Monday, September 8, 2014

Google Venture Workshop Video: The Science of Building a Scalable Sales Team

Google Ventures | Learn how Hubspot built out its sales team -- from their first hire to a team of over 200 employees. Learn how to recruit the right salespeople, provide consistent training, ramp up lead generation, and continuously improve your sales team. Mark Roberge is Chief Revenue Officer for Signals, HubSpot's freemium sales tool.



The MicroCapCompany.com Team

Sunday, August 24, 2014

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form S-1 REGISTRATION STATEMENT Under The Securities Act of 1933

If you are a CEO looking to take a company public, than you may have heard of The Securities and Exchange Commission's (S.E.C.) Form S1.

But what is it?  What does it do?  Why should you care? And how does it make you, as a filer of the Form S1, liable?  All these questions and more will be answered in a 3 part blog post here on MicroCapCompany.com

What is Form S1 and what does it do?

Form S1 in The United States' Securities and Exchange Commisions' "Registration Statement", it is an actual "Form" filled out by companies (or their attorneys) to legally register their shares (the company's stock) with the S.E.C. (The United State Securities and Exchange Commission).  This falls under the registration requirement of The Securities Act of 1933.  The S1 Form contains basic company information including The Exact Name of the Company, The State and Jurisdiction of Incorporation of the Company, IRS Empoyer ID (Tax ID number), Address-Name-Telephone of Executives of the Company (Company Address) and Address-Name-Telephone of the Agent of Service (Whom legal paper work or suit is filed against).It also includes the approximate date of the proposed sale of securities and The Primary Standard Industrial Classification Code.  The Standard Industrial Classification Codes indicate the company's type of business. These codes are also used in the Division of Corporation Finance as a basis for assigning review responsibility for the company's filings. For example, a company whose business was Metal Mining (SIC 1000) would have its filings reviewed by staffers in A/D Office 9.  Classifications of company codes can be found on the S.E.C. website CF SIC Code List.

In addition to the general company information listed above, the form makes a "filer" check off if; any of the securities being registered on the Form are to be offered on a delayed or continuous basis pursuant to Rule 415,  the Form is filed to register additional securities for an offering pursuant to Rule 462(b),  the Form is a post-effective amendment filed pursuant to Rule 462(c) or Rule 462(d), the registering company is a  “large accelerated filer,” “accelerated filer” and “smaller reporting company” as defined in Rule 12b-2 of the Exchange Act.

Please Note: After all those Rules, your head should be spinning, and rightfully so.  Most S1 registration statements are filed by attorneys, Investment Bankers, or boutique consulting firms with experience in filing documents with the S.E.C.  A novice should seek the assistance of a well vetted experienced individual whom can ascertain the requirements for the filing.

The terms Accelerated filer and large accelerated filer are defined by Rule 12b-2 of The Securities Exchange Act of 1934, in part it reads:

Accelerated filer and large accelerated filer. 
(1) The term "accelerated filer" means an issuer after it first meets the following conditions as of the end of its fiscal year:

  1. The issuer had an aggregate worldwide market value of the voting and non-voting common equity held by its non-affiliates of $75 million or more, but less than $700 million, as of the last business day of the issuer's most recently completed second fiscal quarter;
  2. The issuer has been subject to the requirements of section 13(a) or 15(d) of the Act for a period of at least twelve calendar months;
  3. The issuer has filed at least one annual report pursuant to section 13(a) or 15(d) of the Act; and
  4. The issuer is not eligible to use the requirements for smaller reporting companies in Part 229 of this chapter for its annual and quarterly reports.

(2) Large accelerated filer. The term large accelerated filer means an issuer after it first meets the following conditions as of the end of its fiscal year: 

  1. The issuer had an aggregate worldwide market value of the voting and non-voting common equity held by its non-affiliates of $700 million or more, as of the last business day of the issuer's most recently completed second fiscal quarter;
  2. The issuer has been subject to the requirements of section 13(a) or 15(d) of the Act for a period of at least twelve calendar months;
  3. The issuer has filed at least one annual report pursuant to section 13(a) or 15(d) of the Act; and
  4. The issuer is not eligible to use the requirements for smaller reporting companies in Part 229 of this chapter for its annual and quarterly reports

