Comments on: Raising capital – Who gives a damn about the numbers? http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/ Business help for entrepreneurs, startups and small business owners in Australia | Business > Innovation > Technology > Entrepreneurship - Anthill Magazine: It's Where Ideas and Business Meet. Sat, 26 May 2012 06:30:00 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: How to Stress-test Your Business Case http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-18527 How to Stress-test Your Business Case Sun, 01 Nov 2009 18:02:01 +0000 http://anthillonline.com/?p=12869#comment-18527 [...] Looking at historical data and extrapolating the numbers to create future projections simply doesn’t cut it anymore. Creating a business case is still imperative for companies to plan for the future, attract [...] [...] Looking at historical data and extrapolating the numbers to create future projections simply doesn’t cut it anymore. Creating a business case is still imperative for companies to plan for the future, attract [...]

]]> By: People buy People…NOT business plans! « WordPress http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-13994 People buy People…NOT business plans! « WordPress Fri, 11 Sep 2009 13:02:36 +0000 http://anthillonline.com/?p=12869#comment-13994 [...] can also be found on Twitter, and is a contributor to Anthill Magazine with his musings on the Entrepreneurial Truth Blog..this is his recent article over at Anthill, [...] [...] can also be found on Twitter, and is a contributor to Anthill Magazine with his musings on the Entrepreneurial Truth Blog..this is his recent article over at Anthill, [...]

]]> By: David Vidos http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9972 David Vidos Wed, 15 Jul 2009 23:53:16 +0000 http://anthillonline.com/?p=12869#comment-9972 Very true Sahil, the initial aim of the game is to be creative, improve something that provides value for the customer, improve that system and over time you will improve the value for your shareholders. I believe the main benefit a VC provides when they invest is that they remove the headache of finding the next dollar to pay staff, rent, tools to improve and grow the business. This leaves the entrepreneur to focus their talent and energies on what is important, developing the offering and getting customers. After this the exit strategy can be realised whether it be, IPO, private sale, or another round of investors to allow the founder and VC to make a return. Just my thoughts. Very true Sahil, the initial aim of the game is to be creative, improve something that provides value for the customer, improve that system and over time you will improve the value for your shareholders.

I believe the main benefit a VC provides when they invest is that they remove the headache of finding the next dollar to pay staff, rent, tools to improve and grow the business. This leaves the entrepreneur to focus their talent and energies on what is important, developing the offering and getting customers.

After this the exit strategy can be realised whether it be, IPO, private sale, or another round of investors to allow the founder and VC to make a return.

Just my thoughts.

]]> By: James Tuckerman http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9922 James Tuckerman Wed, 15 Jul 2009 07:33:56 +0000 http://anthillonline.com/?p=12869#comment-9922 Some of us have experienced many sleepless nights too. ;-) Keep dazzling us Sahil. Tell it like it is! Some of us have experienced many sleepless nights too. ;-)

Keep dazzling us Sahil. Tell it like it is!

]]> By: Paul Ryan http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9911 Paul Ryan Wed, 15 Jul 2009 05:41:51 +0000 http://anthillonline.com/?p=12869#comment-9911 We journos dip our toe in now and then. We journos dip our toe in now and then.

]]> By: Scott Kilmartin http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9910 Scott Kilmartin Wed, 15 Jul 2009 05:38:00 +0000 http://anthillonline.com/?p=12869#comment-9910 I have never raised money, but have heard many war stories from those who have. I am not qualified to give an opinion on how it difficult it is or what the process is. So i'll shut up about that. Martin Hosking through his various businesses probably knows more about raising cash than anyone in this country, so i think his thoughts [above] on the matter are particularly pertinent. I congratulate Sahil for having the kahonies to tell a raw, truthful story which is unlike much of the success story fluff that is offered up in the entrepreneurial press/space. You have to give the man great credit for being brave enough to let us behind the curtain and see a side of capital raising / vc / high net worth individual - involvement that is rarely told. Remember boys and girls, life is about doing stuff. If you want to critique the actions of others... become a journo or maybe a reality TV judge. Otherwise jump in... the water's warm. I'll finish up with a line from my favourite 80's ad campaign by Reebok: Life is not a Spectator Sport... ps. Sahil, Good luck with MagNation world domination ! I have never raised money, but have heard many war stories from those who have.
I am not qualified to give an opinion on how it difficult it is or what the process is.
So i’ll shut up about that.

