The Canal Street Blog

Business-focused legal discussion

News Roundup: FCC Plans for ISPs, The Startup Economy, Spotify’s Latest Acquisiton

Startup economy

Quartz believes a variety of factors are leading to a collapse of the on-demand startup bubble. Many startups have relied on VCs’ capital to cover the costs of on-demand services, while struggling to make a profit and compete with automation and a lack of customer loyalty.

However, Bloomberg believes the startup economy as a whole is stabilizing. They track business conditions for VC-backed private tech companies in their Bloomberg U.S. Startups Barometer, which shows that large financing rounds and more initial public offerings have made the index increase steadily since 2015.

New plans for ISPs

Ajit Pai, chairman of the Federal Communications Commission, has announced plans to reverse the 2015 ISP measures that allowed for a stronger enforcement of net neutrality. Pai claims this deregulation will allow ISPs to improve broadband speeds. Opponents of the proposal believe this would allow ISPs to use practices such as tolled “fast lanes” and discriminated internet speeds for their own benefit. The FCC is planning on voting on the proposal May 18.

Spotify’s Mediachain acquisition

Spotify is acquiring Mediachain, a company that developed a blockchain technology for tracking artists’ rights to specific media. Last year Spotify paid $25 million to address unpaid royalty claims. Spotify argued the royalties were unclaimed because it couldn’t tell who had rights to what. Spotify could use its acquisition of Mediachain to better track these rights and head off claims over royalties.

What makes a VC invest in a startup?

Elan Zivotosfky oversees investments at OurCrowd, a venture capital firm that runs on crowdfunding. He shares what made him choose to invest in three different startups in this article by Entrepreneur.

Banks begin to focus on startups

Banks such as Wells Fargo and Barclays are working to create a better internal environment for startups. Their startup programs focus on mentoring companies, using startup culture to encourage creativity, and making sure the relationships work for everyone.