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Meet The ‘Shop King’: How Tang Shing-bor Became A Billionaire Flipping Hong Kong’s Derelict Properties

Tins Plaza was an eyesore, a run-down, abandoned plastics factory in the Tuen Mun district when Tang Shing-bor first spotted it. To Tang, though, it was a gem, one of many forgotten industrial buildings sprinkled around Hong Kong, well worth the roughly $36 million he paid for it in 2005. But even he couldn’t have foreseen that just two years later he would triple his money on it.

It was by snapping up derelict industrial properties like Tins Plaza, flipping them or redeveloping them, that Tang went from the verge of insolvency in 2003 to billionaire in 2016, when he first made the list of Hong Kong’s richest. Now at 86 and No. 14 on the list with a net worth of $5.7 billion, Tang is making one of his biggest contrarian bets yet.

Despite months of protests casting a pall over the city’s property market, Tang has embarked on a shopping spree of Hong Kong’s industrial buildings, spending $700 million last year. He ranks as the biggest buyer of Hong Kong industrial properties in 2019, according to data from New York-based research firm, Real Capital Analytics.

This is the best opportunity I’ve ever seen,” says Tang in a rare interview, held at one of his buildings in Hong Kong’s bustling Mong Kok district, just blocks from where some of the most violent scenes of unrest have taken place. During the interview, Tang is multitasking, juggling phone calls from brokers, developers and lawyers. He is negotiating his next purchase, a dilapidated building next to the city’s old Kai Tak airport, which the government is auctioning off for redevelopment. To Tang, Hong Kong’s political turmoil is only creating better bargains. “We will move on from this,” he says.

Property is only the latest of Tang’s several incarnations in a career that traces Hong Kong’s own development.

At his side is the youngest of his five sons from two marriages, Stan Tang Yiu-sing, 34, chairman of the holding company he and his father established in 2013 and named Stan Group. Tang Sr., whose title is honorable chairman, remains very involved, and the two meet twice a day. Stan oversees new businesses and redevelopment of properties. Tang still cuts the property deals. “I make the final decisions,” says Tang in a booming baritone that belies his age.

Known in Hong Kong’s real estate circles as “Uncle Bor,” property is only the latest of Tang’s several incarnations in a career that traces Hong Kong’s own development—from neon bulb maker in the 1950s, to 1970s restaurateur, to earning the moniker “shop king” for his string of retail spaces—a foray that almost broke him.

Today, Tang is renowned for his knack of spotting remnants of Hong Kong’s bygone days as a manufacturing hub, its disused factories and warehouses, in areas poised for gentrification. That expertise is attracting eager partners, including Hong Kong’s Chinese Estates Holdings and Yangzhou-based Jiayuan International, which have both set up joint ventures with Stan Group to redevelop its industrial properties. “He’s very effective and experienced in converting these building sites,” says Joseph Lam, associate director of industrial services at Colliers International.

Tang has never feared failure. His father died when he was 5 and he was raised by his mother, who took a low-paying job in a factory to support them. “I had to come up with creative ways to survive,” he says. Tang recalls loitering outside restaurants when he was hungry, waiting for handouts. Growing up poor gave him grit: well into his 70s, he kept in shape with dawn swims beyond the shark net off Hong Kong’s shore. “There’s always a way,” he says. “There’s never a problem that can’t be solved.”

With only a primary school education, Tang became an apprentice in 1950 to an electrician making neon signs, and in his 20s opened his own store catering to then-booming demand for the bright storefront marquees that remain one of Hong Kong’s hallmarks. Neon success enabled Tang in 1970 to open a dim sum eatery with friends. That led to a string of restaurant investments, including a seafood restaurant in Sydney, that Tang would in 1982 consolidate as the East Ocean Gourmet Group, which is still thriving today. The 1980s saw Tang branch out into a flurry of new businesses, including a used car dealership. But it was buying and selling shops where Tang made his mark. “Looking after the restaurant exposed him to news of nearby shops,” says Stan. One of his most notable investments in the following years would be the purchase in 1990 of an old restaurant building that he would transform into the renowned Mongkok Computer Centre.

“I’m optimistic about Hong Kong’s future,” says Tang. “I’ve seen ups and downs. There are opportunities out of risks. This is my chance—my turn.”

Tang Shing-bor

By 1997, Tang had amassed more than 200 shops worth roughly HK$7.3 billion ($942 million) and began planning an IPO, only to be thwarted by the Asian financial crisis. Hong Kong’s property market fell 70% between 1997 and 2004 as the crisis was followed by the outbreak of SARS in 2003. By 2004, with HK$4 billion in debt, Tang began selling most of his portfolio, including his prized Mongkok Computer Centre.

More from Forbes: Hong Kong’s New No. 1: Lee Shau Kee Edges Out Li Ka-Shing As City’s Richest Person

What he didn’t sell, however, was a smattering of industrial space he began buying in 1996 to hedge against volatile retail rental yields. And Tang knew just where to buy. Hong Kong had decided in 1990 to close Kai Tak and build a new, larger airport on Lantau Island. So Tang focused on Tuen Mun, a neighborhood directly across a bay from the new airport and connected by road to Hong Kong’s nearest neighbor in mainland China, the fast-growing city of Shenzhen.

Tang starts drawing a rough map: “Let me tell you about the factories on San Hop Lane,” he says as he sketches out the streets and buildings around his first purchase, Tuen Mun’s Oi Sun Centre. Tang bought the former factory in foreclosure for HK$42 million in 2004.

Up the street was Tins Plaza, the retired plastics factory named for its former owner, chemical tycoon-turned-philanthropist Tin Ka-ping. Tang picked up the building in early 2005 for HK$280 million, putting HK$28 million in cash down and borrowing the rest from banks using another of his buildings as collateral.

Six months later, Tang says he received a call from an industrial property unit of Australia’s Macquarie Bank, Macquarie Goodman, offering him HK$500 million for the building. By October, he had a second offer, for HK$520 million, from Singapore property investment fund Mapletree. “But that’s not even the best part,” Tang says.

Faced with rival offers, Tang chose neither. Commercial property commands a higher price than industrial property, he reasoned, so he had Tins Plaza rezoned as commercial. Two years later, Tang found himself in an elevator to Macquarie’s offices in Hong Kong’s International Finance Centre to meet an executive who had flown in from Sydney with a new offer. “The gweilo [foreigner] boss was a handsome man,” Tang says. “He was very straightforward and asked me whether I’d be willing to sell for HK$850 million.” Macquarie in 2008 sold its stake in Macquarie Goodman to its joint venture partner, Goodman Group. Both Macquarie and Goodman declined to comment on the deal.

Tang’s prediction had come true: demand for Hong Kong’s old industrial space had indeed rebounded—not, as he foresaw, because of the new airport, but because of surging demand for the data and fulfillment centers needed to provide cloud services and e-commerce. “There are new technologies like data center users going into warehouses,” says Samuel Lai, senior director at property services firm CBRE in Hong Kong. Tang sold Macquarie Tins Plaza, earning HK$570 million on his HK$280 million investment. “Tins Plaza was the most memorable transaction I’ve ever made,” he says.

But Tang wasn’t resting on his laurels. After seeing the offers roll in for Tins Plaza, he set about buying another former factory down the street, the Gold Sun Industrial Building. Unlike his previous two deals, Gold Sun had several owners, each requiring separate negotiations. Tang bought the first of the building’s eight stories in 2006; he wouldn’t manage to clinch the eighth until 2014. “I bought it floor by floor,” says Tang.

Tang’s timing proved impeccable. Eager to boost the supply of property for offices, hotels and shopping, Hong Kong’s government in April 2010 implemented incentives to redevelop disused industrial properties. The so-called revitalization scheme lifted restrictions on how large a building developers could build on land converted from industrial use. The result: Factory prices surged 152% between the policy’s launch and early 2016, when the government ended the incentive. “The best initiative that came out and led to a lot of transactions was the relaxation on the plot ratio,” says CBRE’s Lai.

