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Verified Expert Brand Designer: Milkinside

Gleb Kuznetsov refuses to settle for less. After spending years leading product design for startups and corporate clients, Gleb started a boutique branding agency, Milkinside, that helps clients translate new technologies into useful products.

Gleb and his team of experienced creators are committed to serving the end user, which is why they love taking products from zero to launch. Their services are expensive, partly due to their expertise in product development, motion graphic design and animation, but we spoke to Gleb about why Milkinside is more than just a branding agency and how they strive to be the best.

Why Gleb created Milkinside:

“I wanted to create a team that wasn’t just an agency that companies could contract, but a partner that would support the client’s product development from beginning to end. Everything from the product narrative, product branding, product design, UI user experience, motion design, design languages, motion design languages, etc. I looked around the industry and didn’t see what I was envisioning so I created my dream company, Milkinside, in 2018.”

“Gleb has one of those rare skills that can make ordinary, plain parts of a design come to life and doing so in a beautiful and useful way. Always pushing the boundaries.” Jacob Hvid, Stockholm, Sweden, CEO and Co-founder at Abundo

On common founder mistakes:

“There are a lot of founders who believe they created useful technology and are absolutely certain people will use it. But everything is moot if users aren’t able to understand your product narrative and how it fits into their lives. Establishing a product narrative at an early stage is essential. A lot of founders will try to create a minimum viable product as soon as possible, but they aren’t thinking about the narrative, branding, the product design, and how everything comes together.”

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup brand designers and agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.


Interview with Milkinside Founder and Director of Product Design Gleb Kuznetsov

Yvonne Leow: Can you tell me a little bit about yourself and how you got into the world of branding and design?

Gleb Kuznetsov: I was 10 years old when I started programming and learning different coding languages. At the age of 15, I shifted to design and became pretty passionate about what could be possible in the digital world. I worked as a product designer for 15 years before I started Milkinside. I worked for big consumer product companies across various verticals and platforms. When I was a chief design officer at a startup, I was responsible for everything from the product design, UI design, branding, advertising to producing product explainer videos.

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Verified Expert Brand Designer: Kristine Arth

After spending a decade working at international design and branding agencies, Kristine Arth launched her own independent branding agency called Lobster Phone last April. Since then, she’s launched 22 brands under her unofficial tagline “I don’t sleep.” Lobster Phone, however, is all about creating iconic brands with bold personality, which Kristine passionately delivers to her clients. We spoke to Kristine about her branding philosophy, the story behind the name Lobster Phone, and why she loves working with founders.

On working with founders:

“My specialty is people, honestly. I don’t find that I focus in any category, field, or particular segment of an industry is my focus. My specialty is working with people and understanding their background because entrepreneurs have a very different outlook on life. They will climb that mountain at all costs, and I feel very similarly. My sign is Capricorn, I’m a goat. So I will always climb to the top of that mountain. I feel very in line with entrepreneurs in that way because I want to help them do their best work.”

“Kristine is what every person dreams of in a design partner to give your brand a soul and heart.” Julián Ríos Cantú, México City, Mexico, Co-founder and CEO, Eva Tech

On common startup mistakes:

“Entrepreneurs will come to me and say, “I want a logo, I want a campaign, I want this.” And I will say, you need a brand, you need strategy, you need a foundational promise to sell to your clients. And with that foundational brand strategy and a flexible brand, we’ll get what you want. The common mistake is to come with a solution versus coming in with the problem.”

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup brand designers and agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.


The Interview

Yvonne Leow: Can you tell me a little bit about yourself and how you got into branding?

Kristine Arth: I originally thought I was going to be a ceramist. I went to school at Columbia in Chicago, and studied ceramics for about half a semester before I discovered the computer lab, and was like “Oh my God, everything is happening so fast there, this is amazing. It’s for me.” So I quickly moved into graphic design and never looked back. I started in advertising and marketing, and worked in Chicago for about 10 years at Leo Burnett, Wunderman, and then moved out to San Francisco to start fresh. Fuseproject, a top industrial design and branding agency, reached out to me, had me come in for an interview and the rest is history.

