The required business transitions enable company founders to navigate the opportunities and challenges that come with change, often fostering continued innovation and success in an ever-evolving marketplace. This includes when to exit from the business.

The necessary factors have recently been considered by business exit strategist Jerome Myers. He sheds light on eight prototypical phases, along with tactical guidance, to help founders perform at their best during what can be a vexing process.

By understanding these archetypal phases and employing these crucial navigational strategies, Myers says that founders can increase their chances of not only surviving but thriving in the ever-evolving business landscape.

According to Myers: “Whether you are leaving corporate America to start on your own enterprise or leaving a company you’ve built from scratch to focus on the next part of your impact journey, many face the same challenges. While the circumstances of each person’s exit differs, most if not all can be summed up in a few specific exit scenarios that every founder in today’s economy faces.”

Understanding the quintessential exit archetypes can prove critical in helping the founder perform at his or her best, according to Myers. His assessment of the primary eight is:

Exit 1: Exiting The Traditional Career Path

Myers says: “The first phase of this transformative transition is leaving a traditional corporate role or life path. This step involves wrestling with questions of purpose and ambition, and requires introspection and careful planning. The robust U.S. economic growth, represented by a 2.4% annualized rate GDP growth in the first half of 2023, provides a favorable tailwind for individuals making this transition. This stage probably will feel like the biggest transition for those doing it. It’s where all that you once knew is gone and everything feels foreign and new.) this should not be something that you run away from rather embrace. Given the stats above, right now might be the best time to take this leap.”

Exit 2: CEO 1.0 (Chief Everything Officer)

Myers finds: “In the next phase, founders embody the role of ‘CEO 1.0’ or the ‘Chief Everything Officer’. They are at the helm of their venture, crafting business plans, securing initial funding, and birthing their entrepreneurial dream. The thriving economic conditions, marked by increased consumer and government spending, and a rise in business inventory investment, further fuel the growth potential at this stage. This is the beginning of your next journey. The start of what you hope to accomplish. It is here where you visualize your dreams and begin to make them a reality. It’s time to embrace the unknown and make it seen.”

Exit 3: Product Manager/Thought Leader

Myers considers: “Founders then transition into a dual role of ‘Product Manager/Thought Leader’, intertwining strategic product management and thought leadership. They refine their business’s value proposition and engage with customers while sharing unique insights and ideas publicly. This role, critical in a growth-oriented economy, helps shape public opinion and add credibility to their venture. This is when your company begins being in the public eye, which leads to scale and widened adoption of the company’s solution.”

Exit 4: CEO 2.0 (Chief Executive Officer)

In terms of the leader, Myers notes: “Upon establishing their business, founders assume the ‘CEO 2.0’ role, overseeing the bigger picture, managing the team, and setting strategic directions. The presence of a solid jobs market, as evidenced by the addition of 209,000 jobs in June 2023, aids in attracting talent and scaling operations during this phase.”

Exit 5: Board Chair

From the view of the very top, Myers considers: “As ‘Board Chair’, founders step back from daily operations to guide the company’s strategic direction, ensure its financial health, and focus on stakeholder relationships. The rise in personal savings recorded in the second quarter provides financial flexibility for strategic growth and succession planning.”

Exit 6: Exit

For disposal of the firm, Myers advises: “The ‘Exit’ phase involves founders selling their business or stepping down from their operational role. In the current economic environment, with recession fears diminishing due to falling inflation and a robust jobs market, this phase can offer potentially significant financial returns.”

Exit 7: Building Your Post Exit Portfolio

On the question of what’s next, Myers explains: “Post-exit, founders diversify their wealth by building an investment portfolio in the ‘Building Your Post Exit Portfolio’ phase. The recent interest rate hike by the Federal Reserve, aiming to curb inflation, provides a favourable environment for investment in real estate, stocks, bonds, or other startups.”

Exit 8: Philanthropy and Legacy

At the end of the process, Myers explains: “The final phase, ‘Philanthropy and Legacy’, provides founders the opportunity to leave a lasting impact by contributing to causes they deeply care about. Despite the ongoing economic recovery, the role of philanthropy remains crucial, offering founders the chance to leverage their wealth for societal betterment.”

The post Letting go: Eight exit archetypes for the company founder appeared first on Digital Journal.

