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Venture Capitalist vs Private Equity: Best For Your Startup?

2020-07-19T22:50:00.000+05:30

Wondering to know the result of the battle between Venture capitalist vs Private equity, this post will give clarity to all your doubtful thoughts in mind.

During the initial days of a startup, founders had to invest their own savings into the business. But later when a business shows massive growth and owners want to expand their business then they need funding.

But many people are confused that which type of investor will be best for their business in the long-term.

So, in this article, we will discuss the difference between a venture capitalist and private equity(Venture capitalist vs Private equity) and a detailed concept about them.

Tabular representation of Venture capitalist vs Private equity

Basis	Venture Capitalist	Private Equity
Meaning	Venture capitalists are the persons or firms that invest in small startups and small businesses. They do not invest their own money	Private equity is the investors who invest in stable companies that have not been listed as a public exchange.
Risk	Venture capitalists take more risk.	Private equity investors take less risk.
Type of companies	Usually, they invest in innovative startups like Softwares, technology, biotech, etc.	They can invest in any industry like manufacturing, retail, IT, FMCG, etc.
Amount of investment	They invest $10 million or less.	They can invest up to $100 million
Number of investments	They invest in many companies at a single time.	They only invest in fewer or single companies at one time.
Ownership	They cannot purchase more than 49 percent of equity shares of a company	They can purchase up to 100 percent of the equity shares of a company.
Stage of funding	They usually invest in the initial days of a startup.	They usually invest in the later stage when a company wants to expand.
Criteria before investing	Before investing, venture capitalists are more concerned about the management team.	Before investing, private equity investors are more concerned about the previous financial reports of the organization.
Fund requirement	Companies approach venture capitalist to scale its operation	Companies approach private equity investors when they want to expand their business.
Motive	A venture capitalist motive is to increase the valuation of the company.	A private equity investor's motive is to bring positive net profit in the organization.

Venture Capitalist vs Private Equity: The Major Differences

Now we will discuss the difference between the two types of investors more deeply-:

1. Venture capitalist vs private equity: Meaning

Venture capitalists: Venture capitalists(VC) are the persons or firms who invest in high growth startups and small companies in exchange for equity shares of that company. They bring seed capital for your business.

They do not invest their own money but utilizes the money of corporations, investment companies, and limited partners.

Private Equity: On the other hand, Private equity investors are the persons who invest in stable companies in exchange for the stake of that company. They bring growth capital for your business.

They only invest in private limited companies. It means that they invest in companies that are not listed for public exchange.

2. Venture capitalist vs private equity: Risk

One of the major differences between venture capital(VC) and private equity is that venture capitalists take more risk as they invest in high growth companies at a very young stage.

At that time the founders and management team has less experience and training.

Private equity on the other side invests in the later stage when they feel that the company has become stable and mature.

3. Venture capitalist vs private equity: Type of companies

As venture capitalist(VC) only invests in high growth companies so they prefer Softwares, technology, Biotech startups.

On the other hand, private equity investors can invest in an industry that can be manufacturing, retail, IT, FMCG companies, etc. They prefer these types of businesses because they are stable companies which can yield profits.

4. Venture capitalist vs private equity: Amount of investment

A venture capitalist invests less amount as compared to private equity investors. A venture capitalist can only invest $10 million or less in a single startup.

But on the second side, private equity investors can invest up to $100 million in a single corporation.

5. Venture capitalist vs private equity: Number of investments

A venture capitalist invests in a large number of small companies or startups in a single time.

This is because he knows that he is investing in high growth and high-risk companies so if he invests in 100 startups and out of that 90 startups fail then also he will earn huge profit as the rate of profit of 10 startups will be more than the rate of loss of 90 startups.

On the other hand, private equity only concentrates on fewer companies or single companies. That's why they put a lot of money into a single company only.

6. Venture capitalist vs private equity: Ownership

Usually, the venture capitalists can purchase 50% or fewer equity shares of the company in which they are investing their money.

On the other hand, private equity investors mostly purchase up to 100 % shares of the company in which they are investing. It means they can have full control over the decision-making process of the company.

7. Venture capitalist vs private equity: Funds requirement

Most companies approach to venture capital firms when they want to scale their operations. This is mainly done by small startups and companies.

On the other side companies require funds from private equity investors when they want to grow and expand their business. This is the later stage in which the company wants to earn more revenue to show a profit in its balanced sheet.

8. Venture capitalist vs private equity: Stage of funding

A venture capitalist invests in the initial days of startups and on the other side private equity invests in later-stage or expansion stage of a startup.

9. Venture capitalist vs private equity: Criteria before investing

Before investing, venture capitalists are more focused on the quality of the management team in the business. They want an experienced and professional management team.

On the other hand, private equity investors are more focused on profit and loss, sales, revenue data for the last 5 years.

10. Venture capitalist vs private equity: Motive

The motive of a venture capitalist(VC) is to help in increasing the valuation of the company so that price of his shares increases and he can exit the company by selling his stake.

On the other side, the motive of private equity investors is to increase the revenue and profit of the business. His focus is on the net profit of the company.

Advantages of venture capitalists

Advantages of venture capitalists features-:

They invest large funds
They have business expertise and experience.
It's not mandatory to payback.

1. They invest large funds

As venture capitalists invest money in the initial days of a startup, so it gives a great boost to the growth of the company. Founders utilize these funds to expand their operations.

2. They have business expertise and experience

As in starting days, the owners of the business do not have proper knowledge and experience, so this restricts them in taking proper business decisions.

Venture capitalists have persons with great business experience and sometimes they direct founders in the right direction.

3. It's not mandatory to payback

When your business borrows money from a bank then it becomes a mandatory obligation to pay the money back even if you suffer losses.

But in case of venture capitalist(VC), if your startup suffers a loss then you can postpone the payment of venture capitalist and even its not necessary to pay them.

But to improve your credit rating and attract future investments, you should pay them.

Disadvantages of venture capitalist

Disadvantages of venture capitalist features-:

Loss of control
Loss of ownership

1 Loss of control

As venture capitalist posses some shares of the company in exchange for their money, so sometimes they influence decisions of founders. Sometimes they take decisions in favor of them.

2. Loss of ownership

In some cases, because of the shortage of funds founders of the business are ready to give the majority stake of the company. This leads to a transfer of ownership from founder to VC.

Not always but sometimes they misuse their power in favor of them to earn more profits.

Advantages of private equity

Advantages of private equity features-:

Cash inflow
They bring professional expertise
Commitment
Relationship

1. Cash inflow

Private equity investors bring cash in business when needed. They invest a very large amount of funds as compared to any other investors.

The founders would have sufficient money to expand the activities of the business.

2. They bring professional expertise

As private equity investors have experience of many years, so they can help the company in the growing right direction.

Their main motive is to bring net profit and with their talented manpower, they are willing to do this also.

3. Commitment

Private equity investors are very much committed to their goals. Their motive is to earn profit like any other investor but on the second side, they also help founders and companies to grow.

They give advice to the management team, assist them in taking the right decision, help them in proper utilization of resources, etc. They are very much dedicated to bringing the profit in the balance sheet of the company.

4. Relationship

Private equity investors have good and strong relationships with other professionals, managers, and businesses. This can also help owners of the company as they can use their resources, ask them for advice, maintain good long term relationship with them, etc.

Disadvantages of private equity

Disadvantages of private equity features-:

Loss of ownership.
Not everyone can approach private equity.
Loss of control.

1. Loss of ownership

As private equity investors contribute a very large amount of funds so in exchange they also demand a large number of shares. Sometimes they acquire the majority stake in the company and founders lose control of their business.

2. Not everyone can approach private equity

Usually, private equity investors do not invest in every type of business. They invest in selective companies only that fulfill their criteria of selection.

If your business profit and loss statement, sales report, revenue report, a balance sheet, and other reports of the previous year are not good then there is very little chance that you will get funding from these investors.

You should have a stable and mature startup to attract these investors.

3. Loss of control

Private equity investors do want to influence the management of the company as they have contributed a very large amount of funds.

Most of the time they help in taking the right decisions only but exceptions are always there who take the decision for their selfish motive.

Question and answers of venture capitalist vs private equity

Now we will discuss some most asked question and answers to clear your confusion about this topic-:

1. Do venture capitalists get equity?

Yes, venture capitalist(VC) gets equity in exchange for his investment in small startups and small companies. They invest their money in the hope that in future the price of their stake will increase.

2. What is private equity round?

A private equity round is organized by private equity firms so that companies can pitch them and can raise investments from them. The risk in this type of investment is less.

3. Is venture capital a form of private equity?

Both investors provide funds to companies in exchange for equity shares. So, in short, we can say that yes, venture capital is a form of private equity but in reality, we distinguish them because they both have different roles and responsibilities in the organization.

4. Where do VC firms get their money?

As we all know that venture capitalist(VC) do not invest their own money. They use the money of big corporations, pension funds, insurance companies, charity, investment companies, etc.

My views

So, the main question comes that which investor you should approach for funding. The answer is that it totally depends on your business. If your business is small and is not earning profits then you should go for a venture capitalist.

But if your startup is stable and your past financial record is good then go for private equity investors.

But there is another side also that if your business cash flow position is good and you are earning good profits then why to go for investor and dilute your stake. In that case, the bank is a better option.

Conclusion

So, this was all about venture capitalist vs private equity. In this article, we have discussed the basic concepts, the difference between the venture capitalist and private equity, and the advantages and disadvantages of both investors.

If you like this article then please share it on Facebook, Twitter, Linkedin, and other social media platforms.

You may also read

Angel investor vs. venture capitalist: The major differences

Crowdfunding for startups in India: The Advanced Guide

Why startups fail in India?

Tags-: Venture capitalist vs Private equity, the difference between venture capitalist vs private equity, advantages, and disadvantages

Crowdfunding For startups In India: The Advanced Guide

2020-07-18T20:57:00.001+05:30

Wondering to know about crowdfunding for startups in India. This article will give clarity to all your doubts about this topic.

Crowdfunding means collecting funds from a large number of investors for starting a startup or for building a venture or for a social cause or for starting a new project.

Getting funds from angel or venture investors or from the bank is not an easy task. That's why the lack of funds is the major reason for the failure of a startup in India.

But crowdfunding provides an easy platform for raising funds very easily and in fact, it is better than other sources of funds because investors have minimal control over your enterprise.

So in this article, we are focused on learning about crowdfunding, its types, and different sites of crowdfunding in India.

Before learning different sites of crowdfunding in India, first, we will discuss what is crowdfunding and its types.

What Is Crowdfunding?

Crowdfunding means collecting funds from multiple numbers of investors for a specific project, idea, startup, social cause, donation, etc.

The users can showcase their products on crowding platforms or sites and if investors and fund donors like their project then they get funding for that. In simple words, crowdfunding platforms form a link between fund collectors and fund donors.

These platforms charge some percentage of commission from the fund collected. If you want to know about different crowdfunding sites for startups in India then read this article from starting.

It is better than other sources of funds because the founders of startups have full control over their venture.

Types Of Crowdfunding In India

There are five types of crowdfunding in India where founders can raise funds for their projects. These are discussed as follows-:

1. Donation-based crowdfunding

In donation-based crowdfunding investors or funds, donors contribute money to specific projects related to a social cause like sanitation, healthcare, disaster projects, helping patients, conservation issues, etc.

The investors do not contribute their money for any returns or profits but they actually want to help the community through their charity.

The entrepreneur or founder can present their social campaigns or ideas on crowdfunding platforms and in return, some of these platforms charge fees of 5%-10% from total funds collected.

The best sites for donation-based crowdfunding in India are Kickstarter, Indigegeo, GoFundMe, and FuelADream.

2. Equity-based crowdfunding

In equity-based crowdfunding entrepreneurs or founders present their startup or venture ideas on the crowdfunding platform. If investors like their idea then they invest money in their startup and in return they get some equity share of that startup.

The value of equity shares increases with the growth of the company and by selling these shares investors can earn money.

This type of crowdfunding is especially for innovative products like software or apps or online service.

There is a greater risk for both investors and entrepreneurs. Loss can occur to investors if the company did not perform well and for entrepreneurs, there is a risk because they are sharing there inside information of the business to an outsider.

