51
MakerSpace / প্লাস্টিকের বোতল দিয়ে নাইস ক্র্যাফট আইডিয়া (Diy Craft Out Of Plastic Bottle)
« Last post by najnin.ih on August 31, 2019, 11:05:46 AM »প্লাস্টিকের বোতল দিয়ে নাইস ক্র্যাফট আইডিয়া (Diy Craft Out Of Plastic Bottle)
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প্লাস্টিকের বোতল দিয়ে নাইস ক্র্যাফট আইডিয়া (Diy Craft Out Of Plastic Bottle)
52
MakerSpace / HOW TO MAKE WONDERFUL LACE VASE FROM PLASTIC BOTTLE
« Last post by najnin.ih on August 29, 2019, 01:12:56 PM » HOW TO MAKE WONDERFUL LACE VASE FROM PLASTIC BOTTLE
53
MakerSpace / Artificial Flower Vase by plastic bottle
« Last post by najnin.ih on August 29, 2019, 12:03:24 PM »Artificial Flower Vase by plastic bottle
[/b][/size]54
MakerSpace / Flower pots Recycle plastic bottles for growing flowers
« Last post by najnin.ih on August 29, 2019, 11:54:00 AM » Flower pots Recycle plastic bottles for growing flowers
55
MakerSpace / Plastic bottle organizer
« Last post by najnin.ih on August 29, 2019, 11:41:22 AM »Plastic bottle organizer
56
Human Resource / 7 Human Resource Management Basics Every HR Professional Should Know
« Last post by rakibul on August 01, 2019, 09:32:04 AM »7 Human Resource Management Basics Every HR Professional Should Know
#1. Recruitment & selection
Recruitment and selection are arguably the most visible elements of HR. We all remember our first interview, right?
Recruiting candidates and selecting the best ones to come and work for the company is a key HR responsibility. People are the lifeblood of the organization and finding the best fits is a key task.The request for new hires usually starts when a new job is created or an existing job opens up. The direct manager then sends the job description to HR and HR starts recruiting candidates. In this process, HR can use different selection instruments to find the best person to do the work. These include interviews, different assessments, reference checks, and other recruitment methods.Sometimes, when there are a lot of candidates, HR may deploy preselection tools. These tools help to separate the wheat from the chaff when it comes to suitable candidates. The candidates that are successful then continue to the next round, where they are interviewed and receive a more in-depth assessment.
#2. Performance management
Once employees are on board, performance management becomes important. Performance management is the second HR basic. It involves helping people to perform better in their jobs.Usually, employees have a defined set of responsibilities that they need to take care of. Performance management is a structure that enables employees to get feedback on their performance – with the goal to reach a better performance.Examples are formal one-on-one performance reviews, 360-degree feedback instruments that also takes into account the evaluation of peers, clients, and other relations, and more informal feedback.Usually, companies work with an annual performance management cycle, which involves planning, monitoring, reviewing, and rewarding employee performance. The outcome of this process enables the categorization of employees in high vs. low performers and high vs. low potentials.Successful performance management is very much a shared responsibility between HR and management, where usually the direct manager is in the lead and HR supports. Good performance management is crucial, as employees who consistently underperform may not be a good fit with the company and/or culture and may have to be let go.
#3. Learning & development
If employees struggle to perform well in certain areas, learning and development can help to improve their performance. Learning & development (L&D) is led by HR and good policies can be very helpful in advancing the organization towards its long-term goals.Many organizations have pre-defined budgets for L&D efforts. This budget is then distributed amongst employees, with trainees, future leaders, and other high potentials often receiving more training opportunities than others.
A well-known framework that connects performance management with L&D activities is the 9-Box grid. Based on people’s performance and potential ratings, different development plans are advised.Learning and development
#4. Succession planning
Succession planning is the process of planning contingencies in case of key employees leaving the company. If, for example, a crucial senior manager quits his/her job, having a replacement ready will guarantee continuity and can save the company significant money.Succession planning is often based on performance ratings and L&D efforts. This results in the creation of a talent pipeline. This is a pool of candidates who are qualified and ready to fill (senior) positions in case of someone leaving. Building and nurturing this pipeline is key to good people management.Succession planning
#5. Compensation and benefits
Another one of the HR basics is compensation and benefits. Fair compensation is key in motivating and retaining employees.
Compensation can be split up in primary compensation and secondary compensation. Primary compensation involves directly paid money for work, which often is a monthly salary and sometimes performance-based pay.Secondary benefits are all non-monetary rewards. This can include extra holidays, flexible working times, day-care, pensions, a company car and laptop, and much more.
#6. Human Resource Information System
The last two HR basics are not HR practices but tools to do HR better. The first is the Human Resource Information System, or HRIS. An HRIS supports all the cornerstones we discussed above. For example, for recruitment and selection an Applicant Tracking System, or ATS, is often used to keep track of applicants and hires.For performance management, a performance management system is used to keep track of individual goals and put in performance ratings.For L&D, a Learning Management System (LMS) is used for the distribution of content internally, and other HR systems are used to keep track of budgets and training approvals.For compensation, a payroll system is often used, and there are also digital tools that enable effective succession planning.All these functionalities can often be done in one single system – the HRIS. Sometimes, however, the management of these functionalities is split up into different HR systems.The bottom line here is that there is a significant digital element to working in HR which is why the HRIS is the final element when we talk about the HR basics.
