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www.abplgroup.com - Asian Voice 25th July 2015
Dear Financial Voice Reader, I write to you a column started in Paris and finished in Rome. Throughout Europe investors are looking for the next Uber, Google. If you are looking to make angel investments into a company these are 5 essential ways to follow to find a unicorn (a billion dollar company). One: Crowdfunding Sites: These make it easy to make small investments into pre-due diligence companies. Always start small. Try invest in something you know a little about, rather than relying on their sales pitch alone. Diversify across many small investments. You will be a passive investor – such as in Crowdcube.co.uk. Likelihood of finding a unicorn: 1 in one hundred thousand. Likely average return across 10 investments: 20%pa Two: Co-investment Sites: These are really crowdfunding sites, but ones like Angel.co allow you to invest alongside established known celebraty angel investors like the backers of Twitter. So they reduce your risk. Remember you’re unlikely to get to meet the founders. So you will be a passive investor. Likelihood of finding a unicorn: 1 in ten thousand Likely average return across 10 investments: 30%pa Three: Angel Investments: Companies like Envestors allow you to meet the companies they’ve due diligence and their owners and be an active investor. Do this is you think you have something to add to the company which would then let you get your money back pretty quickly, example being through an introduction. Here you will want a company you know something about and expect to be active. The danger is you put too much money into the company. Likelihood of finding a unicorn: 1 in ten thousand Likely average return across 10 investments: 30%pa Four: Small Business Lending Sites: Here you are simply a bank. You are lending money to a company and expecting to get a return on your money. You’re money is spread across many companies to reduce your risk of default. This is a safe option. Likelihood of finding a unicorn: Zero (you don’t own the company) Likely average return across 10 investments: 1014%pa Five: Be a Limited Partner: These are investors into a venture capital or private equity fund. Minimum investments sizes are around $100,000 and you pay fees of 2% annually of the capital you give them plus 20% typically of your profits. Again you’re a passive investor because you are investing in a fund managed by experts which invests in a number of companies. Likelihood of finding a unicorn: 1 in thousand Likely average return across 10 investments: 2024%pa Key Points: The key things to ask yourself are whether you have some secret knowledge to help grow the company. If not, then you will be a passive investor spreading their money across multiple investments and reducing your risk further by investing alongside wellknown investors with a good track record. Even this is a ‘spray and pray’ approach. The good thing with all these innovations are the ability for people to rely on more than just the paltry rates they get at a bank, and given the need for alternative forms of financing, these are a great innovation and genuinely allow you to get involved in multiple businesses – potentially everyone wins.
BRICS NDB opens in China
The New Development Bank launched by the BRICS nations has started operations in China. Bank president K V Kamath attended the opening ceremony along with China's finance minister Lon Jinei and Shanghai mayor Yang Xiong. The NDB will promote the existing international financial system and explore innovations in governance models. It will receive an initial capital of USD 50 billion, with each
BRICS member contributing an equal share. The investment will later expand to USD 100 billion in the next couple of years. It was conceived as a counterbalance to western-led financial institutions like the World Bank and the IMF by providing funding for infrastructure and development projects in BRICS countries. Each nation will have an equal say in the bank’s management, regardless of GDP size, according its officials.
Hisao Tanaka quits Toshiba over accounting transgression
Toshiba Corps's CEO Hisao Tanaka and a bunch of senior officials resigned for their involvement in Japan's biggest accounting scandal in years. “I see this as the most damaging event for our brand in the company's 140 year history,” Tanaka addressed a news conference. “I don't think these problems can be overcome overnight.” He will be temporarily replaced by chairman Masashi Huromachi, who is considered best to steer the company through its
Hisao Tanaka
current unrest, until a Tanaka successor steps in. A total of eight officials resigned on Tuesday and Tanaka said that the company is now considering appointing outside directors to over half of its
board seats. Presidents of the laptops to nuclear conglomerate, Vice Chairman Norio Sasaki and adviser Atsutoshi Nishida, will also step down after the third-party report proved their part in the overstatement of profits dating back to the 2008 financial year. Report by an outside panel of accountants and lawyers said Toshiba had overstated its operating profit by 151.8 billion yen , roughly three times Toshiba's initial estimate.
