Ted Talk Nepal

20/01/2023

Different stages of Private Equity funding:
1. Seed financing,
2. Startup financing,
3. Early growth financing,
4. Expansion financing,
5. Replacement financing,
6. Vulture financing.

The first three stages of financing are also known as early stage financing. Seed financing, startup financing and early growth financing can be joined together to create cluster venture capital, where venture capital is a sub sample, a cluster of the broader definition of a private equity.

Nepal possesses a vast array of opportunities for startups and entrepreneurs to flourish. However, the inadequate availability of proper financing has been a significant obstacle impeding the growth of startups in the region. With the licensing of private equity firms in Nepal, entrepreneurs can now anticipate obtaining the necessary capital to bring their ideas to fruition.

We financial consultants can play a major role in helping the entrepreneurs in getting that capital boost from PE by:
1. Identifying potential private equity investors,
2. Preparing Financial projection,
3. Negotiating terms,
4. Due diligence,
5. Closing the deal.

Overall, a financial consultant can be an invaluable resource for entrepreneurs seeking funding from private equity firms, by providing expert guidance and support throughout the entire process.

11/01/2023

Hello everyone! I have recently started uploading informative videos about venture capital and private equity firms on my YouTube channel. I would love to hear your feedback on the content, as well as any comments regarding the quality of the videos. I will be gradually uploading new videos every week, starting with the basics and moving on to more complex topics. My goal is to make the information as simple and easy to understand as possible. Please check out my channel and let me know what you think! Also looking forward to any future topics you wish to learn about and would include in upcoming videos. Thank you for your support!

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08/01/2023

When preparing a startup and in the planning phase you need to put together:
1. A 5 year Profit & loss account,
2. Predict and prepare a revenue assumption like what you are selling your product or solution for, how many you will sell and when you expect to sell them,
3. Predict and prepare cost assumptions to achieve various levels of revenue predicted and identify the gross margins at various levels below the gross margin line you need to identify your fixed cost, salaries, office cost, etc.
4. EBITDA: It is the main profit line that every VC and PE will look at for identifying the profit made by your business. Earning before interest, tax, depriciation and amortization helps predict the possible cash flow that can be achieved by the business,
5. Growth assumptions: what is the organic growth assumption of the sales? Run different possible scenarios of the growth assumption to identify its impact on the cashflow and determine the working capital requirement,
6. Cash flow: Using this detail profit and loss model to create your cashflow into which you need to determine the assumption about the capital cost needed to set the business up, the on going operation investment cost you need as the business grows.

The key here is to identify the maximum negative cash position which when added to a contingency amount shows you how much capital is required to get the business up and running to a point where it is self financing known as cash break even.

Depending on the cash requirement which will help you decide how much capital you will require and further how many rounds of finance you are going to require.

29/12/2022

Are you planning on starting a new business in 2023? Does your business require the support of an angel investor?

An angel investor is an individual who provides financial support to startups or small businesses in exchange for ownership equity or convertible debt.

Angel investors are typically high net worth individuals who have a personal interest in the company and are willing to take on a higher level of risk in exchange for the potential for a higher return on investment.

Angel investing can be a good option for entrepreneurs who are looking for alternative sources of financing and are willing to give up a percentage of ownership in their company in exchange for the capital and support provided by an angel investor.

Angel investors can also provide valuable mentorship and guidance to the companies they invest in, as they often have experience in entrepreneurship and the industry in which the company operates.

Angel investors typically invest smaller amounts of capital compared to venture capital firms, and they may be more flexible in their investment terms. However, they also may have less resources and expertise to support the company's growth compared to a venture capital firm.

Angel investors can be a significant source of initial funding for your new business.
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27/12/2022

The Securities Board of Nepal (SEBON) has recently started issuing licenses to venture capital and private equity firms. This is great news for entrepreneurs who are seeking funding for their business ideas. Venture capital and private equity are forms of financing that can help companies grow and develop. If you have any further questions about venture capital and private equity, please don't hesitate to reach out for more information.

Venture capital and private equity are forms of financing that companies can use to raise money to grow and develop their businesses.

Venture capital is a type of private equity that is typically provided by professional investment firms to early-stage, high-potential, high-risk startups. Venture capital firms invest money in exchange for an ownership stake in the company, and they typically take a hands-on approach to helping the company grow and succeed.

Private equity is a type of financing that involves the purchase of a controlling interest in a privately held company. Private equity firms often invest in companies that are mature and well-established, but may be facing financial or operational challenges. Private equity firms typically seek to make changes and improvements to the company in order to increase its value and make it more attractive for a future sale or public offering.

Both venture capital and private equity can be important sources of funding for companies, but they are not suitable for every business. Companies that are seeking venture capital or private equity financing should be prepared to give up a significant amount of equity in their business, and they should be willing to work closely with their investors to achieve their growth and development goals.

21/12/2022

Starting a new business can be an exciting and challenging journey, and there are many books available that can provide guidance, inspiration, and practical advice for entrepreneurs. Here are a few books that are worth reading for new entrepreneurs:

1. "The Lean Startup" by Eric Ries:
This book provides a framework for building and growing a successful business by emphasizing the importance of testing and iterating ideas quickly.

2. "The E-Myth Revisited" by Michael E. Ge**er:
This book discusses the common pitfalls that new entrepreneurs face and provides practical strategies for avoiding them.

