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INDIAN INSTITUTE OF TECHNOLOGY ROORKEE A Course on TINKERING AND MENTORING Subject Code: TMI-101 PROF. NAVNEET ARORA Mechanical and Industrial Engineering Department IIT Roorkee INDIAN INSTITUTE OF TECHNOLOGY ROORKEE Part-A Mentoring  INDI...

INDIAN INSTITUTE OF TECHNOLOGY ROORKEE A Course on TINKERING AND MENTORING Subject Code: TMI-101 PROF. NAVNEET ARORA Mechanical and Industrial Engineering Department IIT Roorkee INDIAN INSTITUTE OF TECHNOLOGY ROORKEE Part-A Mentoring  INDIAN INSTITUTE OF TECHNOLOGY ROORKEE Mentoring Chapter-4 ACHIEVING EXCELLENCE - A Journey Through Self Exploration PROF. NAVNEET ARORA Mechanical and Industrial Engineering Department IIT Roorkee  INDIAN INSTITUTE OF TECHNOLOGY ROORKEE “I know not how I seem to others, but to myself, I am but a small child wandering upon the vast shores of knowledge, now and then finding a small bright pebble to content myself with while the vast ocean of undiscovered truth lay before me.” - Sir Isaac Newton What is Excellence? Excellence is not a Destination But a Journey that never ends. Excellence is not a mission but a way of life. It is not only Aptitude but Attitude which can take you to Altitude. 5 What Are We Going To Do? Aim: Achieving Excellence: Through Self-Exploration Here, Some proposals will be made, which will be required to be examined based on the following: - reasoning - true in reality - experientially verifiable Through this journey: Let us hope and wish All of us will be benefitted from joint dialogue Which starts in the classroom, but may continue beyond it as a dialogue within us, or even for the rest of our lives 6 Where are we today? History of Mankind - History of Progress What is Science? Understanding the physical reality around us What is Technology? Conveniences in newer ways Needs Identified so far 1. Peaceful co-existence at the level of human society 2. Education as a fundamental requirement Despite tremendous advancement and innovations, the Question still remains - “ Are we satisfied with the state of affairs today?” 7 The Root of all Problems “The problems which press down on humanity may be mostly political, economic and ecological, but their background remains moral and metaphysical.” - Paul Brunton 8 Present Scenario We face unlimited problems:  At Human Level: Lack of clarity on life - goals, contradictions, and stress  At Family Level - Human Relations: Lack of mutual understanding, Increasing mistrust, Insecurity, Generation gap  At Society Level: Increasing communal conflict, exploitation, strife, terrorism, and violence in various forms  At Nature Level: Environmental degradation in various forms, resource depletion, and threat to the very existence of the human race. 9 Need of the Hour It becomes essential: To find out what is really valuable to human beings. Technology- a means to achieve what is considered valuable. What is valuable to a human being is not within the scope of technology. What is Ethics/Value Education? - Subject that deals with ‘What is valuable to a human being?’ Present Education - In favour of skill generation and information enrichment. - Value dimension is to be added. Otherwise, this imbalance is responsible for all the above-mentioned problems. 10 Need of the Hour (contd…) To excel in life, Right Understanding at all levels: 1. As an individual human being 2. As a member of the family 3. As a member of society 4. As a unit in nature/existence is required. 11 Understanding The Needs of Self And Body Education Should Mean Development of Man’s Total Personality Human Being Self (I) Co-existence Body 12 Understanding The Needs of Self And Body (contd…) Self Body Happiness Physical Facility Need (e.g. Respect) (e.g. Food) In Time Continuous Temporary Quality/ Qualitative Quantitative Quantity (Feeling) (Required in Limited Quantity) Are these needs of different types or the same type? Are both types of needs important? Do we want fulfillment of both types of needs? What should be the priority between the needs of the Self (I) & the needs of the Body? 13 Understanding The Needs of Self And Body (contd…) Self Body Happiness Physical Facility Need (e.g. Respect) (e.g. Food) In Time Continuous Temporary Quantitative (Required in Quality/Quantity Qualitative (Feeling) Limited Quantity) Right Understanding/ Fulfilled by Physio-Chemical Things Right (positive) feelings Right Understanding, Right Feelings can’t fulfill the needs of the Body. The needs of the Self can't be fulfilled by Physio-Chemical Things. Both types of needs have to be understood separately. Both types of needs have to be fulfilled separately. In our life, what is the priority? And what should be the priority? - How much time & effort is spent on the right understanding & right feelings? - How much time & effort is spent on the physical facility? 14 The Needs of ‘I’ and theBody The need for 'I' is Happiness (Sukh), while the Body needs Physical facility (Suvidha). Feelings like Respect, and Trust give Happiness. Examples of Physical facilities are Food, Clothing, etc. The need for Happiness (Sukh) is Continuous, and need for Physical facility (Suvidha) is Intermittent. Example:- Need for Respect is Continuous, Need for Food is Temporary (Intermittent). Even Air in breathing is required by the Body intermittently. There is no need for the body, which is continuous. 15 The Needs of ‘I’ and the Body (contd…) The changing pattern of physical needs: When we try to perpetuate Physical faciltiy (Suvidha), the following pattern results. With time it successively changes from: Gharat i a traditional Necessary and tasteful mechanical device for grindingUnnecessary but tasteful Unnecessary wheat in other grains. and tasteless Intolerable It Example: also has Take anymechanism local delicious food to (Gulabjamoon). In the beginning, it satisfies my hunger and I find it delicious. Here it is Necessary and tasteful. regulate the speed, quality of flour (thick or fine), amount of grains But once my stomach falling – I find it difficult to eat though I still enjoy the is full out of pan. taste. Now it is Unnecessary but tasteful. If I continue eating, I do not enjoy the taste anymore. At this point, it is Unnecessary and tasteless. If I still go on, it becomes Intolerable. 16 The Needs of ‘I’ and the Body (contd…) Feeling and its Expression are two different things: We want the continuity of any naturally acceptable feeling (value) but not expression. Eg – when I visit a friend, he treats me with Respect by shaking my hand. But what if he does not release my hand after some time? Shaking hands is only an expression of Respect, not Respect in itself! Happiness (Sukh) is qualitative, whereas Physical facility (Suvidha) is quantitative: Example: The notion of quantity does not apply to Happiness (Sukh). For example, one can’t say that one needs 5 Kg of Trust or 2 meters of Respect. But one does quantify the food, clothes, means of transport, etc. 17  The Needs of ‘I’ and the Body (contd…) Right Understanding and Right Feelings ensure happiness (Sukh), while appropriate Physio-chemical Things ensure Physical facility (Suvidha) Human Being needs both – Happiness (Sukh) and Physical Facility (Suvidha). One can’t replace the other. Example: If I visit a friend – I desire that he treats me with Respect and provide food/water for my hungry/thirsty body. Imagine – I visit a friend, and he provides me with lots of delicious food but treats me with Disrespect. How would I feel? Another friend treats me with utmost warmth but does not even ask me for water. How would I feel in this situation? 18 The Needs of ‘I’ and the Body (contd…) A common mistake is that we mix the two sets: Happiness (Sukh) and Physical facility (suvidha). Working for a Physical facility (Suvidha), we assume that it will ensure Happiness (Sukh), but actually, we need to work for both- Happiness (Sukh) and Physical facility (Suvidha) separately. But the programs for Happiness (Sukh) and Physical facility (Suvidha) are qualitatively different. One can’t ensure the other. Introspection: Where are we investing most of our time presently? – Working for Physical facilities, or – Working for Right Understanding and Right feelings? 19 Gross Misunderstandings We Have Today 20 Distinguishing Activities of Self and Body 21 Distinguishing Activities of Self and Body 22 Important Implications of Self-Exploration Self-exploration is a process of – Knowing oneself and, through that, knowing the entire existence. Recognizing one’s relationship with every unit in existence and fulfilling it. Knowing human conduct and living accordingly. Being in harmony within and in harmony with the entire existence. Identifying our innateness and moving towards self-organization and self-expression. Self-evolution (evolving as a human being) through self- exploration. To conclude, the complete process of self-exploration yields right understanding as the tangible outcome. 23 Values for Self Development (to Excel) 1. Self Knowledge 16. Cleanliness-Environmental 2. Self Sufficiency 17. Moral Courage 3. Self Control 18. Good Health 4. Self-Education 19. Quick & Correct Decisions 5. Self Discipline 20. Accurate Judgment 6. Self-Esteem 21. Adventure 7. Self Confidence 22. Responsible Behaviour 23. Contentment 8. Self Appraisal 24. Creativity 9. Self Sacrifice 25. Punctuality & Consistency 10. Self Transcendence 26. Determination 11. Self Analysis 27. Motivation 12. Self Criticism 28. Trustworthiness & Loyalty 29. Systematic Approach 13. Cleanliness-Inner 30. Humility 14. Simplicity 15. Modesty 24 Summary Human being is a co-existence of Self (I) and Body Self (I) is consciousness. Its needs are fulfilled by activity of consciousness, i.e. Right Understanding & Right Feelings Body is material. Its needs are material (like food) and these needs are fulfilled by material, i.e., Physio chemical things The needs of consciousness can't be fulfilled by material The needs of material can't be fulfilled by consciousness The recognition & fulfillment of the body is definite The need of 'I' is Happiness (Sukh), and the need of the body is Physical facilities (Suvidha). The two needs are different, and the programs to ensure the two are also different. One can’t replace the other. 