Blog Post
Tech Talk with Omar - March 2020 update
April 2, 2020
I never thought the day would come where the novelty of working at home in pajamas wore off, but it's happened!
Anyway, whilst I sit here trying to work out how to put real trousers on let’s take a look at what’s been occuring in the Tech World this month:
- Another Startup bites the dust and this time it’s a legal startup Atrium. They have been in my watchlist since September 2018 when they closed their Series B funding round. I couldn’t quite figure out how a legal startup-like Atrium could differentiate themselves from a traditional law firm if they are offering legal advice. Yes, I agree that you can build a software which can pre-populate standard legal templates by asking a user to fill in some details but when it involves legal advice provided by lawyers, things must be much harder to scale. AI can reduce some admin time, but for now it clearly can’t fully replace a human.
- Volatility continued at major stock markets due to the spread of Coronavirus and economic uncertainties. A warning from Sequoia Capital makes it clear that VCs will be taking a more cautious approach to investments until the pandemic is over.
- Exciting news for UK based proptech Startup, Goodlord, who have closed their Series B funding round of £10m with the sole aim of simplifying the rental process.
- Certainly a clever idea for Amazon to licence their cashier-less store technology to other retailers. It is a great concept and I am sure we will start to see more Startup companies applying this technology and developing the concept even further.
- Increased demand and popularity may not always mean higher profits. Both Zoom and Slack have seen increased demand since the Coronavirus outbreak and as they both offer free versions, not all new users will equate to paying customers but they definitely will increase their chances to convert these free users to paid as they become part of their tech stack.
- We can’t thank our healthcare workers for their continued sacrifice and hard work looking after patients suffering from Covid-19. There are many ways big corporations have been going above and beyond their corporate social responsibilities and Airbnb is setting a new example for others.
- There is a lot we can learn from the last recession and how that impacted funding decisions. It doesn’t mean the same pattern will follow but my personal recommendation would be to reassess your current brand proposition and see how your Startup can deal with a crisis like this in the future.
I’ve done it, trousers on! The zip goes at the back right??
In the realm of employee share schemes, understanding the tax implications is crucial for both employers and employees. One significant aspect to consider is the Section 431 election, a provision under the UK's Income Tax (Earnings and Pensions) Act 2003. This election plays a pivotal role in determining how employment-related securities, particularly restricted shares, are taxed.
In today's rapidly evolving business environment, intangible assets have become central to a company's value and growth potential. Traditional accounting standards, however, have struggled to keep pace with the diverse and complex nature of these assets. Recognising this gap, the International Accounting Standards Board (IASB) and the UK Endorsement Board (UKEB) are embarking on a comprehensive review of IAS 38: Intangible Assets, a standard that has remained largely unchanged for over 26 years.
The UK government has been generous in supporting research and development (R&D) through tax relief schemes. However, with increased scrutiny from HMRC, many businesses are seeing their claims rejected, even after initial approval.
