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A new report shows that the biggest tech companies have significantly reduced their hiring of new graduates in recent years, and AI could be to blame as the technology takes over entry-level tasks.

SignalFire, a venture capital firm that analyzes the job movements of over 650 million employees and 80 million companies on LinkedIn, noticed in a recent report released last week that established tech companies, including Meta, Microsoft, and Google, recruited fewer recent graduates in 2024 compared to previous years.

Related: The CEO of $61 Billion Anthropic Says AI Will Take Over a Crucial Part of Software Engineers’ Jobs Within a Year

New graduates accounted for just 7% of new hires in 2024, down 25% from 2023 and over 50% from pre-pandemic levels in 2019. Meanwhile, at startups, the rate of new graduates hired dropped from 30% in 2019 to under 6% in 2024.

Asher Bantock, SignalFire’s head of research, told TechCrunch that there’s “convincing evidence” that AI is a significant reason for the decline in entry-level tech roles. He explained that entry-level jobs are more vulnerable to automation because they consist of routine tasks that AI can easily take over. For example, AI can code and conduct financial research.

Dario Amodei, the 42-year-old CEO of $61.5 billion AI startup Anthropic, told Axios on Wednesday that within the next one to five years, AI could eliminate half of all entry-level white-collar jobs and cause unemployment to rise to 10% to 20%. Earlier this year that AI could write “essentially all of the code” for big companies within the next year.

“On the jobs side of this [AI], I do have a fair amount of concern,” Amodei said at a Council on Foreign Relations event in March, per Business Insider.

Related: How Much Does It Cost to Develop and Train AI? Here’s the Current Price, According to the CEO of an $18 Billion AI Startup.

AI will impact industries like technology, finance, and law, Amodei predicted. Most workers won’t recognize the dangers caused by AI until it has taken their jobs, he said.

“Most of them are unaware that this is about to happen,” Amodei told Axios. “It sounds crazy, and people just don’t believe it.”

^{Anthropic CEO Dario Amodei. Photographer: Benjamin Girette/Bloomberg via Getty Images}

Research from American think tank The Brookings Institution shows that AI could replace more than half of the tasks carried out by entry-level roles, including market research analysts, graphic designers, and sales representatives. In comparison, more senior roles have up to five times lower risks of automation.

Meanwhile, Harvard Business Review estimates that AI will affect 50 million jobs within the next few years, automating some roles while adding to workers’ abilities in others.

Mildred Reser started selling potato salad to pay the bills back in 1950. The recipe she perfected in a rural Cornelius, Oregon, farmhouse helped her launch a seasonal business, Mrs. Reser’s Salads, which supplied local meat markets before it moved to its first small factory and landed distribution in Safeway.

^{Image Credit: Courtesy of Reser’s Fine Foods. Grandma Mildred with her family.}

Mildred’s son, Al, stepped in as president in 1960, and the company became Reser’s Fine Foods. Eager to transition operations to a larger facility but lacking the cash to do so, he took the company public and raised a little over $200,000. Those funds went toward opening Reser’s 55,000-square-foot Beaverton facility in 1978.

Because potato salad was primarily considered a summer staple in the Pacific Northwest, Al also expanded the product line to include sausages, tortillas and more to offset seasonal sales slowdowns.

Shortly thereafter, in 1986, Al took the company private again to prevent an outside investor from assuming control.

“[We]  actually received some loans from customers, vendors, employees [and] a lot of family members to make that move,” Mark Reser, Al’s son and the current CEO of Reser’s Fine Foods, says. “We were much smaller at the time, but it was a very strategic move to take it back private.”

Related: The Business He Started in Response to a Frustrating Grocery Store Experience Surpassed $1 Billion in Sales and Counts Ray Dalio Among Its Investors

^{Image Credit: Courtesy of Reser’s Fine Foods. Mark Reser with his father, Al.}

“I had my own little route, and [it was a] great way to learn the whole product line.”

