Ninad Karpe | SME - Connect

Speaker's Profile: 

Mr. Ninad Karpe 

(Partner at 100X.VC – a VC firm and TEDx Speaker)

The session began where Mr. Karpe gave us an example of the Thompson and Tee company which developed sweat undershirts. Mr. Karpe said that the problem they were solving, led to the foundation behind the company. Now the company has a revenue of 500 million dollars. 

As a startup, it has to be something revolutionary. If you are getting funded, does not mean you are successful. Funding is not equal to success.

Eg, Byju's made an annual turnover of 12 million and evaluated.

Source for reference: https://medium.com/@kapilkhanwani/case-study-byjus-business-model-c13f10692f2c

The speaker focused on these points which every person who is looking forward to being an entrepreneur, should consider with respect to their businesses:

1.Mission

2.What is your value proposition?

3.Elevator Pitch - 1 min, 2 min and 10 min speech should be ready.

4. Think of your potential

5. Consider the Market Size

6. How are you positioning your product?

Mr. Ninad Karpe further explained that Venture Capitalists seek for large opportunities. They look forward to the fact that startups need to scale up rapidly.

He further said that as an entrepreneur you need to see that what is your competition in the market? You need to acknowledge it. Is it more cost-effective? When you introduce a product, you need to check that are you better than established players in the market, how do you stand out in the market, that is important.

Eg- A company is delivering Choco Fudge.

You need to see what is it that you are doing? Whether you are looking at better execution or better delivery. 

A poll was done in the session to see the opinion of people that Is building a startup about?

1. Building a Product?

2. Solving a Problem?

The speaker gave the example of Steve Jobs that with Clairvoyance, he made Apple. With this example, he explained that you develop a product that the market may need or not.

"Life is a Pitch"

Keep practicing your pitch before you actually go to some VC.

"20 Minutes Live with Papa CJ"

Papa CJ is a world famous comedian telling in this video to PITCH.

Source: https://www.100x.vc/blog/20-minutes-live-with-papa-cj--100x.vc-team-2020-startups

Startup Founders are not good storytellers. Not able to clearly state their pitch. This is how they need to think:

"This is my problem. This is my size of the problem. This is how I am solving it."

The speaker explained this, that people think this way:

"We want to save planet for next gen"

So what ?

"We want to solve all the problems on this planet."

So what ?

"I want to build palm-sized solar panels which have the functionality of a large panel." 

This is the correct statement that you need to talk to the VC and tell him that this is how you want to do and you are planning to take these steps. That is the correct approach, instead of telling the problem, again and again, you need to clearly state the problem and the solution which you are planning to implement. That's how the business model is made. 

When you are talking to a VC, they look for a large market. Otherwise, why would they invest in your business idea. These are some of the questions you need to take into consideration:

1. What is my Business Model?

2. What is your unfair advantage?

3. What processes are you breaking?

4. What sets you apart(expensive, scale)

It's about scaling your process. It's about your growth capital. Massive rethinking is important. "Go- to" market models have changed. According to speaker, by 2025, only 25% staff would be in office. A lot of consumption is happening at home. 

He explained about the GTM - "Online Channels".

After B2B and B2C models, now we can see "B2H" Models in Bombay. This new thing has emerged after COVID crisis. 

To own the customer is important. Selling more and more to the customers through it's entire journey. 

The subscription model is done amazingly in US and not done in India. 

Your model can not be slapped on some existing model. It has to be part of the DNA. 

He gave the example of a company Mike - Dollar Shave Club Company that bought - 1B Dollar cash 

that delivered razor blades. Their subscription model has a very inspirational story. 

Source: 

https://businessmodelnavigator.com/case-firm?id=31

https://www.mainstreethost.com/blog/dollar-shave-club-business-model/

The speaker further explained that:

1. White labeling was very important for some time. You need to own the customer. 

2. Middleman - Own the customer. Own the brand.

3. Long Tail - People want something that is honest and simple that they can easily consume. 

Casper Mattresses:

It started in 2014. Idea behind was that since buying a mattress is a difficult option in US. It is the last option they do. So, the founders of the company developed the idea that it can be delivered to your home. 

