Since the US and EU regulators pulled the fangs out of the FAANGs in a coordinated move two months ago, there is a new sense of urgency and optimism in the world’s tech hubs. The FAANGs, originally comprising the five most dominant US tech companies: Facebook (now Meta) Apple, Amazon, Netflix (replaced by Nvidia), and Google (now Alphabet) received their marching orders from the FTC (Federal Trade Commission) in a move that many see as a warning to the industry overall: “Grow and become huge, but don’t become so dominant you kill your competition!” And Microsoft didn’t escape either.

China clipped the wings of their dominant tech companies some years ago and it was just a question of time before US and EU regulators followed suit, but it still sent shockwaves through the tech industry and the markets. Billions of dollars were wiped off their market caps and some analysts went as far as calling it “The New Financial Crisis.”

Pat Brown, founder of White Pebble Inc, candidly put it: “What do you expect? Now we must invest in companies that aren’t built to be as good as they can be!” Brown might have a point, but for investors, the opposite seems to be true. In the early 20s, many large corporations spun off divisions into independent companies, unlocking billions, and proving that small and nimble parts can be more valuable than one big slow-moving whole. Judging from last month’s market reactions, it looks like this might be true also for the old FAANGs.

For the startup scene, the FAANG break-up has already – after just these few months – heralded a new era. Several small startups, previously struggling in their competition against a FAANG behemoth, are now attracting new interest and fresh buckets of capital. The old “plug a hole for the FAANGs” business ideas are now looking at IPOs to become paid for plug-ins rather than being bought up and becoming a nameless feature.

There is a new wind sweeping over the world’s tech startups, a wind of renewed optimism and unlimited possibilities!

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Futureworld, in partnership with Applied Finance Group, can provide unique insights into how capital markets value innovation. With the knowledge that innovation now often resides at the intersection of industries, our Shareholder Value Analytics approach helps leaders understand how innovation generates true shareholder value and how to leverage these insights for exponential growth. For more information, contact Futureworld Principal Matt Lawlor or Mindbullets editor Doug Vining.