Unfortunately, this type of crowdfunding is illegal in India.SEBI has restricted this to protect the interest of investors. In India, investors do not have much skill or expertise to invest in these platforms, so small investors do not get attracted to such risky investments.

The second reason is that there is in India there is no such regulatory firm to monitor these investments.

3. Reward-based crowdfunding

In reward-based crowdfunding, investors get some products or services in return for their investments.

This is especially for creative products like art&design, Softwares, paintings, pieces of jewelry, fashion products, lifestyle products, films, watches, music, etc.

The best sites for reward-based crowdfunding are Kickstarter and Indiegogo. Usually, the businesses which opt for this type do not get a loan from the bank easily.

So, crowdfunding is a better option for them. This type is best for B2C businesses as entrepreneurs get direct feedback about their product or service from investors.

Milaap is best for Reward-based crowdfunding.

4. Lending-based crowdfunding

In lending-based crowdfunding entrepreneurs or founders share their ideas or startup projects on platforms and if investors like their idea then they lend money to them with a fixed rate of interest.

It is less risky as compared to equity-based crowdfunding as investors get fix rate of interest and entrepreneurs need not share their inside information of the business.

It is also called peer-to-peer crowdfunding and it is regulated by the Reserve bank of India.

If you think that your business cash-flow and working capital are good then you should definitely go for this type.

5. Pre-order crowdfunding

In pre-order crowdfunding, investors invest money in startup or venture, and in return, they get a Pre-order for products.

In simple terms, it means that if today an investor will invest money in this type then when the business will launch its products or service, they will get it first as compared to others.

This type is especially for fashion, gaming, lifestyle products. This helps the founder to get reviews about their products.

Crowdfunding sites for startups in India

From the past few years, crowdfunding sites in India have shown massive growth. They are helping new entrepreneurs and startup owners to raise funding. So below we will discuss some famous platforms for crowdfunding-:

Crowdfunding sites for startups in India features-:

1. Indiegogo

2. Milaap

3. Crowdera

4. GoFundMe

5. Impact guru

6. Ignite intent

7. Fundable

8. Catapooolt

9. Ketto

10. Fueladream

11. Wishberry

12. Kickstarter

1. Indiegogo

Indiegogo was founded in 2008 by Danae, Eric, and Slava. It is basically a

crowdfunding site and a site for marketing of products of ventures.

Founders come here and raise funds for their startups. Not only funding founders can also directly sell their products to the Indiegogo network of consumers.

The main focus of this crowding platform is product innovation and bringing new ideas to life.

Indiegogo was the first humongous platform to raise $1 billion since its release in 2008.

It mainly promotes physical products as compared to there sites which promote initiatives and ideas.

It serves as a launchpad for entrepreneurial ideas.

2. Milaap

Milapp was co-founded by Mayukh Choudhary and Anoj Vishwanathan. It was started in Bangalore.

Its main focus is providing funds in rural areas especially those who have a low income.

It raises funds for several projects including water, sanitation, education, natural calamities, sports, and personal funds for different causes.

Many student Entrepreneurs have also raised funds from this platform.

It charges 5-8% of the commission from funds raised. Milaap was founded in 2010 and in August 2019 it has raised 700 crores funds to support 1.00.000 causes.

3. Crowdera

Crowdera was founded by Chet Jain and its co-founders are Chai Atreya and Rich Matsuura.

It was founded in America so it is a global platform for raising funds. It was launched in India in 2016.

Its main focus is on social causes, Individual causes, and enterprises. The platform charges zero commission and has also worked for non-profit motives for many ventures and enterprises.

Their motive is to build a giving economy with non- profit motives. In this platform, you can raise funds from RS 500 to RS 99,999,999.

4. GoFundMe

GoFundMe was founded in 2010 to raise donation-based funds. It is currently, the largest social crowdfunding platform which has raised $9 billion funding from 120 million donations.

The main motive of GoFundMe is to raise money for personal, business, and charitable causes.

There are huge users in this platform so raising funds for smaller causes may not work.

It doesn't charge any commission but you have to pay payment fees charged by payment processor which is generally 2.9%.

5. Impact guru

Impact guru is co-founded by Khushbu Jain and Piyush Jain. It was founded in 2014 in Mumbai.

It is a crowdfunding platform with non-profit motives for social projects, social enterprises, and donations.

It also raises funds for ventures and startups. It has supported over 100 projects globally.

In 2016 it has raised $5,00,000 seed funding from Singapore based venture capital fund RB Investments.

6. Ignite Intent

Ignite Intent is co-founded by Rinikesh shah. It was started in Mumbai.

It is a crowdfunding platform that raises funds for entrepreneurs, startups, and social projects.

It also raises micro-investments for small ventures. It follows donation-based crowdfunding. In this platform, there is no limit to giving your project information.

It has supported a grocery store startup in Pune whose name is Puneexpress.

It charges a 7% commission from the total funds raised. It also helps college students to raise funds for social purposes.

7. Fundable

Fundable was founded on May 22,2012 by Wil Schrotor and Eric Corl. It is a crowdfunding platform that focuses on small enterprises.

It organizes campaigns for the small business sector in India. They also focus on other areas like travel, banking, food, beverage, and fitness.

It also includes a section called "New and Noteworthy" in which users can join all the new campaigns organized by Fundable.

It also raises funds for an affordable clinical diagnosis to intellectual travel experiences.

its main motive is to build small businesses. It earns a profit by charging monthly fees.

8. Catapooolt

Catapooolt was founded by Satish Kataria in 2012. He is also the managing director of this platform.

It organizes campaigns for ventures, films, music, technology, startup ideas, innovative products, etc.

Apart from that, it helps entrepreneurs to partner with incubators, mentors, sales, the marketing community, etc.

Its main focus is to provide the best quality crowdfunding platforms.

9. Ketto

Kunal Kapoor, Varun Sheth, and Zaheer Adenwala are the co-founders of Ketto. It is a Mumbai based platform that was founded in 2012.

It is one of the most reputed crowdfunding sites in India. This site organizes campaigns for sports, children, women, education, healthcare, and animal welfare.

It also has a section called "Urgently Fund Required".One of the successful campaigns of Ketto was during Kerala Flood whose name was "Two Wheels of Hope".In this, they provide cycles to schoolgirls.

The main motive of this platform is social cause and charity.

10. FuelADream

FuelADream was founded by Ranganath Thota. It is a reward-based crowdfunding platform in India.

It provides funds to social platforms, charity, startup ideas, and disaster projects. Mostly it organizes its campaigns to help people of Africa and India.

Two choices are given to users which are AON i.e All Or Nothing and KWYG i.e Keep What You Get.

It focuses on "Quality more than Quantity".They have a section called "Crowd Favorite List" in which they include their most famous campaigns.

They focus on projects like Creative ideas, Charities, Events, and community activities.

Their motive is to simply fundraise methods. They charge 6%-9% from fundraising.

11. Wishberry

Priyanka Agarwal and Anshulika Dubey are the co-founders of Wishberry. It is a reward-based crowdfunding platform in Mumbai.

Their site is for creative projects which include dance, photography, stand up comedy, film production, comics, publishing, etc.

Right now it does not accept physical products, it only accepts ideas and innovative projects.

It also provides consultation, email marketing, and marketing services. Its motive is to bring creative and innovative ideas to build a community.

It charges a 10% commission from a fundraised. Funders receive a reward for their fund donated on the Wishberry platform.

12. Kickstarter

Kickstarter is one of the first, reputed, and active crowdfunding sites in India. It was launched in 2009.

It includes creative projects like films, books, technology, research, music, etc. It prohibits charity or social projects.

It has raised about $2 billion since it was founded. Some of the famous campaigns organized by Kickstarter are The Sweet Requiem campaign and Edible Cutlery.

It charges a 5% commission for every successful campaign. Its main motive is to bring creativity to the community.

Benefits Of Crowdfunding

Below we will discuss some benefits of crowdfunding which will inspire you to use this platform-:

1. Better than other sources of funds

Crowdfunding is better than other sources of funds. It is better than banks as raising funds from these platforms is very easy. It does not include any restrictions.

It is better than angel and venture funding as investors have minimal control over your project.

If you have a simple product or project than crowdfunding is the best option to raise funds.

2. Best platform for feedback

It is the best platform for feedback as entrepreneurs can showcase their ideas or product on reward-based crowdfunding and pre-order crowdfunding and can get feedback from investors and users.

3. The best option for raising funds for a social cause

Mostly every crowdfunding site organizes campaigns for social causes like healthcare, sanitation, treating patients, disaster projects, food donation.

So, raising funds for these purposes is very easy. People come and donate money to your project on this platform and in return these platform charges commission.

4.Track progress of your brand

Through these platforms, investors and users can track your progress of projects. It helps investors to review your project and then invest in it.

5. Helps In Marketing

These platforms help in the marketing of startup ideas and new venture's product. Presenting your idea in front of investors is very simple.

These sites also provide referral traffic to your website. This helps in increasing your earning. The sites send unique users to your website.

6. Helps In Providing Loyal Customers

In crowdfunding platforms, entrepreneurs present their idea or project in front of users. So in their idea, they also share their motive and mission.

So, when investors read their mission and then become a part of their idea, it means that they are for the long-term. These platforms help enterprises to reach thousands of loyal customers.

7. Money doesn't matter at all

These crowding platforms are absolutely free. Sharing your idea or project in front of investors is free.

The only thing you have to pay is some percentage of commission from funds collected by you from investors to these platforms.

8. Provides Free Media Coverage

These platforms let you share your project in front of the public. So, if your projective is creative and becomes famous on these platforms then media will also provide you coverage.

Congratulation. You are getting PR free. You can become famous on social media if your project collects a very large amount of funds.

Now below we will be discussing some questions and answers to clarify your doubts and confusion.

FAQ On Crowdfunding For startups In India

1. Is crowdfunding legal in India?

No.equity based crowdfunding is not legal in India but the rest of the types of crowdfunding is legal in India. It is restricted by SEBI(Securities and exchange board of India) to protect the interest of investors.

2. Which is better Ketto or Milaap?

I think that Ketto is a better option than Milaap. It charges less commission. Ketto charges 5% commission and Milap charges 13.5% commission.

3. Is crowdfunding taxable in India?

According to Indian law, non-profit organizations are exempted from taxes. So funds raised for non-profit motive or campaign on crowdfunding platforms are exempted from taxes.

4. How does crowdfunding make money?

Crowdfunding platform makes money by charging some percentage of commission from funds raised by startups or ventures. Some platforms also charge fees on each transaction.

My views on crowdfunding for startups in India

I think that equity-based crowdfunding should be made legal in India. For new entrepreneurs, it's not easy to raise money from other investors so if this type is made legal then it will help a lot of new startups.

But proper regulatory guidelines should be issued by the government of India to protect the interest of investors.

Conclusion

So I hope you like this article. In this, we have discussed what is crowdfunding, Types of crowdfunding, and Crowdfunding for startups in India.

If you like this article then please share it on Facebook, Twitter, Linkedin, and other platforms.

You may also read-:

Ritesh Agarwal biography: The youngest billionaire in India.

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Tags-: Crowdfunding for startups in India, What is crowdfunding, Types of crowdfunding in India, crowdfunding sites in India, Benefits of crowdfunding

Angel Investors vs. Venture Capitalist: The Major Differences

2020-07-18T20:57:00.000+05:30

Wondering to know that who will be the winner of battle Angel Investors vs. Venture Capitalist, this post will give you the exact answer.

Finance is the lifeblood of business. Without it thinking of survival of the business is not possible. But many startups in its initial stage faces the problem of raising investments.

And not getting funding on proper time becomes one of the major reasons for the failure of their startups.

So If you own a startup or thinking of doing your own business then definitely a question should come in your mind that from which investor your business should take funds?

So in this article, we will be discussing this hot topic i.e Angel investors vs. Venture capitalist and main differences between them.

Before discussing this topic, first, we will be learning about the definition of angel investor and venture capitalist.

What are Angel Investors?

Angel investors are the individuals who invest in small startups or companies in exchange for equity shares of that company. They are also known as angel funder or seed investors.

Generally, they use their own money to invest in startups. They provide funds to enterprise in its initial days of working. They are called angels as when no investor is willing to fund early-stage startups then they come and help them.

