Why do Startups fail?more than 90%

talks Kharagpur 2015  Bikash Barai

 more than 90% of startups die they fail    you know that the founders they have a great idea they start there with a lot of passion with a lot of energy they really really work hard yet 90% of the companies die why is it so there are a couple of main reasons couple of big reasons one of them is execution and I'm not going to talk about that today,

• Idea Early stage

 I'm going to talk about the other one and that's the primary cause of death of startups or ideas in the very early stage execution is the one which becomes the reason for death in the next phase so before I tell you that reason for which most of the startups die in the very early stage let me tell you a story of an idea ten years back I was studying in this campus and I decided not to go for a job but to pursue my idea of a startup and my family had absolutely no idea about the business.

• Story

 so when I went and told my mom that I'm going to start a company she was a little bit worried but as always she supported but then after a month or so she called me up and she sounded little bit disturbed and she told me because you have to get a job just go and sit for the placement get the job but it's not necessary that you have to join and I thought what's happening why is it so and after a while, I realized that one of my uncle's told my mom that I heard because started a computer shop so my mom was furious is this the reason,

Why I sent you to I idea to start a computer shop you are spoiling my reputation so anyway I let things get cool down for a while my mom got cool down and I never went for the campus placement.

 I started off with the idea which I had and my co-founder was a great hacker also from the same campus he used to know people by their IP address and not by their names so it's like we meet somebody at the canteen and after some time he realizes oh that was 10.5 so we once went to an organization to conduct an Ethical hacking exercise so ethical hacking exercises something where the organization's invite experts to come down and test how secure is their system are there any flaws how could they be broken and how they could be fixed so we went to this organization and we broke almost every part of the network we got the CEOs password we got into the finance system.

we got into the HR system back then hacking was very easy and while we were presenting that report to their management we got an idea we thought maybe we could have tried a different way to break into so at the end of the presentation we went and told them that can we try once more and they said ok go ahead and try any way you guys have broken so we went and tried and that thing worked and that was like a moment of truth for us and we asked ourselves that when we as ethical hackers or penetration testers when we try to break into a system and find out the flaws once we get success do,

We try as hard as we were trying before to find the second way of breaking into and the third and the tenth and the hundred the answer is obviously no because we will lose the interest after some time as human beings so we realized that the ethical hacking model doesn't really solve the purpose because for the guy who has to secure he or she has to block all the possibilities of attacks but the guy who is going to break has to find only one so we thought what could we do and just some time back I did my course on artificial intelligence so we thought can we do something to figure out the permutations and combinations of attack paths.

 so I started using planning algorithms and started working on this problem and what we figured out a little bit later was that this was a very very hard problem in computer science the space complexity is very high with conventional computers you cannot solve this in a reasonable time frame but we figured out certain ways to solve that and once we did that we started getting a lot of our words from Intel University of California Berkeley red herring etcetera so we were super excited but then after a while,

 we had our second moment of truth and what we realized was that we were getting more Awards than business so we were thinking what's happening are these people crazy they are giving us so many awards but nobody is buying
 this so we start with started thinking about what the real problem is and what we figured out was that organizations even though they love this idea they did not have people to run these tools so we thought then, 

How do you solve this and then we thought let's host this online and we can run this tool for them let's offer it as a service and then one of the guys in our company he came up and told me because you know what there is something called SAS software as a service and I went and looked ok that sounds cool let's call our success and that became something interesting because we had a very interesting technology we used to call like AI-based technology to simulate a human hacker then we had a lot of awards. 

Now all of a sudden we got a business-friendly tag called SAS and we got lucky we raised four million dollar venture capital fund and that was a great moment we were sharing this with you four million dollars on the other side there was a long silence and then she said why did somebody give you so what imagine there won't be something wrong and she told me here so in the very air bladder maybe his form is completely different reasons,

 After I started getting some moderate success we started getting some customers but then what we realized was that we were solving common network security and we realized that eventually network penetration testing is going to become less and less important what's becoming more important is the application security all these online websites e-commerce portal banking applications and you submit we problem so we then decided to shift from this network security testing to application security testing and that was divided move for us and that actually missed us in terms of scaling we went ahead and gotten more than 500 enterprise customers.

 we something that month back at work by a company so overall package just to kind of and I had success now if we look at this journey is this general assault for an idea obviously would look like right it's like a search for an idea we start with an idea made it to Phase two of an idea move to Phase three and with into Phase three that's when we got some taxes so initially I also it took me like five or six years to realize that it was learning of sorts for an idea because, 


I'm here it was a search party problem and this had been one of the very big realizations which I had in my life in our entire education system or even in our society without people to solve great problems right we don't like people concept and points or Heinie's problem without the following problem that's what we are taught at various Institute's but what we do learn is how to find problems and finding problems is a different kind of art it's a different kind of skills and one needs to learn that unfortunately,

 Our society or education system does not want problem finding that much is a general method right we all want to be a human and we all watch it here but in the industrial era what we are solved is the ability to make it ranger you needn't regulate without it will be the length you don't have a deal so next time when you hit a great idea if you think twice is this idea of a breakdown our people are really worried about that problem or is it you who is excited about the problem and if you might have that great column you can see in rigor,

I a great problem so if you want to be a hero you have to find your villain and that's very important there is no great idea without a great power so we should stop looking for ideas and start to be our great problems because it's not the idea but the problem that matters.

