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Bootstrap – From Ideas to Reality (Newsletter for Startups) – December

Think big and don’t listen to people who tell you it can’t be done. Life’s too short to think small” – Tim Ferris

Brick and Mortar- A description of an incubator/accelerator
Edugild
Edugild is a Global Edtech Startup Accelerator with a vision to create world class organizations in the field of education, learning and development, skill development and knowledge management.

Based in Pune, Edugild offers an intensive mentorship and product realization program to any EdTech start-up in the world. It concentrates on Edtech, as there is a continuous increase in investment in Education and Knowledge management sector, which is expected to grow by leaps and bounds propelled by technological advancements and demand for additional skills.

Notable Cohorts from Edugild are Ahhaa, Musein, Classboat, Simulanis, Readrush and Edvantics, backed up by a wide-range of scale up partners.

In the Global economic summit, Team Simulanis was awarded with the National Entrepreneurship Award 2017.

Offerings & Unique propositions from Edugild sets them above from other accelerators, since they are backed up by,
• Strong Knowledge & Experience in education and education management
• Canny Venture Partners
• Brawny Mentor and Subject experts
• Strong Institutional partners
• Wide base of Investors
For more details, visit: http://www.edugild.com

The Gyaan Corner: Voting and Non-Voting Shares

Share means a share in the share capital of a company, units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends. Shares can be issued with or without voting rights.

Voting shares:
Voting shares are the shares of stock that allow the owner to vote on company matters. Voting shareholders are the part owners of the business and if the business is able to turn a profit, then these shareholders gain.

Generally, Private companies issue voting shares to its co-founders, executives to avoid dilution of control.

Voting shareholders can influence the corporation through votes on establishing corporate objectives and policy, stock splits, and electing the company’s board of directors.

Major rights of a Voting Shareholder:
• Voting power on major issues
• Ownership of the company
• Right to receive profit, apart from dividend
• Opportunity to inspect Corporate books and records
• Right to sue for wrongful acts

Voting shares carry huge risk, as they have residual claim over the assets. If, Shareholder is a small investor, he might have limited control and he would not be able to create an impact on the decision made by the company using the voting rights.

Non-voting shares:
Non-voting shares are, those equity shares that do not confer voting rights to the shareholders, even though it is entitled to a share of the profits. The term is not usually applied to preference shares, although preference shares do not carry voting rights, they receive a fixed dividend. In India, only private companies have the option to issue non-voting shares.

Most rights for non-voting shares are identical to those of ordinary shares apart from the lack of a vote at company AGMs and EMGs.

The purpose of non-voting shares is to allow the holders of the ordinary shares to maintain control. Non-voting shares are usually less valuable than voting shares despite being entitled to exactly the same stream of dividends. A simple dividend discount model would suggest that they are worth the same, but there are a number of reasons why the prices should be different:

• The voting shares are more valuable in a takeover bid as most bidders aim at control, which can never be achieved by purchasing non- voting shares.
• Appointment of directors can bring an additional income stream. This is most relevant for small companies, especially family companies and those still controlled by their founders.
• Control can bring the ability to make the company deal with connected parties.
This should make it clear why investors have become increasingly resistant to buying non-voting shares, which have becomes less widely used.

