Some fear sustainable investments (or ESG or responsible investments — pick your favourite jargon) have already, or are in the process of forming a bubble.
What is a bubble? We all recognise one after the fact, and most of us would cite the 1999–2001 dotcom boom and bust as the most obvious bubble of recent times. In the 12 months to March 2000, the Nasdaq index in the US (an equity index dominated by technology stocks) rose by around 160%, as the stock prices of almost any company with a ‘.com’ …
“When you tell investors they are not going to see returns for 10 years and they are not going to have any voting rights, most sane investors walk away.” They didn’t. They invested. Not in a hot Silicon Valley startup. In a small Welsh jeans company.
In 2019, Uber’s IPO will be most important to the growth v profit debate. But watch this UK fintech story too.
The growth-at-all costs tech norm will be severely tested in 2019. Without doubt, Uber’s IPO will be the most significant test. The reaction of public market investors to the loss-making giant is eagerly awaited.
But there’s another fascinating test to keep an eye on in the UK fintech space. If the LendInvest IPO goes well, and markets don’t warm to Funding Circle, it might mark an important shift in market preferences — towards profits over growth.
Funding Circle and…
Customer neglect is a good strategy?
“Provide whatever service you can, as long as it doesn’t slow us down. And that may mean — no service!” Reid Hoffman.
This is the advice given to the next generation of entrepreneurs by Reid Hoffman — doyen of Silicon Valley, co-founder of LinkedIn and one of the masterminds behind the early success of PayPal.
He describes how he applied this strategy in the early days of PayPal on his Masters of Scale podcast (episode 10, July 2017, “Let Fires Burn”).
It’s an interesting series. The blurb on the website reads: “In each episode…