jack ma motivation positive and inspirational quotes

jack ma motivation inspiration 

My advice to the young people 25 years old Make enough mistakes Don't worry You fall You stand up You fall, You stand up Enjoy it, I mean, if you have 25 years old enjoy the show,

just enjoy the show From 30 to 40 years old You have to think very clearly Were you working for yourself? if you really want to be entrepreneur So 40 to 50 think about how can focus on things that you are good at But when you have 50 to 60 years old work for the young people because young people can do it better than you So rely on them, invest on them making sure they're good

jack ma story

So 25 years old Don't worry Any mistake is an income Is a wonderful revenue for you In the future it's not about the competition of knowledge It's the competition of creativity It's a competition of imagination It's a competition of learning It's a competition of independent thinking If you think like a machine the problem will come In the past 20 years will make people like a machine In the next 20 years machine will look like a people So in the future, it's not knowledge-driven It's the wisdom driven It's the experience-driven In the past is the knowledge-driven and it's the manufacturing-driven And in the future is the creativity-driven

 I think next 30 years the world is going to change a lot The new technology is going to change every aspect of the world So this is what we think The world should be focusing on not only the IQ, EQ but also focus on LQ the Quotient of Love Because only when you cared the others only when you care the others that succeed and more successful than you are You have the chance 10 years ago the internet was so good when nobody believed the internet was so good Now internet is so tough because all the smart people go to Internet So you should go to the off ground I fail for... Funny things that I fail, a key primary school test two times and I fail like three times for the middle school, to go middle schools No I tried... There is an examination that young people If you want to go to University you have to take the examinations So I fail the three times When I graduated from university, and before I... for three years I tried and I failed in the universities.

 So I applied for jobs 30 times, got rejected. I went for the police They say: "No, you're not good" I went, even the KFC, when KFC came to China, come to our city 24 people went for the job 23 people were accepted I was the only guy And we went for the police, 5 people, 4 of them accepted.

 I was the only guy they're not receiving. So to me, being turned down, rejected. Oh, by the way, I told you that I applied for Harvard 10 times, rejected. I learned so much about Hollywood movies especially Forrest Gump -You love Forrest Gump -I love Forrest Gump -Why do you like him? Simple Never give up People think's he's dumb but he knows what he's doing And I was very depressed the day... the year 2002 or 2003 in the United States I was very depressed when I could not define out a way for the internet and then I watch the movie in my friend's home Forrest Gump when I see him I think This a guy we should learn from Belief what you're doing Love it Whether people like it or don't like it, be simple and like the word:

 "Life is like a box of chocolate, you never know what you can get", right? I never know I would be here talking to you I never know But today I made it I told to my people in my apartment 18, 15 years ago Guys we have to work hard Not for ourselves If we can be successful 80% of the young people in China can be successful We don't have a rich father A powerful uncle We don't have one dollar from bank A someone from government Just works as a team I worry about it today young people A lot of young people lose hope Lose vision And start a complaint We also have the same problem when I got... It's not a good feeling being rejected by so many people We also depressed but at least later we find that the world has a lot of opportunities

• How you see the world? 

• How you catch the opportunity?

So... Hollywood gives me a lot of inspiration at the beginning I never thought... I thought when I was young I said: "Everything is possible" Now I know not everything is possible We have something you have to think about You have to consider about the others You have to consider about the customer Society,

 Your employees The Shareholders There are so many things that I think If you continue to work hard There's possibility It's not a mission If you don't do it Nothing is possible If you try to do it at least you have the hope Calm down There's always a way out And keep yourself balanced And meanwhile don't try to keep because business is a... Competition is a fun Business is like a battlefield You die or I win Business... even if you die there will be another winner, right? So it's better fun Yeah,

 tell them the story and tell them that if Jack... I don't think in this world there's a lot of people be rejecting more than 30 times If we... you know, the only thing we never give up the only thing is we are like Forrest Gump We keep on fight We keep on change ourselves We don't complain Whether you are successful or not successful I find that one people when they finish the job If they make a mistake and they fail If they always complained the others This guy will never come back If the guy only check himself Yeah, is something wrong with me here Something wrongs me there This guy has a hope So many people I talked to at that time for Alipay,

 they said "This is the stupidest idea you have ever got" but I say: "I don't care if is a stupid clue as long as people use it" Now we have 800 million people using this Alipay 1999 the year 2000 and even at the Yahoo time a lot of people say: "This Jack is crazy, he's doing something that we don't understand" a lot of venture capitals give you money because there is such an American model already there but they say:

"Alibaba?

We don't see this kind of model", right? -They said: "Jack's crazy" -Yeah, this is a crazy guy I mean, I remember my first time in Time magazine They call me "Crazy Jack" And I think crazy is good we are crazy but we're not stupid We know what we are doing But if everybody agreed with me If everybody believed that our idea is good We have no chance So that's... The money we raised we're very thankful So,

 when our investors make a lot of money I feel proud and honored Everybody's made it a unique and different So, you must have a unique and different way A lot of people today have a lot of complaints Say: "I don't have the opportunity" I complain a lot when I was young and suddenly realized complaint has not solved any problem The opportunity is always in the place where people complain There are so many opportunities in the world In this world Because there are so many complaints If you can solve the complaint, one of the complaints That's the opportunity So this is what we made I think young people My advice to be an entrepreneur Don't be scared of failure Of setbacks And don't give up When we start the business we had 18 founders including me 17 of them Now most of them are my students and most of them... Well, today people think: "These 18 people are the smarter people in China" We don't think we were smart Honestly,

 we all graduate from the very poor schools The only thing we did We're very united We all believe the future We are all optimistic And we learn through mistakes We never give up If you graduate from famous Universitys Please Respect the people who graduate from the poor schools Those people like us graduate from a poor university Please respect yourself We have a chance We came today to down We made so many mistakes People say: "You are lucky" Yes, we are very lucky We in only 19 years reach today's size But we have gone through so many tough situations We made so many mistakes that people cannot even imagine in probably 19 years You have to go through so many tough experiences And that will make you different.