Many business leaders raise capital the wrong way. I am sorry to say that I know this from personal experience as a LinkedIn member. Over the last several months, I have received perhaps a dozen requests for capital or introductions to capital providers from founders who I have no doubt are in desperate need for money. While hardly a comprehensive survey of capital raising approaches, the mistakes I saw in these pitches for money strike me as common and avoidable. Before getting into these mistakes and my recommended fixes, business leaders ought to recognize one basic truth--you should match the source of capital with the stage in your company's growth . As I described in my book, Scaling Your Startup , if you are still trying to win your first customers, you should rely on sweat equity or funds from friends and family. Only after your first customers are enthusiastic about your product should you seek capital from others, such as angel investors. Based on … [Read more...] about 3 Killer Mistakes to Avoid In Your Investor Pitch
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Glove stocks’ sharp price fall: Analysts say valuations appear attractive but ‘wait for more clarity’
- A + A KUALA LUMPUR (June 24): Public Investment Bank Bhd said on Friday rubber glove manufacturers' valuations appear attractive following the sharp fall in their share prices as the global Covid-19 situation appears to have come under control as countries reopen their international borders. However, Public Investment research team's key message to investors is "wait for more clarity" from the Malaysian rubber glove sector, which is closely watched as a beneficiary of the Covid-19 outbreak which started in early 2020, as demand for rubber gloves, seen as a crucial piece of personal protective equipment, jumped to curb the global spread of Covid-19. Covid-19-driven demand for gloves is however now seen normalising as global vaccination progress leads to anticipation that the Covid-19 outbreak can be curbed. Such sentiment is already reflected in share prices of major glove manufacturers — Top Glove Corp Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan … [Read more...] about Glove stocks’ sharp price fall: Analysts say valuations appear attractive but ‘wait for more clarity’
Seven Critical Technical Due Diligence Questions For Technology Investors
Share to Twitter Share to Linkedin CTO and Technical Due Diligence Practice Lead at Silicon Valley Software Group . In the excitement of having signed a term sheet, investors may be tempted to consider technical due diligence (tech DD) as a formality to assuage their colleagues and limited partners. Tech DD, however, should be considered more than a defensive tool to avoid embarrassment and the loss of the money invested. Tech DD, when performed correctly, can limit risk and ultimately increase an investment's return by laying out the technology milestones critical to the success of the business. With proper tech DD, investors gain agency, and thus peace of mind, in shepherding a company's growth. While situations such as Theranos or WeWork are extreme, my organization has encountered "unexpected" situations in the course of tech DD projects, such as: • A company running tens of thousands of users on the Ruby-on-Rails code that it … [Read more...] about Seven Critical Technical Due Diligence Questions For Technology Investors
MC Exclusive | RBL Bank investors likely to approve new CEO, seek board nominee: Sources
Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × The surprise appointment of R Subramaniakumar as the managing director and chief executive officer of RBL Bank earlier this month left investors of the private bank flummoxed and the stock subsequently fell over 20 percent. The bank’s key investors are likely to approve the appointment, which was approved by the Reserve Bank of India, in the interests of stabilising the private lender, people familiar with the matter said. The investors are also said to be seeking a presence on the bank’s board. While rejection of a bank MD and CEO approved by the regulator is rare and could lead to a management crisis, there has been at least one such instance in the recent past. Shareholders of Thrissur-based Dhanlaxmi Bank ousted MD and CEO Sunil Gurbaxani at its annual general meeting on September … [Read more...] about MC Exclusive | RBL Bank investors likely to approve new CEO, seek board nominee: Sources
RBL Bank hits all-time low: Why leadership transition unnerved investors?
The bank’s shares started trading at Rs 102.25 on Monday, hitting an intra-day low of Rs 85.20, before ending at Rs 87.60 on the NSE. Shares of RBL Bank fell nearly 23% on the National Stock Exchange (NSE) on Monday (June 13), the first day of trading since the private bank declared on Saturday that R. Subramaniakumar will take over as the new bank chief for a period of three years. The bank’s shares started trading at Rs 102.25 on Monday, hitting an intra-day low of Rs 85.20, before ending at Rs 87.60 on the NSE. A management transition from RBL Bank was expected by the markets, but R. Subramaniakumar’s appointment at the bank made investors worried over the possibility of a repeat of the YES Bank-like episode at RBL, a senior banking analyst said. “Mr Subramaniakumar is an ex-PSU banker and historically such appointments at financial institutions have been associated with weak asset quality and/or governance structure,” wrote analysts at foreign brokerage CLSA. … [Read more...] about RBL Bank hits all-time low: Why leadership transition unnerved investors?
