Building Trust In Investments

When Regulation Sleeps, Reputation Suffers — A Wake-Up Call for the SME IPO Ecosystem The recent expose on the alleged misuse of SME IPO proceeds by promoters of Synoptic Technology Ltd and merchant bankers is both disheartening and alarming. When companies like Synoptic and C2C Advanced Systems Limited raise public funds with grand promises and then vanish from the compliance radar, it’s not just a failure of corporate governance — it’s a failure of the system. How long will SEBI remain reactive instead of proactive? Repeated alerts about misutilisation of IPO funds, inflated projections, and blatant manipulation are met with silence — or delayed action at best. The role of merchant bankers in these listings must come under serious scrutiny. Those involved in facilitating such offerings should be blacklisted and barred from further mandates. Such Merchant Banking firms along with its promoters should be barred for life from taking new assignments and hefty penalty be imposed. This is not just about one company. It’s about preserving investor trust in the SME platform — a trust that’s being eroded rapidly. If left unchecked, such practices could taint the entire segment, hurting genuine SMEs who are trying to raise capital ethically. It’s time for SEBI to: • Initiate forensic audits in suspicious SME IPOs. • Mandate stricter post-issue monitoring. • Hold merchant bankers and company promoters jointly accountable. • Take swift action on cases like C2C Advanced, where the red flags are glaring. The SME IPO space needs discipline, not dilution. Transparency, credibility, and investor protection must be the pillars — not shortcuts, syndicates, and silence. #SMEIPO #CorporateGovernance #SEBI #InvestorProtection #MerchantBankers #CapitalMarkets #RegulatoryAction #Accountability #EthicsInFinance #IPOReform Ajay Thakur Anil Singhvi

What happens between founder–investor meetings often matters more than what happens in the meetings themselves. If an investor asks to check back in a few weeks, the real test isn’t the next Zoom call, it’s what the founder gets done between those calls. Early-stage investors are looking for one trait above all: speed of execution. In a recent conversation with a VC friend, someone asked what his best founders all shared. His answer came instantly: speed. He shared a story about a founder who ran 50+ experiments in rapid succession. The breakthrough didn’t come until experiment 52, but the sheer speed meant he reached product-market fit before the cash or the energy ran out. That’s the reality: founders who test, learn, and iterate quickly dramatically increase their odds of breaking through. So if you’ve got 2–3 weeks between investor meetings, use that window to prove you can execute. It doesn’t matter if the experiment succeeded or failed. What matters is showing up to the next call saying: “We did X, Y, Z, and here’s what we learned.” Investors aren’t won over by glossy slides, rosy projections, or a massive TAM. They’re won over by watching you execute like an animal, moving fast, running experiments, learning, and proving you can make progress when it counts. #founder #entrepreneur #startup #venturecapital #vc #ycombinator

If you're raising money or thinking about it, here’s a nugget of wisdom... You've got to have a business that’s attractive enough to pitch. Investors aren’t jumping on ideas that are “just about to take off”... They want to see positive signals, real progress, and a clear direction. One of the best pieces of advice I received was not to immediately ask for money. Instead, focus on building deep relationships and seek advice first. I remember meeting an investor, Asad at an event. I wasn’t pitching for funds; I was asking for his perspective. Through several meet-ups, he got to know the kind of person I was, my journey, and the character behind the business. He realised that what I was doing was right up his street, as an optometrist and former Telefonica franchisee with a keen eye for technology. He not only invested, but became part of the founding team. That connection eventually helped us raise over £1,500,000, with angel investors, family offices, and even a VC firm joining our cap table. The takeaway? Approach your fundraising conversations in a non-pitchy, genuine way. Focus on the business, build relationships, and let trust develop naturally. It’s those shared values and authentic connections that truly attract the right kind of investor. How have you approached fundraising or built meaningful investor relationships?

