Here is an interesting piece which calls for lawmakers and others interested in policy to pay more attention to anthropologists whose research and study shed light on immigration and dispel many widely-held myths.
http://anthropologyreport.com/anthropologists-studying-immigration/
Last night, on his show Last Week tonight, John Oliver discussed how the patent system in the US works, and the growing problem of patent trolls. While it is a bit off color at times, it was a fairly accurate explanation, and certainly humorous.
Very generally, the EB-5 program provides a pathway to legal permanent residence to eligible foreign investors who invest $1M into a new commercial enterprise, or at least $500k in rural or high unemployment areas. There are certain requirements of job creation (must create at least 10 jobs in two years), and on its face, the program appears to be a win-win for both foreign nationals eager to i.e., get their students educated in the U.S., and for the local, regional, or the national economy. However, with very little oversight by an agency (USCIS) ill-equipped to assess business plans, risks or securities, there is a dark side to this buy-your-birthright program. This article details a prime example of issues arising from a well-meaning program that in practice is wrought with corruption.
http://fortune.com/2014/07/24/immigration-eb-5-visa-for-sale/
Harvard Business Review’s Tomas Chamorro-Premuzic says that there is such a disproportionate number of male entrepreneurs because (1) women are more financially risk-averse; (2) women are typically more patient than men, and are thus more willing to tolerate incompetent or abusive bosses; and (3) women are universally disadvantaged when it comes to raising capital from VCs, obtaining loans, and impressing shareholders.
The first question many would ask is, How can more women overcome these deeply-embedded sexist barriers? In practice, however, the most effective way to level the playing field is for men to recognize these conscious or subconscious tendencies and decide to change their attitudes in hiring, investing, and granting loans.
https://hbr.org/2014/03/the-unnatural-selection-of-male-entrepreneurs/
http://techcrunch.com/2014/08/05/the-jury-is-out-on-legal-startups/
Even though investment has declined slightly, i don’t believe this is a sign the industry is dead to VC/Angel. As many have pointed out, the industry is ripe for disruption and it seems like more success stories like LegalZoom and Ravel Law are on the horizon. If anything, it will likely be a select few VC/Angel groups who see this and believe in it, even if the VC/Angel community as a whole looks for other opportunities. The biggest challenge at this point seems to be the hurdle of sales cycles – but if one comes out to target consumers rather than B2Firm, there may be a resurgence in investments.
Mr. Carter said today that private equity is dead. The Wall Street Journal’s Andy Kessler has taken the same stance, but the author of this Business Insider believes that this assertion is ludicrous. He claims private equity has more cash than ever before, with investors continuing to pour money back into PE firms, its top managers appear to have learned from the major issues of the last decade, and Washington has not taken action against private equity. If private equity investments are stable and for the risk-averse, why is it dying?
http://www.businessinsider.com/lets-not-go-carving-out-private-equitys-tombstone-just-yet-2015-3
A different perspective on the world of venture capitalists. As HBS Prof. Paul Gompers stated, “[v]enture capitalism is all about collaboration with partners, and you hope there’s a diverse set of experiences at a firm so that people can question new ventures.” Unfortunately, the VC world of Silicon Valley doesn’t reflect this ideal.
These two articles highlight the lack of gender diversity at VC firms and discuss the recent gender discrimination lawsuit against Kleiner Perkins Caufield & Byers filed by Ellen Pao. While Pao ended up losing in court, the case did throw the spotlight onto the dearth of female representation in the VC industry.
The Gender Problem in Venture Capital Is Really, Really Bad:
http://www.wired.com/2015/03/gender-problem-venture-capital-really-really-bad/
Female-Run Venture Capital Funds Alter the Status Quo
https://www.gofundme.com/success
This is just one of the many websites that facilitates crowdfunding for personal and life events. The link above just shows some of the success stories of people who have used the GoFundMe website. Whatever money is raised, the company takes 5% for operating and other expenses.
Tuesday in class we discussed whether high tech innovation is likely to come from start-ups and entrepreneurs or from the already established players like Google, Apple, Microsoft, etc. While the big players may face difficulties in pivoting to new technology and adapting to changed market preferences, I think the big players also have the resources, capital, and knowledge to create the “next new thing.”
One of the most valuable assets that entrepreneurs need is knowledge about their customers. Big players have extensive databases of consumer preferences.
Most of us have probably heard about Amazon’s efforts to develop consumer drone technology. This recent article reporting that Amazon has gotten FAA approval to proceed reminded me of the above mentioned discussion. While as an e-commerce business shipping is crucial so the success of its business, I don’t see the development of drones naturally aligned with Amazon. Therefore, perhaps this is an example of one of how the big players are leaders in developing innovative technology.
http://techcrunch.com/2015/04/10/faa-grants-amazon-license-to-test-its-latest-drone-designs/
Below is the link to a podcast in which Katherine Milligan, Head of the Schwab Foundation, gives an insight into the world of business leaders who are tacking the world’s problems through sustainable solutions.