25 Understanding Values in Human-human Relationship “Man is here for the sake of other men- above all for those upon whose smile and well-being our own happiness depends and also for the countless unknown souls with whose fate we are connected by a cord of sympathy.” - Albert Einstein 26 Understanding Happiness 27 Understanding Prosperity Prosperity is the feeling of having more than the required physical facility. There are two basic requirements: 1. Right assessment of the need for the physical facility and its required quantity. 2. Ensuring the availability/production of more than the required physical facility. Rich – Money and only money Prosperous – Sound Health, Peace of Mind, Positive Attitude, Self Confident, Doing work with Love & Energy, Abundance of Wealth 28 Understanding Prosperity (contd…) While physical facility alone may suffice for animals, it is not adequate for human beings to be fulfilled. Under this condition, one is living with ‘animal consciousness.’ There are generally two kinds of people today: 1. Those lacking physical facility, unhappy and deprived 2. Those having the physical facility, and yet unhappy and deprived Try to find out where you are - at First or Second state ? To Excel in life, we really need to be in the following state, i.e., 3. Having physical facility, happiness, and prosperity. But, today, we seem to be at 1 or 2 and effort is generally for 2. We can see that so-called development today largely takes us from ‘1’ to ‘2’. 29 Understanding Excellence We usually want to win, be the best, be successful, to excel Let us understand excellence – Is it about being better than another in a particular area of life or something else? We will also explore the program for it is it through competition or collaboration? Excellence and competition are not similar. In excellence, one helps to bring the other to her/his level. In competition, he/she hinders the other from reaching to his/her level. Self Reflection: - How many students in the class can understand? - All can achieve excellence - How many students can come first in class? - Only one can be special 30 Competition And Collaboration/Cooperation Adverse impact of the feeling of Competition: On our happiness and prosperity On other human beings with whom we are interacting On society and nature We feel unhappy whenever we have a feeling of competition within Hinders the growth of others and makes them unhappy Promotes struggle, war, etc., in the society Over-consumption and therefore, exploitation of natural resources Collaboration/Cooperation  When we feel related to each other, we cooperate  Our natural acceptance is for relationship and cooperation 31 Competition And Collaboration/Cooperation Our perception depends upon our worldview. In today’s worldview, what do we assume? - There is a “Struggle for survival and survival of the fittest.” or - There is a relationship of mutual fulfillment in nature. Just ask yourself- When does our mutual growth/ competence become better? – When we help each other wherever needed – When we work separately in isolation – When we oppose/ misguide each other 32 Respect, Reverence, Glory And Gratitude 33 Family-Oriented Values 1. Maternal Love 9. Gratitude 2. Paternal Love 10. Mutual Respect 3. Caring and Sharing 11. Tolerance 4. Co-operation 12. Reverence 5. Spirit of Service 6. Harmony and Peace 7. Mutual Trust 8. Chastity 34 Society-Oriented Values 1. Spirit of Total Social Responsibility 2. Spirit of Service and Reform 3. Spirit of Reverence and Gratitude 4. Spirit of Respect for Life 5. Consideration for the Rights of Others 6. Spirit of Enthusiastic Performance of Constitutional Duties, Specially Fundamental Duties 7. Love for Noble Social Environment 8. Spirit of Harmony with Human Beings 9. Spirit of Special Service to Benefactors and Elders 10. Faith in Equality, Liberty, and Fraternity 11. Faith in Humanism, Social Justice, Democracy, and Value Saturated Secularism 35 Society-Oriented Values (contd…) 12. Power of Oration and Value-oriented Leadership Development 13. Spirit of Cooperation and Healthy Competition 14. Spirit of Missionary Life 15. Spirit of Pride in Composite Culture 16. Reverence for Famous Educationists, Statesmen, Reformers, Scientists, Spiritualists and Patriots 17. Respect for Charters of Human Rights, Rights of the Child, Rights of Women and the Aged 18. Spirit of Removing Defects and Deficiencies in Society 36 What Are We Actually Making Effort For? 37 Understanding The Harmony In Nature and Existence as Co-Existence Overall purpose of education should be : - To enable a human being to live a fulfilling life, in harmony with oneself and with family, society and nature. Dr. R.N. Tagore has lightly said in this context: “The highest education is that which does not merely give us information but makes our life in harmony with all other existences.” 38 Understanding The Harmony In Nature and Existence as Co-Existence (contd…) 39 Nature = Collection of Units 40 Nature = Collection of Units = 4 orders 41 Relationship of Mutual Fulfillment 42 Relationship of Mutual Fulfillment (contd…) 43 Relationship of Mutual Fulfillment (contd…) Physical order, Bio Order and Animal Order are enriching for Human Order, but Human Order (without right understanding) is not fulfilling for any of the 4 orders. Human Beings have natural acceptance for mutually fulfilling. Once human beings understand, they can be fulfilling for all four orders 44 Present- Day Problems are mainly due to lack of Understanding Resource Depletion - The resource is used at a rate which is faster than at which it is produced in nature. Pollution - The product is such that 1. It does not return to the cycle in nature or 2. It is produced at a rate that is faster than the rate at which it can return to the cycle in nature. 45 Role of Sanskar-based Education ORDERS UNITS SELF-OREGANISATION INHERITANCE Soil, Metal. Constitution Physical Existence Air based Plants, Bio Existence + Growth Seed based Trees Animals, Existence + Growth + Animal Breed based Insects Body Human Existence + Growth + Education- Human beings Body + Self Sanskar based 46 Understanding The Needs of Self And Body (contd…) Self Body Physical Facility (e.g. Need Happiness (e.g. Respect) Food) In Time Continuous Temporary Quantitative (Required in Quality/Quantity Qualitative (Feeling) Limited Quantity) Right Understanding/ Fulfilled by Physio-Chemical Things Right (positive) feelings Desire, Thought, Activity Eating, Walking… Expectation Knowing, Assuming, Response Recognizing, Fulfilling Recognising, Fulfilling 47 Harmony in Nature 48 Harmony in Nature (contd…) 49 Nature-Oriented Values 1. Love for Knowledge of Nature 2. Love for Truths and Beauties of Nature 3. Willing Obedience to the Laws of Nature 4. Development of Scientific Method, Scientific Faith, and Belief 5. Love for Understanding the Laws of Nature 6. Development of Scientific Temper 7. Spirit of Conservation of Nature 8. Spirit of Preserving Purity of Nature 9. Compassion for all Living Beings 10. Spirit of Service of all Human Beings, Animals, Birds, Trees, and Plants 11. Good Care of Physical Things 12. Hatred for Polluting Environment 50 Sum Up The role of human beings is to realize the relationship of mutual fulfillment amongst all four orders, i.e., Physical order, Bio order, Animal order, and Human order. Mutual fulfillment is inherent in nature; we don’t have to create it. For this, all that human beings need to do is to live with the feeling of understanding of co-existence. To excel in life, we need physical facility, happiness and prosperity around us. 51 PEOPLE-FRIENDLY AND ECO-FRIENDLY PRODUCTION SYSTEMS AND MANAGEMENT MODELS 52 Production Management Production Management is Planning, organizing, directing, and controlling production activities Eco-friendly production management: Manufacturing products with minimum exploitation of non-renewable resources and conserving natural resources People-friendly production management: Making production available locally (organic) and Participating in the rational use of resources 53 Being Eco-friendly Learning to consume items that cause minimal environmental harm Focussing on afforestation Focussing on green vehicles Buying energy efficient product Using the locally grown product Joining hands to combat pollution 54 SWOT Analysis S= Strength: We have tons of waste to recycle and reduce We can convert that waste to green energy efficiently W= Weakness: We don’t have the budget to convert the waste because it is expensive Awareness and participation of people is required It needs highly advanced industrial plants O= Opportunities: Government and private sector can fund on safer environment Media can be involved in creating awareness We can stop manufacturing non-biodegradable waste 55 Green Marketing Process of selling products &/ services based on environmental benefits. Such products or services directly or indirectly help to make the environment eco-friendly such as: Stopping the production of toxic