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What makes a valuable company?

Great article on what creates a valuable company – while the article is rooted in a discussion around “revenue multiples”, the key characteristics it outlines seem generally true for valuable companies. Summary: 1. Sustainable competitive advantage 2. Network effects 3. Revenue visibility 4. Customer lock-in 5. Gross Margins 6. Marginal profitability/ Profit scalability 7. Customer […]

McKinsey report – Impact of Internet

McKinsey has come out with an interesting report on impact of internet on GDP of countries. As per this, Internet contributes to 3.4% of GDP in these countries, and 21% of GDP growth in mature countries. For India, the numbers are 3.2% and 5% respectively. Policy makers – get it right! Internet matters: The Net’s […]

Quigley Report – Predicting a Venture Capital Revival

An interesting report predicting that venture capital asset class will make a strong revival over next 10 years. Key reasons: public markets are finally rewarding value like never before (interesting information on IPO valuations and multiples of some iconic tech companies), the demand-supply equation within venture asset class has swung to being favorable with only […]

Canaan partners in “Pioneering Spirit”

Canaan is pleased to partner with Lufthansa in bringing the next edition of “Pioneering Spirit” – a unique television series around entrepreneurship. Apart from our involvement in the selection process, we will be extending a stay for winners at our offices, in order to have close range brainstorming on their business. We will also sponsor […]

Late stage investments from US VC firms

Interesting article around growing appetite from US VC firms in late stage companies, at valuations that seem rocket high, but who knows! The dynamics of the shift are interesting – from some firms that missed the early bus, to others that are building a strategy around mixed stage investments. Will Indian ecommerce segment see a […]