I'm not that Innocentive

I have always been a fan of Innocentive, but they just keep getting better.

Innocentive is a open innovation marketplace where seekers (often large corporations like Eli Lilly and Proctor & Gamble) post challenges with monetary awards. For instance, seekers are currently looking for technology to preserve bread texture ($40,000), a grain moisture/ wetness sensor system ($20,000), and an outdoor mobile wireless network ($25,000).

The innovation model is interesting enough for these science and technology applications, but Innocentive has recently embraced the non-profit and social innovation crowd (see this article in Fast Company). For instance, the Rockefeller Foundation supports a whole list of challenges related to development for poor and vulnerable populations. Last fall a 31-year-old Texan won $20,000 for his idea for a solar-powered router. The seeking organization, ASSET, breaks the cycle of the sex industry by providing training for children of sex workers and girls rescued from trafficking in India. The training focuses on technology and computer skills, but unreliable electricity in some areas makes operations difficult. The solar-powered router will provide more hours for training.

Full disclosure: I also love Innocentive because I recently participated in my first challenge and won $3,000!

What I've Learned About Startups in India

I’ve spent a few weeks at GreenMango, an in Indian startup, and the first thing I noticed is that there are a lot of universals when it comes to starting a business. We manage with few resources, we are outgrowing our office space, we wear many hats (like our new hats shown here!). But there are some things that are unique to India:

• It’s hard to get good senior managers: Unlike in much of the US, it is NOT particularly glamorous to work at a startup. In addition, families are very tight-knit and it is likely your family doesn’t look too kindly on risky ventures either.
• Cultural norms affect operations: Our sales associates often recruit vendors into our database from their homes, particularly women who are tailors or beauticians. It is not very acceptable for men to enter women’s homes when they are home alone, so our sales associates work in pairs with one woman and one man (depending on the area the women may not feel comfortable going out alone).
• The office is rather hierarchical: There’s really nothing wrong with this in theory, especially if you enjoy being called “madam” all the time, but it can inhibit an open work environment. It can take some work to get employees to feel empowered to contribute their ideas.
• Lunchtime is awesome: Maybe Indians are just better at sharing, or maybe it is because the typical Indian meal has several dishes, but all of my co-workers share their lunch with me and everyone else. This is particularly good for me because the cook at my hotel is not from this area, so I don’t get local food for lunch. And many of the ladies I work with are great cooks. Plus it’s a good time to practice my Telugu.

A man poses with his new goat

I’ve recently learned about a fascinating Nepalese company that is making the most of the NRN population (Non Resident Nepalese- those living outside of Nepal). Most NRN have family back home they want to take good care of and so the company, Thamel, provides a way to send gifts and transfer money from abroad to Nepal. Some gifts are VERY local, like these gifts for the Tihar festival. You can purchase an online puja, but I’m not sure what that means (puja is a Hindu ritual showing reverence). I’m not sure if they still offer this, but originally you could purchase a gift certificate for your family to pick up a goat at the local market. Thamel had $30,000 of goat revenue the first year they offered this service. Some gifts are more universal, like holidays at resorts and flat-screen TVs. A newly added service allows you to arrange for financing of a home, a car, or an education in Nepal.

Most of their customers are Nepalese living in the US, Canada, and the UK, but there is a significant untapped diaspora population in both Hong Kong and Japan. Purchase of the items on the Thamel website usually includes delivery, which is provided by each specific vendor in their network. This allows Thamel to avoid a developing world issue of distribution with poor infrastructure and allow locals to take care of it. Thamel has become quite a local brand through marketing strategies like offering a picture of your family member receiving their gift. This helps to build trust in their service, which can be a significant hurdle for a service that is totally new. In fact, gaining the trust of potential vendors was a challenge when they were first starting. It is easier now because locals can see Thamel vendors are getting 5-10% of their revenue through the e-commerce platform – a number that rises to 50% during holidays and festivals. Thamel is profitable, with $1.3 million in revenue in 2004. The World Resources Institute/ NextBillion.Net did a case study on them, where I got a lot of this information and these fantastic pictures.






Thamel utilizes several of the characteristics of developing markets laid forth in The 86% Solution, which I’ve paraphrased here:

• Remember those who have emigrated
• Tap into regional communities to build your brand
• Build your own infrastructure
• Take the market to the people

Top 5 Favorite For-Profits

The Walker Art Center in Minneapolis is hosting an installation called Design for the Other 90%. It is an interesting exhibit designed to cover innovations for the majority of the planet. It covers shelter, water, transportation, and agriculture, but it does draw from a familiar well of initiatives. Kick Start’s Money Maker pump is on display as well as the Pot-in-Pot cooler system, along with One Laptop per Child. There were many other innovations, but it prompted me to make my own list of favorites, starting with the for-profits with interesting business models.

Top 5 Favorite For Profits for Social Good