Subject: File No. S7-06-13
From: Iris Germanica

August 17, 2013

While slow teams will die in bootstrapping period, the fast ones will die in investment period. Paradox.
A start-up is a team of people with unusually high commitment level, severely multitasking and overworking during the bootstrapping period. The motto of a start-up is You are not dead until you are dead. Start up team is used to react quickly and use every second up to the last one many critical issues are being solved in the last second due to team work overload and cash shortage. This behavior is critical for survival of a start up in early years. This behavior will make sure start ups talk about financing prior notifying the SEC and dont file up-dated offering materials at SEC because they have to spend all their time improving cash flow. Either you spend a day serving customers who feed the team, or filing some docs. As fast-reacting the team as higher its chances to make it to the 1st investment round as higher their chances to be punished by one year ban from fundraising as lower their chances for survival.