Surfing on audacity edge!
Changes have been seen in Iran’s economic climate over the past couple of years. Now the nation feels homey with the Start-Ups, Ventures or accelerators. Even IFB published the prospectus and statute on VC funds.
Indeed one of the main challenges the new ideas face with, is to reap the funds they need. Financing may take months to be ready and make entrepreneurs cold feet, eventually end in depression over the whole project. Above the average failure rate in brand new small businesses make it somehow impossible for newcomers to demand funds from financial institutions, needless to say they are unwilling to do so.
When it comes to VC there is a handful of items to take under consideration:
- Have a proper exit strategy;
- Make peace with the idea of losing all the investment;
- Be patient with young minded and consequences of their ways;
- Draw the battle lines on your side;
- It is not all about the money; make time;
Re the SEO’s recent directive, ratified VC’s legal frameworks, Behnam Chavoshi, head of financial institutions governance, stated: “The most difficult of all is when it comes to finance a venture without predictable future, therefore there will be a board of 3, 5 or 7 directors, an institutional fund manager and the regulatory bodies (a trustee and an auditor) as the fund’s pillars to overlook the piping.”
He continued: “We considered a lifetime of 7 year for the funds. There will be no preferred units and all the unit holders can attempt the GA.”
It is worthy to note the concentration limits of VC funds are:
- The investors shall be well funded;
- All the founders shall own ten percent of investment units at the fund’s inception date;
- Fund manager shall own one percent of investment units during the tenure period;
- Trustee and auditor shall not be able to invest in the fund during their tenure period
It shall not be forgotten that the VC investment is neither short term nor highly liquid, hence the possibility of day trading is limited and the transfer of units can only take place through direct negotiations to SEO or over the counter.
All in all, applicants shall send the request over to IFB with regards to instructions to be published soon. Approving the documentations being the case, they must wait on the license to get issued.
In the Market
The stock market continued an upbeat week on a higher note in the absence of the key players to a new high. TEDPIX rose more than 240 points and stood on 75,183.90 (+0.33%). The international metals and iron ores markets maintained their bullish posture and analysts believes that it is the time for both industries to make history.
After approving cash dividend to be paid, “Foolad” reopened and traded for more than 96 mn shares on today’s session, made the ticker first in overall impact on index (+93.7), also left 64 mn buy orders in the queue. The trend for National Copper industries were the same, although with much lower volume. Almost all the sector wore green today except for Amir Kabir Kashan Steel Co. which lost 4.99% on the closing price.
Chemicals began the day on a choppy note as participants eyed a relatively lower finish in global oil price. Most of the giants lost 1% of closing on average. “Fars” made third on overall impact on TEDPIX with 49.25 negative points. Sepehan Tooka Steel paint Co. compensate for the sector and closed with almost 1 mn buy orders in the queue, on IRR 5,238 (+4.99).
Finally, the oil products sector extended the other day gain with Bandar Abbas oil refinery being the leader. 6.32 shares of “Shebandar” traded and the ticker closed on IRR 4,654 (2.06%). Other industry’s participants were undergone moderate trades.
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