The term Smaller Reporting Company has been defined by S.E.C. releases and mandates.  The Securities and Exchange Commission divides reporting companies, those that file periodic reports under the Securities Exchange Act of 1934 into different categories based on size, among other factors.[1] Smaller companies have less stringent reporting obligations, provide less historical financial information, are exempt from some provisions of the Sarbanes-Oxley Act of 2002,[2] and have more time within which to file their reports. The smallest category of company is known as a Smaller Reporting Company. A Smaller Reporting Company will qualify as such if, as of the last business day of its second fiscal quarter, they have a public float of less than $75 million.[3] Public float is defined as the shares of their publicly traded common stock that is not held by management and certain large investors. Not all companies that file reports under the Securities Exchange Act of 1934 are publicly traded, and so if a company cannot calculate its public float, then an alternative way to be a Smaller Reporting Company is to have annual revenue of $50 million or less.[4] Company’s are required to do the analysis each year following their second fiscal quarter and, after a transition period, will then be required to file accordingly.[5]

At this point in the article, we will give you some time to digest this information.  This covers Page 1 of Form S1 (An 8 page Form).  Keep us bookmarked and check back for Part 2 of "THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form S-1 REGISTRATION STATEMENT Under The Securities Act of 1933"

The MicroCapCompany Team

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Sunday, August 17, 2014

Finding Undervalued & Under Analyzed Stocks and Companies: Not All Investment Newsletters Are Equal

About one year ago we wrote an article titled "Penny Stock Newsletters and Penny Stock Pickers: Using Them To Your Advantage" discussing how you could use "penny stock" newsletters and stock pickers to your advantage.  This included trading on information provided, avoiding information all together and other tactics for leveraging the information dispersed by these newsletters.  But not all newsletters are built equal.  Outside the vein of penny stock newsletters there are actually some newsletters and reports that are worth while.  The issue is weeding them out.

Trust No-One and Ask a Bunch of Questions
In a 2013 article by Barron's title "Newsletter Returns: Be Skeptical", Mark Hulbert took an in-depth look at newsletters and found some investment advisers on the take (from companies they were promoting) or just plain lying about their returns on their newsletters.  Some were even truthful, it was just that the way they calculated their numbers could mislead a novice investor.  For example, when calculating annualized returns, on publisher stated that he calculated 145% annual return by taking "every single closed position — both stocks and options — since we launched the service…. The average gain per trade was 19.7% and the average holding period was 74 days. If you annualized that, you get the 145%."  While this is correct, the novice investor would be unaware of this tactic.

I must also add, the novice investor should not be investing in the stock market.  The stock market, a zero-par game, is for sophisticated investors.  A professor in business school, a graduate of The Wharton School of Business, once told me "Stock are among the riskiest asset classes when compared to real estate, bonds or cash...if you don't know what you are doing you can lose you shirt".  Make sure you know where you stand.  

Seek Credibility and Ask For a Free Trial and Tip Toe In
Before you rely on a newsletter....wait....you should never solely rely on one newsletter.  It should be taken in conjunction with many other sources of data including but not limited to financial reports, SEC filing, company press releases and more.  Always continue your homework.

Seek Credibility: While some big newsletters such as TheStreet by Jim Cramer or Fool.com seem credible, you have to look to see who exactly is writing the report, research or investment newsletter.  It is not always the case that the writer have the credibility the site does.  This also goes for smaller newsletters.  It is not always the case that a small website found on page 6 of Google is not credible.  Some are written by very intelligent teams.  For example, The Focused Stock Trader, an investment newsletter covering undervalued companies, is well written and researched by a team of financial professionals.  Always seek the resumes and credentials of the team of contributors.

Ask for a Free Trial: Some reports will say that their service is so good that you need to pay.  Okay, we will bite.  But first, prove it!!!  Most of the best and most diligent stock newsletters allow a free trial to get you started.  This will allow you to gauge the quality of research and reports you receive.

Not all investment newsletters are equal, sometimes bloggers offer the best advice and sometimes they come in an email blast.  The digital age has your work cut out for you.  Take a look at some of the links in this article and let us know what you think about their services.  Have you had an experience with an investment newsletter that you would like to share?  Comment below with your thoughts, comments or insights...

-The MicroCapCompany Team

Tuesday, July 1, 2014

Raising Your First $1,000,000 from Investors for Financing Your Venture

Raising money for your venture is no easy task.  Raising $1,000,000 is even harder.  There are somethings you should know before you even attempt to do this.  Below is a video from Google Ventures that explains some of the pitfalls and technical aspects of Series A financing.  While the entrepreneur focuses on raising money for a "tech" company, many of the principles are applicable to all fundraising.  Check it out and let us know what you think....



The MicroCapCompany Team