Early in my journey, I learned a simple yet powerful truth about investor relationships—it’s never just about the numbers. Performance matters, no doubt, but what truly cements long-term partnerships is transparency and trust. I remember a particularly tough quarter when we faced unexpected headwinds. The easy way out would have been to sugarcoat the situation, focus only on the positives, and hope for a better next quarter. Instead, we chose to be upfront—laying out the challenges, the reasons behind them, and most importantly, our plan to navigate through. What surprised me wasn’t just the investors’ understanding but their reinforced confidence in us. That moment reaffirmed that honesty is valued far more than perfection. Trust, on the other hand, isn’t built in a single conversation. It’s earned over time through consistency, ensuring that what we commit to aligns with what we deliver. Whether it’s staying true to our vision, making principled decisions, or keeping open lines of communication, trust is a byproduct of actions, not just words. Beyond balance sheets and presentations, investor relations, at its core, is about people. Behind every investment is an individual backing not just financial projections but a vision and a leadership team. Connecting on a human level—understanding their concerns, engaging in meaningful conversations, and aligning values—goes a long way in building lasting relationships. Today, investor expectations are evolving. It’s no longer just about financial returns; it’s about the larger impact a business creates—be it sustainability, governance, or contributing meaningfully to the ecosystem. Transparency in these areas is becoming as critical as financial disclosures. In many ways, trust and transparency are like the foundation of a building—often unseen, yet holding everything together. They are the reason our investors have stood by us through both successes and challenges. How do trust and transparency shape your relationships, in business or beyond? I’d love to hear your thoughts. #InvestorRelations #Transparency #Trust #Leadership #BusinessGrowth

I've been told by investors that I give good updates, so I wanted to share a simple recipe for giving timely, relevant, and brief investor updates. The goals of giving investor updates are: - Celebrate the wins - Share in the struggle - Build trust - Get help I've found that investors are more than willing to help, but they often don't know how. And because they have invested in potentially dozens of companies, it's hard for them to be proactive. For this reason, I suggest a monthly cadence. Put a 1 hour recurring monthly meeting with yourself on your calendar. An investor update should take no longer than an hour to put together. Ideally less. IMHO, quarterly updates are too infrequent as startups move too fast and you're missing out on an opportunity to build trust so that when you do ask for help, there's already context as to why you need it. Keep it simple. This is not a board meeting, so you don't need a deck. Investors would rather receive less more often than more less often. A simple email with bullet points is the best and most digestible way to share an update (unless you're building a messaging app...then use that :) The simple format should be: 1. The good 2. The not-so-good 3. Needs Let me break those down. The good (3-5 bullets) Go ahead and brag a little. You've worked hard, so it's OK to celebrate the wins. But, no fluff here. Investors can spot vanity metrics a mile away. Go right to the heart of the matter with updates on revenue, churn, conversion rates, and successful experiments, new hires, new customers, etc. The not-so-good (2-3 bullets) Be honest. Investors know that it's not always sunny in a startup. The more vulnerable you can be, the more likely you are to build trust. Lose a key customer? Tell that story and what you learned. Most likely, one of your investors has run into the exact situation before. Needs (1-2 bullets) This is your opportunity to leverage the combined wisdom and connections of your investors. Shoot straight. Be specific. You'll be surprised how helpful your investors can be when you have a clear ask. That's why this section should really only be one or two things. Anything more is muddy. If you can accomplish sending this simple update to investors once a month, giving an honest view of your business, you've achieved elite status as a venture funded entrepreneur (as most suck at giving regular updates).

I have raised over $8m in debt and equity funding from a small group of investors for SMEs and startups across 5 countries. If you are planning to raise funds, here are 10 lessons I have learnt that you can find useful: 1. Trust and relationship are the stepping stones: Nobody will give you their funds if they don’t trust you. Find a way to build trust and relationships with potential investors. 2. Don’t be too pushy: Followup but don’t be too pushy. Some investors just don’t like being chased around. 3. Know what the investor likes and double down on that. You’d be surprised some investors prioritize supporting a cause that aligns with their values over making money. 4. Investors want to make money: Regardless of the mission you’re on , If you can’t demonstrate how you used $1 to generate $2, you’ll find it hard to raise funds. 5. Nail down what you have in common: Investors are humans. They connect more with people who share similar values and vision as them. 6. “I’ll think about it” is a polite way of saying NO. This may not be true for some investors but some people just don’t know how to say NO. Learn to read between the lines. 7. Tell your story: This is the first piece you must get right. Investors want to know: you, your experiences, why you are running this venture, your failures and successes. 8. Massage their ego: Every investor wants to feel heard and valued. Be confident in your abilities as the founder but don’t underplay the value of an investor even if they are wrong. 9. Show your work: Investors want to work with those that are succeeding. Show your successes. 10. Not all investors are worth taking money from: I have turned down investors who appear not to share similar values with me. This is totally fine. ✅ Repost if you found this useful so others can benefit