3. "The Art of Possibility" by Rosamund Stone Zander and Benjamin Zander:
This book offers a fresh perspective on entrepreneurship and challenges readers to think creatively and embrace new possibilities.

4. "Start with Why" by Simon Sinek:
This book teaches entrepreneurs the importance of finding their "why," or the purpose behind their business, and using it to inspire and motivate others.

5. "Good to Great" by Jim Collins:
This book explores the characteristics and practices of successful companies and provides insights into how businesses can achieve long-term growth and excellence.

6. "The Innovator's Dilemma" by Clayton M. Christensen:
This book discusses how established companies can stay ahead of disruptive technologies and new competitors by embracing innovation.

7."The Outsiders" by William N. Thorndike:
This book profiles eight successful CEOs and explores the strategies and tactics they used to achieve outsize returns for their shareholders.

21/12/2022

Here are a few movies that may be inspiring and informative for entrepreneurs:

The Social Network (2010) – This film tells the story of the creation of Facebook and the legal battles that ensued.

The Pursuit of Happyness (2006) – Based on the true story of Chris Gardner, this movie follows a struggling salesman as he tries to make a better life for himself and his son.

Steve Jobs (2015) – This biographical drama explores the life and career of the co-founder and CEO of Apple, Steve Jobs.

Joy (2015) – This film tells the story of Joy Mangano, a single mother who became a successful entrepreneur and inventor.

The Wolf of Wall Street (2013) – This black comedy based on the true story of Jordan Belfort, a New York stockbroker who ran a fraudulent securities scheme.

The Founder (2016) – This biographical drama tells the story of how Ray Kroc, a salesman, turned the fast food chain McDonald's into a global franchise.

Wall Street (1987) – This classic drama follows the story of a young stockbroker who becomes embroiled in corporate greed and corruption.

Boiler Room (2000) – This film follows the story of a college dropout who becomes a stockbroker and becomes caught up in fraudulent activity.

Moneyball (2011) – This film tells the true story of how the Oakland Athletics baseball team used data analytics to build a successful team on a limited budget.

Good Will Hunting (1997) – This drama follows the story of a young, working-class genius who becomes a successful mathematician and entrepreneur.

20/12/2022

Entrepreneurs can benefit from the "Most advanced yet acceptable" (MAYA) principle in several ways:

1. Improved decision making: By considering the trade-offs involved in choosing advanced or innovative solutions, entrepreneurs can make more informed and strategic decisions about which solutions to pursue. This can help them avoid costly mistakes or overinvestment in solutions that may not be feasible or acceptable to their target market.
2. Greater efficiency: By finding the right balance between advanced features and practical considerations, entrepreneurs can optimize their products or services for the greatest efficiency and effectiveness. This can help them stand out in the market and provide value to their customers.
3. Increased customer satisfaction: By designing products or services that strike the right balance between advanced features and practical considerations, entrepreneurs can increase customer satisfaction and loyalty. Customers are more likely to be happy with products or services that are both innovative and easy to use.
4. Enhanced sustainability and social responsibility: By applying the MAYA principle in the context of sustainability and social responsibility, entrepreneurs can balance their pursuit of advanced and innovative solutions with the values and concerns of various stakeholders. This can help them build trust and reputation, and avoid negative impacts on the environment or society.

Overall, the MAYA principle can help entrepreneurs make more informed and strategic decisions, increase efficiency and customer satisfaction, and enhance their sustainability and social responsibility efforts.

14/08/2022

One of the example of implication of MAYA(Most Advanced Yet Acceptable) principle:

When Spotify first introduced "Discover weekly" a personalized list of 30 songs delivered every monday to tens of millions of its users. The original version of Discover Weekly was supposed to include only songs that users had never listened to before. But in its first internal test at Spotify, a bug in the algorithm let through songs that users had already heard. Everyone reported it as a bug, and spotify fixed it so that every single song was totally new,

But after the bug was fixed and only new songs were included in the playlist engagement with the playlist actually fell. It turned out having a bit of familiarity bred trust, especially for first-time users. When spotify made a new playlist for users and there’s not a single thing for users to hook onto or recognize—to go, it’s completely intimidating and people don'’t engage. It turned out that the original bug was an essential feature: Discover Weekly was a more appealing product when it had even one familiar band or song. Consumers are torn between a curiosity about new things and a fear of anything too new.

09/08/2022

MAYA "Most Advanced. Yet Acceptable"

The word with which began the industrial design revolution of 20th century. The basic concept of the MAYA principle is to give consumer the most advanced design, but not more advanced than what they are able to accept.

The reason of failure of a very advanced device like Newton tablet (early personal digital assistant and the first tablet platform developed by Apple which was launched on 1993 and cancelled in 1998 as it was a financial disaster for apple) was the digital assistant product was introduced to users who were not familiar with digital personal assistant. The product was way advanced in terms of technology but just failed because it didn't complied with the MAYA principle.

In current market it is really frustrating feeling of trying to explain and sell a great design solution and not get the buy. There is a fine line between the design being too advanced or the repetition of the old where MAYA principle can be applied to strike the right balance.

- Advance the product gradually over the period of time like every smartphone company does this days. Even though they have so many advanced technology waiting to be introduced but they bring them to smartphones gradually over the period of time.

- Including familiar pattern in visual design.

- Drawing on users current skills and mindset

How many of us have been familiar to this principle? Basic fundamental principle that every entrepreneur/ business houses new or old needs to keep in mind while designing their product.