Transparency as a corporate governance practice IS a best practice. The SEC is holding hearings right now to update/modernize the Reg D laws, including adding required transparency. The SEC was formed under the '33 Act to enforce the newly established standardized reporting requirements for publicly traded companies - as an act of risk management for investors. The same is necessary for startups. The failure rates are so high in part because the 'fake it 'til you make it' mentality. There is a right way and a wrong way to do it. And yes, I am talking up my own book, as my company provides the first '33 Act-like' Investor Relations for startups. There is a right way, and a wrong way. We make sure startups walk that line while delivering best in class reporting and performance analytics on the progress of the company. When investors in startups start behaving more like portfolio managers and less like gamblers chasing shiny objects, then they will be able to manage the risks inherent in this asset class (and the negative news/trends that inevitably surface with any startup) at the portfolio level.
Both startups and investors need to become more professional in their behaviors, it's that simple.
Joe Milam
Transparency as a corporate governance practice IS a best practice. The SEC is holding hearings right now to update/modernize the Reg D laws, including adding required transparency. The SEC was formed under the '33 Act to enforce the newly established standardized reporting requirements for publicly traded companies - as an act of risk management for investors. The same is necessary for startups. The failure rates are so high in part because the 'fake it 'til you make it' mentality. There is a right way and a wrong way to do it. And yes, I am talking up my own book, as my company provides the first '33 Act-like' Investor Relations for startups. There is a right way, and a wrong way. We make sure startups walk that line while delivering best in class reporting and performance analytics on the progress of the company. When investors in startups start behaving more like portfolio managers and less like gamblers chasing shiny objects, then they will be able to manage the risks inherent in this asset class (and the negative news/trends that inevitably surface with any startup) at the portfolio level.
Both startups and investors need to become more professional in their behaviors, it's that simple.