Startup Professionals Musings

SEPTEMBER 11, 2017

Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas.

IPO 218

IPO SEC Prospectus Technical Review 218

Startup Professionals Musings

JANUARY 20, 2019

Most of these are easy to avoid if you do your homework up front, but can cost you dearly if you get sucked in. If you feel confused by conflicting time zones, differing currencies, and up-front costs, it’s time to run the other way. The SEC and local law enforcement agencies can’t help you much with foreign scams.

Technical Review 228

Technical Review Non-disclosure Agreement Due Diligence Term Sheet 228

Scott Edward Walker

AUGUST 30, 2020

This past Wednesday, the Securities and Exchange Commission (SEC) adopted amendments expanding the definition of “accredited investor” to include individuals who hold certain professional certifications/licenses or have certain “credentials,” as determined by the SEC. Background. Current Definition of “Accredited Investor”.

Accredited Investor 52

Accredited Investor SEC Securities and Exchange Commission Private Placement 52

YoungUpstarts

JUNE 11, 2012

Negative SEC filings are bad enough, but having one show up on the first page of a Google search for your brand when someone is deciding whether or not to do business with you is much worse. Here’s my top five (actually eight) villainous sites for businesses looking to protect their precious online reputations.

Reputation 243

Reputation Management SEC SEO 243

YoungUpstarts

AUGUST 21, 2020

In June of 2019, the SEC adopted Regulation Best Interest (or Reg BI), which went into effect as of June 30, 2020. For a 30-year-old customer with an expected lifespan of 70 years, there might be a premium that spreads out the company’s risk and the consumer’s cost over a longer timeframe. We’re approaching one such time right now.

Technical Review 244

Technical Review SEC Affiliate Technology 244

Startup Professionals Musings

MAY 29, 2022

Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas.

IPO 245

IPO SEC Prospectus Startup 245

Startup Professionals Musings

FEBRUARY 1, 2015

Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas.

IPO 120

IPO SEC Prospectus Startup 120

Austin Startup

JUNE 21, 2018

In 1937 (yeah, it takes that long to win the Nobel prize), Coase wrote a paper called the Nature of the Firm that revealed the fact that transaction costs are almost always material and do shape economic transactions. Transaction costs, while not always monetary, affect our willingness to buy, sell, and engage in a market.

Securities and Exchange Commission 61

Securities and Exchange Commission SEC Pre-Money Valuation Security 61

Up and Running

NOVEMBER 12, 2014

Additionally, a fundraising business offering and selling securities must comply with the regulations of the SEC, the federal government’s securities watchdog. The SEC’s proposed equity crowdfunding rules regulate, in part: Your business (the securities issuer). Cover Upfront Costs. The investors. Set a Fundraising Goal.

Equity 125

Equity SEC Technical Review Security 125

Startup Professionals Musings

JANUARY 18, 2017

Most of these are easy to avoid if you do your homework up front, but can cost you dearly if you get sucked in. If you feel confused by conflicting time zones, differing currencies, and up-front costs, it’s time to run the other way. The SEC and local law enforcement agencies can’t help you much with foreign scams.

Technical Review 120

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 120

Startup Professionals Musings

SEPTEMBER 26, 2013

Most of these are easy to avoid if you do your homework up front, but can cost you dearly if you get sucked in. If you feel confused by conflicting time zones, differing currencies, and up-front costs, it’s time to run the other way. The SEC and local law enforcement agencies can’t help you much with foreign scams.

Technical Review 202

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 202

Scott Edward Walker

JUNE 30, 2011

As a general rule, a company may not offer or sell its securities unless (i) the securities have been registered with the Securities and Exchange Commission (SEC) and registered/qualified with applicable state commissions; or (ii) there is an applicable exemption from registration. Tip #2: Do Not Use an Unregistered Finder to Sell Securities.

Securities and Exchange Commission 76

Securities and Exchange Commission Accredited Investor Private Placement Finder 76

Startup Professionals Musings

FEBRUARY 21, 2015

despite having been passed into law in early 2012 via the JOBS Act , and still has no scheduled date for availability, waiting for the rules to be finalized by the SEC. In fact, perhaps the most important model, equity crowdfunding for non-accredited investors, is still not legal in the U.S.,

Accredited Investor 120

Accredited Investor SEC Equity Europe 120

Startup Professionals Musings

DECEMBER 9, 2019

To refresh your memory, angel investors are typically high net worth individuals, accredited by the SEC and willing to invest their own money in a high-potential startup for a share of the ownership. Compare the time frames and costs of alternatives.