#7. HR data and analytics
The last of the HR basics revolves around data and analytics. The last half decade, HR has made a major leap towards becoming more data-driven.The Human Resource Information Systems we just discussed is essentially a data-entry system. The data in these systems can be used to make better and more informed decisions.An easy way to keep track of critical data is through HR metrics or HR KPIs. These are specific measurements that answer how a company is doing on a given measurement. This is referred to as HR reporting.This reporting focuses on the current and past state of the organization. Using HR analytics, HR can also make predictions about the future. Examples include workforce needs, employee turnover intention, the impact of the (recruitment) candidate experience on customer satisfaction, and many others.
By actively measuring and looking at this data, HR can make more data-driven decisions. These decisions are often more objective, which makes it easier to find management support for these decisions.
Reference:https://www.digitalhrtech.com/human-resource-basics/
#1. Recruitment & selection
Recruitment and selection are arguably the most visible elements of HR. We all remember our first interview, right?
Recruiting candidates and selecting the best ones to come and work for the company is a key HR responsibility. People are the lifeblood of the organization and finding the best fits is a key task.The request for new hires usually starts when a new job is created or an existing job opens up. The direct manager then sends the job description to HR and HR starts recruiting candidates. In this process, HR can use different selection instruments to find the best person to do the work. These include interviews, different assessments, reference checks, and other recruitment methods.Sometimes, when there are a lot of candidates, HR may deploy preselection tools. These tools help to separate the wheat from the chaff when it comes to suitable candidates. The candidates that are successful then continue to the next round, where they are interviewed and receive a more in-depth assessment.
#2. Performance management
Once employees are on board, performance management becomes important. Performance management is the second HR basic. It involves helping people to perform better in their jobs.Usually, employees have a defined set of responsibilities that they need to take care of. Performance management is a structure that enables employees to get feedback on their performance – with the goal to reach a better performance.Examples are formal one-on-one performance reviews, 360-degree feedback instruments that also takes into account the evaluation of peers, clients, and other relations, and more informal feedback.Usually, companies work with an annual performance management cycle, which involves planning, monitoring, reviewing, and rewarding employee performance. The outcome of this process enables the categorization of employees in high vs. low performers and high vs. low potentials.Successful performance management is very much a shared responsibility between HR and management, where usually the direct manager is in the lead and HR supports. Good performance management is crucial, as employees who consistently underperform may not be a good fit with the company and/or culture and may have to be let go.
#3. Learning & development
If employees struggle to perform well in certain areas, learning and development can help to improve their performance. Learning & development (L&D) is led by HR and good policies can be very helpful in advancing the organization towards its long-term goals.Many organizations have pre-defined budgets for L&D efforts. This budget is then distributed amongst employees, with trainees, future leaders, and other high potentials often receiving more training opportunities than others.
A well-known framework that connects performance management with L&D activities is the 9-Box grid. Based on people’s performance and potential ratings, different development plans are advised.Learning and development
#4. Succession planning
Succession planning is the process of planning contingencies in case of key employees leaving the company. If, for example, a crucial senior manager quits his/her job, having a replacement ready will guarantee continuity and can save the company significant money.Succession planning is often based on performance ratings and L&D efforts. This results in the creation of a talent pipeline. This is a pool of candidates who are qualified and ready to fill (senior) positions in case of someone leaving. Building and nurturing this pipeline is key to good people management.Succession planning
#5. Compensation and benefits
Another one of the HR basics is compensation and benefits. Fair compensation is key in motivating and retaining employees.
Compensation can be split up in primary compensation and secondary compensation. Primary compensation involves directly paid money for work, which often is a monthly salary and sometimes performance-based pay.Secondary benefits are all non-monetary rewards. This can include extra holidays, flexible working times, day-care, pensions, a company car and laptop, and much more.
#6. Human Resource Information System
The last two HR basics are not HR practices but tools to do HR better. The first is the Human Resource Information System, or HRIS. An HRIS supports all the cornerstones we discussed above. For example, for recruitment and selection an Applicant Tracking System, or ATS, is often used to keep track of applicants and hires.For performance management, a performance management system is used to keep track of individual goals and put in performance ratings.For L&D, a Learning Management System (LMS) is used for the distribution of content internally, and other HR systems are used to keep track of budgets and training approvals.For compensation, a payroll system is often used, and there are also digital tools that enable effective succession planning.All these functionalities can often be done in one single system – the HRIS. Sometimes, however, the management of these functionalities is split up into different HR systems.The bottom line here is that there is a significant digital element to working in HR which is why the HRIS is the final element when we talk about the HR basics.
#7. HR data and analytics
The last of the HR basics revolves around data and analytics. The last half decade, HR has made a major leap towards becoming more data-driven.The Human Resource Information Systems we just discussed is essentially a data-entry system. The data in these systems can be used to make better and more informed decisions.An easy way to keep track of critical data is through HR metrics or HR KPIs. These are specific measurements that answer how a company is doing on a given measurement. This is referred to as HR reporting.This reporting focuses on the current and past state of the organization. Using HR analytics, HR can also make predictions about the future. Examples include workforce needs, employee turnover intention, the impact of the (recruitment) candidate experience on customer satisfaction, and many others.
By actively measuring and looking at this data, HR can make more data-driven decisions. These decisions are often more objective, which makes it easier to find management support for these decisions.
Reference:https://www.digitalhrtech.com/human-resource-basics/
57
Investment Process / Investment & Idea
« Last post by caaj on July 29, 2019, 12:24:00 PM »Investment & Idea
Andy Wu, assistant professor of Business Administration at Harvard Business School, is one of the World’s top 40 under 40 Professors in 2019. He is also the founding director, and investor of Identified Technologies Corporations, the leading managed commercial drone solution. Additionally, he is also investor-cum-director of Bangladeshi online-based business venture, Shohoz. On the eve of the startup's fifth founding anniversary on 19 July, Andy was in Dhaka. Talking with Dhaka Tribune’s Johura Akter, he shared his professional journey, as well as Shohoz's future business plans, and other aspects.