Estonia-based content marketing platform PRNEWS.IO, founded in 2018, is a game changer for brands looking for an easier way to get broad media coverage. Through the online platform, companies are sharing their content with a wider, new audience around the world, capitalizing on their brand without incurring the significant costs of expensive PR agencies.

The founder of the startup is ambitious enough to turn PRNEWS.IO into a unicorn company, but unlike Silicon Valley firms, he prefers a balanced growth path.

The Booming Growth Prospects of the PR Industry

According to Statista, a global data and business intelligence platform, the PR industry had a market value of $97.13 billion in 2021 and is projected to reach a staggering $129.35 billion by 2025. A study led by Nielsen, an audience measurement, data and analytics firm, indicates that the top priority for global marketers continues to be growing brand awareness and attracting new customers.

This requires more planning and strategy than when media choices were much more limited. These statistics both impress and scare marketers, simply because every new dollar spent on PR results in an increase in the price that communications agencies will demand for their services.

Enhancing Brand Visibility and Customer Engagement

PRNEWS.IO, in fact, offers an alternative to expensive public relations. At its core is a marketplace of more than 100,000 media outlets from around the world. Enriched with big data on audiences, traffic sources, and other parameters that characterize the quality of publications, the platform provides clients with amazing value in predictable communications on transparent terms.

According to Steffi Teowira, head of content at travel search engine Wego, her company didn’t want to miss the opportunity to reach a wider audience. By taking advantage of the PRNEWS.IO platform, Wego was able to simplify and expedite the content distribution process, by guaranteeing placement in various online publications worldwide.

As the economy globalizes, competition among brands for people’s attention intensifies. Regular media mentions help with recognition and reinforce social proof. They also drive traffic and fuel the interest of potential customers, guiding them along the marketing funnel toward a purchase decision.

Empowering Small and Midsize Companies

Typical small to midsize companies within the US have been struggling for years with their PR campaigns, both in terms of budget and effectiveness. Getting featured in the right media publications at an affordable price is the ultimate goal for most. Unfortunately, not having the enormous PR budgets that many large-cap companies do makes it virtually impossible to maintain an in-house PR department and very challenging to achieve the desired results with a fixed budget. 

PRNEWS.IO is still a relatively young company, and with time, it will continue to expand its capabilities beyond what it offers today. However, by keeping its main focus on providing powerful marketing and PR tools for customers with various budget levels, the company’s momentum will only grow stronger from here. As the demand for PR increases, PRNEWS.IO has what it takes to be a game-changer in the industry, both now and in the future.

The post PRNEWS.IO turns the power of media mentions into a multimillion-dollar business appeared first on Digital Journal.

Many of the answers are apparent in a recent study conducted by Merger & Acquisition Advisor, webacquisition.com. This review found that California is the premier state in the U.S. for tech startups, scoring an 88 out of 100 on a specially developed scale.

At the other end of the spectrum, Mississippi is ranked as the least conducive state for tech startups, scoring just 35.

This conclusion was drawn based on various parameters, including the number of Bachelor’s in Science & Engineering (S&E) degrees among 18-24 year-olds, the percentage of S&E occupants in the workforce, the number of venture capital deals in technology and knowledge sectors, venture capital investments relative to GDP, average business applications over the past 5 years, the business survival rate, tax rates, average weekly wages, and the Quality of Life (QOL) index in each state.

To derive at the outcome there was an evaluation of all 50 states in the U.S. using these distinct criteria, assigning a score out of 100 for each criterion. These individual scores were then combined and weighted to generate a final score out of 100.

The data for this was sourced from the Tax Foundation, the Bureau of Labor Statistics, the National Center for Science and Engineering Statistics, and the United States Census Bureau.

Outcomes

In terms of the outcomes, California takes the top spot with its thriving S&E workforce, with 26.94 bachelor’s degrees in S&E per 1000 18 – 24-year-olds and 5.90 percent S&E occupants in the workforce. It boasts a significant venture capital investment in tech (0.40% of GDP) and impressive business applications (437,447) with a high survival rate of 55.20 percent..

Despite a higher tax rate of 8.80 percent, the state offers an average weekly wage of $1,658.50 and a high quality of life index of 137.6, securing its top position with a final score of 88.

