DCFs and early stage investing

May 20, 2014 / 0 comments

Answer by Shyam Kamadolli: I am paraphrasing my own answer to another question:  Early stage investing is rarely based on fundamentals and more on willing buyer/seller dynamics and the buyers view of long term growth opportunities and/or returns. Traditional valuation methods (comparable transactions, discounted cash flows, and LBO simulations) don't work for early stage companies…

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Zomato: focus on core

May 20, 2014 / 0 comments

Testing Answer by Shyam Kamadolli: I'm not privy to their strategy and hence cannot comment about specifics. But I am guessing the key stakeholders there have asked them to focus and do one thing really well across more markets.  Because:1) they could lose their way if diversifying across both services and geographies.  They are now…

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Finding the right VC

May 20, 2014 / 0 comments

Answer by Shyam Kamadolli: In my experience there are three kinds of startup businesses: those that are not viable businesses for any VC investor, those that are not viable investments for a particular set of investors, and those that are doing so well that VCs are beating down their doors to give them money. I…

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Everything is negotiable

May 20, 2014 / 0 comments

Answer by Shyam Kamadolli: Everything is up for negotiation – it depends on the leverage you have.  Every good VC knows it when he sees a good deal and will under the right circumstances be open to a conversation.   It is all about how desirable your deal is :-)   In any case, there may be…

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PME: VC/PE Fund Performance Metrics – Part II

February 11, 2014 / 0 comments

In my previous post we examined the need for a new way to measure VC fund performance relative to a public market index : PME return calculation. Comparing Apples to Apples Now that the LP has a means to compare a fund manager’s performance relative to a public index, he/she can also use the same…

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PME: Primer on VC/PE Fund Performance Metrics – Part I

February 10, 2014 / 0 comments

The rhetoric from institutional investors in VC/PE funds about the lack of performance from most of their investments has been growing over the past few years. Some amount of self-flagellation on the part of the so called Limited Partners (or “LPs” – institutions that invest in VC and PE funds) is well deserved.  A particularly…

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Diplomatic Impunity

January 9, 2014 / 0 comments

Much has been made of a diplomatic row that has erupted between India and the USA, which ostensibly began with an unusually invasive search and arrest of an Indian diplomat in New York, followed by an escalating tit-for-tat response from each side (more details here). This morning India went on to order the suspension of…

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Twitter timeline views are fuzzy math

October 5, 2013 / 0 comments

I finally got around to reading the most anticipated S-1 filing in a while: Twitter, soon to trade as TWTR. There is some pretty good analysis of Twitter’s growth prospects around the web but I particularly like the math at Quartz that attempts to compute the average revenue per user for Twitter ($0.55, which does…

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Evaluating startup job offers versus BigCo dollars

August 26, 2013 / 0 comments

[This post first appeared as a guest column on John's Jobs, a resource for startup careers that I recommend following] Evaluating startup job offers is challenging and all the more so for first time job-seekers or those looking to transition into startups from larger corporations. A few years ago I spoke on this topic at…

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What Foreign Investors Want to Hear From India

April 17, 2013 / 1 comment

This morning my most recent post went live on the India Ink section of the New York Times online.  It urges India’s finance minister to address the risks that are keeping foreign investors away from India. Read more at:   http://nyti.ms/11g7g9T