Debate over Delaware's Startup Incorporation and SB 21 Implications

During a recent House Judiciary Committee meeting, discussions centered on Delaware's status as a leading state for startup incorporation, with nearly 90% of startups choosing to establish themselves there, according to data from Carta. This statistic highlights Delaware's ongoing appeal to new businesses, which is crucial for the state's economy.

However, the conversation took a turn as committee members examined the potential impact of Senate Bill 21 (SB 21) on the state's business environment. Concerns were raised about the departure of high-value companies, with a presentation from Professor Talley of Columbia University noting that six companies with market caps exceeding one billion dollars left Delaware between 2021 and 2024. This statistic underscores the importance of maintaining a favorable business climate to retain and attract companies.

Despite these concerns, committee members struggled to identify specific companies that have publicly stated they would leave Delaware if SB 21 is not passed. This lack of concrete evidence led to a debate about the potential consequences of the bill and the need for data to support claims regarding company departures.

The discussions reflect a broader concern for Delaware's economic future and the importance of legislative decisions in shaping the business landscape. As the committee continues to evaluate SB 21, the outcomes of these discussions will be closely watched by both current and prospective businesses in the state. The meeting emphasized the need for clear data and evidence to guide policy decisions that directly affect the local economy and community.