Why have you chosen teaching as a profession?
It is a tremendous honour to be working with probably the highest potential managers in the world, as almost 40% of the students are international. The students from different countries later go back to their homes, and execute the ideas we discuss in the classroom. Like many CEOs of different leading companies, they attend classes as students, where I get an opportunity to mentor, and provide networking resources. Later they go back to their country, and they manage their organizations using the concepts I taught them.
What do you find most inspiring about this profession?
I learn something new every time I step into the classroom, or meet with a student. I think the most inspiring thing as a professor is seeing students implementing the ideas they have learnt in classrooms.
You are working as a teacher, and an investor at the same time. How do you manage both?
Both the opportunities are interesting for me. Working as a professor, I can engage with ideas, while as an investor I can practice them.
What seems more challenging to you - teaching or investing?
As an investor I have to take decisions such as where to invest, how to get returns, and many other things; but as a professor, I do not have to ponder so much.
Why have you invested in Shohoz?
There are three reasons here - tremendous economic opportunities; the presence of a good management team consisting of experienced and capable board members, and advisors; and the business is highly technology-oriented.
What sets Shohoz apart from other startups?
What makes them unique is their ability to hire the best talent, and assign them to multiple sectors, such as online ticket booking, ride sharing, food delivery, and more.
What’s your plan for Shohoz in the coming days?
In the coming days we have to achieve exploratory growth to make a profit. For this, we have to bring more investment capital for the company, and provide some support in recruiting talents to make the company more competitive in the market.
Link: https://www.dhakatribune.com/business/2019/07/28/working-as-a-professor-i-can-engage-with-ideas-while-as-an-investor-i-can-practice-them
Linkedin Profile: https://www.linkedin.com/in/andywuandywu
58
IOT / Challenges before IoT in Bangladesh
« Last post by rakibul on July 28, 2019, 03:23:41 PM »Challenges before IoT in Bangladesh
The year 1990 brought a new dimension to the world of technological advancement when the modern internet, invented by computer scientist Berners-Lee, with World Wide Web (www) was introduced to the world. Since the invention of the internet the world has been experiencing many innovative internet-based services and solutions. Bangladesh has welcomed internet technology, as proven by over 8.7 crore internet subscribers enjoying such services.But internet has advanced its presence from desktops to laptops to smartphones. It has, moreover, flourished its essence by creating Internet of Things or IoT. IoT refers to the network of physical objects with an IP address for internet connectivity and communicating with other Internet-enabled devices and systems.IoT has legally entered Bangladesh with a directive issued by the Bangladesh.
Telecommunication Regulatory Commission (BTRC) in April this year. The BTRC mentioned nine sectors where IoT technology can be used in the country: smart building, industry automation, smart grids, water management, waste management, smart agriculture, telecare, intelligent transport system, environment management, smart urban lighting and smart parking.However, there are five challenges before IoT in the country: lack of IoT-supportive internet connectivity; lack of IoT-skilled human resources; lack of availability of smart home assistant appliances and compatible services; lack of power resources and finally lack of financial support.Seamless internet connection is mandatory for enabling IoT systems or devices. That is our first identified challenge Bangladesh is facing, to which an executive, business development of Cloudly InfoTech agrees. Although recently Bangladesh successfully tested 5G mobile internet connectivity within a specific restricted circumstance, there is lack of even a complete 3G penetration throughout the whole country. Especially outside the metropolitan cities like Dhaka or Chattagram the internet access and network quality are quite problematic.The 2nd challenge facing the country is technologically skilled personnel. Bangladesh lacks enough expertise in IoT. There are some attempts to train personnel in IoT by various institutions like the BRAC University, Grameenphone in collaboration with IEEE, Datasoft, Bangladesh Skill Development Institute, Global Skills Development Agency. However, there is a need for higher level of skilled workers in IoT in order to reap benefits across the nine sectors as outlined by the BTRC.The 3rd challenge is availability of IoT devices and their compatible services. IoT-enabled smart home service requires home assistants like Google Home or Alexa which are still not fully functional in the country as online applications like YouTube Music, Spotify, Google play Music and so on are not accessible through such smart home assistant products. Moreover, lack of IoT enabled appliances such as lights, speakers, locks, thermostats and sensors magnifies the struggle to establish a smart home system in Bangladesh. However, few electronic retail shops are selling smart lights and locks, mostly Chinese, but they are expensive for the unaware consumers. Agreeing to this, experts opined that the mindset of consumers is very important for accepting a new technology like IoT and currently Bangladeshi consumers lack this mindset.Compared with developed countries, Bangladesh is vulnerable when in matters of seamless electricity supply in the country. It is the 4th challenge. Though electricity supply has reached 90 per cent of the population, far better than what it used to be a decade ago, yet the requirement of seamless continuous power supply for IoT devices and operation is a big challenge. With Rooppur Atomic Power plant under construction, the hope for higher and uninterrupted power supply can be imagined after 2023.The 5th challenge is the financial challenge. An IDC report shows that IoT is an expensive technology of US$ 772 billion worldwide and progressing towards the 1.0 trillion USD mark in just two years. The technology requires huge spending to create and operate devices. Even with BDT 500 billion of investments in IT sector of Bangladesh, there is no specific data to find out the amount invested in IoT, but our assumption based on the current IoT products and services available in the country is that it could be less than 5. 0 per cent of the BDT 500 billion. Even with this assumed investment amount, as an executive of DataSoft complains, the government's current policies are one of the barriers to implementing IoT on a commercial level.Regardless of all these challenges, companies like DataSoft, Cloudly InfoTech, AblombTech, Walton are trying to lay the foundation for IoT industry in Bangladesh.DataSoft launched its state-of-the-art IoT laboratory on November 13, 2016 in Dhaka. DataSoft is also establishing 10,000 smart homes in Tokyo, Japan using the next generation IoT solutions what can be termed a spectacular leap for the country's IT industry. They also signed an agreement with the Ministry of Transport and Communication Channels of Democratic Republic of Congo (DRC) to advise and install IoT-based toll management solution for its Matadi Bridge.Cloudly InfoTech, being the first AWS partner in the country, is also gaining credibility for its Business and Consumer IoT products and services such as Smart home, Smart building, Smart factory, Smart farming, Smart warehouse, Smart Campus in the local and global market with Indian, American and Chinese partners providing devices, installation and maintenance services.AplombTech is another local company that provides smart switch, different types of smart lights, smart camera, smart curtain and smart tank.Walton has introduced smart air conditioner recently; Gadget & Gear is selling smart home assistants like Google Home, Amazon Alexa while Samsung has brought smart washer in the country.In order to overcome these challenges, a Datasoft executive suggests for the government to convert hundreds of government-commissioned homes to smart homes. Other required support is already available. Also, investments, specifically for the IoT technology can be encouraged by the government from various public and private sectors.
