6 ms·

> Currently only the privileged can found and fund new companies. What? It's about $200 in Seattle to file to register a Limited Liability Company. It's a stre

> Currently only the privileged can found and fund new companies. What? It's about $200 in Seattle to file to register a Limited Liability Company. It's a stretch to call that 'only the privileged'.

drcode 10y ago
I'm pretty convinced the vast majority of tech startups were started by individuals who relied on their family supporting them through the initial phases of their business.
- reviseddamage 10y ago
  pretty convinced from what data? source please? thanks!
  - drcode 10y ago
    I don't know if anyone has collected any formal data, I'm basing it on my personal experience. Certainly plenty of other people make the same observation. http://www.sfchronicle.com/business/article/Why-do-so-few-startup-founders-grow-up-6794214.php http://www.sfchronicle.com/business/article/Why-do-so-few-st...
  - sp332 10y ago
    Yeah, a couple of studies have been done on it. http://qz.com/455109/entrepreneurs-dont-have-a-special-gene-for-risk-they-come-from-families-with-money/ http://qz.com/455109/entrepreneurs-dont-have-a-special-gene-...
- deelowe 10y ago
  Vast majority? Really?
mfringel 10y ago
"Do the paperwork for creation" has only a passing resemblance to "found and fund."
- beachstartup 10y ago
  "found" means to do the paperwork and setup a bank account. that's it. there's no deeper meaning. "fund" just means putting some money into a bank account for it. you could fund a company with a dollar (and many people do, for symbolic reasons).
  - mfringel 10y ago
    You have just enumerated the "passing resemblance" noted above. Connotations matter.
    - beachstartup 10y ago
      i've done it multiple times. believe me when i tell you a huge, huge number of wantrapreneurs never even get around to organizing an LLC and opening a bank account. want to know why? it takes at least 10 hours of work and when faced with doing 10 hours of actual fucking work, most people won't.
  - dwaltrip 10y ago
    "With reasonable hope of success" is an implied clause of the original sentence. You might have not considered this aspect.
    - madelinecameron 10y ago
      At a certain point we have to stop beating around the bush and admit that being successful isn't something people are entitled to and it is something you actually have to work at.
      - dwaltrip 10y ago
        Or course, no one is entitled to it. And I do think focusing on disadvantages can be a problem, and make it harder to succeed.
Zikes 10y ago
> The individual must have a net worth greater than $1 million, either individually or jointly with the individual’s spouse. [1] http://www.sec.gov/info/smallbus/secg/accredited-investor-net-worth-standard-secg.htm http://www.sec.gov/info/smallbus/secg/accredited-investor-ne...
- howlingfantods 10y ago
  That's the requirement to be an accredited investor, not to register a small business.
- capote 10y ago
  Think about how many of the major and wonderful companies we have today wouldn't exist if this were true.
technotony 10y ago
Especially now Title III campaigns are live and anyone can raise from anyone. See www.wefunder.com for example.
moron4hire 10y ago
There is also the Small-Business Administration, which can fast-track certain well-known types of companies. As an example: say you were a woman who had served time in the military and are trying to setup a hair salon. There are two incentive programs for your demographic specifically, and an additional set of resources for your business specifically. You'd basically get an "account manager" from the SBA who has setup several of these before, such that the experience is practically turnkey and requires very little of your own money. Now, if you're trying to do something really risky like make a smartphone app, no, you're probably not going to get anywhere with the SBA. They aren't VCs making bets on long-shots. But they are more willing than a bank to work with you and help you get set up.

> Currently only the privileged can found and fund new companies. What? It's about $200 in Seattle to file to register a Limited Liability Company. It's a stretch to call that 'only the privileged'.

drcode 10y ago

I'm pretty convinced the vast majority of tech startups were started by individuals who relied on their family supporting them through the initial phases of their business.

reviseddamage 10y ago
pretty convinced from what data? source please? thanks!
- drcode 10y ago
  I don't know if anyone has collected any formal data, I'm basing it on my personal experience. Certainly plenty of other people make the same observation. http://www.sfchronicle.com/business/article/Why-do-so-few-startup-founders-grow-up-6794214.php http://www.sfchronicle.com/business/article/Why-do-so-few-st...
- sp332 10y ago
  Yeah, a couple of studies have been done on it. http://qz.com/455109/entrepreneurs-dont-have-a-special-gene-for-risk-they-come-from-families-with-money/ http://qz.com/455109/entrepreneurs-dont-have-a-special-gene-...
deelowe 10y ago
Vast majority? Really?

mfringel 10y ago

"Do the paperwork for creation" has only a passing resemblance to "found and fund."

beachstartup 10y ago
"found" means to do the paperwork and setup a bank account. that's it. there's no deeper meaning. "fund" just means putting some money into a bank account for it. you could fund a company with a dollar (and many people do, for symbolic reasons).
- mfringel 10y ago
  You have just enumerated the "passing resemblance" noted above. Connotations matter.
  - beachstartup 10y ago
    i've done it multiple times. believe me when i tell you a huge, huge number of wantrapreneurs never even get around to organizing an LLC and opening a bank account. want to know why? it takes at least 10 hours of work and when faced with doing 10 hours of actual fucking work, most people won't.
- dwaltrip 10y ago
  "With reasonable hope of success" is an implied clause of the original sentence. You might have not considered this aspect.
  - madelinecameron 10y ago
    At a certain point we have to stop beating around the bush and admit that being successful isn't something people are entitled to and it is something you actually have to work at.
    - dwaltrip 10y ago
      Or course, no one is entitled to it. And I do think focusing on disadvantages can be a problem, and make it harder to succeed.

Zikes 10y ago

> The individual must have a net worth greater than $1 million, either individually or jointly with the individual’s spouse. [1] http://www.sec.gov/info/smallbus/secg/accredited-investor-net-worth-standard-secg.htm http://www.sec.gov/info/smallbus/secg/accredited-investor-ne...

howlingfantods 10y ago
That's the requirement to be an accredited investor, not to register a small business.
capote 10y ago
Think about how many of the major and wonderful companies we have today wouldn't exist if this were true.

technotony 10y ago

Especially now Title III campaigns are live and anyone can raise from anyone. See www.wefunder.com for example.

moron4hire 10y ago

There is also the Small-Business Administration, which can fast-track certain well-known types of companies. As an example: say you were a woman who had served time in the military and are trying to setup a hair salon. There are two incentive programs for your demographic specifically, and an additional set of resources for your business specifically. You'd basically get an "account manager" from the SBA who has setup several of these before, such that the experience is practically turnkey and requires very little of your own money. Now, if you're trying to do something really risky like make a smartphone app, no, you're probably not going to get anywhere with the SBA. They aren't VCs making bets on long-shots. But they are more willing than a bank to work with you and help you get set up.