Mark began working in the Reser’s factory in eighth grade; he continued helping with the family business through high school and into college during the summer months. His degree in accounting proved useful in understanding the business’s numbers. After graduation, Mark spent a couple of years driving a truck route for the company’s direct store delivery.

“I had my own little route,” Mark recalls, “and [it was a] great way to learn the whole product line, to have that experience, the interaction with the customers.”

Related: A Cambodian Refugee Paralyzed By Polio Says ‘Not Much’ Was Expected of Him. He and His Wife Built a Multimillion-Dollar Business That Beat All Odds.

Reser’s needed help managing its peak salad season, so Al acquired a company with about 40 employees in Corona, California, and Mark relocated to run it in 1990. Mark learned a lot before moving on to lead an even larger operation in Topeka, Kansas, where he spent eight years growing the company’s first built facility, he says.

He moved back to Oregon in 1998 and became COO. He then stepped in as president in 2006.

^{Image Credit: Courtesy of Reser’s Fine Foods. CEO Mark Reser.}

The Kansas facility remains Reser’s largest base today, with four manufacturing plants and a distribution center. Reser’s currently boasts over 5,000 employees across North America and more than $2 billion in annual revenue; the business has also seen double-digit sales growth each of the past five years, per the company.

“We always stress that the 4th of July always comes on the 4th of July.”

These days, as Reser’s celebrates its 75th year in business, it must navigate some of the same challenges it has over decades past, like potential commodity issues and labor shortages. Putting in the work to prepare, especially for the company’s busiest stretch, Memorial Day through the Fourth of July, remains an indispensable strategy, Mark says.

^{Image Credit: Courtesy of Reser’s Fine Foods}

“We always stress that the 4th of July always comes on the 4th of July,” Mark explains. “It’s all about the planning up front. We did planning in the earlier years, but not as much as we’re doing today.”

Related: This Couple Used Their Savings to Start a Small Business. A Smart Strategy Helped Make It a Multimillion-Dollar Success.

The company continues to innovate to help fuel year-round sales, and its hot side dishes, big sellers in the fall and winter months, have become an integral part of that, Mark notes. Now, alongside Reser’s Fine Foods, the company’s line includes Main St Bistro, Stonemill Kitchens, Reser’s Foodservice, Fresh Creative Foods, St Clair Foods, Baja Café and Don Pancho. Its Mexican food category in particular enjoys sales stability year-round, Mark adds.

“Our family’s aligned, and that’s so critical.”

According to the CEO, Reser’s strength as a family business stems from its shared goals when it comes to leadership and growth.

“Our family’s aligned, and that’s so critical,” Reser explains. “ They’re aligned on reinvestment, they’re aligned on the next generation, taking the business even further, and they’re aligned on the drive to continue to grow the business.”

Related: Entrepreneurship Means Generational Independence. These Leaders of a 115-Year-Old Family Business Are Honoring the Past and Building for the Future.

Mark’s nephew and his oldest son are currently part of that next generation working in the business, and he hopes to see several other family members join the company down the line.

“There’s a lot of learning that they have to do, but we do feel  we’ve got some great, strong leaders coming up within the ranks, taking the business further,” Reser says. “We want [Reser’s Fine Foods] to become a bigger part of the meal.”

^{Image Credit: Courtesy of Reser’s Fine Foods}

The company sees growth opportunities in meal kit bundling, convenience stores and more snack-sized options, and it continues to research potential categories for expansion. Reser’s launches close to 300 items per year, Mark says, noting that many are custom-made for restaurant chains or private label.

Related: 10 Growth Strategies Every Business Owner Should Know

The key to growth is to always consider what’s next and resist the urge to get too comfortable, the CEO says.

“ Don’t forget who pays the bills — it’s the customers,” Reser says. “And don’t forget who does the heavy lifting. That’s your employees. Make sure you’re having fun and enjoying yourself. If you’re not, you’re in the wrong spot.”

