California headquartered SaaS automation startup Tekion laid off around 300 employees, or 10% of its workforce, earlier this week as part of a cost-cutting exercise, sources told Inc42. Of the 300 employees impacted by the layoffs, around 200 were from Tekion’s India office, the sources added.  The startup has offices in Bengaluru and Chennai and has a majority of its employees in India. In a town hall meeting on Monday (July 31), Tekion’s leadership team informed the employees that the startup would be conducting a restructuring exercise which would result in job cuts. Following the meeting, the impacted employees received mails about the layoffs, the sources said. The layoffs impacted employees from teams such as tech, sales, marketing, talent acquisition, human resources, among others, as per the sources.  Tekion confirmed the layoffs to Inc42 and hinted at “changing macroeconomic conditions” as the reason behind it. However, it didn’t comment on the number of employees who lost their jobs in the restructuring exercise.  “Building a large-scale business while keeping our mission intact requires us to make tough, but important business decisions; mainly organisational adjustments to navigate through changing macroeconomic conditions,” Marylou Hastert, vice-president of marketing at Tekion, told Inc42 in a statement. “This week, we have made the difficult decision to reduce a small percentage of our workforce in some areas of the business. We deeply empathise with these impacted colleagues and are working to support them with their career transitions with severance pay, outplacement assistance, and additional support through our Employee Assistance Program,” Hastert added. Multiple sources told Inc42 that Tekion failed to achieve the revenue targets which it projected to its investors earlier and this was the main reason behind the layoffs. Besides, the startup is also rebuilding some of its products as they failed to generate revenue, they added. Amid all these, Tekion also lost many of its clients over the last few months, as per the sources. Founded by former Tesla CIO Jay Vijayan in 2016, Tekion is a cloud-native SaaS platform that uses machine learning and artificial intelligence to bring together original equipment manufacturers (OEMs), retailers/dealers and consumers on a single platform. The startup offers an end-to-end dealer management system, where dealers can review vehicle inventory and service department metrics.  The latest development comes almost 1.5 years after Tekion raised $250 Mn in a funding round, which tripled its valuation to $3.5 Bn. The funding round was co-led by Alkeon Capital and Durable Capital.  Tekion entered the coveted unicorn club in 2020 after it bagged $150 Mn from Index Ventures, Exor, the holding company of Ferrari, and FM Capital, among others. The startup has raised a total funding of $435 Mn till date and counts Hyundai Motor Company, General Motors, and BMW i Ventures among its backers.  The startup claims to work with lead vehicle manufacturers such as Lamborghini, Lexus, Mercedes Benz, Aston Martin, Lyft, among others.  The development comes at a time when multiple SaaS startups have laid off employees in the recent past amid the ongoing funding winter. Earlier this week, Inc42 exclusively reported that Increff laid off around 20% of its workforce. Prior to that Suumit Shah-led Dukaan laid off 30% of its workforce.  Amid macroeconomic headwinds and global economic slowdown, many global giants such as Google, Meta, Microsoft, and X (earlier known as Twitter) also undertook layoff exercises over the last year or so which resulted in many employees in their Indian offices also losing jobs. 

