RE: Dose of Reality20 Oct 2024 11:18
You are wasting your time with us mortals...you need to be on Dragon’s Den porky ..maybe Porkies Pen...your own investment show !!
Porky9
Posted in: VAL
Posts: 7,158
Price: 2.10
No Opinion
Analysis of a business for Investment7 Sep 2024 06:12
FAO @Ob
This is a long reply and all in my own opinion so DYOR.
Post might still be here in the morning as it’s the weekend. Not that its relevant to anything but you asked me personal reason for posting, my opinion, so here it is: -
Now to answer fully, I must first give some context to my perception of investment, you may not agree with it. You see, I have a business background of over 30yrs and invest in listed and a number of non listed businesses. So, I guess you would class me as more of a business Angel investor rather than a stock trader. As such I will try to profile and research a business from a commercial perspective how viable it is to secure a longer-term ROI. I have also carried out research on some investment plays for a family office, so I have been around a bit so to speak :)
What I realised over time is that whilst it offers increased liquidity being able to invest in fledgling businesses on AIM compared to invested positions in non listed companies, the experience is VASTLY different. At pitching events for non listed once you get under the bonnet and go into specifics at board level, whilst you still have to sort the wheat from the chaff the businesses that I would consider as investable, where I would invest alongside other sophisticated investors, Angel Investors, family offices and co funds these investee business tend to make a pound go a longer way, they have more realistic expectations in relation to sales and marketing revenue generation, valuations and expectations of their investors and their expected exit values. This is the experience I have had anyhow.
In addition, IMO there tends to be more honesty and transparency and more due diligence interrogation and proof of delivery as they move from seed rounds to series A etc IMO. These businesses know that mistakes cost money, and they won’t get further investment support if they fail to deliver. You know if you were still in a private limited company after two or three dilutive raises unless you were backing continued growth with the valuation growing, if the business kept failing, you would be out, and it just wouldn’t secure further funding. That would be the end of it.
Also, non listed businesses wouldn’t employee incompetence, they can’t afford it. They wouldn’t employee a BDM on sales for example that never sold a thing, they would be long gone, or a director making poor decisions, same thing.
Cont......
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