Non-disclosure Agreement 299

Non-disclosure Agreement Angel Investor Bootstrapping SEC 299

Up and Running

AUGUST 28, 2019

Having both will add cost, but they should also add significant peace of mind to your work throughout this process. The cost of filing ranges between $100 up to $800 or so, depending on your state and type of entity. . Even if you’re chomping at the bit to get started, read through these initial ideas before diving in. .

Delaware 83

Delaware Stock Nevada Technical Review 83

Steve Blank

NOVEMBER 13, 2012

After helping build the first Ethernet switch startup, I was attracted by Asynchronous Transfer Mode 25Mbit/sec technology, (ATM25) which was 2.5x Back in 1990’s, I was working for one of the leading sogo shohsa (trading company) in Japan, building data communications startups. faster than Ethernet and ran data but plus voice and video.

Japan 292

Japan Customer Development Developer Customer 292

The Startup Magazine

NOVEMBER 17, 2021

The SEC tightly regulates the way you must share information about your investment opportunity, and following this framework is absolutely mandatory. If your team isn’t sure about how they craft communications regarding the SEC’s requirements, you can find disclosure guidance here. Credit: ilixe48 via FreePik. Challenge No.

Initial Public Offering 143

Initial Public Offering Merger IPO SEC 143

Haystack

DECEMBER 29, 2018

During this time, there’s financial leverage used in the transaction to help buffer the firm’s cost of capital (e.g. As more investors have more touch points with a “Softbank round” in their portfolio, a picture emerges — rounds here often take a long time to close. 1/ Social Network Interference.

Technical Review 165

Technical Review Venture Capital Russia China 165

Kodorra

JANUARY 4, 2019

Due to its simplicity to set up, the cost is obviously lower than IEO and STO. Securities and Exchange Commission (SEC) requires a lock-up period in their Regulation S where investors are unable to cash out their investment for up to one year. But with lower investor protection and light regulation, some ICOs are downright scams.

Securities and Exchange Commission 40

Securities and Exchange Commission Technical Review Lock-up Period Accredited Investor 40

Gust

NOVEMBER 8, 2012

Now all eyes are on the SEC as it adopts regulations to implement the new law with the hope that it won’t get tied up in red tape. In April 2012, Congress passed the JOBS Act , which authorizes equity crowdfunding and liberalizes some requirements regarding the issuance of securities by privately held companies. Free Speech.

Silicon Valley 187

Silicon Valley San Francisco Intellectual Property Accredited Investor 187

Both Sides of the Table

NOVEMBER 9, 2014

I’m not saying that VC behavior is always impeccably honorable but the truth is that there are so few VCs and the reputational costs of bad behavior are now so high that becoming known as somebody who leaks confidential information can have immediate negative consequences. Let me be clear about this. But here’s the thing.

SEC 352

SEC Venture Capital Early Stage Cofounder 352

David Teten

FEBRUARY 26, 2012

HBSANY members are required to be accredited investors (per SEC regulations) and are expected to agree to the terms of the HBSANY Membership Agreement. Remedy Systems ( www.remedysystems.com ) designs and builds practical mobile product platforms that lower the costs and improve the quality of healthcare.

Technical Review 128

Technical Review New York Accredited Investor IP 128

Startup Professionals Musings

SEPTEMBER 11, 2013

Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas.

IPO 242

IPO SEC Prospectus Startup 242

Austin Startup

JANUARY 25, 2020

But before we got back to work, we had to hire a lawyer to help out with both the SAFE docs and to file our FORM D with the SEC so we can register our raise. Having raised it under Rule 504 of Regulation D of the Securities Act of 1933, the law requires us to file with the SEC. The lawyer’s rate was crazy?—?$575 575 per hour?—?and

Delaware 62

Delaware SEC New York City New York 62

YoungUpstarts

JANUARY 16, 2019

Startup Costs. However, stocks require a startup cost of $25,000 and you must maintain that amount minimally in your account to be able to day trade in stocks. Securities and Exchange Commission (SEC) website. Pick the market that interests you and take the time to understand it. Day traders thrive on trading with stocks.

