Entries Tagged as 'Finance'

January 15, 2008

When to Raise VC

Great insights from one of the guys behind meebo.com.
Folks are fond of saying that VCs have so much money they need to invest that they’re just giving money away. This really isn’t what’s going on. It’s true that VCs have pretty sizable amounts of cash to invest in promising startups, but the result is that [...]

May 10, 2007

Analysing a Firm’s Financial Performance

With all the numbers displayed on a profit-oriented firm’s financial statements, everything boils down to one figure: the ROE. The ROE or Return on Equity is a ratio that measures a firm’s ability to generate net income for every peso of capital put in by investors. The ROE is computed as follows:

Net income, as some [...]

December 28, 2006

Hedge Funds: Alternative to VCs

Spotted at cnn.com:
“Growing companies could be tapping into a new source of capital in 2007: Hedge funds are getting into the private-equity business. And although some are investing in large venture capital or similar institutional funds, other managers are hitting the VC breakfast circuit in search of direct investments.”
“So far, hedge-fund managers behave less like [...]

December 23, 2006

Inventory Management

Here are some slides from a talk on Inventory Management I did earlier this year.

December 19, 2006

Efficiency of Capital Markets

The theory is based on the efficient market hypothesis (EMH), formulated by Eugene Fama in 1970 which states that all pertinent information regarding the stock market or a specific stock is readily available to everyone. Advocates of this theory believe that investors cannot outperform the market and that stock prices change randomly and independently of [...]