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Verified Expert Brand Designer: Ramotion

Ramotion is a remote branding and product design agency that has worked with Bay Area tech startups since 2014. While they typically do branding for funded, fast-growing startups, Ramotion has helped companies ranging from Bitmoji’s early brand identity to Mozilla’s rebrand. We spoke to Ramotion’s CEO Denis Pakhaliuk about their iterative approach, his favorite branding projects and more.  


Ramotion’s branding philosophy:

“We are a big fan of starting small: designing a small package, releasing it and then iterating on top of that. So, founders need to be focused on what’s really necessary right now for their next round of investment or product releases.”

On common founder mistakes:

“I think some founders think they need everything, but they actually need an MVP and product design. The same goes for brand identity. They need to have some key elements like colors, typeface and the logo. There is no need to do everything in the beginning, because the logo and brand identity becomes meaningful after it’s used. It’ll eventually improve.”

“They’re the reason we have such an amazing logo today.” Kevin Sproles, Austin, founder & CEO at Volusion

Below, you’ll find the rest of the founder reviews, the full interview and more details like pricing and fee structures. This profile is part of our ongoing series covering startup brand designers and agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.


Interview with Ramotion’s CEO Denis Pakhaliuk

Yvonne Leow: Can you tell me about your journey and how you came to create Ramotion?

Denis Pakhaliuk: Yeah, I started as a CG designer more than 10 years ago. I was doing computer graphics, CG modeling, digitalization of architectural design and automotive design. I was initially very focused on German cars and industrial design. Once iPhone 3G came out, I switched to doing UI design for mobile apps, which was a very hot topic at the time.

From that point I met a guy who just said, “Hey, I’m thinking of building an agency,” and so we decided to do it together. It started with a few people and now we have up to 30. We focus on different products, from small companies to more established brands, like Salesforce, among others. So yeah, it’s been a fun journey.

Yvonne Leow: At what point did Ramotion start working with startups?

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How do you hire a great growth marketer?

Julian Shapiro
Contributor

Julian Shapiro is the founder of BellCurve.com, a growth marketing agency that trains you to become a marketing professional. He also writes at Julian.com.

Editors Note: This article is part of a series that explores the world of growth marketing for founders. If you’ve worked with an amazing growth marketing agency, nominate them to be featured in our shortlist of top growth marketing agencies in tech.

Startups often set themselves back a year by hiring the wrong growth marketer.

This post shares a framework my marketing agency uses to source and vet high-potential growth candidates.

With it, early-stage startups can identify and attract a great first growth hire.

It’ll also help you avoid unintentionally hiring candidates who lack broad competency. Some marketers master 1-2 channels, but aren’t experts at much else. When hiring your first growth marketer, you should aim for a generalist.

This post covers two key areas:

  1. How I find growth candidates.
  2. How I identify which candidates are legitimately talented.

Great marketers are often founders

One interesting way to find great marketers is to look for great potential founders.

Let me explain. Privately, most great marketers admit that their motive for getting hired was to gain a couple years’ experience they could use to start their own company.

Don’t let that scare you. Leverage it: You can sidestep the competitive landscape for marketing talent by recruiting past founders whose startups have recently failed.

Why do this? Because great founders and great growth marketers are often one and the same. They’re multi-disciplinary executors, they take ownership and they’re passionate about product.

You see, a marketing role with sufficient autonomy mimics the role of a founder: In both, you hustle to acquire users and optimize your product to retain them. You’re working across growth, brand, product and data.

As a result, struggling founders wanting a break from the startup roller coaster often find transitioning to a growth marketing role to be a natural segue.

How do we find these high-potential candidates?

Finding founders

To find past founders, you could theoretically monitor the alumni lists of incubators like Y Combinator and Techstars to see which companies never succeeded. Then you can reach out to their first-time founders.

You can also identify future founders: Browse Product Hunt and Indie Hackers for old projects that showed great marketing skill but didn’t succeed.