and ozone-depleting substances Using renewable substances Not making excessive use of non-biodegradable materials Examples: 1. Grocers who advertise organic food 2. Green vehicles brand like Volkswagen, Ferrari, Lamborghini, etc., marketing on the ‘clean diesel’ and environment-friendly vehicles 3. Restaurants focusing on locally available food materials 56 3Rs of Waste Management Reduce: Consuming more and throwing away less Following the minimalist approach of using only as much as we need Examples: Using a fountain pen instead of a ballpoint pen, using a cloth napkin instead of disposable napkins, etc. Reuse: Using certain things for more than one purpose Examples: Old clothes can be used for various home purposes, using jars and bottles to store kitchen stuff, etc. Recycle: Process by which waste materials are used to make new products Materials like plastic, paper, metals, and glass are collected and separated to make new things 57 Criteria for Technologies Catering to fundamental human needs Compatible with natural systems and cycles Facilitating effective utilization of the human body, animals, plants, and materials Safe, user-friendly, and conducive to health Producible with local resources and expertise as far as possible Promoting the use of renewable energy resources Low-cost and energy efficient Enhancing human interaction and cooperation Promoting decentralization Durability and life cycle recyclability of products 58 Criteria for Production Systems Optimal utilization of local resources and expertise Economic viability and sustainability Priority for local consumption Matching the pattern of production with the availability /producibility in the local environment and the design of consumption Decentralized systems capable of meaningful employment of people in the community Facilitating production by masses and not mass production in a centralized mode Promoting individual creativity and a sense of accomplishment Using people-friendly and eco-friendly technologies Ensuring requisite quality of production Safe and conducive to the health of persons involved in production as well as others 59 Criteria for Management Models The whole unit works as a well-knit family Cooperative and motivational Ensuring correct appraisal of human labour Targeting employer-employee as well as consumer satisfaction and not profit maximization Sharing of responsibility and participative mode of management Continuous value addition of the persons involved Effectively integrating individual competencies and complementarity 60 Sum Up The production systems we introduce should be people-friendly and eco-friendly. Most prevailing systems are human innovations in consonance with the prevailing worldview. Hence, in spite of utilizing the advanced knowledge of science and technology, these are not conducive to sustainable human welfare. A careful study and evaluation of the systems of nature and the holistic traditional practices will be helpful in the development of suitable systems as per the current needs. 61 Responsibility of Engineers The central focus of the engineering profession is the application of scientific knowledge to meet societal needs Engineering connects pure science to society Engineers, therefore, have social responsibility 62 Social Responsibilities of an Engineer Commitment from the engineers to place public safety and interest ahead of all considerations Engineers take into account and show due regard for the consequences of their conduct for the well-being of others as well as for the impact of their work on society and the citizens This requires the engineer to determine all relevant facts concerning the design, development, and deployment and the possible outcomes of the choices that may positively/ negatively impact society and the citizens. 63 Engineering is a Dynamic Profession… The 21st century will be defined by some of the vast challenges now facing humanity These are energy and food security, competition, scarcity of natural resources, and climate change The demand for engineering skills is likely higher than ever to deliver sustainable engineering systems, low-carbon energy technologies, and robust physical infrastructure to protect against geophysical hazards such as sea-level rise and extreme meteorological events 64 Importance of Ethics The lack of right understanding and absence of ethics leads to following unethical practices: Corruption in multiple forms and at various levels Tax evasion, misappropriation, and misuse of public funds Misleading propaganda, unethical advertisements, and sales promotion Cut-throat competition Exploiting the weakness of consumers through various enticements Adulteration and spurious production Endangering the health and safety of the public at large Hoarding and over-charging etc. 65 Possible Solutions Promoting awareness about professional ethics by introducing new courses, refresher programs, and case studies Administering oaths and prescribing codes of ethical conduct for specific professional disciplines Setting up mechanisms for intensive audit inspection and monitoring the activities Framing more stringent laws and devising harder punishments for offenses Promoting transparency in working systems through mechanisms like RTI (right to information act), etc. 66 Possible Solutions (contd…) Carrying out ‘sting operations’ and widely publicizing serious lapses in the ethical conduct of the profession through media Encouraging whistle-blowing by individuals or groups Setting up vigilance commissions, ethics committees, tribunals, consumer protection forums, etc. Filing public interest litigations etc. 67 Main Criteria for Professionals Expert and specialized knowledge in the field in which one is practicing professionally Excellent manual/practical and literary skills in the profession A high standard of professional ethics, behaviour, and work activities while carrying out one’s profession Reasonable work morale and motivation Appropriate treatment of relationships with colleagues A professional accepts the responsibility and accountability for the decisions they make 68 Professional Excellence At the technical level, we talk about many things, but our life is about interacting with people, i.e., relationships. Here, we need personal excellence. Personal Excellence is something beyond technical excellence. Sometimes, the best technocrats can’t generate an atmosphere of trust and goodwill. Whatever profession one opts - First of all, one should be a good human being. 69 Professional Excellence (contd…) Professional Excellence Technical Excellence Personal Excellence Skills Knowledge Technology Vision Values Character 70 Professional Ethics (contd…) Vision: Destination and Direction Values: Governing Principles that set the personal and professional standard for decision-making and behaviour Character: Personal Qualities of a professional include loving, caring, sharing, courageous, confident, consistent, loyal, grateful, etc. 71 Qualities in Professional Ethics Honesty Trustworthiness Transparency Accountability Confidentiality Respect Obedience Loyalty 72 Tips for Achieving Professional Excellence Utilize the strengths of others and assist in overcoming weaknesses. Appreciate (back and front) but Condemn in isolation. Have a personal touch. Show faith in others. Strict to your words. Work as a team. Remain Positive and in Prayer mode. 73 Our Duty “We live in a world which is full of misery and ignorance and the plain duty of each and every one of us is to make the every corner of the world, which he can influence less miserable and less ignorant than it was when he entered the world.” - Prof. Huxley 74  Model for Achieving Excellence Physical Growth Mental Growth SUCCESS Economic Growth Social Growth Spiritual Growth Excellence is to Succeed in All Spheres of Life & Achieve a Balanced Growth. 75 Role of 5Ds to Excel in Life Direction Determination Discipline Dedication Decision-Making 76 Before We Leave Let us always remember this guiding torch… Oath To explore the best within me and to give to society & Nature the best possible, I hereby take the following pledges: I will be my best friend and refrain from all addictions and vices. I will make my Parents proud of me. I will make my Teachers and IIT Roorkee proud of me. I will perform my duty with full commitment, sincerity, and honesty. I will ensure my acts enhance the image of my Country. I will be concerned, respectful, and helpful to every living being. I will love nature and contribute to conserving its resources. It is not the end… it is the beginning… 77 Let us join this group (Optional)  INDIAN INSTITUTE OF TECHNOLOGY ROORKEE Tinkering and Mentoring (TMI-101) Mentoring Funding Opportunities, Business Plan and Case Studies Dr. Apurv Kumar Yadav, Assistant Professor, Department of Electrical Engg., Indian Institute of Technology, Roorkee EML: [email protected] URL: http://apurv.ee.faculty.iitr.ac.in/index.html  Start-up Difference between entrepreneur or businessmen ? Difference between start-up and business ? Apurv Kumar Yadav, Department of Electrical Engineering, IITR 2  Start-up Funding A startup requires funding for the following purposes Prototype creation Product development Team building Working capital Legal and consulting services Raw materials and equipment Licenses and certifications Marketing and sales Office space and admin expenses It is important that the founder must be aware of for what they are raising funds for. Outlay: Fixed costs plus capital and investments. Income: This is the projected income. Apurv Kumar Yadav, Department of Electrical Engineering, IITR 3  Understanding of the Funding The ‘J-curve’ or ‘hockey stick curve’ for capital demand. Initial negative cash flow in amounts equal to the area labelled A is gradually offset by sales to reach break-even point (B). Thus A equals total investment needs When positive returns are achieved, the company eventually reaches a point where investments have been covered, i.e. the area of A is equal to the area of C. This equates to the basic RoI (return on investment) time. When further profits are returned – typically when D > 35% of C – then investors are ready to sell to later investors happily (the investors make money). Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 4  Types of Startup Funding Working Equity Financing Debt Financing Grants Capital A grant is an award, usually Equity financing involves Debt financing involves the financial, given by an entity selling a portion of a Definition borrowing of money and to a company to facilitate a company's equity in return paying it back with interest. goal or incentivize for capital. performance. There is no component of Invested Funds to be repaid There is no component of Nature repayment of the invested within a stipulated time frame repayment of the invested funds. with interest funds Financer: There is a risk of Financer: There is no Financer: The lender has no the startup not meeting the guarantee against his control over the business's goal or objective for which investment. operations. the grant has been provided. Risk Startup: There is a risk of the Startup: Startups need to Startup: You may need to startup not receiving a portion give up a portion of their provide a business asset as of the grant due to several ownership to shareholders. collateral. reasons. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 5  Types of Startup Funding Cont. Working Equity Financing Debt Financing Grants Capital Startups need to Grants are distributed in While startups are under lesser constantly adhere to different tranches w.r.t the pressure to adhere to a repayment timeline fulfilment of the Threshold of repayment timeline, investors which results in more corresponding milestone. Commitment are constantly trying to achieve efforts to generate cash Thus, a status is constantly growth targets flows to meet interest working to achieve the repayments milestones laid down. Return to Capital growth for investors Interest payments No Return Investor Equity Investors usually prefer Debt Fund has very less Involvement No direct involvement in to involve themselves in the involvement in in Decisions decision making decision-making process decision-making Central Government, State Angel Investors, Self-financing, Banks, Non-Banking Governments, Corporate Family and Friends, Venture Financial Institutions, Sources Challenges, Grant Capitalists, Crowd Funding Government Loan Programs of Private Incubators/Accelerators Schemes Entities https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 6  Stages of Startups and Source of Funding Multiple sources of funding for startups are available. Typically, the source of funding depends on the stage in which startup is present. Ideation Stage This is the stage where the entrepreneur has an idea and is working it. At this stage, the amount of funds needed is usually small. Additionally, at the initial stage in the startup lifecycle, there are very limited and mostly informal channels available for raising funds. The funding acquired at this stage is called as pre- seed stage. Typical, channels of funding include Bootstrapping/Self-financing: Bootstrapping a startup means growing the business with little or no venture capital or outside investment. It means relying on your savings and revenue to operate and expand. This is the first recourse for most entrepreneurs as there is no pressure to pay back the funds or dilute control of your startup. Friends & Family This is also a commonly utilized channel of funding by entrepreneurs still in the early stages. The major benefit of this source of investment is that there is an inherent level of trust between the entrepreneurs and the investors Business Plan/Pitching Events This is the prize money/grants/financial benefits that are provided by institutes or organizations that conduct business plan competitions and challenges. Even though the quantum of money is not generally large, it is usually enough at the idea stage. What makes the difference at these events is having a good business plan. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 7  Stages of Startups and Source of Funding Cont. Validation Stage At this stage, a startup has a prototype ready and needs to validate the potential demand of the startup’s product/service. This is called conducting a ‘Proof of Concept (POC)’, after which comes the big market launch. The funding acquired at this stage is called as seed stage. A startup will need to conduct field trials, test the product on a few potential customers, onboard mentors, and build a formal team for which it can explore the following funding sources: Incubators Incubators are organizations set up with the specific goal of assisting entrepreneurs with building and launching their startups. Not only do incubators offer a lot of value-added services (office space, utilities, admin & legal assistance, etc.), they often also make grants/debt/equity investments. Government Loan Schemes The government has initiated a few loan schemes to provide collateral-free debt to aspiring entrepreneurs and help them gain access to low-cost capital such as the Startup India Seed Fund Scheme and SIDBI Fund. Angel Investors Angel investors are individuals who invest their money into high-potential startups in return for equity. Reach out to angel networks such as Indian Angel Network, Mumbai Angels, Lead Angels, Chennai Angels, etc., or relevant industrialists for this. Crowdfunding Crowdfunding refers to raising money from a large number of people who each contribute a relatively small amount. This is typically done via online crowdfunding platforms. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 8  Stages of Startups and Source of Funding Cont. Early Traction Stage At the Early Traction stage startup’s products or services have been launched in the market. Key performance indicators such as customer base, revenue, app downloads, etc. become important at this stage. The funding acquire at this stage is called as Series A stage. Funds are raised at this stage to further grow the user base, product offerings, expand to new geographies, etc. Common funding sources utilized by startups in this stage are: Venture Capital Funds Venture capital (VC) funds are professionally managed investment funds that invest exclusively in high-growth startups. Each VC fund has its investment thesis – preferred sectors, stage of the startup, and funding amount – which should align with your startup. VCs take startup equity in return for their investments and actively engage in the mentorship of their investee startups. Banks/Non-Banking Financial Companies (NBFCs) Formal debt can be raised from banks and NBFCs at this stage as the startup can show market traction and revenue to validate its ability to finance interest payment obligations. This is especially applicable for working capital. Some entrepreneurs might prefer debt over equity as debt funding does not dilute equity stake. Venture Debt Funds Venture Debt funds are private investment funds that invest money in startups primarily in the form of debt. Debt funds typically invest along with an angel or VC round. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 9  Stages of Startups and Source of Funding Cont. Scaling Stage At this stage, the startup is experiencing a fast rate of market growth and increasing revenues. The funding acquire at this stage is called as Series B, C, D, E. Common funding sources utilized by startups in this stage are: Venture Capital Funds VC funds with larger ticket sizes in their investment pool provide funding for late-stage startups. It is recommended to approach these funds only after the startup has generated significant market traction. A pool of VCs may come together and fund a startup as well. Private Equity/Investment Firms Private equity/Investment firms generally do not fund startups. However, lately some private equity and investment firms have been providing funds for fast-growing late-stage startups who have maintained a consistent growth record. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 10  Stages of Startups and Source of Funding Cont. Exit Option Mergers & Acquisitions The investor may decide to sell the portfolio company to another company in the market. In essence, it entails one company combining with another, either by acquiring it (or part of it) or by being acquired (in whole or in part). Initial Public Offering (IPO) IPO refers to the event where a startup lists on the stock market for the first time. Since the public listing process is elaborate and replete with statutory formalities, it is generally undertaken by startups with an impressive track record of profits and who are growing at a steady pace. Initial Public Offering is the first time that the stock of a private company is offered to the public. Issued by private companies seeking capital to expand. It is one of the most preferred methods by investors to exit a startup organization. Selling Shares Investors may sell their equity or shares to other venture capital or private equity firms. Buybacks Founders of the startup may also buy back their shares from the fund/investors if they have liquid assets to make the purchase and wish to regain control of their company. Distresses Sale Under financially stressed times for a startup company, the investors may decide to sell the business to another company or financial institution. