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If Atlas is implemented as promised (probably a safe assumption given the Stripe team), it will afford founders throughout the world a pain-free entry point int
by grellas 11y ago
If Atlas is implemented as promised (probably a safe assumption given the Stripe team), it will afford founders throughout the world a pain-free entry point into the world's most advanced economy, opening the way for key financing, for seamless payments processing, for ease of banking transactions to get people paid and to move funds easily, and for access to advice and guidance from people in the know to address a whole host of other problems and challenges that are faced by budding ventures who have had initial success in their home countries but need help in breaking out from there to gain potential international success.
This is no small feat.
I can't tell you how often in my many years of working with startups I have had foreign founders reach out to me in bewilderment over how to solve even the most basic problems as they sought to grow internationally and to gain a U.S. presence. It is not that the challenges are daunting or insurmountable. Many companies have dealt with them before. But they have had to do so in the context of having to grope around in the dark until they could figure things out. This cost them time. It cost them money. And it often meant they made mistakes that could set them back.
With a platform such as Atlas, they will now have a turnkey solution to this traditional problem. The solution is standardized and this means it has its limits. In solving the "step one" problem efficiently and at what appears to be low cost, however, it represents a major advance over current solutions and is very impressive indeed. For foreign founders doing amazing things on the talent side but needing to gain greater exposure and take next steps, it is basically a platform for greater credibility. You gain a U.S. presence. You expand your money handling capabilities. You position for greater funding. And you connect with experts who can be there to guide as needed.
The legal piece on this is vital but almost in tow, as it were. A standard Delaware C corp is the only option, which is adequate for a start but will clearly not meet the needs of a potentially huge number of founding teams that may have differing circumstances. It seems that this range of choices will be broadened on the Atlas platform over time. For now (and over time), founders are told to link up with legal counsel (either their own or a default provider) to sort through these issues. This, along with good CPA support, is vital to make sure the right tax and other decisions are made along the way. The platform simplifies the process enormously but significant complexities remain in the substance of what needs to be done. What Atlas does in this regard is to give founders a foundation from which they are well positioned to "take it from there." In this sense, it is a tool, not a legal or CPA resource as such (as it should be).
Stripe appears to have sought out a way to expand demand for its payments processing services and has come up, in effect, with a way of creating a sort of virtual Silicon Valley for the world's startup entrepreneurs. This will not be for everyone but it looks like it will be a great solution for many.
One can say kudos for that but that would almost seem to be a form of understatement. I look forward to seeing how it will continue to develop.
- pbreit 11y agoI'm still a little confused on whether or not this is better than incorporating in your own country. Is this more geared to accelerator startups who are thinking of moving to the US? Certainly US incorporation is not required (or even all that helpful?) in establishing a US presence?
- zekevermillion 11y agoThis is all about access to US bank accounts.
- andreasklinger 11y agoIt's not so much about entering the US market imo as it is about being investor standard ready. This is essentially the step 0 to standard investment contracts
- michaelschade 11y agoGreat question! I've learned a lot about this as I've gotten to hear from entrepreneurs that tried to setup in their own country, but ultimately came to the US. The video on our site gives some glimpse into the problems these entrepreneurs run into: https://stripe.com/atlas#stories https://stripe.com/atlas#stories The gist is that certain countries have a better business and banking infrastructure than others for entrepreneurs looking to establish a global company. This isn't necessarily specific to the US—and we'll be expanding Atlas to more countries—but the US is a solid starting point, based on what many entrepreneurs in emerging markets already do. For example, incorporating in a place like Delaware allows companies to issue stock to employees, makes it easy to raise money from global investors, and provides the stability of clear corporate rules and case law. (Most Fortune 500 companies are established in Delaware). Getting started with a US incorporation also makes many more services accessible to you, that might not be available if you incorporated in your own country with less support for new businesses. It's a personal decision, for sure, but if you're in a country where you're finding your business constrained by the lack of particular banking infrastructure or access to business services, we think Atlas can help.
- 11y ago