Cosmetics brand e.l.f. (eyes, lips, face) is acquiring Hailey Bieber’s Rhode, the skin care brand the model and entrepreneur launched in 2022. The deal is worth $1 billion, according to a press release.

“We can’t wait to bring Rhode to more faces, places, and spaces. From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day,” Bieber, 28, said in a statement. “Just three years into this journey, our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”

Related: Meet the Dermatologist Behind Rhode, Hailey Bieber’s Hit Skin Care Brand

Rhode sells a selection of skin care products (toner, moisturizer, lip peptide gloss) with the goal of making “one of everything really good.” She teamed up with BeautyStat entrepreneur and chemist Ron Robinson and dermatologist Dr. Dhaval Bhanusali to help with the formulations.

“E.l.f. Beauty found a like-minded disruptor in Rhode,” said e.l.f. Chairman and CEO Tarang Amin, in a statement. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by Rhode’s ability to break beauty barriers, fully aligning with e.l.f. Beauty’s vision to create a different kind of company.”

“Rhode is a beautiful brand that we believe is ready for rocketship growth,” Amin added.

Related: Serena Williams Launches a New Company That She’s Been Working on for 6 Years

Rhode reported $212 million in net sales in the 12 months ended March 31, 2025, and plans to launch in Sephora throughout North America and the U.K. before the end of the year, according to the statement.

Bieber said she is stepping into an “expanded role of Chief Creative Officer and Head of Innovation.”

Rhode was the No. 1 skin care brand in Earned Media Value in 2024, representing 367% year-over-year EMV growth, according to the release.

E.l.f. Cosmetics was founded in 2004 (originally everything was only $1!) and has reported 23 straight quarters of growth.

The sale has been approved by the e.l.f. Beauty Board of Directors, according to the release.

Related: Is Selena Gomez the Next Beauty Billionaire? Rare Beauty, Worth Around $2 Billion, Is Reportedly Up for Sale

Ask most entrepreneurs what they want from a PR campaign, and you’ll hear variations of the same answer: “We want to get our name out there.” That’s fair. Visibility matters.

But here’s the problem: Visibility alone doesn’t pay the bills.

I can’t count how many business owners I’ve spoken with who’ve spent tens of thousands on PR, landed coverage in TechCrunch, Fast Company, maybe even Forbes — and still couldn’t attribute a single new customer to that exposure.

They got press. They didn’t get pipeline.

Why does this happen? Because most PR strategies stop at the headline. They chase media hits and assume the benefits will trickle down to sales. But in reality, unless you bridge the gap between awareness and action, even the best press coverage is just a missed opportunity.

If you want your next media win to actually move the needle, here’s how to make that happen.

Related: 10 Ways to Get More Traffic After You Get Media Coverage

Visibility is not the same as trust

Getting mentioned in a major publication can absolutely help your brand, but not if it lives in isolation. In today’s noisy digital world, buyers don’t just act because they’ve heard of you. They act when they trust you.

And trust isn’t built with a single article. It’s built over time, across multiple touchpoints — and especially through signals that show your brand is credible, authoritative and endorsed by others.

What you’re really doing with PR isn’t creating noise; you’re creating trust signals — evidence points that show prospects you’re worth paying attention to.

But here’s the catch: Those trust signals only work if you use them strategically.

Don’t let a great press hit die in a vacuum

Let’s say you get featured in a respected trade publication. That’s fantastic. But if the only place that coverage lives is on that publication’s website — and you don’t integrate it anywhere else — most of your prospects will never see it.

Instead, you need to treat every media win like a high-value asset and activate it across your marketing channels:

• Website: Add an “As Seen In” section to your homepage or About page. Display logos of publications where you’ve been featured. These third-party endorsements build instant credibility.

• Sales collateral: Include headlines, quotes or story links in your pitch decks and outreach emails. When a prospect sees your company featured in a known outlet, it’s not just impressive — it’s persuasive.

