photo credit: alancleaver_2000

Intel Corp (the world’s largest chip maker) with a group for other 24 venture capital firms has declared that it will invest $3.5 billion in U.S tech startups over the coming two years to accelerate and promote domestic job growth. The investments will mainly focus on information technology and bio-technology (or clean technology).

Intel believes (and the US also) that it faces stiff competition in the areas of education and innovation from India and China. The CEO of Intel argued that the United States should lead the global race for innovation.

Intel has also taken initiatives in the past when it comes to investing or hiring graduates. Google, HP, GE and Dell Inc. also encourage graduate hiring.

A good step taken by Intel for promoting innovation and startups

For more details we suggest you read the Business Week Post here
http://www.businessweek.com/news/2010-02-23/intel-venture-firms-to-invest-3-5-billion-in-u-s-startups.html

Intel takes stakes in companies that have technology that can be used to increase future processor sales.

photo credit: alexanderdrachmann

It is easy to glamorize the life of an entrepreneur – but what isn’t easy is to imagine all the difficulties that come along. However, without a doubt the benefits of being a startup entrepreneur outweigh all the problems.

There are millions of people every year who step forward and take a plunge and start their first ventures. So should you take the plunge as well? As a potential entrepreneur, it’s the ‘gut’ feeling of succeeding that is important. There are strong internal drivers that compel us to startup our own venture.

Yes we have the idea, motivation and zeal, but do we really have everything needed to be successful startup entrepreneur?

Take this 2 minute test (Isenberg Entrepreneur Test) and find out. Simply answer yes or no to the questions and be honest (to yourself):

http://blogs.hbr.org/cs/2010/02/should_you_be_an_entrepreneur.html

I am sure Zuckerberg, Larry Page & Steve Jobs will score well in the quiz 

"I want to get rich" is not on the list either. All else being equal (and all else is rarely equal in the real world), on the average, people who set up their own businesses don't make more money, although a few do succeed in grabbing the brass ring.

photo credit: lumaxart

Venture Hacks recently launched a new project aiming to bring startups and angel investors closer.

Venture hacks launched AngelList which is a basic directory of around 80 established angel investors including their contact info and key information like what they’re looking for in a startup etc. The members of AngelList will receive weekly updates from Startuplist (the second project launched by Venture Hacks).

StartupList will be a great boon for all startups looking for angel investors. So if you’re a startup looking for early investment and you have no idea how to get to potential investors then this project is definitely for you. To get on the list you need to apply here.

Venture Hacks will send weekly emails featuring three startup pitches to some of Silicon Valley’s most respected angel investors.

Kudos to Venture Hacks. Great effort and all the best

photo credit: Jakob Montrasio

Considering the recent world scenario, we think of China either when Copenhagen Climatic issues come up or its recent tiff with Google regarding hacking and censorship. And rightly I believe. Keeping all the issues behind, China still recorded a magnificent growth recently.

An American Entrepreneur in China (Calvin Chin) wrote a guest post in TechCrunch about the startup Culture in China. He recently also attended the World Economic Summit in Davos (Switzerland).

Calvin Chin talks about how the Chinese Government has put stability on the top – with the goal of lifting millions of people out of poverty (and yes at the cost of freedom of information). He believes that in China emphasis is laid on stability which allows big decisions to be made quickly.  

Many tech startups in China know that the stability of the government is paramount for economic growth (despite the freedom to operate is limited). As soon as the government legislation changes, they don’t sit and whine but work towards doing the best they can in the existing framework. For example; when the government decides to censure microblogging sites, startups use the existing infrastructure to set up a microblogging site that screen Tweets. The lesson here is that as a startup founder – you don’t have the time to sit and cry over spilled beans but instead react to the situation by taking full advantage of what you have.

There are many lessons a startup can learn from startups operating in china. The article on TechCrunch provides a great insight to this matter.

The thing is while the majority of Chinese netizens really don’t care that much about what’s going on outside of China, the ones who do care, people who would start companies, people who want international news, all know workarounds to use services they like or read about sensitive topics from other perspectives

photo credit: star5112

Startup founders can pay back their investors by either selling the business to bigger companies or offering shares to the public (IPO). Public offering seemed to be the ultimate goal of every startup since it promises continuing returns and expansion. Yes, its true many startups still dream of a place on the NASDAQ and startups like Twitter, Facebook, LinkedIn, Zynga also want to go public rather than sell.

But in a recent survey of startups by venture capital firm DCM, only 19 percent wanted to go public. Many startup founders mentioned that a major barrier to go public was the strict regulations for public companies. They believe that there is so much emphasis on paperwork and legislation that a startup can’t focus on actually building a business. Newer restrictions are making public offerings less and less attractive for startups.

"People don't want to run public companies anymore because they don't want to get dragged through the mud," said Rob Coneybeer, a managing director at the investment firm Shasta Ventures

Read the article below for more information:
http://www.mercurynews.com/business/ci_14218184?source=rss&nclick_check=1

photo credit: Joshua Rappeneker

None of us are unaware about the economic downturn and how it has affected businesses – small or big. You have the idea, drive, creativity, plan and resources to launch a startup but there are certain aspects you should be careful about when launching a startup in the midst of the recession.