There are thousands of promising founders who’ve left a mark on the web. Their failure is not necessarily indicative of incompetence. My agency’s co-founders and directors, including myself, all failed at founding past companies.

How do I attract candidates?

To get potential founders interested in the day-to-day of your marketing role, offer them both breadth and autonomy:

  • Let them be involved in many things.
  • Let them be fully in charge of a few things.

Remember, recreate the experience of being a founder.

Further, vet their enthusiasm for your product, market and its product-channel fit:

  • Product and market: Do their interests line up with how your product impacts its users? For example, do they care more about connecting people through social networks, or about solving productivity problems through SaaS? And which does your product line up with?
  • Product-channel fit: Are they excited to run the acquisition channels that typically succeed in your market?

The latter is a little-understood but critically important requirement: Hire marketers who are interested in the channels your company actually needs.

Let’s illustrate this with a comparison between two hypothetical companies:

  1. A B2B enterprise SaaS app.
  2. An e-commerce company that sells mattresses.

Broadly speaking, the enterprise app will most likely succeed through the following customer acquisition channels: sales, offline networking, Facebook desktop ads and Google Search.

In contrast, the e-commerce company will most likely succeed through Instagram ads, Facebook mobile ads, Pinterest ads and Google Shopping ads.

We can narrow it even further: In practice, most companies only get one or two of their potential channels to work profitably and at scale.

Meaning, most companies have to develop deep expertise in just a couple of channels.

There are enterprise marketers who can run cold outreach campaigns on autopilot. But, many have neither the expertise nor the interest to run, say, Pinterest ads. So if you’ve determined Pinterest is a high-leverage ad channel for your business, you’d be mistaken to assume that an enterprise marketer’s cold outreach skills seamlessly translate to Pinterest ads.

Some channels take a year or longer to master. And mastering one channel doesn’t necessarily make you any better at the next. Pinterest, for example, relies on creative design. Cold email outreach relies on copywriting and account-based marketing.

(How do you identify which ad channels are most likely to work for your company? Read my Extra Crunch article for a breakdown.)

To summarize: To attract the right marketers, identify those who are interested in not only your product but also how your product is sold.

Other approaches

The founder-first approach I’ve shared is just one of many ways my agency recruits great marketers. The point is to remind you that great candidates are sometimes a small career pivot away from being your perfect hire. You don’t have to look in the typical places when your budget is tight and you want to hire someone with high, senior potential.

This is especially relevant for early-stage, bootstrapping startups.

If you have the foresight to recognize these high-potential candidates, you can hopefully hire both better and cheaper. Plus, you empower someone to level up their career.

Speaking of which, here are other ways to hire talent whose potential hasn’t been fully realized:

  • Find deep specialists (e.g. Facebook Ads experts) and offer them an opportunity to learn complementary skills with a more open-ended, strategic role. (You can help train them with my growth guide.)
  • Poach experienced junior marketers from a company in your space by offering senior roles.
  • Hire candidates from top growth marketing schools.

Vetting growth marketers

If you don’t yet have a growth candidate to vet, you can stop reading here. Bookmark this and return when you do!

Now that you have a candidate, how do you assess whether they’re legitimately talented?

At Bell Curve, we ask our most promising leads to incrementally complete three projects:

  • Create Facebook and Instagram ads to send traffic to our site. This showcases their low-level, tactical skills.
  • Walk us through a methodology for optimizing our site’s conversion rate. This showcases their process-driven approach to generating growth ideas. Process is everything.
  • Ideate and prioritize customer acquisition strategies for our company. This showcases their ability to prioritize high-leverage projects and see the big picture.

We allow a week to complete these projects. And we pay them market wage.

Here’s what we’re looking for when we assess their work.

Level 1: Basics

First — putting their work aside — we assess the dynamics of working with them. Are they:

  • Competent: Can they follow instructions and understand nuance?
  • Reliable: Will they hit deadlines without excuses?
  • Communicative: Will they proactively clarify unclear things?
  • Kind: Do they have social skills?

If they follow our instructions and do a decent job, they’re competent. If they hit our deadline, they’re probably reliable. If they ask good questions, they’re communicative.

