In Case You Missed It: Launch Links - Week of January 23, 2022
Some interesting links we found across the web this week:
The First Big Tech Antitrust Bill Lumbers Toward Reality
New antitrust legislation is on the horizon and it could have an enormous impact on the tech industry. As this TechCrunch article points out, the American Innovation and Choice Online Act recently cleared with bipartisan support and is scheduled for a full Senate vote. The proposed law, which seeks to prevent companies from favoring their own products or services, has caused a divide in the tech community. Some established companies have claimed the bill would harm consumers, but many start-ups and venture capital firms are speaking out in favor of the effort to prevent self-preferential business practices. The bill faces an uphill battle for final approval in the Senate, but there does appear to be momentum for some form of tech-focused antitrust legislation.
How a New Asset Class Is Growing Out of Subscription Revenue
Companies with recurring are increasingly borrowing against that as a means of growth financing, avoiding the traditional capital sources of venture funds and bank loans. This article from the describes the increase in “-based financing” over the past decade, and its recent connection to the rise in SaaS companies during the pandemic. One new platform, which allows companies to raise money against proof of , has added over 10,000 firms since its inception in 2020. This new access to capital could be a boon for early stage companies who can demonstrate consistent .
Reevaluating Executive Compensation to Meet Stakeholder Needs
Companies who take a long-term approach to executive compensation, moving away from shareholder metrics and toward supporting all stakeholders, are seeing better results and higher total company value. This HBR article discusses why Boards should narrowly focus on key stakeholder issues which actually belong in the compensation calculation, such as worker safety and human capital management, climate sustainability, customer/patient outcomes, and product quality. Boards should consider high priority issues which can be effectively measured by data collection methods that resist efforts at gaming, and companies should be prepared to disclose the results to investors.
5 Reasons Your DEI Initiatives Implode
This FastCompany article dives into the importance of diversity, equity and inclusion initiatives, especially as companies face the fallout from 2021’s “great resignation” of nearly 40 million US workers. These initiatives can only succeed if they are properly funded and supported by executives, and they must be transparent and perceived as legitimate by employees. Even then, many DEI programs still fail to effectively engage with implicit bias and other workplace conditions which are furthering employee burnout and resignations.
“We Are Going to Create the Best Environment for Startups in Europe”
This year could see new legislation in Spain, as the country’s parliament begins debate over a draft law. The proposed law covers tax breaks, updates to Spain’s rules, and a new digital nomad visa to attract international talent (a concept which has already materialized in neighboring France and Portugal, as well as elsewhere on the continent). In this TechCrunch article, Francisco Polo, the High Commissioner for Spain Entrepreneurial Nation who is responsible for implementing this new strategy, discusses the details of the law and why it could revolutionize the landscape in southern Europe.
Links compiled by Andrew Fosque.