Imagine a startup company called NP that is run by John, a charismatic but unproductive entrepreneur. John had lofty aspirations, but his management approach was far from ideal. He frequently took important decisions without consulting his team, which caused uncertainty and discontent among them. Low morale and an unpleasant work environment were the results of John’s lack of transparency and communication. As a result, NP found it difficult to realize its full potential and struggled to find and keep outstanding personnel. This story serves as a reminder that successful startups need more than just a clear vision; they also need motivating leaders who can create an environment where their people may flourish. In this article, we will explore seven essential tips for startup founders to inspire success and build a strong organizational culture. Tip #1: Lead by Example Great leaders motivate their teams by leading by example. Display your commitment to the startup’s objective, your work ethic, and your passion. Show your colleagues that you are not afraid to tackle obstacles and get your hands dirty. Employees will be more inspired to follow your lead and put up their best effort if they observe you leading from the front. Additionally, setting a positive example for your team builds mutual respect and trust, which promotes candid dialogue and a cooperative work atmosphere. Tip #2: Communicate Transparently Building trust and promoting a positive workplace culture both depend on open communication. Inform your group on the startup’s objectives, developments, and difficulties. Encourage open dialogue and pay attention to the opinions and suggestions of your staff. Transparency not only enables team members to take responsibility of their roles and duties but also aids in everyone’s understanding of the wider picture. Tip #3: Nurture a Positive Work Environment Team motivation and productivity depend on a positive work environment. Encourage an environment where staff members feel appreciated, backed up, and recognized for their accomplishments. Celebrate success, no matter how minor, and offer helpful criticism to promote development. Provide opportunities for skill growth and foster a sense of community among the team members. Tip #4: Encourage Innovation and Risk-Taking Encourage the creative problem-solving and calculated risk-taking of your team. Startups thrive on innovation, and encouraging people to try new things and learn from mistakes can result in ground-breaking concepts and solutions. Recognize and honor creative thinking in order to promote a culture of continual growth. photo credit: Ketut Subiyanto / Pexelsleadership Tip #5: Set Clear Goals and Expectations Your team will have direction and drive from clear, attainable goals. Engage your staff in the goal-setting process by breaking down larger objectives into more attainable tasks. Everyone is more likely to stay focused and in line with the company’s goal when they are aware of their responsibilities and how they contribute to the success of the company. Tip #6: Foster a Growth Mindset A growth attitude is essential for the success of startups. Encourage your staff to view obstacles as chances to improve and learn. Establish a culture that encourages education and skill advancement, whether it be through workshops, classes, or mentorship initiatives. A team that prioritizes growth will be more flexible and resilient when faced with change. Tip #7: Prioritize Work-Life Balance For employee well-being and productivity, it’s crucial to maintain a healthy work-life balance. Encourage your employees to emphasize self-care and take breaks. By setting an example in your own life, you can inspire others. Employees are more likely to perform at their highest level at work when they feel supported in their personal lives. Takeaway By adopting these seven suggestions into your leadership style as a startup entrepreneur, you will greatly boost the possibility of motivating success in your startup. You can create an environment where your team is motivated, engaged, and prepared to take on any challenge by setting an example, communicating openly, cultivating a positive work environment, encouraging innovation, setting clear goals, cultivating a growth mindset, and placing a priority on work-life balance. Remember that your leadership sets the tone for the whole company, so put these suggestions to use and watch your startup succeed. Don’t be like John.

Last year, X (previously Twitter) sued the government, challenging some of the block orders on tweets and accounts that the central authorities alleged were spreading misinformation about anti-government protests by farmers. A year later, Karnataka High Court dismissed Twitter‘s plea challenging the government’s orders and fined the company Rs 50,00,000.Now the company has sought to quash the decision by the Karnataka court. According to a report by news agency Reuters, X argued in a 96-page filing that if its appeal is rejected, the government “will be emboldened to issue more blocking orders” that violate law. It added that there must be “discernible parameters” on what mandates the blocking of an entire account instead of a specific post, otherwise, the government’s “power to censor future content is untrammelled”. In its original lawsuit, the company claimed that some block orders by the government “pertain to political content that is posted by official handles of political parties” and even alleged that New Delhi threatened to open criminal proceedings against its chief compliance officer in the country if Twitter didn’t comply with orders.“Blocking of such information is a violation of the freedom of speech guaranteed to citizen-users of the platform. Further, the content at issue does not have any apparent proximate relationship to the grounds under Section 69A,” it argued.Ex-Twitter CEO’s ‘threats’ claimsIn an interview earlier this year, Twitter’s former CEO Jack Dorsey claimed that the government had many requests to take down content “around farmers’ protest, around particular journalists that were critical of the government.” He also alleged that the company was threatened with shutting down Twitter in India and raid the homes of employees.His remarks drew immediate criticism from the government and IT minister Rajeev Chandrasekhar termed Dorsey’s claim as an “outright lie”. The minister also said that Twitter “behaved as if the laws of India did not apply to it.” The court ruled that Twitter was served notices, to which it did not comply, Chandrasekhar said in a tweet.

