Philanthropy by Billionaires Page 7 Can the likes of Bill Gates & Warren Buffett save the world?
Bitcoin Genesis Page 3
Zuckerberg’s verse Page 15
FROM THE
EDITOR’S DESK S U PR E E T G U PTA Chief Editor
Something that the founders of E-Cell IIT Bombay envisioned is now starting to materialize into reality - the word entrepreneur has become a household term rather than being a fancy word used by corporate bigshots. The past year has been a golden one for Indian startups - with a lot of growth in terms of investment as well as the interest of the general public in availing their services. About 45 new unicorns were formed, doubling the number of unicorns in the country and opening up new avenues for the development of the ecosystem. Many startups also went public on stock exchanges with high valuations further deepening the interest of investors in the ecosystem. With all of this, the enthusiasm for entrepreneurship in colleges across India is also brewing high. A lot of students are now focusing on starting up rather than going for job placements. Even among those who are opting for placements, a number of students are applying to work for growth-stage startups. This enthusiasm is a very positive sign for the coming future of Indian entrepreneurship ecosystem and presents a very positive outlook for the way forward. In this edition of Enspace, we provide comprehensive information on entrepreneurship, business, and other trending topics like cryptocurrency & NFTs. Here we aim to inspire the readers to start their own venture and join the burgeoning Indian startup ecosystem. I hope you enjoy reading this edition of Enspace and start to build something of your own that is able to change the way we see the world!
C O N T E N T S
IPO FRENZY
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BITCOIN GENESIS
NFTs RACING TO TAKE MARKET SHARE IN THE DIGITAL WORLD
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CAN THE MODERN PHILANTHROPISTS SAVE THE WORLD?
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WHY ARE CELEBS SUDDENLY INVESTING IN STARTUPS, FOMO OR GENUINE INTEREST
TRUMP’S NEW VENTURE : TRUTH SOCIAL
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STARTUP BUBBLE
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ZUCKERBERG’S METAVERSE
THE NEXT
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WHY ARE THE LIKES OF BEZOS AND DORSEY WALKING AWAY FROM THE COMPANY THEY BUILT FROM SCRATCH?
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IPO FRENZY
-SARTHAK JAIN
Gone are those days when the typical Indian Dads used to say, "Beta Stock Market Ek Jua hai." There has been a storm in the Indian Markets for the last 1.5 years. The Initial Public Offerings (IPOs) have significantly impacted the markets. 2021 was just remarkable for start-ups and companies going public. As many as 65 companies went public in 2021, a 64% growth Year-on-Year. Forty-five companies gave positive returns, while the 20 companies gave negative returns. Around 15 companies gave over 100% returns. 0
The Indian primary market was buzzing throughout the year. Sixty-five companies collectively raised ₹1,18,704 crore (USD 15.4 billion) through IPOs during 2021. This is the highest amount of money raised through IPOs in a calendar year. The bumper listing of Nykaa, Zomato, Paras Defence, Laxmi Organic Industries, etc., have gained significant returns. But why has going public become an excellent way to raise money?
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With the advent of nationwide lockdown in March 2020, the Indian economy was forced to shut down, and people were asked to work remotely. Just after the announcement of lockdown, there was a strong selling in the market, which led to indices falling to new lows. However, as lockdown became a lifestyle and economic activities slowly revived, people started investing because they had ample money in their bank accounts. How, you ask? . Now, things will start falling into place. The following are the observations that Indian Markets have had seen since March 2021-
People started working remotely, and salaries were credited to their accounts. However, the lifestyle of the people, in general, has remained low-key because of Covid restrictions existing at numerous places. Mall, theatres, restaurants were closed and people could not spend as they did in the pre-covid world. More savings meant investing.
Fixed Deposits (FD) were considered a safe investment in pre covid days. However, with the advent of covid, the interest rates on fixed deposits have been around 3.5%-4% (After-tax), which is lower than the current inflation rate of 6%. This implies that the money kept in the banks is shrinking in terms of value. People understood this and hence started investing in equities which gave higher returns. Then there has been a subtle rise in the demand for goods and hence the rise in prices for many goods and services. This is because of the fact that RBI has pumped liquid money (simply the free-floating money) into the economy while India was in the lethal 2nd Wave. While RBI took this move to keep the economy robust, the liquid cash is finding its way to the 1 Stock Markets.