An angel investor is said to be an accredited investor when he is having a net worth of $1 million or having an annual income of $2,00,000.This criterion is set by SEBI(Securities and exchange board of India).

What is Venture Capitalist?

Venture Capitalists are the firms that invest in high growth potential companies in exchange for equity shares of that enterprise.

Generally, they do not use their own money but utilizes the funds of investment companies, corporations, and funds.

They invest in small companies and more developed enterprises. Their main motive is to earn profit only.

Angel Investors vs. Venture Capitalist: The Major Differences

Now after studying the basic concept the times have come, when we will be discussing the difference between a venture capitalist and angel investors.

Angel Investor vs Venture Capitalist features-:

Periods
Money invested
Return
Type of business
Role in business
what they look in business before investing
how to make an investor deck

Angel Investors vs. Venture Capitalist: Periods

Both angel investors and venture capitalists invest in different periods. This helps in judging their ability to take risks.

Usually, angel investors invest their money in the early stage of a startup while on the other hand venture capitalist invest their money on established startups.

Angel investor take more risk as they invest in businesses that have not proven itself to be profitable while on the other hand venture capitalist takes less risk as they invest in young companies after proper analyzing their profit and loss statement and balance sheet.

Angel Investors vs. Venture Capitalist: Money Invested

The major difference between angel investors and venture capitalist is that angel investors use their own money to invest in a company while on the other hand venture capitalist uses funds of investment companies, corporation, and other people.

Because of this VC firms invest more amount as compared to angel investors. The average amount invested by an angel investor is between $5,000-$5,00,000 while the average investment of VC firm is in millions of dollars.

Angel Investors vs. Venture Capitalist: Return

Venture Capitalists expect a higher rate of return as compared to angel investors on their investment.

Angel investor expect their return after 5-7 years with an expected rate of 20%-25%.On the other hand, venture capitalist expects their return in more years with a rate of 25%-35%.

Moreover, it is subjective and depends on the nature of your business and type of investor.

Angel Investors vs. Venture Capitalist: Type of business

Usually, angel investor invest in a startup which they feel can give them higher profits in the future. But on the other hand venture capitalist only invest in targeted startups.

They like to invest more in software, technology, and biotech companies.VC firms are more cautious about their profit as compared to angel investors.

Angel Investors vs. Venture Capitalist: Role in business

Angel investors provide financial help to startups in their struggling time. But his role is not limited to this only.

If the startup wants to take advice from him then he is always ready to guide them. Earning profit is not his main motive but to help startups grow is his main agenda.

He acts as a mentor for small companies and guides them to grow in every step of the business.

On the other hand, as a venture capitalist invests in developed companies that already have a talented management team so his main focus is not to become a mentor.

His role in business is to help decide the board of directors and to recruit the senior management team. His main motive is to earn profit only as compared to an angel investor.

Angel Investors vs. Venture Capitalist: What they look in business before investing

As Angel investor invests in a pre-valuation startup so their decision of investing is not influenced by profit and loss, sales, and balance sheet of that firm.

But there are certain points which they look into business before putting their money. These points are-:

They look for the vision and belief of founders.
They look for a good management team.
They look for good return as they are taking more risk by investing in an early-stage startup.
They look for a fantastic and long-term business plan.
The most important thing is that every angel investor looks for an exit strategy i.e how they will earn a return by selling equity shares.

On the other hand, Venture capitalist has a different point of view. The points which influence their investment decision are-:

They look for a professional and talented management team.
They look for a bigger market share in which the company can earn more than $ 1 billion in revenue.
They look for the quality of the product you are offering to consumers. They also look for the ability of the product to compete in the market.
They look for the strategy of the business in the next 10 years.
Sometimes they see previous data of the business to predicts its future.
Generally, they invest in the long term so they measure the risk of business and product.

Angel Investors vs. Venture Capitalist: How to make an investor deck

If you want to take investment from both an angel investor and venture capitalist then its mandatory that you need an investor deck.

Basically investor deck is needed to represent the information about your startup and business pan. Your presentation should be precise and should impress investors the first time only.

For getting funding in first attempt investors do want to see minimum slides in your PPT.

For this, you can read-: The advanced guide for making an investor deck.

Advantages And Disadvantages Of Angel Investors

Now after discussing the comparison we will learn about the advantages and disadvantages of angel investors which will help to make your vision more clear.

Advantages of Angel Investors

1. Willing to take bigger risks

Angel investors invest in the early-stage of startups. At this time there is no investor in the market to take such a big risk. Even banks do not give a loan at this stage.

It is the angel investor only who gives funds to the startup when they actually need it. They provide a sufficient amount between $5000-$5,00,000 to the small companies.

2. Helpful as a mentor

Angel investor not only provides funds to startup when they actually need it but if founders want any advice from them then they are always ready to give guidance.

They are experienced persons and can be very helpful while making crucial decisions.

3. No pressure for giving funds back

When you borrow money from a bank then there is pressure on you that you have to pay monthly installments with interest every month. It is mandatory for your business.

But in the case of angel investors, there is no such pressure. He gives you funds in exchange for equity shares which is generally 10 % of your total shares.

There is no stress of giving him return every month. He helps you to grow your business and when after some years, the valuation of your company increases then he lefts the company by selling his shares.

Disadvantages of Angel Investors

1. Loss of complete control

One of the biggest disadvantages of working with angel investors is that you do not have complete control over your decision-making process.

Sometimes he forces you to take a decision in a different direction in which his profit is there. The main problem comes when you raise investment from an inexperienced angel investor.

So for the proper growth of your startup, you should hire experienced persons only.

2. Less structural support

Angel investors provide less structural support to the business as compared to an investment company.

Advantages And Disadvantages Of Venture Capitalists

Now below we will discuss some advantages and disadvantages of a venture capitalist.

Advantages Of Venture Capitalists

1. They invest a large amount of money

The startups who are looking for big investments and who want to expands their business on the large -scale, the venture capitalist is the best option for them.

This is because they usually invest in millions of dollars. That much amount is sufficient for scaling to a big company.

2. No obligation to pay the money back

The biggest advantage of collecting funds from venture capitalists is that there is no obligation of paying back money every month. This is different from banks in which it is mandatory to pay the money back with interest.

3. They bring business expertise

The venture capitalists have a large number of talented and professional individuals who can guide you to grow your business in the market.

They help you in recruiting the senior management team. They can help your startup in taking major business decisions.

4. Help your startup in developing relationships

Generally, venture capitalists are big firms, so they maintain relationships with other big companies. This can help early-stage startup in getting resources from these big companies.

They can make good relationships with these big firms at a very early stage.

Disadvantages Of Venture Capitalists

1. Loss of control

The biggest disadvantage of a venture capitalist is that they possess some control of your business. This is because they have invested a very large amount in your business and apart from equity shares, they also want to participate in the decision-making process.

Sometimes the decision of founder and venture capitalist matches but when both parties have a different opinion then it becomes a problem for business.

2. Loss of ownership

As venture capitalists contribute millions of dollars in one company, so sometimes in exchange for money, they demand the majority stake in the company.

And due to lack of funds, some startups agree to the contract, and later they losses full ownership of their company. The result is that the founders are even unable to participate in the decisions making process in their own company only.

Similarities Between Angel Investors And Venture Capitalists

Now below we will discuss some similarities between both the investors which will give you a clear idea about this topic-:

Both are an alternative source of funding

The main similarity between angel investors and venture capitalists is that they both provide funds to small startups and companies.

This means in initial days when startups cannot raise funds from the bank and other big investors then they help them by providing financial help.

They both invest in innovative startups

Both angel investors and venture capitalists like to invest in innovative startups or ideas related to software, technology, and innovative product.

The reason behind this is that they know these types of startups show very fast and massive growth.

They both follow the same entry and exit

Both angel investors and venture capitalists provide finance to startup in exchange for equity shares and when the startups grow after some years, they both sell their share and earns profit from them.

FAQ On Angel Investors vs. Venture Capitalists

Now we will discuss some common question which will help you to feed this topic in your brain-:

Are angel investors venture capitalists?

No, They both are not the same. Angel investors are the persons who invest their own money while venture capitalists are the persons or firms who invest money from big corporations, and investment companies into startups.

What does an angel investor expect?

The angel investor usually expects a high return which is between 20%-25% within 5-7 years.

Do you have to pay back an angel investor?

No, officially you do not have to pay back money to angel investors. This is because he has already got equity shares of the company in which he has invested. So, he will earn a profit when the price of his shares will grow with the growth of the company.

How can I become an angel investor with little money?

According to SEBI(Securities and exchange board of India), an angel investor is said to be an accredited investor when his total net worth is $ 1million or he is earning $2,00,000 per annum.

Is angel investing profitable?

Generally, angel investors take more risk by buying equity shares of a startup in an early stage. They usually buy 10% of the total shares of that company. So, an angel investor has said on average that 11 percent of their total portfolio yields profit for them.

Conclusion

So, this was all about the battle of Angel investors vs. Venture Capitalists. I hope your all doubts are cleared in this article.

Raising money from which investor totally depends upon the nature and requirement of your business

If you like this article so please share it on Facebook, Twitter, LinkedIn, and other social media platforms.

You may also read-:

Ritesh Agarwal biography: The youngest billionaire in India.

Google CEO, Sundar Pichai Biography

29 Memorable Logos With Hidden Meanings

Tags-: Angel Investors vs. Venture Capitalist, Difference between angel investors and venture capitalists, Advantage and disadvantage of angel investors

Why Startups Fail In India: It's Not as Difficult as You Think

2020-07-16T11:08:00.000+05:30

Wondering to know the answer to the question of why startups fail in India, this post will clear your all doubts and confusion.

Failure of startups is one of the main problems that today's India's ecosystem is facing. According to a report by IBM about 90% of startups fail in its first five years of working.

The major reason why startups fail in India is lack of innovation and lack of funding.

But the question is that who is responsible for all these. Is it founders or government or investors. So in this article, we will study this case only.

We will also discuss some failed startups in India 2019 to let you understand more about this topic and to clarify your doubts.

Why Startups Fail In India?

Now the right time has come when we will be together discussing this hot and current topic.

Why startups fail in India features-:

1. Lack of funding.
2. Lack of innovation.
3. Lack of a business plan.
4. Shortage of cash in the business.
5. Lack of government support.
6. Lack of focus on the target market.
7. Not getting funding on time.
8. Lack of talented manpower.
9. Inability to solve a consumer problem.
10.Lack of flexibility.

1. Lack of funding

Funding is the lifeblood of a business. Without it, the survival of business has minimal possibilities. So in starting entrepreneurs collect money from family and friends and invest in their business.

But later when a startup needs angel investors for funding, it is very difficult to persuade investors because of competition in the market.

Sometimes startups do not get investment because the investor does not like their idea and business model.

So because of this businesses are unable to acquire professionals and experts as they are very expensive. Startups have to acquire low quality raw material to run their businesses.

And the ultimate result is the crash of business and consumers do not accept their low-quality product in the market.

2. Lack of innovation

In India, new startups follow the copyright approach. They copy the developed startups of western countries and start their business in India.

Some of them are successful but 9 out of 10 startups fail. This is because our ecosystem and western country's ecosystem is different.

Our ecosystem is similar to china but founders fail to understand it. There is merely any startup that is the creation of India and is spread all over the world.

Flipcart is a copy of amazon. OYO is a copy of Airbnb. Ola is a copy of uber. Ninjacart is a copy of Instacart. If you search on google about all of these you will get that they are loss-making companies.

3. Lack of a business plan

Business planning meaning strategy of growth of business in the coming years. The founders of startups fail do write an efficient business plan.

They identify the problem in the market, give a solution in the form of product, and for one year they see growth in business.

But after one or two years they are confused about what to do. They do not have future plans of expansion, innovation in product, or launching a new product.

There is a famous saying that "Failing to plan is planning to fail".So your business plan should be ready in advance only.

But one thing to take care of is that your business plan should be flexible which means that if later changes are needed in plan than changes can be implemented immediately.

4. Shortage of cash in the business.

Shortage of cash in business meaning that in balance sheet your business is earning profit but in hand, you don't have cash.

In simpler terms, it means a lack of working capital. Working capital is needed to cover day to day expenses.