Tang got another lift in 2013, when the government announced the start of construction on a tunnel linking the new airport and Tuen Mun. Tang combined his Oi Sun Centre and Gold Sun Industrial Building into a single development, One Vista, a two-tower office building and shopping complex. In May 2018, he bundled One Vista with two other Hong Kong properties and sold roughly 70% to Jiayuan International for HK$2.6 billion.

Tang has left Mong Kok to head downtown to his East Ocean Lafayette restaurant overlooking Victoria Harbor. Nibbling on fried turnip cake dipped in spicy Cantonese seafood sauce, he is closely shadowed by two lawyers sipping tea at the next table and waiting their turn to update him on his deal near Kai Tak. Uncle Bor has already managed to buy 73% of the buildings near the old airport, just 7% away from the threshold at which he can legally compel the remaining owners to sell. Redevelopment of Kai Tak stands to boost property values around the area. And a new revitalization scheme, launched last year, has lifted limits yet again on how big developers can build on converted sites. If and when Tang clinches ownership, he and his partner for the property, Chinese Estate Holdings, will be able to knock down the existing building, and build a new one with 14 times as much saleable space.

“I’m optimistic about Hong Kong’s future,” says Tang. “I’ve seen ups and downs. There are opportunities out of risks. This is my chance—my turn.”

After returning to Hong Kong from university in the U.K. 15 years ago, Stan Tang Yiu-sing opened an ad agency with friends. Soon, though, he was working with his father, Tang Shing-bor, learning the real estate business and building property management and leasing firms. In 2013, he and his father set up Stan Group to integrate the family’s real estate investments with his service offerings. Stan now chairs the group and oversees the conversion of the older buildings his father buys into modern retail and commercial properties.

“Pure property investment is no longer our only single investment direction,” says Stan, who has joined the shift among Asian property executives from asset-focused development into service-oriented offerings—hospitality, co-working spaces and incubation hubs. Stan Group now operates six hotel brands with a combined 3,500 rooms. In 2016 it launched an innovation hub for entrepreneurs, called “The Wave.”

Stan has also steered Stan Group into financial services, a private members’ club, and serviced apartments catering to the elderly. “The government has given us policies that present us an opportunity to reposition ourselves,” Stan says, echoing his father’s confidence in Hong Kong’s future as part of the greater bay area comprising Guangzhou, Hong Kong and Shenzhen. The 34-year-old plans to list five of the group’s companies by 2023, though the property representing 90% of Stan Group’s assets will remain private, he says. Stan says his aim is to grow non-property businesses to someday represent at least half of the group’s total assets.

Pamela covers entrepreneurs, wealth, blockchain and the crypto economy as a senior reporter across digital and print platforms. Prior to Forbes, she served as on-air foreign correspondent for Thomson Reuters’ broadcast team, during which she reported on global markets, central bank policies, and breaking business news. Before Asia, she was a journalist at NBC Comcast, and started her career at CNBC and Bloomberg as a financial news producer in New York. She is a graduate of Columbia Journalism School and holds an MBA from Thunderbird School of Global Management. Her work has appeared in The New York Times, Washington Post, Yahoo, USA Today, Huffington Post, and Nasdaq. Pamela’s previous incarnation was on the buy side in M&A research and asset management, inspired by Michael Lewis’ book “Liar’s Poker”. Follow me on Twitter at @pamambler

Source: Meet The ‘Shop King’: How Tang Shing-bor Became A Billionaire Flipping Hong Kong’s Derelict Properties

An interview with Hong Kong’s richest man, Li Ka-shing. In this interview Li Ka-shing discusses his early interest in business, why cash flow is the most important thing and building his companies, CK Hutchison Holdings and CK Property Holdings. Li Ka-shing also talks of his foundation, Li Ka Shing Foundation, and the philosophy behind it. Like if you enjoyed Subscribe for more:http://bit.ly/InvestorsArchive Follow us on twitter:http://bit.ly/TwitterIA Other great Entrepreneur videos:⬇ Larry Ellison’s in depth interview on his Life and Success: http://bit.ly/LEllisonVid Jeff Bezos on Amazon, Business and Life/Work:http://bit.ly/JeffBezosVid Bill Gates on Business, Microsoft and Early Life: http://bit.ly/BillGatesVid Video Segments: 0:00 Introduction 1:50 Careful with cash flow 2:25 Is cash flow the most important thing? 3:03 How did you educate yourself? 5:13 Beating the competition? 6:27 Yangtze river metaphor 7:33 Management style 8:52 Always half an hour early 10:27 Rich before 30 but unhappy 13:00 Leaving money to a foundation 13:47 Building the Tsz Shan monastery 14:40 Combining western and buddhist influences 17:05 Inequality in Hong Kong 18:47 When are you retiring? 21:46 Will it be the same without you? Interview Date: 29th June, 2016 Event: Bloomberg Original Image Source:http://bit.ly/LiKaShingPic Investors Archive has videos of all the Investing/Business/Economic/Finance masters. Learn from their wisdom for free in one place.

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Warren Buffett Is Selling His Newspaper Empire After Lamenting Industry Is ‘Toast’

Warren Buffett attends the Forbes Media Centennial Celebration at Pier 60 on September 19, 2017 in New York City.

Warren Buffett is getting out of the newspaper business. Berkshire Hathaway Inc. agreed to sell its BH Media unit and its 30 daily newspapers to Lee Enterprises Inc., which owns papers including the St. Louis Post-Dispatch, for $140 million in cash. Lee has been managing the papers for Buffett’s company since 2018, and Berkshire is loaning Lee the money for the purchase.

Buffett, who got a job delivering papers as a teenager and invested in the industry to capitalize on its one-time local advertising stronghold, lamented last year that most newspapers are “toast.” BH Media, which owns papers across the country, has been cutting jobs for years to cope with declining ad revenue.

“We had zero interest in selling the group to anyone else for one simple reason: We believe that Lee is best positioned to manage through the industry’s challenges,” Buffett said in a statement Wednesday.

In 2018, Buffett acknowledged that he was surprised that the decline in demand for newspapers hadn’t let up and that his company hadn’t found a successful strategy to combat falling advertising and circulation. That same year, U.S. newspaper circulation dropped to its lowest levels since 1940, according to the Pew Research Center.

The Lee sale will include Buffett’s hometown Omaha World-Herald and Buffalo News, a paper he’s owned for more than four decades, along with 49 weekly publications and a number of other print products, the companies said in the statement. Lee’s shares jumped on the news, more than doubling to $2.78 at 9:51 a.m. in New York.

Lee Loan

Berkshire is lending Lee $576 million at a 9% annual rate for the purchase and to refinance other debt. Excluded from the sale is BH Media’s real estate, which Lee is leasing under a 10-year agreement.

It’s a rare move for the conglomerate as Buffett has long said that he prefers to hold onto businesses. The newspaper deal, however, is Berkshire’s second divestiture in less than a year, including the sale of an insurance business in late 2019. Berkshire has held onto other old-fashioned businesses, including door-to-door vacuum-cleaner business Kirby Co. and encyclopedia publisher World Book.

Aside from a few bright spots, such as the largely thriving New York Times Co., the newspaper business is in crisis across the U.S. McClatchy Co. — which owns about 30 newspapers, including the Miami Herald and Charlotte Observer — is fighting to avoid bankruptcy as it contends with pension obligations and debt. The Salt Lake Tribune became a nonprofit last year, after failing to find a profitable business model.

As print advertising has cratered in recent years amid the rise of social media, Craigslist and search ads, private equity firms and hedge funds have swooped in to take advantage of newspapers’ steady though dwindling revenue streams.

