Category: Finance
-
How much equity and when?
When you judge a promoter on his interest in the business in terms of equity contribution brought into the business, what would you consider more sensible? A. bringing in equity capital in phases All start-ups are prone to initial setbacks but some of them can recover if further capital is pumped in to the changed…
-
Beyond the Margin: Redirecting Asia’s Capitalism
On August 24, 2011 Avantage Ventures released a report titled ‘Beyond the Margin: Redirecting Asia’s Capitalism’, the first to analyse the Asian social finance market. I had the opportunity share some of my insight thoughts with the Avantage Ventures staff during the preparation of this report. The report has, for the first time, made an attempt…
-
Who can you lend money to?
What I have assimilated in the last few months: bunch of things may be considered to decide upon who is “creditworthy”. 1.) Does the borrower have an intention to repay Whether he has a past track record of taking loans and what does that track record look like. If he doesn’t have a track record you…
-
Early stage investment in a start-up
A bunch of articles that talk about seed stage/pre-VC stage investments in startups. The debate is primarily between whether to do a convertible debt or to do a preferred equity. There are arguments both for and against each side. The basic premise: convertible debt delays the conversation on valuation to the next round. It gives…