Are startups the new nanny? About BS as a service.

I hope it doesn’t become a trend, but I’m seeing more and more that startups are founded without any sense or understanding. Just because you can.
When the youngster drops out of college and doesn’t really know how to spend his time…

Daddy pays for a startup.

He’s done this before with his wifey, she gets a boutique and is happy.
So now a startup, so that the “founder gene” is activated.
So the junior can work on a new dating app, or a fintech-crypto-fitness crossover or some other crap. Now he can spend a few years like this and pretend to be the CEO (of a two-man company).

I’m CEO, bitch.

Nice side effect for dad: tax optimization and he can feel important as at least a double investor.

The thing is just… There is no other value. Nothing is being created.
It becomes difficult when the “investor” insists to bring an advisor on board.
This cannot work cuz the “successful founder” knows everything better – hey he saw it on TikTok…

Without basic knowledge, even so basic like knowing about own roles and needs, it will be a tough journey identifying and avoiding tripwires.
Majority of regular founders do not even know the difference between CEO and COO. Junior even less.
They don’t know how to behave, are horrible bosses, make basic mistakes out of naivity which can bring them to jail. An advisor then becomes the „big brother“ that keeps em out of stress.

Thank you but, no thank you.

While BSaaS is only annoying, another trend becomes really dangerous.
Money laundering.

Of course, some industries are more affected by money laundering than others. It is important to be vigilant, especially when large amounts are involved. A classic example is money laundering in real estate. 
It is not uncommon for millions of dollars to flow here, which makes the industry so attractive for money launderers.

However, real estate is not the only businesses… Car dealers, jewelers and other luxury goods are also affected. 

Now criminals started to use tech startups to launder money and finance terrorism by introducing illegitimate funds into a legitimate financial system through share purchase, debt financing, seed funding, etc. 

These funds are integrated into legitimate financial systems, making it difficult for authorities to determine the source of the funds.

Listen to your advisor when he asks questions. Answer his questions. Do not hide informations.

Check your cheque.