Reference:https://www.thefinancialexpress.com.bd/views/challenges-before-iot-in-bangladesh-1532880691
The year 1990 brought a new dimension to the world of technological advancement when the modern internet, invented by computer scientist Berners-Lee, with World Wide Web (www) was introduced to the world. Since the invention of the internet the world has been experiencing many innovative internet-based services and solutions. Bangladesh has welcomed internet technology, as proven by over 8.7 crore internet subscribers enjoying such services.But internet has advanced its presence from desktops to laptops to smartphones. It has, moreover, flourished its essence by creating Internet of Things or IoT. IoT refers to the network of physical objects with an IP address for internet connectivity and communicating with other Internet-enabled devices and systems.IoT has legally entered Bangladesh with a directive issued by the Bangladesh.
Telecommunication Regulatory Commission (BTRC) in April this year. The BTRC mentioned nine sectors where IoT technology can be used in the country: smart building, industry automation, smart grids, water management, waste management, smart agriculture, telecare, intelligent transport system, environment management, smart urban lighting and smart parking.However, there are five challenges before IoT in the country: lack of IoT-supportive internet connectivity; lack of IoT-skilled human resources; lack of availability of smart home assistant appliances and compatible services; lack of power resources and finally lack of financial support.Seamless internet connection is mandatory for enabling IoT systems or devices. That is our first identified challenge Bangladesh is facing, to which an executive, business development of Cloudly InfoTech agrees. Although recently Bangladesh successfully tested 5G mobile internet connectivity within a specific restricted circumstance, there is lack of even a complete 3G penetration throughout the whole country. Especially outside the metropolitan cities like Dhaka or Chattagram the internet access and network quality are quite problematic.The 2nd challenge facing the country is technologically skilled personnel. Bangladesh lacks enough expertise in IoT. There are some attempts to train personnel in IoT by various institutions like the BRAC University, Grameenphone in collaboration with IEEE, Datasoft, Bangladesh Skill Development Institute, Global Skills Development Agency. However, there is a need for higher level of skilled workers in IoT in order to reap benefits across the nine sectors as outlined by the BTRC.The 3rd challenge is availability of IoT devices and their compatible services. IoT-enabled smart home service requires home assistants like Google Home or Alexa which are still not fully functional in the country as online applications like YouTube Music, Spotify, Google play Music and so on are not accessible through such smart home assistant products. Moreover, lack of IoT enabled appliances such as lights, speakers, locks, thermostats and sensors magnifies the struggle to establish a smart home system in Bangladesh. However, few electronic retail shops are selling smart lights and locks, mostly Chinese, but they are expensive for the unaware consumers. Agreeing to this, experts opined that the mindset of consumers is very important for accepting a new technology like IoT and currently Bangladeshi consumers lack this mindset.Compared with developed countries, Bangladesh is vulnerable when in matters of seamless electricity supply in the country. It is the 4th challenge. Though electricity supply has reached 90 per cent of the population, far better than what it used to be a decade ago, yet the requirement of seamless continuous power supply for IoT devices and operation is a big challenge. With Rooppur Atomic Power plant under construction, the hope for higher and uninterrupted power supply can be imagined after 2023.The 5th challenge is the financial challenge. An IDC report shows that IoT is an expensive technology of US$ 772 billion worldwide and progressing towards the 1.0 trillion USD mark in just two years. The technology requires huge spending to create and operate devices. Even with BDT 500 billion of investments in IT sector of Bangladesh, there is no specific data to find out the amount invested in IoT, but our assumption based on the current IoT products and services available in the country is that it could be less than 5. 0 per cent of the BDT 500 billion. Even with this assumed investment amount, as an executive of DataSoft complains, the government's current policies are one of the barriers to implementing IoT on a commercial level.Regardless of all these challenges, companies like DataSoft, Cloudly InfoTech, AblombTech, Walton are trying to lay the foundation for IoT industry in Bangladesh.DataSoft launched its state-of-the-art IoT laboratory on November 13, 2016 in Dhaka. DataSoft is also establishing 10,000 smart homes in Tokyo, Japan using the next generation IoT solutions what can be termed a spectacular leap for the country's IT industry. They also signed an agreement with the Ministry of Transport and Communication Channels of Democratic Republic of Congo (DRC) to advise and install IoT-based toll management solution for its Matadi Bridge.Cloudly InfoTech, being the first AWS partner in the country, is also gaining credibility for its Business and Consumer IoT products and services such as Smart home, Smart building, Smart factory, Smart farming, Smart warehouse, Smart Campus in the local and global market with Indian, American and Chinese partners providing devices, installation and maintenance services.AplombTech is another local company that provides smart switch, different types of smart lights, smart camera, smart curtain and smart tank.Walton has introduced smart air conditioner recently; Gadget & Gear is selling smart home assistants like Google Home, Amazon Alexa while Samsung has brought smart washer in the country.In order to overcome these challenges, a Datasoft executive suggests for the government to convert hundreds of government-commissioned homes to smart homes. Other required support is already available. Also, investments, specifically for the IoT technology can be encouraged by the government from various public and private sectors.
