Close Menu
The Elite TimesThe Elite Times
  • Home
  • Entrepreneur
  • Finance
  • Fund
  • Investment
  • Marketing
  • Stock
  • World
  • Business

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Visionary Entrepreneur Manuel Manzoni and International Taxation Expert Marco Scardeoni Partner to Drive Global Expansion through GCC Advisors

April 16, 2024

Help comes to Fort Worth businesses affected by explosion – NBC 5 Dallas-Fort Worth

March 29, 2024

Lawmakers claim ‘irresponsible’ withdrawal from Endowment Fund proceeds to pay full dividends

March 29, 2024
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
The Elite TimesThe Elite Times
  • Home
  • Entrepreneur

    21 Great Business Ideas for Nurse Entrepreneurs

    March 27, 2024

    EY announces 18 female entrepreneurs selected for EY Entrepreneurial Winning Women™ Asia-Pacific class of 2024 | EY

    March 27, 2024

    Victims of Baltimore bridge collapse include father of three and budding entrepreneur

    March 27, 2024

    Until April 2nd, get great discounts with lifetime access to this stock market app

    March 27, 2024

    Secure and reliable project management support for $25

    March 27, 2024
  • Finance

    Rocket Pharmaceuticals Announces Appointment of Aaron Ondrey as Chief Financial Officer and Additional Updates to Corporate Leadership Team

    March 26, 2024

    Reddit ignites resurgence in meme stocks, further sign of ‘bull market on all fronts’

    March 26, 2024

    Walmart stock plummets, retail giant expected to see further growth

    March 26, 2024

    Stocks soar as Wall Street looks to continue breaking records

    March 26, 2024

    Stocks soar as Wall Street looks to continue breaking records

    March 26, 2024
  • Fund

    Help comes to Fort Worth businesses affected by explosion – NBC 5 Dallas-Fort Worth

    March 29, 2024

    Lawmakers claim ‘irresponsible’ withdrawal from Endowment Fund proceeds to pay full dividends

    March 29, 2024

    The LDP slush fund scandal: What will make po

    March 29, 2024

    City of San Antonio seeks dismissal of Reproductive Justice Fund lawsuit

    March 29, 2024

    Clashes expected between Biden fundraisers and President Trump during preview visit to New York

    March 29, 2024
  • Investment

    Amazon (NASDAQ:AMZN) accelerates investment in humanity and accelerates AI drive

    March 28, 2024

    Recent trends in Kazakhstan’s investment situation

    March 28, 2024

    City of South Bend shares plans for Madison Lifestyle District with more than $330 million in private investment

    March 28, 2024

    OKX Ventures announces strategic investment in MyShell, a pioneer in AI-integrated Web3 technology

    March 28, 2024

    Reform of the EU Foreign Direct Investment Screening Regulation – How might M&A Transactions be impacted? | Mayer Brown

    March 28, 2024
  • Marketing

    Premium hospitality is on fire

    March 27, 2024

    S&P 500 sets record as Wall Street emerges from lull

    March 27, 2024

    DevvStream Announces Multi-Year Agreement to Sell CFR Credits with Major Logistics and Marketing Company

    March 27, 2024

    Global online dating services market by service (casual dating, matchmaking, niche dating), subscription (annual, monthly, quarterly), age group, and gender

    March 27, 2024

    Tower Federal Credit Union Receives Two CUNA Diamond Awards for Creative Excellence in Marketing

    March 27, 2024
  • Stock

    Forget Tesla: We think the ‘Magnificent Seven’ should replace this stock

    March 27, 2024

    Forget about Tesla: One of the unstoppable artificial intelligence (AI) stocks belongs to the ‘Magnificent Seven’ instead