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 11  Why Do Investor’s Invest Investment options (per annum) Saving Bank: 2 to 5% Fixed Deposit: 5 to 8% Gold: 10 to 12% Mutual Fund: 12 to 15% Equity: 15 to 30% Real Estate: 2 times in 5 to 7 years Start-up: Exponential returns Investor: High risk and high return approach. Apurv Kumar Yadav, Department of Electrical Engineering, IITR 12  Investor’s Outlook (What Do They Look) Objective and problem solving The offering of any startup should be differentiated to solve a unique customer problem or to meet specific customer needs. Ideas or products that are patented show high growth potential for investors Management and Team The passion, experience, and skills of the founders as well as the management team to drive the company forward are equally crucial in addition to all the factors mentioned above. Scalability and Sustainability Startups should showcase the potential to scale in the near future, along with a sustainable and stable business plan. They should also consider barriers to entry, imitation costs, growth rate, and expansion plans. Customers and Suppliers Clear identification of your buyers and suppliers. Consider customer relationships, stickiness to your product, vendor terms as well as existing vendors. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 13  Investor’s Outlook (What Do They Look) Cont. Competitive Analysis Consider the number of players in a market, the market share, obtainable share in the near future, product mapping to highlight similarities as well as differences between different competitor offerings. Sales and Marketing No matter how good your product or service may be, if it does not find any end-use, it is no good. Consider things like a sales forecast, targeted audiences, product mix, conversion and retention ratio, etc. Exit Avenues A startup showcasing potential future acquirers or alliance partners becomes a valuable decision parameter for the investor. Initial public offerings, acquisitions, subsequent rounds of funding are all examples of exit options. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 14  Steps to Startup Fund Raising The fund raising process can be divided into following steps: 1. Accessing the need for funding The startup needs to assess why the funding is required, and the right amount to be raised. 2. Assessing Investment readiness Any investor will take you seriously if they are convinced about your revenue projections and their returns. Investors are generally looking (already discussed in previous slides) 3. Preparation of Pitch deck (in future slides) 4. Investor Targeting Every investor has an theory which is a strategy that the venture capitalist fund follows. Their theories identifies the stage, geography, focus of investments, and differentiation of the firm. One can gauge it by thoroughly going through the company website, brochures, and fund description. To target the right set of investors, it is necessary to research their mission, their past investments in the market, and speak with entrepreneurs who have successfully raised equity funding. This exercise will help you: Identify active investors Their sector preferences Geographic location Average ticket size of funding Level of engagement and mentorship provided to investee startups Apurv Kumar Yadav, Department of Electrical Engineering, IITR 15  Steps to Startup Fund Raising Cont. 5. Due diligence by interested investors Angel networks and VCs do a thorough diligence of the startup before finalizing any equity deal. They look at the startup’s past financial decisions and the team’s credentials as well as background. This is done to ensure that the startup’s claims regarding the growth and market numbers can be verified as well as to ensure that the investor can identify any objectionable activities beforehand. If the due diligence is a success, the funding is finalized and completed on mutually agreeable terms. https://www.startupindia.gov.in/content/sih/en/funding.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 16  Preparation of Pitch deck The initial pitch presentation (this could be a PPT or a PDF document) should not be more than 12 - 15 slides. Mostly comprises of visual charts, images, bullets. It is like a story telling backed with facts, research, conviction and passion. Stick with time allotted to you, do not bluff, thorough with facts, be discrete and precise. Best for equity fund raising, searching co-founders, accelerator applications. Intended for Angel investors, VCs, crowdfunding platforms, general public At this stage, details and numbers are not necessary. they are keen to understand if the concept addresses a real opportunity, if the business case is strong, if the team is well rounded, competent & committed, and the traction that the team has been able to achieve so far. Following points to be covered 1. Cover slide Company name and logo Contact details (city, e-mail, mobile, URL) One line that clearly describes the concept/product/service https://www.startupindia.gov.in/content/dam/invest- india/Templates/public/Tools_templates/internal_templates/pitch_guidelines/Pitch%20deck%20Guidelines.pdf Apurv Kumar Yadav, Department of Electrical Engineering, IITR 17  Elements of Pitch deck 2. Team Credentials : Brief background , academics, experience Complementary skills, Key Responsibilities Advisory Board Equity structure 3. Solution to problem What is the problem being solved Explain why your customers need your solution Mention what they are currently doing and how your product/service is a better solution 4. Product/Technology Overview Highlight the uniqueness of the product or service or technology and NOT the technical details for each feature in the product/solution/service 5. Business or Earning Model This is about how you will make money from this business opportunity ·This is NOT the excel sheet, in simple terms, this is about who will pay how much and to whom for your product Monthly /Annual/ Subscription model (eg Netflix / Amazon prime) Aggregator fees / commission (Amazon / Flipkart / Bigbasket) Apurv Kumar Yadav, Department of Electrical Engineering, IITR 18  Elements of Pitch deck 6. Size of the Market Opportunity TAM (Total Addressable Market), SAM (Serviceable Available Market), SOM (Serviceable Obtainable market) Competitive, landscape, Positioning. Potential Be clear about where and who is going to buy your product/service and how much would they pay for it This section is NOT about what your plans are, but about what the size of the market is. This section should therefore give a sense about how many customers are there in your target market and at what price are you selling your product to them, what is the revenue potential if all of them were to buy (not that they will, but this is to give an indication of what the size of the market is) https://blog.hubspot.com/marketing/tam-sam-som Apurv Kumar Yadav, Department of Electrical Engineering, IITR 19  Elements of Pitch deck 7. Current Traction What have you achieved so far – product, customers, revenues, etc. Your Status Topline / Bottomline / Market presence/ Product Range / Customer segment Include photographs, if possible (e.g. if you have physical stores or products that you manufacture or office pictures) 8. Competitive Landscape Who are currently or in future likely to compete against your product/service and what is your plan to win this battle? Explain why are you better than your competitors What kind of entry barriers are there in the industry ? Steps to stop or delay competition https://www.startupindia.gov.in/content/dam/invest- india/Templates/public/Tools_templates/internal_templates/pitch_guidelines/Pitch%20deck%20Guidelines.pdf Apurv Kumar Yadav, Department of Electrical Engineering, IITR 20  Elements of Pitch deck 9. Current financials and Projections Summary of your financials for 3 years (key figures like annual revenue, profits, cashflow, etc.). How will you scale, expansion plans Go to Market, Product market fit, plans for new product range Break-up of your costs into CAPEX (Capital Expenditure like land, machinery, buildings) and OPEX (Operating Expenditure like salaries, electricity, raw materials, fuels, marketing) Cover the unit economics, i.e. how much revenue do you get per transaction/customer, how much does it cost you to service that customer/order, what is your customer acquisition cost (CAC). 10. Funding needs, and Proposed Valuation Describe how much money you want to raise and its planned usage Mention if there are other co-investors (or others who have already committed) Clearly indicate how long will these funds last and what you will be able to achieve with it Clearly mention if you are going to require follow-on capital, and if so, how much The valuation you are seeking for this round https://www.startupindia.gov.in/content/dam/invest- india/Templates/public/Tools_templates/internal_templates/pitch_guidelines/Pitch%20deck%20Guidelines.pdf Apurv Kumar Yadav, Department of Electrical Engineering, IITR 21  Elements of Pitch deck 11. Current Equity Structure, Fundraising History and Investors Table of current equity holding (cap table) How much money have you invested? Mention previous investment history, including year, amount and investors 12. Risk Mitigation Identify risks involved : Legal/ technological/ political/regulatory/ environmental Plan to mitigate these risks 13. Exit Options How do you think the investors can exit (i.e. who will buy their equity or do you feel that this can be an IPO) If you can, give examples of exits in your industry (or comparable examples) https://www.startupindia.gov.in/content/dam/invest- india/Templates/public/Tools_templates/internal_templates/pitch_guidelines/Pitch%20deck%20Guidelines.pdf Apurv Kumar Yadav, Department of Electrical Engineering, IITR 22  Elevator Pitch Summary of overall pitch in 30 to 40 sec What benefits does it offer the customer? What is the RoI? How is the customer to be reached? Which methods are to be used? Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 23  Business Plan A business plan is a long document that contains a detailed description of your business and business plan. Unlike a pitch deck, a business plan is prepared as a word document and often includes 30 up to 300 pages. Pitch Deck Business Plan Format Power point Word document Length 12-15 slides 30-300 pages long Design Visual (bullets, charts, Mostly Plain text images, bullet points) Best for Equity fundraising, finding Grant applications, Debt co-founders, accelerator fundraising application For whom? Angel investors, VC firms, Public institutions, Debt Crowdfunding platforms, investors banks general public https://sharpsheets.io/blog/startup-business-plan-vs-pitch- deck/#:~:text=No%2C%20because%20the%20business%20plan,Employees%20and%20team%20structure Apurv Kumar Yadav, Department of Electrical Engineering, IITR 24  Elements of Business Plan Typically the contents of a business plan will consist of the 16 classical elements: 1. Executive Summary 2. The Business Idea 3. Background* 4. Ownership ands Company Structure 5. The Team: Leadership, Board of Directors, Accountants and Lawyers 6. The Product 7. The Patent Situation* 8. The Marketing Plan 9. Sales and Distribution 10. Competitors 11. Customers 12. Agreements and/or Alliances* 13. The Budget 14. Investment Needs 15. Any Barriers 16. Profit and Exit *- Optional Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 25  Elements of Business Plan Cont. 1. Executive Summary (like a Elevator pitch) Venture capitalists receives 1000 business plans per day. That means that the Executive Summary has to be very well written in order to get attention. It should be clear, concise and not one single word or too long. Normally it is the part that is written last, since many experience that the process of writing the rest of the business plan helps 2. Business Idea It should start with a description of which problems the product solves and what advantages it offers to the customer, and the advantages it has over competing products/services. It explains how processes operate normally, what the innovation is, and how the entrepreneur will take advantage of this. It includes market analysis using tools Porter’s Five Forces: The classic analysis of how attractive a potential market is. SLEPT: A kind of extended Porter’s, dealing with the Social, Legal, Economic, Political, and Technological influences from the environment acting on a business. Strategic Group Mapping: An extension of Porter’s, used to identify Critical Success Factors. SWOT: Estimating the proposed company’s (or product’s) ability (Strengths, Weaknesses, Opportunities and Threats) to conquer the intended market. 5 Boston Matrix: Established firms can analyze their current portfolio of products, divide them into ‘Stars’, ‘Cash Cows’, ‘Problem Children’ and ‘Dogs’ and thus decide which products should receive more or less investment. Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 26  Elements of Business Plan Cont. 3. Background If applicable and if it adds to the prestige, then some background information can be added. For example, association with research labs and awards. 4. Ownership and Company Structure It includes the name and number of the company, and their ownership, together with any other relevant information (e.g. accreditation, membership of professional organizations, etc.). There should be a paragraph detailing how many others are employed, together with a projection about the company size in the future. It may also be relevant to add a paragraph about the organization or mention any other special organizational aspect. 5. Team: Leadership, Board of Directors, Accountants and Lawyer The leadership will probably consist of the original inventors and entrepreneurs, together with any professional help, which has been bought or borrowed. This section should list their names, what their functions are, their affiliations and a brief CV of each one. The Board of Directors is extremely important. Typically they are ‘bought in’ experts from various fields and have excellent networks. They may work for as little as two hours per quarter (i.e. attend quarterly board meetings) bringing in their advice, network and business contacts. Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 27  Elements of Business Plan Cont. 6. Product A brief description of what the product is, what it can do and how it differs from other products. If the product is not complete, then milestones should accompany the development plan. Here product lifetime and expected frequency of buying may be relevant. It may also be the best place for pricing strategy. Note that price strategy can be different for different customer groups. Drawings, blueprints, etc. of the product can be attached as an appendix and should not be part of the business plan. 7. Patent Situation Here the intellectual property rights situation is briefly explained, including a description of competing patents. Completed patents or patent proposals should be attached as an appendix and should not be part of the business plan. 8. Marketing Plan It is a written statement of the marketing objectives, strategy, timetables, and goals. This can be about the acquisition of new customers, or the increased retention of existing customers. The marketing plan also details the implementation of the key activities, including the roll out of the actual marketing, advertising and sales activities. These are summarized and collated – often in tabular form – along with their costs. Costs can be broken down further and cross-correlated (e.g. budget by manager, budget by market, budget by product, budget by type, etc.). Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 28  Elements of Business Plan Cont. 9. Sales and Distribution These may include any special advantages the company has, as well as special activities (Roll-Out, discounts, etc.). Price policy can be discussed here, if not already a part of the product description. 10. Competitors There are always competitors (if not immediate, then at least potential) and baldly stating that competitors do not exist will, unless it is an extremely special circumstance, make the business plan appear unrealistic. Competitors should be listed together with a mini-SWOT for each one, which realistically indicates the risks that each one poses. 11. Customers This section should specify which customer segment is/are the primary target group(s) and which are the secondary, tertiary, etc., if possible with a time scale (if not already mentioned in the marketing plan). 12. Any Agreements and/or Alliances This section specifies any agreements that have been made with other companies, and any formal alliances, which have been signed, or are in the process of being negotiated. This may include suppliers, agents, franchising, resellers and retailers, etc. Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 29  Elements of Business Plan Cont. 13. Budget If the company has been running for some time, then the previous year’s budget and accounts can be used. In principle, this consists of overall revenue, net profit, inventory cost, other sources of income, raw material and other supplies, other external costs (insurance, etc.), salaries costs, depreciation, earnings versus costs, tax, capital expenditure, operating expenditure. This needs to be done by the accountant. Accountant is a must. 14. Investments Needs Investment needs follow logically from the budget. Figures come from two sources: Outlay: Fixed costs plus capital and investments. These may well come out of your marketing plan for large and/or high tech projects, development costs are a major outlay. Income: This is the projected income, i.e. represents your best supposition, based on the marketing plan, but is approximate by its very nature When Outlay > Income, needs investment. When outlay= income then breakeven point is reached. Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 30  Elements of Business Plan Cont. 15. Any barrier Barriers (if any) must be openly and honestly discussed, together with rescue scenarios. Barriers can be divided into two kinds: external and internal. External could, for example, be changes in law, loss to property. Internal factors include a key worker leaves, or the company cannot attract sufficient manpower of the right quality. 