What VCs want from Budget 2023

Hello,

If you were wondering how OpenAI’s ChatGPT will help students cheat in exams, here's some news. 

At the University of Pennsylvania’s prestigious Wharton School of Business, professor Christian Terwiesch researched how the AI tool will perform on the final exam of a typical MBA core course.

To everyone’s surprise, he concluded that the chatbot, despite a few shortcomings, “would have received a B to B- grade on the exam.”

On a happier note, once thought extinct, the Fender’s blue butterfly has fluttered its way back.

ICYMI: A UFO-shaped cloud phenomenon caught the attention of onlookers in Turkey last week. 

Watch the video to see for yourself!

In today’s newsletter, we will talk about 

• What VCs want from Budget 2023
• Elista eyes global expansion
• Entrepreneurial journey afoot

Here’s your trivia for today: On which planetary object will you find The Sea of Tranquility?

Investors

What VCs want from Budget 2023

If 2022 was the year of reckoning for startups in India, the venture capital and private equity industry’s approach has been cautious at best. 

Ahead of the Union Budget 2023, industry bodies and representatives have sought much-needed taxation reforms to benefit their portfolio companies and to make private market investing a more rewarding proposition. 

Make way for:

• The Indian Venture and Alternate Capital Association (IVCA) has asked for parity in tax treatment for various security classes in a presentation made to the finance minister ahead of the Budget.
• IVCA has also asked for tax pass-through on expenses for AIFs, and for this to be extended to hedge funds and listed market funds as well to encourage setting up funds within the country.
• While the amendment brought as part of Budget 2020 ensured that employees did not have to pay taxes in the year they decided to exercise the options, ESOPs continue to be taxed twice. 

SMBs

Elista eyes global expansion

After the 2008 financial crisis forced Saket Gaurav to lose his job, the ‘accidental entrepreneur’ was left with two options—either he starts looking for new jobs or build his own company. 

With almost nine years of experience in consumer electronics, Saket chose to do the latter and founded Dubai-headquartered TecknoDome in 2008, the parent company of Elista. 

Made in India brand:

• Founded in August 2020 and headquartered in Noida, Elista's products include LED TVs, washing machines, dishwashers, refrigerators, coolers, mobile accessories, and speakers. 
• Elista’s revenue reached Rs 35 crore during its first year of operation. In FY22, the company reported Rs 158.8 crore in revenue and Rs 50 crore in the April-June quarter of FY23.
• The company is present in 300 Indian cities. It aims to penetrate deeper into Tier II and III cities. Moreover, the company expects to reach a revenue target of Rs 200 crore in this financial year.

Entrepreneurship

Entrepreneurial journey afoot

Flatheads Co-founder Ganesh Balakrishnan’s pitch on Shark Tank India Season 2 resonated with the show’s audience. Despite getting investment offers, Ganesh decided to decline the deal and re-evaluate his priorities.

What made the episode special was the honest portrayal of an entrepreneur’s struggles and vulnerabilities. It’s no surprise that the episode struck a chord with countless viewers.

Taking the plunge:

• Ganesh’s drive to start his own venture led him to launch Momoe in 2013. He wanted to build a sophisticated, hardware-independent payment solution that would appeal to tech-savvy individuals.
• In 2018, Ganesh partnered with Utkarsh Biradar to launch Flatheads, a brand of comfy and breathable yet stylish sneakers. The idea was to build a “casual Hush Puppies equivalent” for modern office-goers.
• While the future looked bleak for Flatheads, Ganesh decided to give it one last try with Shark Tank India to get new investors on board while building more awareness for the brand, giving it a new lease on life.

News & updates

• Compliments, indeed: Social media company Discord announced the acquisition of Gas, a quickly growing social media company designed to promote positive affirmations. Gas allows users to anonymously share compliments with one another via polls, and has gained increasing popularity among teenagers. 
• New Prime Minister: Chris Hipkins has been confirmed as New Zealand’s next prime minister after the ruling Labour Party endorsed him to succeed Jacinda Ardern as its leader. Hipkins, 44, received unanimous support from Labour’s 64-strong caucus in a meeting on Sunday. He will be officially sworn in on January 25.
• New features: Twitter is working on a new, more expensive Blue subscription tier that will allow users to browse the platform without seeing ads. “Ads are too frequent on Twitter and too big. Taking steps to address both in coming weeks,” Twitter owner Elon Musk tweeted. “Also, there will be a higher priced subscription that allows zero ads.”

On which planetary object will you find The Sea of Tranquility?

Answer: Moon

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