    March 27, 2024

    2 Artificial Intelligence (AI) Stocks with Potential for Parabolic Growth

    March 27, 2024

    Mr. Powell’s comment

    March 27, 2024

    What you need to know about Trump Media’s stock debut

    March 27, 2024
  • World

    Take a look inside the New York Stock Exchange, the world’s largest stock market

    March 26, 2024

    China challenges Biden’s electric vehicle plan at World Trade Organization

    March 26, 2024

    Wolfspeed joins Senator Thom Tillis and key officials to conquer world’s largest and most advanced silicon carbide facility

    March 26, 2024

    Amy Brenneman, Raviv Ullman, Jeremy Love, cast and others in ‘Galilee’ world premiere, 34 years old

    March 26, 2024

    These beauty brands are among the most innovative companies in the world

    March 26, 2024
  • Business

    Canadian business leaders say housing should be a top federal budget priority

    March 27, 2024

    The power of mentorship in business

    March 27, 2024

    Los Angeles County business owner forced to pay damages after SWAT raid

    March 27, 2024

    Chinese President Xi meets with foreign business leaders amid economic uncertainty | Business and Economic News

    March 27, 2024

    China’s Xi Jinping meets with US business leaders in Beijing

    March 27, 2024
The Elite TimesThe Elite Times
Home»Business»Will you go out of business? – Los Angeles Business Journal
Business

Will you go out of business? – Los Angeles Business Journal

The Elite Times TeamBy The Elite Times TeamMarch 18, 2024No Comments8 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest WhatsApp Email

[ad_1]

Platform: SimpleClosure Team, back row from left: Nimrod Ram. Giri Sironi. Harris Thompson. Sinclair One. Front row from left: Jessica Pedraza and Dori Jonah.

Whether the economy is in a technology winter or a technology boom, running a company and keeping it successful is difficult. Case in point: According to the Bureau of Labor Statistics, about 20% of small businesses fail in their first year.

For companies that don’t do well, the next step is a little more complicated than it seems. Simple Closure Co., Ltd.. I want to help. Closing a company includes tasks such as filing dissolution documents, canceling employer identification numbers, resolving financial obligations to vendors and customers, and paying final wages to employees.

simple closure works with companies that have ceased operations, helping entrepreneurs and business owners avoid overcomplicating things or missing important steps. In a sign of growth, the Santa Monica-based technology platform closed $4 million in seed funding last month after launching from stealth with $1.5 million in pre-seed funding in September. His recent $4 million seed round for SimpleClosure exceeds what other startups achieved last year. crunch basethe median seed round for US companies in the first quarter of last year was $2.3 million.

Aiming for beautiful closures

The establishment of SimpleClosure was dori yona Now the company’s chief executive, he faced the prospect of shutting down the financial technology business he founded. Ernie Co., Ltd. Santa Monica-based Arnie’s was eventually acquired, and although it ultimately did not close, he was at a loss when working to create a closure analysis for investors. Jonah said he was unable to find any guidance online or through Ernie’s attorneys on assessing debt, setting a schedule, organizing a projected severance package, or other necessary tasks.

“One of the biggest problems that we’ve seen businesses and businesses have is they think they’re shutting down, but they’re not shutting down properly,” Jonah said. Told. “We comb through state public databases to really make sure there aren’t any unresolved stones or skeletons in the closet, and we don’t just rely on information provided by the company.” takes that, aggregates it with the data we find across public databases, and then our platform puts together a personalized shutdown plan for your company.”

SimpleClosure’s Series A round was led by infinity ventures With participation from fox capital and existing investors. SimpleClosure declined to reveal the number of companies he has partnered with so far, but said his customer base has increased by more than 600% since launching in September.Previous customers include: Lance Global Co., Ltd. and telemedicine companies Peak health.

Other options for closing a business other than SimpleClosure include liquidation companies, accounting firms, law firms, and filing for bankruptcy. Jonah emphasized that SimpleClosure is not a law or accounting firm and does not provide legal advice.

Some companies may be able to continue operating through an acquisition or filing for bankruptcy. marvel comics, general motors company and Texaco Co., Ltd. All had filed for Chapter 11 bankruptcy in the past and have since made significant recoveries.