New Media Investment Group Inc., controlled by private equity firm Fortress Investment Group LLC, bought USA Today owner Gannett Co. last year to form the largest U.S. newspaper chain. The deal spurred apprehension in journalism circles given New Media’s reputation for newsroom layoffs, though the new Gannett leadership pledged to avoid widespread job cuts.

––With assistance from Gerry Smith.

By Katherine Chiglinsky and John J. Edwards III / Bloomberg

January 29, 2020

Source: Warren Buffett Is Selling His Newspaper Empire After Lamenting Industry Is ‘Toast’

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Why Startup Entrepreneurs Need To Be More Like Reporters

Why Startup Entrepreneurs Need To Be More Like Reporters

Why Startup Entrepreneurs Need To Be More Like Reporters

The new marketing concept of brand journalism is the practice of covering your business and industry like a reporter. In other words, you’re transforming your marketing efforts into publishing efforts.

The big guys in your industry are likely already fully established. In fact, some are practicing this new style of content marketing so effectively you probably haven’t even noticed that their content is marketing driven.

Here are four tips on how you can get started:

1. Lose yourself.

We’ve been bombarded with “me” messaging for decades: My service, my product, my company. So people today innately tune “me” out. It is imperative you evolve from the “me” business that is common in public relations efforts. Try storytelling to attract, engage, entertain and inform your audience

2. Listen, learn and lead the conversation.

Now that you’ve decided to act like a reporter, do as they do: Listen. Learn the concerns and questions of your target audience. Then, instead of following the conversation and commenting on it, try leading it. You’ll be the one sparking engagement and identifying trends. After all, you know your business. Who better to comment on it than you? The idea is to focus less on “push” communications – such as e-mail marketing, direct mail and advertising – and move toward “pull.” You’ll find that it’s a better long-term strategy.

3. Drop the campaign speak, start talking.

Campaign-style content, where you proclaim the marvelousness of your products or services, won’t cut it any longer. Create a story that looks and feels like a real news story. And you never know, that story could turn into a real news article if it catches the attention of a real journalist. Also by getting in the thick of your industry, you’ll generate plenty of goodwill.

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4. Invite others to participate.

Ultimately, your end-goal should be to get people talking and sharing your content with others. In addition to engaging with readers through social media sites, you’ll want to invite others to contribute to your brand journalism efforts. Accepting contributors to your blog, website and social media outlets will grow that audience exponentially. The more you share with others and the more often you invite others to participate and converse with you, the more likely your content will be shared.

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Source: Jan 25: Why Startup Entrepreneurs Need To Be More Like Reporters

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As Angola Accuses Billionaire Isabel Dos Santos Of Fraud, Her Empire Begins To Unravel

SPIEF 2019: Russia's President Putin meets with management of foreign companies

Isabel dos Santos amassed an empire worth more than $2 billion as the daughter of Angola’s former longtime president. Now it looks like that empire is beginning to crumble.

On Wednesday—as the Attorney General of Angola held a press conference to provisionally charge Isabel dos Santos with embezzlement and money laundering, according to the BBC—a bank in Portugal where she has been a significant shareholder issued a statement saying that Dos Santos’ stake is being sold.

EuroBic, a small privately held bank in Lisbon in which Dos Santos has owned a 42.5% stake, issued a statement on Monday that it was severing its business relationship with Dos Santos and the entities related to her. On Wednesday EuroBic announced that Dos Santos had decided to sell her stake in the bank, which has about $8 billion in assets. Forbes recently valued Dos Santos’ 42.5% stake at around $200 million.

Dos Santos has come under intense scrutiny this past week after a number of media outlets, including the New York Times, the BBC and The Guardian, published articles based on the “Luanda Leaks”—a cache of some 700,000 documents related to Dos Santos’ allegedly corrupt business dealings that were released to the International Consortium of Investigative Journalists (ICIJ).

Dos Santos was appointed to head Angola’s state oil company, Sonangol, in 2016, when her father was still president of the country. (He retired in 2017 after ruling Angola for 38 years.)

According to an article in The Guardian, while Dos Santos was heading up Sonangol, she allegedly arranged for a transfer of $57 million on one day in November 2017 from Sonangol’s bank account to a Dubai company, Matter Business Solutions, run by Paula Oliveira, a woman who The Guardian says is apparently a close friend of Dos Santos’.

It turns out that the Sonangol bank account from which the funds were transferred was a EuroBic account. In its statement severing ties with Dos Santos, EuroBic also said that the payments ordered by Sonangol to Matter Business Solutions “respected the legal and regulatory procedures formally applicable . . . between this bank and Sonangol, namely those related to the prevention of money laundering.”

The BBC is reporting that an employee of EuroBic who managed the Sonangol account, Nuno Ribeiro da Cunha, 45, was found dead in Lisbon on Wednesday. A police source told the BBC that “everything points to suicide.”

Dos Santos issued a statement on Thursday saying, “The allegations which have been made against me over the last few days are extremely misleading and untrue,” and adding that “I am a private businesswoman who has spent 20 years building successful companies from the ground up,” and that “I have always operated within the law and all my transactions have been approved by lawyers, bankers, auditors and regulators.”

Forbes first dug into the murky origins of Isabel dos Santos’ fortune, with help from Angolan investigative journalist Rafael Marques de Morais, in an in-depth investigation in 2013. In late December 2019, an Angolan court issued a freeze of Dos Santos’ assets in Angola—assets that Forbes estimates are worth hundreds of millions of dollars. Most of Dos Santos’ fortune—which Forbes estimates at $2.1 billion—lies in assets held outside of Angola, primarily in Portugal.

The natural question: Will other Portuguese companies in which Dos Santos is a shareholder follow in EuroBic’s footsteps?

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I’m a San Francisco-based Assistant Managing Editor with a focus on wealth. I edit mostly, but also write about how the richest get wealthy and how they spend their time and their money. My colleague Luisa Kroll at Forbes in New York and I oversee the massive reporting effort that goes into Forbes’ annual World’s Billionaires List and the Forbes 400 Richest Americans list. The former gets me to use my rusty Spanish and Portuguese. In 2014, I won an Overseas Press Club award for an article I wrote about Saudi Arabian billionaire investor Prince Alwaleed bin Talal; I also won a Gerald Loeb Award with co-author Rafael Marques de Morais for an article we wrote about Isabel dos Santos, the eldest daughter of Angola’s President. Over 20 years my Forbes reporting has taken me to 17 countries on four continents, from the slums of Manila to palaces in Saudi Arabia and Mexico’s presidential residence. Follow me on Twitter @KerryDolan My email: kdolan[at]forbes[dot] com Tips and story ideas welcome.

Source: As Angola Accuses Billionaire Isabel Dos Santos Of Fraud, Her Empire Begins To Unravel

How This Entrepreneur Raised $1 Million and Is Leading an Energy Revolution Before Age 30

The path of the entrepreneur is a bold one. At every stage of the journey, you continually make bold decisions and take bold risks.

This has certainly been the case in my journey as a founder. We started a smart home company (in 2013) when everyone said we were crazy. We saw the vision and moved toward it in the face of uncertainty and risk.

When I was starting, I identified other leaders who were making bold decisions. It helped to feel like I was not alone along the path. I followed entrepreneurs accomplished their goals, and other young leaders blazing a new trail. I recently encountered an inspiring story that demonstrates just how bold we can be.​

Ugwem Eneyo is the co-founder and CEO of Shyft Power Solutions, an energy technology company that’s working to enable an energy revolution for underserved consumers in emerging markets. Eneyo, a graduate student at Stanford University, and a member of Forbes 30 under 30, has secured more than $1 million in funding from investors and participated in the 2019 Ameren Accelerator program. GreenBiz named her a 2019 VERGE Vanguard honoree to recognize her dedication to helping advance Nigeria’s energy infrastructure.

