Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic analysis and gain competitive advantage via Real Option valuation and application
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct industry and strategic analysis and gain competitive advantage via Leveraged Buyouts
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct industry and strategic analysis and gain competitive advantage
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic analysis and gain competitive advantage via Real Option valuation and application
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct industry and strategic analysis and gain competitive advantage via Leveraged Buyouts
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct industry and strategic analysis and gain competitive advantage
Managing A Hedge Fund: Marketing To Investors & Raising CapitalTyra Jeffries
Start Marketing Your Hedge Fund To Investors and Raising Capital with these tips and tricks. Begin to create a sophisticated Investor Relations program today!
The valuation is an essential part of any investment, we provided basics of thinking and calculations. It was presented in our meetup group, it can be used as referenced for future study.
HireLabs Perspective: Increasing Vc Returns In Talent Assessment FirmsHireLabs Inc.
The VCs must ask themselves if they have CEOs who are capable of driving companies
as the recession bottoms.
Looking at the current slowdown in non-farm employment and the subsequent rebound strategies, HireLabs can forecast a recovery in the international labor market - lead by the US - sometime around Feb 2010 (Q1 2010).
Very few CEOs of venture-backed companies have experience of riding a company
through a recession successfully.
The questions that investors should ask there CEOs is
whether they are able to monetize on market-indicators as the recovery approaches.
Investors who are looking to capitalize on the recovery should predominantly understand the teams that are running the companies, and assess the teams’ ability to analyze and perform the market indicators....
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct corporate valuation the right way
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic M&A Valuation.
CreativeCap Advisors is a marketing and investor relations consultancy with extensive knowledge and expertise on the investment management industry. The firm works extensively with newly launched funds to more established managers in helping to solidify their market position and attract new capital. The breadth of service offerings is a testament to the firm’s 360° approach to marketing and investor relations. It is complimented by a dedicated team who are focused on bringing their clients’ business to the next level. The firm takes a holistic approach to reviewing each business and generates a cohesive strategy tailored to each specific client. Through our affiliate networks around the world, the firm excels at elevating and positioning each fund in becoming the most attractive to varying types of capital. CreativeCap Advisors at the core is a business designed to assist and integrate with investment management firms by working alongside C-level executives who are seeking to further expand their business.
Contact For More Information: Tyra Jeffries, Founder + CEO | tyra.jeffries@creativecapadvisors.com
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic analysis and apply the Game Theory in real-life setting
Managing distressed private equity and credit investmentsSteven Rosenblum
Many family offices, pensions, endowments and other investors that have historically allocated capital to private equity and credit funds (“Investors”) are increasingly investing in transactions directly. To achieve similar returns, Investors must replicate the capabilities of institutional asset managers in sourcing opportunities, structuring transactions and investment oversight. When unexpected problems occur post-investment, Investors often lack the resources and internal expertise to optimally manage the position, especially in distressed situations. These include risk management practices to help prevent investments from becoming distressed, activist expertise to manage distressed situations and strategies to recover investments after they have become impaired. This article discusses best practices in each of these areas that help Investors maximize the value of problematic investments.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
Managing A Hedge Fund: Marketing To Investors & Raising CapitalTyra Jeffries
Start Marketing Your Hedge Fund To Investors and Raising Capital with these tips and tricks. Begin to create a sophisticated Investor Relations program today!
The valuation is an essential part of any investment, we provided basics of thinking and calculations. It was presented in our meetup group, it can be used as referenced for future study.
HireLabs Perspective: Increasing Vc Returns In Talent Assessment FirmsHireLabs Inc.
The VCs must ask themselves if they have CEOs who are capable of driving companies
as the recession bottoms.
Looking at the current slowdown in non-farm employment and the subsequent rebound strategies, HireLabs can forecast a recovery in the international labor market - lead by the US - sometime around Feb 2010 (Q1 2010).
