Investments on Propel(x) are high risk, illiquid and bear the risk of partial or complete loss of invested capital. Please review risk factors for investments on Propel(x) here. This newsletter is for informational purposes only. It is not a solicitation to buy or sell a security.
Holidays are the best time to express gratitude for your business associates and loved ones. We have included a holiday gift guide link at the bottom of this email. Curated guides include '53 best personalized gifts in 2021 for every person' and '73 gifts for dogs and dog lovers to get in 2021'. Please remember to check it out.
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Alumni Spotlight - Seatrec, a renewable energy company featured in CNN Business
Seatrec, a renewable energy company that harvests energy from temperature differences in the environment, was featured in a CNN Business article which talks about the importance of mapping the oceanfloor and how Seatrec's technology makes such a huge undertaking much more time and capital efficient.
China is experimenting with a form of cash called Central Bank Digital Currency (CBDC) which the country believes will eliminate the need for paper money. An article published in Harvard Business Review explores the possibility of this idea at scale globally, how CBDC will impact traditional banking and the application of blockchain for cybersecurity to mitigate the possible threats and risks in this use case.
What is a J Curve, and how does it impact my investment portfolio?
The J Curve is a way of describing the value of a private equity portfolio over time because it often follows a shape similar to the capital letter “J “. Looking at the letter ‘J’ from left to right, the letter traces a dip, bottoms out and then rises. The value of a private equity portfolio often follows a similar trajectory – it first declines in value, then starts to rise slowly and then rises rapidly.
The most important message here is that investors must recognize that their private equity portfolio may decline in value and even go underwater in its early years, before it starts to recover and potentially
generates high returns.
ICYMI: Evaluating the team as an early stage investor
Professional
investors cite ‘team’ as the single most important criterion that influences the investment decision. Yet, there are no precise metrics that guide the evaluation of the team. The assessment is often fuzzy, vague, and based on how the investor ‘feels’ about the team.
This podcast episode presents three tips that early stage investors should keep in mind when evaluating team: 1. Early stage investing is subject to behavioral bias. Be aware of your biases. 2. Separate fact from opinion and
focus on the facts when evaluating team. 3. Ask questions to cross check facts. E.g., who is really on the payroll vs. an advisor at large.
Propel(x) is a premier digital platform facilitating private venture capital for deep technology startups. Our mission is to
enable investment in technologies that matter
and thus build the next generation of great companies.
