The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank’s lending facility–the discount window. The Federal Reserve Banks offer three discount window programs to depository institutions: primary credit, secondary credit, and seasonal credit, each with its own interest rate. All [...]
This is definitely worth watching – http://vodpod.com/watch/3021879-tegenlicht-2010-quants-de-alchemisten-van-wall-street.
The film is a series of opinions from several principles of Quant Community. Two of those featured are Paul Wilmott and Emanual Derman. Together they’ve come up with The Financial Modelers’ Manifesto. Despite the homage to the Communist Manifesto, it provides some useful and comedic insight and advice, specifically the [...]
Source: CNBC.COM
Sometimes reality makes up it’s own jokes.
TechCrunch in their mind boggling large ego thinks Rupert Murdoch is crazy for taking on Google. The concept that everything must be free and instead rely upon an advertising model for all things web delivered is just a bi-product of liquidity. It makes financial pundits, who should know better, make less than intelligent statements.
There are so many companies with the free business model on the web that are supported SOLELY by equity funding. Just because someone can con another out of their money does not mean that their business model is solid.
Let’s take a look at a little history.
I’m going to summarize a great article, Health Insurance in the United States http://eh.net/encyclopedia/article/thomasson.insurance.health.us, however, I encourage you to read the article in its entirety.
This is a comment responding to an article written by Chris Dixon “about Ideal first round funding terms”. As I said in my last post it is this kind of attitude from Founders that is a major disconnect from early stage Angel investors. It is my goal to warn new Angels not to fall into the trap of accepting deal terms that place their after tax dollar investment at a lower value then Founder sweat.
The Angel is sure as hell taking equal risk why shouldn’t they get equal exposure to the upside? Too often, I hear early stage entrepreneurs talking about there sweat equity as if it’s a human right. It goes something like this:
ANGEL: “So, Mr. Entrepreneur, how much money are you putting into this venture?”
Mark Cuban recently dissected an email he received from a would-be entrepreneur pitching his idea for dollars and failing spectacularly. It’s a good read and illustrates that anyone with a piece of paper and a crayon can create a business plan. Which leads me to Rule No. 1:
Don’t get caught-up in the “mysticism” [...]
