Intel India : New Business Initiative

Intel India plans new businesses surrounding new technologies, markets & models

BANGALORE: Bringing a successful global practise to its Indian operations, chip major Intel is planning to spawn entrepreneurial ventures within its India technology centre. The core idea is to create an environment of innovation and business-building apart from pure technology. The added upside is that such an initiative has the power to retain some of its top performers from logging out of the company to jump-start ventures.

Intel’s internal business incubator, New Business Initiative (NBI), is currently executing comprehensive pilots in low-cost technology platforms and commercial launches are expected in the middle of 2008 in India. For time, NBI has been extended out of US in 2006 to India.

NBI is conceptualised around building new businesses surrounding new technologies, markets and models. Globally, the group has been incubating new businesses for 10 years with achievements such as WiMax.
Intel Capital, part of the Intel group, invests and supports several startups and ideas outside of the company. So, the internal business incubator backs those ideas that are not in the same space as those supported by the VC arm of the chip maker.

Talking to ET, Intel India President Praveen Vishakantaiah said, “We have got very good responses to the initiative internally.” Successful businesses either stay internal and complement Intel’s offerings or could be spun out as new entities. Currently, NBI is incubating two businesses in India in retail technologies and low-cost rural networks.

Engineer-entrepreneurs in Intel are working on a low-cost technology platform for kiranas and pharmacies by building point-of-sale and marketing devices like digital signage, coupons, and loyalty programs. These devices could be loaded with value-added services like billpay, mobile recharge, tickets, courier on the same platform. It is expected that service providers and consumers would be attracted to online service delivery model with offline cash payments. NBI is partnering with FMCG companies, service providers and Intel’s channel partners to support retailers.

At the same time, Intel is also looking at tune these ideas from the employees to demands of the marketplace. Mr Vishakantaiah said it has the “blue buddies” programme where it encourages its engineers to go and interact with the potential customers to understand what technology they would really require.

The other pilot is on building a rural network with low-cost, long-range WiFi technology developed in Intel’s Berkeley Laboratory. This network aims to bridge the link between villages and nearest wired network, often in district headquarters. NBI is partnering with many financial institutions and communication companies for this venture.

News Roundup: Nov 21

How to Invest in India

Coverage Of The Kindle (Book Reader, just like what iPod is for music) Launch

The Kindle Book Reader: What was Amazon Thinking?

Dubai-based Baer Capital Plans $500M-Infra And Real Estate Fund

Media in India: Is it Prime Time?

The Carbon Calculus

NY Times published a nice acrticle on the impact of charging companies for their carbon footprints, and price points for carbon at which alternative energy sources would become a more viable option. Many alternative energy sources such as Wind and solar would become more economical and so wouldseveral carbon-neutral fuels such as ethanol and synthesisgas. Here's the link.

Waste Management Investments in India

UTI Ventures invested Rs 32 Crore in Waste Management firm PESCO BEAM

VC Circle Reports:

The company is involved in the ‘waste management’ (waste oil recycling and recovery) and alternate energy systems. This is a proprietary deal sourced by UTI Ventures, as in no intermediaries are involved. S N Rajesh, Director, will represent UTI Ventures on the Board of PESCO BEAM.

PESCO BEAM is one of the leading manufacturers of turnkey skid mounted waste recovery and recycling plants, a release said. It has developed technologies in various environmental fields primarily in areas of waste management and alternate fuels. It is involved in the design, engineering, manufacturing and installation of equipment sub systems as well as complete turnkey plants for both waste management and the alternative fuels industry. It has customer across the globe. The company’s order book is worth $200 million.

PESCO BEAM was co-founded by Luke Staengl and A Subramaniam, both veterans in the process equipment industry. The company operates out of offices and manufacturing facilities in Virginia (USA) and Chennai (India).
Raja Kumar, CEO and M.D, UTI Ventures, said PESCO BEAM will be their fifth investment relating to alternative energy. They have invested earlier in Naturol bio energy, Shriram EPC, IND Barath Power and Shree Renuka Sugars.



Here's a link to the Social voices raised in India on waste managment

US Energy Bill Update: Will Renewables Be a Part of the Political Landscape?

[RenewableEnergyAccess.com] After much concern about whether or not key provisions for renewable energy will be a part of this year's energy bill, it appears that tax incentives and a renewable portfolio standard (RPS) are still options on the table, according to industry sources in contact with staffers working on the legislation. Click to read the story.