Very few CEOs of venture-backed companies have experience of riding a company
through a recession successfully.
The questions that investors should ask there CEOs is
whether they are able to monetize on market-indicators as the recovery approaches.
Investors who are looking to capitalize on the recovery should predominantly understand the teams that are running the companies, and assess the teams’ ability to analyze and perform the market indicators....
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct corporate valuation the right way
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic M&A Valuation.
CreativeCap Advisors is a marketing and investor relations consultancy with extensive knowledge and expertise on the investment management industry. The firm works extensively with newly launched funds to more established managers in helping to solidify their market position and attract new capital. The breadth of service offerings is a testament to the firm’s 360° approach to marketing and investor relations. It is complimented by a dedicated team who are focused on bringing their clients’ business to the next level. The firm takes a holistic approach to reviewing each business and generates a cohesive strategy tailored to each specific client. Through our affiliate networks around the world, the firm excels at elevating and positioning each fund in becoming the most attractive to varying types of capital. CreativeCap Advisors at the core is a business designed to assist and integrate with investment management firms by working alongside C-level executives who are seeking to further expand their business.
Contact For More Information: Tyra Jeffries, Founder + CEO | tyra.jeffries@creativecapadvisors.com
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic analysis and apply the Game Theory in real-life setting
Managing distressed private equity and credit investmentsSteven Rosenblum
Many family offices, pensions, endowments and other investors that have historically allocated capital to private equity and credit funds (“Investors”) are increasingly investing in transactions directly. To achieve similar returns, Investors must replicate the capabilities of institutional asset managers in sourcing opportunities, structuring transactions and investment oversight. When unexpected problems occur post-investment, Investors often lack the resources and internal expertise to optimally manage the position, especially in distressed situations. These include risk management practices to help prevent investments from becoming distressed, activist expertise to manage distressed situations and strategies to recover investments after they have become impaired. This article discusses best practices in each of these areas that help Investors maximize the value of problematic investments.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
Ahead of the marcus evans Elite Summit 2017 and the Private Wealth Management Summit Fall 2017, Peter Craddock discusses what investors need to look for in selecting a venture fund, and the value of an LP co-investment option
Ahead of the marcus evans Private Wealth Management Summit 2022, read here an interview with John Van Clief on the investment opportunities in the alternatives space, and what makes companies innovative and recession-resistant.
FINC 340 InvestmentsHow to Create an Investment StrategyThe .docxvoversbyobersby
FINC 340 Investments
How to Create an Investment Strategy
The creation of an Investment Policy Statement (IPS) is the most important step to take in creating a disciplined investment plan. Unfortunately, many plans fail to adjust return expectations to current market conditions. Today, large public pension plans are still forecasting return expectations at 7.5 percent.
Ultimately, if you lower return expectations; state and corporate pensions are required to make larger contributions. Furthermore, even those return expectations seem aggressive in such a low yielding market.
Currently we are in a market where the 10-year U.S. Treasury yields approximately 1.65 percent, the 10-year single A corporate composite yields approximately 2.79 percent, and the equity market has tepid expectations given weak growth prospects, low consumer and CEO (business) confidence and a great deal of uncertainty in 2013.
Thus, whether you are a large corporation forecasting pension needs or an individual planning for retirement, an IPS creates a blueprint or a framework for your investment strategy. It must be the first step taken in order to find suitable investments toward meeting stated investment objectives and should be revised at least annually and updated in response to market conditions.
A primary step in creating an IPS is understanding its overall functionality. First, every IPS consists of both objectives/goals and constraints of investors. Investment objectives must always be looked at in terms of both risk and return. Though it does not get sufficient attention, it is the basics of investing that is critical for every investor to understand.
Risk
Risk tolerance should always be assessed first in order to identify which risks investors are willing to assume. Risk tolerance is a function of an investor's psychological makeup and personal factors such as wealth, age, income and cash reserve. Lastly, risk is directly related to an investor's time horizon, the ability to assume risk and the investor's ability to recover from any temporary investment shortfalls.
