Early Growth Financial Services Welcomes New Tax Director

Originally published on PRWeb. San Francisco, CA (PRWEB) February 26, 2015 Early Growth Financial Services (EGFS), an accounting and financial services firm that specializes in providing a range of outsourced financial support to early-stage companies, announces the hiring of Andy Kapur to head its Tax Practice. Andy will direct tax efforts for the nine markets that EGFS currently operates in, bringing his 15 years of global tax experience to bear in working with EGFS’ 450+ clients. Kapur is a licensed CPA with over 15 years of financial experience serving publicly traded and private companies whose operations often span international tax jurisdictions. He has extensive experience advising clients and devising tax strategies, managing tax reporting and analyzing corporate tax structures. His domain expertise spans a number of industries including computer software, medical devices, and biotech. His specialities include preparing tax disclosures for SEC filings, implementing stock option plans, sales and use …
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Setting up Your Startup Accounting: What to Do When

When your business is in its early days, your main, and definitely most important, areas of focus are product development and customer acquisition. While it won’t be your primary focus, your startup accounting is equally important to get right, in order to build a strong foundation to help you reach your strategic goals. In a recent webinar, Sirk Roh covered what you should be thinking and doing in terms of setting up an accounting system both when you’re just starting up and after you’ve raised a round of funding. While you’re in pre-funding mode: Set up your accounting structure and financial and cash management. Then keep things as simple as possible for as long as possible (i.e., until you reach a pain point). But while you want to keep things simple, make sure you choose a low-cost system that will scale with your startup. Otherwise, you’ll spend a lot of …
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Securing Startup Financing for Tech Companies

This guest post was contributed by BJ Lackland, CEO of Lighter Capital. Recently Lighter Capital and VentureBeat teamed up to host a Fundraising Roundtable webinar examining fundraising options for tech companies. The webinar featured Lighter Capital’s CEO, BJ Lackland, Silicon Valley Bank’s Head of Early Stage Banking, Claire Lee, and Voyager Capital’s Managing Partner Erik Benson.   We compiled the top audience questions and answers: How is getting funding from VCs different from obtaining financing from other types of investors? How does it affect my long-term funding strategy? VCs seek to put large sums of cash in businesses that have a realistic possibility of gaining significant market share. If your company needs $20-$30 million and you anticipate needing two to three years to reach your market share goals, VC funding is pretty much your only option. This means giving up a large chunk of equity and potentially ceding a lot …
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Top Employment Risks: Startups And Employee Classifications

Sometimes I get the feeling that many startup founders view complying with employment law as a necessary evil; something that constrains them from running their businesses as they see fit. So they play fast and loose with regulations: ignoring them until they’ve made some inroads with their business model and started to get traction. Then they start thinking about formalizing things. Or worse, one day they look up and realize there’s a mess to clean up and they’re on the other side of a legal complaint. On our Protect Your Startup: Top Employment Risks webinar, Karen Reinhold, Shareholder at Hopkins & Carley and Glenn McCrae, Chief Strategy Officer for EGFS, discussed a number of mistakes that could come back to bite you if you don’t set things up properly from the beginning. Employment Risk 1: Independent Contractors Determining whether someone is an independent contractor or an employee boils down to …
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Will New Equity-based Crowdfunding Regulations Cool the UK Market?

This guest post was contributed by Richard Heap, Partner at Kingston Smith. New UK regulations for equity-based crowdfunding While the U.S. market waits for the Securities and Exchange Commission (SEC) to complete its rulemaking, new rules brought in by the UK’s Financial Conduct Authority (FCA) have divided the opinion of its peer-to-peer lenders and crowd-funding websites. While some feel the ‘crowd’ of possible business investors may wane, others consider the new measures do not offer backers enough protection. In light of banks’ increasingly frugal lending behaviour, crowdfunding has become a proven and feasible method for small companies to raise finance. It involves large numbers of people contributing small amounts over online platforms as equity investment or cash loans to support new business initiatives. The FCA’s new regulations were formulated to find a middle ground between accommodating the growth of finance ventures and protecting those investing in them. A key goal …
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Why You Can’t Afford A “Budget” Tax Professional

