Shaw Yean Lim (@limshaw) header
Shaw Yean Lim (@limshaw) profile picture

CEO - @HFlywheel; prev. @MorganStanley @Stanford | Singapore, SF

Joined February 2009
1/ What is revenue-based financing (RBF)? It’s simple and works great for growing businesses. Flywheel provides a business $100k and withholds 10% of revenues until a fixed amount - $120k, is repaid in a fixed period of time - 18 months.
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What an amazing founding story @rabi_eva @tryevabot - Rabi pretended to be his own robot assistant to learn what customers wanted as gifts. #HustleDay2021
Harvard bonds due to be repaid in 2050, for instance, are deemed similarly safe to the US government’s – but they also offer inventors a higher yield… Via @finimize finimize.com/wp/news/investo…
My business partner @ericbahn was unable to raise VC money. One day he walked into Chase and secured a $250k loan. Was just thinking: no one wrote a Techcrunch article about that. Business was usual. But somehow we celebrate VC raises. Why is that?
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Highly recommend this, at least 3 months for every 5 years to see the world through new lenses.
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This! I think many ppl think "debt is bad" - and it can be - but if you understand how to put $1 in to get $1.01 out, debt is way cheaper than equity.
A quick heuristic for whether you should use debt or equity: Is this a money machine?
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Shaw Yean Lim retweeted
Now this is cool! Timelapse showing thunderstorms moving into the San Francisco Bay Area. Recorded in Pacifica today between 3-4am. #CAwx ⁦@NWSBayArea⁩
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Some uses of capital are clear money machines: $1 in = >$1 out. Buy inventory, sell it = money machine Buy FB ads, payback in 3 months = money machine It’s a question of certainty of quantity + timing of reruns and repeatability.
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Good learnings from thoughtful investors in SEA
0/ Such a fun AMA w/ @iterativeVC 's first batch - thought some of the Q&A might be helpful to others:
6/ We are long term partners - we have worked with awesome founders in any online business - SaaS, e-commerce to grow their business in a capital efficient way. Talk to @pauloglez90 to learn more.
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7/ The Biggest Myth: Equity investors perceive companies which have taken on RBF or any debt negatively – NOT TRUE. Investors care about ROI and their piece of the pie at that eventual payoff. Non-dilutive financing used well serves to increase that payoff. Win-Win.
"Female-led startups in a program (accelerators) increase the amount of debt they raise by nearly 2.5 times as much as female-led startups that did not participate in a program." bit.ly/3cdsnoR
#TaxReform affecting us all, possibly just in the nick of time in 2017. forbes.com/sites/kellyphilli…