Comment on The IPO Markets - Part 1

Arnav commented on 10 Feb 2018, 07:45 PM

If the company has 5 crores as Seed Fund and it is braking even when the VC decides to invest in it, this means it is spending 5 crs and making 5 crs right? then the VC invests 7 crores into the firm. So the company actually has only 13 crs in real tangible money!

Now if the promoter has his 40% share valued at 20 crs, why is it being called wealth creation when there is no asset or money to actually back that wealth??

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