Source: https://www.youtube.com/watch?v=yEFeDP9goZU

The speaker said that he himself is a big fan of regional markets, the reasons being, the large size of the markets and also the hidden opportunities. 

He pointed out the potential areas as:

1. HealthTech, DeepTech, AI, NeoBanks, SaaS Business Applications, AgriTech, EdTech. 

2. Food that travels- That can be consumed later on.

3. Supply chain logistics - Consumption is gone up and supply chain is not so consistent. 

4. Authentic Brands - Eg. Beer

5. Meat alternatives - Future will be there

6. Sustainable initiatives 

7. Environmental Clean - up

8. Cannabis 2.0

A neobank is a kind of digital bank without any branches. ... Neobanks can be called fintech firms that provide digital and mobile-first financial solutions payments and money transfers, money lending, and more. Neobanks don't have a bank license of their own but count on bank partners to provide bank licensed services.

Get going - 

1. Journey of wealth (not income) - In the speaker's opinion, VCs love the startups with more than one co-founders. Capital is important. He gave the example of an Airbnb company which was rejected half a dozen times. It takes 65-70 meetings before you get a response from founders. 

2. Need to think rapid scale - Not "lifestyle business". He explained to us the concept of Scale vs Sustainable "Grow and show".

3. It is a lonely but exhilarating journey

4. Mentor or Tormentor? It is not easy to get a co-founder as well. 

5. Execution is the key.

Further, a small quick poll asked the audience about their view that as an entrepreneur whom do you need to talk to?

1. Experts or Advisers?

2. Users or Customers?

The speaker further explained through this video and gave more insight about how to pitch to a Venture Capitalist?

Source:- https://www.100x.vc/blog/how-to-pitch-to-a-venture-capitalist-100x.vc-team-2020-startups

On being asked as an audience question about the EdTech startup and mad marketing as the Whitehat Jr, case happened. The speaker explained that we need to have a line. With this line drawn, it is up to you. Vision is on the founder. You can scale within the line drawn. 

Another question being asked was that VCs should be involved in management of startup or not, to which the speaker responded that in his opinion the VC can and should not involve in the management. At 100X, they don't get Board seats. Management will always remain with the founder. 

Further, the speaker explained that if you have a great idea, then only you can leave your college or studies to test the idea. 

He gave the example of Oyo, and shared their success story. The speaker said that if you have an idea, you need to convince your Parents. In the same way, you need to convince your VC.

Source: http://crowdforthink.com/success-stories/success-story-of-oyo-rooms-ceo-ritesh-agarwal

With the example of the "Ted Talk - Speed of Decision Making", speaker in the video gave an example of  Formula One and said that if it takes 4 seconds to change a tyre, why would it take 2 days to response my mail. 

He gave a reference to of the website "Enterpreneurship Gurukul" . It has courses giving practical lessons on entrepreneurship. 

He said that - MVP - For that company, a prototype was built. They did a check for 10 potential customers. Get funded by 10-15 friends/ Built a product. Tested it. Get some mentors. Bootstrap your company. Incubator. 

He said that they have funded a 40 day old company as well. 

The speaker further said that the best ideas come from the people around us only. Eg - Medical Tourism. You have to talk to a lot of people. 

Gawazaki - He gave the example of his speech, a pitch practice to be done 70-75 times before going to a VC. 

Source of reference: https://www.youtube.com/watch?v=Mtjatz9r-Vc

Ms. Preeti Tiwari asked that should we not go to a VC at an early stage. So, the speaker gave the example of the Jabong company (Case equity). 

The speaker said that he has seen some noted pioneers in India. As a business person, you need to protect your rights. The VC will protect his rights. You need to have some good advisors.  

The web session ended with the last question for the day being asked to Mr. Ninad Karpe that what should be the qualities in a founder? 

To this, Mr. Karpe responded that as a VC what he looks in a founder is that:

1. Does a founder have passion?

2. What skillsets you are getting on table?

3. Have you done good study in the domain? You have to be 100% in it. No plan B. No Part-time job it is. 

4. Are you thinking of scale-up for your business or you are just thinking about your business to earn a living?