On myDigitalStartup.net, we continue to post tips and ideas for startups, and perhaps the most relevant lesson from all entrepreneurs is simple: founders need to think of their startup as a small business. A couple of recent articles highlight what NOT to do when the startup or business model goes south:
Brett Favre Sued For $16 Million After Failed Launch Of Bullcrap Social Media Startup: The Reason for this lawsuit?
Despite representations that Sqor was expecting to raise up to $25 million through a round of equity capital, CCM says this was a lie. They claim the company provided a growth chart that “negligently and/or fraudulently misrepresented” their projected income for 2018 as $44 million.
Further, CCM claims that Sqor “materially misrepresented” they had over 325 million fans (users) and their social reach was over 350 million. They even claimed the Sqor “went so far as to misrepresent” their social media platform’s user growth metrics exceeded that of Twitter and LinkedIn.
The founder of a now-defunct Santa Clara job search startup pleaded guilty in federal court in San Jose Monday to one count of defrauding an employee with a forged bank transfer confirmation that purported to represent back pay. Isaac Choi, 36, formerly of Santa Clara and most recently from Orange County, was chief executive officer of WrkRiot, a company aimed at providing an online job search service. Choi founded the company in 2015 under the name of 1For.One and later changed the name to JobSonic and then WrkRiot.
Choi pleaded guilty before U.S. District Judge Edward Davila to one count of wire fraud. The fraud involved emailing an unidentified employee a forged Wells Fargo wire transfer confirmation purporting to represent a salary payment.
These articles highlight what should have been obvious: Startups are businesses, and like any other business entity, they and the founders are liable for debts and legal commitments!
Other articles from the past
Startup in news for wrong reason: co-founder arrested for cheating