Securities and Exchange Commission 138

Securities and Exchange Commission Stock SEC Security 138

View from Seed

JANUARY 5, 2021

The script was largely the same for SpaceX, though the mission was to empower lower cost space travel and human settlement beyond Earth and it required displacing a stodgy aerospace industry. In many ways this crusade has been taken up by the modern fintech revolution.

Detroit 367

Detroit SEC Founder Affiliate 367

Steve Blank

OCTOBER 9, 2018

startups might run into an alphabet soup of federal regulatory agencies, for example; ATF , CFPB , DEA , EPA , FAA , FCC , FDA , FDIC , FERC , FTC , OCC , OSHA , SEC. Lobbyists also work through regulatory bodies like the FCC , SEC , FTC , Public Utility, Taxi, or Insurance Commissions, School Boards, etc. In the U.S.

Marketing 321

Marketing Startup Government SEC 321

Feld Thoughts

JUNE 8, 2021

They happily traded equities for me, which mostly just cost me fees in the end, although I covered it all with a crazy transaction into a weird Exchange Fund that GS created in 2000. In the mid-1990s, when I had a bunch of money after the sale of my first company, I bought and sold some public company stocks.

Stock 172

Stock SEC Equity Matching 172

Startup Professionals Musings

AUGUST 26, 2018

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. In addition, officers may face liability for misrepresentations or speaking out in public and SEC reports. The costs of an aborted IPO are sizable, and may not be deferred to a later period or offering.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

YoungUpstarts

FEBRUARY 1, 2020

Before your financial statements can be filed with the SEC or distributed outside of your business, an external auditor must ensure your records adhere to GAAP. Even if something is not a cash transaction, you still need to cost it. The Financial Accounting Standards Board establishes these standards. Stock Option Expensing. .

CPA 165

CPA Stock Options Valuation Stock 165

Feld Thoughts

APRIL 21, 2014

We had to grind through a refiling of our S-1 which cost us a month. Our underwriters (Merrill Lynch) told us not to worry that the SEC hadn’t cleared our filing yet – they always did it a few days before you went public. Day after day passed and we didn’t hear from the SEC.

Stock 140

Stock Internet SEC Italy 140

BeyondVC

JANUARY 6, 2018

Corporate America is pressured to decrease costs and improve customer interactions and every Fortune 500 is a technology company. Dev Sec Ops is the hot topic in security: With the velocity of software development and the reuse of software components, building in security at developer level becomes a must have.

Cloud 60

Cloud Cofounder Portfolio Advisory Board 60

Startup Professionals Musings

JUNE 6, 2014

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. In addition, officers may face liability for misrepresentations or speaking out in public and SEC reports. The costs of an aborted IPO are sizable, and may not be deferred to a later period or offering.

IPO 236

IPO Initial Public Offering Startup Small Business Administration 236

ConversionXL

JULY 7, 2019

Amazon bet it’s entire Prime membership on consumers’ obsession with free shipping (even when it’s baked into the cost elsewhere). If you charge for shipping … If you still decide to charge for shipping, mention shipping costs up front. Shipping costs. This is costing them sales. Will it fit me?

eCommerce 105

eCommerce Conversion Software Review Technical Review 105

Version One Ventures

OCTOBER 7, 2014

You can read Krager’s article for all the figures (many of which are from Hubspot’s S1 SEC filing and from Moz directly), but here are some of the key differences: Hubspot spends $11,233 to acquire a new customer. Its customer acquisition costs are roughly 85 times that of Moz (if Krager’s figures are accurately comparing apples to apples).

Initial Public Offering 148

Initial Public Offering IPO SEC Valuation 148

The Startup Magazine

OCTOBER 2, 2020

Public accounting helps ensure that your company is meeting the guidelines set by the Securities Exchange Commission (SEC), as well as the Financial Accounting Standards Board (FASB). Regardless of the nature of your business, you should invest in an accounting software as this is actually cost-effective in the long run.An

Securities and Exchange Commission 150

Securities and Exchange Commission Finance SEC Software 150

Startup Professionals Musings

AUGUST 7, 2016

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. In addition, officers may face liability for misrepresentations or speaking out in public and SEC reports. The costs of an aborted IPO are sizable, and may not be deferred to a later period or offering.

IPO 120

IPO Initial Public Offering SEC Stock Options 120