This Crisis Is a New Regulatory Minefield For Startups
Moments of change can create tremendous opportunities — and risks — for startups
Over the past few weeks the U.S. has passed the most comprehensive stimulus package since the Great Recession, and the largest-ever relief bill — with more likely on the way. This stimulus package represents Covid-19’s expansive impact on businesses, beyond revenue and hiring: substantial regulatory shifts looming, and the changing context in which startups and other entrepreneurial firms operate. These shifts both present tremendous opportunities for companies that can be responsive to the needs emerging from recent events, but also risks that are flat-footed in their response.
Are startups even regulated? (Yes.)
I distinctly remember a period of sleepless nights in late 2008 and early 2009 — working closely with the CEO of the fintech startup where I was leading business development — in preparing a joint proposal with a much larger incumbent company to bid on administering the Troubled Asset Relief Program (TARP) for the U.S. Treasury. We ultimately lost the bid and the winner, BlackRock, went on to become the largest money manager in the world (admittedly for many additional reasons, including this specific effort). Suffice to say: Moments of…