Here's a little background: U.S. Energy Bill -- Early Christmas Present or Lump of Coal?

Govt to auction spectrum for 3G, Wi-Max services - Hindu

Updates:

BSNL Plans To Roll Out WiMax Services…But Will They Follow Through?

Telecom Roundup: RCom-VAS; Telecom Licences, Tariffs; CDMA Subs; 3G vs 4G


Link to the opriginal post in The HIndu BusinessLine

Also at ContentSutra:India To Auction 3G Spectrum; Introduces Phased Number Portability



Move opens doors for Deutsche Telecom, AT&T and new Indian players



New Delhi, November 12 In yet another blow to the existing GSM operators, the Communication Ministry has decided to auction spectrum for third generation (3G) mobile services and wireless broadband services through technologies such as Wi-Max.

The auction will be open to new companies wanting to foray into the telecom sector as well as established foreign telecom players. The existing operators had wanted the auction for 3G services to be limited to the licence holders.

The Ministry’s decision to open up the bidding to all players is also a move away from the telecom regulator’s recommendations that it be restricted to existing operators. The move gives a chance to the likes of Deutsche Telecom, AT&T and new Indian players such as Unitech and Hindujas, which may not get spectrum in the 2G band given the huge rush, to enter the high growth telecoms market. This means that existing GSM operators such as Bharti Airtel and Vodafone Essar, after being asked to rope in more subscribers for being eligible for more spectrum for 2G services, will now have to fight it out for a piece of 3G spectrum.

As per the guidelines worked out by the Communication Ministry, 30 Mhz of spectrum in 2.1 Ghz band for 3G services is available which can accommodate between 3 and 6 players depending on whether the Government allocates 10 Mhz or 5 Mhz per operator. A decision on this and other modalities such as the date for the auction will be taken shortly by the DoT.

CDMA operators


For CDMA operators such as Tata Teleservices and Reliance Communications, the Government has identified the 800 Mhz band in which 1.25 Mhz will be given to each operator. There will be no auction for the CDMA operators wanting to offer 3G services but they will have to pay an amount that is proportionate to the highest bidder in the auction for GSM players.

This is good news for CDMA players as they are currently using the 800 Mhz band for offering 2G services and, therefore, can start offering low-cost 3G services using the same equipment with minor investments. However, the DoT has not allowed the use of 1900 Mhz band and 450 Mhz band for CDMA players for now, which means that they will have only 1.25 MHz in all to offer 3G services.

In another major decision, the Government has decided to auction spectrum for Wi-Max services in the 2.5 Ghz band. Three operators would be given 10 Mhz each based on an ascending e-auction. The base price would be 25 per cent of the amount quoted by the highest bidder for 3G spectrum.

Besides the initial one time spectrum charge, an additional spectrum charge of 0.5 per cent of the operator’s annual revenues will be levied on both 3G and Wi-Max operators. Mergers will not be allowed during the first 5 years to prevent reselling or trading of spectrum. Both 3G and Wi-Max technologies will enable consumers to access high- speed data and entertainment services such as Interent Protocol TV and Video on Demand on mobile handsets. These technologies also allow the operators to offer better quality of service.


Mobile number portability in phases

Mobile Number Portability, which allows subscribers to change their operator without having to change the phone number, is finally here. The Minister of Communication, Mr A. Raja, has decided to introduce this system in phases, starting with the four metros.

This facility is likely to be available to the mobile subscribers by the fourth quarter of 2008. All the investments required to launch number portability will be made by the mobile operators.

Though the telecom regulator had recommended introduction of this system more than a year ago, the Government was facing resistance from the operators who were concerned about losing subscribers to rivals.

Al Gore's next act: Planet-saving VC

Al Gore's next act: Planet-saving VC
The recovering politician is teaming with a legendary venture capitalist and bigtime moneyman to make over the $6 trillion global energy business. A Fortune exclusive>

Also Kleiner Perkins To Zero In On Solar, Distributed Generation Space In India

What should I send investors? - VentureHacks

Here are the links to some great posts on Venture Hacks:

1. “Summarize the company’s business on the back of a business card.”

2. “PowerPoint plans greatly increase your chance of getting a term sheet, or at least the dignity of a quick no.”

3. “Nothing slows down a VC as much as a comprehensive business plan.”

