I think it’s in our nature to be moved after hearing the struggles, failures and successes of others entrepreneurs.
Today I listened to 30 social entrepreneurs in LA pitch their causes to a room full of us coaches and volunteers in preparation of the LA social venture’s “fastpitch” contest.
I arrived to the event about ten minutes late, not because of the reputable “Indian standard time” but instead because of traffic jams from driving across LA that reminded me if only two possible places- Bombay and the infamous Hyderabad. Nonetheless I quickly realized that I made the proper decision to involve myself with this event and gained comfort that my idea for filming a documentary around it is very possible. What I witnessed today in the USC library conference room was something magnificent. Seasoned leaders humbled themselves after years of putting their hearts and souls into a cause to convince a room in 3 minutes they were ready for funding. This was a coaching session for an event 3 weeks away – I felt like Simon from American idol a few times with my critiques however the overall vibe was extremely supportive. When a pitcher got nervous and blanked out the room did their best to help them get comfortable so that they could regain composure. It struck me as odd watching so many aspiring civil servants compete against each other. Furthermore the level of class with the people in the room is something unmatched in my limited experience in business. I am just glad that I am not the judge who has to pick one of these many passionate entrepreneurs to fund their selfless cause to make LA a better place. There are some very clever ideas in this sector and my passion for social entrepreneurship was fueled today.
I left the event to drive across town for my MBA class “managing new and
growing ventures”. The class has one of my favorite professors of all time but she has absolutley no tolerence for lateness in her classes and therefore I risked several traffic violations to make it in time for class – afterall her brother did fly down from the bay area to speak at our class tonight.
I made it in time for one of the most inspiring/disturbing/strangely familiar story I have heard.
This CEO spoke about a 9 year venture that truly pushed the limits of a new entrepreneur. Mind you, two hours before 30 mother Theresa’s were pitching me on startups that were designed to save childrens lives, raise literacy rates, fund the arts, and save our beautiful oceans. Now I was in a classroom listening to a man who left a comfortable job just days before his son was born to start a company with his best friend who he later fired along with firing his father and 100 other employees months during the dotcom bust. Months before he regrettably refused a multi million dollar buyout. As cutthroat as that is, his business decisions – which we were fortunate to hear in a very detailed and logical presentation, were somehow absolutley sound. This was an entrepreneur who initially turned down half a million dollars to keep his best friend and founding partner in the company. (2 years prior to firing) Every decision he made was carefully calculated and although he admits that they are neither right or wrong- given the circumstance I agreed with each one. perhaps the most moving quote he shared was one regarding the autonomy entrepreneurs seek when they choose to start their own company. He stressed that this is a common misconception and in fact we entrepreneurs lack control of our environments and are similar to floating kayaks in a sea of large ocean liners – being pushed back and forth between their waves.
This has defintely been the hardest lesson for me over the past few years and through this mans humble account of a decade of experience, I have come to understand my own struggle in this chosen career. I got into this business thinking I could call the shots but quickly learned the power of financiers, competition, platforms like apple iTunes and other stakeholders.
He exited one venture mildly successful – diluted his and founding partners/investors shares to almost nothing. However after what seemed to be the 20th change in business models, he made a power play, against the initial opinion of the board, and directed a profitable exit for the company.
Perhaps my first venture may someday be looked as a failure. Tonight I gained a tremendous amount of inspiration that I am in the company of very intelligent and successful people who have also had years of hardships. I am comforted however that success is a lifelong challenge. These rolemodels of mine don’t define their success by any one successful venture. They in fact prefer thinking about their losses over their wins. Perhaps because they are easier to understand – many succesful entrepreneurs are quick to admit the starring role of luck in their successes I know I’ve certainly made my share of mistakes however i can look back at this early journey and stomach each loss with the assurance that “it’s not for nothing”. I don’t know if I will ever be successful enough to be able to hire and god forbid fire my own father, but it’s going take something major to extinguish the fire in my belly right now. I will continue to embrace the uncertainty of the future of my entrepreneurial pursuits knowing that as a failure I will be in the company of many legends, and by succeeding in survival i will hopefully avoid the comfort of quitters.