• Social media: Share the coverage multiple times across platforms, not just once. Tag the publication, thank the journalist, and encourage employees to reshare. This extends reach and builds momentum.

• Email campaigns: Use the media coverage as the foundation for a newsletter or a nurture email. Add a CTA like “Read what [Publication] said about us.”

By doing this, you’re turning that one-time event into a multi-touch trust amplifier and increasing the odds that a prospect will move from passive observer to active lead.

Related: How to Make the Most of Your Public Relations

Use press to power your sales team

PR doesn’t just help at the top of the funnel. It can be a huge asset in the middle and bottom of your sales process — especially in long, complex B2B sales cycles where trust and validation often determine the outcome.

Imagine you’re a sales rep trying to close a deal. Which message is more compelling?

“Let me explain why our platform is best.”

vs.

“Here’s a recent article in Industry Weekly that explains how we helped a company like yours improve efficiency by 40%.”

See the difference?

Press coverage gives your sales team third-party validation they can use to reinforce your value, ease skepticism, build urgency and create internal consensus. It’s not just for cold outreach; it’s also a powerful resource for multi-threading deals and arming your internal champions with proof points. When done right, PR becomes one of your most versatile sales enablement tools.

Start measuring what matters

Too many PR programs still rely on vague metrics like “impressions” or “ad value equivalency.” That’s not going to fly with a modern executive team.

If you want to prove PR’s impact, you need to connect it to business outcomes:

• How many site visits did you get from PR sources?

• How many of those visitors converted into leads?

• Did branded search volume increase after your media campaign?

• Did sales use the content, and did it help close deals faster?

Track the full journey. And if you don’t have the tools in place to do that, invest in them. Because what gets measured gets funded.

Related: A 5-Step Checklist to Maximize Press Coverage for Your Business

If you walk away with one idea, make it this: Your press hit is not the win. It’s the door-opener.

It’s what you do next — how you use that coverage to build trust, generate leads and enable sales — that determines whether PR is a cost center or a growth engine.

You’ve worked hard to get the attention. Don’t let it go to waste.

In May 2023, JPMorgan Chase acquired a “substantial majority of assets and assumed the deposits and certain other liabilities” of First Republic Bank after it collapsed and was seized by regulators. The deal also included First Republic’s brick-and-mortar locations.

Two years later, JPMorgan is announcing what it’s doing with the real estate: opening 14 new “J.P. Morgan Financial Centers” in four states that are “thoughtfully designed to cater to the needs of affluent clients,” according to a company statement.

Related: JPMorgan Chase Says AI Could Cut Headcount By 10% in Some Divisions: ‘We Will Deliver More’

“Through these Financial Centers, we are redefining how affluent clients are served, offering a highly personalized level of service that is backed by the global capabilities of JPMorganChase,” said Jennifer Roberts, CEO of Chase Consumer Banking, in a statement.

Two locations are already open, 14 will open in 2025, and then JPMorgan says it is doubling the total to 31 by the end of 2026. The new branches are opening (mostly) in the former First Republic locations that JPMorgan acquired in May 2023, including Palm Beach, Florida; Napa, California; Madison Avenue, New York; and Cambridge, Massachusetts, according to the release.

“These new Financial Centers offer a highly personalized service model, providing greater flexibility to meet clients’ needs with exceptional attention and care,” Roberts said.

Related: ‘I Defend Your Right to Buy Bitcoin’: JPMorgan Will Let Customers Buy Bitcoin, Though CEO Jamie Dimon Still Thinks It’s Like a ‘Pet Rock’

Clients with more than $750,000 in qualifying deposits and investment balances are welcome at the new, office-based model, which was inspired by First Republic, JPMorgan notes.

Customers who don’t live near a new center can still access the services at their current location or remotely.

Chase also offers a lower-tier called “Private Client,” which is for clients with $150,000 or more in qualifying deposits and investment balances. It is available in all 5,000 Chase branches nationwide, per the release.

