The Inevitability Of Doom – When Hype Overtakes Fundamentals

Last year in conversation with a business leader, and now marquee startup investor, the topic turned to investors in Mumbai missing out the startup bus. The assessment was that the bigwigs sitting in the financial capital saw the whole startup investment ecosystem as bag full of air, and now that valuations are touching the skies, they are experience a mix of regret for the decisions past, and FOMO for the opportunities now. With due respect to the gentleman in question – who I immensely respect – while I do agree…

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IPO Bandwagon Getting Bigger And Bigger; Aug Sees 23 Filings So Far

The raging IPO frenzy has set a record of sorts this month with the first 20 days of August witnessing as many as 23 filings seeking regulatory permission to launch primary share sales worth around Rs 40,000 crore while eight companies already raising over Rs 18,200 crore in the month. Several of these companies are from the startup space such as fintech, e-commerce, online travel and SaaS (software-as-a- service) segments. So far this year, over 40 new listings have raked in around Rs 70,000 crore. The depth of investor interest,…

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The IPO Delug: Gold Rush Or Fool’s Rush?

Sir Issac Newton once said , “I can calculate the movement of the stars, but not the madness of men”.  This was in 1722 on the bursting of the South Sea bubble – one of the greatest and all pervasive bubble in the  UK which engulfed aristocrats, peasants, the chancellor of the exchequer, ministers, the government, the parliament, the bank of England….. and even the King ! Newton had personally lost GBP 20,000 which in today’s terms would be $ 7 mln ! Capitalism inevitably creates speculative bubbles in some…

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