

Ask YC: Who Are the Startup Friendly Accounting Firms? - whycombo

I've heard PG say one key element of Viaweb getting acquired was that they had a top brand accounting firm which gave great credibility to their books.  He felt it contributed a lot to sealing the deal with Yahoo.<p>Does anyone know who Viaweb used or who is considered the Wilson Sonsini of startup accounting?
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bootload
_"... I've heard PG say one key element of Viaweb getting acquired was that
they had a top brand accounting firm which gave great credibility to their
books. ..."_

Where did you _'hear'_ that? Have you mixed this up with Viaweb engaging a top
_"PR"_ firm [0] to get better exposure? [1] It's still a good question though.

[0] _"... When we started our startup in 1995, the first three were our
biggest expenses. We had to pay $5000 for the Netscape Commerce Server, the
only software that then supported secure http connections. We paid $3000 for a
server with a 90 MHz processor and 32 meg of memory. And we paid a PR firm
about $30,000 to promote our launch. ..."_ ~
<http://www.paulgraham.com/vcsqueeze.html>

[1] _"... Our startup spent its entire marketing budget on PR: at a time when
we were assembling our own computers to save money, we were paying a PR firm
$16,000 a month ... Our PR firm was one of the best in the business. In 18
months, they got press hits in over 60 different publications"_ ~
<http://www.paulgraham.com/submarine.html>

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pg
We did have one of the big accounting firms (forget which) so I might have
said in a talk somewhere that this helped us seem legit.

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bootload
_"... We did have one of the big accounting firms ... I might have said in a
talk somewhere that this helped us seem legit ..."_

Thanks for the confirmation. I'd never come across the accounting angle
before. Was this later in the startup process where some recognition of
Viaweb, introduction or wads of cash like the PR firm?

No stone unturned hey. Didn't think you would have to work that hard at it :)

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skmurphy
If you are pre-funded neither PWC nor EY, who do most of the tech accounting
in Silicon Valley, will want to engage. There are a number of part-time,
interim, and "rent a CFO" firms who are more appropriate for early stage
startups.

Very early on you are better off selecting a small firm to help you with the
basics of bookkeeping and taxes until you either raise a real A round (e.g.
$4M or more) or have significant revenue. Ask your attorney for a "due
diligence" checklist: both funding and acquisition teams tend to look for the
same documents and disclosures. The more you can keep all of that straight and
documented from the beginning (e.g. purchase agreements, license agreements,
major supplier contracts, ...) the easier it is later on.

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ojbyrne
Random guess - one of the "Big Five"
<http://www.cfo.com/article.cfm/3003864?f=search>

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jyu
I was thinking the same. Although now it's the "big 4" because of the Arthur
Andersen/Enron fiasco. Viaweb had revenues and was starting to get profit when
it was acquired [<http://www.paulgraham.com/vwfaq.html>]. Perhaps the auditing
firm made the due diligence process for Yahoo faster?

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fallentimes
But the Big 4 are also notorious for very high fees. I'm guessing it's someone
who is affordable enough for a startup, but who has the clout, capacity and
expertise to help ensure a successful acquisition or IPO.