Related: ‘This Has to Stop’: JPMorgan CEO Jamie Dimon Outlines How to Run a Successful Meeting

In today’s unpredictable, hyper-competitive job market, resumes often disappear into a sea of sameness. Even highly qualified candidates struggle to stand out when their accomplishments echo those of countless others. What sets someone apart isn’t always what’s written on paper, but who’s willing to speak up for them.

That’s why your professional network is more valuable than ever. Relationships you’ve cultivated since undergrad, grad school, internships, previous roles, volunteer work and industry groups hold untapped potential. But it’s not as simple as asking a friend for a favor. To truly leverage your network, you need to understand how to earn and give high-engagement referrals — the kind that open doors and drive real results.

Related: You Won’t Find What Makes a Hire ‘Special’ on Their Resume

What is a high-engagement referral?

A high-engagement referral isn’t just a polite nod or a casual mention. It’s a personal, proactive endorsement. It signals a high level of trust and alignment between the recommender, the candidate and the opportunity. When someone offers a high-engagement referral, they’re essentially saying, “I know this person well. I’ve worked with them. I believe in their abilities and character so strongly that I’m willing to put my own reputation on the line.”

This type of referral typically goes beyond a LinkedIn endorsement. It may involve crafting a thoughtful introduction tailored to a specific role, reaching out to a hiring manager directly or guiding the candidate through interview preparation. Some advocates even go as far as recommending the candidate across multiple platforms and internal channels. These extra steps show intention and investment, and hiring teams take notice.

Why these referrals matter for leaders

For business leaders, high-engagement referrals can be transformative. Whether you’re building a startup, leading a team or mentoring rising talent, referrals help you attract and retain high-performing individuals. Candidates who come recommended through trusted sources often prove to be stronger performers and cultural fits. The impact goes beyond recruitment. A culture where referrals are encouraged tends to be one where employees are engaged, invested and proud to bring others into the fold. It also elevates your brand as a place where talent thrives and relationships matter.

So why do high-engagement referrals work so well? First, they cut through the noise. In a landscape where hundreds of resumes might flood a hiring manager’s inbox, a trusted referral can bring a candidate straight to the top of the pile. Second, they offer a signal of trustworthiness, adaptability and cultural fit — qualities that are hard to gauge on paper. And finally, they set a positive tone. Walking into an interview knowing someone has already championed your abilities can create instant rapport, boost your confidence, and even influence the outcome.

Of course, earning such a referral doesn’t happen overnight. It begins with clarity. When you ask for a referral, be specific. Tell your contact what job you’re pursuing, why you’re a strong fit and how they can help. Make their job easier by offering a brief message they can tailor or highlighting shared experiences that make your ask feel relevant and authentic.

Even more important is the groundwork you lay before you need the referral. Stay in touch with mentors, colleagues and collaborators. Check in periodically. Share updates on your work. Offer support when they’re navigating changes. The strongest referrals come from relationships that have been nurtured, not neglected until a favor is needed.

Related: 5 Steps to Hiring the Right People for Your Business

How to earn one

Just as you want to receive high-engagement referrals, you should also look for opportunities to offer them. If a former coworker is job hunting and you can genuinely speak to their strengths, take the time to advocate for them. Write the email. Make the call. The value you offer someone else could have a lasting impact — and it positions you as someone who lifts others as you rise.

At the heart of it all is trust. In today’s evolving professional landscape, trust is the currency of opportunity. It’s not just about credentials or connections. It’s about who will speak up for you with conviction — and who you’re willing to stand behind in return.

Build that kind of network. Invest in it. And when the time comes, you’ll have more than a resume — you’ll have real advocates in your corner.

Starbucks is hiring a “Captain – Pilot-in-Command” for its company Gulfstream aircraft.

According to the job posting, the role pays between $207,000 and $360,300 a year. (Business Insider notes that the average airline pilot earned around $250,000 in 2024.)

