When founders start to feel that public markets can’t tell the difference between their business and the one next door, they adjust. They stay private for longer, raise another round and look for liquidity elsewhere. The capital is there, in many cases more than ever, but it sits now behind closed doors. That shift has consequences. If the defining technology companies of our era keep scaling outside the public markets, most people will only get access once the heavy lifting is done, or not at all.
That is until recently, when a social media platform’s ill-kept privacy files surfaced on the public internet and an increasingly litigious group of people decided to take matters to court. Now, in an attempt to work proactively to keep underage users safe online and also ensure the privacy of everyone’s collected data, companies are pursuing new methods to verify the age of their users online. But the lack of federal regulation is also fueling this paradoxical directive and fostering the conflict: social media companies can collect the data of users of all ages, to keep children safe.
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