In big business league
Venture Capitalists (VCs) are called Angels.
Just like angels, they fulfill your wish (by giving you money to start your dream business!)
If someone has a business idea but no money he has 4 options
- Take loan from a bank (but banks give loans to those who prove that they don't need it!)
- Borrow
- Take partners (along with their baggage!)
- Pray for an Angel!!!
---------------------
But these Angels are not googy-goody fairies who will give you anything for nothing!
These Angels are different.
Afterall, they are businessmen and not evangelists!
And while agreeing to invest in start-up ventures with motivated but inexperienced guys, the risk to their investment is huge!
Naturally they will try to extract max from their investment.
Their philosophy is
"Show me a business idea and I will give you one dollar!
Show me the plan to work that idea, I may give you a Million Dollars!!"
These angels recognise new trends in the economy and back businesses which are poised to take maximum benefit of that emerging trend!
A 10 bucks share has a price band of 100-140 by the time an IPO comes.
Who pockets that profit from 10 to 140?
The angels!!!
Willing to shell out money if there is a good chance of windfall returns!
(a 10 to 100 to 1000 bagger will do!)
An angel VC never behaves like a trader.
A trader is happy with pocketfull or bagfull of returns.
A VC eyes at the whole godown!
A VC wants all the price appreciation
along with all the dividends of all the years
along with all the preferential rights!!
with full tax benefits!!!
================
You and me can't be an Angel VC as of now, but we can definitely be the next best thing
An investor!
No comments:
Post a Comment