And if we like talking to them, they’re kind.

Level 2: Capabilities

A level higher, we use these projects to assess their ability to contribute to the company:

  • Do they have a process for generating and prioritizing good ideas? 
    • Did their process result in multiple worthwhile ad and landing page ideas? We’re assessing their process more so than their output. A great process leads to generating quality ideas forever.
    • Resources are always limited. One of the most important jobs of a growth marketer is to ensure growth resources are focused on the right opportunities. I’m looking for a candidate that has a process for identifying, evaluating and prioritizing growth opportunities.
  • Can they execute on those ideas? 
    • Did they create ads and propose A/B tests thoughtfully? Did they identify the most compelling value propositions, write copy enticingly and target audiences that make sense?
    • Have they achieved mastery of 1-2 acquisition channels (ideally, the channels your company is dependent on to scale)? I don’t expect anyone to be an expert in all channels, but deep knowledge of at least a couple of channels is key for an early-stage startup making their first growth hire.

If you don’t have the in-house expertise to assess their growth skills, you can pay an experienced marketer to assess their work. It’ll cost you a couple hundred bucks, and give you peace of mind. Look on Upwork for someone, or ask a marketer at a friend’s company.

Recap

  • If you’re an early-stage company with a tight budget, there are creative ways to source high-potential growth talent.
  • Assess that talent on their product fit and market fit for your company. Do they actually want to work on the channels needed for your business to succeed?
  • Give them a week-long sample project. Assess their ability to generate ideas and prioritize them.

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Verified Expert Brand Designer: Mark Forscher

After leading design teams at Code and Theory, ABC News and Newsweek Digital, Mark Forscher retired his managerial hat and decided to start his own creative studio called Under After in 2008. His natural interest in technology coupled with his background in branding and product design makes him an obvious collaborator for founders looking to launch their company. We talked to him about his creative process, some of his favorite branding projects and more.  


Mark’s branding philosophy:

“I understand that it can be a challenge for founders to make definitive decisions around picking a logo or picking a color palette. It feels very concrete when a lot of product is about finding the right product/market fit, iterating, testing and using data to inform the process. So wherever possible, I try to bring that kind of iterative philosophy into the branding approach as well, which tends to work pretty well with founders, especially technology founders.”

On remaining independent:

“The reason why I haven’t scaled up my design business, why I’m not trying to be like a 10-person shop, or even a five-person shop, is because I want to be a collaborator, not a vendor that somebody outsources work to. I think it sets the expectation right upfront that we’re both in this together to figure this out. I’m just a person deeply committed to working with the founder.”

On common startup branding mistakes:

“I think one of the biggest things that impacts the success of a branding project is not investing time into it. Sometimes founders think that if they just throw money at a problem, it’ll get solved, and I think they underestimate the amount of time that’s required. It’s not that it takes an extensive amount of time, but their thoughtful feedback at every point in the process is important, and small decisions build up to big ones. It’s hard to do that if the founder’s super busy, and oftentimes founders are busy. Prioritizing that work is important.”

“Incredible brand identity and brand systems design. Thoughtful product strategy and UX design. Truly magical at taking hard concepts and making them easy to understand. A CEO & founder in NYC

Below, you’ll find the rest of the founder reviews, the full interview and more details like pricing and fee structures. This profile is part of our ongoing series covering startup brand designers and agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.


The Interview

Yvonne Leow: Can you tell me a little bit about how you got started in design and what particularly drew you to branding?

Mark Forscher: I’ve been working in design professionally since 2004. I was at R/GA while I was in grad school, worked on the Nike basketball account, and after finishing an MFA degree at Parsons, I joined Code and Theory. I was one of Code and Theory’s early hires, I think I was the 6th or 7th employee, and was quickly promoted to be their first official creative director. So I learned a lot about how to run large-scale digital projects, from definition, UX, design, to project management. I really liked working directly with clients to understand their needs, and to create impactful work.

