Regulation is Tech’s big blind spot — (or) — Why Form exists
TLDR: TikTok vs Trump is just the latest instalment in the growing tension between politics and Tech. But the biggest tech revolutions are…
TLDR: TikTok vs Trump is just the latest instalment in the growing tension between politics and Tech. But the biggest tech revolutions are still ahead of us — and you can bet that governments will want a say in how future disruption plays out in each market. For startups, building in these markets is complicated by the raft of government players that can massively impact their chance of success: from regulators, to civil servants, right up to politicians. Startups need to gear up — Form is here to help.
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Government is increasingly intervening when tech is shaking up a sector
Why?
Because tech is overturning everything — even the slowest sectors. As technology revolutionises more and more sectors, the idea of a “regulated market” is changing. More specifically, the sectors that should be thought of as regulated are changing. We’re no longer just talking about water, energy, health, etc, but any sector where tech is overturning the status quo, and government wants to influence how new sectoral norms affect consumers, employees — the population they represent.
Because government has been caught out before, and is playing catch up. In general, government intervention can happen after a disruption takes place; or in advance. Governments feel they have been caught napping (see Uber), and now want to be out ahead of tech transformation taking place.
The next waves of tech disruption are going to fundamentally change how we live. We’ve seen retail banking disrupted, primary care delivery digitised, etc, but the next waves are going to completely transform our lives, which will attract attention from all levels of politics, civil servants and regulators. Self drive cars; brain computer interfaces; (closer to) General AI; cryptocurrencies — all of these will end up fundamentally changing the lives of every person on earth.
How government’s appetite to intervene hits startups
Government’s appetite for influencing tech disruption inevitably presents startups with risks and opportunities. The tough thing is understanding what government cares about, how it could impact your startup, and ultimately which decision makers will swing the axe— all to ensure that you have a plan to ensure your startup stands to benefit, rather than suffer, from any decisions made:
Dealing with this complexity is exactly why Form exists — we’re here to invest in the best startups and help them manage these risks, and build competitive advantage around them
We have a bunch of experience directly helping founders deal with these issues, from thinking through product design to keeping regulators on side, to navigating exits through merger control regimes.
We have the network to help you talk to the right people, at the right time, whether that is political, in a civil service department, or in a regulator.
So if you’re really disrupting a market, and building something massive, come talk to us
If you are taking on a market that government is going to end up caring about, and you want to become as huge as we want you to, you should prepare to deal with government on several fronts. To navigate them, to optimise in advance, your cap table is better with us on it. Because that’s exactly what Form’s experience, skills and our network are set up to do.
And if you’re a regulator, policy-maker or politician, come talk to us too
We will always wear a second hat — informing good government intervention. We believe regulation of technology will shape the future world, and that investors who think primarily about regulation are a good group to directly inform and influence how regulation comes about — to ensure the best outcomes for startups and society.
*Credit to theatlantic.com for the Tiktok logo