Brief on Startup Funding.

If we humans don’t have anything to give or to serve humanity with, the least and powerful we can do is to spread authentic knowledge among others. This article may be not 100% correct but still is reliable to understand basic in brief.

So let’s start 🙂

When we startup, we need funds. Two ways are there. Either Loan or fundraising. Fundraising has also a different variant. First, skip loan and let’s talk about fundraising. With fundraising, we will only discuss Investors fund.

Now it has two types.

A) Angel Investor.

B) Venture Capitalist.

Who are angel investors?

Angel investors are big businessmen, CEO’s of big companies. They give fund to our startups. With the fund, they also provide know-how of our business, loopholes in our business model, improvisation of your business model and along with investments the bonus part.

But VC’s are different people. They will give investment but they won’t provide the know-how of your business. VC in itself is a company you can say which takes money from big businessmen and invest in your startup. So if your startup makes a profit, they also grow with profit without any mental pressure. We can take this as an example, as like share market brokers. ( sorry, kinda low example I found to compare).

Now, you go to investors, tell them about your company valuation and ask for a fund. For ex. Your company valuation is Rs. 10cr. And I want to give my 10% stake to you. Means you are taking Rs.10cr.

After this, within few days you get two options :

  1. VC
  2. Angel Investor

VC say they will give Rs. 40 lacs on 8cr valuation.

Angel says they will give Rs. 60 lacs for 6cr valuation.

So, if we see according to the offers, VC’s offer is far better than Angel. But we know that Angel helps us in know-how and they also use their networks. They will help us in making big plays of the market and VC is giving good money. Now, what we are doing, we are taking both the offers and will be negotiating with Angel, that my company’s valuation is 8cr. Now we get 1cr and our 10% stake gets diluted. Now we only have 90% stake.

With this Rs. 1cr we are doing business and spent all without making a profit. Here comes the 2nd round of investment, and we go to the investors and tell the valuation 10 times higher. Now our pitch will be for rs.100 cr valuation. Again we dilute 10% for 10cr. And we have to dilute it from our own personal remaining stake. Because before investing the investor’s sign an agreement known as SHAREHOLDER AGREEMENT.

In this agreement, there is a clause which states that if you are investing in a company your share will not get diluted. So, if we are taking 2nd round of investment, we have to dilute our own personal stake. Now, our business grows a little and there is a need to expand to different states of the country, and for this, we are going for the 3rd round of investment. In this round we will say our company valuation is Rs.500 Cr. (any figure but high value) From now, our balance sheet starts showing the profit, this is unlike last two investment, where we took investment but unable to make the profit. As now our company started making the profit, we took the smart way of the buyout, where we show the value of our company as Rs. 2000 Cr. and we sell all our remaining stake in our negotiable amount. Big companies agree with this move but they too are quite clever. They know as we are the best person who knows every angle of this business and this industry as you will leave then may the business will fall again. So they give a certain amount of money in the form of shares and make you associated with the company.


Even if not this option, there is another medium too, we know as IPO. where you list your company shares in stock market and your investors are general public 🙂

Hope I am able to out some light on this, not the best one I know.

Keep sharing, keep smiling 🙂


Let’s talk about TRP

Hello friends. First of all, before writing, let me tell, I was extremely busy in my startup and it was quite hard for me to pull extra minutes for blogging. Sowie 😦

I have picked one of the most talkable term of last and this century, to check how many of us actually know what science is there, behind every art.
Definition. What is TRP? It is Television Rating Point.
The rating is calculated and for that, the tv channels are ranked. In India, it is been calculated by BARC (Broadcast Audience Research Council)
They calculate every week and publish the data on their official website on Thursday of every week. Their official website is
They calculate the number of the impression on an average of 60secs.
Now, many of us may get curious how BARC calculate TRP ?
First of all, they never calculate on every household which are watching tv channels. Hehehe, this would be tougher than rocket science in India.
They select some households and install devices and through that, they make an average of those households. They have their own methodology to select households. A research study used to gather specific details of households and individuals to be used together with Census data in the preparation of universe estimates for TV audience characteristics – geographic, demographic, socio-economic status, etc. The Establishment Survey also serves as a randomly selected pool of TV-owning households for use in the ongoing selection and recruitment of panel household. Now with this methodology, they get to understand which household is capable and to whom to select, with this the team goes and install the device.


The Toys

(P.C – Ad Age)

Now, what does this device do? Before that let me tell you, that BARC has almost tied-up with 90% channels. And with these channels from wherever they come to our house through any set-top boxes or dish tv kinda toy, they put an audio watermark. The sound which is flowing through that channel, in between that they out watermarks, which human ears cannot listen ( some frequency game champ ) but the device is capable to catch that. Now, again I don’t know whether they are only using for the calculation of TRP or any other purposes. With this watermark, they are easily able to track which channel is on.
The question arises here if someone opens the channel for the whole night and slept, or any other way then the data will be damaged. Yes, this is possible, and for that reason, they never collect data from every household. They collect with some of them for some time and other for another time. The data which get collected is too much, they get into the process of data mining and partly form all this, it is an approx of data.
BAR-O-meter is the device which they install. According to BARC, it is placed in the 3lacs home and they also monitor if it gets damaged or hampered.
An example, hehe. If being an entrepreneurial mindset, I make a deal with any channel and I agreed that I will make their channel run whole night and will raise the TRP. But they put lots of effort to save this when they collect all the data, they make assumptions too. Suppose, if it is evening and in that household kids are present, then chances are it will a kid channel, cartoon network sort of. And if the same channel is running in the late night or say post 9 pm, then there is definitely a loophole. This is one of the kinds of example, they have their own set of protocols, and keeping eye on these protocols, they check activity related with this on households and if they find any household breaching they penalize and remove the device. After all, it is a responsible body for advertisements data. A company shell out 30-40k for a sec to show on any high TRP channel.
The process is full of bugs. Though every technical thing has. According to a report, when they started this, it was showing 50% people watching English channels in villages. So many a times data goes wrong, but yes approximately they show and on the basis of this data, advertisers show their advertisement.
Next time, when you removing any channel in between any advertisement, just understand the agony of advertisers loss on your one sec.

I hope I kept it brief and understandable.

Keep smiling, Keep sharing 🙂


The lazy student’s guide to taking notes in class !

I consider myself a very lazy person, in all my form and aura. Yes everybody can laugh. I only find inspiration by the quote of Bill Gates,

Choose a Lazy Person To Do a Hard Job Because That Person Will Find an Easy Way To Do It

May be I was very smart too in class, coz I used too carry one copy for all the 6academic stuffs. haha6

So, I found this on web, and thought to share with everyone, through this lazy blog of mine, where I write with a gap of decades. Thanks for the people who follow me, they really tolerate this. LOL !

Enjoy with info-graphics.

This infographic by #WBSA in conjunction with Urbanest will help you take notes like a pro:

2_ lazy student’s guide to taking notes

Keep Smiling, Keep Following 🙂