North Carolina is center stage today, not because we are an emerging economic powerhouse, but because the state legislature passed a law that prevents local governments from adding anti-discrimination protections for LGBT people or establishing a minimum wage beyond the state standard. We have already seen a significant impact on business, and regardless of your position on this thorny issue, that’s something to care deeply about.
HB2 creates business friction for every growing company that chooses to call North Carolina home. Great leaders and great companies overcome business friction by making choices that place them in a position to succeed. Good government is supposed to support leaders in those decisions. The North Carolina legislature and Governor failed by adding instead of reducing business friction.
As a civic business leader, it’s incumbent upon me to find areas where I can help remove business friction. At The Startup Factory (a seed investment business I operate with my partner Dave Neal), our mission is to create an environment where passionate and motivated founders can get started without many of the traditional obstacles that inhibit startup business growth.
Unfortunately, HB2 has made our job more difficult.
There are 2 constituents that make our business sing: entrepreneurs and investors. HB2 casts a shadow over both of these groups’ decision to operate in North Carolina by fostering uncertainty.
TSF and North Carolina need the best entrepreneurs to operate in North Carolina. Over 40% of the entrepreneurs interested in working with us come from out of state and about 30% of our investments are companies that move here for our program..
Once our investments grow their business to a certain level they start to attract outside venture capital. This is critical to their development, and it is so important that we hired a full-time associate to help our founders secure funding from investors from Washington, DC, to New York City, to Silicon Valley.
Again, HB2 throws a wet blanket on investment opportunities and venture capital recruitment.
Find the rest of the article here at INC.com.