One concern for companies in bankruptcy is that they may not have enough money to spend on services like SimpleClosure. But SimpleClosure says that while traditional companies charge him more than $75,000 in fees and the process can take him as long as a year to complete, the company’s service takes “days or weeks.” It claims to be able to provide a shutdown analysis plan.

SimpleClosure charges businesses a flat, sliding fee based on their size, number of employees, and amount of assistance needed to create a closure plan. The company declined to disclose exact fees, but said it was a “fraction of the cost” of traditional breakup services.

“I think we offer a very attractive, very price-sensitive value proposition,” Jonah said. “If a company is short on cash, there are cases where investors pay the price. Investors have a common interest in ensuring that[the company]is properly lean, and in many cases directors It is at stake. If certain things are not paid, it could pierce the corporate veil, in which case directors (and investors) could be held personally liable.”

Jonah said that after onboarding and providing company information about employees and finances, most of the work users on the platform do is sign documents. The documentation generated by the platform and the resulting Shutdown Analysis Plan are “modifiable.” This means customers can take those documents to an external legal authority for review if necessary.

Another important step in winding down a company involves selling assets or dissolving it. These could include subsidiaries, real estate, digital assets, or physical items such as office furniture. Jonah said his company does not currently provide clearing services for the management and sale of physical assets, but supports the sale of digital assets and intellectual property.

“There are parts of[clearing]that we already support, but the big picture is that we continue to focus on building technology that helps with automation and makes it easier and more efficient.” said.

Is there a “technology winter”?

Jonah said that while SimpleClosure is focused on the tech startup ecosystem, it is also starting to attract customer interest from more “traditional” businesses, such as small consulting firms and corporations. He said most companies come to SimpleClosure with about $1 million to $5 million in funding, and about 10% of the runway remains. But the company has also seen series venture capital firms that have raised up to $40 million or $50 million look to SimpleClosure for help.

Across the technology industry, including social media, gaming, and software development, many companies faced economic challenges last year that led to layoffs and asset sales.In the local economy, Pasadena-based consumer data company Near Intelligence Co., Ltd. and a Long Beach-based space launch company. virgin orbit Both companies filed for bankruptcy in 2023, but neither used SimpleClosure’s services. SimpleClosure previously powered a Mar Vista-based social marketplace crispy Cut Co., Ltd. Financial Technology Based in Manhattan Beach Carbon Payment Technologies LLCdoing business as ZenBill Inc.

While there has been widespread talk of a “tech winter” in 2022 and early 2023, a period of economic downturn and reduced investment in technology, the rate of closure faced by small businesses and startups has remained consistent throughout history. Jonah said. According to a report from the U.S. Small Business Administration, between March 2021 and March 2022, 9 out of 14 businesses that opened closed. During the same period from 2020 to 2021, about 8 out of every 10 businesses that opened closed.

“If you look at the aggregate (small business) growth and market graphs across the United States, they’ve been pretty much flat for the past 10 years[because]there’s a constant cycle of businesses starting, incorporating, and closing. “Because I am,” Jonah said. “When I started looking at the company formation market, I thought, ‘There are so many companies that can help you start a company, so why isn’t there anyone to help you close it?'”

mike jones Co-founder and Managing Director of a Santa Monica-based investment firm and incubator Science Co., Ltd., agreed that startups are always vulnerable and last year was no exception. Jones said companies need to plan for longer funding cycles and prepare for the reality of securing investment in a competitive market environment.

“It’s always ‘tech winter,'” Jones said. “There is always an element of uncertainty for startups due to market fluctuations and competitive pressures. This highlights the need for startups to continually adapt and innovate in order to grow. is exactly what successful startups do.”

Jonah agreed that the idea of ​​a recent technology winter ignores the consistent ratio of new openings to closings and liquidations of companies.

“Right now, with the slowdown in financing, there’s a heightened awareness of closures, but businesses are closing in every economy,” Jonah said. “This is just a part of entrepreneurship that hasn’t been talked about openly before.”

