VCCircle | Mergers, Acquisitions, Private Equity, Venture Capital, Investment Banking
Dumb Capital Goes Out, Patient Capital Comes In
The audience at the VCCircle Investment Forum in Hyderabad on November 13. The panelists agreed the froth is gone and it’s indeed good time to invest.
The speakers – most of them have seen several economic cycles in their career – believed that the best investments are those made at the bottom of a cycle. What is key for the companies are that they need to survive the downturn and for that they need capital. “This is not about the survival of the fittest, but about the survival of the most capitalised,” said Atul Kapur, Managing Director, Indivision Capital.
Kapur added that the “fast moving dump capital” which was readily available an year back is not there anymore, which is a good thing. According to him, in the market, anyone who has the access to capital in the current environment has competitive advantage.
The global financial crisis has flushed out the fast moving dumb capital. This has resulted in a situation where only good companies get funded.