Chart of the Day: Rising yields may find it hard to yank locals from equities
Rising bond yields attract investors away from equities, a key concern currently as Indian equity indices rely on the support of domestic investors in the wake of incessant exits by foreign investors. But, as the above chart indicates, the correlation between equity market outflows and debt inflows at higher bond yields is tenuous. In a deep dive on flows since 2000, analysts at BofA Securities found that at bond yield as high as nine percent and above, the ratio of equity outflows and debt inflows is below 30 percent. In other words, only 23-29 percent of monthly instances of simultaneous equity outflows and inflows into bonds are found at that yield level. This is a relief for India’s equity markets in some ways. Sure, rising bond yields may lure flows away from the stock market but the damage won’t be intense. BofA therefore sees domestic equity inflows sustaining comfortably, at least until the first quarter of calendar year 2023 on the assumption that the 10-year … [Read more...] about Chart of the Day: Rising yields may find it hard to yank locals from equities
The criminal fraud case of Elizabeth Holmes’ former second-in-command heads to jury
(CNN Business) The criminal fraud trial of Elizabeth Holmes' ex-boyfriend and former second-in-command at Theranos is heading to the jury, roughly three months after it kicked off in the same San Jose, California, courthouse where she was found guilty on four charges of defrauding investors. In closing arguments, which began Tuesday and spanned nearly four days, the prosecution sought to highlight the many ways in which it alleges former Theranos COO and president Ramesh "Sunny" Balwani directly helped defraud investors and patients alongside Holmes over the course of several years. Prosecutors pointed to various emails, text messages and witness testimony reviewed during the trial that highlighted Balwani's integral roles at the company and his intimate knowledge of the startup's failings. The defense, meanwhile, argued the government had cherry-picked information and lacked sufficient evidence to prove its case. It ticked off the many high-profile people who, like Balwani, … [Read more...] about The criminal fraud case of Elizabeth Holmes’ former second-in-command heads to jury
Layoffs, restructuring, slowdown: India’s edtech firms are struggling post-pandemic
When the government announced a vaccination programme for 12-14-year olds earlier this year, Neeta Singh (name changed), an educator at one of India’s biggest edtech unicorns, was excited as she thought she would be back in the classroom after almost two years. Singh said she was very keen to get back to her previous employer, a tutoring company, despite the lower compensation as she wanted to get out of the ‘extremely toxic’ culture at the edtech unicorn she had worked at for almost 15 months. “I am a single mother of two and I cannot stop working as both my kids are still in school. The local tuition centre I was working at had asked us to look for different jobs in March 2020, when the government announced the first lockdown,” said Singh. “Back then e-learning platforms were offering huge packages so I accepted it. I thought working from home would be better as I would be able to manage things better. But my incentives and job security were linked to the number of classes, … [Read more...] about Layoffs, restructuring, slowdown: India’s edtech firms are struggling post-pandemic
As 85% stocks from BSE 500 trade below 200-day average, experts advise caution
With the storm raging in the Indian equity space through the past six to nine months, the benchmark indices have gone into a tailspin. The market is singed by an unabated flight of capital by foreign portfolio investors, economic challenges, and geopolitical uncertainties. The benchmarks are trailing more than 16 percent from their all-time highs scaled in October 2021. The 30-share BSE Sensex has lost close to 16 percent from its peak while the widely tracked Nifty 50 has tumbled nearly 18 percent from its all-time high. So far in 2022, the Nifty 500 index lost 12 percent, while the BSE Sensex and Nifty 50 have declined nearly 10 percent each. The kind of beating suffered by stocks across sectors can be gauged from the fact that more than 85 percent of them from the universe of BSE 500, which is a collection of biggest companies in the country, are trading well below their 200-day moving average (DMA). Now what is this 200 DMA and what does it indicate? Close … [Read more...] about As 85% stocks from BSE 500 trade below 200-day average, experts advise caution
Investing in Wine With the NBA’s Elite Players
It's reality check time and we are opening the holiday-shortened trading week in a bear market in the S&P 500 after U.S. stocks had their worst week last week since March of 2020. The Federal Reserve hiked the federal funds rate by three quarters of a percent last week as it tries to cool inflation. I know, I said that would be "out of character" and "off script" on last week's podcast . So, you know the situation is pretty serious, and the Federal Reserve does not have inflation under control. No central bank does, for that matter. It's going to take aggressive interest rate hikes to get to what the Fed calls a normal rate environment (3.4%), which means we may very well see another 75 basis point hike at the Fed's next meeting in July. While that 3.4% may be normal, if you look at the last 50 years, it is not normal when you look at the past decade, which has been characterized by accommodative monetary policy via low interest rates and low inflation well under 2%. This is new … [Read more...] about Investing in Wine With the NBA’s Elite Players