Swati Chaturvedi’s Post

We are #hiring! We are looking to hire FINRA registered Sales reps in our San Mateo office. Series 7 or 82, and Series 63 are required. Know anyone who might be interested?

January was a month of frenetic activity. One of the biggest contributors to all the hustle was the J.P. Morgan Healthcare Conference, a significant annual event that kicks off the year with a bang. As is customary, I found myself mingling with startups, investors, technologists, policymakers, and media. My most interesting interaction was with Himabindu Gaddipati. Dr. Bindu is a visionary. An oncologist by training, a venture capitalist by practice and an entrepreneur at heart. Her investments strive to plug the gap in the cancer product lifecycle. She is also a great advocate for women,  involved with multiple charities and funds. A big emphasis for her is getting more women into investing - a passion I share :). It was a pleasure to (finally) meet her. More power to Bindu, I wish her every great success. I am excited to be a part of her journey.

To all those starting out as entrepreneurs in deep tech or as investors in deep tech - this might be valuable. I had the opportunity to connect with Nicola Marchese and Giulia Spano, Ph.D who started Deep Tech Catalyst. I believe their podcast fills a gap and is much needed.

Happy New Year, everyone! It's 2024—a time for new beginnings, and, of course, new resolutions. The challenge, as always, is in keeping our resolutions. Nevertheless, I'd like to share my resolution for this year, and I hope to persuade some of you to join me in this endeavor. My resolution is to practice 20 minutes of mindfulness every day. For those who haven't tried it, I encourage you to explore the guided sessions on Headspace. My favorite teacher on Headspace is Andy Puddicombe, the co-founder of the app. I dabbled in meditation many years ago just after my undergraduate years. Despite my initial flippant mindset, I was surprised by how transformative it could be. True to youth, however, I discontinued my practice. A few years ago, I picked it up again to relieve stress. Stress leads to irritability and impatience. In my role leading a company, displaying irritability and impatience can negatively impact my team. Positive energy is important, and it works both ways - I derive energy from the team as much as they derive energy from me. That's why I've made Headspace free for our team members. In a small startup environment where resources are constrained and stress levels can be high, all of us need to remain calm, patient, and kind. To achieve this, we must take concrete steps, and for me, that step is practicing mindfulness. If you haven't tried it, I highly encourage you to start with just three minutes. Headspace offers very short sessions, including one-minute sessions to take five mindful breaths. Give it a shot. This is my resolution, and I invite you to share yours for the New Year. I wish you all the very best—success, joy, and peace in 2024! And here is a new friend I made on New Year - Poppy. Thank you Hrishikesh M. PS: This post is not sponsored by Headspace. #mindfulness #newyearresolution #2024

Hello everyone, as we approach the end of the year, it's that time when we take a pause to reflect on the past 12 months. For us and many of our portfolio companies and users, 2023 has been one eventful year. The year kicked off with market turmoil, leading to fears of a downturn and a significant drop in startup investments. Many startups shut down, creating a sense of doom and gloom. Interest rates rose, and startup valuations fell. Despite this, I believe and have previously written that valuations have now stabilized, returning to pre-pandemic levels. This wasn't an easy period, with rising interest rates and falling valuations adding to the challenges. However, amid the chaos, we found new ways to thrive and help the startup community thrive - starting with the introduction of a new business line, one that we are immensely proud of – SPVs-as-a-service. Our DIY SPV platform gained traction since its launch in late June, evolving into a significant revenue source for us. On the investment platform itself, we recognized the investor need for liquidity, as investors had less of a desire to be tied up for seven to ten years in a startup. This led us to introduce a somewhat liquid** asset class - hedge funds - on our platform, providing accredited investors access to prestigious funds like the Svelland Capital (SGTF) - the No. 2 ranked global macro strategy fund by BarclayHedge. SGTF generated a 3-yr compound annual return of 43.65% according to the Q2 2022, Barclay Managed Funds Report. SGTF presently has a minimum investment size of $3 million. Through Propelx, however, it was accessible at a minimum check size of $25,000. We're immensely pleased to see its continued success. I especially want to highlight Tor A. Svelland the founder, who shared his insights on a webinar with our investors. Tor's expertise is truly exceptional and we are grateful to have been able to partner with them. With the introduction of hedge funds on the Propel(x), we welcomed Frank Sortino as an advisor to Propel(x). The hedge fund industry recognizes his name instantly as the inventor of the Sortino Ratio - a widely used metric to measure the performance of hedge funds alongside the Sharpe Ratio. Aside from his hedge fund expertise, Dr. Sortino is a warm, approachable individual with great enthusiasm for democratizing access to alternative investments - our missions and stars aligned in 2023! Looking ahead, my best guess is that the first half of 2024 might mirror the challenges of the past year, with ongoing turmoil and economic uncertainty. However, my optimism grows for the second half, anticipating positive shifts. As we enter the season of good tidings, let us prioritize spending time with our families and loved ones. These moments of joy and reflection serve as anchors, providing strength throughout the year, even in the face of stress. Wishing everyone the happiest of holidays and looking forward to the promise of 2024.

