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                                     INVESTMENT PHILOSOPHY -- MORE DETAILS

 

MORE DETAILS ON >>> "We are generally not in a great hurry to monetize our investments."

 

 

 

First a point that is obvious but might be a bit controversial with some audiences:-

 

Technology has no inherent value "per se"; its value is driven purely by its commercialization potential. 

 

Extracting optimal technology valuations thus requires patience, planning (and a little luck too!!). It is in this context that our willingness to wait before monetizing our investments in technology startups delivers several advantages :-

 

 

(+ + +)  Achieving enhanced valuations -- thus benefiting us as well as the entrepreneur. 

 

This benefit accrues, for example, through the increase in enterprise valuations upon attaining proof of techno-commercial viability. One model that describes this phenomenon in qualitative terms is what we term the "valuation time-effect" model. This model attempts to describe how enterprise valuations change as the time remaining till market-launch reduces. It can thus be a potentially valuable input in determining the optimal monetization time period for a new-technology driven enterprise.

 

Readers interested in more details can click here >>> Model Description

 

 

(+ + +)  Considerable operational flexibility to the entrepreneur.

 

A longer monetization time horizon means that the entrepreneur can concentrate on getting the execution right without worrying about externally imposed and/or artificially stringent market rollout deadlines etc.

 

 

(+ + +)  Facilitating long-term strategic planning.

 

The earlier point related to flexibility in day-to-day operations. There is another, equally obvious advantage -- in the absence of a quick monetization time pressure, the entrepreneur enjoys the luxury of a long-term strategic planning horizon.

 

 

 

 

 

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