New York ranks second with strong representation in S&E education and workforce (31.05 bachelor’s degrees in S&E per 1000 18-24-year-olds and 4.40 percent S&E occupants in the workforce). The state sees a higher percentage of venture capital deals in tech (0.50 percent of GDP). It has a substantial number of business applications (264,837) with a survival rate of 53.90 percent.

The state’s lower tax rate of 6.50 percent and an average weekly wage of $1,756.50 contribute to a quality of life index of 134.5, resulting in a final score of 76.13.

Massachusetts ranks third with 38.16 bachelor’s degrees in S&E per 1000 18-24 year-olds and 7.10 percent S&E occupants in the workforce. It has a reasonable venture capital investment in tech (0.40% of GDP). It sees many business applications (65,308) with a survival rate of 55.00%. With an 8.00 percent tax rate and an average weekly wage of $1,757.00, the state offers a high quality of life index of 149.7, resulting in a final score of 74.8.

Florida secures the fourth spot with a relatively lower percentage of S&E graduates (20.57 bachelor’s degrees in S&E per 1000 18-24-year-olds) and 3.60 percent S&E occupants in the workforce. It has a limited venture capital investment in tech (0.10 percent of GDP). Still, it makes up for it with many business applications (507,669) and a reasonable survival rate of 50.20 percent.

With a lower tax rate of 5.50 percent and an average weekly wage of $1,203.50, the state has a quality of life index of 102.8, resulting in a final score of 73.55.

Texas ranks fifth, with 16.3 bachelor’s degrees in S&E per 1000 18-24-year-olds and 4.90 percent S&E occupants in the workforce. The state’s venture capital investment in tech is relatively low (0.10% of GDP), but it sees a considerable number of business applications (392,189) with a survival rate of 51.50 percent.

With a General Revenue Tax and an average weekly wage of $1,338.75, the state has a quality of life index of 92.5, resulting in a final score of 68.28.

In contrast, Mississippi ranks last, Mississippi has only 15.7 bachelor’s degrees in S&E per 1000 18-24-year-olds and a 2.50 percent S&E workforce. It also lacks in tech venture capital investment. The average weekly wage is $882.50, with a business survival rate of 39.50 percent, culminating in a final score of 35. This is followed by Kansas in 49^th and Nevada in 48^th position.

The post Revealed: Top states for business start-ups in the US appeared first on Digital Journal.

This conclusion was drawn based on various parameters. These included: the number of Bachelor’s in Science & Engineering (S&E) degrees among 18-24 year-olds, the percentage of S&E occupants in the workforce, the number of venture capital deals in technology and knowledge sectors, venture capital investments relative to GDP, average business applications over the past 5 years, the business survival rate, tax rates, average weekly wages, and the Quality of Life (QOL) index in each state.

The data outcome was, for the top five states:

California

California takes the top spot, with 26.94 bachelor’s degrees in S&E per 1000 18 – 24-year-olds and 5.90 percent S&E occupants in the workforce. It boasts a significant venture capital investment in tech (0.40 percent of GDP) and impressive business applications (437,447) with a high survival rate of 55.20 percent.

Despite a higher tax rate of 8.80 percent, the state offers a comfortable average weekly wage of $1,658.50 and a high quality of life index of 137.6, securing its top position with a final score of 88.

New York

New York ranks second with strong representation in S&E education and workforce (31.05 bachelor’s degrees in S&E per 1000 18-24-year-olds and 4.40 percent S&E occupants in the workforce). The state sees a higher percentage of venture capital deals in tech (0.50% of GDP). It has a substantial number of business applications (264,837) with a survival rate of 53.90 percent.

The state’s lower tax rate of 6.50 percent and an average weekly wage of $1,756.50 contribute to a quality of life index of 134.5, resulting in a final score of 76.13.

Massachusetts

Massachusetts, ranks third with 38.16 bachelor’s degrees in S&E per 1000 18-24 year-olds and 7.10 percent S&E occupants in the workforce. It has a reasonable venture capital investment in tech (0.40% of GDP). It sees many business applications (65,308) with a survival rate of 55.00%. With an 8.00% tax rate and an average weekly wage of $1,757.00, the state offers a high quality of life index of 149.7, resulting in a final score of 74.8.

