Shafaque Patkari

  The Great U.S Banking Bloodbath    Source: News9plus (Image source: Pinterest) On March 8th, 2023, a significant event unfolded as the Silicon Valley Bank experienced a collapse, marking the onset of a catastrophic situation within the U.S. banking sector. For over four decades, this bank had played a pivotal role in catalyzing the startup revolution not only in the United States but also across the globe. It contributed trillions of dollars to the economy and generated billions of jobs, establishing itself as a vital support system for startups, entrepreneurs, and the entire U.S. ecosystem. The downfall of the Silicon Valley Bank, however, was not a result of the risks it had undertaken in supporting startups. Rather, it stemmed from a flawed investment decision. The bank's predicament arose from a misjudgment in investing short-term funds, obtained from investors, into 30-year U.S. Treasury bonds. Initially, this strategy might have seemed reasonable. However, when th...

Tsunami of devaluation: Source: News9plus      (Image Source: Pinterest) The current funding winter for start ups has been initiated by the inflationary pressures of 2022, causing a redirection of funds from investors into safer assets like US Treasury bonds. With rising interest rates, the capital accessible to start ups has dwindled. Notably, prominent players such as Tiger Global and SoftBank, known for previously extending generous valuations to start ups, have adopted a more cautious stance. This caution arises from the understanding that the safety net that existed in 2022 might not be present this time around. Just as the public market reacts to company performance, the private market operates similarly, though data is less accessible. Valuation hinges on the present value of projected future cash flows, with increasing emphasis on tangible profitability and sustainable cash generation. Larger enterprises are navigating the transition to maintaining growth wh...

    Assessment of Realistic Valuations for Indian Startup    Source: News9plus      (Image source: Pinterest) To understand the concept of a "shark tank," it is essential to grasp the meaning of the term "sharks ." The sharks aren't merely financial gains, angel investors, or venture capitalists. The essence of the true shark tank lies in the generation of value for both investors and customers. It embodies a fervent vision that propels founders to initiate ventures, thereby instigating value generation.  To illustrate the concept of value creation, consider the case of the "traitorous 8" in 1957. These individuals departed their positions at Shockley Transistors, giving rise to the inaugural start up, Fairchild Semiconductors. This groundbreaking enterprise introduced innovation to the industry and remains integral to the modern IT sector. Startups traverse various cycles, tailored to accommodate setbacks. Their viability hinges not solely on ex...