“In this industry, it’s like you’re starting this company, but the company solely relies on this one individual to be able to perform,” he says. “And that is absolutely a horrible business model. It’s way too high-risk.” Van Den Bussche and his creative team began trying to reverse engineer what made creators successful. “We started testing a lot of theories on this,” he says. “We needed evidence: How much does the voice influence the performance with the fans? How much does the face influence it? How much does the content influence it?” In April 2021, Van Den Bussche launched a YouTube channel with a virtual YouTuber (vtuber) called Bloo that he developed, powered by AI. Since then, Bloo has gained 775,000 subscribers, with each video watched by tens of thousands or hundreds of thousands of viewers. “He’s a completely virtual influencer with a protocol and set steps and a bunch of AI and machine learning applications involved in the system,” he says. “Now we’re applying that model to my IP and my friends’. It includes voice cloning, so it sounds like me.” The Kwebbelkop videos made by AI—the first of which dropped on Tuesday—are powered by models trained on Van Den Bussche’s existing content. “It’s modeled after me and my creativity and my input,” he says. “Everyone thinks I’m retiring as a creator and letting this AI run, but I’m not retiring as a creative.” While not retiring, Van Den Bussche is happy to replace himself in the creative process with the AI he’s been working on. “We’ve seen a lot of success with these systems,” he says. “I’m very confident that they can reproduce creativity—so much so that I’m willing to bet my entire business on it.” As of this writing, the AI video he released Tuesday has nearly 3,000 views. He claims to have a wait list of 500 influencer friends within the industry eager to adopt his AI tools, though he can’t give them access until the cost of creating new videos drops to an economical level, which he believes will happen as technology advances. “This presents an entirely new option for creators to essentially clone themselves and continue without worrying about aging, gaining weight, or otherwise evolving in any way that could alienate certain segments of their audience,” says Lia Haberman, an influencer marketing expert and instructor at UCLA. However, Haberman isn’t fully convinced audiences will want to embrace AI-generated creators as readily as the creators themselves are. Their appeal “is their humanity and ability to create these parasocial relationships with their audience where people either relate to them or aspire to become them,” she says. “A virtual influencer will only ever present as entertainment, at least until we get to sentient beings.” Nevertheless, Van Den Bussche hopes that it’ll encourage those who previously stepped away from online video because of the stresses involved. “That’s the one really big use case we’re focusing on right now,” he says. “People who have an existing brand, want to continue this existing brand, but are facing a human problem like the one we had. Every YouTuber and every influencer who has ever retired has experienced that,” he says.

YouTube is adding new tools for creators to create short-form videos, or as the platform calls it, Shorts. Now, users will have the remix videos, add voiceovers, and a new recomposition tool that can turn horizontal videos into Shorts, among others. Here are six new creator features coming to YouTube Shorts. One of the latest additions to Shorts is Collab, a feature that enables users to record Shorts in a split-screen format with other Shorts or regular clips. To create a Collab video, users simply need to select Remix and choose the new format from an eligible Short or YouTube content.YouTube’s Collab is now available and will be released to users gradually. The format will be initially available to iOS users, followed by Android users. TikTok and Instagram‘s Reels both offer a similar split-screen collab feature.Creators can now use a Q&A sticker on Shorts to engage with their audience and receive responses in the comments section. Additionally, they have the ability to reply to comments with a brief video, similar to how it is on Reels and TikTok.YouTube will soon be testing a recomposition tool that will make it easier for creators to transform horizontal videos into vertical Shorts. This new tool will allow creators to adjust the layout, zoom, and crop of the segment they wish to use.Additionally, YouTube is testing a new feature for live creators. In this feature, live videos will be inserted into the Shorts feed. Viewers will see previews of live videos mixed in with other Shorts as they scroll through. If they choose to watch a live video, they will be taken to a feed of only live videos.YouTube believes that this new feature, combined with the lower eligibility requirements for the YouTube Partner Program, could allow live video creators to explore more monetization options.There are also some new tools to help creators with inspiration for their videos. Now YouTube automatically bundles audio and effects. Additionally, you can save Shorts to playlists for future use.YouTube says that Shorts is now being watched by over 2 billion users a month. So, these new tools should help creators with their imagination and creativity, allowing them to cash in on the viewership.