16. Profit and Exit An investment should be a ‘win-win situation’ for investor and company alike. Thus there must be a clear exit strategy from the start, a strategy that everybody knows about and explicitly approves of. Robert. B. Mellor, “Entrepreneurship for everyone: a student textbook” Apurv Kumar Yadav, Department of Electrical Engineering, IITR 31  Equity Distribution: Examples Equity Dilution Return (after Seed Stage Series A Series B Series C series C) Pre-Money Valuation (INR) 10,00,000 10,00,000 40,00,000 90,00,000 Post-Money Valuation (INR) - 12,50,000 50,00,000 1,00,00,000 Percentage(%) Founder A 50 40 32 28.8 Founder B 25 20 16 14.4 Founder C 15 12 9.6 8.64 Founder D 10 8 6.4 5.76 Investor A (2,50,000) 0 20 16 14.4 1440000 Investor B (10,00,000) Not invested 20 18 1800000 Investor C (10,00,000) Not invested 10 1000000 100 100 100 100 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑟𝑎𝑖𝑠𝑒𝑑 𝑃𝑜𝑠𝑡 − 𝑚𝑜𝑛𝑒𝑦 𝑣𝑎𝑙𝑢𝑎𝑡𝑖𝑜𝑛 = 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑒𝑞𝑢𝑖𝑡𝑦 Pre-money valuation depends on the company track record, traction, etc. (generally decided by the founders in consultation with the advisors, board of governors, previous investors, etc. There is no such formula for pre-money valuation). The company valuation is generally determine by post-money valuation. Apurv Kumar Yadav, Department of Electrical Engineering, IITR 32  Marketing Analysis Tools- SWOT Analysis SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business. SWOT Analysis is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future. SWOT can also uncover areas of the business that are holding you back, or that your competitors could exploit if you don't protect yourself. Positives Negatives https://www.mindtools.com/amtbj63/swot-analysis https://www.edrawmax.com/article/uber-swot-analysis.html Apurv Kumar Yadav, Department of Electrical Engineering, IITR 33  Lean Canvas Model https://railsware.com/blog/lean-canvas/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 34  Example: Lean Canvas Model https://railsware.com/blog/5-lean-canvas-examples/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 35  Common Funding Options GoI schemes, eg. DST (Nidhi Prayas), MEITY, Startup-India, TIH, Start-up competitions, state- level funding. https://msh.meity.gov.in/ https://www.startupindia.gov.in/content/sih/en/government-schemes.html http://tdb.gov.in/seed-support-scheme/ https://www.nidhi-prayas.org/#parentVerticalTab11 Incubation centers at all the major education centers (eg, IITs, IIMs). Get into the network of the investors. Apurv Kumar Yadav, Department of Electrical Engineering, IITR 36  CASE Study BluSmart BluSmart mobility was founded in 2019 with the aim to offer urban India a ride-sharing experience in a sustainable manner. The company is the country's first electric shared smart mobility platform that offers efficient, affordable, intelligent, and sustainable mobility. BluSmart Mobility is founded by Anmol Sing Jaggi, Puneet Singh Jaggi, and Punit K Goyal in 2019. BluSmart has raised a total of $184 million in funding over ten rounds. https://startuptalky.com/blusmart-success-story/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 37  CASE Study Swiggy Swiggy is a food delivery platform at its core, the services of which can be accessed from Android and IOS devices, and through the website. It partners with a wide range of restaurants and provides easy access to diverse food dishes from varying cuisines. It is founded by Sriharsha Majety, Lakshmi Nandan Reddy, Rahul Jamini, Rahul Kapoor. Swiggy has seen a total of $3.6 billion worth of funding over 16 rounds. Apurv Kumar Yadav, Department of Electrical Engineering, IITR 38  CASE Study Ola Electric Ola Electric, which started taking bookings in July 2021, has already begun achieving some memorable milestones. Some of them can be summed up as: Ola Electric has clocked sales worth Rs 1100 crore in just 2 days It was hailed as the best-selling electric 2-wheeler after Hero Electric in March 2022, when it clocked the sale of 9000+ units. With over 12689 units of Ola Electric scooters sold in April 2022, Ola Electric was recognised as the highest- selling electric two-wheeler company in India. Ola has sold 41,024 units in 2022, as reported on June 2022. Bhavish Agarwal is the solo founder. OLA Electric has raised $860.2+ mn via over 9 funding rounds that the company has seen. https://startuptalky.com/ola-launch-electric-scooter/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 39  CASE Study Zoho Zoho Corporation has been divided into the following three divisions - Zoho.com - This division offers products related to Online business, and productivity and collaboration applications. ManageEngine - Offers Enterprise Management tools. WebNMS is the IoT software division of Zoho Corporation. Zoho Corporation Private Limited is an Indian company, founded by Sridhar Vembu and Tony Thomas in 1996. The company started its operations from a small apartment in the suburbs of Chennai. Zoho was initially named ‘AdventNet’, and the only service offered was Network Management. https://startuptalky.com/zoho-success-story/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 40  CASE Study Amazon Food, Distribution In May 2020, Amazon Food entered the competitive Indian food delivery market. However, after trying it out for more than two and half years, Amazon decided to shut down its food delivery platform, which was being piloted in Bengaluru, India, by 29 December 2022. Reasons for failure Amazon Food failed in India due to stiff competition from established players like Zomato and Swiggy, localization challenges in catering to diverse culinary preferences, operational complexities in building a reliable network of restaurants and delivery partners, and broader cost-cutting measures undertaken by Amazon in a challenging economic environment. https://startuptalky.com/why-startups-fail-case-study/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 41  CASE Study Dark Sky Dark Sky was a weather forecasting app that provided hyperlocal weather information and accurate forecasts to users. It was founded in 2011 by Adam Grossman and Jack Turner. Dark Sky gained popularity for its user-friendly interface and precise weather predictions, which were based on real- time data and advanced algorithms. Reasons for failure: Sky announced that it had been acquired by Apple and would be discontinued on other platforms, including Android. The acquisition by Apple led to the dissolution of Dark Sky as an independent entity, and its features were integrated into Apple's own weather services. https://startuptalky.com/why-startups-fail-case-study/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 42  CASE Study DocTalk Founded in 2016, by Krishna Chaitanya Aluru, Akshat Goenka, and Vamsee Chamakura, Doctalk connected doctors with patients. Through the Doctalk app, one could find good doctors in the vicinity and after just one in-person visit, the patient could connect to the doctor through the Doctalk app for further consultation and queries. The patients had to pay a subscription fee, whereas the doctors were charged an initiation fee. In 2018, Doctalk pivoted to a new business model wherein it built an electronic medical record (EMR) solution to help doctors write digital prescriptions on customized prescription templates. The EMR business was launched under a new brand name 'Pulse' and was sold to the doctors as a tool that let them digitalize the entire consultation, and share the same with the patients. Reason for failure: Doctalk's pivot from its initial business model into the electronic medical record solution (EMR) business was not successful; it is often cited as the cause of DocTalk's closure by company insiders. https://startuptalky.com/why-startups-fail-case-study/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 43  CASE Study DocTalk Founded in 2016, by Krishna Chaitanya Aluru, Akshat Goenka, and Vamsee Chamakura, Doctalk connected doctors with patients. Through the Doctalk app, one could find good doctors in the vicinity and after just one in-person visit, the patient could connect to the doctor through the Doctalk app for further consultation and queries. The patients had to pay a subscription fee, whereas the doctors were charged an initiation fee. In 2018, Doctalk pivoted to a new business model wherein it built an electronic medical record (EMR) solution to help doctors write digital prescriptions on customized prescription templates. The EMR business was launched under a new brand name 'Pulse' and was sold to the doctors as a tool that let them digitalize the entire consultation, and share the same with the patients. Reason for failure: Doctalk's pivot from its initial business model into the electronic medical record solution (EMR) business was not successful; it is often cited as the cause of DocTalk's closure by company insiders. https://startuptalky.com/why-startups-fail-case-study/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 44  CASE Study Mr.Needs MrNeeds was a grocery delivery startup founded by Hitashi Garg, Yogesh Garg, Ravi Wadhwa, and Ravi Verma. It provided a subscription-based grocery delivery service. People could easily pay for their subscriptions and receive their groceries on the set date. MrNeeds, a Delhi-based startup, did well with more than 10,000 deliveries in Noida alone. Reason for failure: MrNeeds was a subscription-based startup. Hence, turnover might not have been that great given how frugal Indians usually' tend to be. So it is possible that the startup had a lack of funding to sustain itself. The entry of funded grocery delivery startups like Grofers and Big Basket can also be another reason for MrNeeds' failure. https://startuptalky.com/why-startups-fail-case-study/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 45  CASE Study Roder Inter-city travel has become a mainstream requirement— traveling 100 km or more every day is deemed as just another day to some. The reason may be anything: office location, excursion, meeting a friend, etc. These journeys can burn a hole in the pocket. Roder (earlier known as Insta Cabs) was founded by Abhishek Negi, Ashish Rajput, and Siddhant Matre in 2014 to ease inter-city rides. One of Roder's highlights was offering one-way rides at nearly half the market price. Reason for failure: The inability to cope with customer acquisition costs and not keeping up with the user retention rates. Moreover, increased competition from experienced ventures like Ola and Uber added to Roder's woes. Having a bigger competitor that is more aggressively funded makes the entrepreneurs lose their zeal. And this is one of the major causes of entrepreneurial failure. https://startuptalky.com/why-startups-fail-case-study/ Apurv Kumar Yadav, Department of Electrical Engineering, IITR 46 Thank You 47  INDIAN INSTITUTE OF TECHNOLOGY ROORKEE Introduction to Intellectual Property Rights Prof. Rajat Agrawal Professor, DoMS, Indian Institute of Technology Roorkee Table of Contents  Economic Transition  What is IP?  