India’s IPO market is at a pivotal moment, witnessing exponential growth and record-breaking fundraising. But with rapid expansion comes the challenge of maintaining trust and stability. SEBI has stepped up with a set of comprehensive regulations designed to safeguard investors and promote sustainable growth. These rules are not just safeguards—they are a blueprint for a more resilient and transparent market. 𝟏. 𝐒𝐭𝐫𝐢𝐜𝐭𝐞𝐫 𝐅𝐮𝐧𝐝 𝐔𝐭𝐢𝐥𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐑𝐮𝐥𝐞𝐬 SEBI now ensures IPO proceeds are used responsibly: A 𝟑𝟓% cap on funds allocated for general corporate purposes or unidentified acquisitions. Prohibition on using proceeds to repay loans tied to promoters or related parties. For SME IPOs, general corporate usage is capped at ₹𝟏𝟎 𝐜𝐫𝐨𝐫𝐞 or 15%. 𝟐. 𝐄𝐥𝐞𝐯𝐚𝐭𝐞𝐝 𝐋𝐢𝐬𝐭𝐢𝐧𝐠 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 New requirements around SME IPO ensure only financially stable companies go public: Operating profit of ₹𝟏 𝐜𝐫𝐨𝐫𝐞 in at least two of the last three years. Net tangible assets of ₹𝟑 𝐜𝐫𝐨𝐫𝐞 over the preceding three years. 𝟑. 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫-𝐂𝐞𝐧𝐭𝐫𝐢𝐜 𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐨𝐧𝐬 for SME IPOs Minimum SME IPO application size proposed to increase from ₹1 lakh to ₹2 lakh. Introduction of a draw of lots system for non-institutional investors. Caps on promoter share sales at 20%, with phased lock-in periods for larger holdings. 𝟒. 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐑𝐞𝐝𝐞𝐟𝐢𝐧𝐞𝐝 Mandatory 𝟐𝟏-𝐝𝐚𝐲 𝐩𝐮𝐛𝐥𝐢𝐜 𝐫𝐞𝐯𝐢𝐞𝐰 for SME IPO draft prospectus. Comprehensive oversight from pre-issue to post-IPO phases. SEBI’s framework represents more than just regulation—it’s a decisive step toward a fair, transparent, and investor-friendly IPO market. #IPO #SustainableGrowth #StockMarket #CapitalMarket #Investment