Return objectives
Return objectives should always be stated in terms of how an investor will accomplish their stated goals. These return objectives include capital preservation, current income, capital appreciation, and total return. The goal of capital preservation is to prevent loss of an investment's value and produce a return at least equal to inflation, typically a goal for those who need funds in the near future.
A current income goal will have a steady stream of income from interest and dividends. This goal's primary focus is to supplement income to meet planned spending needs. Capital appreciation is the goal to find investments with the intent of having an initial investment increase over time, typically a goal for retirement or for needing the funds in the future. Lastly, total return is a combination of both current income and capital appreciation, an appropriate objective for an investor ...
How emerging managers can raise capital, hire the best people, sustain profitability and organize for tax efficiency. More here: http://gt-us.co/1qG5Xlu
This is a primer guide on angel investment clubs developed for CBEiD, Center for Business Education, Innovation and Development. The goal of this document is to educate Chicago area people of business, educational and government affluence on the benefits, methods and organizational benefits of angel investment clubs. The goal is to encourage people of wealth and influence to participate and support angel investment clubs in order to help spur entrepreneurial endeavors in the Chicago area.
This form of investment can come in the form of one very wealthy
individual or from a group of wealthy individuals, intent on investing
into a venture that has promising prospects.
Making big money with venture capitalismSwapnilMekale
Making Big Money With Venture Capitalism. Inside this eBook, you will discover the topics about venture capitalist basics, questions to ask when considering venture capital investment, the venture capital boom and the internet bubble, how to make good money the venture capital way, venture capital and its association with job creations and risks of venture capital investment schemes.
What is a business description? A business description provides an overview of what your company does and what makes it unique. It introduces your brand, offering prospective investors and other interested parties an overview of the company's objectives and scope.
Investing is to grow one's money over time. The expectation of a positive return in the form of income or price appreciation with statistical significance is the core premise of investing. The spectrum of assets in which one can invest and earn a return is a very wide one.
Similar to Risk Architecture and Financial Innovation October 2013 (20)
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...
Risk Architecture and Financial Innovation October 2013
1. Risk Architecture and Financial Innovation
High Yield Value Investing in Start-Up Enterprise
Thomas Hu 胡一天胡一天胡一天胡一天
1
October 2013
2. Table of Contents
Goal Architecture and Financial Engineering
Risk Monetization in Start-up Investing
Mezzanine Capital for Entrepreneurship
Endowment Model and Memory Financialization
Questions & Answers
2
3. Goal Architecture & Financial Engineering
“Finance is the science of goal architecture.” ~ Finance and the Good Society, Robert Schiller
3
4. Financial Technologies Provide Tools for Goal Architecture
Modern financial system is a complex web of contracts whereby participants with asymmetric
information engage in trading activities in order to maximize expected cash profit.
The emergence of Internet technologies has greatly reduced the cost of democratizing,
humanizing and expanding the reach of financial capitalism on a global scale.
Financial technology is designed to facilitate the goal of individuals, companies and societies.
It is a means to an end, not the other way around. (the Latin root for finance is finis, i.e., end)
Financial service industry should principally focus on perfecting its goal facilitation capability,
not self-serving wealth privatization by exploitive practices.
A feasible goal architecture is built on common-sense risk management system.
Finance is amoral.
Guns don’t kill; People kill.
Pervasive chronic problems in financial capitalism are usually not due to lack of control over
financial instruments, but lack of control over incentives to regulate sustainable behaviors of
financial professionals.
Unfortunately, the goals and ideals of a civil society are sometimes underserved by the self-
serving financial industry, resulting in wide-spread criticism.
Is venture capital model still relevant?
It’s less about liquidity crunch but more about expectation shortfall.
Engineering optionality and value creation via good deal design.
Start-up incubator program as an asset class for institutional investors?