Florida

Florida, secures the fourth spot with a relatively lower percentage of S&E graduates (20.57 bachelor’s degrees in S&E per 1000 18-24-year-olds) and 3.60 percent S&E occupants in the workforce.

Texas

Texas ranks fifth, with 16.3 bachelor’s degrees in S&E per 1000 18-24-year-olds and 4.90 percent S&E occupants in the workforce. The state’s venture capital investment in tech is relatively low (0.10% of GDP), but it sees a considerable number of business applications (392,189) with a survival rate of 51.50 percent.

With a General Revenue Tax and an average weekly wage of $1,338.75, the state has a quality of life index of 92.5, resulting in a final score of 68.28.

Mushfiqur Sarker, Co-founder and Merger and Acquisition Advisor has told Digital Journal: “The top ten states for tech startups in the USA prioritize education and Science and Engineering (S&E) skills. They attract a lot of venture capital for tech and create a supportive startup environment. These states see many business applications and startups that survive, proving their tech ecosystems are thriving.”

The post State of technology: Best places in the US for a startup appeared first on Digital Journal.

Forte is a platform for live, online music lessons backed by some big names in the tech world, including Ben Ling’s Bling Capital, Max and Nellie Levchin’s SciFi VC, and BDMI, the venture capital arm of media giant Bertelsmann.  We meet with Hunter McGranahan, Chief Product Officer of Forte, to discuss their disruptive technology.

Hunter McGranahan, Forte’s charismatic thirty-year-old CPO, has a strong tech pedigree. He launched the first of its kind VR department at Creative Artists Agency. Then, at start-up Magic Leap, he pioneered a radical new technology for music education using augmented reality.

He is now applying those skills to pioneer Forte’s technology, shaking up the world of music teaching today.

Let’s begin with some basics here. When a client signs up to Forte, are they getting hardware?

No, Forte is a way for students to find great music teachers and then take lessons with them on our video-calling software platform. 

There may be some elements of hardware we would recommend such as headphones, but the platform can run effectively with the microphone and speakers already built-in to their computer. These have progressed enormously in the last few years in terms of quality. There is no need for extra hardware.

What we have done is significantly upgrade the quality of the audio that is delivered through that existing hardware.

Why?

All existing video conferencing platforms are orientated around the spoken human voice only. So they’re tweaked to suppress background noise and only capture dialogue from the person speaking. They work best when each person in a conversation waits until the other has finished. It’s hard to speak at the same time or offer verbal cues while someone is speaking, which is one of the main factors behind ‘Zoom fatigue.’

As such they may be ideal for a business presentation, but they have significant drawbacks when it comes to music instruction. To create the audio necessary for that, we had to go under the hood and tweak all of the possible knobs. 

How exactly have you done that?

When it comes to high performance audio, there are different aspects we can optimize. We paid close attention not just to the amount of audio data we deliver from user to user, but also the quality of that data – the nuance of the sound. 

We have worked closely with the best music teachers in the industry to create an audio system that can detect every slight nuance they need when teaching an instrument. This began in February 2021, with teachers from the Curtis Institute giving lessons to students on the other side of the country. We learned an awful lot from this first real-world exercise and were able to create a pilot version. Then in the summer of 2021 we moved on to a second pilot where over a period of six weeks we worked with teachers from the Royal College of Music in London teaching pupils on the other side of the world. What we learned from that pilot enabled us to launch a second, enhanced, version.

We call the resulting proprietary technology ‘Forte Pure Audio.’ It allows the most human and expressive aspects of music making, like tone color, dynamics, and articulation, to be fully audible to teachers and students alike. 

Forte replicates a live music lesson but brings some other visual advantages which relate to video conferencing.

What are the visual advantages?

An important advantage is that we have made it super easy to use a mobile phone as a second simultaneous camera. This might mean, as well as the main interaction between teacher and pupil, each show close-ups of how their hands are moving on the instrument. The teacher can show the pupil exact finger placement or how to use their feet. 

What are the other advantages from the pupil’s point of view?

We are opening up access to high quality music lessons on a global scale. Wherever you live, you can have access through Forte to the very best teachers in the world. We have exclusive partnerships with The Grammys, the Royal College of Music, and the Aspen Music Festival and School.  All three have verified teachers on Forte.