THE RESULTS ARE IN! Over the past month, as promised, I’ve been conducting a series of interviews with former real estate investment officers from CALPERS, Allstate, Florida State investment Board, CALSTRS, LACERA, Morgan Stanley (outsourced investor account), JPMorgan (outsourced investor account), the State of Connecticut Trust Funds, Utah Retirement System, Alberta Investment Management Corp., Colorado PERA as well as former senior consultants from The Townsend Group, Mercer, Institutional Property Consultants and Pension Realty Advisers (the latter two were the dominant pension real estate consulting firms during the 1980s and early 1990s, prior to the ascendency of The Townsend Group).  The interviews focused on on best and worst practices amongst capital fund raisers, including conducting face-to-face meetings, the development and use of pitchbooks, formal and informal presentations, client servicing, offering documents, and reporting practices. The results of these interviews have been compiled into a PowerPoint presentation and report, which is being delivered shortly to the 100+ sponsors of our publications around the globe. Following is a brief summary of the findings in that report: What Sets Top Investment Managers Apart Authenticity & Emotional Intelligence: The most effective fundraisers are genuine, empathetic, patient, and focused on building relationships—not just transactions. Consistency and sincerity build trust. Tailored Communication: Presentations that are concise, audience-aware, and aligned with investor needs stand out. Avoid rigid scripts; make it a dialogue, not a monologue. Governance & Transparency: Full disclosure, accountability, and a true fiduciary culture are non-negotiable for building trust. Strategic Fit & Leadership: Investors prioritize managers who align with portfolio goals, demonstrate leadership clarity, and have deep, stable teams. Clear, Honest Reporting: Visual, benchmarked, and context-rich reporting is preferred. Overloaded or misleading materials are major turnoffs. What to Avoid: High-Pressure Sales & Lack of Follow-Up: Aggressive tactics, poor knowledge, and neglecting post-meeting engagement erode confidence. Disregard for Junior Staff & Investor Feedback: Respect for all team members and responsiveness to feedback are essential. Opaque Governance & Hidden Fees: Transparency in fees, governance, and reporting is critical. Anything less is a red flag. The Bottom Line: Success in investment management is and always has been built on trust, transparency, and authentic relationships. The best managers listen, adapt, and put client interests first—every time. We will be making a copy of the report we’re going to be presenting to our sponsors available to interested parties in about a month. Please email me if you’d like to be included in the distribution of these reports at g.dohrmann@Irei.com InvestmentManagement #BestPractices #InstitutionalRealEstate #Leadership #Transparency #ClientFocus

The Best Time to Raise Capital is When You Don’t Need It One of the most common pieces of advice VCs give to entrepreneurs Recently, I met an influential individual who, during our meeting, asked me three times what I wanted from him. Each time, I simply replied the truth, “I’ve just come to meet you with no agenda.” What happened next surprised me. After I left, the person messaged to say that he wanted to figure out synergies This experience taught me that relationship-building isn’t about asking for something—it’s about creating trust and goodwill. When you’ve invested enough in the relationship, you won’t need to ask; the answer will come naturally. Here are a few steps that have worked for me to build relationships that matter: 1. Identify Your Key Connections Make a list of 25 decision-makers you’d like to do business with in 2026. 2. Plan “No-Agenda” Meetings in 2025 Set up casual meetings where you focus on introductions, a quick update about your business, and spend 80% of the time on other topics. Shared interests, industry trends, or even personal stories work well. 3. Follow Up Thoughtfully Based on the first meeting, schedule 3-4 follow-ups over the year to stay in touch and build rapport. 4. Invest in the Relationship Go beyond surface-level interactions. Understand their goals, values, and challenges. Offer support or insights where you can. 5. Build Confidence When the time comes to ask for something, they should feel so confident in the relationship that saying “yes” becomes second nature. The Bottom Line Building strong relationships takes time, effort, and patience—there are no shortcuts. But the rewards? A network that supports you without you having to ask. The best relationships are built long before you need them.

If #trust isn’t automatic, how can #digital #financial #service #providers earn it? It starts by seeing #MSMEs not as “users to onboard” but as businesses navigating real risks, real trade-offs, and real constraints. And trust, in this context, is more about practice than promise. What does that look like in reality? It means spelling things out. Loan terms, costs, repayment schedules—without jargon or ambiguity. Many MSEs don’t lack the appetite for credit. What they lack is clarity on how it works, what it costs, and what to expect if they miss a payment. It means moving beyond default design. When products are shaped with digitally savvy consumers in mind, micro and small businesses often get left behind. But when design is tailored—voice prompts instead of only text, workflows that match business rhythms—trust begins to form. It also means addressing what we’d rather not talk about: collections. Stories of digital lenders scraping contacts or resorting to public shaming aren’t rare. Rebuilding credibility requires clear, fair, and humane collections practices. Not just for PR—but for people. Trust doesn’t grow from technology. It grows from consistency, respect, and a deep understanding of why MSMEs might be wary in the first place. And perhaps most of all, it grows when providers act less like gatekeepers, and more like partners. #MSMEFinance #SMEFinanceGap #AccessToFinance #DigitalFinance #FinancialInclusion #SubSaharanAfrica #InformalEconomy #DevelopmentFinance #InclusiveFinance #FutureOfFinance #SubjectMatterExpert #PersonalDevelopment