We need a new definition of generalized investment yield.
Capital allocation model in broader social context?
Epidemic psychology and physiology may be more relevant than neo-classical economics.
4
5. Risk Monetization in Start-up Investing
“Entrepreneurship is a risky and heroic activity, necessary for growth or even the mere survival of the economy.”
~ Antifragile, Nassim N. Taleb
5
6. Investing in a start-up, or any firm at different development phase, requires deep research on the
risk and return profile of the underlying business process employed by the firm to generate profit.
For firms competing in the same business environment, the true valuation metrics that differentiate
them are the firm’s distribution policy and investment strategy with respect to its free cash flow.
There are only five options a firm can do with its free cash flow:
Pay cash dividends;
Repurchase outstanding shares;
Repay outstanding debts;
Mergers & acquisitions;
Reinvest in internal projects with expected return above its cost of capital.
Major challenges in start-up investing include uncertainty of cash inflow, low frequency of cash
inflow, alarming magnitude of cash outflow, unproven management capability, lack of liquidity
and expectation shortfall on exit venues.
Take a mirror image of a left-skewed probability distribution below, it is immediately obvious that
entrepreneurship in business models unfamiliar to venture capitalists is unfairly discouraged and
penalized due to lack of observed rare events of success.
The symmetry of “Black Swan.”
Due diligence for the known unknowns and unknowable unknowns.
How to manage rare event risks on fat tail?
Super Angels come to the rescue?
We need a market specifically designed for seeding start-up firms.
Focus on business development & risk management;
“Invest-and-Operate” vs. “Pump-and-Dump”
Innovation in monetizing risk factors.
Risk Monetization for Start-up Investing
6
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Unseen rare events
7. Convexity Risk Management in Start-up Value Creation
In general, successful investment involves proactive management of convexity and optionality.
Business and investment decisions should focus on contingent payoff skewed to the upside.
Admitting uncertainty and unpredictability in the evolution of X, we should focus on controlling the
exposure to favorable outcome of f(X), as a convex f(·) can have fatter tail with the right skew.
Example: risk/return profile of an portfolio of call options on X’s vs. a portfolio of X’s
Street-smart common sense is more important than economics and statistics.
Value creation in start-up investing is about fostering an environment conducive to positive convexity and
asymmetric payoff optionality that may bring about exponential growth with increasing probability.
What if you are caught in a concave situation?
7
Jensen’s Inequality: φ(E[X]) <= E[φ(X)]
8. The Illusion of Control & Rare Event Response Mechanism
The Illusion of control and uninformed optimism are pervasive in the linear world with slow and
infrequent changes, i.e., path-dependent perception.
Inverse Turkey Problem is a scalable phenomenon in the non-linear world with accelerating
frequent changes that are unpredictable and potentially unavoidable.
Informed pessimism and expected shortfall are as common in early-stage investing as in advanced
fundamental R&D.
Systematic redundancy in risk management mentality is needed to utilize scarce resources.
Is it possible to buy an insurance policy designed to mitigate such a risk?
How much would you have to pay?
8
Source: The Black Swan (N. Taleb 2007/2010)
The Inverse Turkey Problem
Change in life expectancy of
a turkey in the Thanksgiving
morning, or the expected
success rate of a start-up upon
informed pessimism?
Not seeing the cliff ahead,
a naive assessment of
historical experience may
lead you to believe that
uptrend will continue…
9. Optimal Error Margin & Pivot Duration
Margin of error is absolutely essential to investing as mistakes are inevitable in any ventures.
Time is the most precious scarce resource for a start-up enterprise. Lean Start-up philosophy is similar to
minimizing the duration required for a pivot attempt before finding a Minimum Viable Product (“MVP”).
Experience of super angels may help start-up entrepreneurs become agile, shrewd and efficient.
Proactive risk management is about common sense, business acumen and intellectual honesty.
