But we believe this increased scrutiny is a strong and healthy indicator of their potential. We at Cota Capital have a direct view inside the boardrooms across our portfolio companies, and we are seeing an uptick in concern about emerging technologies.
#Regulatory scrutiny software
To me, this optimistic outlook by the capital markets trending toward more regulation is in many ways a positive indication for the future growth and evolution of industry-specific (e.g., fintech) software solutions. We see it most clearly in the public debate over consumer technology companies, but now the examination is moving deeper into the software stack. Products and apps are increasingly driven by artificial intelligence and machine learning, especially those in sensitive areas that impact people’s lives and well-being. The biggest issues for regulators were related to what companies did with their market dominance (i.e., anti-competitive practices that stifled innovation, as was the case with AT&T, IBM, Microsoft and today’s tech titans) rather than how their software operated. It might be hard to remember in this age when companies like Facebook are subject to increasing government investigation, but for decades the technology industry generally existed and thrived outside the public eye. As a result, programs running quietly in the background have now become the center of scrutiny and sometimes even controversy. While many lament government regulation as an infringement on innovation, I believe increased scrutiny is a net positive for the future of the software industry.įirst, it’s important to recognize that increased regulation is a reflection and acknowledgment of the dramatic impact that software is having on economies and societies. Now that digitization has become the norm, government regulation seems to be following close behind. PV Boccasam is a partner at Cota Capital.
0 kommentar(er)