Freshworks reported a net loss of $35.66 Mn Q2 2023, down 48.9% YoY compared to $69.75 Mn in the corresponding quarter in 2022 The SaaS unicorn reported a revenue of $145.08 Mn during Q2 2023, growing 19% YoY from $121.43 Mn reported in Q2 2022 Freshworks managed to shave off its operating expenses by about $1.21 Mn, coming down from $164.72 Mn in Q2 2022 to $163.51 Mn in Q2 2023 NASDAQ-listed Indian SaaS unicorn Freshworks has reported a net loss of $35.66 Mn in the quarter ended June 30, 2023 (Q2 2023), down 48.9% year-on-year (YoY) compared to $69.75 Mn in the corresponding quarter in 2022, off the back of improving revenue and falling costs. Incidentally, Freshworks had reported an adjusted operating profit for the first time in the January-March quarter of 2023, posting a non-GAAP (Generally Acceptable Accounting Practices) profit of $3.88 Mn during the quarter. The SaaS unicorn reported revenue of $145.08 Mn during Q2 2023 (April to June), growing 19% YoY from $121.43 Mn reported in Q2 2022. Freshworks said that adjusting for constant currency, the revenue was up 20% YoY.  The revenue growth can be mostly attributed to the number of customers contributing more than $5,000 in annual recurring revenue (ARR), hitting 19,105, a jump of 18% YoY. At the same time, Freshworks managed to shave off its operating expenses by about $1.21 Mn, coming down from $164.72 Mn in Q2 2022 to $163.51 Mn in Q2 2023. Quarterly, the operating expenses rose 2%, compared to $160.56 Mn in Q1 2023. The SaaS unicorn also saw minor improvement in sales and marketing expenses and research and development. Freshworks reported a free cash flow of $18.1 Mn, compared to -$10.2 Mn in the second quarter of 2022. “Freshworks is building on the foundations we set at the start of the year to deliver faster product innovation and improve our efficiency,” said Girish Mathrubootham, CEO and founder of Freshworks on the results. The SaaS giant also launched three new generative AI products – Freddy Self Service, Freddy Copilot and Freddy Insights – during the quarter. Speaking on the same, Mathrubootham added, “In Q2, we launched new generative AI enhancements across our product lines and outperformed our estimates across all our key financial metrics.” Freshworks also saw layoffs towards the end of the quarter ended June 30, 2023, though the company had denied any company-wide layoffs during the time. The retrenchments reportedly happened within senior positions in the SaaS unicorn’s product, engineering and go-to-market (GTM) teams. Founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, Freshworks offers a suite of software for customer service and support, customer engagement and IT service management. The company went public in 2021, though its share price has been in freefall since hitting a peak of $50.25 in October 2021. The SaaS unicorn’s share price stood at $18.24 during Tuesday’s close, giving it a market cap of $5.31 Bn.

What Is A Private Equity Fund? A private equity (PE) fund is an investment vehicle that pools funds and invests in privately held companies in exchange for an equity share. It falls under Category II alternative investment fund (AIF) category, as per the regulations of the Securities and Exchange Board of India (SEBI).  A PE fund is run by general partners and a management company (PE firm). The management company is the operating entity of the fund and employs general partners who bring in investors, also called limited partners, to invest money in the fund.  Typically, a PE firm invests for a decade and the minimum investment amount is bigger than other types of investments. This means that most of the investors in a PE fund are generally high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs) and institutional investors. What Are The Benefits Of A Private Equity Fund? Private companies can raise a large amount of funding from PE funds. Such companies don’t just receive financial benefits but also mentorship, networking, expertise and operational support. A private equity investment helps companies during uncertainty and also for scaling and expansion plans.  For investors, private equity funds provide an opportunity to tap into the potential of unlisted companies. Investors’ interest is safely guarded by the PE firm as they hold the companies accountable for their actions and transactions. What Are The Risks Associated With Private Equity Funds? For investors, one of the biggest challenges with investments in PE funds is that they won’t be able to dilute their shares easily and exit their positions as opposed to funding in listed companies. PE firms also charge high fees, which might affect the ROI. Additionally, the minimum investment required for a private equity fund is way higher than the traditional investment. For companies, their interest might conflict with that of the PE firm’s. Besides, companies give up a sizable portion of ownership to these firms in exchange for capital. However, this may come with inflexible terms that may not be favourable for the company.   