Here is an interesting video on Value unlocking –

 

The sheet discussed in video can be found here

Main job of an entrepreneur is to do value unlocking. And when we talk about value unlocking, its not percentage points that we typically talk while doing investments but giving multi-fold returns. 100 times 1000 times are not surprising numbers and there are ample case studies who have successfully done that. LEt it be Infosys, D-mart, Eicher motors. Or Facebook, Google, Whats App….

angle Investors

Angle investors are those who invest in initial part of your business and mostly because of personal connect and trust they have in you. They provide small sum of money that may be good for starting the business.

Series A – VC the Venture Capitalist

VCs are usually investing one to a few million USD (5-50CR) of money and are ready to take little risks to invest in first few years of business. They have their own evaluation based on fundamental analysis and have investment horizon of 5-10 years.

Series B/C – PE the Private equity

The PE funds are professionally managed houses with large amounts of cash. They invest 100CR to about 1000CR in few cases. They only invest in well established organisations with good track record. Their main aim is to infuse capital to accelerate growth of already successful enterprise. And then push it to do IPO which is when they want to exit.

IPO

Most important reason for going public is to have your company value be evaluated in true open market. There are more reasons for a company to go IPO like build a brand recall, get more customers, get large sums of investments etc.

The detailed approach and plan in IPO is discussed in the training course. If not already  a student, we recommend you to enroll here.