J
As previously mentioned – I lack Internet at my house, but wrote this post from my phone. Please excuse any typos.
Sent from my iPhone
Let’s deal with this current pirate crisis and start moving forward again as a civilization. Its amazing that with all the accomplishments humans have had throughout the years, we are so helpless in the ocean. NFL players drowning at sea, shark attacks, hurricanes demolishing cultural landmarks, and Somalian fishermen shaking the planet up by seizing a US ship. I have been upset about the pirate problems for years now, trying to figure out a safe way to film a documentary on the phenomenon. But now it is something everyone is interested in, and there is sure to be a blockbuster movie made about it.
Heres to the future – 3D printing, miniture medical devices, biofuels, smarter phone apps, electric cars, on demand entertainment, nanotechnology, cancer cures, gadgets powered by human bodies,
-Jason
Over in India, negotiations and bargaining have always been a part of local culture. Bollywood is no different. Indian movie producers and distributors are playing “hardball” with big theatre chains, refusing to release any new movies unless they get half of ticket sales revenue (during the first month of the release.) The industry has been suffering in recent months, and producers are having a tough time getting financing for new movies. This slum-dog-millionare–badass hasn’t seen a good Bollywood movie since I was in Hyderabad, and is very disappointed to hear about the cinematic slump in Bollywood. Hopefully both sides can reach an agreement.
-Jason
It’s no secret that VC funds have been dry in recent months. Last quarter, not a single VC backed business went public with an IPO, and overall its a frustrating time for entrepreneurs trying to raise capital for their start ups.
Google is adding another division of their rapidly growing business, and has a $100 million fund for start-ups.
“At its core, Google Ventures is charged with finding and helping to develop exceptional start-ups. We’ll be focusing on early stage investments across a diverse range of industries, including consumer Internet, software, clean-tech, bio-tech, health care and, no doubt, other areas we haven’t thought of yet.”
This is a good move for Google, and a breath of fresh air for the entrepreneurial community. I am interested to see what projects get funded by this.
-Jason
A leading dating site has found its match. This recession has helped Match.com realize a 26% growth in membership from last year. Existing users are also using the site more often. It makes sense, online dating is probably cheaper and more efficient than offline. People can screen and filter each other out, avoiding disaster dates and interpersonal encounters that cost money.
Some friends of mine started a dating site in Chicago that is blowing up, called CrushMe.com. They are Michigan entrepreneurs, MSU alumni, and have a fresh approach at online dating. Rather than focusing on the compatibility testing and long profile descriptions, its a site based on pictures. The tagline is “it all starts with a look.” Check it out. They are always throwing parties around in the windy city.
If you read part 1 of this blog, you would have certainly heard about my beloved Tata Indica that transported me around the dreadful streets of Hyderabad. Satyam drove it like a champ, and it played an instrumental role in my adventures. If you want a Tata for yourself, you no longer need to go to Hyderabad, or anywhere else in India for that matter. The Tata Nano might start selling in the US in 2011. It is the world’s cheapest car, selling for a mere $2500, allowing many Indians to own a car for the first time. Check back in 2 years to see if the imports come with a Satyam-like driver.
-Jason
I have seen bikes used for charging cellphones while attending a music festival in the desert at Coachella, and I have seen knifes being sharpened in India with energy generated from the same pedaling action, but today I have heard about technology being developed that would recharge mobile phones simply by the motion of walking. For a man who is notorious for running out of batteries on my cell phone in the worst times, such as downtown Chicago an hour before having to meet my ride back home to Kalamazoo, this is the technology I have been dreaming about.
At one time if you were to ask me about microfinance, I might have thought you were referring to the lack of money I have saved so far in my life. Today this micro financing concept was redefined to me while discovering the site http://www.kiva.org and I thought it worth mentioning this to all you bad asses out there.
Kiva is a non profit organization that is revolutionizing the concept of true microfinance through utilizing modern technology. The site allows for developing world entrepreneurs to receive funding from anywhere in the world through private donations and negotiable credit terms. So far there has only been a .2% default rate (apparently these entrepreneurs/lenders know something our sub prime friends missed out on) and $14 million from 144,000 lenders have been transferred through their network. It is a damn cool concept, and has been made so convenient through online social networking and mobile technology.
