I have previously written about wrestling and startups, here and here. You can only imagine my delight reading this article entitled “Why Wrestlers Make the Best Employees” that was recently published by Forbes.
Yes, I am biased as I wrestled in high school and closely follow Cornell wrestling now. Yes, we (at Cayuga Venture Fund) hire a wrestler as an intern each year. And yes I favor wrestlers when I interview them – the same way I tend to favor military folks. They get the job done!
I will be joining more than 100 angels and VCs for StartFast Demo Day in Syracuse on August 16, 2012. This year’s cohort includes eight high growth startups from around the world who will present their business cases for investment. This event should be one of the largest gatherings of angel investors, serial entrepreneurs and venture capitalists in Upstate’s history. Demo Day details and online registration (free) are at http://startfast.net/investors.
StartFast Venture Accelerator (http://startfast.net) is a private investor backed program that is bringing the most promising Internet and mobile software startups to our region each summer. Full disclosure: Cayuga Venture Fund is a StartFast investor.
The eight teams were selected from over 320 prospects worldwide and have spent the past three months building their products and refining their business models under the guidance of more than 80 mentors who are also successful entrepreneurs and investors.
I am hoping that you share my belief that entrepreneurship and private capital investment are the keys to creating a better future for our community in Upstate. Demo Day offers a wonderful opportunity to grow your personal network, celebrate our region’s emerging entrepreneurial community and get a first glimpse at companies that have the potential to make a big impact!
I look forward to seeing you in Syracuse on August 16!
I have been asked a bunch of questions lately by young entrepreneurs that have made the phrases “please get a good startup lawyer” or “please get a good startup accountant” leap out of my mouth. A good startup lawyer or accountant needs to be a real person. It really cannot be an online filing service. Said another way, it is not possible to have a meaningful conversation with a computer. Also, you need to have a lawyer or accountant familiar with startups.
To illustrate, here is an exchange from last night (names changed to protect the innocent!):
“Hi Mr. Shulman, I hope you are having a great summer. I successfully filed XYZ Corp as a C corp back in June and am waiting for the Articles to arrive in the mail. I had a chance to speak with an accountant regarding what to do with the 83b tax election and was wondering if you happened to know the answer to my question: The accountant told me I have to submit it within 30 days after I purchase the stock (or the “Award Date”). Do you know if I need to submit a Stock Purchase Agreement and when I need to do it? Technically I started the company, so wouldn’t I have started with all the shares to begin with? I changed my incorporation form (on LegalZoom) to say that I contributed $0 (where it says $3,000). Thanks so much for your time and advice.”
My response: “Joe, you need to consult with your lawyer or accountant. If your stock is not vesting then you would not need to file a 83b.”
Joe’s response: “Ok. Yes, my stock will be vesting.”
My response: “Are you the only stockholder? Is your stock actually vesting NOW?”
Joe’s response: “Nope I am not the only stockholder. My partner and I have not signed any formal agreements. There is no written statement that says when my stock will begin vesting.”
My response: “You have 30 days from the date vesting starts. The 83b election is a form. Talk to your accountant and don’t mess it up.”
Joe’s response: “Ok thanks.”
This exchange illustrates my point. I was a little tired and writing from my phone so my responses were short and direct. First, LegalZoom is not a person so it is really hard to ask it follow on questions (add dose of sarcasm here). LegalZoom is fine for getting your entity set up (though I have no clue why it would take so long for Joe to get a copy of his filing!) or filing a trademark (though I always recommend a live human being instead). But you need a good human resource for legal and accounting questions. AKA: a startup lawyer and accountant. Joe’s question on the 83b election is critical. If he messes up the filing it could have dramatic and adverse tax consequences if his company is successful. I wish the accountant that the spoke with gave him more concrete accurate advice. He needs to file within 30 days of vesting being imposed. Note that I think it is great that Joe and his partner have agreed to have their shares vest. See my earlier post on that topic here. When they put that vesting in place, they better timely file the 83b election.
Summary: paying for good advice from a lawyer or accountant that is a human being is worth the cost! Gets you peace of mind, gets you efficiency and lets you focus more on your business.
ithaca VC 