After Code and Theory, I wanted to work in-house at a media company because I wanted to build digital projects and create longer-term value instead of a single engagement on a contract basis. I was really interested in doing work in the service of good editorial content.

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Verified Expert Brand Designer: Character

Character is celebrating its 20-year anniversary this year, and this SF-based branding and design agency has a lot to be proud of. Founded by Ben Pham, Tish Evangelista, and Rishi Shourie, Character has helped startups like Doordash, Glint, Molekule, and many others, launch their companies into the world. We interviewed co-founder Ben Pham about Character’s early days, their commitment to collaborating with mission-driven founders, and why relationships define who they are and what they do as a branding firm.


On working with entrepreneurs:

“When you have an opportunity to sit in the room, hear how passionate they are, how they left a cushy job, and this is their mission, it’s inspiring. Oftentimes, it’s not financially motivated for them. It’s not about their ego. You think about that, and you’re like, “Wow, I get to be in this room with someone that’s really passionate” and we start believing in it. We have to believe in what they’re creating, and we have to believe that they’re leaving a positive impact on our culture. We want to make sure founders are contributing in a positive way. We believe in the people that we’re working with and what they’re doing.”

“The Character team was extremely creative and easy to work with, always open to exploring new ideas.” Howard Nuk, SF, Co-founder at Palm

Character’s branding philosophy:

Great brands, for us, is about relationships. It’s a long-lasting relationship, and those relationships are earned. We think of brands like a character within a story. They have a unique characteristic about them. When you have dinner parties, you’re inviting people into your home who you’re going to enjoy the next three hours drinking wine, eating food, and just talking to them. You always know who you’re going to invite and the dynamic of the room. We think about brands in the same way.

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup brand designers and agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.


Interview with Character’s Creative Director & Co-Founder Ben Pham

Yvonne Leow: What’s Character’s origin story? How did it get started?

Ben Pham: We started in 1999, and the reason why we started our agency was, in 1999 if you were in San Francisco, and practicing graphic design during that time, a lot of our work was coming from biotech, and technology companies. Those companies did not look like the life science, biotech companies that we see today, because they were not lifestyle companies. Tech companies, during that time, did not look like lifestyle companies. We’re like, “Well, that’s not an area that we’re really interested in.” We felt like, you know, in southern California to LA, and New York, a lot of branding agencies were focusing on consumer lifestyle brands. Fashion, apparel, interior, and nobody was really doing that in San Francisco, and that was something that we were interested in. So we were like, “Let’s do that.”

As a result, we landed our first project, which is branding for Pottery Barn Kids. That really was a very different way of thinking about branding for kids, because most time, people think of bright primary colors, jumbled type. We realized that kids are not our target audience, it’s really parents, so we made a smooth and sophisticated system. And that got a lot of attention for Character, and then we went on to work with Gary Friedman, the CEO of Restoration Hardware.

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Should you hire an in-house designer or a contractor?

Editor’s note: This post is a part of our latest initiative to demystify design and find the best brand designers and agencies in the world who work with early-stage companies — nominate a talented brand designer you’ve worked with.

During a decade as the manager of the in-house design team at open-source technology company Red Hat, Chris Grams learned that brand design is best when informed by a company’s culture and community.

He felt a natural push toward an open, collaborative attitude, distinct from how many companies approached design at that time. It was the early 2000s, and most companies saw their interactions with customers as a one-way street. In open source, it was an intersection.

“You almost break down the company and the community of people who surround the brand,” says Grams, currently head of marketing at Tidelift, an open-source software management firm, and author of The Ad-Free Brand. “Now it feels like pretty standard operating procedure for the best brands that have the best relationship with their communities.”

This shift has a large influence on the question of when you should hire an in-house designer versus a contractor to do your branding design.

Three reasons to go in-house

After leaving Red Hat in 2009, Grams helped start New Kind, a branding agency that provides contract design services mostly to tech companies. This new vantage point allowed him to see drawbacks and advantages for companies in outsourcing design versus bringing it in-house.

One of the key benefits of in-housing is the designer’s intimacy with the deeply held values and culture of the company, which makes their branding work feel more authentic.