Martin Hosking through his various businesses probably knows more about raising cash than anyone in this country, so i think his thoughts [above] on the matter are particularly pertinent.

I congratulate Sahil for having the kahonies to tell a raw, truthful story which is unlike much of the success story fluff that is offered up in the entrepreneurial press/space.

You have to give the man great credit for being brave enough to let us behind the curtain and see a side of capital raising / vc / high net worth individual – involvement that is rarely told.

Remember boys and girls, life is about doing stuff. If you want to critique the actions of others… become a journo or maybe a reality TV judge.
Otherwise jump in… the water’s warm.

I’ll finish up with a line from my favourite 80′s ad campaign by Reebok:
Life is not a Spectator Sport…

ps.
Sahil, Good luck with MagNation world domination !

]]> By: Peter Clutton http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9858 Peter Clutton Tue, 14 Jul 2009 12:37:11 +0000 http://anthillonline.com/?p=12869#comment-9858 Jeremy ... erm, jeremy who ?? You want to cast Sahil as a "blowhard" and ask him to reveal so much ..and you won't even say who you are ?? Jeremy … erm, jeremy who ??
You want to cast Sahil as a “blowhard” and ask him to reveal so much ..and you won’t even say who you are ??

]]> By: jeremy http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9843 jeremy Tue, 14 Jul 2009 09:20:41 +0000 http://anthillonline.com/?p=12869#comment-9843 Sahil should name the VC investors who have backed him and his results that have made them satisfied with his progress. In the absence of this, to use a term from my home country, he comes across as a bit of a blowhard or all hat and no cattle. Sahil should name the VC investors who have backed him and his results that have made them satisfied with his progress. In the absence of this, to use a term from my home country, he comes across as a bit of a blowhard or all hat and no cattle.

]]> By: peter spencer http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9828 peter spencer Tue, 14 Jul 2009 06:21:28 +0000 http://anthillonline.com/?p=12869#comment-9828 You have the correct slant on this but also proves that Snake Oil Salesman is an Art You have the correct slant on this but also proves that Snake Oil Salesman is an Art

]]> By: Martin Hosking http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9827 Martin Hosking Tue, 14 Jul 2009 06:20:27 +0000 http://anthillonline.com/?p=12869#comment-9827 Sahil Pretty much my experience as well. For the first round for RedBubble though I did go the route of not doing a detail model and forecasts. We simply presented a range of different scenarios. The business was so new and complex that I just wasnt prepared to commit to something specific. For Round 2 we did the much more detailed modellling. Sahil
Pretty much my experience as well. For the first round for RedBubble though I did go the route of not doing a detail model and forecasts. We simply presented a range of different scenarios. The business was so new and complex that I just wasnt prepared to commit to something specific. For Round 2 we did the much more detailed modellling.

]]> By: Nic Blair http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9825 Nic Blair Tue, 14 Jul 2009 06:07:19 +0000 http://anthillonline.com/?p=12869#comment-9825 Great article Sahil. An excellent read! Operating my own startup and looking into the world of seeking investment I find it great to read about your first-hand experiences! Keep up the good work and good luck with your venture. Great article Sahil. An excellent read! Operating my own startup and looking into the world of seeking investment I find it great to read about your first-hand experiences! Keep up the good work and good luck with your venture.