Then there is this story about Foreign Institutional Investors (FII). Overseas investors are taking notice, with net inflows amounting to about $7 billion so far this year, the highest among emerging markets in Asia. And undoubtedly, the players in the stock market have risen to an unprecedented level as 14 million new Demat accounts were opened in the fiscal year through March 2021. Hence, financial literacy is paving the way in India. RBI has kept interest rates on loans at a record low. Why, you ask?
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"The RBI's decision to keep interest rates lower is helping companies reduce debt and 5 loan-servicing costs" 6 - Chakri Lokapriya 7
ITCOIN GENESIS Satoshi Nakamoto
- SANIKA PADEGAONKAR
In the past decade, cryptocurrencies have grown from digital novelties to trillion-dollar technologies with the potential to disrupt the global financial system. Bitcoin and hundreds of other cryptocurrencies are increasingly held as investments, and they are used to buy everything from software to real estate to illegal drugs. This boom in the fame and value of cryptocurrencies started with the creation of Bitcoin in 2009. Before diving into the history of Bitcoin, let’s pause to ask a very important question-What exactly is Bitcoin? Bitcoin is the world’s first decentralized cryptocurrency – a type of digital asset thatpublicuses key cryptography to record, sign and send transactions over the Bitcoin blockchain – all done without the oversight of a central authority. Each bitcoin is made up of 100 million satoshis (the smallest units of bitcoin), making individual bitcoin divisible up to eight decimalplaces. That means anyone can purchase a fraction of a bitcoin withas little as one U.S. dollar. Bitcoin’s price is renowned for being highly 2
volatile but despite that, it has become the top-performing asset of any class (including stocks, com-modities, and bonds) over the past decade – climbing a staggering 9,000,000% between 2010 and 2020. Since the creation of the Bitcoin blockchain, blockchain evolved into a separate concept, and thousands of blockchains have been created using similar cryptographic techniques. The innovation with blockchain is that it guarantees the fidelity and security of data, while generating trust without the need for a third party. As the name suggests, a blockchain is a chain of records, called blocks. The blocks are linked together using cryptography and each block contains a cryptographic hash about the previous block, a timestamp, and transaction data. As each block contains information about the previous block, the blocks are linked together to form a chain. In Bitcoin's case, the information on the blockchain is mostly transactions. Person A sent X bitcoins to person B, who sent Y bitcoins to person C, etc. By tallying
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these transactions up, everyone knows where individual users stand. It's important to note that these transactions do not necessarily need to take place between humans. Blockchain's versatility has caught the eye of governments and private corporations. Some analysts believe that blockchain technology will ultimately be the most impactful aspect of the cryptocurrency craze.
2008 was a year of catastrophic economic turmoil that influenced the entire world for several years, if not even today. Surprisingly, 2008 also marks the birth year of Bitcoin. In August 2008, someone registered bitcoin.org as a domain. On Halloween that year, a paper went up describing a decentralized system for electronic transactions that didn’t rely on trust. Titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System,’ the original Bitcoin whitepaper was published on October 31, 2008 by an individual who calls himself Satoshi Nakamoto. In the paper, Satoshi Nakamoto showcased blockchain networks and explained how they could massively improve the financial system, especially on the internet. For most of its life, bitcoin was driven by three main 3
overlapping communities: the small community of original investors and true believers, the blockchain technology aficionados, and the speculators who were just there to make some money. Lately, another community has emerged: old fashioned stodgy finance types. As the digital currency took off, the system that was supposed to work without trust developed trust issues. And as bitcoin’s price has risen, it has become another investment vehicle for the financial system it was meant to replace. 10 years later, bitcoin is part of the system it was meant to overthrow.