Personally, I feel inspired by Eneyo’s bold ambitions to create solutions in an emerging market with a nascent entrepreneurial system – especially in an industry as demanding as energy. I interviewed her to learn more about her role in energy, Shyft’s path to raising money and how accelerators can be a beneficial platform for entrepreneur success.

1. How did you get interested in energy technology?

Ugwem Eneyo: My family is from the Niger Delta, a region that suffered negative environmental and socioeconomic impacts as a result of the extractive industries. After directly seeing the challenges and how they affected my family and communities in the region, I became keenly interested in the nexus of energy, environment and development.

I actually spent years working as an environmental and regulatory advisor in the oil and gas sector, trying to mitigate the impacts and drive change from within the organizations. I eventually left to pursue my M.S. and Ph.D. in civil and environmental engineering at Stanford, still focused on the theme. Shyft Power Solutions is a byproduct of my work at Stanford.

2. How was your experience in your industry different as a Nigerian-American?

Eneyo: There’s an increasing interest within the industry around solving energy challenges in Nigeria and, more broadly, emerging markets. The local knowledge is often an overlooked critical asset in doing so.

My previous work in the industry, and in emerging markets, shows that it’s often non-technical issues that cause projects to be delayed or fail. The intimate local knowledge allows for an understanding of people’s values, culture and thought processes, and that can better inform how we solve problems and how we deliver solutions. This has certainly been the case with Shyft Power Solutions.

3. What approach did you take when raising money for your business?

Eneyo: In the early stage, I leveraged grants and non-dilutive capital, given the longer and more capital-intensive development timeline for building industrial-grade hardware. We also raised traditional venture capital, as well as funding from strategic corporate investors.

The corporate venture capitalists played a key role in our fundraising strategy, as they often had more market knowledge and connections, which complemented the primarily U.S.-based traditional venture capital. And Shyft Power Solutions received $100,000 in seed capital through our participation in the Ameren Accelerator this year.​

4. How did your experience with the 2019 Ameren Accelerator program advance/benefit your business? What’s your relationship with Ameren and the accelerator now that the program has ended?

Eneyo: The Ameren Accelerator, alongside the Ameren employees who served on champion teams as mentors, provided important technical and business development expertise that offered valuable and unique insight into how Shyft’s platform can add value to utilities at scale. Part of our longer-term planning required Shyft to have better insight into utilities, and we were able to leverage Ameren in the process.

Although the accelerator has ended, my team and I have remained in contact with many of our technical champions, who still provide advice and references. Additionally, the accelerator program team has remained supportive, still introducing us to valuable startup resources.​

5. How do you see the energy technology industry changing? What changes would you like to make?

Eneyo: In emerging markets, there will be a leapfrog over traditional central energy infrastructures; instead, we will see digitization and decentralization of energy infrastructure that may work alongside whatever central grid is available. The flexible and intelligent use of distributed energy resources will be necessary to make this possible, and Shyft is developing the technology to do so.

I want to see clean, reliable, and affordable energy for all — urban and rural — and want to see energy demands being met by rapidly growing emerging markets. I’m excited to be leading an organization that’s at the forefront of this energy transition in markets like Nigeria.

By Andrew ThomasFounder, Skybell Video Doorbell

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Source: How This Entrepreneur Raised $1 Million and Is Leading an Energy Revolution Before Age 30

This London Tycoon Harbors A Surprisingly Shady Past

Tej Kohli’s name is up in lights in Paris, flashing on the walls in giant, bold type inside the new high-ceilinged headquarters of French e-sports Team Vitality, a 20-minute walk from the city’s Gare du Nord train station. Some of Europe’s top video game players, influencers, journalists and sponsors have arrived on this November day to buoyantly pay tribute to Kohli, a U.K.-based, Indian-born entrepreneur, now heralded as the lead investor in the e-sports team. Team Vitality has raised at least $37 million and scored partnership deals with Adidas, Renault, telecom firm Orange and Red Bull, with a stated goal to become the top team in European competitive gaming.

E-sports, Kohli proudly tells Forbes, “encompasses the entire spectrum of business … [and is] not very different from other things we do in technology.” His wavy mane of dark hair stands out in the room like a beacon, as he beams amid the buzz and recognition.

London is home to 55 billionaires, with more on the outskirts, and they generally fall into two camps: those who completely shun publicity, and those, like Richard Branson and James Dyson, who enthusiastically embrace it. Kohli, who lives in a multimillion-dollar mansion in leafy Henley-on-Thames, aspires aggressively to the latter. In April, Kohli told the FT’s How To Spend It supplement that, “Sometimes in business it’s important to show you can sell yourself by way of your lifestyle.” His website describes him as “Investor, Entrepreneur, Visionary, Philanthropist,” with photos of an apparent property portfolio, with about half a dozen apartment buildings in Berlin, one in India and an office tower in Abu Dhabi. He claims to be a member of two exclusive London private clubs, 5 Hertford Street and Annabels, and publicly gives tips on “foie gras … roast chicken” and places where “the steaks are huge.”

Kohli has employed a large coterie of PR consultants and actively courts the media, pushing grand visions that back up this image. In a 2013 article he wrote for The Guardian, he offers advice on how to get a job in the tech industry (“Learn to code”). In 2016 he told a Forbes contributor: “The one mission that every entrepreneur has, as a person rather than as an entrepreneur, is to extend human life.” And his Tej Kohli Foundation Twitter bio brags that “We are humanitarian technologists developing solutions to major global health challenges whilst also making direct interventions that transform lives worldwide.” A press release issued in mid December boasted of more than 5,700 of the world’s poorest receiving “the gift of sight” in 2019 at Kohli’s cornea institute in Hyderabad, India.


Kohli also aspires to be validated as a billionaire. Over the past two years, his representatives have twice reached out to Forbes to try to get Kohli included on our billionaires list, the first time saying he was worth $6 billion—more than Branson or Dyson—and neither time following up with requested details of his assets. (Kohli’s attorneys now claim that “as a longstanding matter of policy,” Kohli “does not, and has never commented on his net worth,” suggesting that his representatives were pushing for his billionaire status without his authorization.)

There may be good reason for his reticence. It turns out that Kohli—who in a July press release describes himself as “a London-based billionaire who made his fortune during the dotcom boom selling e-commerce payments software”—has a complicated past. Born in New Delhi in 1958, Kohli was convicted of fraud in California in 1994 for his central role convincing homeowners to sell their homes to what turned out to be sham buyers and bilking banks out of millions of dollars in loans. For that he served five years in prison.

Kohli then turned up in Costa Rica, where he found his way into the world of online gambling during its Wild West era in the early 2000s. He ran online casinos, at least one sports betting site, and online bingo offerings, taking payments from U.S. gamblers even after U.S. laws prohibited it, according to seven former employees. He was a demanding, sometimes angry boss, according to several of these employees.

A spokesman for Kohli confirmed that he ran an online payments company, Grafix Softech, which provided services to the online gambling industry, between 1999 and 2006—and that he acquired several distressed or foreclosed online gaming businesses as a limited part of the company’s portfolio. “At no point was any such business operated in breach of the law,” Kohli’s representative said in a statement.                   

Though his representative claims that Kohli has had nothing to do with Grafix since 2006, Forbes found more than a dozen online posts or references (some deleted, some still live and some on Kohli’s own website) between 2010 and 2016 that identify Kohli as the chief executive or leader of Grafix Softech—including the opinion piece that Kohli wrote for The Guardian in 2013.                        

Even in a world of preening tycoons, this juxtaposition—the strutting thought leader who actively gives business advice while he just as actively tries to stifle or downplay any sustained look into his business past—proves eye-opening.

According to Kohli’s back story, he grew up in New Delhi, India, and he has told the British media that he’s the son of middle-class parents. Per his alumni profile for the Indian Institute of Technology, Kanpur (about 300 miles southeast of New Delhi), Kohli completed a bachelor’s degree in electrical engineering in 1980 and developed “a deep passion for technology and ethical and sustainable innovation.”

