"Start Up India Plan" by our Prime Minister Narendra Modi was initially taken by the investors and entrepreneurs in an aggressive mode but as the process continues the Follow On Venture Funding seems to slowdown the global economy. Actually the entrepreneurs perceived the perception of panic as the corrections made in the Venture capital policy combined with the valuation by international financial institutions made the situation more worse.
Global financial institutions expects the powerful financial growth in the next coming years surpassing China Na US due to the powerful young demographics in India with the support of internet technology and mobile technology. Many Financial businesses take wants to take this advantage and leverage their technological power in front of their competitors by attracting more entrepreneurs and investors with promising convenience and delivery.
Funding for these financial businesses is very easy. The global financial institutions comes forward with a good amount of capital to grow their businesses. After the initial capital global hedge funds and corporate investment showed up by providing greater sum of capital to fuel excess spending on market shares and customer acquisition with expensive media, excessive hiring and cash back discounts. The perception of getting easy way of capital increases higher valuation ignoring the profits of the company.
The global financial institution found that these businesses grow at a very slow pace and as a result there is a fear of global slowdown in the economy due to cash backed discount and advertising war. However, the CEOs and upper management authorities of these financial businesses have a marketing foresight by making the financial strategies work for their organization by conserving the capital or how they can spend the equity value for the overall development. The proper financial correction in the policies and proper financial long term course strategy improve their profitability of the company and can be successful in Follow On Funding in this competitive market and help them to grow.
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