But due to negative working capital startups are unable to cover its expenses. Working capital is also needed for taking loans to pay the interest rate.

If your business has a negative cash flow than your business is likely to shutdown.

5. Lack of government support.

The Indian government has launched a startup India scheme in 2016. This scheme was started to help new startups grow. The government planned to give funding and other benefits to new startups.

But according to a survey of 33000 startups,80 percent said that they get no support from this government scheme.

5o percent of them said that they were the victim of corruption and slow bureaucracy system

Corruption also plays a bigger role in the failure of a startup.

Without bribe, completing the legal procedure of a startup is difficult. Slow bureaucracy also plays a bigger role in the crash of the startup. Government employees take a long time to complete the files of the new venture.

Our infrastructure system is also very bad. We do not get proper electricity in the office and the proper road to our way to the office.

6. Lack of focus on the target market

The target market is the group of consumers whom you want to sell your product or service.

In the starting stage, many startups do not know their target market. They want to earn revenue fast so they focus on the entire market which increases their cost.

Insufficient to handle costs many startups in the early stage have to quit their business. So if you focus on the target market then you will be able to build a good startup.

Example-Maruti Suzuki only focuses on middle-class people. Apple focuses on rich people only. Redmi focuses on the middle class and lower class group.

7. Not getting funding on time

Lack of capital is one reason but not raising capital in time is another reason for the failure of the business.

Some startups ask funding too early and get rejected and some startups ask funding too late that investors get less return from business.

A startup should ask for funding at right time to grow its business effectively.

8. Lack of talented manpower.

Two businesses can have the same technical, physical resources but two businesses cannot have the same people skills. People or employees are the ones who can make your startup a billion-dollar venture.

But in starting if you hire unskilled employees than definitely your foundation of business is going to get affected.

While hiring employees you have to also check their attitude towards the organization. Their desires and goals should match with the organization.

In India, many ventures in starting hire cheap labors to save cost and later they release their mistakes

9. Inability to solve a consumer problem

What is a startup? A startup is an idea or solution to solve the burning problem of a consumer. The bigger the problem, the bigger will be the profit of your company.

But in India many ventures start their business with the profit motive and if you see their business than you will get to know that they are not solving any problem of consumer.

If you are not solving a consumer's problem than your startup is not healthy.

Example-Ola solves the bad taxi problem of consumer, OYO solves bad hotel service problem.

10. Lack of flexibility

Today business environment and consumer demand are changing rapidly. So the businesses which bring continuous change to their business are successful.

In India 9 out of 10 startups are unable to maintain pace with changing consumer demand. Because of this competition comes and disrupts the market.

Example-Reliance communication owned by Anil Ambani or Airtel. Jio comes into the market with new technology and had disrupted the market.

Reliance communication and Airtel didn't implement changes in their company and had lost a big market share.

So, these were the reasons why startups in India fail. Now below I will be telling you some real-life examples of failed startups in India.

Failed startups in India 2019

Below we will discuss some important case studies and examples of failed startups in India 2019-:

Failed startups in India 2019 features-:

1. Doodhwala.
2. Koinex.
3. Doctoral.
4. Wooplr.
5. Russia.
6. Mr needs.
7. Tinmen.
8. Loanmeet.

1. Doodhwala

Doodhwala was founded in 2015 by Akbar and Akash Aggarwal. It was a micro delivery business that started in Bangalore.

The startup used to deliver milk, eggs, grocery, bread, and other FMCG products. This venture delivers these basic things at a very low delivery cost.

The startups were a subscription-based startup and also has raised funding of $2 million from omnivore in exchange for a minority stake.

Reason for failure of Doodhwala

The startup was successful in getting initial funding but later they could not handle costs.

The second reason is competition from big market firms like the big basket, milk basket, and daily ninja, super daily.

When Doodhwala gets closed then an email was sent to its subscribers that now Fresh to home will continue the services of delivery of existing Doodhwala's customers.

2. Koinex

Koinex was founded in 2017 by Rakesh Yadav, Rahul Raj, and Aditya Naik. It was a digital asset exchange service platform.

Within 4 months of operation, Koinex has recorded $265 million in trading volume and 40K plus users within 24 hours. Koinex was India's fastest-growing startup in this field.

Reason for failure of Koinex.

The founders of Koinex told that the company was closed due to a lack of government support. The formal banking institutions were regulated to exit relationships with online digital assets exchange companies.

They told that the government was not clarifying proper regulatory framework for cryptocurrency exchange platforms. They even took the case to the supreme court but no favor was given to them by the court.

They were not getting services of banks due to regulation of Reserve bank of India on April 6,2018 on cryptocurrency exchange companies.

3. Doctalk

Doctalk was founded in 2016 by Goenka, Chamakura, and Aluru. It was a platform that connects patients with doctors. The patients can chat with doctors, a prescription can be exchanged, and in return the doctor's charges fee.

In 2017, Doctalk has raised $5 million in funding from Matrix Partners India, Khosla ventures, and others. It has also raised funding from Y Combinators.

Reason for failure of Doctalk.

The reason for the failure of Doctalk was that they were unable to pivot. Pivot means changing the startup's business model.

So Doctalk changes its business model from chat to electronic medical record solution.

But their business planning for the new business model was not efficient and ultimately Docktalk co-Founder Akshat Goenka had to step down as CEO and nearly 100 people were laid off last year in November.

4. Wooplr

Wooplr was founded in 2013 by Arjun Zacharia Sabharwal. It was a fashion discovery and social commerce startup. It was started in Bangalore

Since April, Wooplr has made massive job cuts. The employees who were asked to leave were provided a one-month salary package free.

Reason for failure of Wooplr

One of the major reasons for shutting sown of Wooplr is the lack of funds. The competition of Wooplr was able to merge with other businesses and was able to arrange finance easily.

Due to a lack of finance, this startup was unable to cover its cost and ultimately has to close down its services.

5. Russsh

Russsh was founded in 2012 by Bharat Ahirwar. Russsh is an on-demand service solution offering first mile and last mile solutions to individuals and businesses.

It was a promising startup and founders claim that they have completed 3,00,000 tasks before shutting down.

Its delivery consists of 60-80 executives. They were completing 150-200 tasks daily.

Reason for failure of Russsh

The main reason for their crash of Russsh was lack of funding. They were unable to convince the venture capitalist for finance.

Because of this, they were not able to give discounts like the competition was giving.

The founder also claimed that the team was also not correct.

6. Mr need

Mr need was founded in 2016 by Hitashi Garg, Yogesh Garg, Ravi Wadhwa, and Ravi Verma. It was a delivery platform.

People pay the subscription and Mr need provides them groceries in return.

It was a good startup that did 10.000 delivery in Delhi only.

Reason for failure of Mr need.

The major reason for the failure of Mr need was lack of funding. The startup was unable to acquire funds to cover its cost.

The second reason is competition from the big basket and gofers. They were huge companies with huge funds and Mr need was unable to compete with them.

7. Tinmen

Tinmen was founded in 2015 by Mukesh Manda and Chaitanya Degala. It was like other delivery startups only but its USP was that it delivers home-cooked food for working professionals with no delivery cost.

This startup was started in Hyderabad. This startup provides a meal in minimum Rs 65 which was it is one of specialty.

The startup was also funded by Zomato.

Reason for failure of Tinmen.

Tinmen's co-founder told to Inc42 that the reason for the shutdown is lack of funds and money. They were unsuccessful in raising funds from investors.

The second reason is competition in the market.

8. Loanmeet

Loanmeet was started in 2016 by Sunil Kumar and Ritesh Singh.

Loanmeet was involved in arranging working capitals requirement, B2B market place financing, cash credit line, and channel financing of RS 5000 to RS 5 lakhs period ranging from 15 days to 9 months.

Reason for failure.

Loanmeet was closed because they were unable to raise capital from the market as investors worry about the overcrowded market.

The second reason is that many companies were giving credit better than this startup. They don't even have deep information about the customer's needs.

Questions and answers

1. What percentage of startups fail in India?

Although India also produces successful startups according to a report by IBM 90 % of startups fail in its first five years of working. The main reason for this failure is the lack of funding and lack of innovation.

2. Why did Timberland fail in India?

Timberland is shoes making company especially producing hiking shoes and other gears. The main reason for its failure is competition from woodland which is also in the same segment of producing shoes.

3. Who is the youngest CEO in India?

Suhas Gopinath is the youngest CEO of India. He is an Indian entrepreneur who is the founder and CEO of Global Inc which is an IT company. He became CEO of the company at the age of 17 only.

At this time also he is the world's youngest CEO.

Conclusion

So I hope you like this article on Why startups fail in India. We have discussed reasons and examples also so that you can learn from these startups and you don't repeat these mistakes in the future.

In my opinion to solve this problem government should focus on improving the startup India scheme. They should also give tax benefits and should improve the bureaucracy system.

If you like this article so please share it on Facebook, Twitter, Pinterest, and other social media platforms.If any doubt contact me through vinayakganesh15@gmail.com

You may also Read

Sundar Pichai biography.

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Tags-: Why startups fail in India, Failed startups in India 2019

Ritesh Agarwal Biography:The Youngest Billionaire In India

2020-07-16T10:42:00.002+05:30

Wondering to know Ritesh Agarwal biography, education, salary, net worth, and other interesting details about him, then this post is best suited for you.

Ritesh Agarwal is an India Entrepreneur who is founder and C.E.O(Chief Executive Officer) of OYO rooms.

OYO room was founded in 2013 by Ritesh Agarwal. The OYO room is basically a hotel chain. It is the largest and fastest-growing hotel chain in India.

Not only in India but OYO rooms are also expanded in other countries like Malaysia, Japan, Saudi Arabia, Brazil, UK, Mexico, China, United States, Indonesia, Vietnam, Sri Lanka, Nepal, and many more.

Till now in 2020 the valuation of OYO rooms is more than $10 billion. After 12th class only he has started his first company.

So in this article, we will discuss self-made billionaire Ritesh Agarwal biography and we will also discuss other facts related to him.

Ritesh Agarwal Biography

Now the time has come when we will together be discussing biography of the Indian business magnate.

Tabular representation of Ritesh Agarwal biography-:

Full name	Ritesh Agarwal
Profession	Entrepreneur
Age	In 2020,26 years
Date of birth	16 November 1993
Birth Place	Cuttack, Odisha, India
Zodiac sign	Scorpio
School	Not known
College	Indian school of business and finance, Delhi
Educational Qualification	College Dropout
Nationality	Indian
Family	Father-Not known Mother-Not known Brother-Not known Sister-Not known
Marital status	Unmarried
Girlfriends	Not known
Net Worth	As in 2020,$1.1 billion(7253 crores)

Ritesh Agarwal Early Life

Ritesh Agarwal was born on 16 November 1993 in Bissam Cuttack Rayagada which is located in Odisha.

He belongs to a middle-class Marwari family. His family background is business class but before Ritesh became multi-millionaire his family's financial condition was not good.

From childhood only he was different from other kids. He had a keen interest in computers and he intentionally finds opportunities for making mistakes so that he can learn from it and grow his knowledge.

He started coding at the age of 8 years only. Because of this, his interest grew in software.

Once he borrowed a programming book from his brother to learn to code. Then He has learned the basic language and Pascal from school and the rest of the languages from google.

When he was 13 years old he used to sell sim cards for a living.

When he was in the 10th class then he wants to make his career in coding. His love for coding increases then onwards.

So in 2009, he went to Kota for preparation of IIT and there he found out that it is the best place to learn to code.

While preparing for exams Ritesh once said that he could not wait every weekend to slip out to Delhi and meet those doing their own things.

When Ritesh was 16 years old, he was selected for an Asian science camp which was organized at the Tata Institute of Fundamental Research(TIFR). He was selected among 240 students.

When he was 19 years old he used to travel a lot and stay in budget hotels and PGs.He used to attend customer calls as he wants to experience everything about budget hotels.

While traveling his interest grew in Entrepreneurship. He used to attend different events on entrepreneurship and learn about it.

These experiences helped him to shift from Oravel to OYO.His curiosity to try new things helped him to become a billionaire at such an early age.

Ritesh Agarwal Education

Ritesh did his schooling from his state Odisha only and then he went to the Indian school of business and finance, Delhi for the degree. But later he dropped out of college.