At some point, he wound up in California, and set up a “domestic stock” business called La Zibel in downtown Los Angeles. Kohli still uses the Zibel name for his real estate operations today. By the end of the 1980s, Kohli was presenting himself as a wealthy real estate investor who purchased residential properties in southern California to resell for profit. The truth, according to U.S. District Court documents, was that from March 1989 through the early 1990s Kohli, then reportedly living in Malibu, had assembled a team of document forgers and “straw buyers” to pull off a sophisticated real estate fraud.

Source: This London Tycoon Harbors A Surprisingly Shady Past

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… a scalable, accessible and affordable technology solution to end corneal blindness worldwide. VIDEO: Wendy & Tej Kohli Discuss The Mission And Purpose Of The Tej Kohli Foundation https://www.businesswire.com/news/hom…

How Your Definition Of Entrepreneur Can Limit Your Success

The word entrepreneur is used so often in so many different contexts these days that pinning it down is virtually impossible.  Everyone has their own definition, and the one you adopt—or unconsciously accept—can determine your aspirations, dictate your behavior, and in some instances cause you to underperform or fail outright. It’s a classic self-fulfilling prophecy—you’re likely to get what you expect to get.

Among the many definitions of entrepreneur, six currently dominate the popular press, the how-to literature and business education—and loom large in the popular imagination. Each definition, in its own way, can be both empowering and pernicious. Here’s what to look out for:

The Noble Founder.  This would appear to be the simplest definition of all: if you start a business, you’re an entrepreneur, regardless of whether it succeeds. Today, there are over 16 million people attempting to start over nine million businesses in the U.S. But even this apparently simple definition brings with it some significant psychological baggage.  People who associate themselves with this definition often feel a deep sense of pride in their willingness to even try to start a business.  But that understandable pride in taking on the struggle can also mean a too easy acceptance of poor results. Inside the noble founder lurks the noble failure.

The Self-Made Success. Some definitions bestow the title of entrepreneur only upon people who have started a successful business, or at least one from which they earn a decent living. People who see themselves this way can feel a bit proprietary about the definition. To them, everyone who is struggling to make a living is merely an “aspiring” entrepreneur.

Only 30 to 40 percent of startups ever achieve profitability. In the world of Silicon Valley high-risk startups, the chances of reaching profitability plummet to less than one in a hundred. The self-identity of people who feel success is an essential part of what it means to be an entrepreneur are proud of the self-sufficiency they achieve or at least seek. They are more likely than noble founders to keep their eye on the bottom line, but they also can be overly fearful of risk and can underperform in terms of innovation.

The Entrepreneur by Temperament.  In this view, entrepreneurship is a state of mind. It can apply equally to people starting a business or people working in corporate settings. It’s all about mindset: such people “make things happen,” “push the envelope,” or refuse to stop until they get what they want. It is the broadest of definitions. In fact, Ludwig Von Mises, a member of the Austrian school of economics, theorized that since we all subconsciously assess the risks of our actions relative to the rewards we expect to receive, we are all entrepreneurs. Because this definition applies to everyone, anyone can delude themselves into believing they are an entrepreneur. You don’t even have to start a business. You just have to behave a certain way, let the chips fall where they may.

The Opportunist Par Excellence. For at least a century, entrepreneurs have described themselves as having the ability (a skill, not a state of mind) to “smell the money.” There are indeed many entrepreneurs who proudly identify their ability to spot money-making opportunities. But it wasn’t until the economist Israel Kirzner, in the mid-1970s, described the core of entrepreneurship as opportunity identification that academics began to study it as a process and a skill. Entrepreneurial education today is often targeted at teaching opportunity identification skills.

What is interesting is that there is no strong evidence, after several different studies, that entrepreneurial education actually results in students or attendees having a significantly higher chance of reaching profitability. Perhaps opportunity-spotters can overextend themselves by doing multiple startups or product launches simultaneously, a problem that can be compounded by a lack of synergy among these disparate efforts.

The Risk-taker: Frank Knight, one of the founders of the highly influential Chicago school of economics, drew an illuminating distinction between risk and uncertainty. With risk you can predict the probability of various unknown outcomes of business decisions. With uncertainty you not only don’t know the outcomes but also you don’t know the probability of any particular outcome occurring. In other words, risk can be managed, but uncertainty is uncontrollable. Knight argued that opportunities for profit come only from situations of uncertainty.

To succeed as an entrepreneur, you must therefore seek out uncertainty. Today, few entrepreneurs know of Knight’s thesis, but many nonetheless proudly describe themselves as “risk-takers.” This identity can lead to taking on more risk than necessary, especially when you see all risk as good and see yourself as an adventurer into the unknown. You would be better advised to think of your adventures as a series of small calculated experiments that turn the greatest uncertainties into knowable risks.

The Innovator: Joseph Schumpeter’s description of entrepreneurs as innovators who participate in the creative destruction that constantly destroys old economic arrangements and replaces them with new ones has appealed to many observers, including economists. That concept is often naively married to Clay Christensen’s notion of disruptive innovation of industries and markets.

See, for example, Zero to One by PayPal cofounder Peter Thiel. This fetishizing of disruption has led many entrepreneurs to invoke the concept of innovation in support of whatever they want to do, no matter the effects it might have on society like creating a “gig economy” of low-paid workers. Seeing yourself as an innovator and regarding innovation as an unquestioned good is arguably one of the most dangerous definitions of all because it simultaneously encourages great boldness and justifies equally great moral blindness. It also results in passing over opportunities to create valuable and socially beneficial businesses that were less than truly disruptive.

All of these definitions of entrepreneur are self-limiting. How you define yourself as an entrepreneur also defines what actions you’ll take to view yourself as deserving of the title. But the only two things academics have ever been able to show conclusively correlate to entrepreneurial success (measured generally) are years of schooling and implicit, core motivations that align with feeling good about getting things done (known as “need for accomplishment”). Pinning your identity to any of the current definitions of entrepreneur will only set you back.

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I am a successful entrepreneur who researches and teaches entrepreneurship, creativity and innovation, at Princeton University. My two bestselling books on entrepreneurship, “Building on Bedrock: What Sam Walton, Walt Disney, and Other Great Self-Made Entrepreneurs Can Teach Us About Building Valuable Companies” (2018) and “Startup Leadership” (2014) focus on what it really takes to succeed as an entrepreneur and the leadership skills required to grow a company. Prior to joining the Princeton faculty, I was founder and CEO of iSuppli, which sold to IHS in 2010 for more than $100 million. Previously, I was CEO of global semiconductor company International Rectifier. I have developed patents and value chain applications that have improved companies as diverse as Sony, Samsung, Philips, Goldman Sachs and IBM, and my perspective is frequently sought by the media, including the New York Times, Wall Street Journal, Economist, Bloomberg BusinessWeek, Nikkei, Reuters and Taipei Times.

Source: How Your Definition Of Entrepreneur Can Limit Your Success

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When we help youth to develop an entrepreneurial mindset, we empower them to be successful in our rapidly changing world. Whether they own a business or work for someone else, young adults need the skills and confidence to identify opportunities, solve problems and sell their ideas. This skillset can be encouraged and developed in elementary schools, with the immediate benefit of increased success in school. In this talk, Bill Roche shares stories of students that have created their own real business ventures with PowerPlay Young Entrepreneurs. He illustrates the power of enabling students to take charge of their learning with freedom to make mistakes, and challenging them to actively develop entrepreneurial skills. Bill also showcases the achievements of specific students and shares how a transformative experience for one student has been a source of inspiration for him over the years. Bill Roche specializes in designing curriculum-based resource packages related to entrepreneurship, financial literacy and social responsibility. Bill worked directly in Langley classrooms for over ten years and now supports teachers throughout the country in creating real-world learning experiences for their students. Over 40,000 students have participated in his PowerPlay Young Entrepreneurs program. The program’s impact has been captured in a documentary scheduled for release early in 2018. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx

Elon Musk Buys Out the Neighbors

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Elon Musk, the high-profile billionaire who has placed bold bets on driverless cars and space flights, is known for his over-the-top antics: He appeared in a Los Angeles court earlier this week, telling a jury that a Twitter message he sent suggesting a Thai cave rescuer was a pedophile wasn’t meant to connote the word’s dictionary definition and was in response to what he viewed as an unprovoked attack.