“The internal agency’s power really reveals itself when people are deeply part of the mission of the company,” says Grams. “It comes through in the work. You get an amazing work product.”

The second benefit, especially for tech companies, is the depth of understanding in-house designers can develop about the company’s products and services. And the third is that a dedicated in-house designer can be directed as needed to respond to pressing priorities.

“You can have them stop on a dime,” says Grams. “Say a competitor comes out with a big launch and you need to have something out within 24 hours. You can work on it right away.”

These are real benefits, but they may not outweigh the advantages of contracting out your design to a high-quality agency.

The benefits of using an agency

A major benefit of an agency is that you can hire people with a level of expertise and variety of skills that would be out of reach for an in-house team. When Grams was at New Kind, for example, “we had a combined 30 years of experience with open-source branding work,” he says.

An agency can also provide the bandwidth to take on non-priority tasks such as a rebrand or a special series that in-house teams are often too work-strapped to take on.

Hiring an agency also has advantages in terms of flexibility and cost. The ability to customize the timing and amount of design work to your needs can be less expensive over time, even if each working hour is more expensive.

“You can ramp down and ramp up with an agency,” says Grams. “It’s impossible to do that with people… You’re paying that extra margin to have that flexibility.”

There’s a lot to think about, but Grams advises prioritizing the need for your design to be authentic to your culture… or not.

“I think the biggest thing is the power of your culture, frankly,” says Grams. “If you have a company where culture is not an asset, I would not build an in-house design team… But if you’re building a mission-driven organization or an organization where culture is super important, that’s where I would take an extra-long look at building an internal agency.”

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Startup Law A to Z: Regulatory Compliance

Startups are but one species in a complex regulatory and public policy ecosystem. This ecosystem is larger and more powerfully dynamic than many founders appreciate, with distinct yet overlapping laws at the federal, state and local/city levels, all set against a vast array of public and private interests. Where startup founders see opportunity for disruption in regulated markets, lawyers counsel prudence: regulations exist to promote certain strongly-held public policy objectives which (unlike your startup’s business model) carry the force of law.

Snapshot of the regulatory and public policy ecosystem. Image via Law Office of Daniel McKenzie

Although the canonical “ask forgiveness and not permission” approach taken by Airbnb and Uber circa 2009 might lead founders to conclude it is strategically acceptable to “move fast and break things” (including the law), don’t lose sight of the resulting lawsuits and enforcement actions. If you look closely at Airbnb and Uber today, each have devoted immense resources to building regulatory and policy teams, lobbying, public relations, defending lawsuits, while increasingly looking to work within the law rather than outside it – not to mention, in the case of Uber, a change in leadership as well.

Indeed, more recently, examples of founders and startups running into serious regulatory issues are commonplace: whether in healthcare, where CEO/Co-founder Conrad Parker was forced to resign from Zenefits and later fined approximately $500K; in the securities registration arena, where cryptocurrency startups Airfox and Paragon have each been fined $250K and further could be required to return to investors the millions raised through their respective ICOs; in the social media and privacy realm, where TikTok was recently fined $5.7 million for violating COPPA, or in the antitrust context, where tech giant Google is facing billions in fines from the EU.

Suffice it to say, regulation is not a low-stakes table game. In 2017 alone, according to Duff and Phelps, US financial regulators levied $24.4 billion in penalties against companies and another $621.3 million against individuals. Particularly in today’s highly competitive business landscape, even if your startup can financially absorb the fines for non-compliance, the additional stress and distraction for your team may still inflict serious injury, if not an outright death-blow.

The best way to avoid regulatory setbacks is to first understand relevant regulations and work to develop compliant policies and business practices from the beginning. This article represents a step in that direction, the fifth and final installment in Extra Crunch’s exclusive “Startup Law A to Z” series, following previous articles on corporate matters, intellectual property (IP), customer contracts and employment law.