In a private equity firm, general partners are the fund managers who decide the fund size and bring investors on board. They also decide which portfolio companies to invest in and make investment decisions on behalf of the investors. They are responsible for the performance of the fund and earn lucrative performance fees. Limited partners bring in the capital to the fund with an intent to make lucrative gains. General partners reach out to limited partners for investment in portfolio companies. When both parties come to an agreement, it is called a limited partnership agreement (LPA). How Do Private Equity Firms Make Money? Private equity firms majorly make money through management fees and carried interest. In management fees, the limited partners pay the management of the firm a fee, generally about 2% of the fund size. Meanwhile, carried interest is the certain amount of profit general partners share with limited partners when limited partners make profit from their investment.  What Is The Role Of A Private Equity Fund Manager? A private equity fund manager implements the fund’s investment strategy and is responsible for generating returns for the investors. The manager researches and oversees analysts and makes important investment decisions. The PE fund manager is responsible for researching potential investments, negotiating deals and overseeing the performance of the portfolio companies. The manager also oversees the performance of the portfolio companies and works to improve their operations.  The manager pitches the private equity firm to potential investors for investment opportunities. How Can Investors Access Private Equity Funds? Direct Investments: Investors can directly invest in private equity funds. However, the minimum investment amount threshold is very high, often starting at millions of dollars. Fund of Funds: A fund of funds is a pool of capital from multiple investors to invest in a diverse portfolio of private equity funds. This provides exposure to a range of private equity investments and minimises risk. Private Equity ETFs: Private equity extra-traded funds (ETFs) enable regular investors to participate in private equity investments by buying shares of ETFs that track the performance of publicly traded companies involved in private equities, providing potential returns and diversification opportunities to these companies. Special Purpose Acquisition Companies (SPACs): Investors can invest in SPACs, which are publicly traded shell companies that make private equity investments in undervalued private companies. However, investing in SPACs can be risky and may lack diversification. How Can An Investor Evaluate A Private Equity Fund? Begin with assessing the fund’s investment strategy — types of investments it focuses on, target return and plans to achieve its goals. Investors should also check the past performance and rate of return and then compare them to other private equity funds. They must also consider the management fees and carried interest, and understand its impact on the return.  Investors should check the performance of the fund’s portfolio companies, as their success can translate into potential returns. Lastly, analyse the fund’s investment process, including how investments are selected, due diligence procedure, and the fund’s exit strategy. What Are The Types Of Private Equity Strategies? The prominent strategies of PE funds in India are growth capital, buyouts and mezzanine finance. Growth Capital: Growth capital is the investment in early or growth stage companies to support their expansion plans, research and development, or working capital needs. Buyout: In this, investors acquire a controlling stake in an established company to restructure and improve its operations to increase profits and ROI. Mezzanine Finance: This is a combination of debt and equity to provide capital to companies for growth initiatives or acquisitions. The debt becomes equity in case of a default in payment. It offers flexibility and an upside for investors in the form of regular interest payments and potential ownership rights in the company. For the company, the interest rate is generally high but it will not have to dilute equity stake.  What Is The Process For Raising Funds From Private Equity Funds? A company can start by

As part of the strategic partnership, Rahane has also been roped in as the brand ambassador of the startup OATEY will use the funding to raise awareness, for brand building efforts, and to make key hires Founded in 2021 by Jamadagni and Prashant Chauhan, OATEY sells plant-based dairy alternatives such as oat milk, millet milk and chocolate oat milk through online channels Dairy alternatives startup OATEY on Tuesday (August 1) said it has raised an undisclosed amount of funding from Indian cricketer Ajinkya Rahane. As part of the strategic partnership, Rahane has also been roped in as the brand ambassador of the startup.  Speaking to Inc42, OATEY cofounder Ankush Jamadagni said that the funding will go towards raising awareness about the plant-based dairy alternatives brand and for brand building efforts. The capital will also be deployed to make key hires, expand into the offline channel and launch new products.  