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NFTs Racing to take Market Share in the -HARSHINI Digital World SREERAM & PRIYANSH GOPAWAT NFTs have taken over the realms of art and gaming. Whether you think of them as a passing fad or a fantastic new opportunity for digital artists, they continue to sell for millions of dollars, and in the process make headlines. Ever thought of owning property in the virtual-reality spaces or copyrighting your digital art? Then read on, for NFTs enable exactly this, and much more. NFT stands for a non fungible token, a unique and non interchangeable unit of data kept on a digital ledger that uses blockchain technology to establish its proof of ownership. While cryptocurrencies and blockchains have picked up steam, NFTs are still unknown to many. No, NFTs do not come under the helm of cryptocurrency. Physical and digital currencies are ‘fungible’, meaning they can be exchanged for one another. An NFT, however, is unique and cannot be traded like-for-like, i.e., is ‘non-fungible’. Though they are typically held on 4
Ethereum, they are compatible with other blockchain technologies as well. NFTs have recently taken the internet by storm, and have received an overwhelming response from famous investors, celebrities, and business tycoons; creating a new market playground for the affluent. People have been making millions just by flipping NFTs. ‘Bored Apes’ and ‘Cryptopunks’ are some of the most popular NFT projects and are sold at sky-rocketing rates. Earlier in 2021, Vignesh Sundareshan, an experienced investor in cryptocurrencies, also known as MetaKovan, spent $69.3 million on an NFT by the artist Beeple, and was prepared to bid even higher, owing to what he says is a piece of history that will herald a new era in digital art and democratic trading. According to estimates, NFT sales have now topped $500 million. NFTs have uses outside of the world of digital art and their trading as well. Since each NFT contains a unique code, it can be used in identification, patents, certification and
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documentation as well, such as that of degrees, certificates, medical records, birth and death certificates, and licenses. It is used to track the supply chain as well, in authentication, verification and quality-checks. NFTs are also used in the trade of digital real estate, which is gaining traction in the virtual world of gaming. Future applications aim to increase efficiency in tracking ownership of physical real-estate as well. Luxury goods, sports tickets, and other collectables are also being tokenized; for example: ‘Moments’, sold on the NBA Top Shot platform. NFTs possess the scope to verify the legitimacy and ownership of these collectables, which is central to crypto-art and other entertainment applications, and hence by authentication, they help in reducing counterfeiting and fraud in the digital market space. A common question that arises is this: If NFTs are purely digital and can be saved as screenshots, what is their value attributed to? While this is true from a utilitarian perspective, the monetary value of an NFT is accredited to its ownership and scarcity, its utility in its gaming ecosystem, and the demand for it, which is why NFTs are generally auctioned. Despite its abrupt rise to popularity, like any commodity, NFTs also have their disadvantages, such as the sale of mediocre 5
NFTs in inflated values, unsolicited publicity and spamming over social media platforms, and a increase in hype by market manipulation. Moreover, there are rising concerns regarding the environmental impact, since the development of NFTs and other blockchain-supported assets demand massive computational power which require tremendous energy consumption. Apart from that, since there are no economic or technical indices to quantise the worth of an NFT, and the prices as solely determined by what each investor is willing to pay, NFTs are receiving as much criticism as praise from the art community, because oftentimes, the profits don’t reach the artists.
Due to these reasons, like many other investment playgrounds, the NFT market is volatile and dynamic in nature. However, as shown by the above graph, which shows the growth of NFT market capitalization from 2017-2021, NFTs are still rising in popularity and are being highly regarded in the digital world.
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ARE CELEBRITIES THE NEW ANGELS OF STARTUP ECOSYSTEM? - AASHISH Unicorns, Unicorns and Unicorns! The word is so simple yet so effective. Year 2021 has been a remarkable year with respect to fundings of startups. With ample liquidity, startups have been able to raise money with no hassle. So much so that actors are turning into investors these days. Remember Wrogn? A company endorsed by Virat Kohli. Well, it's not just publicity. Virat Kohli owns a significant stake in Wrogn. “Kuch toh Badlega” was the tagline for all the Coinswitch Kuber advertisements by Ranveer Singh. Amitabh Bachhan recently sold an NFT collection worth $66,990. All this
pointed in one direction. Celebrities are promoting investments because that is the need of the hour. Considering the glamor and the reach which is associated with Bollywood celebrities, it is no surprise that startups have turned to them for endorsements and investments. Over the last few years, film industry celebrities such as Amitabh Bachchan, Aamir Khan, Salman Khan, Madhuri Dixit, Shilpa Shetty, John Abraham, Deepika Padukone, Ayushmann Khurrana, Shahid Kapoor and Jacqueline Fernandez have invested heavily in Indian startups. 10
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KYC - KNOW YOUR CELL 23 years since its inception, E-Cell IIT Bombay has come a long way in unlocking India’s latent inventive potential with the motto of promoting entrepreneurship inside as well as beyond the walls of IITB campus. We usually meet up in a room 0f 18x18x14 room, the E-Cell office’ which is inside the Students’ Activity Center (SAC), to brainstorm about how we can make the entrepreneurial ecosystem better. Committing our efforts to enable doers to efficiently traverse their road to an enterprise, equipping them with the necessary tools at every step of their journey, and creating a greater number of such entrepreneurs and enterprises, we at the Entrepreneurship Cell, welcome you! Below mentioned are some of the major initiatives of E-Cell IIT Bombay:
Eureka!
