StartUp Programs: by Sutter Law, a San Francisco Business Law Firm

StartUp Programs: by Sutter Law, a San Francisco Business Law Firm

Startup Programs: Tech Gold Rush! Believe it or not we are in the middle of our second tech boom. Some call this the “Facebook Factor”. Every investor is looking for the next big thing, the next Facebook. The tech startup gold rush is on. It seems there is a perfect storm of opportunities, with so many talented people being laid-off, with information technologies making any motivated entrepreneur into an expert, and investors scouring for the next big thing. The question is, “Should I do it myself, or should I take on an investor?”. There is no easy answer; each business is different. Organic Growth: Some startups want to grow organically (only grow with hiring based on incoming revenue).  There are several advantages to organic growth over an investor-funded startup. The founder(s) can maintain control of all aspects of the company. The ability to stay in stealth mode until you are ready for the market place. You can operate under a simpler Limited Liability Company, Sol-Proprietor or Partnership agreement. When your payday comes you will have a 100% share of profits. No oversight or compliance issues. These are just a few of the reasons to reject outside investors. Investor Growth: Others believe that taking an investor can help overcome the startup growing pains. If your idea is sound then extra capital can only help bring your idea to the market place, faster, with the needed staff, and your technology/infrastructure in place. Investor capital can help you bring your idea to the market place faster. It gives you the opportunity to hire employees as needed. You can buy/lease office space. You...