Essentially, we have created a sophisticated matching platform that enables a real time marketplace for music instruction. 

From the pupil’s or parent’s point of view, rather than scrolling through hundreds of teachers where it is impossible to differentiate between one and another, we have created a service that ensures the customer can get exactly the kind of teacher they want. Forte enables pupils and teachers to be categorised in six different ways. Instrument, age, skill level, ability to read music, aspiration, and genre of music.

We also offer the ability to record a lesson which gives parents peace of mind and a way to be more engaged in their child’s learning.

And for the teachers?

Teachers can set up their own studio online, indicating exactly what they are able to offer, when they want to teach, and what kind of students they want.

The very effective payment system which we have created is also a clear attraction. The system automatically charges their credit card when a lesson happens. There is no need for teachers to be constantly chasing up unpaid lesson fees. Teachers customize their own cancellation policy which again is automatically handled by the platform.

How do you anticipate the technology evolving in the future?

Forte will offer users a one-stop shop for everything they need to learn an instrument, like instrument rental or buying sheet music. There are also opportunities to have more peer-to-peer learning, recitals, practice enhancement tools, and asynchronous learning experiences.

Our core belief is that anyone can learn to play a musical instrument if they believe in themselves. They just need access to more great teachers, help choosing one who will be a great fit, and a better way to connect with that teacher for the lessons.  We are enabling all three on a global scale.

The old model – only choosing from music teachers who happen to live nearby, whether they are a good fit for you or not – is outdated and doesn’t serve families well.  We want to radically improve how families around the world find and connect with music teachers. 

The post Meet the tech founder tackling the global music education market appeared first on Digital Journal.

An LLC is a business form applicable to the U.S., designed to protects the owner from personal responsibility for any business debts or liabilities. Most LLC’s are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.

The business advice provided to Digital Journal includes:

Choose A Unique Name for Your LLC

Choosing a suitable business name for your LLC is an essential first step in starting your business.  It is important to choose a name with no patent or not taken by other entities in the state where you plan to register.

Furthermore, it is useful to choose a name that accurately reflects your business’s products or services, and that is easy to remember and pronounce. A verification should also be made as to whether the business name is prohibited by the law from being registered.

Choose the State for your LLC

The next step after selecting a name is to choose the state where you want to form your limited liability company. Based on the state you’ve chosen, the cost to start an LLC will be different.

Most businesses choose a state where they’re located, but there are some exceptions. For example, if a prospective businessperson is planning to do business in multiple states, they may look for a state with favourable tax laws and business regulations.

Each state’s requirements and procedure for forming an LLC are different, so it is recommended that people research the specific rules for their chosen state.

Interested parties will normally need to file Articles of Organization and pay a filing fee to register their LLC with the state. Some states may also require people to publish a notice of your LLC formation in a local newspaper.

Nominate a registered agent

Everyone looking to start an LLC must choose a registered agent. A registered agent is the representative of your company who is designated to handle legal and administrative documents on the LLC’s behalf. This includes important documents like tax forms and lawsuits.

The registered agent must have a physical address in the state where your LLC is formed and be available during regular business hours.

Get articles of organization for your LLC

For the LLC to become a legal business entity, there are some legal documents you must file with the state agency through your registered agent. One of those documents is called Articles of Organization, also known as a Certificate of Formation in different states.

Certificate of Formation (or Organization) is one of two documents filed with the SOS or other designated person for an LLC to become legal and recognized by law as a separate entity from its members and managers.

To file the Articles of Organization, the business is required to provide a filing fee and submit the document to the Secretary of State’s office in the state where the LLC is formed. The second document needed describes the company’s capital business structure and rights.

Create an LLC Operating Agreement

Operating agreements are documents that govern the operations and management of an LLC. Although not a basic requirement by law, it is highly recommended that LLCs create one.

These agreements contain operating rules for the LLC members or owners, capital contributions, and buy-sell arrangements, among other things.

Operating agreements also protect the LLC’s limited liability status, by demonstrating that your LLC is a separate legal entity from the small business owners.

The post Approaching a new business venture: Advice on the LLC development process appeared first on Digital Journal.

