Why businesses need to engage in political processes | Jay Bregman | TEDxSalford

Summary

The speaker shares their nervousness about discussing the intersection of politics and technology, challenging the Silicon Valley notion that startups should ignore regulation. Drawing from personal experience founding companies like 'Halo', they argue that engaging with regulators proactively is crucial for startups, especially in regulated industries. They highlight the importance of understanding the impact of new technologies on society and the role of politics in shaping future regulations, advocating for a proactive approach to create competitive advantages.

Takeaways

• 🤔 **Longest Applause:** The speaker starts by acknowledging their nervousness due to receiving the longest applause in the history of a four-year event and addressing the challenging topic of politics and technology.
• 📚 **Secret to Success:** The speaker discusses a concept from Peter Thiel's book, 'Zero to One', which suggests that successful businesses are built on secrets—something you believe is true that others think is false.
• 🔍 **Politics and Technology:** Contrary to popular belief in Silicon Valley, the speaker argues that politics and regulation are crucial for startups and businesses to consider, as they impact society and need to be engaged with proactively.
• ⏳ **Different Time Horizons:** Entrepreneurs and politicians operate on different timeframes; while startups often focus on short-term gains, politicians think in terms of years or decades, which influences how they regulate technology.
• 🚀 **Entrepreneurial Experience:** The speaker shares their entrepreneurial journey, starting from registering the domain classof2001.com to creating e-courier, emphasizing the importance of aligning with regulations to succeed.
• 🚖 **HALA's Success:** HALA, a service focused on connecting drivers and consumers efficiently, succeeded by addressing regulatory concerns from the start, engaging with regulators in cities like London and New York.
• 🏙️ **Different Regulatory Environments:** The speaker contrasts regulatory approaches in London and New York, noting that London's lenient stance contrasts with New York's cautious, lawsuit-prone environment, likened to Gotham City.
• 💼 **Regulatory Asymmetry Opportunity:** Regulatory differences can create business opportunities, as understanding and engaging with regulations can offer a competitive advantage in a rapidly evolving technological landscape.
• 🌐 **Impact of Emerging Technologies:** The speaker emphasizes that modern startups have a significant impact on daily lives and need to anticipate regulatory involvement to prevent challenges and gain market advantage.
• 🔮 **Future Business Opportunities:** The speaker suggests future businesses might capitalize on predicting regulatory changes, using this knowledge to create vast business opportunities by understanding how technology will be regulated.

Q & A

What is the speaker's secret about politics and technology?

The speaker's secret is that politics and regulation are inevitable in the tech industry, and startups should engage with regulators proactively rather than ignoring them.

Why does the speaker believe startups should engage with regulators?

The speaker believes that regulators will regulate whether startups are involved in the conversation or not, and being proactive can help shape regulations that are beneficial for both parties.

What is the difference in time horizon between entrepreneurs and politicians according to the speaker?

Entrepreneurs often think about the short term, like the next year, while politicians commonly think about the next 10 years, which is the typical time frame for things to get done in politics.

What was the speaker's first entrepreneurial venture?

The speaker's first venture was registering the domain name 'classof2001.com' in 1997 with the idea of creating a social network for college students.

What is 'e-Courier' and how does it relate to the speaker's entrepreneurial journey?

'e-Courier' is a service that uses technology to improve the efficiency of courier companies, allowing customers to track their deliveries. It was a stepping stone for the speaker to later create 'Hala'.

What was the core idea behind 'Hala'?

The core idea behind 'Hala' was to connect people with service providers efficiently through just a couple of taps, starting with taxi services and expanding to other types of transportation and services.

Why did the speaker and their partners decide to engage with regulators before launching in London?

They engaged with regulators to understand their concerns, such as safety and the impact on the ecosystem, and to proactively address these issues before they became problems.

What was the outcome of engaging with regulators in London for 'Hala'?

Engaging with regulators in London led to the creation of services for the disabled and ensured that only licensed drivers were on the platform, which eventually became part of the official regulations.

What was the difference in regulatory approach between London and New York as described by the speaker?

In London, the regulatory approach was more about clarifying existing legislation, while in New York, it resulted in a multi-million-dollar lawsuit and a more detailed set of regulations due to a more cautious and stringent regulatory environment.

Why does the speaker think there is an opportunity to create businesses based on regulatory asymmetry?

The speaker believes that regulatory asymmetry is not going away and that understanding and navigating these differences can provide a competitive advantage and a business opportunity.

What advice does the speaker give for future businesses in terms of politics and regulation?

The speaker advises future businesses to consider the societal impact of their services, engage with relevant politicians and regulators proactively, and potentially use knowledge of future regulations as a business advantage.