Hurdle rates – If the bar is too low it might be a trap

Recently, I was considering investing in a business whose brand I really like. The capital structure was unique because although young, the company had been funded through a very low-interest loan from an angel investor. Maturity for the loan was approaching in six months and the investor refused to extend the term. The company desperatelyContinue reading “Hurdle rates – If the bar is too low it might be a trap”

Scalability – Just because it’s small doesn’t mean it will grow

Starting in 2004, I spent a few years tracking the promising story of Freddy Adu. Freddy, then a “14” year old phenomenon, and widely tipped to be the next big thing in soccer, became the youngest athlete ever to sign a professional soccer contract. He was drafted by D.C. United. United made a bet thatContinue reading “Scalability – Just because it’s small doesn’t mean it will grow”