Related: Starbucks’ New CEO Can Make Up to $113 Million in His First Year

“The captain is one of the company’s most visible representatives to the passengers and serves as a Starbucks ambassador both at home and abroad,” the listing reads. “They model Starbucks’ guiding principles and act with tact and decorum, while providing the utmost in service and safety.”

Starbucks reportedly has at least two Gulfstream G550 jets.

While the job description doesn’t specifically say you’ll be helping the CEO get to the office so he can comply with the company’s return-to-office policy standards, it wouldn’t be a far-fetched idea. It’s been widely reported that Starbucks CEO Brian Niccol commutes over 1,000 miles multiple days a week from Newport Beach, California, to Starbucks’s headquarters in Seattle, Washington.

^{A Gulfstream G550 from a private company (not Starbucks) lands at Barcelona airport in Barcelona, Spain, on August 30, 2024. Smith Collection/Gado/Getty Images}

The pilot role has numerous responsibilities, including managing the flight and crew. Applicants should have a valid Airline Transport Pilot Certificate, a current 1st Class Medical Certificate, an FCC Restricted Radio Operator Certificate, and other FAA-based requirements.

Candidates should also have at least five years of experience operating as a captain with a corporate flight department and at least 5,000 hours of flight time, plus other certificates. See the job listing for the full slate of required items.

Related: ‘We’re Not Effective’: Starbucks CEO Tells Corporate Employees to ‘Own Whether or Not This Place Grows’

You know that venture capital (VC) drives startup growth and innovation. However, it’s only part of the capital equation. The less glorified side of VC is just as critical, yet doesn’t get the same attention: compliance.

It makes sense. We all want to talk about the big bucks invested in exciting new ventures, but we don’t want to think about the rules and regulations that we need to follow to ensure funding is above board and legitimate.

I’m here to offer valuable insights into these regulatory challenges and how startups can manage them effectively. I aim to clarify the complexities of venture capital compliance while providing a helpful guide for emerging startups.

Related: Venture Capital 101: A Comprehensive Guide for Startups Seeking Investment

The essentials of venture capital compliance

Venture capital compliance covers many regulations and legal requirements that startups must adhere to when securing and managing funding.

These regulations are critical for financial management, legal obligations and investor relations. Compliance is not optional; it is essential to a startup’s legitimacy and long-term success.

The regulatory environment for venture capital includes national and international laws covering securities, investor protection and financial disclosures. These regulations ensure a fair and transparent investment process and promote ethical and legally sound practices for startups and investors.

Understanding compliance from the outset is crucial. A proactive approach to compliance can prevent legal pitfalls and enhance a startup’s credibility with investors. By embedding compliance into their operations, startups can manage the venture capital process effectively and securely.

Regulatory challenges for startups

Startups face numerous regulatory challenges in the venture capital space, including securities laws and complex fundraising regulations across various jurisdictions.

Maintaining healthy investor relations requires startups to be transparent and compliant with all relevant laws.

Securities laws govern the issuing and selling of shares, and non-compliance can result in severe penalties. Fundraising regulations involve many rules about how startups can solicit and accept investments.

A common hurdle for startups is the lack of awareness and understanding of these laws, which can lead to unintentional violations.

Education and preparation are key. Familiarize yourself with regulatory challenges and seek appropriate legal counsel to navigate them successfully. Don’t simply focus on avoiding penalties but on building trust and credibility with investors.

Related: What Does the Venture Capital Due Diligence Process Look Like? Here Is Your Step-by-Step Guide.

Compliance in fundraising

Fundraising is a critical phase for startups, and compliance plays a central role.

Each fundraising stage, from seed rounds to Series A funding, has its own compliance requirements. Managing these legal requirements is crucial for the smooth acquisition of venture capital.

Crafting a strong compliance strategy during fundraising involves ensuring all documentation is in order, from investment agreements to financial disclosures, and adhering to the legal frameworks governing these processes.