Ritesh Agarwal Carrer And OYO Success Story

In 2011 Ritesh moved to Delhi for the preparation of the SAT to do further studied in the United States. But later the SAT never happened.

So during that time, he used to study ventures, startups, entrepreneurs, businesses, and Airbnb.

Ritesh Agarwal also joined the University of London but after 3 days only he gets bored and he started taking leaves so that he can focus on his venture and project.

Fortunately, he never went back to university. So after analyzing the market for the hotel industry in India, he noticed that 90% of hotels in the market are budget hotels but the service they provide is not good.

So in 2012, he started his first startup called Oravel stays. It was an aggregator for beds and breakfast stays in India.

In simpler terms, Oravel was a website that enables you to list and book different hotels across India.

Later he got 30 lakhs rupees funding from VentureNursery, which brings storied investors together to nurture new startups.

After that, he also presented his idea in Thiel fellowship, a contest among students under the age of 22 to drop out of college and start there own startup.

He secured his position among the top 10 and received funding of $1,00,000 as well as other resources and guidance. Thief fellowship was organized by PayPal co-founder and Facebook investor Peter Theil.

After receiving a huge amount of money his focus in his venture increased and he started doing more hard work to fulfill his dream.

But in between, he felt wrong and thought that this business model will not work in long term. His growth of business at that time became constant.

Then Ritesh even brought Manish Singha as co-founder of Oravel. They both tried to copy Airbnb's business model but things did not work.

Unfortunately, Manish Singha has to quit the company, and Ritesh was left alone to grow the company to billion-dollar.

So he started to think about the new business model and ultimately found that traveling customers want affordable and comfortable hotel rooms.

But at that time 90% of hotels in the industry were unorganized and were not fulfilling customer satisfaction. The good hotels were expensive.

So he thought to provide both comfort and less price hotel rooms to customers. He also has experience of living in crappy hotel rooms during his college time when he was traveling.

This motivated him and he brought a platform on the Internet to share the details of affordable and good hotels to customers.

In 2013 Ritesh changed his business model and re-named the company from Oravel to OYO.OYO's full form is On Your Own.

OYO is basically a hotel chain that provides basic necessities, comfortable rooms, affordable rooms at a cheaper price. At that time no singe hotel was providing all these facilities.

The hotel which provides comfort and premium services were expensive. So to convert budgeted hotel rooms into premium rooms OYO reached these hotels or hotel owners can also contact their team.

Then OYO sent a group of members to their hotels whose work is to notice changes that can dine in their hotels.

After implementing changes OYO lists their hotel to their online platform and OYO takes some percentage of share from the price of hotel rooms.

This business model really works and it helped Ritesh to become a billionaire.

After the launch, Ritesh invited Bhawna Agarwal who is the CEO of SeventyMM for advising.

They really worked hard and they played smartly to ensure that no work is left behind. They wanted growth with stability.

They increased their team from 5 to 25 and also managed partnerships with dozens of hotels. This really worked and they were able to fulfill customers' demand and could able to meet customer satisfaction.

In 2014, the startup raised 4 crore funding from Lightspeed Venture Partners(LSVP) and DSG consumer partners

Then OYO became a big success and was able to ensure the booking of 1 crore per month.

OYO is a revolutionary startup in India who converted budgeted hotels into branded budgeted hotels.

Now currently in 2020, OYO has more than 10 lakhs rooms in more than 80 countries. It has a topline of 6000 crores. It is spread over 450 cities in India only.

Ritesh Agarwal age

Ritesh Agarwal was born in 1993 so currently as per 2020 hi age is 26 years old.

Ritesh Agarwal Net worth

As per 2020 Ritesh Agarwal net worth is calculated $1.1 billion(7253 crores). He is currently the youngest self-made billionaire in India.

Ritesh Agarwal Achievements

Ritesh Agarwal has won many awards both nationally and internationally. Some of the awards are as follows:

1. TIE-Lumis Entrepreneurial Excellence Award in 2014.

2. Top 50 entrepreneurs in 2013 by TATA First Dot powered by NEN awards.

3. Business world young entrepreneur award.

4. Forbes "30 under 30" in the consumer tech sector.

5. The first resident Asian to win "20 under 20" Thiel Fellowship(2013)

6. At 17, he authored a best-selling book,'Indian Engineering Colleges: A complete Encyclopaedia of Top 100 Engineering Colleges'.

7. One of the '8 Hottest Teenage Start-Up Founders in the World' by Business Insider (2013).

8. Written a book named 'Kaleidoscope' which has around 25 award-winning short stories.

9. World's Youngest CEO at 17(recognized at 16).

10. Finalist of Global Student Entrepreneurship Award-India.

Ritesh Agarwal Quotes

"The reality of startups is that you have failure very often"

"Start small, nail it and then make it big"

"It is extremely important to build something that 100 people absolutely love using rather than make something that a 1000 people would just, kind of, like"

"Don't worry about being successful but work toward being significant and the success will naturally follow"

"Stand alone to stand apart"

"Hire people not for today but for 2-3 years from now and let them grow with the company"

"Your brand reflects your culture, purpose, and identity. It's never too early to start thinking about it"

"You must be willing to stretch out of your comfort zone, take risks, and be emotional(in a good way) about your venture and stakeholder involved."

"Have a passion for solving a big problem and leaving a huge impact. Once you have that, everything else falls into place."

"A founder should be willing to be hands-on during the execution, especially in the early days of a startup."

"Stay away from your family when you are working on a startup. They make your life difficult"

Interesting facts about Ritesh Agarwal

1. Ritesh Agarwal was not confident about his studies.

He always doubted himself from childhood that he will not prosper in life because of studies.

He says, "I knew if I had gone to college, I would not have done well."

2. OYO does not have any International competition

Ritesh once said that OYO does not have any international competitor so he can grow his business internationally easily.

3. Youngest billionaire In India

In 2020 Ritesh is currently the youngest billionaire in India.

4. Failed six times

Ritesh once said that before starting of OYO he failed six times.

5. Have a simple family background

Ritesh belongs to a Marwari family in Odisha. His family used to run a small shop. So if Ritesh would not have selected his own journey than might have to run his father's shop.

FAQ On Ritesh Agarwal Biography

1. Is OYO legal for unmarried couples?.

On OYO's app, you can see a relationship mode. This mode is especially for unmarried couples. No law in India restricts the relationship between unmarried couples.

2. Can we drink alcohol at OYO rooms

No drinking alcohol is prohibited in OYO rooms.

3. Is Ritesh Agarwal married?

No Ritesh Agarwal is not married.No information is available related to his affairs and girlfriends.

4. Who is OYO's owner?

Ritesh Agarwal is the founder and CEO of OYO Rooms.

5. Where is Ritesh Agarwal from?

Ritesh Agarwal is from Bissam, Cuttack, Rayagada in Odisha.

6. Is Ritesh Agarwal a billionaire?

Yes, Ritesh Aggarwal is a billionaire.

Conclusion

So I hope you like Ritesh Agarwal biography and other details about him and OYO. He is the inspiration for many young and aspiring Entrepreneurs.

If he can achieve such a big success in such a small age then why are you waiting in your home? Go stand and take action. Maybe you can be the next billionaire.

If you like this article then please share it on Facebook, Twitter, Link-din, and other social media platforms.

You may also read

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Google CEO Sundar Pichai biography

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Tags-: Ritesh Agarwal biography, Ritesh Agarwal age, Ritesh Agarwal net worth

Sundar Pichai Biography,Education,Salary,Wife and Net worth

2020-07-16T10:16:00.000+05:30

Sundar Pichai Biography: Sundar Pichai biography, education, salary, wife, net worth, and other lots more facts will be shared in this post.

Sundar Pichai biography

Sundar Pichai is the Chief executive officer(C.E.O) of Google and Alphabet Inc. He is an Indian who was born in Madurai, Tamil Nadu.

Today he is an inspiration for many Indians and has made India proud. But there are only a few people which know about the details of the biography of Sundar Pichai.

So this article will tell you about Sundar Pichai biography and other interesting facts related to Sundar Pichai.

Table showing contents of the biography of Sundar Pichai-:

Full name	Pichai Sundararajan
Age	48 years
Date of Birth	July 12,1972
Birthplace	Madurai, Tamil Nadu
School	Jawahar Vidyalaya, Ashok Nagar, Chennai Vana Vani school in IIT Chennai
College	Indian Institute of technology, Kharagpur Stanford university, California Wharton school of university of Pennsylvania
Education	B.Tech from IIT Kharagpur M.S in material science from Stanford University. M.B.A from Wharton school of university
Nationality	American
Marital status	Married.
Wife	Anjali Pichai
Children	Son-Kiran Pichai Daughter-Kavya Pichai
Parents	Father-Regunatha Pichai Mother-Lakshmi Pichai
Siblings	Brother-Srinivasan Pichai
Salary	$2 million
Net worth	$1.2 billion
House	$6.8 million at Los Altos Hills, California

1. Sundar Pichai Early Life

Sundar Pichai was born in Madurai, Tamil Nadu in India. He was born on July 12,1972. From childhood only he has a keen interest in technology and computer.

Sundar Pichai's mother's name is Lakshmi Pichai who worked as a stenographer. His father's name is Regunatha Pichai who worked as an electrical engineer in a general electric company which is a British company. His father also has a manufacturing plant that produced electrical components

He was a bright student and excelled academically in school.

2.Sundar Pichai Education.

Sundar Pichai did his schooling from Jawahar Vidyalaya, Ashok Nagar in Chennai. He completed his 12th from Vana Vani school in IIT Chennai. He excelled academically and went to the Indian Institute of Technology, Kharagpur to do B.tech.He completed his B.tech in 1993.

Then he gained a scholarship from IIT Kharagpur and went to do Stanford university to do M.S in engineering and material science. In 1995 he completed his education from Stanford.

Then after that Sundar Pichai completed his M.BA from Wharton school of the University of Pennsylvania in 2002.

3. Sundar Pichai Career

After completing M.S in engineering and material science, Sundar Pichai worked in applied material which was a semiconductor maker in silicon valley. He was posted as a product manager and as an engineer. Then he went to pursue his M.B.A from Stanford.

Then after completing M.BA he joined McKinsey & Company as a management consultant.

Then in 2004 he joined google as a head of product management and development. Initially, he worked in google toolbar with a small team that led the users of Microsoft internet explorer and Firefox to use google search.

He also worked in other products like google map, Gmail, google drive

After the success of the Google toolbar, he proposed the idea of launching google chrome to its senior. In starting days his senior rejected his idea by saying that it will be too expensive.

Then later he was able to convince his seniors and Sundar Pichai to start working on google chrome. Then in 2008 google launched its search engine and google chrome was a big success for google company.

He was made vice president of product development.

After this Sundar Pichai gained mass popularity and then in his supervision company also launched chrome OS, chrome cast, and chrome book. These products were released in 2012 and after that, he was made senior vice president of Chrome and apps.

Then later in 2013 the company also added android to its list in his supervision. Sundar Pichai by his work continuously gained popularity and in 2014 he was made product chief.

In 2014 he was also a contender for C.E.O of Microsoft but later Satya Nadela got that position.

In 2015 google made a new company which was named alphabet.Inc.It was a holding company that owned many subsidiaries that were previously owned by Google.

So finally on 10 august 2015, Sundar Pichai was made C.E.O of a company

Later in 2019, Larry page steps down as C.E.O of Alphabet.Inc and Sundar Pichai became CEO of Alphabet.Inc also.

4. Sundar Pichai Personal Life

Age

As of now in 2020 the age of Sundar Pichai is 48 years old. His zodiac sign is cancer.

Wife

He is married to Anjali Pichai who is from Kota, Rajasthan. She is currently working as the business operation manager in intuit which is a software company.

They were both classmates in IIT Kharagpur and after many years of staying away from each other, they were still able to maintain their loyalty in the relationship.

Children

Sundar and Anjali Pichai had two children. The name of the son is Kiran Pichai and the daughter's name is Kavya Pichai.

Brother

He has a younger brother whose name is Srinivasan Pichai

5. Sundar Pichai Salary

As of 2020, Sundar Pichai earns $2 million.

