INSUBCONTINENT EXCLUSIVE:
First, a couple of quick follow-ups to our coverage of Form Ds yesterday, and then a deeper dive into the challenges SoftBank is facing with
regards to its revenue in Japan
Finally, some notes on recent articles we have read.We are experimenting with new content forms at TechCrunch
Arman.Tabatabai@techcrunch.com if you like or hate something here.Form D(isappearing)Form Ds are (usually) filed by startups to the SEC when
they take on venture capital
However, there appears to be an increasing pattern of startups foregoing the filing, which has implications for both reporters (we have less
determine the state of venture capital.A number of readers emailed us with their views on the matter
One lawyer and multi-time startup founder wrote to say that:Some additional considerations are cost: the Form D can be expensive with all of
the associated state blue sky filings, especially if you have participation from a number of angels or smaller funds.When you file a Form D,
that generally preempts any equivalent state filing
SEC.Beyond cost, one issue with filing is when the round is smaller than the ultimate intended size
say $30 million into a round, and then they are shocked to find out that the round is really intended to be $50 million when the Form D hits
Obviously, this is something that should be transparent to all parties, but I actually could see this happening more commonly at the seed
legal folks pushing for fewer filings, but also PR firms
The same PR head told me that this has been a policy for the past 18 months or so.The data is still early, but the norms for filing do seem
to be changing, and we are still doing more work on this
Reach out directly with your thoughts.Japan is going after carrier revenueKIM KYUNG-HOON/AFP/Getty ImagesNow for the big story
situation between the IPO of its Japanese mobile division and its bankers, in which SoftBank is demanding its underwriters provide a massive
stranger the story gets.Over the past few weeks, the Japanese telco market has been absolutely crushed by traders
Market leader NTT DoCoMo announced about a week ago that it would cut customer rates by 40 percent on mobile services, and warned investors
telcos are extraordinarily profitable and exist in a mature market, so why the sudden rate changeThe two-dimensional answer is that the
Japanese government has become more strident in its criticisms of the telcos, which charge some of the highest fees of any carriers in the
which currently account for around 45 percent, 31 percent and 24 percent market share, respectively
The lack of competition has led to unreasonably high bills for customers, but hefty and growing profits for the telcos.Jun Sato/WireImage
via Getty ImagesThe Japanese government, led by Prime Minister Shinzo Abe, has been trying to force prices lower
while now:In 2015 Prime Minister Shinzo Abe called for lower prices and the companies eventually responded by offering reduced-cost service
Comments by government officials about lowering prices in 2016 brought a similar response
Still, carriers said they are concerned the pressure could increase this time.This time around, the Japanese government has gotten more
As Takahashi and McCombs continued:The government has also been pushing to boost competition by making it harder for the big three to lure
new users by offering the latest phones at little or no upfront cost
Officials have also pushed to end SIM locking, a practice by which carriers lock their handsets to be used only on their network.They are
in 2019.All this is backdrop to the main stage, which is that SoftBank intends to IPO its Japanese mobile carrier division, in what could be
analysis: could NTT DoCoMo and KDDI be preemptively cutting rates at exactly the time that SoftBank needs to show good financial results and
is acutely aware of the changing landscape, yet remains full steam ahead on the IPO front
And in an already saturated market with well-resourced new entrants, generating enough new users (let alone keeping existing ones) to offset
a rate cut and maintain even a steady Average Revenue Per User (ARPU) seems like a pretty tall task.When you combine the losses other
Japanese telcos expect with the fact that SoftBank has been pretty transparent about the IPO proceeds going toward future Vision Fund
And that ultimately may fuel disinterest with this particular public float, and therefore broader challenges to both SoftBank and its Vision
Valley: Great overview and analysis from Matt Drange at The Information about the decline of white-collar prosecutions out of the United
culture and botched executions of several high-profile cases
Definitely worth a full read
signs at intersections in areas with high prostitution in order to have more reasons to stop cars
What a hack of the system
(~1900 words, but probably should be like 800)The Bus Is Still Best: Helpful analysis by notable transit pundit Jarrett Walker, discussing
the role of microtransit options like Via or Chariot in city transportation networks
bus system is much more efficient from a cost, coverage, space and equality perspective
While some of the conclusions are a bit binary, he offers an effective and revealing comparison of transportation unit economics, while also
providing a useful primer on the actual functions an effective public transport system has to service
Worth reading, even if only to serve as a clear overview of the various aspects city transit agencies have to consider in transportation and