A more rigorous approach to analyze the risk and return profile of Super Angel venture capital
investment process is a crucial step in increasing the attraction of start-up incubation program
as an investable asset class.
Is there a set of “Moneyball” formula to systematically identify, train and maximize the
winning odds of a team of entrepreneurial talents?
Would constructing a portfolio of incubators and accelerators programs be a scalable
strategy to gain diversified exposure to start-up investments? (e.g. an incubator REIT?)
Yield to MVP instead of IRR?
9
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10. Mezzanine Capital for Entrepreneurship
“We can unwind all our flaws.” ~ Mezzanine, Massive Attack (1998 album)
10
11. Deal Design for Promoting Entrepreneurship
Enterprise valuation mismatch reflects differences in opinions between entrepreneurs and investors with
regard to timing, certainty and magnitude of revenue and cash flow realization.
Investors usually heavily discount unrealized future events despite passion/dedication/capability
of a start-up entrepreneur.
Discount factor is best viewed as a dynamic negotiation process.
A successful deal design is mutually beneficiary, as venture capitalists and entrepreneurs are all part of a
symbiotic ecosystem aiming at attaining sustainable deal flows in the long run.
Most importantly, a good deal designer recognizes the real driver for an investment success is the
sustainable performance of the underlying business, and will structure a deal appropriately to
promote and protect the operating process and behaviors of business operators which create
such a success.
A good deal design acknowledges that entrepreneurs and investors need to agree to disagree on
measurable key performance metrics at each pivot milestone.
Getting the business model right is more important than getting the valuation right.
“Trust the Captain, trust the crew.”
Buying the wrong target is worse than buying an expensive target.
Each business model has different capital needs at different development stage.
Plain-vanilla investment structures such as pure equity and pure debt may not always be suitable
for a start-up during fast prototyping phase.
A more precise and flexible staged financing solution in investment structure is required.
Structuring incentives mechanism with positive convexity and embedded optionality with long duration
encourages “skin-in-the-game” behaviors. For instance, earn-outs, cumulative participation preferred
equity and RSU to drive sustainable behaviors instead of short-term gamesmanship.
Good deal design reduces dependency on “liquidity events” (e.g., IPO/trade sales) for exit.
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tD
12. Risk Profile at Various Attachment Points in Capital Structure
Capital formation for a start-up requires more precise selection of risk attachment point in capital
structure as entrepreneurs going through different phases of business development.
Operating constraints and institutional memory tend to limit pure debt/equity capital providers’ risk
appetite and ability to fine-tune risk exposure in start-up investing.
Mezzanine capital providers may fill the vacuum.
The pros & cons of using a mezzanine financing facility in start-up/growth capital investing are:
Pros: limited or no ownership dilution, flexible payoff structure, finite duration, etc…
Cons: debt or quasi-debt repayment schedule may create liquidity gap for a lean start-up .
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Senior Stretch Mezzanine Equity
Security Secured Partial Subordinated none
Ranking Senior First on Assets Second Third
Covenants Tight Tight Flexible none
Term Demand Term Term / Patient Patient
Coupon Coupon - Floating Coupon - Fixed Coupon - Fixed Dividend
Rate Prime Prime Adjusted Risk Adjusted Market Adjusted
Equity Kicker none Success Fee Warrants Shares
Prepayment
Penalties
Yes Yes Fixed Period No
Capital Providers Chartered Bank
Chartered Bank /
secondary lender
Private Capital Private Capital
Recovery % High medium Low Low
Liquidity High medium Low
Right of Sale /
Shotgun
Source: FitchRating
13. Mezzanine Capital Provides Flexibility Across Capital Structure
The basic structures used in most mezzanine financings are subordinated debt and preferred stock.
Typical contractual return profile may include the following bespoke payoff terms:
Cash interest: A periodic cash coupon as a percentage (fixed or floating rate) of the
outstanding balance of the mezzanine financing.
