expertise and brand capital.

More than 10 percent of the portfolio is now led by entrepreneurs from underrepresented communities, which Intel Capital believes is “an essential part of making the tech industry more inclusive for everyone’s benefit,” the spokesperson said.

In 2018, Intel Capital invested $391 million in 89 companies, 22 percent of which were made in diverse companies. Four companies completed Initial Public Offerings (IPOs) and 14 were acquired.

Intel Capital has invested $12.4 billion in 1,544 companies in 57 countries since 1991, and in that time 670 companies in the organization’s portfolio have gone public or participated in a merger.

“In recent years, Intel Capital has typically invested between $300 million to $500 million annually,” the spokesperson said. “At the same time, we’ve been making fewer new investments each year. Making fewer, bigger investments lets us take more meaningful stakes in companies and play a more relevant role in helping them grow and succeed.”

According to Intel Capital, the organization has paid attention to artificial intelligence (AI) for at least five to six years, including machine learning, cognitive computing and more. AI has been one of the most important areas of focus for Intel as the company sets out to “build the future” under its “virtuous cycle of growth” strategy.

This year’s investment recipients comprise a variety of unique new businesses from California, Texas, Canada, the United Kingdom, China and Israel.

“Our continued goal is to leverage the global resources and expertise of the world’s greatest engineering company, and its ecosystem of customers and partners, to help these founders accelerate growth and innovation,” Brooks said.

The 2019 Intel Capital Global Summit invited more than 600 entrepreneurs, venture capitalists and Global 2000 business leaders to spend three days networking and company-building.

Here are Intel Capital’s disruptive startups for 2019:

• (Shanghai, China)
• (Palo Alto, California)
• (Houston, Texas)
• (Palo Alto, California)
• (Cupertino, California)
• (Santa Clara, California)
• (Guildford, United Kingdom)
• (Haifa, Israel)
• (Roseville, California)
• (San Diego, California)
• (Palo Alto, California)
• (Petaluma, California)
• (Toronto, Ontario, Canada)
• (Zhuhai, China)

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