Meeting with Alex Sloan, Principal, Expansion Capital Partners

I attended an informational Q&A session with Alex Sloan ('98 Johnson School, Cornell University) of Expansion Capital. He is a member of the investment committee and is involved with sourcing, closing and monitoring the firm’s Clean Technology venture investments. Prior to joining Expansion, Alex co-founded and was a partner at Blackwolf Partners, an early stage Cleantech venture capital firm.

Alex talked about the VC industry, in general, and CleanTech VC industry, in particular. Moreover, he spoke about the opportunities in VC industry for fresh MBA graduates and how to enter this industry. Some of his thoughts:

-- Get smart on something
VCs spend 10% of their time interacting with board members, 40% managing hiring issues in their portfolio companies, and rest interacting with the management to manage P&L, devise strategies, monitor sales and marketing efforts. In order to be effective in this industry you should first do these things and then teach some one how to do it (which is what VCs do as advisers to their portfolio companies). So, they look for candidates who have worked inside the industry and bring these skills to the table. If you don't have much experience, join a company, preferably big companies, with training programs, where you would be paid to learn how this industry works. No one will teach you how to analyze business later on.

-- It takes more than passion to get into the VC industry
Being passionate is great, but what value would you add to the team. Develop an understanding of the particular industry and business you are interested in. Take a particular field and narrow down your interest, for example, if you interested in tech, which area of tech? Web 2.0? then research firms that work in this industry. Who did IPO? Who is buying whom? Learn about the latest and future direction of the technologies employed.

-- If you are focused on a particular geographic area, say India:
Think about what would you bring to the VCs in India when you join them. Do you have connections in the US which they can readily use? Do you know latest technologies? Do you have a good understanding of what's happening in Indian industries, i.e. do you know local businesses? If not, take steps to develop them while you are here.

-- It's important to know how to get a product out
Operating experience is essential for a successful career in VC industry. If you have first-hand experience getting the product from idea to market, you would be better able to advise your portfolio companies when they have just 4 months of cash left!

-- Should I join consulting or banking or start-ups after the school?
It all depends on what you intend to do. If your goal is to enter VC field, it's better to work at a venture-backed startup with approx. $1M revenue and ~25 employees. Work as VP marketing, VP sales, or VP technology and gain operating experience. Company valuation is not a rocket science and is just 10% of the work VCs do. Understanding of P&L is important though. Also, advising startups is different from advising big established companies, with revenues greater than 10 million, which consultants particularly advise to.

Matrix Partners Trebles Fund Size To $450 Million - VC Circle

Matrix Partners India, the Mumbai-based venture capital fund, has boosted the size of their first fund to $450 million from the current $150 million. The fund, co–founded last year by former Baazee founder Avnish Bajaj (right) and former WestBridge Capital Partners partner Rishi Navani (left), will however retain its consumer services focus. It will only increase the ticket size to $10-30 million from the current upto $10 million, which means the stage of the companies they will invest will also include growth capital stage companies.

Here's the rest of the story.

New Ventures Says It Helped 3 Green Startups Raise $4 Million - VC Circle

New Ventures India, an organisation that helps cleantech businesses raise venture capital, has facilitated three deals in the space worth Rs 16.49 crore ($4.1 million) in debt as well as equity. New Ventures is a joint initiative of CII-Sohrabji Godrej Green Business Centre and World Resource Institute, Washington DC, supported by USAID. The organisation said in a release it has helped three green entrepreneurs - Conserve HRP, HMX Sumaya and ABT Bio products - raise capital.
In 2006, NVI received a total of 56 Business Plans from green entrepreneurs across the country. After scrutiny, it selected 10 companies, who were invited to present their business plans at the Investor Forum 2006. Out of these, three companies were shortlisted for investments. Here's the rest of the story.

24/7 Learning Raises $4 Million From Capital18, Venture Capital Arm Of Network18 - reports VC Circle

24×7 Learning, a leading Indian elearning implementation company, has received $4 million investment from Capital18, the venture capital and private equity arm of the media group Network18 (earlier known as TV18).

The investment will be used for technology innovation, foray into new markets, expansion in solution offerings, talent acquisition and capacity expansion to further consolidate its position in the rapidly growing market, a release said.

24×7 Learning provides learning solutions for corporates and institutions including higher educational institutes to harness the potential of eLearning for their distance learning programs.

Karthik KS is the CEO of 24×7 Learning. Sarbvir Singh is the Managing Director of Capital18.

