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Deep Nishar, MD, SoftBank, follows a simple Gujarati way to make money!

His father’s advice, to do business like a Gujarati, has helped him through his entrepreneurial journey.

, ET Bureau|
Apr 04, 2017, 10.30 AM IST
Deep Nishar, MD SoftBank.
Deep Nishar, MD SoftBank.
While SoftBank has created a $100 billion fund focusing on future technology, its MD Deep Nishar’s investment decisions are based on a simple lesson his father had taught him years ago.

Speaking at a tech industry event, the former LinkedIn executive recalled the time he was starting his own business after finishing his MBA from Harvard Business School in 2000. “My father asked me how I was capitalising it [the business].

My father was a self-taught man; he never went to school because of family circumstances,” said Nishar. Since his father didn’t know what venture capital was, Nishar explained it as being kind of a sleeping partner. Not happy with the explanation, his father pressed on the financial workings of such a fund.

Nishar then explained that the company would make losses for a few years, before it experienced the hockey stick effect — getting returns in the future. “My father then said, ‘Son, I have never understood your fancy degrees in different educational institutions.

I don’t understand this world of venture capital. But just remember, as a Gujarati, there is only one rule of business — you put in `1 today, you should get `1.30 at the end of the year.

Every other business will disappear at some point, but that’s the only business model that will stand the test of time’,” he said.

“Basically, he was giving me the lesson that free cash flow is the king,” said Nishar, who believes he will exceed SoftBank founder Masayoshi Son’s record of returns in the next decade.
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