For seed rounds, startups need to be mindful of securities laws that apply to early-stage funding, often involving restrictions on the type and number of investors.

Transparency and clear communication with potential investors are essential. This builds confidence and trust, which are crucial for successful fundraising. Startups must stay informed of regulatory changes, as the legal landscape can shift, impacting fundraising strategies and compliance requirements.

Compliance in investor relations

Compliance is a legal requirement and foundational in building and maintaining robust investor relations. Navigating the complexities of compliance can significantly influence investor confidence and trust. A startup’s commitment to compliance demonstrates its dedication to ethical practices and long-term viability.

Compliance should be seen as a trust-building tool. By adhering to regulatory standards, startups signal to investors that they are reliable and committed to safeguarding their interests.

This is especially important in the early stages, where trust is critical to securing investment.

Startups should communicate their compliance efforts transparently with potential investors. Creating a compliant and investor-friendly environment involves regular updates about compliance efforts and open discussions about how regulatory changes might impact the business.

Reporting to investors

One thing that catches startups off guard in terms of compliance and reporting is the time requirement. It’s a much bigger task than most people anticipate.

When you report to your investors, get your traditional financial reports in order. You also want to have your K-1 documents prepared for tax season. This is vital for U.S.-based companies with investments; many don’t realize it.

Building a compliance strategy

Developing and implementing a robust compliance strategy is essential for any startup engaging with venture capital.

This strategy should encompass a range of activities, from establishing internal policies to conducting regular compliance audits. Start by setting clear internal policies that align with regulatory requirements. Communicate these policies effectively throughout the organization to ensure understanding and adherence.

Seeking legal counsel is also crucial, particularly for startups without in-house legal expertise. Legal experts can provide valuable insights into the complex regulatory environment and help startups manage these challenges effectively.

Regular compliance audits are another critical aspect of a successful strategy.

These audits ensure ongoing compliance with regulations and pinpoint potential risk areas. Proactive management helps startups avoid the pitfalls of non-compliance while maintaining their reputations in the investment community.

Related: Compliance Is No Longer Just a Back-Office Function — It’s a Core Driver of Brand Trust. Here’s the Cost of Getting It Wrong.

The future of venture capital compliance

Venture capital compliance requirements are constantly evolving.

Emerging trends and regulatory framework changes are shaping how startups and investors interact. Compliance requirements will become more complex as the investment environment becomes increasingly globalized and digitalized.

I see a future where regulatory technology is more significant in helping startups manage their compliance responsibilities. Using AI and machine learning to track and analyze regulatory changes could become standard practice, enabling more efficient compliance management.

Conclusion

In the fast-paced venture capital world, compliance is a critical element that startups must consider.

It’s essential to adopt a proactive approach to compliance. Staying informed and ahead of regulatory changes is not just about legal adherence; it’s about building trust, securing investments and laying the foundation for sustainable growth.

As the venture capital environment evolves, startups must remain agile and informed, ensuring their compliance strategies are robust and adaptable to the changing regulatory environment. By doing so, startups can continue to thrive and succeed in the competitive venture capital industry.

In 2023, Apple revealed a case of serious internal fraud. A longtime employee had exploited his access to procurement systems, diverting company funds, manipulating vendor relationships and approving fake invoices. The fallout: nearly $19 million in losses.

This wasn’t a Hollywood-style embezzlement. It was slow, quiet and unnoticed for years. It started with unchecked trust and processes that weren’t built to flag abuse.

As entrepreneurs, we often think internal fraud is a big-company problem. It’s not. It’s a systems problem. If you’re building a company, here are five warning signs your resources might be slipping through the cracks — and what you can do to stop it early.

Related: Deter the Inside Job. 5 Ways to Avert Employee Theft and Fraud.

1. Expenses that don’t match the function

If you’re seeing tools or services being expensed by departments that don’t need them, that’s a red flag. I once saw a marketing team regularly expensing high-end video editing software — all for one person. Turns out, it was being used for a personal YouTube channel.

