VCs say big tech often helps startups, challenging House lawmakers - Business Insider

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VCs are nervous about a new proposed regulation that could make it harder for big tech companies to buy startups

spearheaded by House Democrats about regulating big tech is a recommendation that is making the venture capital world very nervous.

"The merging parties could show that the transaction was necessary for serving the public interest and that similar benefits could not be achieved through internal growth and expansion," the recommendation in the report says. "The promise of a successful exit in the form of a buyout from a larger company is the very thing that drives much of the investment and innovation in the startup sector," Crunchbase's Marlize van Romburgh wrote in an"Many founders start companies with the dream of selling them, and this dream has fueled innovation and investment for decades," Neo founder and angel investor Ali Partoviearlier this month.

 

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