Focus, discipline and building value – three tips for Startup launches and the rest follows. Seth Godin, (the Marketing Guru and founder of Squidoo) in an interview with Mashable gives more light on this matter. Here is what he had to say:

http://mashable.com/2009/02/04/seth-godin-advice-for-startups/

Understand that in a down economy, not only is there less money for people to spend on you, but you have to spend less money to make stuff that’s worthwhile.

photo credit: Spencer E Holtaway

My definition of a ‘startup’ was quite clear until recently when I saw Facebook being awarded the ‘Best Overall Startup of the Year’ by TechCrunch.  Yes all of us love Facebook and Zuckerberg (CEO of Facebook) but will you categorize Facebook as a Startup? The Crunchies awards have raised a debate and questions like what is a startup and when does a company stop being a startup have started gaining heat.

These are the exact questions that came into my mind as well – when does a startup 'stop being a startup' and becomes a business/company. What criteria’s define a startup?

Is it defined by:

1.    Time? – the number of years into existence
2.    Valuation? – post billion dollars you’re not a startup?
3.    Staff size? – the number of employees
4.    Profitability?
5.    Traffic? (probably number of views per month)

If we talk about Facebook; it has been into existence for five years, 500+ million dollar funded ‘company’ and a staff of around 1000 employees.(Source: Crunchbase)  I wouldn’t classify Facebook as a startup considering these points.

A startup starts with the intent to build X. Once they build X, they become a business that sustains and grows X (Facebook falls exactly in this category of sustaining and growing its product).

X may be a product, a service or may be a new approach to an existing problem. Once they move from the first stage of building to having to sustain it, it becomes a business (and doesn’t remain a startup).

Fore more information on this topic you can check:

http://bx.businessweek.com/facebook/view?url=http%3A%2F%2Frashmisinha.com%2F2010%2F01%2F09%2Fwhat-is-a-startup-is-facebook-still-one%2F

http://www.techcrunch.com/2009/01/10/congratulations-to-the-crunchies-winners-facebook-takes-top-prize-for-second-year/

Facebook is a revolution in the social networking and Web 2.0 world but it cannot be categorized as a startup (not anymore). TechCrunch could probably rename the award as ‘The Best Overall (Web/Software) Product’.

photo credit: cloudzilla

Entrepreneurs agree that shows such as The Apprentice and Dragons’ Den are changing business culture – for the better. “Entrepreneurial” reality TV shows have become popular because they reflect all the problems, issues and situations a startup or small business owner may face.

Reality-Business TV offers an insight into the highs and lows of starting a business and there are quite a few lessons startups can learn;

Don’t overvalue (or undervalue) your business – sales and profit are different

Study Competition – Know about your competition as much as you know about customers

Diversify – New markets, new distribution channels or new verticals; explore all possible avenues

Perfect Your Elevator Pitch and Presentation Skills – it will help communicating with investors, clients, employees etc

Forget your ego – an over-inflated business ego will ignore the ‘cost’ and ‘risk’ realities

Further information on what a startup can learn from business reality shows is provided in the article below:
http://www.allbusiness.com/banking-finance/banking-lending-credit-services/13641763-1.html

Whether you are a start-up seeking investment (think Shark Tank) or an established business in need of a re-launch to abate failure - these shows deliver what could be considered a 50 minute master class in how to succeed in business.

Today is the last day of 2009. That means we’re moving into the first new decade of the 2000s. 2009 was not a very good year for startups considering the recession and economic downturn. It was also a rough year on the Venture Capital front. But, there are promising signs that VCs are preparing to ramp up their investment by injecting much needed cash flow into startups in 2010. So that’s good news on the VC investment front but startups also need to make and keep certain resolutions to be successful in the coming year. Here are a few important ones:
1. Simplicity and Stability – reduce unnecessary components and be consistently excellent.
2. Set realistic deadlines and meet them
3. Value your team and their commitment  – have a collective vision
4. Be receptive and open to the market – ready to absorb and change accordingly
5. Release Early - Release Often – a balance between perfection and speed
6. Internet Marketing will be indispensable in 2010. A Website design or Website redesign will help your startup keep pace in the competitive market
Happy New Year from the Bhopu Team!

How does Israel—with fewer people than the state of New Jersey, no natural resources, and hostile all around—produce more tech companies listed on the NASDAQ than all of Europe, Japan, South Korea, India and China combined? Israel has transformed the challenges it has faced into assets that form the key of its ‘culture of innovation’. Adversity of all kinds, have forced Israelis to be resourceful, to do more with less, to innovate and be global from day one. There are quite a few parallels we can draw between Israel and startups; passion, resourcefulness and persistence being the most important ones.

1. Passion – something you should feel as an entrepreneur, for the startup life, for your company, for your vision – is all-encompassing
2. Resourcefulness – know how to get information and results you want
3. Persistence – keep fighting till the end

Israel is an apt synonym for the global impact a startup business can make despite having “enemies” with massive resources. Senor and Singer from Start-Up Nation have written a book on lessons a business/startups can learn from Israel.

Throughout Nation, Israelis are a frank-speaking people who are willing to explore the world, to learn from those experiences, and to be persistent with implementing ideas in business. Managers at Intel Israel, for example, are credited for changing Intel’s strategic decision to no longer seek increased processor clock speed and instead create new processing paths.

Read the book summary and this itself will give you some good idea of what lies beneath (in the book)