6. Sundar Pichai Net worth

The net worth of Sundar Pichai as of 2020 is $1.2 billion.

7. Sundar Pichai House and assets

Sundar Pichai lives in a 10,557 square foot villa in Los Altos Hills in California. The house also has its own tennis court and miniature golf field.

He owns luxurious cars like google testing cars, Tesla, and Cadillac.

Facts about Sundar Pichai

Sundar Pichai is a diplomatic leader. He is really soft-spoken and he helped google to maintain relations with Samsung.

In google, Pichai controls search, ads, google play store, maps, YouTube, and android.

Pichai was the captain of his school cricket team.

Pichai was a contender for the position of CEO of Microsoft in 2014. But later Google gives more financial gain to Sundar Pichai to stay on google.

He stills interact with his friends of IIT Kharagpur on Skype.

Sundar Pichai is a very helpful, humble, and grounded person.

He married his classmate Anjali Pichai. Both met at IIT Kharagpur

He has a very sharp memory. He can instantly remember numbers while dialing.

Last year he got $251 million compensation from google in the form of stocks.

He also owns stocks of Alphabet.Inc after becoming its CEO in 2019.

Conclusion-:

So I hope you like Sundar Pichai biography. He has made our India proud by becoming C.E.O of such a huge company google. He is surely our valuable asset.

If you like this article so please share it on Facebook, Twitter,LinkedIn, and other social media platforms.

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Effective ways to increase sales by 10x

29 memorable logos with hidden meanings.

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How to win friends and influence people book summary.

Tags-: Sundar Pichai biography, Sundar Pichai net worth, Sundar Pichai salary, Sundar Pichai wife, Sundar Pichai education

Summary: How to win friends and influence people

2020-07-03T08:26:00.001+05:30

How to win friends and influence people summary: How to win friends and influence people summary and lessons to grow your personality and business in digital age.

How to win friends and influence people summary.

How to win friends and influence people is the best selling book of all time for many years.

In this all the techniques are stated by which you can easily influence people and win friends.The principles in this book are based on psychology of human behavior.

So below i have shared brief summary of how to win friends and influence people.By reading this summary i am sure that you do not have to read whole book.

Tables of content of how to win friends and influence people summary

PART ONE-:Fundamental techniques in handling people.

1. If you want to gather honey,don't kick over the beehive.

2. The big secret of dealing with people.

3. he who can do this has the whole world world with him.

PART TWO:Ways to make people like you.

1. Do this and you will be welcome anywhere.

2. A simple way to make a good first impression.

3. If you don't do this, you are headed for trouble.

4. An easy way to become a good conversationalist.

5. How to interest people.

6. How to make people like you instantly.

PART THREE-:How to win people to your way of thinking.

1. You cant win an argument.

2. A sure way of making enemies and how to avoid it.

3. If you are wrong admit it.

4. A drop of honey.

5. The secrets of Socrates.

6. The safety valve in handling people.

7. How to get cooperation.

8. A formula that will work wonders for you.

9. What everybody wants.

10. An appeal that everybody likes.

11. The movies do it. TV does it.....Why don't you do it?

12. When nothing else works try this.

PART FOUR-:How to change people without giving offense.

1. If you must find fault,this is the way of begin.

2. How to criticize and not be hated for it.

3. Talk about your own mistakes first.

4. No one likes to take orders.

5. Let the other person save face.

6. How to spur people on to success.

7. Give a dog a good name.

8. Make the fault seem easy to correct.

9. Making people glad to do what you want.

PART ONE-:Fundamental techniques in handling people.

1.If you want to gather honey,don't kick over the beehive.

In this book how to win friends and influence people dale carnegie has told to not criticize,condemn and complaint other people.If you criticize other peoples thing then they would always defend themselves.

So instead of criticizing ,people should get rewarded for their work.This way they learn faster and improve their mistakes.People are emotional creatures so you should connect to theirs emotion by not criticizing but by rewarding them.

2.The big secret of dealing with people.

In this chapter of how to win friends and influence people dale carnegie has told to appreciate others idea.The basic purpose behind this is to get people feel that they are important.

But appreciation should be honest appreciation.It should not be flattering.According to research people improve themselves more if they are appreciated honestly.People get to know when it is appreciation or when it is flattering.So always appreciate people even in small things.

When you do flattering it means you have selfish motive and other people get to know about you motive.

3.He who can do this has the whole world world with him.

In this it is explained that when you do dealing with people then some people always talk about that what they want.This is a wrong way.If you want to convince people then always talk that what the other person want.The deal should give advantage to both the parties.

Example-Once dale carnegie stayed in a hotel for some event.So after one day of staying in hotel the letter of manager of hotel approached him.In this letter the manager has told that they are increasing rent of room by 300 percent in which event was to be held.Dale carnegie has already sent invitation card to people and he had no choice rather to do event in that hotel only.

So what a normal person would do,he would go to mangers room and argue with him but dale carnegie wrote a letter to manger telling that if he doesn't give him that he will not be able to afford this rent and he had no choice to cancel the event.But if he cancels event then there is a big loss to hotel also as educated and professional people come in his event and hotel can get opportunity to advertise its hotel very cheaply.He told that what hotel will loss and what hotel will gain if he does not do event in their hotel.After this manger responded to his letter by increasing rent by only 50 percent.

In this way dale carnegie without arguing with him was able to convince him.

The principle is that each party should gain from negotiation.

PART TWO:Ways to make people like you.

1.Do this and you will be welcome anywhere.

In this chapter of how to win friends and influence people dale carnegie has told to get interested in other person.Many people while talking always talk about themselves only.No one is interested in you. They are always interested in themselves.

So talk about others people interest.The communication should be 30/70 communication. You should talk 30 percent and let the other person talk 70 percent.

2..A simple way to make a good first impression.

If you want to impress other person in first time then always smile while talking.You might have noticed that when you smile then automatically smile comes in other person face.The positive energy flows from you to the other person.The other person thinks that you are interested in talking with him.This way you can influence other person.

The meaning of smile on your face means -"I am glad to see you,I like you"

3.If you don't do this, you are headed for trouble.

In this chapter of how to win friends and influence people it is advised to take names of people again and again while talking to them.The people are very much interested in their own names.They feel important when you take name of them.

People often forget names of people and while in conversation they ask peoples name again and again. This is wrong way of dealing with people.

You should make habit of memorizing names of other people.

4.An easy way to become a good conversationalist.

In this chapter of how to win friends and influence people it is told to become a good listener. You should encourage other people to talk about about themselves.When you listen people carefully then it makes them feel important.

Example-:always listen to customer complaint ,this would help establishing good relations with them.This would make them feel that they are important.

5.How to interest people.

The first principle told us to get interested in other person .In this principle it is told that how can you do this.You can do this by talking about that topic which other person like.This helps you to connect with them emotionally.By this way they think that you are similar to him.This way you can influence people easily.

Example-If other person interest is in automobile industry then talk about it only in your conversation.

6.How to make people like you instantly.

In this chapter of how to win friends and influence people it is told that people will instantly like you if you give them importance.You can give them importance by listening to them,by using phrases like thank you,welcome,would be so kind.

You can also appreciate them in small things.By making feel important you can instantly influence them make them like you.

But remember you should do this sincerely and honestly.

PART THREE-:How to win people to your way of thinking.

1.You cant win an argument.

In this chapter of how to win friends and influence people it is told that never argue with somebody whom you want to make good relation.It is because when you argue with somebody it makes them feel less importance and that person will never like you in future.

In the words of Ben Franklin:

“If you argue and rankle and contradict, you may achieve a victory sometimes; but it will be an empty victory because you will never get your opponent’s goodwill.”

When you argue with somebody and if you win argument then also you hurt others people pride and self-respect.

2.A sure way of making enemies and how to avoid it.

In this chapter dale carnigue has told that if other person is wrong so never say directly to him that he is wrong.This will hurt is pride and self -respect.Inside him he knows that he is wrong but he will never admit it.

So you have to use little diplomacy while criticizing other.This will be explained more in details in part 4 that how to smartly criticize others.

But when you are wrong in an argument.Admitting that you are wrong is the best way to finish an argument.

3.If you are wrong admit it.

In this chapter of how to win friends and influence people it is said that when you indulge in an argument the first thing you have to analyse is that who is wrong.If you are wrong then you should honestly admit it.Admitting it would not lower your image but it will increase respect of your's in other person's mind.

This is the best way to finish an argument in polite way

As the proverb goes: ‘By fighting you never get enough, but by yielding you get more than you expected.’

When you are wrong ,saying sorry to other person will make him more important and he would be influenced by you.

4.A drop of honey.

In this chapter of how to win friends and influence people it is told that while talking to other person you should begin in a friendly way.You should talk politely to people.You should talk them like a friend.

If you want to criticize them so before you should appreciate them on their work and then criticize them.This balances their emotion.But some people start talking to people by criticizing them only.This is wrong and should be avoided.

5.The secrets of Socrates.

In this chapter of how to win friends and influence people dale carnigue has told that when you are talking to people and trying to convince them then you should first ask those questions to them for which they would surely answer yes.Ask about 5 question for which they will surely answer yes then ask main question.In most of the cases they will be surely convinced.

Actually this is a psychology that after 5 yeses it is difficult for a person to say no.The mind of him directs him to say yes only.This is very effective method.

6.The safety valve in handling people.

In this it is told that let the other people do great deal of talking.When you let other people talk about themselves they feel important.

You should only talk 30 percent and let the other person talk 70 percent.You should listen them patiently.You should encourage them to talk more.By this way you can handle people easily.

7.How to get cooperation.

In this chapter of how to win friends and influence people it is told that let the other person feel that idea is his or her.It means that don't tell other people what to do.You should only suggest them and let them to take decision.

This way they will work more effectively when they would think that the idea of working is taken by them only

8.A formula that will work wonders for you.

This is a very important chapter in which dale carnegie has told to think the things in others point of view.When somebody is arguing with you,then you should find the reason behind that and should think that if i were in place of him then what will i do.

This helps to bring more cooperation and this will bring more understanding.This helps you to avoid enemies and make friends more easily.You should listen people with open mind.

9.What everybody wants.

In this chapter of how to win friends and influence people it is advised that be sympathetic with others ideas and desires.

When somebody commits a mistake ,so rather than criticizing him directly you should tell him that if i were in place of yours then i would commit same mistake.Then after saying this phrase you should tell him how to improve this mistake.

This makes him relax and it delivers good image of your's in front of him.

10.An appeal that everybody likes.

This is a appeal of nobler motives.A person does things because of two reasons.First for selfish motive and second is for nobler motives.You should not always do work for selfish motive rather you should also do something for good motives.

Example-You should not always appreciate people because you want something from them rather you should also appreciate them to make them feel happy.

11.The movies do it. TV does it.....Why don't you do it?

This chapter helps you to grab attention.In this chapter it is told that TV and movies dramatize their products to grab attention.So while talking you should also dramatize your self to grab attention of others.This you should not do always but sometimes when it is necessary.

12.When nothing else works try this.

When nothing else works try this means to throw a challenge in front of people.When you challenge different people,a energy to complete this challenge flows inside them.By completing the challenge they want to make them feel important.

This is generally done by most of companies to their employees. This increases self-satisfaction among employees.This gives them chance to prove they are worth or not.

PART FOUR-:How to change people without giving offense.

1.If you must find fault,this is the way of begin.

Sometimes you find faults in other people.So if you want to point out towards their faults ,so never directly criticize them.You should always appreciate them first them talk about faults.

2.How to criticize and not be hated for it.

In this chapter of how to win friends and influence people it is told that many people appreciate first then they add "but" to their sentence and then criticize. This is wrong way.Instead of using "but" you should use "and"

Example-:‘We’re really proud of you, Johnnie, for raising your grades this term. But if you had worked harder on your algebra, the results would have been better.’

This is wrong in this way he would think that appreciation was just a way to criticize him.

rather you should say-:

We’re really proud of you, Johnnie, for raising your grades this term, and by continuing the same conscientious efforts next term, your algebra grade can be up with all the others.’

This is the correct way to convince other.

3.Talk about your own mistakes first.

If you want to really criticize somebody and talk about their mistakes then first talk about own mistake and then politely theirs mistake This helps to convince people.This make them emotionally connect with you.