It said Tanaka and Sasaki pressured business divisions to meet difficult targets and knew they were overstating profits and delaying the reporting of losses, amid a culture of not going against the wishes of superiors. Even though the former CEO did not dispute the allegations, he said, “It's not my understanding that I gave orders for improper accounting, but the reality is that such an observation has been made.”
Anil Ambani pitches Rs 5000 crore more in Pipavav project
Industrialist Anil Ambani has announced an additional investment of Rs 5,000 crore in the Pipavav shipyard project over the next few years. The ADAG (Anil Dhirubhai Ambani Group) Chairman who spoke on the company's acquisition of the Pipavav Defence Company in Gujarat, called it the company's contribution towards self reliance in the defence sector. “We will invest an additional Rs 5,000 crore over the next few years as part of our commitment towards indigenisation efforts.” “Transparent, fair procedures and processes create a favourable climate, encourage competitiveness and eventually deliver the best overall value for the country,” he said. He added that specific measures towards ease of doing business will encourage industry participation to boost the confidence of the private sector in the new 'Make in India' initiative.
“This is necessary as the Ministry of Defence is the sole domestic customer.” In the speech, he emphasised on self sustenance for flexibility to pursue the country's foreign policy objectives. Accentuating the fact that Pipavav has the largest dry dock in the country, and the second largest in the world, he said, with more than 30 lakh square feet of covered for fabrication and integration alone, it could perhaps be the largest single location defence manufacturing facility in the country.
“We are committed to making it a Global Centre of Excellence in ship building. This facility will be capable of delivering all requirements of the Indian Navy from frigates to aircraft carrier to submarines.” Stressing that ADAG will equip country's armed forces with the best technology, weapons and equipment, all Made in India, he said it's heartening to see a paradigm shift in country's approach to achieving this. “For a country with one of the longest coastlines in the
region and vast expanse of territories over the seas, self-reliance in naval capabilities is an ever-challenging imperative. Given the current geo-political environment, we have no option, but to be in the lead with a potent 'Blue Water Presence'.” Ambani said talked about his dedicated facility in Noida that works solely to develop 'Combat Management Systems' for future naval vessels. “We are working with market leaders like SAAB to offer the best solutions for our Navy,” he said. He also promoted the pooling of resources between the private and public sector, besides DRDO. “The future belongs to Public Private Partnerships (PPP). We are enthusiastic about working together, specifically with the Navy, public sector shipyards and DRDO to develop innovative solutions. The key is a combined national effort to achieve our goal.”
attend the three week festival, which runs between 13 June and 1 July 2016. “The UK India British Business Council is delighted to be IFB’s international partner for India. 2014 was a fantastic experience – generating £300 million of business – and we’re sure that 2016 will be an even
greater success!” said Rt Hon. Patricia Hewitt, chair, UK India Business Council Ian McCarthy, festival director of IFB 2016, said: “IFB is very pleased that it can rely on the respected UKIBC, which provides a vital link to the international business community in both India and Britain. Their members are exactly the sort of motivated people we want to see attending our three week festival, which covers manufacturing, environment and energy and creative and digital. “We are also delighted that UKIBC recognises the benefits we offer their large membership. But benefits don’t just start
when the festival launches; numerous benefits can be accessed by any motivated business during the coming months when they activate free membership to our Business Club. “Subscription to IFB’s Business Club opens doors for any business by offering Business Support Services, which includes advice, guidance and signposting to essential professional services such as market research, patents, banking and financial as well as international digital matching service and a comprehensive Meet the Buyer programme. This will be launched on ifb2016.com in the coming months and we expect demand to be high.”
Anil Ambani
UK’s India Business Council signs partnership to support IFB 2016
One of the UK’s most significant international business councils, United Kingdom India Business Council has signed up to a working partnership with International Festival for Business 2016 (IFB 2016) to help promote the festival and the benefits of attending to its corporate members across India and the UK. UK India British Council’s chair, Rt Hon. Patricia Hewitt, met with festival director, Ian McCarthy, to officially sign the agreement. This supports IFB 2016’s objectives to encourage UK businesses in manufacturing, environment and energy, and creative and digital sectors to