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Transfin. Podcast E33: Hot Money, Self Fulfilling, Niche Credit

Professor of Financial Economics and Part-time Value Investor, Transfin.
May 21, 2019 8:01 AM 2 min read



The cliffhanger unveils!!!! Too dramatic? So what's the long and short of it?


For starters, our Podcast party just got bigger. All thanks to our very first guest for this Season. It was a real pleasure to chat with Mr. Anuj Dayal, a perpetual finance buff, former structured credit (Deutsche Bank, Och-Ziff - London) slash private equity professional (HPS - London), and all in all a great person to banter finance with.

The Agenda: 

How Hot Private Capital Can Skew Business Models (hint: Uber's IPO)


As per a recent story by The Economist, tech unicorns in the US are increasingly following the strategy of Bliztscaling. While Amazon, which is considered the pioneer of Bliztscaling spent close to $3bn between 1995 and 2002, ride-hailing giant Uber spent about $4bn only in one year, last year - in a cash burn discounts, cash back strategy. 


Uber recently IPO-ed with a valuation of $90m, well below the $100bn that it had forecasted to some of its investors last month. To add to this, as per Uber's S1 Filings, the platform remains unsure of turning profitable in the near future.


Profitability, which was once the underlying core of business seems to have been largely ignored in the chase of scaling up. 


We discuss if Uber is setting a dangerous template? How does this flow into the Indian startup ecosystem which doesn't really have any profitable unicorns. 


Finance and its Love-Hate Relationship with "I Told You So!"


With lower barriers to entry facilitated by easy access to technology and VC funding, the cost of starting a business has seemingly gone down. 


"Not-so-right" decisions or lack of funds is a part of the journey of a successful entrepreneur. What else is a part of that occasional bumpy path to profit...? Having to endure hearing "I told you so".


The Oft Misunderstood Dynamics of Lending Money


Lending is inherently easy, or is understood to be so. We elaborate on the often misunderstood dynamics of lending money.


Bonus: Anuj definitely made these proceedings livelier and more unpredictable than usual, setting a nice bar for the future :)


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