In this video, we discuss how the realised function of a system changes as we scale bigger. If you are a small company and suddenly become big, if not well planned, this could change its realised function and could lead…
In this video we discuss the fundamentals of Scale, its meaning and try to find out how things scale as they grow. This gives us a food for thought to understand the non-linearity associated with growth in size.
In this video we discuss that VC investment is expensive and hence companies must also find out more about what types of Investors they are, how good are their networks, how decisions are made in partnerships – do the investor…
In this video we discuss how to view these two investments if you are the CEO of a Biotech company. Both have certain pros and cons and depending on your stage of the company, capital needs, you could choose either…
In this video we argue that taking a weighted average of different methods of valuation is not the correct way to do it. Every method is used in a different context. The worth of your asset, through Intrinsic value (NPV),…
The idea of this video is 2 fold : 1. Understand in what ways you cannot value a biotech asset ( subtractive knowledge) – It makes one’s life easy 2. Understand whats the best way you could assess the potential…
In this video we discuss that we should be focussing more on cash flows if we really want to do a good valuation because most of the errors lie there and not spend too much time on identifying what discount…
In this video we discuss how a biotech company can be capital efficient. To explain that we give an analogy of history – how Francisco Pizzaro with just a small army defeated Atahualpa of Cajamarca that had an army 5x…
In this video we talk about what is meant by cost of capital or discount rate or hurdle rate, explain what Return on invested capital is and finally the Power law. A Biotech CEO is supposed to know not only…
In this video, we discuss if an early stage valuation is about XL modelling? or more than that. A good valuation is a mix of a sound narrative and numbers.