The startup is also looking to raise fresh capital as it eyes further growth, said Jamadagni. The D2C brand is also looking to scale growth by partnering with growth accelerators and institutional accelerators in the plant-based space. “The collaboration between OATEY and Ajinkya Rahane symbolises the perfect match of shared values and a common vision. Together, we aim to create widespread awareness about healthier living, advocate for the adoption of plant-based food options, and inspire individuals to lead sustainable lives,” added Jamadagni. Chiming in, Rahane, in a statement, said, “I am excited to collaborate with a health-conscious brand like OATEY. Their commitment to quality products and inspiring brand values align perfectly with my own principles, and I am confident that our partnership will motivate individuals seeking a healthy lifestyle…” Founded in 2021 by Jamadagni and Prashant Chauhan, OATEY sells plant-based dairy alternatives globally through its website and ecommerce marketplaces. Its offerings include oat milk, millet milk and chocolate oat milk. The D2C brand has grown steadily over the past two quarters, and claims to have logged an average growth rate of 57% month-on-month (MoM) and 30% quarter-on-quarter (QoQ). The startup attributes its growth to changing dietary preferences and growing awareness among masses for sustainable, plant-based milk products.  Overall, the Indian dairy products space has seen the rise of many big names in the past few years as users look for organic and sustainable options. This has led to the emergence of D2C brands such as Country Delight, MoooFarm, Stellaps, among others.  The backing from Rahane comes at a time when the dairy alternatives space is witnessing the growth of new startups and brands. In April this year, a similar startup, Zero Cow Factory, bagged $4 Mn in a seed funding round led by Green Frontier Capital, GVFL and Pi Ventures.

Apple has teamed up with Pixar, Adobe, Autodesk, NVIDIA, and Linux to support and advance Pixar’s 3D Universal Scene Description technology. Pixar Animation Studios developed the Open Universal Scene Description (USD). According to Apple, USD enables easier creation of 3D content using diverse tools. The alliance is aiming to make the 3D ecosystem more standardised by enhancing the capabilities of Open Universal Scene Description (OpenUSD). This will lead to better interoperability among 3D tools and data, which will allow developers and content creators to describe, compose, and simulate large-scale 3D projects easily. As a result, the alliance hopes to expand the range of 3D-enabled products and services available.OpenUSD is a 3D scene description technology developed by Pixar Animation Studios. It offers high-performance, robust interoperability across various tools, data, and workflows and is already known for its ability to streamline cinematic content production and capture artistic expression. OpenUSD’s power and flexibility make it an ideal platform for new industries and applications. “Universal Scene Description was invented at Pixar and is the technological foundation of our state-of-the-art animation pipeline,” said Steve May, Chief Technology Officer at Pixar and Chairperson of AOUSD. “OpenUSD is based on years of research and application in Pixar filmmaking. We open-sourced the project in 2016, and the influence of OpenUSD now expands beyond film, visual effects, and animation and into other industries that increasingly rely on 3D data for media interchange. With the announcement of AOUSD, we signal the exciting next step: the continued evolution of OpenUSD as a technology and its position as an international standard.”To enable greater compatibility and broader adoption, an alliance will develop written specifications outlining the features of OpenUSD. These specifications will be included by other standards bodies, allowing for integration and implementation. The project will be hosted by the Linux Foundation’s JDF, enabling open, efficient, and effective development of OpenUSD specifications, leading to recognition through the International Organization for Standardization (ISO).The alliance also invites a broad range of companies and organisations to join and participate in shaping the future of OpenUSD. AOUSD will provide the primary forum for the collaborative definition of enhancements to the technology by the more significant industry.“OpenUSD will help accelerate the next generation of AR experiences, from artistic creation to content delivery, and produce an ever-widening array of spatial computing applications,” said Mike Rockwell, Apple’s vice president of the Vision Products Group. “Apple has been an active contributor to the development of USD, and it is an essential technology for the groundbreaking visionOS platform, as well as the new Reality Composer Pro developer tool. We look forward to fostering its growth into a broadly adopted standard.”Apple has recently introduced its foray into virtual reality with Vision Pro, along with the launch of a new initiative aimed at producing cinematic 3D content for this realm. Through this initiative, Apple seeks to simplify the process of creating 3D content by providing a range of diverse tools.