Startups need to consider a lot of risks when thinking about financial technology. In a recent interview with Legaltech News, Erin Fonte, an attorney at Dykema Gossett, explained that many tech companies—located in places like Silicon Valley; Austin, Texas; or North Carolina’s Research Triangle—often will try to build new products out as quickly as possible. It is known as covering the basics of their “minimum viable product” (MVP) roadmap, she said.

“Companies think that they will come back later and fix some of the legal niceties once the product has legs and a user base,” according to Fonte. “However, we caution startups that if you are getting into the world of financial technology, understand you are entering a highly regulated space where … federal and state regulators are focused on the underlying activity that you are engaged in. Failure to make your products compliant by design and address these issues on the front-end can have serious consequences on the back-end.”

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]