For many years, American businesses have watched the stock market closely.
However, with policy becoming increasingly vital for success, companies are finding it essential to monitor changes in state and federal legislatures.
This situation poses a significant challenge. State legislatures introduced over 135,000 bills last year, which marked a more than 50% increase from 2024. These bills touch a wide range of sectors, from digital privacy to food delivery, flavored e-cigarettes, and even the use of chatbots for health inquiries.
Tracking legislative changes can sometimes feel like navigating a regulatory maze. Some states don’t even broadcast public hearings, meaning someone on-site is needed just to keep tabs on what’s happening.
Certain companies believe they can bridge this gap by working with local journalists, who can often provide insights into bill progress more efficiently than lobbyists.
“Everything that Fortune 2000 companies do is done through lobbyists, which is both flawed and costly,” said Keith Lavoie, managing director at Khosla Ventures. He noted that while major impacts of legislation might be obvious, more subtle effects often slip under the radar, leaving companies unprepared.
The increase in legislative activity—over 135,000 new bills—is noteworthy. For instance, states are debating bans on flavored e-cigarettes and considering restrictions on the capabilities of AI when it comes to health-related questions.
To give companies an edge in this complex landscape, Founders Fund and Khosla Ventures have invested $70 million in a venture named State Affairs, seeking to create a platform akin to the Bloomberg Terminal for regulatory matters.
This platform aims to offer real-time updates on bills, hearings, and policy changes across all states and the federal government, with big names like Walmart, Mastercard, and McDonald’s already involved.
The company highlights its dual strengths: AI-based dashboards for data analysis, complemented by a team of human reporters providing thorough data collection. With 76 staff members covering the state Capitol, they tackle issues that many local news outlets can’t afford to monitor closely.
Alison Bethel, the founding editor and chief content officer, described State Affairs as a tech company rooted in journalism, emphasizing their commitment to placing journalists where full-time coverage has dwindled. They publish over 2,000 original reports each month.
All gathered information resides on a unified platform, allowing clients to track bills, hearings, amendments, and more.
“Keeping tabs early can alert you to forthcoming changes. For instance, knowing what it means to ban flavored tobacco can prepare businesses before it affects stock prices,” added co-founder Jamie Roberts-Seltzer.
The dashboard provides insights into various topics impacting industries, including alcohol taxes for restaurants and regulations regarding AI for tech firms.
This platform can also distill highlights from lengthy public hearing recordings, compare related bills from different states, and calculate a “momentum score” for each bill to indicate its movement through the legislative process.
As Evan Burns, co-founder and CEO of State Affairs, pointed out, many organizations initially focus solely on financial trends but might find that engaging in the democratic process offers them a genuine opportunity to align their interests with public sentiment. “States are enacting laws rapidly; companies need to stay updated in real time to avoid falling behind,” he noted.