]]> By: Michael → Linefeed http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9820 Michael → Linefeed Tue, 14 Jul 2009 04:46:22 +0000 http://anthillonline.com/?p=12869#comment-9820 "I guess creativity can be more important than money" — well it should be or else you have nothing to offer, no way of differentiate your offer from anyone elses and absolutely no creditability. A little creative think always goes a long long way. Also money on it's own is just money. If that's where you're interest lays, go be a banker. “I guess creativity can be more important than money” — well it should be or else you have nothing to offer, no way of differentiate your offer from anyone elses and absolutely no creditability. A little creative think always goes a long long way. Also money on it’s own is just money. If that’s where you’re interest lays, go be a banker.

]]> By: Peter Clutton http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9815 Peter Clutton Tue, 14 Jul 2009 03:45:30 +0000 http://anthillonline.com/?p=12869#comment-9815 So Adam.. tell us the secret of how you gained both funding and immediate profitability, just so we know your comments aren't derived from a bout of resentment ... jealousy ... inadequacy So Adam.. tell us the secret of how you gained both funding and immediate
profitability, just so we know your comments aren’t derived from a bout of resentment … jealousy … inadequacy

]]> By: Sahil Merchant http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9814 Sahil Merchant Tue, 14 Jul 2009 03:31:04 +0000 http://anthillonline.com/?p=12869#comment-9814 Hi Adam, How do you judge results? Is it by ROI for investors? If this is the case, no one has achieved results until exit. Anyone involved in a start up venture will be deemed to have achieved nothing under this logic. Or is success bottom line profit? A milk bar might turn a profit, much more than I currently am, but is this success? Most successful start up businesses go through a life cycle whereby their initial stages are all about honing their model, and once they find their formula, they roll forward from there. The problem with my blog is that I am writing it in the midst of the journey, and not after I have succeeded. If my business fails, it doesn't mean I don't know a thing or two about rasing capital... We are about so much more than creativity. I would not have left my highly paid corporate job and risked the future of my family so I could simply scratch a creative itch! We have the built the best online fulfilment system in the country. We have overcome an inherent problem in the magazine retail industry where a barcode does not always equal a SKU. And we have built up a supply chain expertise second to none. Customers don't see any of this and we don't want them to. To label us as creative and not money focused ignores the hard core business skills underpinning our model. That said, none of this has been easy when tramping into virgin territory. Investment into capabilities means we lose money at the start and then reap the benefit of this investment down the track. If we were so flakey, why would professional investors have continued to fund us? Hi Adam,

How do you judge results? Is it by ROI for investors? If this is the case, no one has achieved results until exit. Anyone involved in a start up venture will be deemed to have achieved nothing under this logic. Or is success bottom line profit? A milk bar might turn a profit, much more than I currently am, but is this success?

Most successful start up businesses go through a life cycle whereby their initial stages are all about honing their model, and once they find their formula, they roll forward from there. The problem with my blog is that I am writing it in the midst of the journey, and not after I have succeeded. If my business fails, it doesn’t mean I don’t know a thing or two about rasing capital…

We are about so much more than creativity. I would not have left my highly paid corporate job and risked the future of my family so I could simply scratch a creative itch! We have the built the best online fulfilment system in the country. We have overcome an inherent problem in the magazine retail industry where a barcode does not always equal a SKU. And we have built up a supply chain expertise second to none. Customers don’t see any of this and we don’t want them to. To label us as creative and not money focused ignores the hard core business skills underpinning our model.

That said, none of this has been easy when tramping into virgin territory. Investment into capabilities means we lose money at the start and then reap the benefit of this investment down the track. If we were so flakey, why would professional investors have continued to fund us?

]]> By: Paul Ryan http://anthillonline.com/raising-capital-%e2%80%93-who-gives-a-damn-about-the-numbers/#comment-9813 Paul Ryan Tue, 14 Jul 2009 03:30:36 +0000 http://anthillonline.com/?p=12869#comment-9813 Great post, Sahil. Another 'truth': You know you're getting it right when people feel the need to flame you. ;-) Great post, Sahil. Another ‘truth’: You know you’re getting it right when people feel the need to flame you. ;-)

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