Linkibuzz 34

How Startups Should Approach Investors

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It’s been a big week in the world of Startups, employment, and law, and we’ve got some of the biggest stories of the week coming your way with this edition of the Linkibuzz.


The case between Apple and the FBI has been one of the biggest and lingering stories of the last few weeks. Finally, it has reached its climax and now the case has been resolved. However, it definitely shows that there are going to be future incidences like this between tech companies and federal law enforcement agencies of each country.


Our second featured story talks about how Startups can get investment funding. You’ll hear it straight from a man who invests money in companies so there is some important lessons to learn if you want to get Startup funding.


We know that there is still gender equality issues within Silicon Valley and the workplace in general. In our third story, you’ll read about how pregnant women are exposed to bias and negative double standards that new fathers in the same industry aren’t exposed to.


Lastly, we have an interesting story about a whirlwind legal case where a former employee of a diamond company complained about perceived pay discrimination, only to be sued by the company for complaining. Now that company is facing legal action from an Equal Employment Opportunity Commission.


We did say it was a whirlwind case!   


Sit back, relax, and enjoy our stories for this week.


Resolutions In FBI-Apple Case Prolongs Larger Legal Battle


Anyone who hasn’t been living under a rock in the past couple of months will be well aware of the legal battle ensuing between the FBI and tech giant Apple. The FBI had been demanding that Apple give it access to one of its customers phones. Apple refused on the basis that it jeopardised customer security and privacy, and they even took it to court and won.


Either way, the FBI was able to obtain the information it needed from the phone in question. What it does, is show just how far the government can go when it comes to challenging tech Startups regarding customer security and privacy.


It should be something that concerns anyone who is involved with a tech Startup. On the one hand, the FBI is trying to protect national interests and security. Then, on the other hand, you’ve got Apple trying to protect the interests of its customers.

It’s a battle that doesn’t look like it’s ending anytime soon as this article aptly points out. There have been other criminal cases where tech companies have refused to grant federal agencies the access they’ve demanded, in the name of protecting the interests of their customers.


One thing it has done it galvanise many of the tech giants with even companies like Google coming together in support of Apple. It’s an interesting situation involving both of these different sides and viewpoints, and one that many Startups in the tech industry should be well-aware of.


Homebrew’s Satya Patel On His Firm’s Investment Thesis And How Startups Should Approach Investors


We all know that the bane of many Startups is a consistent cash flow in the beginning and obtaining crucial investor funding to ensure long-term survival.


So what better way to find out how you can get investor funding other than via people involved in this very process. Enter Homebrew’s Satya Patel. Homebrew is an investment firm that gives money to young companies it thinks will make it big. So this is a great opportunity to learn about what it takes from someone involved in this process, about how to actually get investor funding.


Patel points out that there is really one thing to focus on if you want to get investor money from him, or more broadly speaking, investors in general. That is to establish  emotional resonance in the potential investor. Now Patel outlines that there are really two ways to achieve this; the founder’s own personal story and the connection the founder makes with the potential investor.


Or the mission statement of the company itself. These are really the two things that stick out for him and he claims it’s the founder and the mission statement that are the crucial difference in gaining investor funding over other companies.


A Pregnant Startup Founder’s Experience Fundraising Exposes A Big Problem In Silicon Valley


Gender equality and diversity is something that has been at the attention of Silicon Valley and the broader workforce in general, for years now.


This post exposes how much more there is to do. There is a significant lack of Startups and companies in general that have a female CEO or founder. And the number of those that are pregnant is even fewer, and that’s what makes this post so interesting.


Peretz Partensky is the co-founder of Sourcery. His partner who is pregnant is leading fundraising efforts for the company. What Partensky noticed was that there was a lingering bias in many investors towards his partner and the company itself and their bid to deliver once they realised his partner was pregnant. Partensky points out that there is a big double standard in this area because new fathers are not exposed to the same kind of bias and negative doubts compared to women who are going to become mothers.


It openly made investors question whether or not the company would deliver upon its fundraising goals. What this whole experience showed Partensky is that there is just not enough awareness and education around this very topic and that there is some important work that needs to be done to raise awareness around this.


Equal Employment Opportunity Commission Sues Diamond Business


In this post, we have a case of a diamond business facing a lawsuit for wrongfully suing a former employee who complained of pay discrimination. This specific case involves a female former employee called Tera Lopez who worked for the diamond business, Hobson Bearing International for three years.


She claimed that female workers were being paid less than their male counterparts for the same amount of work. The Equal Opportunity Commission investigated Lopez’s complaint and found that there was no wrongdoing on the part of the company.


After this, things started to get even more heated. The company decided to pursue legal action against Lopez for filing a complaint of perceived pay discrimination. Mind you, the lawsuit was withdrawn by the company’s lawyer on the same day. Either way, EEOC filed their own lawsuit against the company because they tried to pursue legal action against Lopez.


For the EEOC, it’s now about protecting employees’ rights and their right to pursue equal rights whenever they see fit. Now it’s become a whirlwind of a scenario and who knows what will happen next.


No matter what happens, it shows the importance of making sure everyone at your company is on a level footing. It’s also a reminder about why contracts between your employees that clearly state their pay rate and other benefits, conditions of employment, are so vital.


As long as you do the right thing on your end, you should be okay in the majority of cases. Making sure you’ve got a watertight legal foundation is a good starting point.

Closing Thoughts: The Linkibuzz

This week’s stories have highlighted some important issues in the Startup community, especially around gender equality. We know that the gap has been bridged significantly over the years but there is still some work to do as demonstrated especially by our third story.


The case between Apple and the FBI that has now finally concluded shows that these kinds of incidences are going to occur in the future. There is always going to be a concern for tech Startups and protecting the privacy of their customers, even from federal law enforcement agencies and the government in general.


We hope you enjoyed these stories and stay tuned for next week’s Linkibuzz!