The Law Office of Lynnette Ariathurai A Professional Corporation

Investors look to business startup companies in technology sector

The information and technology industry has recently been a popular sector for venture capital investors. These investors have recognized that the computing technology has had and will continue to have significant influence in just about every business sector. One of the most impacted sectors is the online shopping market, which has been revolutionized by technological advancements. Investors who recognize this have recently provided venture capital to Gigwalk, a business startup located in California.

The recent Series B funding round resulted in the company garnering $10 million in investment capital. The technology company provides a software platform service, which offers clients real-time data regarding an online store's products and promotions. Currently the company has approximately 500,000 independent contractors now working for Gigwalk. The company's clients include large corporations such as Frito Lay, 7Eleven and Microsoft.

The company plans to use this recent funding round to expand the software platform's capabilities as well as expand the company's team. Gigwalk currently employs 25 staff members and is now looking to hire a minimum of 15 new staff members. Among some of the recent investors participating in the Series B round are August Capital, SoftTech, Harrison Metal and Randstad Holdings.

However, just having a good product or service is not enough for a technology company to ensure it is able to obtain the necessary venture capital required to meet its business startup or expansion goals. When soliciting investors, a California company will need a comprehensive business plan that thoroughly assesses opportunity versus risk. Part of the risk analysis should include possible legal liabilities and actions to be taken to minimize these potential liabilities.

Source: Fox Business, Funding Roundup: Shopping-Data Startups Cash in, Gabrielle Karol, March 21, 2014

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