Showing posts from December, 2020

Why flipping matters

One of India's most notable and successful Angel investors Mr Sanjeev Bhikhchandani has come out vociferously against the trend of Indian startups flipping to foreign jurisdictions , particularly the US state of Delaware.  I have linked the article above and have also summarized his main assertions against the concept of flipping below : It robs India of intellectual property and data India loses tax revenues India loses Market capitalization Indian investors get shut out I am attempting to respectfully counter Sanjeev's comments with utmost regard for his work. Intellectual property and Data This is partially correct, since in a flip scenario the intellectual property ownership is passed on to the new parent company. The nuance here is that in the case of established start-ups where intellectual property has already been created this transaction happens at a certain prescribed value that brings in monies into India and is thus not a one sided transaction. In the case of fledgl