Penny to Pounds- Monthly News about Funding
Prest Loanshttp://www.prestloans.com/FinanceSeed Funding570000
Vagupuhttps://vagupu.com/TechnologySeed Funding1000000
KalpnikTechnologieshttp://www.kalpnik.com/TechnologySeed Funding500000
Hevo Datahttps://hevodata.com/TechnologyPrivate Equity1000000
DocTalkhttp://www.getdoctalk.com/TechnologyPrivate Equity5000000
CoveIoThttp://coveiot.com/TechnologyPrivate Equity5000000
Talentedgehttps://talentedge.in/TechnologyPrivate Equity7600000
Fisdomhttps://www.fisdom.com/FinancePrivate Equity3000000
FarmLinkhttp://farmlink.in/team/eCommercePrivate Equity3000000
Open Apphttps://openapp.co/TechnologyPrivate Equity3600000
NoPaperFormshttp://letsservice.inTechnologySeed Funding872000
Qubolehttps://www.qubole.com/TechnologyPrivate Equity25000000
Universal Sportsbiz Pvt. Ltdhttp://meesho.com/ECommercePrivateEquity15000000
Active AIhttps://active.ai/TechnologyPrivate Equity8250000
Sumeruhttps://www.sumerusolutions.com/TechnologySeed Funding900000
ONN Bikeshttps://www.onnbikes.com/TechnologySeed/Angel Funding 692,000
Rapidohttps://rapido.bike/TechnologySeed/Angel Funding 329,230
 Heckylhttp://www.heckyl.com/TechnologyPrivate Equity 2,700,000
 Nuveprohttp://www.nuvepro.com/TechnologySeed/Angel Funding 400,000
Redbookhttps://www.redbook.com.au/TechnologySeed/Angel Funding 250,000
 Porteahttps://www.portea.com/HealthcarePrivate Equity26000000
Epiq Capitalhttp://epiqcapital.com/FinancePrivate Equity 200,000,000
IDG Ventureshttp://www.idgvcindia.com/FinancePrivate Equity10000000
Edelweisshttps://www.edelweiss.in/FinancePrivate Equity 270,000,000
Chumbakwww.chumbak.comLifestylePrivate Equity13000000
FR8https://www.fr8.in/TechnologyDebt Funding1500000
MobieFithttps://www.mobiefit.com/HealthcareSeed/Angel Funding 1,350,000
Stanza Livinghttp://www.stanzaliving.com/TechnologyPrivate Equity 2,000,000
Tick Tac Toe- Compliance Calendar for the month
Dec 07Dec 10Dec 15Dec 20Dec 21Dec 24Dec 31
TDS/TCS Challan
PT Payment
PF Payment

GSTR- 3B (for Nov)

ESI Payment
GSTR- 4
GSTR -1 (July to Sep) - for registered persons with aggrgate turnover upto INR 1.5 cr.
Statement of Investor Complaints*GSTR-1 (July- Oct) - for registerd persons with aggregate turnover more than 1.5 crores.
Share holding Pattern *Filing of Revised Tran 01
ITC 04 (July - Sep)
*To be filed by corporates registered with SEBI
Meet and Greet- Startup Events: Let’s catch up!!

1. Saturday, December 09, 2017- Startup Master Class 2017, Bengaluru
Description:
Start-up Master (SMC) is for the entrepreneurs by the entrepreneurs. It is the eighth edition of SMC and the theme for the same is Realizing Dreams. It is led by Alumni of IIT Kanpur. It is building on the collaborative approach, it is organized along with the Alumni of IIT KGP, PAN IIT, IIMA and IIMB . It is in association with Christ University.

Leverages:
a) Listen to the exciting speakers sharing dreams and how they realized them
b) Attend expert workshops. Focus is on all, Machine Learning and Block chain
c) Get the best of One on one to connect with mentor and investors
d) Participate in SMC Select to pitch to Business experts and Investors
e) Be considered by the key accelerators and investors

Time : 8:00AM – 7:00PM
Venue : Christ University Hosur Road, Bhavani Nagar, Suddagunte Palya, Bengaluru, Karnataka 560029

2. Saturday, 16 December 2017- Intellectual Property Rights 101 – Protecting Your Brand And Product
What all would be covered in the Event?
Types of IP
Legal Protection of IP
IP Monetization

Time : 2:30PM – 3:30PM
Venue : Intide Space BNR Complex, 2nd Floor, J.P.Nagar, 7th Phase, Near Brigade Millenium, Bengaluru, Karnataka 560078

3. Saturday, 9 December 2017- E-Tribe Startup Networking with Tea – With entrepreneurs/startups/techies/marketing experts/speaker

This event is presents by E-Tribe, the Tribe for Entrepreneurs. This event is all dedicated for the freelancers and startups/ Entrepreneurs who are willing to share their knowledge and can interact with the others for the harmony for everyone. The main focus of the discussions will be how the big companies growing and how one can penetrate the market and establish oneself in the future. Rest you can connect with other people who are doing good in their startup and you can also connect with some new inspirations.