Given the breadth of activities subject to regulation, however, and the many corresponding regulations across federal, state, and municipal levels, no analysis of any particular regulatory framework would be sufficiently complete here. Instead, the purpose of this article is to provide founders a 30,000-foot view across several dozen applicable laws in key regulatory areas, providing a “lay of the land” such that with some additional navigation and guidance, an optimal course may be charted.

The regulatory areas highlighted here include: (a) Taxes; (b) Securities; (c) Employment; (d) Privacy; (e) Antitrust; (f) Advertising, Commerce and Telecommunications; (g) Intellectual Property; (h) Financial Services and Insurance; and finally (i) Transportation, Health and Safety.

Of course, some regulations may touch on multiple regulatory areas, for example, the “Fair Credit Reporting Act” is a law ultimately about privacy, but it impacts many financial and employment-related services as well. Certain laws may therefore be cross-listed in more than one regulatory area. Also, since we can’t look at every U.S. state and city, this article will focus primarily on the federal and California state laws.

After you focus on the particular regulatory areas that may implicate your business, next reference the short quotations and links to relevant primary and secondary sources below, then work to identify the specific compliance risks you face. This is where other Extra Crunch resources can help. For example, the Verified Experts of Extra Crunch include some of the most experienced and skilled startup lawyers in practice today. Use these profiles to identify attorneys who are focused on serving companies at your particular stage and then seek out any further guidance you need to address the regulatory matters pertinent to your startup.

With that as context, the Startup Law A to Z – Regulatory Compliance checklist is below:


Taxes

Securities

Employment

Privacy

Antitrust

Advertising, Commerce and Telecommunications

Intellectual Property

Financial Services and Insurance

Transportation, Health & Safety

Before diving into further detail, it may be helpful for some readers to note the distinction between a law and a regulation. Simply put, regulations provide more detailed direction on how certain laws should be followed. So regulations are not technically laws, but they carry the force of law (including penalties for violation), since they are adopted by governmental agencies under authority granted by statute. Beyond that, understanding how laws and regulations are actually enacted is helpful to illustrate the extent to which the process is politically driven.

In the U.S., a bill must first pass both legislative branches of government, then, if signed by the executive branch, it will be codified in statute as law (Schoolhouse Rock anyone?). Once codified, the legislative branch will authorize the relevant executive department or agency to determine whether specific regulations are necessary to give the law effect. If so, those executive departments or agencies will determine what further rules are needed, and in turn, work to enforce them.

At the federal level, for example, proposed regulations are developed first through a “Notice of Proposed Rulemaking,” listed in the Federal Register and filed in the corresponding executive agency’s official docket (available at Regulations.gov). This affords the public an opportunity to comment on the regulations. After receiving comments, the filing agency may revise the proposed regulation before final rules are issued, which again will be published in the Federal Register and then filed in the agency’s official docket at Regulations.gov, before they are codified in the Code of Federal Regulations (CFR).

At nearly every step in this process then, institutions, government, and interest groups are working – sometimes at cross purposes – to shape what the law will be and how it will impact your startup.

The Startup Law A to Z – Regulatory Compliance reference guide is below:


A. TAXES

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How to make sure that your product is accessible to all users

Beth Franssen
Contributor

Beth Franssen is an expert in digital accessibility, WCAG and Section 508 compliance. She helps fintech, retail and payment companies implement digital accessibility strategies for Nexient, a leading provider of 100% US-based Agile software product development.

Every founder wants an eye-catching website or app, but it’s easy to overlook a basic fact: not all your potential visitors will experience your content with their eyes. If you haven’t considered whether a user with differing visual, motor or hearing abilities can easily navigate your software, it’s time to get serious about digital accessibility.

As tempting as it might be to prioritize a stunning visual and mobile experience over an accessible design, accessibility is a legal requirement—not an option—for many businesses.

Just ask high-profile founder Beyoncé Knowles. In January, Beyoncé’s Parkwood Entertainment was hit with a class-action lawsuit that includes “all legally blind individuals in the United States who have attempted to access Beyonce.com.” The lawsuit claims that the site’s lack of visual alternatives make the site inaccessible to blind users like the plaintiff and therefore illegal.