This type of misuse often flies under the radar because it doesn’t look like employee theft. But it adds up.

What to do: Implement project-based expense tracking using tools like Divvy or Expensify. Use a hierarchical project code structure that ties expenses to teams, campaigns and dates. Review monthly reports by category to spot anomalies.

2. Unknown or unverified vendors

Fraud often hides in vendor lists. Fraudsters might create fake vendors or manipulate existing vendor accounts to siphon off funds under the guise of legitimate payments. In fact, over 60% of businesses reported facing attempted or actual payment fraud, much of it tied to vendor-related schemes like fake vendors, duplicate invoices and inflated billing.

What to do: Audit your vendor master list every quarter. Cross-check tax IDs, physical addresses (Google them) and contact details. Tools like Tealbook or Apex Portal can help streamline verification. Also, enforce dual authorization for any new vendor setup.

Flag vendors receiving more than three payments in 30 days or those with round-number invoices. These are patterns fraudsters rely on.

Related: ‘Trust But Verify’ Is How to Fight Back Against Employee Theft and Fraud

3. Employees who avoid oversight or vacation

One of the most overlooked signs is behavioral. People committing fraud often insist on “doing it all themselves” and never take leave — because they’re afraid someone else will uncover what they’ve been hiding.

What to do: Use role-based permissions and require peer review for all approvals. Platforms like SAP Concur or NetSuite allow audit trails and delegation during leave. Rotate key responsibilities annually, and encourage mandatory time-off. It’s not just good for mental health — it protects your systems.

Also, foster a culture of transparency. If your team feels safe raising concerns, you’ll hear about problems long before they show up in the books.

4. Recurring transactions that just slip below approval limits

This one’s clever. A team member submits $4,950 payments when the approval threshold is $5,000. Once? Fine. Monthly? That’s a red flag.

What to do: Adjust approval limits every quarter. Use transaction velocity monitoring in your ERP to flag repeat vendors or payees with high-frequency, low-value invoices. Set alerts for anyone trying to split invoices or payments.

In QuickBooks or Oracle NetSuite, for example, you can set workflow rules to escalate anything with unusual frequency, or sudden vendor activity spikes.

5. Missing documents or vague paper trails

When people start “losing” receipts or submitting retroactive justifications, you may have a problem. Fraud isn’t always about what’s visible — it’s about what conveniently isn’t.

What to do: Move to a cloud-based documentation system like DocuWare or Zoho WorkDrive. Require receipts to be uploaded within 48 hours of a transaction. Implement a digital approval chain and audit logs. If documentation is delayed more than once, escalate.

Why good people go rogue

Not all misuse is malicious. Sometimes, it’s pressure. Financial stress, feeling overlooked or just seeing others get away with it can trigger someone to justify poor decisions. That’s why creating a transparent and fair environment matters just as much as having strong controls.

Talk about integrity openly. Make ethics part of performance conversations. And make it clear that your systems aren’t about suspicion — they’re about fairness and sustainability.

The role of tech in staying ahead

Beyond accounting software, smart companies are using:

• AI-powered anomaly detection (e.g. MindBridge, DataSnipper)
• Real-time dashboards tracking spend per department (e.g. Datarails, Cube)
• Policy enforcement bots in Slack or Microsoft Teams that remind users of rules when they submit expense-related queries (e.g. Compliance.ai)

You don’t need all of these. But you do need systems that grow with your business.

Related: The 5 Most Common Fraud Scenarios for Small Businesses

Prevention is cheaper than cleanup

Resource misuse rarely starts with outright theft. It starts with small allowances, unchecked assumptions and leaders being too busy to notice.

If you’re reading this, take one action this week. Run a vendor audit. Update your approval policies. Review your expense categories. Just pick one.

Because the truth is, it’s a lot easier to fix a leak than to mop up a flood.