Disqus - Latest Comments for sivaavis

Re: 17 Things Founders Say to Investors That Are Complete BS

sivaavis — Wed, 08 Jul 2015 22:52:39 -0000

Superb. Good one :)

Re: UM students make cheap and portable solar charger / light source for developing nations

sivaavis — Mon, 31 Jan 2011 20:37:31 -0000

Why any low cost product is always targeted at developing nations? Cost is just one angle, more important is the amount of energy the product can conserve. The developed nations consume more energy than developing ones and so this product could be more useful in developed nations. These 'innovators' would do better for themselves and for the society if they focus on market right outside their doors. Developing countries have bigger issues - poverty, health system to focus on. Energy conservation is not the immediate problem of developing countries.

Re: The Truth about Financial Models

sivaavis — Tue, 17 Mar 2009 11:35:35 -0000

Thanks for the article. It is very well-written. However it deals with financial modelling mostly from an outsider's perspective i.e., you are mostly concerned about the use of financial model for a venture capitalist or some other investor. A financial model has a lot of uses for the promoter himself. As a matter of fact, a financial model is expected to speak of how the company's financial condition would look, according to the promoter, in 3-5 years. It is necessary for the promoter to go through this exercise so that he/she would know the micro-details of the expenses. While working with the promoters we have seen some promoters get surprised/shocked by the unreal assumptions they had carried in mind while structuring the business idea. When all the numbers are put together in a cohesive structure, there is a higher probability for the numbers to be real than when they are seen in isolation.

It is quite true that the promoter need not show the entire financial model to the prospective investor. It is because the financial model is a strategic document and is targeted at the promoter himself. He needs to share with his prospective investor only that portion of the model which he thinks is absolutely necessary to convince the investor. You can visit http://financialmodel.net for more information on building financial models for various businesses.