He added that the companies he sees struggling the most include those that started during the coronavirus outbreak and were founded on “pandemic behavior.” Jones emphasized that industries with low or negative margins, such as food delivery and ride-sharing, are particularly vulnerable because they rely on venture capital subsidies to defray consumer costs. . But Jonah, industry agnostic, said it’s a very difficult time to be in the technology industry, especially in a time when unit economics don’t make sense.

“Before, you could raise money without income, thinking that you would get income later, but now that is becoming almost impossible,” Jonah said. “You have to show profitable growth. You can’t grow without revenue. Many companies are founded on the premise, ‘We don’t have revenue, but we will have revenue eventually.’ I think it’s vulnerable.”

Funding for the future

Jonah said the firm’s plans for the new fund are to “grow, grow, grow.”

“We’re focused on two things: growing the product and evolving the product,” Yona says. “We have a lot to build, and we plan to invest heavily in research and development. This means growing the engineers and product designers on our team,” Jonah said. “The second focus is market development. We’ve been very fortunate to be able to grow very aggressively with literally zero marketing. It’s all been through word of mouth. Because we think we’re really solving a problem. Our goal now is to put money into it.”

[ad_2]

Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleBirkoa Max Global Fund Announces Successful Initial Semiconductor Investment
Next Article Patterson hanging skis
The Elite Times Team
  • Website

Related Posts

Canadian business leaders say housing should be a top federal budget priority

March 27, 2024

The power of mentorship in business

March 27, 2024

Los Angeles County business owner forced to pay damages after SWAT raid

March 27, 2024
Leave A Reply Cancel Reply

Demo
Latest Posts

21 Great Business Ideas for Nurse Entrepreneurs

March 27, 2024

EY announces 18 female entrepreneurs selected for EY Entrepreneurial Winning Women™ Asia-Pacific class of 2024 | EY

March 27, 2024

Victims of Baltimore bridge collapse include father of three and budding entrepreneur

March 27, 2024

Until April 2nd, get great discounts with lifetime access to this stock market app

March 27, 2024
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Don't Miss

The Chamber’s “Business After Hours” event brings together business and industry interests that share a common goal – Grand Forks Herald

By The Elite Times TeamDecember 31, 2023

[ad_1] Editor’s note: The following is part of an occasional Herald series about how Grand…

Business Profile: Skradski Family Funeral Homes looks to the future | News, Sports, Jobs

January 2, 2024

Jeffrey Epstein’s court documents released without name

January 4, 2024

Subscribe to Updates

Get the latest creative news from SmartMag about art & design.

Demo
About Us
About Us

Welcome to [Your Website Name], your go-to source for comprehensive information on funds, investments, and the latest in stock news. We are dedicated to providing you with accurate, insightful, and up-to-date content to empower your financial decisions.

Facebook X (Twitter) Pinterest YouTube WhatsApp
Our Picks

Visionary Entrepreneur Manuel Manzoni and International Taxation Expert Marco Scardeoni Partner to Drive Global Expansion through GCC Advisors

April 16, 2024

Help comes to Fort Worth businesses affected by explosion – NBC 5 Dallas-Fort Worth

March 29, 2024

Lawmakers claim ‘irresponsible’ withdrawal from Endowment Fund proceeds to pay full dividends

March 29, 2024
Most Popular

Visionary Entrepreneur Manuel Manzoni and International Taxation Expert Marco Scardeoni Partner to Drive Global Expansion through GCC Advisors

April 16, 2024

Teenage Girl Finds Mom’s Debit Card, Spends $64,000 on Mobile Games

January 9, 2020

Apple’s Beats Studio Pro Headphones Listed in FCC Database Ahead of Launch

January 10, 2020
© 2025 theelitetimes. Designed by theelitetimes.
  • Home
  • About us
  • Contact us
  • DMCA
  • Privacy Policy

Type above and press Enter to search. Press Esc to cancel.