Personally, it breaks my heart to see the poverty everyday here in Hyderabad while riding in my Tata Indica to work, especially the same children day in and day out. Although I would like to give every homeless person something to help them out, it is an impossible endeavor for someone like myself who has no income. Further more, if I decided to give 100 rupees to someone, then I would be expected by the other hundreds of poor people to also give them money, and it just gets more depressing.
However, being a young entrepreneur who someone has taken a chance on, I can personally relate to the poor hard working, ambitious people on Kiva.com who are asking for seed capital for businesses. The required loans are usually under $1,000, and can be donated/lended by several people in collaboration. The process Kiva has set up for the loan transaction gives the lender peace of mind that the money they contributed went to specific use, monitored by a local financial institution in the developing-world nation. And for a person like myself who has every intention in returning the favor my investor gave me to another young visionary if and when I have the means to, this site makes it possible for me to start today with just $50.
Unfortunately Kiva does not appear to have a local field partner in Hyderabad, otherwise I would have Satyam on the site, with an avatar like the picture below except with his beaming smile next to the famous little white Tata Indica, and his written dream of being able to self support his growing family and bounce back from the hardships live has thrown at him. Perhaps we can start with this blog…. If/when I can get Satyam on Kiva.com, how many of the bad asses would contribute to the cause? (Remember, it is not a donation, it is a loan managed through Kiva and a local field partner)
Micro financially,
Jason
Sustainability has become a global buzzword. There are obvious trends with automobiles, hotels, manufacturing, and other sectors that drive companies to promote anything they do that helps the environment.
In India pollution is obviously a problem that the government is trying to control. Recently a list of the top ten polluting cities in the world was released, and 2 cities in India made the top 5. (Sukinda and Vapi). I have mentioned the traffic problems here, and as you can guess, over 70% of the pollution in the country is estimated to be caused by the vehicles. Interesting enough, there are only 7 cars owned for every 1000 people compared to western ratio where nearly 350-500 cars are owned for every 1000 people. With a growing middle class, India is estimated to add 2 million cars (passenger vehicles) to the roads by 2010. The manufacturers are marketing new cars that are as low as $2,500.
I can’t imagine what the traffic will be like in 2010 with sales of cars doubling per year. I have noticed that the government is slowly trying to control the traffic. Last week the 100,000 auto-rickshaws were on strike in Hyderabad. In 3 days the government has caught over 1000 of these 3 wheeled taxis having tampered meters, and is looking to enforce digital meters as a consequence. Even if the meters are installed free of cost, the drivers are refusing to install the meters. They are also demanding to carry 8 school children instead of 6.
Some people think that the move is a subtle move to get these vehicles off the roads. A proposal was recently introduced to replace all auto-rickshaws with taxis to ease traffic congestion by offering 4 year loans with cheaper interest rates. The private sector is also trying to help the cause by introducing a car that runs on air.
But, one of the more comical stories I have heard in on this topic is an initiative being taken to promote cycle rickshaws. Since fuel prices in India are insulated from global crude prices, Indian Oil Marketing Companies (OMC) lose money everytime a sale is made. Public sector oil companies are losing Rs. 240 Crore per day, or $1,546,804 as a result. Private sectors apparently are still free to charge what they want, but their pumps have been shut down by “predatory pricing from public sector OMC’s.” Satya will tell you that the lines at the pumps are very long these days.
Now…here are the details to the solution called Indivelop, which the OMC’s are promoting. They will themselves adopt the cycle rickshaws (different than auto-rickshaws), redesign them while employing riders who will be properly uniformed, groomed, and given social security, shelter, health care and a savings account at no cost. The rickshaws would generate extra revenue by selling advertising slots on the vehicles, uniforms, and rickshaw stands. Riders are going to have to obtain a license to operate these vehicles, and they are looking at creating battery operated rickshaws as well. Kramer might have been on to something….
Greenly,
Jason
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