Payment-in-kind (“PIK”) interest: A periodic form of payment in which the interest payment is
not paid in cash but rather by increasing the principal amount of the security in the amount of
the interest
Ownership: An equity stake in the form of attached warrants or a conversion feature, similar to
that of a convertible bond.
Participation payout: An equity-like return in the form of a percentage of the company’s
performance, as measured by total sales, or EBITDA as a measure of cash flow, or profits.
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SENIOR SUBORDINATED DEBT
CONVERTIBLE SUBORDINATED DEBT
REDEEMABLE PREFERRED STOCK
EQUITY
MEZZANINEMEZZANINE
SENIOR DEBT & ASSET BACKED
(STRETCH) LENDING
Source: FitchRating
Target IRR: 15 ~ 20%
Lower risk than pure equity,
higher return than pure debt
More structural flexibility in
supporting business needs.
14. Case Study: Financing an Innovative Architecture Studio
Investment Thesis: The architecture landscape in Taiwan has seen continuous erosion in design
innovation and social context awareness. Heightened land acquisition cost and pressing needs for
urban renewal call for a new enterprise in promoting better architectural products and sustainable
design philosophy that simplifies our life and enriches our minds.
Risk Factors:
Highly sensitive to the “boom and bust” of real estate cycles.
Lack of established client base and proven customer acquisition channels.
Weak bargaining power against big property developers and inability to protect margin.
Constant needs for short-term working capital as development speed varies across projects.
Key Man Risk and insufficient scalability.
Structuring Solutions:
Focus on brand-building, project selection and ASP upgrade.
Cash burn rate control to ensure the business is well capitalized.
Build a balanced order book of interior design projects as well as large residential/commercial
construction projects .
Design project receivables financing to support working capital needs.
Revenue off-take mechanism structured as special cash dividend for seed capital de-risking.
Diversifying into industrial design and social media?
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15. Case Study: Investing in a Predictive Analytics Start-up
Investment Thesis: The exponential growth in Big Data due to mobile Internet and ubiquitous smart
devices has substantially reduced the cost of information access and retrieval. Amid rising flood of
unstructured data, business intelligence platforms must stay viable by providing relevant analytics for
making robust business judgment on predicting and inducing customer behaviors in order to create
final demand. Existing bureaucracy in large organizations is oftentimes incapable of cultivating such
a team of talents with sufficient speed and error tolerance mindset.
Risk Factor:
Too much focus on disruptive technology instead of disruptive business model that solve real-
world problems.
“University lab” mentality is not suitable to the suffocating speed in the high-tech race against
time to market.
A good hacker is not necessarily a good CEO.
Big Brothers (e.g., GOOG/AMZN/FB/QQ) are watching!
Structuring Solutions:
Covenants on maximal pivot duration and cash burn rate control.
Limitations on excess headcount expansion during pivot iteration phase.
Recruit non-technical Super Angels/advisors with entrepreneurial track records.
Staged equity/quasi-equity investment schedule based on MVP milestones.
Switchable debt/equity conversion features in structuring mezzanine facility.
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16. Case Study: Crowd-funding a Lifestyle Social Media Hub
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Investment Thesis: Increasing adoption of the social layer by web publishers has enabled social
media to become focal points in directing traffic around the Internet. Ubiquitous access to mobile
Internet via smart devices allow users to focus only on activities in their social circles and local
communities. Social media account for a increasingly larger share of audience attention span and
desynchronize consumer response to advertising cues. Advertisers can leverage on the inherent trust
in consumers’ social circles and launch targeted marketing campaign with the help of lifestyle social
media hub with sticky user traffics.
Risk Factor:
Fragmented media consumption channels provide insufficient evidence to attract advertising
budget allocation.
Dependency on “civil journalists/writers/bloggers with limited coverage density and editorial
consistency.
Political, ideological and cultural barriers may significantly curtail scalability and adverstising
revenue intake.
Lack of alternative source of cash flow via recurring pay wall subscriptions.