But when it comes to his personal real estate, Mr. Musk uses the same strategy adopted by a number of the mega-wealthy: buy up the neighborhood.

Over the last seven years, Mr. Musk and limited-liability companies tied to him have amassed a cluster of six houses on two streets in the “lower” and “mid” areas of the Bel-Air neighborhood of Los Angeles, a celebrity-filled, leafy enclave near the Hotel Bel-Air.

Those buys—plus a grand, 100-year-old estate in Northern California near the headquarters of Tesla, the electric car concern he heads—means Mr. Musk or LLCs with ties to him have spent around $100 million on seven properties. He didn’t respond to requests for comment.

In 2012, after three years of renting it, Mr. Musk bought a 20,248-square-foot white stucco Colonial mansion, according to Brian Ades, a real-estate agent with Sotheby’s International Realty who represented Mr. Musk in his purchase of the Los Angeles home. Limited-liability companies with ties to Mr. Musk own two other houses on that same street, records show, including a ranch house once owned by actor Gene Wilder. The ranch was turned into a private school, other records show; in an interview on BTV (Beijing Television) published on YouTube, Mr. Musk said he created the school for his five sons.

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In 2015 came additional purchases that shifted to an adjacent street up a steep canyon. Duck Duck Goose, a limited-liability company that shares its addresses with the Musk Foundation and the headquarters of SpaceX, the rocket company where Mr. Musk is CEO, bought a modest ranch house for $4.3 million. A year later, another LLC tied to Mr. Musk bought a large, unfinished, white contemporary three doors down, and then, a little more than two years later, a different LLC also registered to the SpaceX headquarters address snagged a white brick Colonial next to that. All three houses sit on a cul-de-sac of five homes, making neighbors wonder whether Mr. Musk—or SpaceX—is trying to take over the whole end of the street.

The buy-out-the-neighbors approach is a familiar one among the mega wealthy, including tech billionaires. Facebook CEO Mark Zuckerberg paid more than $50 million for five homes in Palo Alto, Calif., while the Mercer Island, Wash., compound of the late Microsoft co-founder Paul Allen comprised 13 different adjoining lots and included eight houses.

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A number of Mr. Musk’s purchases appear to be appreciating. Prices have grown in the neighborhood since his first purchase, with record sales prices in recent months, says Sally Forster Jones, executive director of luxury estates at real-estate firm Compass. One real-estate agent believes the homes are to accommodate employees and associates of Mr. Musk’s various businesses, while some neighbors said they think he wants to build a tunnel connecting his properties on the two different roads.

In December 2018, Mr. Musk mortgaged five of his homes (four in Los Angeles, one in Northern California) to Morgan Stanley Private Bank for a total of $61.3 million, according to recorded deeds.

Here is a rundown of Mr. Musk’s portfolio:

Los Angeles 

  • Purchased in May 2002 for $5.4285 million.
  • Sold in March 2011 for $6.453 million
  • 6,500 square feet, four bedrooms, six bathrooms

Elon Musk bought this house in Bel-Air when he was married to Justine Musk, whom he met while attending Queen’s University in Ontario, Canada. In her blog, which is filled with tales of clubbing, celebrities and parties, Ms. Musk said the house took two years to find, and the couple stayed at the Mondrian and the Hotel Bel-Air on house-hunting trips. She said neighbor Joe Francis, founder of the raunchy video series Girls Gone Wild, attended parties at their home and is “eccentric, charming when he wants to be.” “We hung out constantly,” said Mr. Francis, who confirmed that he lived next door.

After Ms. Musk received the house in the divorce, she wrote in her blog that her financial adviser and business manager told her she had to sell it and “fire half your domestic staff.” She sold it in 2011 for $6.453 million to George McCabe, the founder of a Boston-based investment firm, or as Ms. Musk described it in her blog, to “nice young man from the east coast who plans to use it as a second home.” Ms. Musk didn’t respond to requests for comment.

Los Angeles

  • Purchased in December 2012 for $17 million.
  • Estimated current value: $22.3 million per Zillow
  • 20,248 square feet, seven bedrooms, 13 bathrooms

The Elon Musk Revocable Trust bought this mansion from Mitchell Julis, co-founder of hedge fund Canyon Capital Advisors, according to public records. The 1.7-acre property overlooks Bel-Air Country Club, according to the listing, and includes a lighted tennis court, five garages, a pool and spa, gym and guest quarters. The house, resembling a French country estate, has a wine cellar that holds 1,000 bottles of wine and a two-story library.

The purchase was later transferred to an LLC called Callisto that is linked to Mr. Musk. Mr. Musk’s decision to buy multiple houses was “motivated by utility,” since he has a big family and staff and puts up a lot of visitors, said Mr. Ades, the real-estate agent. He added that Mr. Musk was “ahead of his time,” since the real-estate prices in that part of Bel-Air have skyrocketed. According to the L.A. Department of Building and Safety records, in 2014 Mr. Musk put in new French doors in the master suite, remodeled the master closet and bathroom and remodeled the kitchen.

Los Angeles

  • Purchased in October 2013 for $6.75 million.
  • Estimated Current Value: $7.8 million per Zillow
  • 2,756 square feet, three bedrooms, three bathrooms

The Elon Musk Revocable Trust bought this house for $6.75 million, considerably less than its original listing price of $7.995 million, records show. The three-bedroom ranch house with a guest cottage, right above the Bel-Air Country Club, was once owned by Mr. Wilder, who bought it in 1976 for $314,000. It was later transferred to an LLC associated with Mr. Musk.

Ad Astra, the school Mr. Musk started for his five sons (a pair of twins and a set of triplets), was registered at this address, though the school’s address has since been switched to a building partially leased by SpaceX in Hawthorne, Calif., about 17 miles away. According to the admissions page on its website, the school, founded in 2014, is for students between 8 and 14 years old and is focused on problem solving, ethical thinking and collaboration. For admissions for this school year, applicants had to solve problems, such as picking one of 11 planets for a new home for humans, or deciding who is to blame for the death of a lake from pollution.

Los Angeles

  • Purchased in July 2015 for $20 million.
  • Estimated Current Value: $20 million per Zillow
  • 7,026 square feet, six bedrooms, eight bathrooms

Originally built in 1954, this house was altered in 2009, according to public records. It sold for $1.825 million in 1998 and then for $2.49 million in 2002 before an LLC called Camellia Ranch bought it in 2015 for $20 million. The mailing address for Camellia Ranch is SpaceX’s headquarters, and it shares a P.O. box with Excession LLC, Mr. Musk’s family office. Jared Birchall, who works for Mr. Musk, is listed as an authorized signatory.

Hillsborough

  • Purchased in June 2017 for $23.364 million.
  • Estimated Current Value: $27.2 million per Zillow
  • 16,000 square feet, 10 bedrooms, 9 bathrooms

Known as de Guigne Court, this 100-year-old mansion sits on 47.4 acres and has bay views, a pool, hiking trails and a ballroom. When the property was first marketed in 2013, its seller Christian de Guigne IV, 78, had made any sale contingent on him retaining a life estate in the property, which would give him exclusive use of it during his lifetime. The estate was then taken off the market, then put back on with the contingency removed.

