Talked to a friend in Venture Debt and business is booming, lending has weakened for most banks in lieu of higher interest rates which is putting pressure on their loan books.  So, it seems a lot...

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Talked to a friend in Venture Debt and business is booming, lending has weakened for most banks in lieu of higher interest rates which is putting pressure on their loan books.

So, it seems a lot of private banks are putting money in Venture Debt funds, you might see a lot of startups raising debt money.

Business is Booming 🚀

Software Developer

Business is Booming 🚀- Grapevine

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https://m.economictimes.com/tech/technology/non-chinese-lending-apps-including-payus-lazypay-kissht-blocked-on-meitys-order/articleshow/97656552.cms

How safe is it to work in a fintech when RBI/govt goes on banning spree

Software Engineer

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Seeing a lot of posts on profitability of startups and I'd like to burst some bubbles.

Debt is good for companies because debt's value decreases as inflation increases. Most successful companies of today leverage debt and managing risk, not by using cash in the bank all the time. Plus inflation and money printing has been pretty steadily growing in the last 30 years or so.

Elon is a good example, he takes loans against his assets and equity and doesn't take a salary. Saves tax and still has money to use. Most people take EMIs even if they can afford something in cash to have more flexibility with their payments plus save taxes.

Yes, it's riskier. If things go south you can lose ownership of assets. But in a global economy that mostly runs on debt with even countries being in deficit, debt is a useful tool for those who have access to it and can afford to pay it off against other assets or cash.

My startup has no debt right now but we did have debt and were unprofitable over periods when we invested more into product and growth.

It's all about balancing priorities and managing risk well.

The myth of profitability

Product Owner

Welcome to Product Managers's Private Community

I'm a Product Manager at a SaaS firm drawing in a CTC of about 18-20 LPA. I'm 22 years old. Is this the standard in the industry?

CTC Check

Product Manager

Seeing the S&P500 witness a spectacular "short" rally before popping, and then it becoming decidedly clear that even if the rate hikes were unlikely it was still going to be a long time before rates come down. Becoming much more clearer that the impact on various asset classes and securities is going to be muted for the time to be.

Unless interest rates come down, I can't possibly imagine that the VC funding will pick up again, their LPs can't put in more money unless interest rates come down. Cheap capital fuels the VC ecosystem, if capital isn't cheap then allocation in VC Funds goes down to adjust to a newly adjusted risk appetite of investors.

[Opinion] How JPow's misadventure affects me and you...

From CRED to PhonePe to all others, are you guys seeing your company making any money or  path to profitability?

Zerodha guys, please don’t talk 🙅‍♂️

Fintech guys, is your startup making money

Founder

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Which startups are in talks to raise funds?

Content Strategist

Hello everyone,

I'm Varun, the co-founder of Mesa School of Business. We’re Asia’s first startup focused business school focused on fostering the next generation of startup leaders in India.

Prior to Mesa, I was a Sr. Product Manager at Amazon in Seattle, and did my MBA from Kellogg School of Management.

I'd love to chat with you folks about my journey in building Mesa, my thoughts on higher education, 0-to-1 building, amongst other things.

Ask me anything! :)
I'll be back at 5 pm and start answering.

I'm Varun, Co-Founder at Mesa School of Business. Ask me anything!

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Companies started hiring or there's still hiring freeze?

Being an investor in equity markets, i was aware of the fact that US market will crash as the free money by fed draws back. I obviously was not able to link this up with the funding dry-ness.

I still expect a founder to be aware of these economic events. I am curious how could the management decide to go for hiring employees only to lay them off a year later. 

If you are a founder, would be happy to know the other side of the story.

What triggered layoffs ?

Let me explain in detail. 
 There are two parts to it and can be broken down basis PnL 
 1. Revenues : Sudden jump in tech( social media, e-commerce, ad tech, fintech, etc) plus supporting industries (chipmakers, laptop / device manufacturer) and the general economy with QE money  
 This impacted forecasts as most firms forecast AOPs basis historically trend (which clearly was an abberation) - this lead to higher HC estimates and rampant and quick hiring  
 Variable costs: CAC, customer support, sales incentive all spiked up as 1. Everyone was putting money (inc bidding price for key words) and 2. Huge customer inflow due to covid (edtech, e-commerce) that required support  
 Fixed costs: While office space / rents remained steady or dropped as % of revenue. This was offseted by fixed tech (software, hardware, people) costs and other costs like (legal, HR, Business, Marketing, supply chain, etc.) the talent was expensive to source plus their need was instant as you already had customer to be served  
 All of this lead to rampant hiring, inflated CTC, rosy forecasts, etc.  
 everyone had turned a blind eye to inflation implications (as for the past 30 Y no one saw a shooting inflation - hence the key decisions makers had now experience & idea about it) - till Dec’21 even FED said inflation is transatory. 
 It was the Ukraine invasion that opened people eyes. Oil went up, food prices went up, UK Europe saw an energy crisis etc 
 This made all the rosy forecast mentioned above duller as 1. Demand was expected to reduce due to higher cost of living 2. Capital became scarce as funding drired 3. Cost of capital (WACC) became expensive as hurdle rate climbed (which is rate of return for bond)  
 Management and investor panicked as they have limited partners (LP) to answer and quess who are these (big pension funds) so people’s pension money had come into startups which were not showing signs of exit for investors. 
 All in all - it is a pain we all have to bare for being exuberant in 2021-2022:

Growth Manager

The data is from Carta and mostly North American companies.

50% increase in startup closures

Consultant

Navi Technology founded by Sachin Bansal is doing mass layoffs which started on Tuesday (11 July)

Mass Layoffs at Navi Technology

Damn no wonder they are firing 
 I know some average freshers who joined at 21 base last year  
 Overpaying for average talent always results in firing in startups,is what I have observed

Data Scientist

Looking to find startups that may not have even started operations. Theses that you guys find interesting. People you know who are building. Would be helpful to know 🙏🏻

Interesting early stage teams/startups?

Investment Associate

YourStory is India’s biggest and definitive platform for startups and entrepreneurs related stories

Investors Say “India se Paisa Nikaal Lo” : Vijay Shekhar Sharma

Many companies will go bankrupt between January 2024 and June 2024 : Paytm CEO Vijay Shekhar Sharma

Distrust predictions; even economists err. Avoid armchair experts and celebrity founders' opinions.

What do you guys think is the reason behind the job market being at its lowest level since past 6-7 months ?

(P.s- i made a horrible mistake by joining a cpa outsourcing startup , I'm not been assigned any client for the past one year also they have not given me any kind of training. I'M FUCKING TRAPPED !!)

Job market

External Audit

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Are there any good YT videos, podcasts or articles which talks about how debt money or loans can make you rich if used wisely?

We are always taught that debt/loans are bad and you should avoid taking it or should just repay it as soon as possible.

Many rich people made money in the past using loan money at a lower interest rates and used that to grow their business or invested that money to generate higher returns than loan interest.

P.S - please don't recommend books.

Power of debt/loans

Why did this happen? Slice already owns an NBFC license. What does this help them achieve? 
 "to better serve their shared mission and reach more consumers who currently lack access to basic banking services"

Slice merges with North East Small Finance Bank

It helps them achieve a lot. They can take deposits, extend loans, issue cards without needing a partner and maybe start mutual funds and insurance businesses. Huge W for Slice.

Business is Booming 🚀

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