It is Asia’s largest business model competition accredited independtly by CNN and Thomson Reuters. Instated to foster the spirit the spirit of entrepreneurship and business acumen among people around the world, Eureka! fast-tracks the journey from an innovative idea to commercial success. Eureka! has grown to receive 12,500+ entries and has prizes worth INR 8 million. Some of the successful startups that have come from Eureka! include Zostel, Leaf Wearables and SocialCops.
E-Summit
The annual flagship event of E-Cell, is a two-day summit with a vision of creating a synergic environment encom passing visionary students, entrepreneurs, investors and other corporates. Some of the speakers include names like Vijay Shekhar Sharma (CEO, PayTM), Anupam Mittal (Founder, Shaadi.com), Aman Gupta (Co-Founder, boAt), Kunal Shah (Founder, CRED), Sam Pitroda (Father of Indian Telecom) and many more awe inspiring personalities.
NEC
National Entrepreneurship Challenge is first of its kind pan-India competition organized by The Entrepreneurship Cell, lIT Bombay. Through this, we aim to help establish E-Cells all across the country, which in turn will help develop the startup ecosystem in our country.
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EnB Club
Entrepreneurship and Business Club is the best place to your entrepreneurial journey. It conducts various types of events such as speaker sessions by eminent persona lities, workshops, competitions, and mentoring events. In addition it conducts ‘Startup Bootcamp’ which is a platform to convert your business into a startup
FInCoF
Freelancers, Internship and Co-Founders Platform that’s what it stands for. It is a unique initiative by E-Cell IIT Bombay which helps you connect with people who can bring your idea alive. FInCoF is a portal where we can connect startups to the students who are interested in the kind of work they have to offer.
Eureka! Junior
To capture the wild imagination and innovative approach of young minds and to turn them into successful ventures is the goal of this initiative. It aims to promote knowledge of entrepreneurship and foster the spirit of venture creation as well
Startup Service Platform (SSP) SSP aims to provide some of the most necessary services availed by startups at highly concessional rates compared to the market rates. Here in this platform, the vendors are reliable and at the same time have subsidized rates only for IITB students, staff and alumni startups
EnSpace EnSpace is our official blog, bi-annual magazine and a one-stop learning platform for all the students who have an interest in knowing about entrepreneurship. It has videos, blogs, dictionary, reference material, etc. to lighten the students about entrepreneurship
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SOME IITB STARTUPS
Bhavish Aggarwal OLA CABS
Saurabh Kumar GROFERS
Prabhkiran & Siddharth
Zishaan & Hemanth TOPPR
Anshul Gupta BOX8
Chirag & Sahil
Vikram Chopra
Nitin Saluja
CARS 24
CHAAYOS
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BEWAKOOF.COM
THE MINIMALIST
Devendra Rane Sumit Gupta
COVERFOX
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COINDCX
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EDITORIAL TEAM Nikunj Shah
Bhargav Chaudhari
Sahil P Nair
Harshini Sreeram
Sarthak Jain
Priyansh Gopawat
Bhawna Bharti
Sanika Padegaonkar
Pal Aggarwal
Shubham Ingale
Sri Laxmi
Aashish
Mohit
An
initiative
Visit us at ecell.in/enspace