Time : 4:00PM – 7:00PM
Venue : E-Tribe , Tilak Nagar Etribe,Office 101, First Floor, 42B, Block 13, Tilak Nagar, Near Valmiki Chowk New Delhi, Delhi 110018, India

4. Startereum (India’s Multicity Accelerator)- Pitch Camp @ Forge
2 workshop days, 3 pitch rounds, 3 hour pitch masterclass, 4 hours of pitch clinic, several hours of mentoring & networking; Peers, Investors, Experts all working to help you ace your Startup Pitch!

Time: Dec 9:00AM + more dates
Venue : Stpi Chennai Software Technology Parks Of India – Chennai No. 5, Rajiv Gandhi Salai, Taramani Chennai India 600 113

5. Friday, December 15, 2017- Techjam Pune – Bitcoin and Blockchains from Navin Kabra
Bitcoin is a worldwide cryptocurrency that allows anonymous but fully secure and fully decentralized “cash” transactions. If you have been paying attention either in the finance technology industry or the startup funding scene, you’ll know that Bitcoin is getting a lot of hype, and even some of the most conservative technology companies – i.e. banks – have started research efforts related to Bitcoin to ensure that they’re not caught napping if Bitcoin disrupts their industry. But, there is a far bigger picture here that is important to understand. The core technology underlying Bitcoin is the Blockchain.

Specifically, he will be touching on the following aspects: – The cryptographic algorithms underlying the blockchain, that allow it to be secure and reliable, inspite of not requiring any central authority – The distributed consensus algorithm that allows arbitrary untrusted servers on the internet to agree on the current state of the system – Some potential applications of bitcoin and blockchain There are no real pre-requisites for this talk. It should be accessible to anyone with a general familiarity with the technology industry and the internet.

Time: 5 PM
Venue: MCCIA Trade Tower A Wing, 5th Floor, International Convention Centre Complex Senapati Bapat Road Pune India 411016

Across the Border: Boston

Country: Boston

Topping the charts of the top startup culture, as released by US Chamber of Commerce Foundation and incubator 1776, Boston has emerged as rank no.1 for its startup culture and incubation among 25 cities.
Only in the recent years has Boston started to emerge as a hub of bright prospects for startups. With over 4,000 startups and over a $46 billion valued startup ecosystem, Boston has been accumulating heft, connecting the dots that were lacking.
This is attributed to the efforts of the state of the city that has facilitated the infrastructure changes needed for startups in new areas.
Traditionally, Boston had been converged more on late-stage ventures, but this has changed. Boston’s startup scene, now, is that of community and collaboration. More than 40 accelerators and university incubators provide the guidance and help to startup founders in their rocky journey.
The city has more universities than any city of USA, including many of the leading math, science, technology, and engineering schools. In fact, Boston’s strongest offerings to the startups lie in its huge employable talent pool.
With a vast network of venture capital funds, numerous universities and startup incubators, qualified workforce and city government led initiatives, the Old Towne is offering startups a potent platform to reach the skies.

Some notable startups from Boston are:
Placester: Placester is a real estate marketing platform that lets users advertise listings online via automated distribution with performance tracking baked in. It has received total funding of over $50 dollars.
Evertrue: EverTrue is an education fundraising and mobile alumni networking platform. Today, 300+ nonprofit institutions rely on EverTrue to identify, prioritize and manage fundraising prospects.
Localytics: A mobile engagement platform, Localytics uses data to give companies insights to improve their mobile app acquisition, engagement and retention efforts. It has also acquired two companies, including Berlin’s Tapglue, which offered mobile app developers a backend service to easily add social features to apps.

Get it Right- Sweep in Bank Accounts
About Sweep in bank account

Savings cum fixed deposit product called a “Sweep Account”. It is a facility which interlinks saving bank account with a Fixed Deposit account. Whenever the amount in the bank account crosses the limit the amount automatically is transferred to fixed deposits, hence earning a higher rate of interest. Also when the amount in the account falls short, excess shall be transferred from fixed deposit account to savings account.
Sweep Out:
When an amount of money is transferred from savings account to the FD, it is called a sweep out.
Sweep In:
When the money is transferred from the FD to the savings account, it is called sweep in or the reverse sweep facility.
Most leading banks in the country, including public sector banks, offer this facility, but the name may vary.

Example:
1. Syndicate Bank – The Premium savings account
2. HDFC Bank – The sweep-in facility
3. Standard Chartered Bank – 2-in-1 account.

