Some interesting links we found across the web this week:
While Startup-to-Startup Acquisitions Remain Strong, Public Companies Pull Back
This year has seen public companies pulling back on their acquisitions of startups, largely because of uncertainty in the equity markets. The good news is this trend doesn’t appear to have affected the private markets yet. The first three months of 2022, per this article from Crunchbase, saw 124 startup-to-startup acquisitions, more than any other first quarter in the past decade. Public company activity is typically quieter in the first quarter so we may see a pickup in public company deals later in the year. With rising interest rates and unfavorable macroeconomic conditions, expect public company buyers to be very selective in the companies they choose to acquire.
Most Common Cybersecurity Mistakes Startups Make
Starting a new company is a huge undertaking, and entrepreneurs are required to manage multiple tasks and responsibilities. Even so, it is important to address cybersecurity issues early in a company’s development because mistakes can be costly. This Startup Info article describes many of the most common mistakes that startups make when dealing (or not dealing) with cybersecurity. Startup companies should invest in employee training and should have response plans in place so they can adequately deal with the cybersecurity threats facing them.
Is Financial Knowledge Crucial For Startup Founders?
Founders who lack technical skills in finance and accounting should carefully consider whether they want to outsource this side of their business. The importance of financial literacy, both in managing the business and raising capital, cannot be overstated and founders should make sure they are closely involved in resource allocation and fundraising decisions. Successful founders don’t need to be expert accountants, but they should understand the basic accounting concepts applicable to startups. Read more in this article from Forbes.
Think GDPR Is a Big-Company Problem? Think Again. Here’s What Startups Need to Know
The “move fast and break things” model has been successful in many instances, but founders addressing regulatory risks shouldn’t always execute first and ask for forgiveness later. This is especially true when it comes to the European General Data Protection Regulation (GDPR). Rapidly scaling startups are frequently running up against GDPR compliance issues and fines can be very steep. More and more investors are looking unfavorably towards poor GDPR compliance and, because GDPR sanctions are not always confidential, non-compliant startups can face public scrutiny. This article from Sifted advises startups to audit their operations for data compliance and to ensure they have capable staff who are looking after customer privacy.
5 Ways Startups Can Harness AI and Kickstart Growth
Artificial intelligence technologies aren’t new, but many businesses still struggle to adopt AI-powered tools. This Learn article details several ways startup companies can employ AI to help spur growth. Artificial intelligence is especially important for startups because it can help level the playing field with larger organizations and allow a startup to compete. Today, there are many AI products that are readily available to startups and founders can avoid the lengthy and expensive AI development process. The right AI tools can help a startup boost marketing and sales, improve customer communication, and increase employee productivity.
