Daily Learnings... • 1y
3)The Banker:-Whenever a company plans an expenditure to improve the overall business, the expenditure is called Capital Expenditure or CAPEX.CAPEX can be funded through the profits, they can approach a VC to get Series B funding. The company can also approach a bank for a loan. This loan is called Debt. 4)The Private Equity:-Company grows and now plans to expand more. The CAPEX requirement is more than 50 crores. The company has decided on Series C funding. They cannot approach a VC as they cut smaller cheques. Here private Equity typically invests large amounts. PE takes on fewer risks as compared to VCs. 5)IPO:-Initial Public Offering. Every company wants to grow more and more, and does not want to settle in for just this. The company needs more CAPEX, they can get this from earlier profits, raise series D funds from another PE, raise debt from bankers, file for an IPO, or a combination of all the above.
Daily Learnings... • 1y
The IPO market is also called as the Primary Market,and it's extremely important to understand circumstances leading to IPO,as it attracts many new first time stock investors. Why do companies go PUBLIC? The main reason for a company to go public i
See MoreFounder & CEO • 1y
What's the reason behind of OYO valuation crash? They were struggling to get approval from SEBI for IPO back in 2021, Finally got a approval but they withdrew their application and looking to raise from private investors at $2.3 Billion which was $9
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The Institute of Chartered Accountants of India • 1y
Have you read the book "Rich Dad, Poor Dad" written by "Robert Kiyosaki" . he is a genius. He admitted to having more than $1.2 billion in debt 🤯. you might have watched his yt Shorts claiming that. He views this debt as a strategic move and a par
See MoreCA Aspirant|Content ... • 13d
Daily dose of financial ratios by Anirudh Gupta Debt service coverage ratio: =Earnings available for debt services/(Interest+Installments) Where earnings available for debt services are EBITDA or EBIT based on the case. Purpose: -Yesterday,we d
See MoreProficient in Java, ... • 1y
I have a question: When entrepreneurs raise funds to start their company or to set up a business, why do they celebrate? Ultimately, this is a kind of loan. Actually, it is a loan. They should celebrate when they start earning profits from those fund
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