Once again, it was fantastic to meet global thought leaders at the FII Institute conference in Hong Kong . I had the privilege of participating in a panel discussion on "Who will map the future of civilization?" In my capacity as both an investor and an entrepreneur, I believe that entrepreneurs will play a pivotal role in shaping the future of civilization. Entrepreneurs will need to be supported by tech-savvy regulators. And global collaboration will be essential as the threats and opportunities we face today transcend borders. In the current age, cyber threats can infiltrate and potentially compromise national assets like power plants, cloud networks, and potentially even warheads. Without global cooperation, it will be difficult to identify and neutralize these threats. We are now beyond the point of considering ourselves as separate nations defined by man-made boundaries. To effectively address these threats and navigate the future, we must unite as “one world”. Eithne Treanor was our excellent moderator, and I was joined by François Chopard, Anla Cheng, and Blake Scholl on the panel. Happy to have been a part of this incredible event and already looking forward to the next one.  #FIIPRIORITY #HongKong

Looking forward to connecting with visionary problem solvers at the FII Priority, Hong Kong. Also looking forward to visiting Hong Kong again. One of my favorite places in Asia!

Convertible notes with high-interest rates - good or bad for investors? We are in a strange investment climate these days. It is difficult for many deep tech startups to raise financing in the best of times. Harder still in the recent past. To attract investors, convertible notes are offering higher and higher interest rates. Is this really good for investors? Convertible notes are a debt instrument, and it accrues interest over time. This interest though accrues over time and is converted along with the principal when the note converts to equity. For example, a $100,000 investment at 4% interest would earn $4,000 in a year and the total converted amount would be $104,000 in equity after a year. With rising interest rates and in a difficult fund-raising environment, entrepreneurs are offering higher interest rates on these notes. I recently saw a convertible note with a 12% interest rate, meaning a $100,000 investment would become $112,000 in equity after a year. Sounds attractive? But here's a catch and a big one - The U.S. tax regime requires investors to pay taxes on accrued interest, whether paid out in cash or not. In this example, for a 12% interest you'd pay taxes on $12,000. This could mean paying nearly $5,000 in taxes on a risky investment that may or may not yield returns (or even convert!) This leads to the question of the day: is high interest (or any interest for that matter) beneficial to investors in this context? Investors must recognize the nature of these debt instruments and the tax obligations they entail. I often find it surprising that many investors overlook these aspects. It’s crucial to be fully informed about the implications of convertible notes, especially in terms of taxes and risk.

Last month, I attended the #FII7 conference, an event that brought together a diverse group of global leaders, from heads of state to influential figures like Jamie Dimon and leaders of the International Monetary Fund and The World Bank. The conference was a melting pot of ideas and discussions, all centered around the critical challenges facing humanity today. The breadth of topics was astounding, each session offering deep insights into the ways we can collectively address these global issues. As an attendee, I found myself immersed in a world of innovative thinking and strategic planning, surrounded by many entrepreneurs and investors who shared a common goal of driving positive change. Aside from the enriching professional experience, the conference also offered me an opportunity to delve into a new culture. Visiting a new place for the first time, I was able to make amazing connections, learn from different perspectives, and come back with a plethora of action items and follow-ups. This experience was not just about the knowledge gained or the connections made, but also about the collective energy and determination to make a difference. Happy to have been a part of this incredible event and looking forward to the next one.