• Functions
1. A sweep account combines two or more accounts at a bank or a financial institution, moving funds between them in a predetermined manner.
2. The funds are automatically managed between a primary cash account and secondary investment accounts.
3. A bank’s computer analyzes customer use of checkable deposits and “sweep” funds into money market deposit accounts.

• How it actually works?
1. Savings bank account is set up and amount is deposited into the same
2. Average balance shall be determined
3. Most of the extra cash above the average balance will be invested into a money market, CD, or some other form of investment that can be easily liquidated.
4. When the balance in the cash account falls below the pre-determined average balance, some of the investment is liquidated and the proceeds get deposited into the cash account, thus maintaining the average balance.

• Example of how it works
Siddharth has an auto sweep account with minimum balance of Rs. 10,000 and defines threshold limit of Rs 80,000. He will be normally earning an interest of 4% on saving bank account.
Suppose on 1 May 2017 he has Rs.60, 000 in his account.
1. As Rs.60, 000is less than the threshold limit of Rs 80,000, the balance remains in the savings account and earns regular interest i.e 4%.
2. Suppose on 5-May-2017 he deposits a cheque of Rs 100,000. Now balance in his account is Rs 160,000 which is above the threshold limit of Rs 80,000. So 80,000 will be converted into Fixed Deposit and the remaining 80,000 will continue to remain in the bank account. So for Rs 80,000 he will earn higher interest as it is in FD and for Rs. 80,000 in saving bank account he will continue to earn 4%.
3. On 12-May-2017 he withdraws 40,000 from his account. Balance in his account becomes Rs 40,000 and Fixed Deposit of Rs 80,000 remains intact.
4. On 17-May-2017 he drops in a cheque to withdraw Rs 50,000 from his account. As balance in Saving Bank account is Rs 40,000, bankwill break the FD for Rs 20,000 and move the amount to Saving Bank to honor his request and maintain minimum balance of Rs.10, 000.

• Terms associated with Auto Sweep Account
1. Threshold Limit
2. Sweep Out
3. Sweep IN
4. Tenor or Period of the FD
5. Pre closure penalty

• Benefits
1. This is a convenience for the client, relieving him or her of the need to enter separate instructions each time a transfer of funds is required or desired, or to write and deposit checks.
2. The money deposited in the sweep in account earns a higher interest that a savings account.
3. Idle cash reserves are tackled in this system. As the amounts are automatically transferred to the FD account.
4. Any individual who runs a small business and has a current account need not take an overdraft on the fixed deposit held by them, setting up a sweep account will be more beneficial for them.
5. Interest is not lost on the fixed deposit, only on the amount drawn or swept interest is foregone.
6. There are no additional fees or charges that need to be paid like in the case of overdraft facilities that are levied by banks.
7. Banks even offer you the facility to link multiple fixed deposits to you sweep account.

Down the Memory Lane- Pepperfry
Company – Pepperfry
Pepperfry, founded in 2011 by e-Bay CEO Ambareesh Murty and Asish Shah, has emerged as a legend in the era of raining of shopping sites.

Initially launched as a line of departmental stores featuring apparels, bas and accessories, it later took benefit of operating in a privileged category over a website, fixing its business to Furniture and home décor.

While the funding was a smooth process, with the first round of investments being raised from Norwest a month and half before its inception, Pepperfry ad outer hurdles to deal with.

One of the major problems that Pepperfry faced was the dearth of infrastructure, logistics and supply chain loopholes. To combat ties problem, Pepperfry created its own logistics systems and strategically located fulfillment centers. The logistics, owned by its subsidiary Pepkart boasts of over 380 customized trucks delivering in over 500 cities.

The future:
While Pepperfry as emerged as the biggest furniture e-retailer in India, claiming 50% of the market share and 65% of online traffic, it remains to be seen whether these numbers will old wit the entry of Swedish furniture giant IKEA making its entry in the country.

While Pepkart may have helped Pepperfry to cut down its losses and bring down the average cost of delivery per order, can it also morph into a money minting logistics arm for the furniture e-retailer? Only time will tell but one thing is sure. Pepperfry is not shying away from making these big bets as it continues with its mission to provide its users “happy furniture”.

Startup Joke

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