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flag U.S. startups face tighter foreign investment rules and slow federal procurement, straining innovation and national security balance.

flag The U.S. government is grappling with increasing complexity in its relationships with startups, as national security concerns, regulatory hurdles, and funding shifts reshape collaboration. flag Recent policy changes have tightened oversight of foreign investment in emerging tech, affecting startup access to capital and partnerships. flag At the same time, federal agencies are accelerating procurement from small tech firms, but inconsistent processes and lengthy approval timelines remain barriers. flag These dynamics reflect broader tensions between fostering innovation and safeguarding strategic interests.

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