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Student spreadsheet for case W18738

Canada’s Department of Finance recently began consultations on open banking—a global trend enacted last year in Britain and the European Union and soon rolling out in Australia. Under open banking, you would be able to authorize apps developed by fintech companies to access your bank account in order to provide services you want, such as reporting, budgeting, or forecasting. The issues that need to be addressed to make open banking work for Canadians include scope, security, stages, and literacy. Data security (and privacy) is the #1 issue, and Canada eventually needs to establish both data protection standards and a code of consumer data rights to get the most out of the digital economy. Canada’s proposal does not include a digital identity system to replace physical documents (such as a passport or identity card). The country should adopt two standards to increase security: mandating standardized APIs that third-party developers can use to build banking apps, and mandating PCI DSS-compliance for fintech firms operating in payments. Canada should roll out open banking in stages, and it should be accompanied by a major effort to raise financial literacy—consumers need to be informed and protected.

On March 8, 2017, Singapore-based food outlet operator Kimly Limited (Kimly) announced its intention to go for an initial public offering (IPO). Through this IPO, it aimed to raise SG$43.5 million. Altogether, 173.8 million new shares would be issued at SG$0.25 per share, comprising a retail tranche of 3.8 million shares and a placement tranche of 170 million shares. The chances of successfully getting Kimly’s IPO shares were slim, given the small retail tranche. In addition, the controlling shareholder and other key shareholders were subject to lock-up periods, which would prevent a short-term overhang of the shares. These factors implied that the supply of Kimly’s shares would be scarce in the initial six months after the IPO, which could have a positive impact on the share price. A retail investor, drawn to the issue because of Kimly’s identity as a family firm, applied for the IPO and was also considering purchasing shares in the aftermarket later in March. Was this a worthwhile investment, and if so, what should this investor’s maximum price be? Should such an investor plan to sell immediately or hold for the long term?

Spreadsheet for product 8B18N026.

Spreadsheet for product 9B18N026.

On March 8, 2017, Singapore-based food outlet operator Kimly Limited (Kimly) announced its intention to go for an initial public offering (IPO). Through this IPO, it aimed to raise SG$43.5 million. Altogether, 173.8 million new shares would be issued at SG$0.25 per share, comprising a retail tranche of 3.8 million shares and a placement tranche of 170 million shares. The chances of successfully getting Kimly's IPO shares were slim, given the small retail tranche. In addition, the controlling shareholder and other key shareholders were subject to lock-up periods, which would prevent a short-term overhang of the shares. These factors implied that the supply of Kimly's shares would be scarce in the initial six months after the IPO, which could have a positive impact on the share price. A retail investor, drawn to the issue because of Kimly's identity as a family firm, applied for the IPO and was also considering purchasing shares in the aftermarket later in March. Was this a worthwhile investment, and if so, what should this investor's maximum price be? Should such an investor plan to sell immediately or hold for the long term?

Student spreadsheet for case W18790

In December 2018, the blockchain startup Fluidity was about to participate in its first tokenization deal, which would create digital access to property rights in a 12-unit Manhattan condominium complex. The deal was proof-of-concept for Fluidity, which hoped to develop a business digitizing securities issuance for other real estate assets on the basis of its technical facility with blockchain technology, and in conjunction with its broker-dealer partner, Propellr. A successful transaction would only prompt larger and more urgent strategic questions, however. Among them was the appropriate revenue model for Fluidity-whether to grow by providing its technical services to broker-dealers, by going into tokenized securities issuance, or by harnessing its trading technology to facilitate a secondary market in tokenized securities.

The case opens in 2016 as Barbaros Ozbugutu, co-founder and CEO of the Istanbul-based payment technology start-up iyzico, contemplates the offers the company received for its Series C round. The case then describes iyzico's origins and provides a detailed overview of the business model and growth story that led iyzico to dominate the industry in Turkey within three years of its founding. Having raised A and B rounds from local and institutional investors in 2014 and 2015 respectively, in 2016 Ozbugutu believes that iyzico could benefit from another round, this time from international venture capital, to reach its aggressive growth targets. In the summer of 2016, after an intense few months of talks with potential investors, Ozbugutu was looking at five competitive term sheets from funds with great fintech know-how and emerging markets experience. From the previous rounds, he knew that if he chose the right investors-ones who could also act as advisors-surprises would be rare. He now needed to weigh the pros and cons of the different term sheets and VCs and decide which offers to ultimately accept.

The case opens in July 2016 as Barbaros Ozbugutu, co-founder and CEO of the Istanbul-based payment technology start-up iyzico, contemplates the pros and cons of the different term sheets the company has received for its Series C round. The case then informs the reader about some changes in circumstances that affected the terms of the shortlisted offers. At the end, the case poses this question: Being faced with worsening terms in a volatile environment, should Ozbugutu go ahead with the round, or should he wait and try again at a later point in time?

Spreadsheet to accompany product 9B18N025.

As a typical investor in India, you sought to attain reasonable growth in her capital with adequate diversification and low volatility in returns. It was suggested that you consider investing in mutual funds in order to obtain diversified exposure to India’s equity and debt markets. In particular, it was suggested that you invest in the Tata Equity P/E Fund, which had witnessed stellar performance in the recent past. However, before you can decide whether to invest in mutual funds, you must thoroughly understand the key features and their benefits and costs. You also need to identify specific sources of outperformance and to assess the fund’s true outperformance, actively attained after adjusting for risk.

As a typical investor in India, you sought to attain reasonable growth in her capital with adequate diversification and low volatility in returns. It was suggested that you consider investing in mutual funds in order to obtain diversified exposure to India's equity and debt markets. In particular, it was suggested that you invest in the Tata Equity P/E Fund, which had witnessed stellar performance in the recent past. However, before you can decide whether to invest in mutual funds, you must thoroughly understand the key features and their benefits and costs. You also need to identify specific sources of outperformance and to assess the fund's true outperformance, actively attained after adjusting for risk.

Student spreadsheet to case W18774

Three brothers discuss the succession plans of their shares in the publicly listed family business.

In late 2017, Camber Creek, a real estate technology focused venture capital firm, had to evaluate a potential investment in Measurabl Inc. which provides real estate companies of all sized with a full SaaS solution for sustainability data.

We are living in an aging society. In most countries in the developed world, birthrates have been falling since the 1960s, and the average working population age has increased. As the fraction of the population requiring support in old age has increased, and the proportion of workers who can save and pay taxes has shrunk, there have been huge changes in how society provides for its retirees. Among the most pressing issues is suitable accommodation. Ryman Healthcare, a listed New Zealand company, has monetized wealth in retirees' property to provide specialized housing. It has performed well financially and provided homes for thousands of seniors. What were the risks in its business model and its options for expansion, for instance into China?

Seedfund is an early stage venture capital (VC) fund focused on Indian companies building enterprises that address the growing Indian economy. The case traces the creation of the fund, the development of and the rationale for the investment theses for the fund, the way the investment team raised and constituted the funds taking into account the institutional regime governing the VC industry in India. In particular, it discusses how the investment team developed their investment theses, taking into account the competitive scenario in the market for early stage investing and the competences that they brought to the business. It also discusses the entire fund life cycle management, namely sourcing of deals, screening of deals, post financing value addition and exits. As a backdrop, the case provides an overview of the Indian VC and private equity (PE) industry in India.