When asked about startups, one of the main things Vitalijus Majorovas, the successful co-founder of Pulsetto at Kilo Health, emphasizes is the importance of having a partner, as being a lone soldier in the field can be challenging. One reason for this is that investors tend to be more suspicious of startups with only one person behind them, making it preferable to start with at least one colleague.

Majorovas exemplifies this principle by having started with a team of two people. He has explained to Digital Journal the ideal scenario is to complement each other’s competencies.

Povilas Sabaliauskas, his colleague, serves as the engineer and technical expert, while Majorovas focuses on development, marketing, finance, and sleep science.

The science of sleep is the study of how and why we sleep, and what happens in our brains and bodies during sleep.

However, in the long run, Majorovas explains, a larger team becomes necessary, as accomplishing too much with just two people is challenging. Thus, it becomes crucial to gather a team of professionals, which may even be more critical than having the most original product idea out there.

Majorovas explains the development process: “Back then, there were only two of us. I worked on business development while my colleague Povilas worked on the product. Two people make a team, but the possibilities are limited. Additionally, there was a project similar to Pulsetto on the market, but it was complicated, expensive, and not user-friendly.”

Majorovas continues: “So, we had been working on the concept for a while and knew we needed more resources. Fortunately, I already knew the CEO of Kilo Health, Tadas Burgaila, so we pitched our idea to him. To be honest, the idea was so massive that we think Kilo Health didn’t initially believe it was possible. Still, we agreed to develop a prototype product within two months, and we did.”

This became the basis for expansion and growth: “That’s when the acceleration began, and the Kilo Health co-found program welcomed us to the team! Typically, it takes 2–3 years to develop a market-ready wearable device, but with Kilo Health’s bold approach and quick decision-making, we were able to produce a market-ready product within 6 months.”

The second part of this feature on startups looks at how a good idea is pointless without having an identified market. The third part looks at the value of experience and learning from past errors. Both feature comments from entrepreneurs who are aligned with Kilo Health (a digital health and wellness company).

The post Insights from thriving startups #1: Become the success among the failures appeared first on Digital Journal.

The data from the study revealed Reading has the lowest percentage of closures, with just 0.13 percent of businesses launched between Dec 17-Dec 2022 going into liquidation. Stoke-on-Trent, Plymouth, and Cardiff make the top five, with less than 1 percent of new businesses ceasing in the last five years.

The research used business intelligence software, Endole, to analyse how many businesses were incorporated in the UK’s largest 25 cities from December 2017 to December 2022 compared to the number that went into administration, liquidation, or were dissolved.

Alongside Reading, Stoke-on-Trent, Plymouth, and Cardiff are also home to some of the UK’s most thriving businesses and entrepreneurs.

The top ten shows:

In contrast, the 10 cities with the least successful new businesses are:

The data reveals Southampton is the city with the highest number of closures in comparison to openings between Dec 17 and Dec 2022, with 162 of these businesses ceasing trading.

Sheffield is next with 3 percent of closures, followed by Birmingham (2.04 percent) and Leeds (1.80 percent).

The City of London is also, surprisingly, amongst the areas with the least successful new businesses, seeing 1.38 percent of closures.

The post Reading below the line: The most successful new businesses opening in the UK by geography appeared first on Digital Journal.

The company, whose website says it is “the financial partner of the innovation economy,” was taken over Friday by the US Federal Deposit Insurance Corporation (FDIC) to prevent further damage.

“SVB knew the entrepreneurial community,” Joseph DeSimone, a professor at Stanford University and founder of several startups, told AFP.

“They helped us recruit people, helped with securing mortgages for transplants, gave financial advice to new executives… So their disappearance is a real loss,” he said.

The company previously boasted that “nearly half” of technology and life science companies that had US funding banked with them, leading many to worry about the possible ripple effects of its collapse.

For banks that are FDIC-insured, only $250,000 per account is guaranteed.

But according to SVB’s latest annual report, 96 percent of its total $173 billion in deposits was uninsured.

The FDIC said Friday that all accounts would quickly get access to the insured portions of their deposits, but that the rest would depend on how much is recovered from sales of the bank’s assets, an often lengthy process.

“The real victims of the SVB fallout are the depositors: startups with 10 to 100 employees, who cannot make payroll, and will have to furlough or shutdown workers as soon as Monday,” tweeted Garry Tan, head of the well-known incubator Y Combinator.