Startups are, almost by definition, cash-strapped. Given that, keeping a tight rein on expenses is in most cases a smart thing to do. But there’s one area where you don’t want to be overly stingy in allocating spending. Taxes. On the one hand, good tax help should not cost you a fortune. On the other, tax compliance is an area where cheaper is not necessarily better — or even equivalent. The axiom that you get what you pay for certainly holds true here. So why shouldn’t you choose the guy who offering the cheap flat fee versus the tax professional charging a larger sum? Below are 3 very good answers. 1. Corporate tax returns and compliance are more complicated. Because of their greater complexity — read more opportunities for costly missteps — corporate tax forms pose greater risk than individual returns do (and don’t forget that depending on how you’ve …
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Five Startup Pitch Deck Mistakes To Avoid

This guest post was contributed by Mike Viney, Founder of Deck Works. You already know a pitch deck is important to securing funding for your startup, but how do you avoid the common mistakes that can keep you from getting funded? When I started helping startups with their pitch decks, it used to take rounds of iteration and feedback to avoid these mistakes. Since then, not only have I figured out the most common mistakes entrepreneurs make when creating a pitch deck, but I’ve also figured out how to hook and capture the attention of potential investors by avoiding them. Here are the 5 pitch deck mistakes to avoid when you’re seeking funding for your startup: 1) Not telling a good story Telling a good story is a vital skill for every entrepreneur. It’s the most effective way to clearly convey your vision with passion and enthusiasm. Whether we like …
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Startup Fundraising: What Investors Want to See

The path to startup fundraising can be a long and arduous one. Our well-attended “Inside Startup Fundraising” breakfast panel in New York was meant to help make the process less daunting and give you some valuable tips to help you get ready.. Whether or not you’re in fundraising mode now, reading through this recap for the panel’s takeaways on timing your raise, funding strategy and vehicles, pitching, and some of the big mistakes entrepreneurs make should help give you more confidence when you do gear up for a raise. The panelists: Eliot Durban, General Partner at BOLDstart Ventures; Adam Rothenberg, Partner at BoxGroup; Brendan Dickinson, Principal at Canaan Partners; Devon Bostock, Venture Banker at Square 1 Bank; Cassandra Anderson, HR Consultant at TriNet; and EGFS Founder and CEO David Ehrenberg. The moderator: Jim Fulton, Partner at Cooley LLP. Panelists were divided on one of the earliest topics that came up: …
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SNAPCARD Case Study

Establishing Accounting Infrastructure for Bitcoin Payment Processor Introduction SNAPCARD founders Michael Dunwirth and Ioannis Giannaros saw a great opportunity for businesses to save money when using Bitcoin and other major cryptocurrencies for transactions. They launched their startup in late 2013 with the goal of offering secure transactions via a large-scale payment processor. San Francisco was the obvious choice for CEO Dunwirth and cofounder and COO Giannaros because of the close proximity of startup talent and potential customers.

Startup Financing: Overview of Preferred Stock

This post by Ian Engstrand first appeared on Founders Workbench. From time to time on Founders Workbench we give a brief primer on common terms and issues in venture financings. Today, we’re tackling participating versus non-participating preferred stock, a fundamental economic term in VC deals that goes to the heart of the business agreement between investors and management in connection with a sale of the company. Generally, upon the sale of a company, a holder of either participating or non-participating preferred stock is entitled to a preferential return (typically this is the amount of investor’s initial investment, often plus an accruing dividend), before any payment is made to the holders of common stock (i.e., management). Participating versus non-participating: what’s the difference? The difference between the two types of preferred stock is that participating preferred stock, after receipt of its preferential return, also shares with the common stock (on an as-converted …
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