In a landmark paper titled The Nature of the Firm published in 1937, then-26 year old economist Ronald Coase addressed the question of why firms exist. “Outside the firm, price movements direct production, which is coordinated through a series of exchange transactions…
The accounting equation, a fundamental identity of accounting, states that: Assets = Liabilities + Owner’s Equity A business converts debt (liabilities) and equity (owner’s equity) into assets that generate cash flows. Those on the right side of the equation make…
Momentous changes in India’s equity market microstructure will improve market efficiency and smooth volatility over time. Emerging markets are frequently stereotyped as being prone to wild swings and outsized volatility. In particular, India has historically been a market where foreign…
Energy and clean technology investing has proven to be disastrous for venture capitalists. Capital allocated to clean tech fell to less than half in 2013 from the $3.7 billion invested in 2012, and new clean tech-focused funds were able to…
For several decades, Silicon Valley has had a near-monopoly on innovation. The Valley emerged out of America’s deep commitment to higher education and scientific research, combined with the American will to maintain leadership in defence technology. Through the second half…
Most investors who have put capital behind consumer internet startups trying to build commoditised businesses will lose money. India’s technology landscape can be characterized as having seen three waves of evolution and growth. The first wave was led by the…
Rising unemployment and income disparity has shaken democracies across the Western world in the last year. Unemployment among young people in particular has been persistent and pervasive — the United States saw the highest ever youth unemployment in 2011, and…
Harsh and I have co-authored a piece on why India should expand the participation of domestic institutional investors in the equity market: India’s economic growth has been achieved on the back of sustained investment and improved capital allocation in the…
University and business school entrepreneurship events and conferences in India tend to be clustered in the winter season. Participating in business plan competitions and panel discussions on startups and ventures is par for the course for most venture capitalists around…