He warned that “years of US innovation” are on the line, as an entire “generation of American startups” could be destroyed in a month or two.

– ‘Doesn’t look good’ –

Activist investor Bill Ackman raised a similar alarm on Twitter, saying that SVB’s collapse “could destroy an important long-term driver of the economy.”

“If private capital can’t provide a solution, a highly dilutive gov’t (government) preferred bailout should be considered.”

According to several US media reports, SVB had discussed on Thursday and Friday a possible buyout with several banks, but could not find a solution quickly enough.

Champ Bennett, cofounder of the video platform Capsule, revealed on Friday that the $5 million raised in mid-February during the company’s first seed funding round was housed at SVB and now inaccessible.

“What happens next is anyone’s guess, but it doesn’t look good,” he tweeted.

Bennett added that an intervention should not be viewed as “bailing out ‘The 1’ or ‘Big Tech’,” pointing to the “thousands of the most hardworking, talented individuals” at impacted companies who are currently “struggling.”

According to the news website Semafor, hedge funds are offering to front cash to SVB’s corporate clients, but at a 20 to 40 percent discount.

Beyond that, Adam Arrigo, boss of virtual gig platform Wave, warned his fellow tech entrepreneurs: “Whether or not you had money in SVB, you are not unaffected. This is going to materially impact everyone.”

Like others, Bennett says he is also concerned about the fate of other banks favored by the tech industry, including California’s First Republic, whose stock price fell 30 percent in two days.

Some see in the back-to-back failure of two banks, SVB and Silvergate Bank, an example of the financial system’s precariousness.

“What happened to everyone talking about how banks (SVB, Silvergate) are safe and better than Crypto DEFI?” tweeted US investor Arjun Sethi.

DeFi, or decentralized finance, allows users to theoretically access their funds at any time and without intermediary, but comes without deposit protections or regulations.

The post Worry for tech startups after Silicon Valley Bank failure appeared first on Digital Journal.

In the U.S., from renting premises and workspaces to paying corporate income taxes, the cost of starting a business can vary greatly from state to state. To help entrepreneurs make an informed decision on where is best to launch their startups, the team at Switch on Business have analyzed numerous metrics to compile their study into the most and least cost-efficient states to start a business in 2023. The information has been presented to Digital Journal for review.

South Dakota revealed as the most cost effective state to start a business in 2023

South Dakota ranks number one overall as the cheapest state to launch a startup. It is one of the six U.S. states that does not impose a corporate income tax. On the downside, the state has the lowest living wage in the country at $14.85 per hour. While entrepreneurs can make savings on labor expenses, workers will be less impressed.

Business owners also find affordable workspaces in South Dakota with the average rent for a serviced office being just $249.00, and it costs just $150 to register an LLC.

Mississippi follows closely in second place. Switch On Business’s study found that a fully serviced office space here costs around $96.50 per month on average, and filing an LLC costs just $52 (almost a third of what it costs in South Dakota). However, unlike South Dakota’s absence of a corporate tax rate, Mississippi’s corporate tax rate stands at 4.5 percent. Arkansas earns third place with the cheapest LLC filing fee in all of America, at $45.

In contrast, these are the bottom 5 least cost effective states to launch a startup:

The research also finds that Massachusetts is the least cost effective state to start a business. For example, filing an LLC is more expensive in Massachusetts than in any other state with costs totalling $520.

In terms of the most successful sector, agriculture, forestry, fishing, and hunting businesses have the highest survival rate. With these economic areas, 76.4 percent of businesses in this sector survive their first three years. Another industry for success is healthcare. The data finds that 94 percent of health care and social assistance startups established in 2019 are still in business.

New York ranks second from the bottom; renting an office in New York is more expensive than in any other state with the monthly rent for a serviced office space averaging $1,466 per month. Entrepreneurs will also need to pay their employees more due to the high living wage ($21.99 per hour) and businesses are taxed at a rate of 6.88 percent.

At the other end of the scale, businesses that carry a greater environmental impact – those in the mining, quarrying, and oil and gas extraction industry  – have the least likely chance of long-term success. More than half (55.9 percent) of the startups launched in 2019 within this field have stopped trading.

The post Study: Most cost-efficient areas in the U.S. to set up a business appeared first on Digital Journal.