Updated: 30 October 2021, 06:32 PM IST
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In this series, we discuss the future of dealmaking… moreIn this series, we discuss the future of dealmaking, how the advent of technology has changed its landscape and how digital infrastructure has made business building more viable. Sanjay Kukreja, Partner and Chief Investment Officer, ChrysCapital, believes there is an overwhelming climate of greed and fear in the new tech space, with greed being a dominant sentiment. Tech is a winner-takes-all environment and therefore, too many mistakes are being made. Thus, one must exercise caution when jumping into such a market as people may be attracted by the potential scalability and potential additional returns of their organizations. He also believes that profitability has also emerged with the advent of technology. Lalit Kumar, Partner – JSA, says that capital is rising, money is also burning and even though companies are incurring losses, they are going public and doing successful IPOs. He expects tech companies to continue to flourish in this new era. He also mentions how labor has shifted from physical documentation to virtual data, but that document flow is still good, even in virtual data rooms. Trisheet Chatterjee, Partner – JSA, says that when cross-border deals are discussed, there are a lot of promises before due diligence takes place. Target companies are seen to be the main stage between promoters and investors, however, a major mismatch is felt during the due diligence period. According to him, one of the biggest problems in the tech world in India is the protection of Intellectual Property (IP). IP, which is the backbone of any company, is taken very seriously abroad but is not given the same importance in India. There is a lack of knowledge about how to deal with and protect them, and even the courts and regulators do not know how to enforce IP firmly.
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