How to save the third wave of technology from itself

To survive, these companies need to ensure compliance with regulations early on, because mistakes here can have large social consequences.

Without them, incumbents, who have the most resources to hire lawyers to navigate these rules, are set up to dominate in the Third Wave.

Unaudited prefabricated housing designs might mean the use of subpar safety measures and tenant deaths during an earthquake.

VCs, such as Evan Burfield in Regulatory Hacking, argue that these strategies are critical for the next wave of startups.

These technologies use anything from data analytics to decision trees to help companies navigate rules embedded in text, such as regulations and contracts. Since technology is scalable in ways that hiring 30,000 lawyers is not, small innovators can better compete in a big companys game.

In one example, Fenergo transformed a highly manual document review for Know Your Customer regulations using text analysis and rule logic, speeding up the process by 37 percent.

Other related startups are reducing the costs associated with complying with corporate contracts , bankruptcy , zoning requirements generally and for accessory dwelling units , permitting processes and energy standards .

If the scandals of Uber and Facebook are any indication, when a company violates laws or loses its integrity, the public and the stock market respond in kind.

Technology can empower companies both large and small to embrace the mitigation of social harms and the promotion of positive impact.

Original article
Author: David Riggs

TechCrunch is a leading technology media property, dedicated to obsessively profiling startups, reviewing new Internet products, and breaking tech news.

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