The newly established businesses and the US government: it is complicated

The connection between the newly established businesses and the US government has been enhanced in recent years, a shift enhanced by the interest in the use of AI, automation, space, robotic and climate technology for defense. And while this has provided another welcome path to capital, the relationship becomes complicated.

A growing share of newly established businesses have the US government as customers or aims at defense -related licenses and contracts. When the government is operational, this connection can provide a necessary impulse and revenue to newly established businesses. But when the government ceases to operate, as it began on October 1, these narrow ties can stifle or even stop progress for newly established businesses.

This week with Equity, Anthony Ha, Max Zeff and I (Kirsten Korosec) talk about how a prolonged closure of the US government raises a greater risk to newly established businesses than in the past – not to mention an off -site ipo. The three of us also dug on some other issues, including how AIs are trying to generate revenue and the latest US government’s revenue to undertake ownership in the field of technology and industrial sector.

“This also feels like a reflection of the way the starting landscape has changed in the last decade and especially in recent years,” Ha said during podcast shares, adding that the focus was for the newly established internet businesses for a long time. “Obviously there is much more that happens in defense technology, much more in deep technology, where you may need different types of regulatory approvals,” he continued. “And so, he feels that much wider periods of the starting landscape are now dependent on the government in various ways, in ways that were not necessarily true 10 years ago.”

But they are not just new businesses. Trump’s administration also continued to expand its range and ownership to the technological industry.

Trump’s administration has renegotiated yet another federal loan – it has been third in recent months, followed by one with Intel and Rare Earth Miner MP materials – and received share capital as part of the newly established agreement.

The US government received a 5% stake in the Canadian Miner Lithium Americas and another 5% ownership in a Lithium Americas-GM consortium to evolve into Lithium in Nevada. The shareholder shareholders will be acquired through no costs, which are financial instruments that give the government the right to buy shares at a specified price. The new terms emerged from the DOE loan programs office with a loan of $ 2.26 billion awarded to Lithium Americas under the command of Biden.

Watch the full episode to hear more about the government’s relationship with the newly established companies and technology companies, as well as the reaction of the entertainment industry to Tilly Norwood actress, as well as a round of seeds for magazines.

Equity is TechCrunch’s flagship podcast, produced by Theresa Loconsolo, and publishes every Wednesday and Friday. Sign up to us Podcasts Apple; Cloudy; Note And all the CASTS. You can also follow shares X and ThreadIn @equityPod.