4.No one likes to take orders.

In this chapter of how to win friends and influence people it is told that always ask other person to do work rather to give orders to them.When you ask other person to do work than they work with more enthusiasm because idea of working is their only.

If you make people part of their decision then they feel more important.

5.Let the other person save face.

In this the author had told that you should never criticize or insult any person in public.You should never let the other person's image diminish in his owns eyes.This will surely hurt his ego and self-respect.You should always respect other person's point of view and image.

We have no right to hurt others people pride and image.If we do so then sure we are making enemies.

6.How to spur people on to success.

In this chapter of how to win friends and influence people it is told that you should praise the slightest improvement and praise every improvement. Be “hearty in your approbation and lavish in your praise.”

People like when they are appreciated.But appreciation should be sincere appreciation not flattering.The appreciation should come from heart.

People get to know when they are not appreciated sincerely.This presents bad image of your's in others point of view.Appreciation make people change themselves.

7.Give a dog a good name.

In this the author had explained that you should give fine reputation to other person.The traits which you want in other person,you should assume that traits in him.And then act accordingly.This way you would be able to handle people easily.

Without arguing you would be a good leader.You would be able to convince people easily.You would be able to get work from them easily..

8.Make the fault seem easy to correct.

In this the author has told that many people directly find faults in other people which ruin their image in front of them.Instead when you find mistakes ,you should make faults very easy to solve to other person.You should explain him politely that how to correct it.

This way he is ready to learn everything from his mistake and you are also able to maintain good image in front of him.

9.Making people glad to do what you want.

In this chapter of how to win friends and influence people the author has told that you should make other person happy while suggesting them things to do.This means that you should deliver him something good so to make him happy.

You should always think of benefits he will get by completing your work.You should provide incentive to him.You should never order him but ask him politely to do work.This way he is ready to do work more effectively and efficiently.

You should be empathetic to other person. Keep yourself in place of other person.

Conclusion-:

So i hope you like the how to win friends and influence people summary.This will help grow you personality and business in digital age.This is a very simple book about human psychology.

If you like this article please share it on Facebook,link-din,twitter and other social media platforms.

You may also Read

Sundar Pichai biography.

29 memorable logos with hidden meanings.

The advanced guide that how to make investors deck.

29 Memorable Logos With Hidden Meanings

2020-07-03T08:26:00.000+05:30

Logos with hidden meanings: Logos with hidden meanings and messages of different companies to help you understand the creativity of designers and companies policy towards its goal.

Logos with hidden meanings

The logo is the symbol that identifies organization products and services. Through the logo, companies try to tell about its goal to the public.

But finding hidden meanings in the logo can be difficult for the common public. So this article will clarify your doubts and confusion.

I will discuss 29 famous and memorable logos with hidden meanings that will uplift your interest, excitement, and knowledge.

Logos with hidden meanings features-:

1. State bank of India.
2. Domino's Pizza.
3. Airtel.
4. Pepsi
5. Vodafone.
6. Toyota.
7. Unilever.
8. Nike.
9. Audi.
10. Samsung.
11. Adidas.
12. Amazon.
13. Puma.
14. Apple
15. BMW.
16. LG
17. MasterCard.
18. Hyundai.
19. Baskin Robins.
20. Pinterest.
21. Chupa Chups
22. FedEx
23. Levi's.
24. Rolex.
25. Formula 1.
26. Evernote.
27. Vaio
28. Coca cola
29. Walt Disney.

1. State bank of India.

State bank of India logo has a very interesting hidden meaning. The blue part of the logo depicts its large size.

The white part between the blue part is the symbol of the common man. It shows that the bank is always ready for service for the common man.

The shape of the white part is similar to a key also which depicts the safety, security, and strength of the bank. This logo was designed in 1971.

2. Domino's Pizza

Domino's pizza logo has a very interesting hidden message. The single white dot on the top right box

shows its first store. The two white dots in the top left box shows its second store.

Actually, the motive of Tom Managhan who is the owner of Dominas was to add more dots on the box based on the expansion of more stores. But it is impossible to add more dots in a single box as now Dominos has 17000 plus stores.

So after seeing the store growth they have to abandon their idea of putting more dots.

3. Airtel

Airtel has a creative hidden meaning in its logo. The red color of the logo depicts energy and passion.

The shape above Airtel word is the alphabet "a".

But the alphabet is of open style which depicts a world of unlimited possibilities. It shows no boundaries.

4. Pepsi.

Pepsi has paid one million dollars to its logo creator. Its logo has red, white, and blue colors as it is the color of America's national flag also. Pepsi is an American company.

The shape of the logo is a circle because it depicts smile emoji which is the symbol of customer satisfaction.

5. Vodafone.

Vodafone's logo has a unique hidden message. The word Vodafone is made of three words that is-Vo means voice, da means data, and fone means phone. It depicts a mobile services company.

But the figure of its logo has a quotation mark in between which depicts a conversation between two people. It shows that it connects two people while talking on the phone.

6. Toyota

Toyota's logo is one of the unique logos in the world. In this logo, all the alphabets of the Toyota word are hidden in the logo.

7. Unilever

Unilever's logo is very creative. The U letter in the logo depicts the first alphabet of Unilever's word. But the figure for the logo of Unilever has 24 icons. It shows different companies of products owned by Unilever.

If you zoom logo than you can see different shapes of products owned by Unilever company.

8. Nike

Nike's tick in the logo has an interesting hidden meaning. It shows quickness. Nike also produces shoes for athletics. So quickness in athletics is its main motive hidden behind the logo.

Its logo was created by Carolyn Davidson in 1971 for Rs 35$. But later when Nike became a great company then in 1983 Nike gifted her a gold ring in the shape of the right tick and 500 shares of the company.

9. Audi.

You might have wondered that whats the meaning of four interconnected rings in the logo of Audi. The four rings depict four companies that are Hoarch, Audi, DKW, and Wandere. These four companies got merged in 1932 and Audi became head of these four companies.

10. Samsung.

Samsung is a Korean company. So sam in Korea means 3 and sung in Korea means star. The hidden message behind the logo is that it is a 3-star company. Actually, in Korea, number 3 is considered a very lucky number.

And the logo of Samsung also depicts power.

11. Adidas

The logo of Adidas has a unique hidden meaning. The white rectangular boxes forming the shape of a mountain. So the mountain represents challenges.

The logo of Adidas represents challenges for athletics.

12. Amazon

Amazon is the largest e-commerce company. Its logo has a creative hidden meaning. The arrow from A to Z depicts that all the products are available on this platform.

This arrow is a curved arrow that depicts a smile. The smile depicts the main motive of the company which is customer satisfaction.

13. Puma.

The logo of Puma is taken from animal Puma concolor. This animal can run 80km/hr speed.

Puma concolor can jump 20-40ft horizontal and 18ft vertical. The name and logo are fully inspired by this animal.

14. Apple

The logo of apple has a very simple hidden message. The name of the company is depicted in the logo which is apple fruit. But many people did not know why there is a bite in the apple.

This logo was created by Rob Janoff and in 2016 he revealed that without bite the logo can look like any fruit that can be tomato or orange but the bite shows that it is apple logo which makes it cool.

15. BMW

BMW is a German company who was originated in Bavarian. Its full form is Bavarian motor works. But the figure in between the logo is the national flag of Bavarian where this company was originated.

16. LG

The logo of LG has L and G in it which shows the company name. But the single white dot in the logo has hidden messages. By putting that white dot the logo looks like a smiley emoji. The smile depicts customer satisfaction.

17. Master card

The master card has two circles which are of red and yellow color. The red color depicts passion, joy, and vitality. The yellow color depicts happiness, richness, and prosperity.

The logo shows that the company has a mixture of these traits. They believe that whenever a customer uses there services they possess the same traits.

18. Hyundai.

The logo has a well-hidden message. Many people think that the letter H is from the word Hyundai.

But actually, in alphabet H, two men are shaking hands. The first man is the company itself and the other man is the customer. Shaking hands depicts the relationship between company and customer.

19. Baskin Robbins

Baskin Robbin's logo has an interesting hidden meaning. If you carefully see only pink part then it becomes letter 31. It shows that the company sells 31 flavors of ice cream.

20. Pinterest.

Pinterest is an American image sharing company designed to enable saving and discovery of information on the world wide web using images. The first alphabet of word Pinterest i.e P is similar to the shape of the pin. It depicts that you can pin images on their platform

21. Chupa Chups.

Chupa Chups is a Spanish company. The word Chupa Chups is taken from word chupar which in Spanish means to suck. The company very smartly depicts the meaning of the logo through its product.

22. FedEx

FedEx also has a very unique hidden meaning. If you see a gap between letter E and X in FedEx then it forms the shape of an arrow. The hidden arrow represents speed and precision.

23. Levi's

The logo of Levi's has a hidden message. There's a 'batwing' shape at the bottom of the logo. This depicts back pockets of the pair of jeans.

24. Rolex

Rolex is a luxury watchmaking company. Its logo has a very premium hidden message. The crown which is of golden color depicts excellence in watchmaking. The green color in word Rolex depicts prosperity.

25. Formula 1

Formula 1 has a smart hidden message in its logo. If you see the white gap between F and red stripes then it forms number 1 which is used in the company name. The red stripes depict speed achieved by this company's cars.

26. Evernote

Evernote is a note-taking application. Its logo has an elephant face that has a smartly hidden meaning. As we all know that elephants have a good photographic memory. So it shows one feature of its application.

The second thing to notice is that the ears of the elephant are folded which shows a corner of pages folded to make notes.

27. Sony Vaio

The hidden meaning of this logo is technology-based. The first two letters of word Vaio depict analogue symbol. The last two letters of word Vaio depict number 1 and 0 which depicts binary language.

28. Coca-Cola

Coca-cola has used the logo very smartly. If you see between letter a and l then there is a Danish flag. The company has used the logo in one of the campaigns in the Scandinavian country.

29.Walt Disney

Many people assume that Walt Disney's word is the signature of Walt Disney who was the founder of Disney. But actually, it was created by women in his company, designed to tie into the Disney aesthetic of family, friends, fantasy, and fun.

The castle of the logo is Cinderella's castle which is taken from Disney's famous film.

Conclusion-:

So these were some logos with hidden meanings.

Companies pay millions of dollars to create these logos. Because of these unique logos, companies can earn more revenue.

So if you like this article please share it on Facebook, Twitter, link din, and other platforms

You may also Read

Sundar Pichai biography.

Why startups in India fail?

The advanced guide that how to make investors deck.

How to win friends and influence people book summary.

Tags: Logos with hidden meanings, Logos with hidden messages, Different logos with hidden meanings

7 Things Nobody Told You About Basic Marketing Tools

2020-07-03T08:25:00.002+05:30

Basic marketing tools to grow your business: Basic marketing tools to grow your business and examples of these free and paid tools to boost your business growth.

Basic tools for marketing

Marketing tools are tools that help your business or product grow very fast in front of consumers. There are various tools in the market but in this post, we will share some free and paid tools that will help you to become market leaders.

Basic marketing tools features-:

1. WordPress

2. Convert-Kit

3. Social media

4. Buzz Sumo

5. Canva

6. Google analytics.

7. Twak.To

1.WordPress(website)

In today's era if your business is not online then you are missing a big group of consumers. If you want to become a market leader then your business should be on the website.

But many people face the problem of coding on the website. So here word press delivers a solution for it. You can create a website on word-press without or with minimal coding and the interesting thing is that its absolutely free to make a basic website on WordPress.Word Press is very effective marketing tools

You can check on YouTube that how to make a website on WordPress.

Link of WordPress-:https://wordpress.com/alp/?aff=58022&cid=8348279

Things to remember while making website-:

1. It should be neat and clean.

Example-Apple and Microsoft websites.

2. It should have a call to action like learn more or buy.

3. It should have single-click navigation.

2. Convertkit(Email marketing)

Email marketing is one of the best digital marketing tools as it has the highest conversion rate and it is very personalized. So convert kit is the tool that has made email marketing easy and effective.

The covert kit has five segments-:

Subscribers-: In subscribers, you can see the number of subscribers and the growth of subscribers of your email and more functions.

Forms and landing pages-: Convert kit helps you to create Forms in which users will enter their email addresses. Convert kit also helps you to create a sign in and signup landing pages.

