Exposing the dark side of startups and investors: A teaser ahead of the Investment Readiness Program

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financial statement decoration Fake numbers to make them look too good to be true

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Really sold 25 million, but wanted the number to be 50 million. What should I do? I said I faked the number. create fake customers Fake invoices, hide debts, avoid expenses to inflate profit figures.

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Move income from relatives' companies in the network Grandma buys grandma's snacks. Create exciting stories about grand megaproject plans that seem too good to be true.

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Pretend to use cutting-edge technology AI/Machine Learning, DeepTech, Quantum, even though your guts are tingling.

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Investors saw this and were excited. Financial analysts see beautiful metrics, all numbers look good, ratios are beautiful (because they created the numbers with their hands), banks give loans. Investors put money In the end, the red story, the bubble burst, everyone died.

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Scandals like this range from startups to public companies. The methods are similar, but the damage scale is different.

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Case studies include Theranos, WeWork, these two are so famous they have also been made into movies, Luckin Coffee, Wirecard.

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Cut to some pictures from the investor side. which is equally scandalous

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One startup is hot. Able to raise 10 million dollars from famous investors, the founder reveals that there is a fund manager. Pressure him to personally sell his shares. (Sold to the manager himself on behalf of Not a fund) at a price that is 'lower than the value' that the fund (that you manage) is about to invest in. Confused?

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Retelling with a Thai context: Startup A is raising 10 million baht with a Pre-Money Valuation of 100 million baht in exchange for 10% equity and is currently talking with several investors.

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In the middle of the night one day, Fund Manager A greeted me to talk privately, "Hey, can you sell me stocks at a cheap price? Please give me a valuation of 50 million baht (I'd like to buy at half the price). I'll wait a minute." Put in a large sum of money from the pile I'm taking care of for you, little one."

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Limited Partners (LP) or investors who own the money invested in the fund (investors in the fund again, don't be confused), I don't know. I thought that the fund manager chose investments based on the texture and where the mother secretly bought cheap stocks beforehand. Then take more money from the fund to add to it.

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I got a profit (unrealized capital gain) immediately 2 times (the fund paid a price of 100 million but I got stocks at a cost of 50 million). Oh (oh) genius overnight.

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Another equally brutal case is when investors invest. (I don't know if it's a good idea to call for investment in this case.) When finished, tell the Founder to sign the check in advance and pay it back with 100% interest immediately. If the check bounces, prepare to go to jail. Ending the risk of criminal punishment

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Who wants to hear more stories like this? Don't forget to attend the Investor Readiness Program this Tuesday - tickets are almost full.