Thirty years ago, entrepreneurs established businesses, focused on building a customer base, scaled their company, and sometimes when they wanted to accelerate growth or needed some more cash as fuel to maneuver rough economic circumstances, they engaged with banks and investors.
Back then, the traditional financing instruments were capital in the form of debt or equity. Also, the repayment was straightforward: Debt was mostly on periodic installments plus interest rate and equity earned dividends and increase in value.
The technological revolution that came with the internet also changed the financing models and how companies operate significantly. Developing a profitable business model is still on the radar, but most of the time 20 to 30 years down the road.
Delayed gratification seems to be the theme these days when increasing traditional key figures like EBIT.
I am happy that the investment banking expert Tero Weckroth joined me for this vital conversation about financing instruments in the last three decades.
We went over questions like:
How can tech entrepreneurs survive these long dry periods of zero profit or even retained losses?
What investment models exist today?
Why is it necessary for entrepreneurs to understand those differences before approaching investors?
Join us for an informal chat over Angel Investment, Crowdfunding, Venture Capital - private and public investments.
Guest in this Episode:
Tero Weckroth, Entrepreneur, Investor and organizer of Nordic Chessboxing
Video to the Episode:
Upcoming Event:
When? October 2, 2021
Where? Helsinki and Online
Get Your Ticket:
Timestamps:
For those who want to listen to specific parts of the episode, here are the timestamps:
(0:00) Opening words
(0:30) Introduction Tero Weckroth
(3:00) Life Science in Finland
(8:30) Life Science Investments for Business Angels
(22:00) Alzheimer Drug Development and Diagnostics – Biogen and Combinostics
(26:40) What is the Right Pricing for Drugs on the Market?
(30:00) Availability of Capital for Early-Stage Drug Development
(33:00) Importance of a Team
(38:00) Public Investments and Crowdfunding
(44:00) Risk Management for Investors
(46:00) Differences between Privat and Public Investment and Crowdfunding
(49:30) Reddit – New Development on the Stock Market
(01:00:00) New Macroeconomic Era?
(01:06:00) Cash, Gold, or Digital Gold?
(01:15:00) Technological Evolvement in the Investment Banking World
(01:20:00) Effects of the Pandemic on Regulations
(01:25:00) Cryptocurrencies
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#44: Private and Public Investments - Selected Similarities and Differences from the Crowdfunding and Angel Perspective