Reference:https://www.thefinancialexpress.com.bd/views/challenges-before-iot-in-bangladesh-1532880691
59
Startup / How Startup Funding Works – Infographic
« Last post by rakibul on July 27, 2019, 09:39:09 AM »How Startup Funding Works – Infographic
A hypothetical startup will get about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. If all goes well. See how funding works in this infographic:
First, let’s figure out why we are talking about funding as something you need to do. This is not a given. The opposite of funding is “bootstrapping,” the process of funding a startup through your own savings. There are a few companies that bootstrapped for a while until taking investment, like MailChimp and AirBnB.If you know the basics of how funding works, skim to the end. In this article I am giving the easiest to understand explanation of the process. Let’s start with the basics.
Every time you get funding, you give up a piece of your company. The more funding you get, the more company you give up. That ‘piece of company’ is ‘equity.’ Everyone you give it to becomes a co-owner of your company.
Splitting the Pie
The basic idea behind equity is the splitting of a pie. When you start something, your pie is really small. You have a 100% of a really small, bite-size pie. When you take outside investment and your company grows, your pie becomes bigger. Your slice of the bigger pie will be bigger than your initial bite-size pie.When Google went public, Larry and Sergey had about 15% of the pie, each. But that 15% was a small slice of a really big pie.
Funding Stages
Let’s look at how a hypothetical startup would get funding.
Idea stage
At first it is just you. You are pretty brilliant, and out of the many ideas you have had, you finally decide that this is the one. You start working on it. The moment you started working, you started creating value. That value will translate into equity later, but since you own 100% of it now, and you are the only person in your still unregistered company, you are not even thinking about equity yet.
Co-Founder Stage
As you start to transform your idea into a physical prototype you realize that it is taking you longer (it almost always does.) You know you could really use another person’s skills. So you look for a co-founder. You find someone who is both enthusiastic and smart. You work together for a couple of days on your idea, and you see that she is adding a lot of value. So you offer them to become a co-founder. But you can’t pay her any money (and if you could, she would become an employee, not a co-founder), so you offer equity in exchange for work (sweat equity.) But how much should you give? 20% – too little? 40%? After all it is YOUR idea that even made this startup happen. But then you realize that your startup is worth practically nothing at this point, and your co-founder is taking a huge risk on it. You also realize that since she will do half of the work, she should get the same as you – 50%. Otherwise, she might be less motivated than you. A true partnership is based on respect. Respect is based on fairness. Anything less than fairness will fall apart eventually. And you want this thing to last. So you give your co-founder 50%.Soon you realize that the two of you have been eating Ramen noodles three times a day. You need funding. You would prefer to go straight to a VC, but so far you don’t think you have enough of a working product to show, so you start looking at other options.The Family and Friends Round: You think of putting an ad in the newspaper saying, “Startup investment opportunity.” But your lawyer friend tells you that would violate securities laws. Now you are a “private company,” and asking for money from “the public,” that is people you don’t know would be a “public solicitation,” which is illegal for private companies. So who can you take money from?Accredited investors – People who either have $1 Million in the bank or make $200,000 annually. They are the “sophisticated investors” – that is people who the government thinks are smart enough to decide whether to invest in an ultra-risky company, like yours. What if you don’t know anyone with $1 Million? You are in luck, because there is an exception – friends and family.Family and Friends – Even if your family and friends are not as rich as an investor, you can still accept their cash. That is what you decide to do, since your co-founder has a rich uncle. You give him 5% of the company in exchange for $15,000 cash. Now you can afford room and ramen for another 6 months while building your prototype.
Registering the Company
To give uncle the 5%, you registered the company, either though an online service like LegalZoom ($400) [1], or through a lawyer friend (0$-$2,000). You issued some common stock, gave 5% to uncle and set aside 20% for your future employees – that is the ‘option pool.’ (You did this because 1. Future investors will want an option pool; 2. That stock is safe from you and your co-founders doing anything with it.)
The Angel Round
With uncle’s cash in pocket and 6 months before it runs out, you realize that you need to start looking for your next funding source right now. If you run out of money, your startup dies. So you look at the options:
Incubators, accelerators, and “excubators” – these places often provide cash, working space, and advisors. The cash is tight – about $25,000 (for 5 to 10% of the company.) Some advisors are better than cash, like Paul Graham [2] at Y Combinator.
