Most US companies are gusteres in Delaware because it has the most favourable laws for businesses AND “has a separate Court of Chancery to hear cases involving corporate law”
No corp taxes either
Jamaica is nothing like the USA.
I can register in a different state and do business across each state with certain registrations and/or licenses. The USA is a union of individual states.
But that is just at the startup phase to keep over head low.
Mothballing has zero effect because you can revive the company in the future by just paying a fee for EACH YEAR it was inactive as well as an additional fee.
1 payment and it’s active
They get Preferred Shares.
They get their money back BEFORE Common Stockholders
In addition, the founders often sign a new agreement that has their stock VESTING over some period, often 4-5 years.
Yes, you no longer own all that equity
That’s standard practice.
It protects founding teams too
It makes our taxes simpler (she really really hates our precious tax returns because they were a bit complex).
One day I’ll reveal the name in an article.
But because they wanted “100% of your time needs to be focused on NOT losing 100% of our money”
Funny but true.
That’s how investors think
No side projects or side gigs.
Blackstone was founded the same way when Prudential backed Schwartzman/Peterson
Read “King of Capital”
In my case, I did.
They liked diversification and the fact that they were uncorrelated but synergistic and few required more capital.
They said that “one of them must work!”
Eduardo Saverin handled that for Mark Zuckerberg at the start. Sean Parker came in after.
That COO role is CRITICAL
It’s worth little without the right team.
It’s worth a bit more without the right timing.
Good idea (not ORIGINAL IDEA) + Good Team + Good Timing + Good Location + A little Luck = HUGE potential
Each of those matters
Ever heard of Excite, Infoseek, Yahoo, Altavista, AskJeeves?
Google also was not the first to do PPC.
Ever heard of Overture?
Google built a better mousetrap
Heard of Friendster? MySpace? Brno? Hi5?
Ecosystem matters - the ground you are going to be planted in
But you need the right legal system and tax policies
You especially need RISK CAPITAL that isn’t fixated on private equity-style Discount Cash Flow (DCF) analysis
That’s normal for American investors, especially angela.
It’s why Peter Thiel is a billionaire - Facebook
He bet on the JOCKEY not the horse.
He mentored Mark and sponsored him by opening doors.
That is what angel investors are supposed to do.
Take calculated risk, help the jockey, trust the jockey
Risk capital, sponsors, better legal systems for startups
We win or place in the top for the International Business Plan Competition.
No VCs are coming there.
If we do, we are gonna make the founders do Delaware
Depends on where the company plans to list or if it has no such plans.
The location matters more than entrepreneurs realize.
It’s not about growing where you are planted. It’s about planting yourself where you can grow
It’s different but we pitch too. We go had in hand to investors too.
Can’t wait to share my experiences and knowledge on @blackwalletorg