Updated May 5, 2020 - Economy & Business

AOL founder predicts coronavirus is a "tipping point" to reverse tech brain drain

Photo: Craig Barritt/Getty Images for Tory Burch Foundation

The coronavirus pandemic could be the tipping point to reverse brain drain from the Midwest, Steve Case, AOL co-founder and venture capitalist, predicted Tuesday at an Axios event.

What he's saying: "So the question that we look for is how can we keep some of that talent in place, slow the brain drain and actually create a bit of a boomerang of people returning? And I think this crisis may be a tipping point. There are a lot of people who are rethinking things and using this as an opportunity to take a step back and reflect."

  • "The next wave of innovation isn't going to be about just apps on your phone. It's going to be about better ways to teach. It's going to be about better ways to deliver health care, food, agriculture."

The big picture: Case also emphasized that nearly 75% of all venture capital funding goes to three states: New York, California and Massachusetts.

  • "We can't lose sight of the fact that startups really create the jobs. ... Essentially all job creation comes from young startups. Not from big companies or small businesses."
  • "As a result, people with that entrepreneurial mindset, not just the tech sector, but other folks, startup sectors tend to go to the coast. So if we want to create jobs everywhere, we want to level the playing field in terms of opportunities."

Go deeper: The coronavirus' domino effect on startup layoffs

Go deeper

Biden formally secures Democratic presidential nomination

Joe Biden speaks at Delaware State University's student cente on June 5. Photo: Jim Watson/AFP via Getty Images

Former Vice President Joe Biden became the formal Democratic presidential nominee on Friday evening, per AP.

The big picture: Biden has been the presumptive frontrunner to take on President Trump since Sen. Bernie Sanders suspended his campaign in early April.

Updated 9 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 1,894,753 — Total deaths: 109,042 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
  4. Sports: How coronavirus could reshuffle the sports calendar.
  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.