Some interesting links we found across the web this week:
'Regtech' startups see more
business in Trump era
Startups are beginning to react to the looming possibility of
deregulation under the incoming administration, particularly those
in the fintech space, says Reuters. As laws are undone or
replaced, new business-to-business services will emerge to help
navigate the changes. (Bonus link: regulatory threats to tech immigration under the H-1B visa are
already pushing foreign engineers away from American startups.)
EU court rejects data retention law,
throwing cold water on UK's 'Snooper's
Charter'
Meanwhile, across the pond, the EU continues favoring privacy
rights over government and corporate requests for greater access to
(and retention of) customer data. This week the European Court of
Justice strongly rejected a UK surveillance law, making the issue
ripe for reassessment in a few years when the Brexit is complete.
Check out this TechCrunch piece to see the court's
press release, but be sure to read this in-depth analysis from our very own Dr.
Martin Braun, Reed Freeman and Sol Eppel.
US Startups Are Piling on
Debt
As Bloomberg reports, in a down year for venture
capital investment through priced rounds, startups have
increasingly turned to debt as an alternative or supplemental
source of funding. Compared to VC deals, taking on debt has the
advantage of not putting a valuation on your company's stock,
but make sure you really can make those loan payments—lenders
have every incentive to bankrupt your company if you can't.
The rise of the family office venture
investor
Speaking of alternative capital, TechCrunch has
noticed a new trend of venture investment by family offices,
vehicles that manage extremely wealthy families' fortunes.
Investing in a startup directly through this vehicle (instead of
the vehicle investing in a VC or private equity fund) can save the
investor money and yield more transparent contact with the startup,
so it's worth a thought if you have the right network.
Why CEOs Who've Bootstrapped Their
Business Have The Competitive Edge
And if your company is already a good candidate for more
traditional venture capital investment, the next question is: how
soon is too soon? Great thoughts on the matter from Forbes
on the importance of bootstrapping as long as you can (and we
caught a related Forbes piece).
Links compiled by Jared Brenner.
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