Why government regulation isn’t always a clear cut issue in the tech industry

Many founders and investors sound like broken records when they complain about the heavy hand of government regulation. But there are some interesting exceptions.

I recently reached out to several prominent tech investors about the state of affairs, particularly as it relates to TikTok. After writing a series of articles on the hidden connections between TikTok and its Chinese parent company, I was curious about their opinions.

My first stop was Bradley Tusk, who has made a career and hundreds of millions helping and investing in companies that are heavily regulated by the government. His Tusk Ventures’ investments include ride-sharing giant Uber, sports betting platform FanDuel and insurance giant Lemonade. Tusk Strategies lists companies that are subject to the most government scrutiny as clients, such as Google, Walmart and AT&T. He almost opened his own casino. And yet Tusk, admitting to apparent hypocrisy, claims that he supports the TikTok ban.

“We are dealing with a situation in which our biggest competitor (China) controls the propaganda that is in every kid’s pocket,” Tusk says. “Getting rid of it is so overwhelmingly logical that it transcends party, special interests, ideology and everything else.”

Despite this, Tusk believes that all social media platforms harm children’s mental health and that Art. 230. Tusk argues that if technology companies were not protected from liability under Art. 230, “financial incentives would change and this would lead to better content moderation.”

David Ulevitch, a general partner at Andreessen Horowitz who co-leads the $600 million American Dynamism program in defense technology, feels the same way as Tusk when it comes to TikTok. “When we have a situation where so many Americans are under the influence of an adversary of the United States, a ban makes a lot of sense,” Fortune said.

Ulevitch, who led a16z’s Series B investment in defense giant Anduril, believes the negative mental health consequences of social media use could benefit countries like China and Russia. “If you can make an entire population of people feel really depressed or feel really bad about themselves, and that has consequences, that could be a target for a foreign adversary.”

With the elections approaching, comments show that investors’ approach to regulation and technology policy is not as clear-cut as it once might seem.

What about regulation beyond technology? I asked Tusk, who recently wrote a book entitled Vote with your phone, regarding the LiveNation lawsuit. “Absolutely the right move,” he said. “When you have a company that has so much market dominance and is so widely hated by consumers, it’s definitely the right move,” Tusk wrote in the text.

A moment later, he added that he had capital in LiveNation’s rival, StubHub. “But in this case, I would have the same view,” he added.

Aleksandra Sternlicht
Twitter: @iamsternlicht
E-mail: [email protected]
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Joe Abrams curated the deals section of today’s newsletter.

VENTURE OFFERS

– SyrStockholm-based Swedish textile recycling technology manufacturer has raised $100 million in Series A financing. TPG Climate growth he was leading the round and joined him H&M Group, Gigantic undertakings, IMAS Foundationand others.

– Gray Wolf TherapyAn Abingdon, UK-based company developing drugs for immune-related diseases has raised $50 million in Series B financing. ICG Life Sciences he was leading the round and joined him Pfizer ventures, Andrea Partners, Canaan, Early bird Venture capital, Oxford’s scientific enterprisesAND British patient capital.

– Lumosa San Francisco-based platform designed to centralize access to application and identity management for IT and security teams has raised $35 million in Series B funding. Scale venture partners he was leading the round and joined him Andreessen Horowitz, Harpooning ventures, Neoand others.

– Orca AIa London-based developer of AI-based autonomous navigation technology for ships and fleets has raised $23 million in funding. OCV Amplifier AND Mizmaa’s ventures he was leading the round and joined him Ancona Capital Partners, Venture partners in Santa Barbara, Playfair Capitaland others.

– Radar TherapyBerkeley, California-based precision therapy company raised $13.4 million in seed funding. The history of NfX he was leading the round and joined him Eli Lilly and company, Biovision ventures, KdT undertakings, PearVC, BEVCand others.

– AttentionNew York-based platform that connects shoppers with product experts and product commentary has raised $10.3 million in funding from Spero’s ventures, Stripe, Shine Capital, Neo, Sugar Capital, Visible venturesand others.

– Plume NetworkSan Francisco-based modular blockchain L2, designed specifically for tokenized real-world assets like sneakers, cash and art, has raised $10 million in seed funding. Haun’s ventures he was leading the round and joined him Galactic Endeavors, Supercrypt, Capital, Angel of Saint, Portal Ventures, Mutual venturesand others.

– WelbeMexico-based occupational health management platform for large companies has raised $7 million in Series A funding. The capital of Volpe and International Finance Corporation he was leading the round and joined him NAZCA, Cortex, ZielonyRock, MarathonAND Parceiro’s ventures.

– Bootloader StudioSingapore and Ho Chi Minh City, Vietnam, a developer of artificial intelligence designed to read and respond to human emotions, has raised $5 million in seed funding led by Raising the antlers.

– Feasiblea London, UK-based company developing technology designed to streamline financial operations for e-commerce companies has raised £2.4 million ($3.1 million) in seed funding from Episode 1, Haatch, Portfolio venturesand business angels.

PRIVATE CAPITAL

– Merck KGaA agreed to purchase BioMirusa Madison, Wisconsin-based supplier of transfection products to the biopharmaceutical and research industries, with Gamma Biological Sciencessupported by KKRfor $600 million in cash.

– KPS capital agreed to acquire 49.7% of shares in the company Originala producer of food and industrial ingredients based in Schaumburg, Illinois, made from renewable plant resources, with Tate and Lyle for $350 million.

– Goldman Sachs Alternatives acquired Xpress Wellnessbased in Oklahoma City, Oklahoma, operator of two health care providers focusing primarily on urgent care, with Lattice Capital management. Financial terms were not disclosed.

– On boardsubsidiary Transitions and supported by JMI Capitalacquired Govenda, a Pittsburgh, Pennsylvania-based AI tool for board management. Financial terms were not disclosed.

– PestCo Holdingsportfolio company Thompson Street Capital Partnersacquired Environmentally safe pest control, based in Perrineville, New Jersey, providing commercial pest control services. Financial terms were not disclosed.

OUTPUTS

– Medium Capital Group purchased a partial share in the company Business research in lawa company based in London, UK, providing legal, intellectual property and compliance information services, with Levine Leichtman Capital Partners. Levine Leichtman Capital Partners will remain minority shareholders. Financial terms were not disclosed.

IPOS

– Bowhead Specialty Companies, a New York-based property and casualty insurance company, raised $128 million in an offering of 7.5 million shares at a price of $17 on the New York Stock Exchange. For the year ending December 31, 2023, the company reported revenue of $283 million.