Regicide, Kuwait, Niagara discussed on Slate Money

Slate Money
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Automatic TRANSCRIPT

Getting the furniture getting the coffee getting the big getting the lighting that the hard part about what managers have to daily basis i there are other companies like regicide believe that does a very similar to we work that is really just don't do it in kuwait and that's the key branding we work as all about the branding they've said oh we're this like hip co working community and it's just turn key and you can set it and forget it like it's very attractive to a lot of people and it's it's a company that essentially all they do really is rent off space and they are valued like company yeah i mean it's it's it's a magnificent con in some ways visit everybody that real estate is some house exit they what they haven't done is by office space rent out what they do is they rent office space out and they try and make money on like the margin between how much renting it for and how much they're paying and how much they're charging which in theory works but you know it hasn't been tested in downtown and they have a bunch of super interesting financial engineering which we are about to talk about because up you know like most fos growing startups they basically funded themselves historically with equity and the people who bore shows equity in we kept under your will for themselves as a general but now they're funding themselves with debt yet and that's really fascinating because losing an astonishing amount of money they lost a billion dollars last year on revenue hof that every dollar they take in they spend two dollars burning through cash and what's important here if you're creditor is that they essentially have long term liabilities and now adding to this whether you're talking about your and niagara talking about a seven year bond and their funding this with short term.

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