Angels – in 2013 (Q1) the average angel round was $600,000 (from the HALO report). That’s the good news. The bad news is that angels were giving that money to companies that they valued at $2.5 million. So, now you have to ask if you are worth $2.5 million. How do you know? Make your best case. Let’s say it is still early days for you, and your working prototype is not that far along. You find an angel who looks at what you have and thinks that it is worth $1 million. He agrees to invest $200,000.Now let’s count what percentage of the company you will give to the angel. Not 20%. We have to add the ‘pre-money valuation’ (how much the company is worth before new money comes in) and the investment
$1,000,000 + $200,000 = $1,200,000 post-money valuation
(Think of it like this, first you take the money, then you give the shares. If you gave the shares before you added the angel’s investment, you would be dividing what was there before the angel joined.)Now divide the investment by the post-money valuation $200,000/$1,200,000=1/6= 16.7%
The angel gets 16.7% of the company, or 1/6.
How Funding Works – Cutting the Pie
What about you, your co-founder and uncle? How much do you have left? All of your stakes will be diluted by 1/6. (See the infographic.)Is dilution bad? No, because your pie is getting bigger with each investment. But, yes, dilution is bad, because you are losing control of your company. So what should you do? Take investment only when it is necessary. Only take money from people you respect. (There are other ways, like buying shares back from employees or the public, but that is further down the road.)
Venture Capital Round
Finally, you have built your first version and you have traction with users. You approach VCs. How much can VCs give you? They invest north of $500,000. Let’s say the VC values what you have now at $4 million. Again, that is your pre-money valuation. He says he wants to invest $2 Million. The math is the same as in the angel round. The VC gets 33.3% of your company. Now it’s his company, too, though.Your first VC round is your series A. Now you can go on to have series B,C – at some point either of the three things will happen to you. Either you will run out of funding and no one will want to invest, so you die. Or, you get enough funding to build something a bigger company wants to buy, and they acquire you. Or, you do so well that, after many rounds of funding, you decide to go public.
Why Companies Go Public?
There are two basic reasons. Technically an IPO is just another way to raise money, but this time from millions of regular people. Through an IPO a company can sell stocks on the stock market and anyone can buy them. Since anyone can buy you can likely sell a lot of stock right away rather than go to individual investors and ask them to invest. So it sounds like an easier way to get money.There is another reason to IPO. All those people who have invested in your company so far, including you, are holding the so-called ‘restricted stock’ – basically this is stock that you can’t simply go and sell for cash. Why? Because this is stock of a company that has not been so-to-say “verified by the government,” which is what the IPO process does. Unless the government sees your IPO paperwork, you might as well be selling snake oil, for all people know. So, the government thinks it is not safe to let regular people to invest in such companies. (Of course, that automatically precludes the poor from making high-return investments. But that is another story.) The people who have invested so far want to finally convert or sell their restricted stock and get cash or unrestricted stock, which is almost as good as cash. This is a liquidity event – when what you have becomes easily convertible into cash.There is another group of people that really want you to IPO. The investment bankers, like Goldman Sachs and Morgan Stanley, to name the most famous ones. They will give you a call and ask to be your lead underwriter – the bank that prepares your IPO paperwork and calls up wealthy clients to sell them your stock. Why are the bankers so eager? Because they get 7% of all the money you raise in the IPO. In this infographic your startup raised $235,000,000 in the IPO – 7% of that is about $16.5 million (for two or three weeks of work for a team of 12 bankers). As you see, it is a win-win for all.
Being an Early Employee at a Startup
Last but not least, some of your “sweat equity” investors were the early employees who took stock in exchange for working at low salaries and living with the risk that your startup might fold. At the IPO it is their cash-out day.
Reference:https://blog.adioma.com/how-funding-works-splitting-equity-infographic/
A hypothetical startup will get about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. If all goes well. See how funding works in this infographic:
First, let’s figure out why we are talking about funding as something you need to do. This is not a given. The opposite of funding is “bootstrapping,” the process of funding a startup through your own savings. There are a few companies that bootstrapped for a while until taking investment, like MailChimp and AirBnB.If you know the basics of how funding works, skim to the end. In this article I am giving the easiest to understand explanation of the process. Let’s start with the basics.
Every time you get funding, you give up a piece of your company. The more funding you get, the more company you give up. That ‘piece of company’ is ‘equity.’ Everyone you give it to becomes a co-owner of your company.
Splitting the Pie
The basic idea behind equity is the splitting of a pie. When you start something, your pie is really small. You have a 100% of a really small, bite-size pie. When you take outside investment and your company grows, your pie becomes bigger. Your slice of the bigger pie will be bigger than your initial bite-size pie.When Google went public, Larry and Sergey had about 15% of the pie, each. But that 15% was a small slice of a really big pie.
Funding Stages
Let’s look at how a hypothetical startup would get funding.
Idea stage
At first it is just you. You are pretty brilliant, and out of the many ideas you have had, you finally decide that this is the one. You start working on it. The moment you started working, you started creating value. That value will translate into equity later, but since you own 100% of it now, and you are the only person in your still unregistered company, you are not even thinking about equity yet.
