Startups – the devil is in the detail

Value realised: Grab delivery riders are seen in this file picture in the Klang Valley. The firm is a good example to understand the terminology used in financial reporting.

STARTUPS as the name suggests are new companies coming to market to disrupt the conventional and old ways of how a product is sold to the customer.

Startups are high-risk, high-return ventures and that is why the bulk of the funds that are raised by these startups are from venture capital (VC) or private equity (PE) funds, or even sovereign wealth funds (SWF), which have the benefit of time to invest for a medium to long term and to achieve double-digit returns on an annualised basis from their investments in this space.