So you’ve incorporated or formed an LLC for your business. What’s next? After spending time and energy deciding which business structure to form and when to do it, you now have another set of questions to answer.
Launching a startup requires extreme organization, attention to detail and dedication. It also requires founders to decode complicated legalese, mountains of paperwork. Even in the earliest stages, you want to protect your company, your product and your ideas.
The Flash knows the importance of protecting important business and personal data from the ever-expanding reach of hackers – and now the market is paying attention, too. Andreessen Horowitz now sees cybersecurity startups as a lucrative tech niche, and Google Capital recently made its first cybersecurity investment. With data breaches taking place on a seemingly daily basis, VCs and other investors are starting to boost funding for all manners of cybersecurity startups.
The Flash also checks in on the Uber/”gig economy” labor fight. The most recent entrant to the ring this week hails from Washington, DC, and has the federal heft to make this a real heavyweight match. On July 15, the U.S. Department of Labor issued an “Administrator’s Interpretation” on the classification of independent contractors. More is sure to come in this slugfest…
Check out these and more in The Flash this week!
- Cybersecurity becomes a VC/investor darling (Wall Street Journal)
- S. Dept. of Labor weighs in on ‘Uber fight’ (Inc)
- Sued for patent infringement? Google wants to help (Bloomberg Business)
- Are Steve Huffman’s new rules for Reddit enough? (Re-code)
What Aereo ruling means for tech
The Supreme Court’s recent ruling on Aereo effectively shut down the service due to complaints of copyright infringement. This decision could mean trouble for “sharing economy” companies like Airbnb and Uber, which have also come under scrutiny by regulators. Just as Aereo was deemed to essentially be a cable company, regulators may decide Uber is a taxi service and Airbnb a hotel service, subjecting each tech company to its corresponding industry’s rules and taxes.
Some highlights from this week’s articles:
“Tesla Motors Chief Executive Elon Musk is frustrated that fewer than 1% of vehicles sold run on batteries only, so he’s offering open access to his company’s patents in hopes rival car makers will follow his lead.” – Tesla’s Patent Giveaway: Please Use Our Batteries, Joseph B. White, The Wall Street Journal
“Don’t surround yourself with other people who are making it up as they go along. Experience matters.” – Finding the Right Team to Lead Your Startup to Success, Jon Elvekrog, Entrepreneur
“The biggest barrier to charging profitable prices is in your own mind.” – Ready to Raise Prices? 4 Steps to More Profitable Pricing, Mike Michalowicz, Open Forum
This week’s articles discuss the potential of a ‘verbal’ Internet accessible by telephone, offer alternatives to the outdated “waterfall model” for raising venture financing, explain how to manage a PR nightmare, and recap the three acts of Congress that saved Pandora.
This week’s articles evaluate loss ratios and what they imply about a VC’s performance, explain why start-ups need D&O insurance, discuss how to show VCs what your competition looks like, and argue that marketing trumps technology when starting up.
This week’s articles recap the first twelve months in the life of a start-up, examine one founder’s legal battle against patent infringement claims, reveal the challenges Twitter faced in its early start-up days, and offer five lessons on marketing for a cash-strapped, early-stage start-up.
This week’s articles take us behind the scenes of the recent New York ‘cronut’ craze, compare how two different entrepreneurs in the same market financed their businesses, suggest one smart way to lure a crowd to your product, and discuss how long it’s appropriate to outsource work before a full-time employee is needed.
This week’s articles analyze the risk of investing large sums of money into small business advertising, argue why your company should use the kickstarter model to innovate, discuss the merits and demerits of acquihires, and explain how to determine if your product needs to be patented.