Edi­tor's Blog

Industry Leaders - - Front Page - By Anna Do­man­ska

In whichthe time can it at could least take take a 6-12 com­pany months,to get ri­val that com­pa­nies much-awaited are bumpout therein to­tal fo­cus­ing valu­a­tion, and ex­e­cut­ing on ex­pand­ing their busi­ness, of course, with the cap­i­tal to carry out the same. A com­pany, mean­while, spends count­less of hours while ful­fill­ing data re­quests and at­tend­ing meet­ings with po­ten­tial in­vestors. Com­pa­nies seek­ing for funds are starv­ing of cash that they re­quire for growth, es­pe­cially at the junc­ture in the times­pan, which is most crit­i­cal to the growth. Well, so much of fish­ing is not a great out­come.

So how does this ac­tu­ally work? Time and again, we’ve heard about some or the other com­pa­nies be­ing val­ued at whop­ping bil­lions of dol­lars, but let us also not for­get that hardly a few of th­ese com­pa­nies ac­tu­ally man­age to sur­vive the in­tense com­pe­ti­tion in the global mar­ket. While some end up get­ting ac­qui­esced, there are oth­ers who wipe-off their en­tire ex­is­tence from the planet.

Prom­i­nent tech Uni­corns like Uber and Didi Chux­ing, are val­ued at more than a bil­lion dol­lars. But, does this ac­tu­ally mat­ter? How is one sup­posed to mea­sure a com­pany’s true value? Is it cor­rect to al­low “Valu­a­tion” to be the ul­ti­mate tie-breaker? Does this valu­a­tion ac­tu­ally guar­an­tee the suc­cess of the val­ued com­pany in fu­ture? Lower valu­a­tion, on the other hand, prob­a­bly can be­come a suc­cess trig­ger­ing fac­tor con­sid­er­ing it of­fers a quick cap­i­tal in­fu­sion.

May be, it’s the risk that mat­ters the most. Uber, for in­stance, dom­i­nates the global ride-shar­ing mar­ket de­spite be­ing en­veloped by end­less law­suits and con­tro­ver­sies. How? Risk, is the an­swer.

Anna Do­man­ska

Edi­tor-in-chief, In­dus­try Lead­ers Mag­a­zine

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