Broadcasting-: Broadcasting means sending one email to thousands of users in one click. Convertkit helps you to do so.

Sequence-: Convert kit helps you to set an interval of one email.Example-: you have made an email and want to send it to users each month then convert kit helps you to do so in one click.

Automation-: Automation helps you to send emails automatically based on the action taken by users.For example-: if the user had signup to your page then automatically Thank-you email will be sent.

Link for ConvertKit-:https://convertkit.com/?lmref=9Otljg

3.Instapage and Facebook page(social media)

Social media is one of the free and easiest marketing tools to promote your business. You can make separate Instapage and Facebook pages for your business.

Generally, Instagram is used by youngsters so you can share different posts about your products. Facebook page is used by middle-aged persons so you can share knowledge and informative things to users.

Example-: If you have clothes shop then you can share different products that are available in your shop on Instagram and knowledgeable information like "In winter season which clothes to wear on "or "men fashion tips" on Facebook.

4.Buzz Sumo(Content marketing)

Content marketing is also an effective and efficient marketing tool. If you want to become a blogger or have a news sharing site or any other content-sharing site then it is the best tool for you.

Uses of buzz sumo-:

1. To find trending topics.

2. To find high demand keywords.

3. Find & Understand Influencers of social media.

4.Competitor Analysis & Comparisons

5.Content Alerts

6.Content Curation

7.View All Social Networks

8.Advanced Filtering & Data Export

Link for Buzz Sumo-:https://buzzsumo.com/

5. Canva(Copyright-free images)

Images are very important for your website. One image is equal to 1000 words. But if you search images on google than most of the images are copyrighted.

So Canva offers you a platform to get copyright-free images. You can also modify and design your images for free on Canva. Mainly bloggers use Canva for free images.

Google also ranks those websites first who use copyright-free images. This also helps in providing Ad-sense approval.

Link for Canva-:https://www.canva.com/

6.Google Analytics

Google Analytics is a free marketing tool offered by Google. Before starting your business you should know your target market, so google analytics helps you to know about your consumer details. Details like-: Age, Gender, Location, Likes, Demographic and Geography, etc.

Example-If you want to open a new watch shop. So write Watches on google analytics and it will help you to find that in which state or region demand for watches is more and also other consumer details.

It also helps you to find details of the consumer on your website. It also tells the bounce rate of the consumer.

The bounce rate is the percentage of visitors to a particular website who navigates away from the site after viewing only one page. A high bounce rate means your website is boring.

You can search google analytics on google to use this basic marketing tool.

7. Twak.to(chatbot)

Now the demand for Chatbot is also increasing. The chatbot is basically a robot that answers your quires because of Artificial Intelligence. Its demand is increasing because it decreases business manpower costs. So you can go to Twak.to and can purchase chatbot for your business. It is a basic marketing tool that swiggy,zomato uses to interact with customers.

Link for Twak.to-:https://www.tawk.to/

Conclusion-:

So I hope these marketing tools help to grow your business and products. Some of these basic marketing tools are free and some are paid.

These are very effective tools that help you become a market leader.

If you like this article so please share it on Facebook, Twitter,link-din, and other social media platforms.

You may also Read

Sundar Pichai biography.

29 memorable logos with hidden meanings.

The advanced guide that how to make investors deck.

How to win friends and influence people book summary.

Tags-: Marketing tools, Basic marketing tools.

The Advanced Guide To How To Make Investor Deck.

2020-07-03T08:25:00.001+05:30

How to make investor deck: This post is about how to make investor deck. In this, all the important types of slides of investor deck are shared which an investor wants to see. This post will help you to make a good presentation for the investor.

How to make an Investor deck

an investor deck is a form of presentation of your future business plan generally given to investors to attract investment for your business.

Today investors do not have much time to review your business again and again, so within a limited time which is generally 20 to 30 min, you have to impress an investor and attract investment for your enterprise.

So the investor deck helps you to do that amazing job. So in this article, we will discuss how to make a pitch deck.

We will discuss different slides that are necessary for your pitch deck.

How to make investor deck features-:

1. Problem.

2. Solution.

3. A unique selling point.

4. Competitor analysis.

5. Revenue model

6. Target market.

7. Product or Service.

8. Milestone.

9. Funding.

10. Team

1.Problem

The first slide of your investor deck should be a problem slide. In this slide, you will tell your investor that which problem your business or startup is solving.

Your problem should be big and genuine. Example -OYO had solved the problem of inconvenient and high budget hotels. Ola had solved the problem of a bad taxi service.

2.Solution

Then your second slide should be of solution slide. This means that how your business is solving the problem you discussed in the first slide.

Remember you should not convey more than 3 messages in one slide. Your investor should only take 30 to 35 sec in reading one slide. You should be crisp and precise while telling your point.

3.Unique Selling Proposition

A unique selling proposition or unique selling point should be your third slide of investor deck. This slide shows investors about your product uniqueness.

This shows how your product differs from your competitor. You can also show customer testimonial or feedback on this slide.

This will increase the investor's trust in your business. Testimonials can be a customer's review video or his feedback regarding your product.

4. Competition and Barrier to entry.

In this slide, you should tell all the types of competition in your business industry. Competition can be direct and indirect competition.

Direct competition means the businesses which are offering similar products as you are offering.

Indirect competition does not offer similar products but still satisfies the same customer that you are also satisfying.

Example-paper making businesses has direct competition with other paper-making businesses and in direct competition with book publishers.

5.Revenue Model

This is one of the most important slides. This slide tells that how your business earns money in the form of cash.

Most investor changes there mind after this slide only. You do not have to tell the whole paragraph about your revenue model. you only just tell them in one or two lines.

Example-'Our business earns revenue through subscriptions or advertisement or brokerage or commission etc'.

6.Target Market.

The target market means which customer type you are offering your product. Investors do want your target customer details.

Details can be customer's demographic,age,gender,geography etc.This slide makes him believe that your business knows correctly which customers to focus on.

Example-Instagram focuses on youngsters whose age is between 15 to 25. With the help of Google Analytics, you can know which type of customer comes to your website.

7.Product or Service.

Now, this is the slide for which you have made the above slides. In this slide, you will show your product details, cost of making a product, price of the product, availability of raw material and all the costs involved.

If extra you can do is make your product or physical product model and show it to the investor. This shows an investor that you are serious about your business.

8.Milestone.

The milestone means the achievement of your business. When an investor sees your achievements, your business credibility is increased.

He believes that in the future also your business will earn more achievements.

9.Funding.

In this slide, you will show different sources of funds you have taken in past. This can also include funds taken from the family, banks, and other sources. This shows your business transparency to the investor.

10.Team.

The last slide includes name, address, percentage of shares of your team members in the company. This can also include their responsibilities and power or authority in your business.

Examples of investor deck-:

1.Uber-https://www.slideshare.net/kambosu/uber-pitch-deck

2.Airbnb-https://www.slideshare.net/PitchDeckCoach/airbnb-first-pitch-deck-editable

Conclusion-:

So I hope this article solves your question of how to make investor deck. You can add other slides also but these are mandatory slides that an investor wants to see.

If you like this article then please share it on Facebook, Link-din, twitter and other social media platforms.

You may also Read

Sundar Pichai biography.

29 memorable logos with hidden meanings.

Why startups fail in India?

How to win friends and influence people book summary.

Tag: How to make an investor deck, investor deck

Effective Ways To Increase Sales By 10x.

2020-07-03T08:25:00.000+05:30

How to increase sales: In this post different cost-saving sales strategies are shared that will help to increase sales of your business.

How to increase sales by 10x

The sale is a department in an organization which is a very important for-profit motive. Companies spend millions of dollars on boosting their sales.

But a small business cannot spend huge capital on sales. So to help them I have written this article which will help them as a guide to boost their sale.

Taking customer feedback seriously is the most effective way to increase sales by 10x.

Below are a few points more points that will teach you effective methods of how to increase sales by 10x.

How to increase sales by 10x features-:

1. Product knowledge and Product conviction.

2. Value of losing product.

3. Divide the customer.

4. BANT Technique.

5. Renew old relationships.

6. Follow the Pareto principle

7. Use Digital marketing.

8. Email Marketing.

9. Solve the Burning problem of your customers.

10. Show testimonials on your website.

1. Product knowledge and Product conviction.

The first and most important tip is that your business salesperson should have all the knowledge about your product.

He should ever ready for each and every question of the customer. Second is product conviction.

If salespeople do not have faith in your product then sure your product sale is likely to fall. Both product knowledge and product conviction should be in your salesperson to increase sales of the business.

2.Value of losing product.

When your salesman is talking to the customer then he should focus on the loss of the customer and again and again remind the customer that if he will not purchase the product then he would lose this value.

This is human psychology that we people focus more on loss than profit. we want to profit but our first priority is a minimal loss.

3. Divide the customer.

To save cost on your sales you should focus on the target market only and on relevant customers. So the first step is to divide your customer base into three criteria which are red, yellow, and green.

Red are those customers which are not willing to buy your product so you should not focus on them.

Yellow is neutral customers which you should focus most. Most of the marketing techniques should focus on these types of customers.

Then the last is Green customers which are loyal customers of your business. They are always ready to buy your product without any marketing cost. The division of customers can be easily done with the help of CRM(CUSTOMER RELATIONSHIP MANAGEMENT).

4. BANT Technique

BANT means budget, authority, need, and timeline. These four things should be present in your customer then only you should focus on him.

First is your customer should have an appropriate budget to buy your product.

Second is he should have the authority or power to buy your product.

The third is the need which means that does he actually want your product and last is a timeline which means what is the shortest time that he will buy your product.

These four things you should see in your customer before selling them products

5. Renew old relationships.

The cost of acquiring old customers is less than than the cost of acquiring new customers because old customers know already about your business, so you should always maintain an old database of your customer.

You should maintain a relationship with them through email marketing and SMS. You can give some discount coupons to your old customers. This increases sales of the enterprise.

6. Follow the Pareto Principle.

The Pareto principle says that in life there is always 80/20 rule. This means that 80 percent of your output is given by 20 percent of input.

EXAMPLE-In case of customers most of the huge corporation says our 80 percent of profit is given by 20 percent of our customer base. So you should spend more marketing costs on 20 percent of customers.

7. Use Digital marketing.

Digital marketing means online marketing your product through social media like Instagram, Facebook, email marketing, content marketing, blogs, link-din, YouTube, etc.

This is the most efficient way and cost-saving way of boosting your sales. But you cannot use all social media platforms as it depends on your customer base.

EXAMPLE-if you are targeting youngsters then Instagram is the best social media platform but if you are targeting middle-aged groups then Facebook is the better option. If you are targeting B2B business the link din is the best option.

You have to choose your customer base smartly and then utilize these platforms. You can even hire a social media consultant that is available on link- din for which he would charge 15k-20k per month.

8.Email Marketing.

Till now email marketing is said to be one of the best marketing tools in the industry. There are reasons for this like-It has the highest conversion rate of customers and it is a very much personalized way. Its conversion rate is about 20 percent. It is a very cost-effective also.

So from time to time, you should send emails to customers. You can send emails to them on their birthdays and can give them gifts in the form of discount coupons but remember email marketing will only work when you have a website in which by the way of registration you ask customers email.

9. Solve the Burning problem of your customers.

Before selling the product the salesman should first ask the problem and needs of the customer then according to the problem and needs of the customer he should show the product to him.

EXAMPLE -you have a car selling business and the customer approaches you so before showing him product, first of all, you should ask the question from customers like for what use he wants a car, what is his budget, etc.

Then according to answers to questions, you should show him his type of car.

10. Show testimonials on your website.

Testimonials are the feedback in the form of video and review. You should show testimonials on your website so that when customers see it he will have more loyalty in your business.

EXAMPLE-You should have seen Colgate add on TV. In this add, different customers are giving a review of the product. This generates more customer leads. Feedback should be taken seriously and continuous improvement should be done in your business.

Conclusion-:

So I hope these sales techniques should help to increase sales of your business by 10x.

They are very cost-effective techniques that you should apply in your business.

If you like this article then please share it on Facebook, Twitter,link-din, and other social media platforms.

Tags-: How to increase sales, Increase sales, sales