As a Private Equity firm, Bonsai Capital Ltd invests in technology and life-science companies still in the early stages of development. The managing partner of the firm, Ron Bauer, assists entrepreneurs and scientific founders in harnessing the value of their intellectual property and visionary ideas. He transforms their concepts and ideas into successful and thriving businesses. With more than two decades of experience in his field, he has exceptional expertise in private equity. Bauer has extensive expertise in gaming, technology, AI, or artificial intelligence, FinTech, Life Sciences and MedTech.
Bauer also serves London, and Los Angeles based Black Sheep Ventures Ltd. As the managing partner, he places his focus on blockchain technology, gaming, and immersive technology companies. Ron Bauer is a dynamic and exceptional financial engineer and venture capitalist, and his experience in investing in international private equities is extensive. He founded Bonsai Capital Ltd with his business partner with a focus on the sectors embracing cutting-edge technology. He frequently works with entrepreneurs and pioneers in the development of diagnostics, software, platform technologies, and medicines and has built an impeccable reputation for himself and his company. Ron Bauer is dedicated to the improvements technology is capable of providing in the future and attributes his success to his research skills, passion for the stock market, and interest in the growth of early startups.
What do you see for the future of entertainment and immersive technologies?
This field has extraordinary potential, and in 2016, $2.3 billion was invested in the sector. I believe the revenue generated in 2017 will continue to increase, and according to the prominent analysts, the revenue worldwide will be close to $14 billion. There have been several issues that have limited the growth and enthusiasm, but I believe these issues will soon be resolved. A key factor is the current pricing for VR headsets, and this pricing must be decreased to ensure success.
What direction do you see eSports heading in the future?
Bonsai Capital backs eSports Lab, and I see the industries of gaming and technology continuing to expand rapidly. eSports is an excellent investment because it is still at the beginning of the anticipated popularity. The field is fast paced, at the cutting-edge of technology, and the trading platforms are exceptional. A significant portion of the betting remains unregulated, and all expectations are that the revenue generated will exceed the other sports sources such as merchandising and tickets. eSports are well positioned to have a major impact on the industry.
What tips would you give modern entrepreneurs?
An entrepreneur must have expertise and skill in any business they decide to create. Passion and knowledge regarding the business field are critical to success. The company must also be in a market with a high demand to attract the interest of investors. I am always looking for entrepreneurs who are committed to their companies, who have put their heart and souls into their business. Many new entrepreneurs still need to learn that when a company is not working; it is best to walk away and start over. They become too attached to their creation, and not every idea is going to work. Holding on for too long expends unnecessary funding.
One of the mistakes I see most often in a startup business is in regards to the management of the cash-flow. If I do not believe the entrepreneur has a firm grasp on managing money, I will not invest. Most startups are on an extremely tight budget, and the feasibility of the concept and budget must be well documented. The profits must go towards growing the business, and the entrepreneur must only spend what is absolutely necessary. No investor will be happy if we see our money being spent on frivolities or unnecessary expenses.
I additionally find it crucial that the entrepreneur is aware of the current trends regarding their industry. Most of the startups that fail do so because of incompetence. The focus must be on learning and research to understand the specific business niche and stay informed. This enables the entrepreneur to adapt to new trends, situations, and circumstances. Adaptation will help keep a business stay ahead of their competitors, promote growth, and ultimately lead to success. What an entrepreneur must understand is the investors want them to succeed. Business is about making money, and if the company fails everyone loses. This is the reason I place so much effort into helping the new generation of entrepreneurs learn what they need to know to become successful.