Founders and management teams are the real investors in any business. They make daily capital allocation decisions that shape the company’s future.
They’re like portfolio managers allocating resources to the people and projects that offer the highest and best returns. The focus when explaining investment decisions, isn’t just on specific allocation strategies or balance, it’s about choosing the right metrics to measure how well capital is being deployed.
While money itself may be construed as capital, capital is more often associated with cash that is being put to work for productive or investment purposes. Companies use their capital to invest in all kinds of things to create value. In general, capital is a critical component of running a business from day to day and financing future growth.
How companies finance their working capital and invest their obtained capital is critical for their prosperity.
20-year veteran of Silicon Valley who has raised over a billion dollars for SaaS, Consumer and Financial Services companies. Currently, the founder and managing director of of Capital Exponent, an advisory firm dedicated to securing more capital for founders and maximizing returns for their stakeholders. Also on the Board of Kueski, one of the largest buy-now, pay-later (BNPL) and online consumer lending companies in Mexico. Formerly, the CFO/COO of LendUp, a Fintech company for the underbanked creating over one billion in new credit opportunity for the 56% of Americans shut out of mainstream banking. Early career included mergers and acquisitions at BBVA Compass and joint ventures at Shell Oil Company with a Masters in Finance and Venture Initiation from UCLA.
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