Failing to accommodate people with disabilities not only limits your market (blind people buy concert tickets and merchandise too), it can also bring legal and reputational consequences.

The Americans with Disabilities Act (ADA) requires US businesses that serve the public to provide equal access and accommodations to everyone, whether through a physical building or a digital experience. Just as stores provide ramps as well as stairs, websites need to accommodate people with varying abilities, from movement disorders to visual and auditory impairments. The number of website accessibility lawsuits raised against private companies more than doubled last year. A single plaintiff won $100K in a similar ADA lawsuit in 2017.

While ADA is the enforcing legislation in the United States for the private sector, the Web Content Accessibility Guidelines (WCAG) provide de facto global standards web designers should follow. The guidelines are based on four principles: content must be perceivable, operable, understandable and robust.

If you’re not sure whether your digital content (websites, apps, e-books, etc) is WCAG-compliant, have a certified accessibility consultant conduct an assessment immediately, and contact your legal team should you identify any risks.

However, simple compliance is only the first step. Understanding how accessibility is defined will broaden your understanding of the overall user experience, so you can create better content for all users.

This article is part of Extra Crunch’s exclusive “Startup Law A to Z” series, following previous articles on employment law, customer contracts, intellectual property (IP) and corporate matters. This series is designed to provide founders the information needed to assess legal risks in the areas common to most startups.

Should you identify legal risks facing your startup after reading this or other articles in the series, Extra Crunch resources can help. You can reach out to the Verified Experts of Extra Crunch, who focus on serving companies at your stage, for further guidance in the particular issues at hand.

The Web Content Accessibility Checklist:

  • Perceivable
    • Time-based media
    • Text alternatives
    • Adaptable
    • Distinguishable (Use of color)
  • Operable
    • Keyboard accessible
    • Navigable
    • Input modalities
    • Enough time
    • Seizures and physical reactions
  • Understandable
    • Readable
    • Predictable
    • Input assistance
  • Robust
    • Compatible for various assistive technologies (Links can be programmatically determined)

Perceivable

A website must present content so that users of different abilities can perceive it. That means providing alternatives for any non-text content, like images or music.

For time-based media (audio and video), captions, content descriptions and sign language are acceptable options. 

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Pre- and Post-Money SAFEs: Choosing the right one for your startup

Jared Verzello
Contributor

Jared Verzello is a startup and venture capital lawyer and GM of Atrium Seed where he guides companies through formation, fundraising, hiring, and managing board meetings.

With Y Combinator’s Demo Day taking place at Pier 48 in San Francisco next week, its largest batch of companies ever is getting ready to present to an audience of select investors. Having taken Atrium through Demo Day myself, I have first-hand knowledge of the process. When the founders have finished their pitches, the time to talk numbers will closely follow. Chief among the many decisions founders will face during this time is whether to opt for the Pre-Money SAFE or the new Post-Money SAFE, the two standardized legal documents that YC has introduced in recent years.

Both versions are meant to make the process fast, easy and fair for both parties in the early-stage fundraising process. But there are crucial differences between the two that founders should examine carefully.

Essentially, the Pre-Money SAFE is exceptionally favorable to founders because it gets them pre-valuation funding like a convertible note, but debt-free. The Post-Money SAFE sweetens some of the terms for investors, like locking in their percentage ownership in a priced round later on.

Overall, we expect the Post-Money version to become more common, especially if the company is raising a round above $1 million or $2 million, and the investors have more leverage to ask for it in the negotiation.

(Note: This article is aimed at giving founders a general understanding of the changes from Pre-Money SAFEs to Post-Money SAFEs. The information provided is based on my professional experience and opinions, and should not be used without careful consideration and advice by qualified advisors and legal counsel. Also, to learn more and ask questions about Pre and Post-Money SAFEs, join me on April 16th for a webinar where I’ll dive in a bit deeper.)

Two structures for raising startup investment

Today there are two general ways of structuring a startup fundraising round. The first can be called a “priced equity round,” and is characterized by the sale of preferred stock with a fixed valuation.

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