Uber, AirBnB, FanDuel, DraftKings and now Zenefits have all had recent run-ins with the regulators. Compliance officers rejoice and get your CV out to Silicon Valley!
The "entrenched interests" are "getting to regulators and politicians sooner to try to slow things down," says Bradley Tusk, the founder and CEO of Tusk Holdings who has advised startups like Uber on their regulatory battles. The startups are taking it into account, however, as they grow big enough to draw plenty of attention. "Investors are more aware of regulatory risk and pressing founders to address it sooner," Tusk says. The consequence of ignoring those problems: regulatory threats. Prominent startups have all been threatened with shutdowns, including FanDuel, DraftKings, Uber and Airbnb. No one wants that, Tusk says. There are too many billions at stake.