Whether right, left or centre, Indians have a penchant for cherry-picking data to suit their narrative. In 2022 India scored a century of Unicorns, those privately held startups with a valuation of over a billion USD. Media and government boasted of beating China in the number of new unicorns added this year. But no one talked about the issue of value creation, and whether the IPOs depleted public wealth.
As one startup founder says, the venture capitalists (in his words, vulture capitalists) push for high burn rate (some unicorns burn as much as Rs 750 to generate one rupee of revenue) to play up the valuation game and get their several X return by exiting via IPO within 3-4 years as against the earlier norm of 10+ years. They don’t hesitate to spend crores on media buzz to hype up public imagination, and transfer the burden of their profiteering!
The median post-money valuation (PMV) of a unicorn is USD 1.3B. According to Stanford research, PMV is almost always higher than fair market value (by as much as 50%), which means startups with a USD 1B PMV in a private round would not be counted as unicorns if measured by fair market value. Together, the 100 Indian unicorns have raised over USD 90B at the combined PMV of USD 340B. The post-IPO performance of the few has not been great and they will take years to turn a profit.
Bu hikaye People Matters dergisinin December 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye People Matters dergisinin December 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
How Digital Transformation Can Power The Great Reset
Technology has the potential to serve as the key enabler of change between digitalising administrative tasks and fostering human connections
The Crypto Meltdown Of 2022
FTX implosion: A setback, but not the end for the crypto market
Govern Pre-IPO Unicorns to Create Value; Not Valuation
Billion-dollar startups always make the headlines. But is there true value behind those eye-catching valuations? How can proper governance be implemented for these much-hyped companies?
On change and change management
The best way to end the year, especially such a disrupted one as 2022, is by laying the groundwork for the year to come. Michelle Yong, Head of Resourcing at Shell, offers some insights on change management to bring us forward into 2023
The Great Reconnection: A paradigmatic moment for employers and employees
This year has not been a good one for employee retention. The Great Resignation, originally thought to be a US phenomenon, has emerged in Asia now. But is there a way to turn it into the Great Reconnection?
Lessons Managing in leadership: a global hybrid team
What takeaways can we draw from the pandemic? Fatima Koning, Chief Commercial Officer at IWG, shares what the last five years have taught her about managing a global sales team across 120 markets in the hybrid model
Eight HR trends that we saw throughout 2022
As companies manage their workforces in a dynamic era, HR departments have continually adapted and adjusted, and never more than this year as digital acceleration and workplace evolutions came together
One way to turn the tide of employee retention
There's a surprising link between skill development opportunities and job satisfaction. Here are some ways of boosting skilling and thereby talent retention
A key focus for L&D going into 2023 should be business alignment
Venkat Subramaniam of Degreed believes that learning is core to business success and organisations need to invest in the right processes and technologies to adapt to continuous change
WOMEN IN LEADERSHIP CAN BE GAME GHANGER FOR INCLUSIVE FUTURE OF WORK
BREAKING FREE FROM THE STEREOTYPES IN THE INSURANCE SECTOR, PAMELA THOMSON-HALL SHARES HER JOURNEY OF BEING A CHAMPION FOR WOMEN AND BRINGING ABOUT A CHANGE IN A MALE-DOMINATED INDUSTRY