Co-Founder Stage
As you start to transform your idea into a physical prototype you realize that it is taking you longer (it almost always does.) You know you could really use another person’s skills. So you look for a co-founder. You find someone who is both enthusiastic and smart. You work together for a couple of days on your idea, and you see that she is adding a lot of value. So you offer them to become a co-founder. But you can’t pay her any money (and if you could, she would become an employee, not a co-founder), so you offer equity in exchange for work (sweat equity.) But how much should you give? 20% – too little? 40%? After all it is YOUR idea that even made this startup happen. But then you realize that your startup is worth practically nothing at this point, and your co-founder is taking a huge risk on it. You also realize that since she will do half of the work, she should get the same as you – 50%. Otherwise, she might be less motivated than you. A true partnership is based on respect. Respect is based on fairness. Anything less than fairness will fall apart eventually. And you want this thing to last. So you give your co-founder 50%.Soon you realize that the two of you have been eating Ramen noodles three times a day. You need funding. You would prefer to go straight to a VC, but so far you don’t think you have enough of a working product to show, so you start looking at other options.The Family and Friends Round: You think of putting an ad in the newspaper saying, “Startup investment opportunity.” But your lawyer friend tells you that would violate securities laws. Now you are a “private company,” and asking for money from “the public,” that is people you don’t know would be a “public solicitation,” which is illegal for private companies. So who can you take money from?Accredited investors – People who either have $1 Million in the bank or make $200,000 annually. They are the “sophisticated investors” – that is people who the government thinks are smart enough to decide whether to invest in an ultra-risky company, like yours. What if you don’t know anyone with $1 Million? You are in luck, because there is an exception – friends and family.Family and Friends – Even if your family and friends are not as rich as an investor, you can still accept their cash. That is what you decide to do, since your co-founder has a rich uncle. You give him 5% of the company in exchange for $15,000 cash. Now you can afford room and ramen for another 6 months while building your prototype.
Registering the Company
To give uncle the 5%, you registered the company, either though an online service like LegalZoom ($400) [1], or through a lawyer friend (0$-$2,000). You issued some common stock, gave 5% to uncle and set aside 20% for your future employees – that is the ‘option pool.’ (You did this because 1. Future investors will want an option pool; 2. That stock is safe from you and your co-founders doing anything with it.)
The Angel Round
With uncle’s cash in pocket and 6 months before it runs out, you realize that you need to start looking for your next funding source right now. If you run out of money, your startup dies. So you look at the options:
Incubators, accelerators, and “excubators” – these places often provide cash, working space, and advisors. The cash is tight – about $25,000 (for 5 to 10% of the company.) Some advisors are better than cash, like Paul Graham [2] at Y Combinator.
Angels – in 2013 (Q1) the average angel round was $600,000 (from the HALO report). That’s the good news. The bad news is that angels were giving that money to companies that they valued at $2.5 million. So, now you have to ask if you are worth $2.5 million. How do you know? Make your best case. Let’s say it is still early days for you, and your working prototype is not that far along. You find an angel who looks at what you have and thinks that it is worth $1 million. He agrees to invest $200,000.Now let’s count what percentage of the company you will give to the angel. Not 20%. We have to add the ‘pre-money valuation’ (how much the company is worth before new money comes in) and the investment
$1,000,000 + $200,000 = $1,200,000 post-money valuation
(Think of it like this, first you take the money, then you give the shares. If you gave the shares before you added the angel’s investment, you would be dividing what was there before the angel joined.)Now divide the investment by the post-money valuation $200,000/$1,200,000=1/6= 16.7%
The angel gets 16.7% of the company, or 1/6.
How Funding Works – Cutting the Pie
What about you, your co-founder and uncle? How much do you have left? All of your stakes will be diluted by 1/6. (See the infographic.)Is dilution bad? No, because your pie is getting bigger with each investment. But, yes, dilution is bad, because you are losing control of your company. So what should you do? Take investment only when it is necessary. Only take money from people you respect. (There are other ways, like buying shares back from employees or the public, but that is further down the road.)
Venture Capital Round
Finally, you have built your first version and you have traction with users. You approach VCs. How much can VCs give you? They invest north of $500,000. Let’s say the VC values what you have now at $4 million. Again, that is your pre-money valuation. He says he wants to invest $2 Million. The math is the same as in the angel round. The VC gets 33.3% of your company. Now it’s his company, too, though.Your first VC round is your series A. Now you can go on to have series B,C – at some point either of the three things will happen to you. Either you will run out of funding and no one will want to invest, so you die. Or, you get enough funding to build something a bigger company wants to buy, and they acquire you. Or, you do so well that, after many rounds of funding, you decide to go public.
Why Companies Go Public?
There are two basic reasons. Technically an IPO is just another way to raise money, but this time from millions of regular people. Through an IPO a company can sell stocks on the stock market and anyone can buy them. Since anyone can buy you can likely sell a lot of stock right away rather than go to individual investors and ask them to invest. So it sounds like an easier way to get money.There is another reason to IPO. All those people who have invested in your company so far, including you, are holding the so-called ‘restricted stock’ – basically this is stock that you can’t simply go and sell for cash. Why? Because this is stock of a company that has not been so-to-say “verified by the government,” which is what the IPO process does. Unless the government sees your IPO paperwork, you might as well be selling snake oil, for all people know. So, the government thinks it is not safe to let regular people to invest in such companies. (Of course, that automatically precludes the poor from making high-return investments. But that is another story.) The people who have invested so far want to finally convert or sell their restricted stock and get cash or unrestricted stock, which is almost as good as cash. This is a liquidity event – when what you have becomes easily convertible into cash.There is another group of people that really want you to IPO. The investment bankers, like Goldman Sachs and Morgan Stanley, to name the most famous ones. They will give you a call and ask to be your lead underwriter – the bank that prepares your IPO paperwork and calls up wealthy clients to sell them your stock. Why are the bankers so eager? Because they get 7% of all the money you raise in the IPO. In this infographic your startup raised $235,000,000 in the IPO – 7% of that is about $16.5 million (for two or three weeks of work for a team of 12 bankers). As you see, it is a win-win for all.