Retail-Focused Startup Jasper Gets Angel Funding, reports VC Circle

Jasper, a Delhi-based early stage startup focused on retail sector, has secured angel funding from a group of US investors. The startup is in stealth mode. Jasper founder and CEO Kunal Bahl said that the company will help increase sales in a retail mall by incentivising the purchase. Retail outlets will be their partners, while the shoppers are the end customers of Jasper.

“The problem in the booming organised retail sector in India is high footfall-low conversion. We are adopting an innovative strategy to help solve this problem,” says Bahl, an engineering graduate of University of Pennsylvania, and an MBA from Wharton. Bahl has earlier worked with Microsoft’s emerging markets group.

The angel investors are based in the US, and have previously backed companies such as Nasdaq-listed House Values, Yapta and Cleverset. The funds will be utilised for building an operations engine, and undertaking tactical marketing initiatives, a release said.

Interesting article on contentSutra - Andy Grove: Rich, Famous, Smart and Wrong About Drugmakers

ContentSutra has an interesting article where Derek Lowe analyzes Andy Grove's comparision between Semiconductor and drug industry in the newsweek. Here's the link to the post.

Tech I-Bank Chesapeake Sets Up India Office - reports VC Circle

VC Circle reported that the Chesapeake Group Inc., a New York-headquartered boutique investment bank focusing on mid-market companies in the IT/BPO verticals, has announced its entry into India with an office in Bangalore. The Chesapeake Group specialises primarily in buy-side representation in merger & acquisition deals and focuses on strategic deals. Siddhartha Padam, till recently a Principal in the M&A team at Infosys, will move to head Chesapeake’s Indian presence as its Principal.

Founded in 1987, the New York headquartered Chesapeake Group has affiliates in London and Paris. The Chesapeake Group claimed it has helped a number of US and Europe-based clients establish Indian operations. Its current and past clients include Covansys, Zensar Technologies, Valtech, Tech Team, Sento Corporation, Softtek, Answerthink and eIndia Venture Fund among others.

Recently another New York investment bank Jefferies had announced it India entry with a representative office in New Delhi.

Reginald Fils-Aime Cornell'83, President/COO, Nintendo of America, Inc. talks about Nintendo at Cornell

I attended a talk by Reginald Fils-Aime popularly know as Reginator today at Cornell.
Among many things, he talked about the evolution of gameing products at Nintendo, with products such as Nintendogs, Mariocart DS, Wii remote, wii sports, and wii channel. Nintendo executed superbly with their marketing message centering around "Bringing gaming back to the masses" and attracting new customers,especially females to play video games, thus expanding the customer pie.

Towards the end, he talked about what, in his opinion, it takes to be successful. He said in order to be successful, people should use the duality concept - showing two behaviors at the same time:

1. You should take personal initiatives or show drive, but, at the same time, be an effective team member.
2. Do what you are passionate about, but also develop an ability to work outside of what you are passionate about. You may not always get to work on things you are passionate about.
3.Be curious, but also take stand sometimes.
4. Be strategic and look out for things you can execute with excellence, but don't be afraid of doing what has not been done before.


Here's a quick introduction of Reginald from wikipedia

On a seperate note, contentSutra has a nice article on Indian gaming industry: Casual Gaming Might Not Scale; Advertising Portals On TV Doesn’t Help

DFJ's India foray gains momentum

Mint reported that the Menlo Park, California-based venture capital (VC) firm Draper Fisher Jurvetson (DFJ) has closed two deals here worth $4 million (Rs15.72 crore) in the mobile and Internet sectors, currently the flavour with VC investors in India.

Deals struck by DFJ in India:
Company/ Sector /Coinvestor (year)

1. Reva/ Electric car
Global Environment Fund (2006)

2. Seventymm (2nd round)/ Online DVD rental
Matrix leading (2007)

3. LiveMedia/ Digital signage
Angels (2007)

4. Undisclosed/ SMS advertising platform
NEA Indo US (2007)

5. Undisclosed/ IT-enabled retail for photography market
Footprint Ventures (2007)

6. Seventymm (1st round)/ Online DVD rental
DFJ leading (2005)

7. Vegayan*/ Communication infrastructure
Not applicable (2006)

8. mChek/ Mobile payments/ Angels (2007)**
Komli Media/ Digital advertising/ Helion Venture Partners (2007)**

*Business plan competition winner Source: Company data
**Investment undisclosed