Located on a leafy hilltop roughly 20 minutes south of San Francisco and north of Silicon Valley, the property has been in the same family for 150 years. Mr. de Guigne’s grandparents built the approximately 16,000-square-foot Mediterranean-style home; the family said it was designed by San Francisco architects Bliss & Faville (who also designed the St. Francis Hotel) around 1912. The main house includes a ballroom, a flower-arranging room, five bedrooms, seven full baths and two half baths. A staff wing has six bedrooms and three baths. A pavilion with 18th-century Chinese wallpaper overlooks the pool.

By the time an LLC tied to Mr. Musk bought the house for $23.364 million in 2017, it was a third of its original $100 million price. The only permit recorded since Mr. Musk bought the house was in October 2018, for removing and replacing kitchen cabinets. Greg Goumas, with Sotheby’s International, says the house was in its “original condition” when it sold and was in need of significant modernization.

Brentwood

  • Purchased by an LLC tied to then-wife Talulah Riley in August 2014 for $3.695 million.
  • Sold in August 2019 for $3.925 million
  • 3,000 square feet, four bedrooms, four bathrooms

In August 2014, a year after Mr. Musk married Ms. Riley (an actress who appeared in the 2005 film Pride & Prejudice) for the second time, an LLC tied to her bought this house for $3.695 million, according to records. Built in 1959, the four-bedroom, white, mid-century modern home has floor-to-ceiling windows that curve around a crescent-shaped saltwater pool and ocean views, according to the listing. The couple later divorced.

The house went on sale in February 2019 for $4.5 million and sold in August 2019 for $3.925 million.

Los Angeles

  • Purchased in July 2015 for $4.3 million.
  • Estimated Current Value: $4.9 million per Zillow
  • 2,963 square feet, four bedrooms, four bathrooms

On a recent late Sunday morning, the grounds of this half stucco, half stone, one-level white house looked unkempt, with a scruffy, bush-filled front yard, a stained glass window, a clay rabbit and dead plants in pots by the front door. Seven large trash bins sat outside the garage, a common sight, according to neighbors, who also said that last February the house was lit up with pink lights for Valentine’s Day. Neighbors said there appeared to be people at the home sometimes, but it didn’t appear anyone was living there full-time.

Duck Duck Goose, an LLC with ties to Mr. Musk, paid 10% above the original asking price, according to public records. Photos from the 2015 sales listing show a brick patio and a grassy back yard overlooking the canyons, rooms with pink walls, floral wallpaper and blue floral wall-to-wall carpets, and a wood-paneled living room.

Los Angeles

  • Purchased in September 2016 for $24.25 million.
  • Estimated Current Value: $27.3 million per Zillow
  • 9,309 square feet, six bedrooms, seven bathrooms

An LLC tied to Mr. Musk bought this contemporary made up of geometric masses, one with two-story glass windows. It sits behind a frosted glass wall. Neighbors said the property is frequently the site of construction, which started in 2011; the L.A. Department of Building and Safety has pages and pages of permitting record documents associated with the property, including one for a residential elevator and another for a fire-sprinkler system.

Los Angeles

  • Purchased in January 2019 for $6.4 million.
  • Estimated Current Value: $4.2 million per Zillow
  • 3,943 square feet, four bedrooms, three bathrooms

The 1958 Frankel Family Trust sold this home to Wyoming Steel LLC for $6.4 million on Jan. 15, 2019, records show. The address for Wyoming Steel is shared with SpaceX’s headquarters. The home is a two-story, white brick Colonial house, with shutters, a pool and a brick front walkway lined by a white picket fence.

By: Nancy Keates

Source: https://www.wsj.com/news/author/nancy-keates

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Elon Musk | The Rich Life | Forbes 23.7 Billion Dollar Net Worth SUBSCRIBE: http://bit.ly/2z9TmzZ JOIN AS A MEMBER: https://bit.ly/2MgeEDC Support The Channel on Patreon: https://www.patreon.com/mccrudden SHOP MERCH @ https://www.michaelmccrudden.com/ When you’re rich like Elon Musk (Tesla and Space x) you don’t just buy a house in Bel Air, you buy up a neighborhood. After securing his first Bel Air address in 2012 for a cool $17 Million he went ahead and bought up all the neighboring mansions scooping up a total of 6 properties to a sum of $80 Million dollars. #elonmusk #cybertruck #therichlife #michaelmccrudden #tesla #networth #forbes

The Entrepreneur Diaries: Anit Hora

In 2007, Anit Hora quit her dream job with no safety net, no backup plan and no idea of what she was going to do next.

After graduating with a degree in fashion design Hora landed a high paying gig as a designer for a major label in New York City. She was earning a good salary, had great benefits, strong job security, enjoyed her work and was getting promoted on a regular basis. Seven years into her seemingly perfect career, however, Hora found herself thinking, “This can’t be it.”

“I did love my job, but I didn’t love it enough to not want to try something new,” she says. “I worked as a full-time knitwear designer when I started making my own products. When demand started to grow, it became more difficult for me to balance everything.”

Hora eventually couldn’t keep up with the pace of a day job and creating her own products, so she took off on a three-month backpacking trip around South America while she considered her next career move. As she traveled, volunteered and taught, Hora fell in love with the lifestyle and ended up staying for over a year and a half. “That’s when I realized that maybe the nine-to-five life isn’t for me,” she says.

But Anit says it wasn’t simple or easy to make the choice to leave her job and travel, especially financially. “Taking the leap is difficult but freeing at the same time. My best advice is to have a well-organized strategy, both financial and otherwise, ready for when you decide to quit your 9-5 and dive headfirst into your company.”

The trip taught Hora how different life was outside the big city. For example, she says she had very little patience for illness in her corporate life; the moment she felt sick in New York she’d race to get a prescription for antibiotics and try to return to work as quickly as possible.

It wasn’t until she came down with an illness in South America and tried to do the same that she realized this wasn’t normal behaviour. “They all looked at me like I was crazy,” she says. “They were like, ‘why would you want such a strong medicine?’”

That’s when Hora fell in love with herbal teas and natural medicines, which she studied formally upon her return to New York in 2008; first in classes at the Open Centre, then during an apprenticeship at an apothecary in Brooklyn.

She even started selling her natural health products at local craft fairs but eventually discovered they weren’t the natural products customers were looking for.

“Every time I’d go to sell them, these women would come up to me and ask for skincare and makeup stuff,” she says. “They’d come to me and be like ‘I’d buy this if you had this for face or hair or nails,’ and I thought, ‘yeah, I’d probably use that too.’”

In 2009 Hora enrolled in the Aveda Institute in New York City where she pursued her aesthetician’s license, but her savings were starting to dry up. At the same time, she needed money to buy supplies, create a website and build her new brand, Mullein and Sparrow.

To make ends meet Hora took up a day job at a spa while attending taking classes in the evenings and on weekends, building her business in what little time remained.

“I wasn’t sleeping very much in those days,” she says. “I don’t remember having any time for a social life or seeing friends, I remember being in complete isolation from everyone I knew, but it was so exciting that I didn’t see it like that.”

Image result for Anit Hora"

After years of balancing work, school and entrepreneurship Hora got the opportunity she had been waiting for in 2014, when she received an email from a representative at one or her favorite retail chains, Anthropologie. “That was such a surreal moment for me,” says Hora. “I was like ‘how did you even find me?’”

The company was interested in selling her products in their stores, but Hora couldn’t fulfill an order of that size from her home studio, so she started looking for a line of credit and a new workspace. Even with her purchase order, Hora couldn’t get her bank to provide the capital she needed. The demand was there, but it still took time for her to develop the bandwidth to fulfill a big order.

In reflection, she says she should have put more thought into financial planning. “I would have put more thought into my budget. Organization is not my strong suit so I would have brought someone on early on to help me allocate my resources more efficiently.”

