Thanks!
84 karma · joined June 9, 2010
Thanks!
I always get the feeling that lots of startup entrepreneurs get the impression that just setting up a corporation through an online provider is the end of the process, in reality it's just the beginning. If you don't follow through you might as well save your money and just operate as a sole proprietorship.
As shown by the gentleman that publishes HackerNews Monthly, there's definitely a market for the collection/curation of content, and that business probably scales pretty well.
There have to be all kinds of audiences out there that don't have time for a deep dive into the 'net to find the content they are regularly interested in, setup RSS feeds, etc. Bringing quality content to them that either entertains, educates, or enlightens (not to mention enriches) would seem to be a good business with a very good future.
For noobs like me I highly recommend the CS101 course, I found that a lot of stuff I was struggling with in Learn Python the Hardway (a great resource as well by the way and many thanks to Zed for making it available) and other sources online became clearer to me during the CS101 course.
I am looking forward to CS253:Web Application Engineering next.
The problem with "ex ante" regulations governing conduct is you force a lot of wasteful work on a lot of people and companies that becomes a drag on the economy, productivity, whatever you want to call it.
Let's make an analogy that's appropriate for this time of year. Some people cheat on their taxes. Some cheaters get audited and caught, some don't. Since we know that some people cheat on their taxes and an audit will uncover it should we force every tax filer in the US to submit receipts and other documentation for every deduction claimed on their return, at the time of filing?
Can you imagine how much time that would take for filers and the IRS? Can you imagine the outrage on the part of filers?
The Taibbi article sites to a Bloomberg opinion piece that baldly states that people can lie in their pitch and get away with it. However, if you read the legislation (or at least credible legal analysis of it): A) the pre-prospectus presentations can only be made to qualified investors and institutions (meaning you are supposed to be a sophisticated investor, not the general public and will read or pay someone to read the prospectus when it is filed) and B) the actual regulations that will enact the law haven't been written yet.
There definitely will be (and need to be) reasonable regulations to enact this law, I don't argue that at all. I just think the whole tone and content of this article is over the top and biased. I enjoyed reading his evisceration of GS, but I do think it has influenced his writing about anything having to do with the securities markets or finance in general.
Your citation to the NY Times only governs "a company's internal financial controls" - not it's financials or independent accounting requirements (which is essentially audited financials).
My original criticism of the Rolling Stone assertion as reproduced by quote in the 37Signals blog post was and is that companies are exempt from independent accounting requirements. That's supported in the information I cited.
A few tidbits: Even worse, the JOBS Act, incredibly, will allow executives to give "pre-prospectus" presentations to investors using PowerPoint and other tools in which they will not be held liable for misrepresentations. These firms will still be obligated to submit prospectuses before their IPOs, and they'll still be held liable for what's in those. But it'll be up to the investor to check and make sure that the prospectus matches the "pre-presentation."
Oh my gosh - you mean before I invest my hard earned money I should read the PROSPECTUS. Say it ain't so.
Then he goes on to say: In the same way, get ready for an avalanche of shareholder suits ten years from now, since post-factum civil litigation will be the only real regulation of the startup market. In fact, there are already supporters talking up future lawsuits as an appropriate tool to replace the regulations being wiped out by this bill.
Isn't "post-factum civil litigation" an even better mechanism for enforcement?
Look companies that are "bad actors" are going to cheat the SEC and the public anyway, and companies that aren't "bad actors" had to go through the additional expenses to comply with the SEC regs that have now been relaxed.
I would rather have motivated shareholders (and their lawyers) with an axe to grind policing the markets than bureaucrats. If you look at the job bureaucrats have done to date,the track record is not so great.
Read more: http://www.rollingstone.com/politics/blogs/taibblog/why-obam...
Matt Taibbi from Rolling Stones reports:
Ostensibly, the law makes it easier for startup companies (particularly tech companies, whose lobbyists were a driving force behind passage of this law) attract capital by, among other things, exempting them from independent accounting requirements for up to five years after they first begin selling shares in the stock market.
Is just wrong. You still need audited financials to be a public company (current, plus 2 years prior to IPO instead of 3). I believe what changed is some of the Sarbox rules related to rotating auditors, etc. See http://www.orrick.com/fileupload/4624.htm for one leading law firm's analysis of the JOBS act.
(I am not affiliated with the firm)
There is certainly room to relax some of the regulations put on small public co's by Sarbox. That's part of the reason companies are listing on foreign exchanges, and let's be honest, you dont' see "fraud running amuck" on the London Stock Exchange do you?
I like 37 Signals approach to building products and many of their business philosophies but they seem to have a need to relentlessly attack any other way of creating a company or doing business. Not quite sure why.
Both courses/companies have been great for me though as a non-programmer. I think these companies and others like them have bright futures.