SBA loans – get ready for a bumpy ride

The $350 billion allocated by recent stimulus legislation for small business lending is welcome news for startups and entrepreneurs. Tomorrow, April 3, is the first day that Small Business Administration lenders will be taking applications, and a flood of them is expected. The process, however, seems destined to be somewhat chaotic. Detailed rules to flesh out the process, both for borrowers and banks, have not been issued. No doubt, governmental and bank employees are working long hours to set up a workable system, but be prepared for a bumpy ride – and put your application in early.

goodcounsel has set up a number of pages on its website dedicated to explaining the provisions of recent emergency legislation, including SBA loan programs. The main resource page is here. We hope it is useful to you.

Categorised as: Covid 19 issues

Everyone (in and out of tech) should be listening to Kara Swisher

There’s so much great content being created today. It’s virtually impossible to keep up with the high quality “television” shows being broadcast and streamed. (Still, do yourself a favor and watch Orange is the New Black and Chernobyl at minimum.)

It’s pretty much the same with podcasts. Fortunately, I have a reasonable amount of commuting, dog-walking, and dish-washing time to pop the earbuds in and listen. Ezra Klein of Vox is so sharp and interesting and I have developed a genuine soft spot for the NY Times journalists on The Argument. However, the podcast that I feel is fantastic and indispensable, certainly for anyone with professional or personal interests in tech, is Recode | Decode with Kara Swisher.

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Categorised as: Current events, News and Views

The surveillance state has arrived

I have been interested in computers and technology since junior high school, when my school acquired its first computer – a lonely RadioShack TRS-80, housed up in the library. Because I was a strong math student, I was selected as one of two kids from each class to visit with the computer a couple of times a week to learn how to program in BASIC. From that point forward, I was enchanted.

In those days (we are talking about the early 1980s now) and for the two decades that followed, the power and sophistication of technology grew exponentially, accompanied by optimism about the promise of offering amazing services and solving big problems. Sure, there were people of great foresight, who saw the darker implications just over the horizon of this rise in processing power and the increasing ubiquity of computer hardware. But these were lone voices in the wilderness, for the most part; I consider myself a critical person yet I certainly did not pay a whole lot of attention to these concerns.

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Categorised as: Surveillance and privacy

The risks of biometrics non-compliance

Most companies are aware of issues concerning how they use and handle “personally identifiable information” (PII) of their customers. In general, web-based businesses (which is to say, nearly all businesses) disclose their uses of PII with some specificity in their privacy policies and terms of use (goodcounsel is often called up to draft these for its clients). PII in the healthcare context is tightly regulated under the Health Insurance Portability and Accountability Act, and the use of PII more generally by the Internet giants has come under increased scrutiny in the last two years.

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Categorised as: Biometrics non-compliance, Legal Issues

Making board meetings work for you

Many startup founders don’t really have to sweat board of directors meetings all that much; typically, at the earliest stages, the founders are the only people on the company’s board. If the board meets at all, it’s a “family affair” or otherwise, official actions are handled by written consents outside of meetings. However, once you have outsiders on the board – and especially, outside institutional investors like VCs – there is more pressure to perform.

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Categorised as: Startup Stuff

Websites as places of public accommodation

Clients frequently ask goodcounsel to draft online Terms of Use and Privacy Policies. What they often fail to consider is whether the Americans with Disabilities Act applies to their websites and mobile apps. Yes, you read that correctly: the Americans with Disabilities Act. Whether the ADA applies depends on the state(s) the company operates in, the kind of goods or services the company offers, and how and to whom the company provides such goods or services.

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Categorised as: ADA Compliance, Legal Issues

Can WeWork survive? Should it?

It’s striking to me how the media hypes certain companies to ridiculous heights with fawning, uncritical coverage, only to join in the feeding frenzy of negativity when the same companies inevitably encounter problems. In that respect, I suppose, the media plays a central role in the tech-era bubbles that we’ve lived through over the past two decades.

What else could be prompting this observation right now than the story of WeWork? This story hits home for us at goodcounsel, literally, since we work at WeWork.

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Categorised as: Company culture, Current events, Entrepreneurship

Tech veteran Tim O’Reilly criticizes “blitzscaling”

I wanted to share a link to this fantastic article written by veteran technology entrepreneur and thinker Tim O’Reilly on Quartz called “Blitzscaling: The fundamental problem with Silicon Valley’s favorite growth strategy.”

The piece insightfully reviews and critiques LinkedIn founder Reid Hoffman’s new book of the same name. More than that, it takes the reader on a fascinating journey through the history of technology entrepreneurship and investing, going back to Microsoft in the 1980s. O’Reilly convincingly argues that the winner-take-all approach to technology investing is neither the only model nor necessarily a sustainable one, from the perspective both of a particular business and of our society as a whole.

Whether you are an entrepreneur, an investor, or simply a citizen who is interested in understanding the growth of technology companies that profoundly shape our world, I advise you to spend some time reading and thinking about this article.

In my next post, I will describe the alternative to blitzscaling that O’Reilly lays out – “sustainable scaling” – and explore the alternative forms of financing that sustainable models require.

Update 11/19/19: Wired magazine columnist criticizes Softbank’s chief Masayoshi Son as “blitzscaling’s enabler-in-chief” in light of the WeWork collapse.

Categorised as: Entrepreneurship, Startup Stuff