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Ask HN: Feedback on my startup, OpenStarts

5 points by david927 15y ago

Please take a look at OpenStarts (www.openstarts.com, clickable link below) and let me know what you think. I'm also looking for a non-technical co-founder to do business development. If you're a developer or a designer with spare time on weekends, let me know as well. I'm at: david@openstarts.com

david927 15y ago
Clickable link: http://www.openstarts.com http://www.openstarts.com
Egregore 15y ago
I'm not sure, but I think I've read that something like this is illegal in US (only rich people can invest in such things) it also can be illegal in other countries, have you investigated this?
- david927 15y ago
  That's the point If you read the deck again, you'll see that what you're saying about rich people (meaning 'accredited investors') is true for private companies. You can invest in Amazon but not Facebook; you can buy shares of Google but not Twitter. And that's what is being solved here! What OpenStarts does is to assist in the creation of "public but not listed" companies in the EU -- perfectly legal -- and then offers a directory where you can find them and potentially buy shares (subtly, but legally, eliminating the problem of listing).
ig1 15y ago
What are the implications of founding a company in Malta ? -are you bound by their tax regime, legal system, how does the corporate structure effect acquisition potential. Also I'm guessing you'll only be able to take investment locally, you won't be allowed to promote the opportunity in countries which have minimum investor requirements (like the UK and the US) so that'll probably substantially decrease your pool of investors.
- david927 15y ago
  Yes, you are bound by Maltese taxes and its legal system. It's EU, though, so it's not that different than the UK or Germany, for example. Companies can't promote the opportunity -- and that's a key point covered in the slides. OpenStarts, like Crunchbase, lists all sorts of companies but for those that are Malta public LLC's, you can inquire and solicit a prospectus. So the user is asking the company; the company never promotes. Investment may be made by anyone, regardless of nationality. If they can invest in SAP, for example, they can also invest there.
  - ig1 15y ago
    Germany and the UK have hugely different tax and legal systems, many startups from across Europe incorporate in London due to the fact that London is much more business friendly. Won't OpenStarts itself be counted as a form of promotion ? - most hedge fund websites block people from outside their home country so they don't get prosecuted for offering an investment opportunity in countries where they're not licensed. Your building this directory for the sole purpose of helping companies get funded, that's probably enough for you to be classified as a financial promotion.
    - david927 15y ago
      Different, yes, but I guess we have different definitions of "hugely different". I thought your question was, "Would incorporation in Malta preclude an acquisition later?" And I can't see, if it is EU, how it would preclude one. OpenStarts is many things. It's a Crunchbase listing of startups worldwide, but also a listing of ideas, a place where co-founders can meet and more. We'll play down the investment connection to whatever level is necessary, upon launch. It seems to me that if I incorporated in the same way and got listed in Crunchbase, then I don't see how that could be construed as promotion of a subscription. These are great questions and I'm still investigating the answers. For example, can we show the public information of the trades of these public companies? It seems like that would be a no-brainer, but it's not. Would you be willing to be an advisor for occasional questions? Your background is a great match.
revorad 15y ago
You need a back button too. I skipped a few slides quickly and now have to reload to go back :-)
revorad 15y ago
Did you see this? - http://www.whitehouse.gov/blog/2011/09/08/president-s-american-jobs-act-fueling-innovation-and-entrepreneurship http://www.whitehouse.gov/blog/2011/09/08/president-s-americ... What do you think?
nurik 15y ago
As paradox as it sounds: I think you have a really great idea here but you would need to go the US or have a least a co-founder in the US to get it started with the right traction. You said it yourself: funding in the US was 16bn USD. Its also a matter of the marketsize: the European markets are still too tiny.

5 points by david927 15y ago

david927 15y ago

Clickable link: http://www.openstarts.com http://www.openstarts.com

Egregore 15y ago

I'm not sure, but I think I've read that something like this is illegal in US (only rich people can invest in such things) it also can be illegal in other countries, have you investigated this?

david927 15y ago
That's the point If you read the deck again, you'll see that what you're saying about rich people (meaning 'accredited investors') is true for private companies. You can invest in Amazon but not Facebook; you can buy shares of Google but not Twitter. And that's what is being solved here! What OpenStarts does is to assist in the creation of "public but not listed" companies in the EU -- perfectly legal -- and then offers a directory where you can find them and potentially buy shares (subtly, but legally, eliminating the problem of listing).

ig1 15y ago

What are the implications of founding a company in Malta ? -are you bound by their tax regime, legal system, how does the corporate structure effect acquisition potential. Also I'm guessing you'll only be able to take investment locally, you won't be allowed to promote the opportunity in countries which have minimum investor requirements (like the UK and the US) so that'll probably substantially decrease your pool of investors.

david927 15y ago
Yes, you are bound by Maltese taxes and its legal system. It's EU, though, so it's not that different than the UK or Germany, for example. Companies can't promote the opportunity -- and that's a key point covered in the slides. OpenStarts, like Crunchbase, lists all sorts of companies but for those that are Malta public LLC's, you can inquire and solicit a prospectus. So the user is asking the company; the company never promotes. Investment may be made by anyone, regardless of nationality. If they can invest in SAP, for example, they can also invest there.
- ig1 15y ago
  Germany and the UK have hugely different tax and legal systems, many startups from across Europe incorporate in London due to the fact that London is much more business friendly. Won't OpenStarts itself be counted as a form of promotion ? - most hedge fund websites block people from outside their home country so they don't get prosecuted for offering an investment opportunity in countries where they're not licensed. Your building this directory for the sole purpose of helping companies get funded, that's probably enough for you to be classified as a financial promotion.
  - david927 15y ago
    Different, yes, but I guess we have different definitions of "hugely different". I thought your question was, "Would incorporation in Malta preclude an acquisition later?" And I can't see, if it is EU, how it would preclude one. OpenStarts is many things. It's a Crunchbase listing of startups worldwide, but also a listing of ideas, a place where co-founders can meet and more. We'll play down the investment connection to whatever level is necessary, upon launch. It seems to me that if I incorporated in the same way and got listed in Crunchbase, then I don't see how that could be construed as promotion of a subscription. These are great questions and I'm still investigating the answers. For example, can we show the public information of the trades of these public companies? It seems like that would be a no-brainer, but it's not. Would you be willing to be an advisor for occasional questions? Your background is a great match.

revorad 15y ago

You need a back button too. I skipped a few slides quickly and now have to reload to go back :-)

revorad 15y ago

Did you see this? - http://www.whitehouse.gov/blog/2011/09/08/president-s-american-jobs-act-fueling-innovation-and-entrepreneurship http://www.whitehouse.gov/blog/2011/09/08/president-s-americ... What do you think?

nurik 15y ago

As paradox as it sounds: I think you have a really great idea here but you would need to go the US or have a least a co-founder in the US to get it started with the right traction. You said it yourself: funding in the US was 16bn USD. Its also a matter of the marketsize: the European markets are still too tiny.