Being an Early Employee at a Startup
Last but not least, some of your “sweat equity” investors were the early employees who took stock in exchange for working at low salaries and living with the risk that your startup might fold. At the IPO it is their cash-out day.
Reference:https://blog.adioma.com/how-funding-works-splitting-equity-infographic/
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Venture Capital / 4 Investment Opportunities For Young Entrepreneurs
« Last post by rakibul on July 27, 2019, 09:24:04 AM »4 Investment Opportunities For Young Entrepreneurs
1.Real Estate.
Investing in real estate can give you the opportunity to gauge the market carefully and create a plan to realize both long and short-term goals. While this market does have some risks, it is usually not as unstable as the stock market, which can be perilous for newcomers. You can also begin with small investments, such as sharing ownership of a summer home or buying a small commercial building to house your company.Working with a real estate broker can help you keep better track of the market’s atmosphere and keep you informed when properties become available. Let your broker know about what kinds of opportunities you are looking for and what gains you hope to make, as this may help him or her find more suitable opportunities for you.
2.Other Entrepreneurs.
Millennials have been universally blamed for destroying certain markets, including the diamond and fast food industry, as they are increasingly putting their money into other ventures. However, these actions are not as destructive as those of the previous generations have made them out to be, and many young entrepreneurs have discovered that investing in other startups can be profitable in more than one way.If you are considering putting some money into other small businesses, one of the most effective ways to begin is by making connections with their owners. Not only can this garner trust within your entrepreneurial network, but it can also help you better understand which companies are most in line with your investment plans and goals.
3.Retirement Accounts.
If you are in your 20s or 30s, you may not be thinking much about retirement at this point. However, there are many advantages to investing in the future, especially if you want to enjoy your golden years by traveling or buying a second home. This can be especially important if you plan to do any long-term investing once your company starts to grow.There are several factors to look into when you first set up a retirement investment fund. First, learn about state and federal contribution limits for each account you want to set up. Both Roth and IRA accounts typically have the same cap until the holder reaches age 50. After that, you may contribute more each year. These accounts are usually quite low risk, which makes them a good choice for you as a young investor.
4.Forex Trading.
If you are looking for an investment opportunity with a higher risk yet provides you with some real-time trading excitement, then you might consider foreign currency exchange investments, or forex. This type of investing allows you to trade around the clock, five days a week, as you trade American currency with those that are used in other countries. The goal is to make trades that result in a gain when currencies change in value.While forex trading can be accomplished without a broker, it is wise to work with one in this market, especially when you first begin. A broker’s advice and assistance can be invaluable and lower forex investment risk, and you can find one on Fx-List.com, where a variety of filters can help you narrow down your search based on your goals.Investing can help you build capital and confidence when you are a millennial entrepreneur. Taking the time to find the opportunity that best suits your investment style and goals may yield big returns and help you avoid some common errors many young investors make.
Reference:http://www.youngupstarts.com/2019/03/08/4-investment-opportunities-for-young-entrepreneurs/
1.Real Estate.
Investing in real estate can give you the opportunity to gauge the market carefully and create a plan to realize both long and short-term goals. While this market does have some risks, it is usually not as unstable as the stock market, which can be perilous for newcomers. You can also begin with small investments, such as sharing ownership of a summer home or buying a small commercial building to house your company.Working with a real estate broker can help you keep better track of the market’s atmosphere and keep you informed when properties become available. Let your broker know about what kinds of opportunities you are looking for and what gains you hope to make, as this may help him or her find more suitable opportunities for you.
2.Other Entrepreneurs.
Millennials have been universally blamed for destroying certain markets, including the diamond and fast food industry, as they are increasingly putting their money into other ventures. However, these actions are not as destructive as those of the previous generations have made them out to be, and many young entrepreneurs have discovered that investing in other startups can be profitable in more than one way.If you are considering putting some money into other small businesses, one of the most effective ways to begin is by making connections with their owners. Not only can this garner trust within your entrepreneurial network, but it can also help you better understand which companies are most in line with your investment plans and goals.
3.Retirement Accounts.
If you are in your 20s or 30s, you may not be thinking much about retirement at this point. However, there are many advantages to investing in the future, especially if you want to enjoy your golden years by traveling or buying a second home. This can be especially important if you plan to do any long-term investing once your company starts to grow.There are several factors to look into when you first set up a retirement investment fund. First, learn about state and federal contribution limits for each account you want to set up. Both Roth and IRA accounts typically have the same cap until the holder reaches age 50. After that, you may contribute more each year. These accounts are usually quite low risk, which makes them a good choice for you as a young investor.
4.Forex Trading.
If you are looking for an investment opportunity with a higher risk yet provides you with some real-time trading excitement, then you might consider foreign currency exchange investments, or forex. This type of investing allows you to trade around the clock, five days a week, as you trade American currency with those that are used in other countries. The goal is to make trades that result in a gain when currencies change in value.While forex trading can be accomplished without a broker, it is wise to work with one in this market, especially when you first begin. A broker’s advice and assistance can be invaluable and lower forex investment risk, and you can find one on Fx-List.com, where a variety of filters can help you narrow down your search based on your goals.Investing can help you build capital and confidence when you are a millennial entrepreneur. Taking the time to find the opportunity that best suits your investment style and goals may yield big returns and help you avoid some common errors many young investors make.
Reference:http://www.youngupstarts.com/2019/03/08/4-investment-opportunities-for-young-entrepreneurs/