Structuring Solutions:
Invest in story generators and opinion leaders that can build a lifestyle brand
Proven capability in high-quality contents origination and production before investing
commitment.
Recruit independent writers and editors capable of in-depth investigative journalism with
regional perspectives.
Cross-fertilization between financial media platform, research consultancy and public
relations advisory firms to create recurring demand and promote mindshare.
Earn-out structure based on revenue/EBITDA off-take for key content contributors before
equity investors.
University endowment funds as strategic investors?
17. Endowment Model & Memory Financialization
“Money is equivalent to a primitive form of memory.” ~Journal of Economic Theory 81, 232-251, N.R. Kocherlakota
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18. Endowment Fund Investment Model Revisited
Modern portfolio theory postulates that each asset class has a measurable historical return, volatility
and correlation profile that can be optimized to construct a diversified investment portfolio with
reduced risk and enhanced return versus a broad market index.
The Five Principles of the Yale Model (David Swensen 2009):
Invest in equities, it is better to be an owner rather than a lender;
Hold a diversified portfolio, avoid market-timing and adjust allocation at extreme valuations;
Invest in illiquid private markets with incomplete information to increase long-term returns;
Use outside managers except for all but the most routine or indexed investments;
Allocate capital to investment firms owned and managed by investment professionals to
reduce conflicts of interest.
Guided by the above philosophy, Endowment Model heavily invests in equity and alternative asset
classes (e.g., hedge fund/private equity/real estate) and has generated outstanding results:
For the 10 years ending June 30th 2008, Yale Endowment produced an annual return of 16.3%
vs. 2.9% of S&P 500.
During this period the AUM of Yale endowment grew to US$23 billion from US$6.6 billion.
About 38% of Yale University’s operating budget is financed by the Yale endowment.
The Global Financial Crisis of 2008-09 dealt a heavy blow to endowment model due to hidden
leverage, systemic illiquidity and the convergence of downside correlation across asset classes.
Extreme Value Theory (“Black Swan”) is more relevant than CAPM in a fat-tailed world.
However, endowment funds continue to hold their course…
Is Venture Capital still a relevant investment strategy for university endowment funds?
Duration mismatch vs. Expectation shortfall.
Can crowd-funding finance a social endowment fund which allocates capital to start-up firms?
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19. Memory Financialization for Future Generations
The fundamental innovation of financial system since the dawn of human civilization is the
monetization of memory in various forms of transferrable credit.
Fiat currencies, stock, bonds, real estate and virtual payment gateway are all memories of
past deeds crystalized by financial technology.
Memory is the source of credit which facilitates resource transfer across time and space.
This observation has profound implication for start-up fund-raising strategy.
Capital allocation decision should not be based solely on statistical construct of reality, least of all on
bureaucratic fantasy. We need incentives systems and regulatory mechanisms that administer pains
and rewards based on memories of what happened and/or may happen in the real world.
In broader social context, an independent logic & memory network which checks and balances
collective intelligence may be the crucial component of a more adaptable investment process that
promotes “the greater good.”
Toward a new paradigm of generalized yield of investment:
High yield investing is not just about profit maximization.
From Behavioral Finance to Epidemic Psychology to Financial Physiology.
Progressive Entrepreneurial Darwinism vs. Regressive Predatory Capitalism
Institutional Trust: Lost & Found?
A shrine of entrepreneurial martyrdom?
Doing start-up should never be a social stigma. Just Do It!
Praise the failure and bury the success. 失敗為成功之母失敗為成功之母失敗為成功之母失敗為成功之母!
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“Hegel remarks somewhere that all great world-historic facts and personages appear,
so to speak, twice. He forgot to add: the first time as tragedy, the second time as farce.”
~ The Eighteenth Brumaire of Louis Bonaparte, Karl Max (1852)
20. Questions & Answers
“To be, or not to be, that is the question.” ~ Hamlet, William Shakespeare
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