The Political Economy of Little Tech
Jun 24, 2026 · 29 min · 11 segments
Policymakers often say they want to support startups. Republicans say it. And Democrats say it. But despite repeatedly saying they support startups, policymakers often propose rules that make it…
Policymakers often say they want to support startups. Republicans say it. And Democrats say it. But despite repeatedly saying they support startups, policymakers often propose rules that make it harder for those startups to build and compete. In this episode, Collin McCune, head of government affairs, joins Matt Perault, head of AI policy at a16z, to discuss the political economy of Little Tech: the structural dynamics that produce a policy process that so consistently rewards the companies with the most time, money, and access. In sum, it favors Big over Little. They also talk about the impact of the political economy of Little Tech on consumers. When regulation locks in incumbents, people end up with fewer choices, products that are lower quality and less innovative, and higher costs. Topics covered: 01:00 The paradox of policymaker support for startups 03:30 Why startups are underrepresented in the policy process 05:40 How feedback on bills works in practice 07:30 Why “industry” feedback often misses Little Tech 09:45 The costs of showing up late to policy debates 12:00 Audits, impact assessments, and invisible compliance costs 15:30 How large policy teams create incumbent advantage 18:30 Why audits can be harder than they look 21:15 Policy ideas to better account for startup costs 23:45 Why startup competition matters for everyday people 25:45 Bright spots for Little Tech in Washington 27:30 Lessons from Dodd-Frank and the risk of repeating them in tech Resources: Subscribe to the a16z AI Policy Brief: https://a16zpolicy.substack.com/ Follow Matt Perault: https://x.com/MattPerault Follow Collin McCune: https://x.com/Collin\_McCune Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit a16zpolicy.substack.com
Policymakers often say they want to support startups. Republicans say it. And Democrats say it. But despite repeatedly saying they support startups, policymakers often propose rules that make it…
