One thunderstruck day, Master Yoda was right to Luke Skywalker about Venture Investing. (Star Wars: Episode VIII — The Last Jedi.)
Yoda once told Luke Skywalker in Star Wars “We are what they grow beyond, that’s the true burden of all masters”. And no wonder, Master Yoda’s wisdom was unbeatable. It holds true beyond living-living-things.
While the thunderstrike that burned the last of the Jedi scriptures was in control of Master Yoda, mastering the real thunderstrike is way beyond human wisdom.
Weather forecasting might not interest many until it’s a match day or a family day out. Weather forecasting has been responsible for saving 100 Mn. lives every year. Thus being a crucial contributor to our survival.
Weather forecasts began back in 1860s and since have been indicating early warnings to calamities.
However, these weather forecasts run on very poor economics (a reason why we haven’t seen disruption on the 1950s tech yet), setting up a forecasting center requires millions of dollars worth:
- satellites;
- supercomputers, &
- human resources
With all these resources, we still stand at just 80% accuracy.
One of the weather forecasting pioneers established ~ 50 years ago, today, stands beaten by a Machine Learning Algorithm.
The algorithm outperformed the behemoth in 90% of the scenarios.
This AI algorithm can run on a cloud computer and can give it’s weather predictions on fraction of the resources and infrastructure, maybe on an entry level laptop….
Before we question the existence of the giants in the weather industry, it is important to note that the AI algorithm had been trained on the years of data collected by the large weather body.
Takeaway:
The above case demonstrates the cycle of technology. It broadly answers two questions.
Why are startups any good, if there already exist Industry giants in the space?
Technology businesses operate in a close knitted cycle, while one lays down the groundwork, the next generations builds on it, making it more efficient and utile. Just like the examples given above, Startups — the new-age businesses aim to deliver disruption built on the strong framework of veteran businesses.
How can business thrive in the long run?
The answer for a business to remain pertinent in the long run lies in innovation. Companies like Zoho have learned the trick, a Chennai based technology company that started in 1996 has been growing its revenue ~ 25–30% every year to more than Rs. 7000 Cr. as last posted. This made possible through continuous innovation to improve the users experience. Bigin by Zoho being a recent launch example whereby the company identified the need of ~ 6.5 Cr. MSMEs in India offer an affordable CRM solution.
Believers, Capitalizers:
Auxano is an early stage venture capital fund who believes to empower and join the growth journey of these “next generation — technology led — consumer focussed businesses” forming an emerging megatrend.
A recent example of the company in the Hardware segment, whereby the company developed a powerful alternative to existing laptops available at an affordable price ( ⅓ price of a regular laptop).
This was not achieved overnight . Multiple pivots over a period of time , not to forget the resilience and hustle of the promoters.
If things don’t happen — then make things happen. Meet — seek counsel — ideate …. and most importantly- open to hearing and coaching . This company founder exhibited all of this.
And the result is there to be seen.
Startup investing is never a straight road .
Come and be a part , only if you are ready for high — low and high .
Author:
Kanuj Jadwani
Moreover, please note this in no way is an investment advice. You are responsible for your own actions as was Anakin Skywalker in the movie.
