At the exact moment a company is spoken into being, it’s equity is worth almost nothing. For various reasons, professional investors will not allow the founders to own it outright at a cost basis of nothing. They will want that ownership to vest over time.
INVESTMENT
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83(b) Election Tax Trap for Startup Founders Explained
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“Can you walk through, for a non-specialist, how failure to have an 83(b) election bankrupts founders?” You have to pay taxes on all income earned in a year, right? Equity compensation is a form of income, right? That sets the stage for the time bomb.
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Stripe Atlas Legal Updates Impact Startup Documentation Standards
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(Here that is Stripe Atlas but presumably YC’s lawyers, early stage VC firms, etc will all update their standard packets to take advantage of this.)
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83(b) Elections: The Hidden Tax Trap for Startup Founders
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83(b) elections have been a long-time landmine for startup founders, generally underdiscussed because of social considerations. You don’t want to say “Hiya, I’m the sophisticated CEO of a high-flying company. Also, oops, bankrupted myself for want postage stamp six years ago.”
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Coinbase Selects Ireland as EU MiCA Hub for Crypto Services
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Exclusive: Coinbase has chosen Ireland is its main "MiCA" hub in the EU. The crypto exchange applied for a MiCA license with the Irish central bank. This would allow it to offer services throughout the EU under one international supervisor. More here:
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ICOs as Iterated Improvement: Securities Risk and Regulatory Evolution
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Yes; the right way to think of them is an interated improvement on ICOs with less securities regulatory risk. ICOs made promoters a huge amount of money and little was clawed back; iterations were inevitable unless aggressively policed.
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BAIR Alumni Recognized as Packard Fellows for Science
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Congatulations to BAIR alumni @junyanz89 and @LerrelPinto on being recognized as Packard Fellows for the class of 2023! @UCBerkeley @Berkeley_EECS https://
packard.org/insights/news/
packard-fellowships-for-science-and-engineering-announces-2023-class-of-fellows/
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SAS Wins AI in Banking Award Chartis RiskTech100
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Look who's climbing up the Chartis RiskTech100! Seven risk technology awards complement SAS' #2 overall ranking, including a win in the newly debuted AI in Banking category.
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Warren Buffett’s Legal Strategy Against Settlement Pressure
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"You should pay us money!"
"No?"
"But we have lawyers and can make this annoying and costly for years. Just settle."
Warren Buffett's lawyer: "I did not get a job in insurance law because I am easily bored into submission."
Warren Buffett: "Try outspending me in court, bro." -
ASML Reset Signals Growth Recovery for AI Hardware Sector
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This is the ‘reset’ ASML needed, say bulls Merrill Lynch’s Didier Scemama was among those cheering a “reset” for ASML, a report so bad, it confronted all the worst fears. Now, he argues, investors can look forward to higher growth for ASML’s revenue in 2025, when things bounce