Types of IP  What is a patent?  What is a copyright?  What is a trademark?  What is a design?  What is a Geographical Indication?  What is a Semi Integrated Circuit Layout Design? 2 Economic Transition Agriculture Industrial Service Knowledge  Pillars of Knowledge Economy ICT Talented Manpower Independent Judicial System Innovation Ecosystem Innovation Ecosystem Joseph Schumpeter: “innovation… the carrying out of new combinations… is the key to entrepreneurial profits…. [innovation] is the only way to create new economic value over the long term“  Business Innovation Offerings Platforms Solutions Customers Customer experience Value capture Processes Organization Supply Chain Presence Networking Brand innovation  What is IP? Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce. Intellectual Property Rights reward creativity & human endeavor which fuel the progress of humankind. 7 IP Continued……. Intellectual Property is the Property, which has been created by exercise of Intellectual Faculty. It is the result of persons Intellectual Activities. Intellectual Property rights allow the creators or owners to have the benefits from their works when these are exploited commercially. These rights are statutory rights governed in accordance with the provisions of corresponding legislations. 8 What is meant by IPR? Intellectual Property (IP) is any creations of human mind. Like tangible property, their creation has a value and, as with all property, it needs to be protected. Intellectual Property Rights (IPR) gives them this protection, as well as helping them exploit and control their IP. “The exclusive right granted by State, to prevent others from using, manufacturing, distributing - inventions, processes, applications, new and original designs, trademarks, new plant varieties, data bases and artistic and literary works”. Such a person is known as ‘rights owner’ or ‘rights holder’.  Types of IPR Patent Copyright Trademark Design Geographical Indication Semiconductor IC. © ™ ®  Benefits of Protecting Intellectual Property Protecting intellectual property (IP) offers various benefits for individuals, businesses, and society as a whole:- Incentive for Innovation Monetary Rewards Competitive Advantage Job Creation and Economic Growth Technological Progress Global Collaboration Preserving Cultural Heritage Consumer Protection  Benefits of Protecting Intellectual Property Cont.. A well-functioning IP system strikes a balance between rewarding innovation and creativity and promoting the dissemination of knowledge for the greater benefit of society. It serves as a driving force behind economic development, technological progress, and cultural enrichment. Intellectual property statistical profile 2021 Intellectual property statistical profile 2021 (INDIA) (CHINA) Intellectual property statistical profile Intellectual property statistical profile 2021 (INDIA) 2021 (CHINA)  Challenges: IP Enforcement in the Digital Era: Enforcing IP rights online is challenging due to the borderless nature of the internet, leading to issues with infringement and counterfeiting. IP trends, Patent System Overload: A surge in patent applications burdens patent offices, causing delays in processing and examination. challenges, and Standard Essential Patents (SEPs): Disputes arise over fair licensing terms for SEPs, particularly in industries like telecommunications and technology. opportunities Opportunities: Cont.. IP as a Revenue Source: Companies can profit from IP through licensing, technology transfer, and strategic partnerships. IP in Emerging Markets: Rapidly growing economies offer significant opportunities for IP protection and commercialization. IP in Startups and SMEs: IP enables startups and small enterprises to enhance competitiveness, attract investment, and access new markets. Role in competing through IP IP serve a competitive advantage and foster innovation in various ways: Protection of Innovations: Patents and trade secrets protect novel and inventive technologies or processes, giving companies a temporary monopoly to exploit their innovations. This protection encourages companies to invest in research and development, knowing they can reap the benefits of their efforts without immediate competition. Brand Recognition: Trademarks and copyrights help build strong brands and establish brand recognition among consumers. A well- recognized brand can create customer loyalty and trust, leading to a competitive edge in the market. Market Differentiation: IP allows companies to distinguish their products or services from competitors. Unique features or designs protected by patents or design rights can set a company's offerings apart, attracting customers who seek innovative solutions. Role in competing through IP Cont.. Innovation Ecosystem: A strong IP regime fosters an environment conducive to innovation. When companies are assured that their innovations are protected, they are more likely to invest in research and development, leading to a vibrant innovation ecosystem. Technology Transfer: IP licensing and technology transfer can facilitate knowledge exchange and collaboration between companies, universities, and research institutions. This transfer of technology can lead to mutual benefits and faster technological progress. Economic Growth and National Competitiveness: A country's strong IP protection and enforcement can attract foreign investment and encourage local innovation, contributing to economic growth and enhancing the nation's competitiveness on the global stage. Global Innovation Index 2022  Building an effective IP Building an effective Intellectual Property (IP) strategy is essential for businesses and organizations to protect their innovations, establish a competitive advantage, and maximize the value of their intellectual assets. Some key steps to build an effective IP strategy: 1. Identify and prioritize your IP assets. 2. Align your IP strategy with your business goals. 3. Conduct regular IP audits and assessments. 4. Secure IP rights through patents, trademarks, and copyrights. 5. Monitor and enforce your IP rights proactively. 6. Consider licensing and partnerships to expand your reach. 7. Educate employees and stakeholders on IP importance. 8. Protect your IP internationally if needed. 9. Collaborate with research institutions for innovation. 10. Stay updated on industry trends and regulations. 11. Allocate resources for your IP strategy. 12. Review and update your IP strategy regularly.  Impact of IPR on fostering research and development Key impacts of IPR on fostering research and development: Incentive for Innovation: IPR, such as patents, provide inventors and creators with exclusive rights to their innovations for a limited period. This exclusivity incentivizes individuals and organizations to invest time, resources, and effort in R&D, as they know they can reap the benefits of their discoveries without immediate competition. Return on Investment (ROI): IPR protection allows innovators to commercialize their inventions and creations, generating revenue and ensuring a return on their R&D investments. The potential for financial rewards encourages companies to allocate more funds to R&D activities.  Impact of IPR on fostering Technology Transfer and Collaboration: IPR protection facilitates research and development Cont.. technology transfer and collaborations between entities. Companies are more willing to share knowledge, research findings, and technologies when they know their IP is safeguarded through agreements and licenses. Attracting Investment and Funding: Startups and research institutions with valuable IP assets are more likely to attract investors and funding. Investors see IP as a valuable asset and are more inclined to support ventures with protected innovations. Economic Growth and Competitiveness: A vibrant IP ecosystem contributes to overall economic growth. Countries with strong IPR protection often experience increased R&D activities, technological advancements, and higher levels of innovation, leading to enhanced global competitiveness.  IP for Competitive Advantage Intellectual property (IP) can provide businesses with Some ways in which IP can be used to achieve a a significant competitive advantage in various ways. competitive edge: By protecting and leveraging their IP assets strategically, companies can gain a unique position in the market and outperform their competitors. Exclusive Rights: IP protection, such as patents, trademarks, and copyrights, grants businesses exclusive rights to their innovations, brands, and creative works. This exclusivity prevents competitors from using identical or similar IP, giving the IP owner a monopoly over their market offerings. Barriers to Entry: Strong IP rights can create barriers to entry for new competitors. If a company has patented technology or a well-