David Zalik takes big risks in founding GreenSky Credit

David Zalik took the biggest risk of his life when he founded GreenSky Credit back in 2006. The serial entrepreneur and former child prodigy cashed out every cent in equity that he had in order to finance the startup. All told, Zalik went all in with more than $10 million in asset-backed loans. If the loans failed to perform, Zalik would have lost literally everything he had.

While we hear stories like this all the time about the successes that bold entrepreneurs have had, the truth is that the stories we don’t hear are the more important ones. For every success story, there are 10 people who failed. But David Zalik will tell you that he wasn’t all that concerned about the prospects of losing it all. That’s because he already had enormous experience in forming new companies and he knew that with GreenSky Credit, he was sitting on a gold-mine of a business model.

The idea for GreenSky Credit came when Zalik was running his mobile and web development consultancy, OutWeb. He had a large number of home-improvement companies as clients, and he saw that they were frequently losing money on one type of deal. Customers who wanted to complete high-end home improvement projects would come in with unrealistically low ideas of what the final project cost would be. When they were told by the professionals what they could expect to pay, the resulting shortfall between the final cost and what they had budgeted was so great that these deals would often fall through.

Zalik knew that most of these homeowners were prime borrowers. He also realized that, even given the higher-than-expected costs, these homeowners would almost all recoup the costs of the renovation projects almost immediately in the form of increased home values. He saw an opportunity to originate instant, on-site loans that would allow everyone involved, including the banks making the loans, to win.

As a result, GreenSky Credit has become a $3.6 billion company that originates more than $4 billion in new loans per year. The company has found a niche market where it is adding real value for all parties involved.

https://www.glassdoor.com/Reviews/Greensky-Reviews-E937061.htm

Sahm Adrangi Does Not Like What EKC Has Done

Sahm Adrangi is the Chief Executive Officer of Kerrisdale Capital. In a surprising turn of events, the CEO has issued a negative report relating to the prospects and performance of Eastman Kodak Company. Adrangi says that KodakOne and KodakCoin are smokescreens that will be blown away soon. The Kerrisdale executive does not mince his words relating to the developments in which Eastman Kodak has seen its shares rise by over 187%. Adrangi cautions that the spike in the shares owned by Kodak is not based on facts but mere hype. Mr. Sahm Adrangi, further, observes that Kerrisdale holds a short position in the company and is set to gain; if Kodak fails as it is expected in the near future.

 

The Negative Report

The Kerrisdale Capital CEO says that Kerrisdale Capital is sure of smiling its way to the bank owing to the mistakes that EKC has made. In a report issued vial CNBC, the CEO points out that the recent rise of EKC shares are baseless, and termed them as hot air. EKC offers printing and imaging services to commercial clients across the globe. Prior to the rise in share prices, Eastman Kodak had announced a partnership in which it was seeking to launch an image licensing cryptocurrency platform powered by blockchain technology. In the CNB report, the Kerrisdale official says that the whole venture is not but smoke and mirrors.

 

How Eastman Kodak Will Be Affected

According to the CEO of Kerrisdale Capital, Sahm Adrangi, and the company in general, the concept that Kodak was selling regarding KodakOne and KodakCoin was a hoax, and that the two entities were unlikely to give Kodak customers a return for their investments. Pundits say that if the prediction by the Kerrisdale team does come to fruition, Kodak will be subjected to a rude shock for its business. Mr. Sahm Adrangi clarifies that since his company holds a short position, they stand to gain from the backlash and failure by Kodak to deliver on its promised business ventures.

 

About Kerrisdale

Kerrisdale Capital is a private equity services provider and an asset and investment manager in the USA. Kodak announced that it was launching a blockchain enabled licensing platform and a cryptocurrency. Kerrisdale says it does not believe, even for a second, what EKC are saying. Kerrisdale Capital specializes in long-term investments and an opportunistic venture at situations that are catalyzed by certain events. Although Kerrisdale has nothing to lose, it highlights that the practice demonstrated by the senior management at EKC is worth investigation by the SEC.

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