Today, M.S. Skincare has products in a range of small boutiques and major retailers around the world, including Urban Outfitters, Free People, Nordstrom, Steve Allen and Anthropologie. But the greatest validation, according to Hora, happened when she was selected for an entrepreneurship fellowship from the Tory Burch Foundation as well as Goldman Sachs’ prestigious 10,000 Small Businesses Program, despite having no formal business training.

“There’s a lot of self-doubt that comes from doing this, especially if you spend the first few years by yourself figuring it out,” she says. “You just have to believe you can do it, and keep that sense of stubborn optimism.”

By Ally Financial

Source: https://time.com

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Anit Hora found herself immersed in the corporate fashion world, she realized something was missing in her life. Rather than feeling invigorated by her demanding job, she felt disconnected and burned out. Determined to find out what that missing link was, Hora made a huge change: She quit her job and embarked on a solo backpacking trip through South America to do some soul searching. Flash forward several years, and Hora is a successful esthetician and herbalist, and the founder of Mullein & Sparrow — a line of vegan and organic bath, body and skincare products based in Brooklyn, New York. Sponsored by Pronamel. Download the Bustle App for more stories like these everyday: http://apple.co/1ML4jui Our Site: http://www.bustle.com Subscribe to Bustle: http://bit.ly/1IB6hbS Facebook: https://www.facebook.com/bustledotcom/ Twitter: http://twitter.com/bustle Instagram: http://instagram.com/bustle Pinterest: http://www.pinterest.com/bustledotcom/

 

It Took Canva a Year to Make Its First Technical Hire. Now It’s a Hiring Machine

Plenty of entrepreneurs adhere to the mantra of “hire slow, fire fast” and for good reason. Then there’s Melanie Perkins, the co-founder and CEO of Sydney-based design software company Canva. She spent a year trying to find her first technical hire.

While Perkins didn’t intend to spend so much time filling her first engineering position, looking back on it now, she wouldn’t have done it any other way. The year-long quest informed how she’s made every other hire since. And it’s hard to argue with the results: With 700 employees, Canva is a hiring machine, and it’s been doubling in size every year.

In an industry that sees engineers switch jobs with frightening speed, many of Canva’s early technical hires are still with the company. While Canva won’t discuss revenue, Perkins, the company’s co-founder and CEO, says the company has been profitable since 2017. Canva has 20 million monthly users in 190 countries. In October, Canva announced an $85 million investment, with a valuation of $3.2 billion.

This is going to be bigger than yearbooks

When Perkins started the predecessor company to Canva in 2007, she was just 19. She was frustrated by how hard it was to use design software. When she started teaching design at university, she noticed that her students were similarly frustrated. With her boyfriend (now fiance), Cliff Obrecht, she built a website called Fusion Books that helped students design and publish yearbooks.

It did well–becoming the largest yearbook company in Australia and moving into France and New Zealand. Perkins quit university to work on it full-time. By 2011, Perkins and Obrecht realized Fusion Books could be much more: an engine to make it easy for anyone to design any publication. But to build that more ambitious product, they’d need outside investment.

Perkins headed to San Francisco to visit angel investor Bill Tai, who is known for making about 100 investments in startups that have yielded 19 initial public offerings. She’d met him in Perth a year earlier, where she had collected an award for innovation. “If you come to California, come see me,” he remembers telling her. “Without me knowing exactly what she was doing, she engineered a trip. She’s a very ballsy woman, if that makes sense. And I’m thinking, you know, I should help her. I know hundreds of engineers.”

Early in her San Francisco visit, Tai introduced her to Lars Rasmussen, the co-founder of the company that became Google Maps. Tai told her that if she could hire a tech team that met Rasmussen’s standards, he’d invest. “I didn’t realize at the time what that meant,” says Perkins. She bought an Ikea mattress, and planted it on the floor of her brother’s San Francisco apartment. “Obviously, that was free rent,” she says. “I had food to get by and I felt safe.”

Perkins set out initially to hire by doing the obvious: She went to every single conference she could get into. She’d speak if the organizers let her. Tai invited her to his MaiTai Global networking event in Hawaii, even though, for most attendees, a big draw was kitesurfing, which she’d never attempted. “It was great fun,” she says gamely. Then, “I really don’t like it. I have the scars to prove it. I’ve … retired from kitesurfing.”

Back in San Francisco, Perkins passed out flyers, trying to pique people’s interest. She cold-called engineers, and approached suspects on buses. She scoured LinkedIn, but Rasmussen wouldn’t even deign to meet most of her finds. “He didn’t think they had enough startup gumption or experience with a world-scale company, or with complex technology,” she said. She says fewer than five LinkedIn finds ended up interviewing with Rasmussen. He’d give them a problem-solving challenge that, inevitably, they flubbed.

After a year of this, Perkins was thoroughly frustrated. Surely it’s better to at least make some progress, she told Rasmussen, than to continue to do nothing. But he was adamant.

The perfect candidate and the bizarre pitch deck

That same year, Rasmussen introduced her to two candidates that he thought might be a good fit and recruitable. The first, Cameron Adams, a user interface designer who had worked at Google, was busy trying to raise money for his own startup. The second, Dave Hearnden, a senior engineer at Google, initially said he wasn’t interested. In 2012, both had a change of heart.

“We were absolutely over the moon,” says Perkins. Adams came on board first, as a co-founder. Hearnden, on the other hand, started to have second thoughts: Google wasn’t happy with his leaving, obviously, and was trying to get him to stay. He worried that his project would be abandoned without him, and he didn’t want to disappoint his team.

At this point, Perkins sent him something that has since become known as the Bizarre Pitch Deck. In 16 slides, the deck tells the story of a man named Dave, who longed for adventure but was torn by his loyalty for Google. In the pitch deck, as in life, Dave eventually joined Canva. It helped that Google had already poached his replacement.

In 2012, Perkins was able to raise a seed round of $1.6 million, and got another $1.4 million from the Australian government. Tai finally agreed to put in $100,000. “It was really hard for her to raise,” he says. “You’ve got a young girl in her 20s from Australia who had never worked at a company, with her live-in boyfriend as COO. People would say to me, What if they break up? I didn’t have a good answer.” Now, things look much different: Tai says Obrecht is Canva’s “secret weapon,” and that “Cliff has just blown me away.”

Keeping the bar high, hundreds of hires later

While Tai drove her nuts at the beginning, Perkins appreciates his stubbornness now. “We’ve been able to attract top talent across the globe,” she says. “It wouldn’t have been possible without setting such a high technical bar early on.” Tai says he hasn’t made exactly this condition with other startups. But he’s done it in reverse: He’s backed highly technical people without knowing what, exactly, the business opportunity would turn out to be.

The experience also showed her, the hard way, just how much effort she’d have to put into hiring if she wanted to build a successful tech company. By Canva’s second year, the company had a recruiting team. “We knew we needed to invest heavily in hiring,” she says. Now, each open position gets a strategy brief. That document lays out the goals for the person in that role and the project they will be working on. It also identifies the people who will be involved in the hiring process. “Getting everyone on the same page is really critical,” says Perkins. “It sets that person up for success.”

And like Rasmussen looking for the first technical hire, Canva asks each candidate to take a challenge. Candidates have a choice of doing a four-hour challenge or a one-hour challenge. “Maybe they’re working parents and they can do it in an hour,” says Perkins. “Other people prefer to have a longer time and work at their own pace. We’re looking for people happy to take on challenges and who get a real buzz out of being able to solve hard things.”

In in-person interviews, someone on the Canva team will almost always ask the candidate, “How would your previous boss or manager talk about your work or rate you?” Perkins says people are “surprisingly honest” in their responses. The answers help her get a window into what type of leadership allows a particular candidate to thrive. Some people require a lot of structure or hierarchy, she says, and Canva doesn’t have much of either.

“One of the things I believe quite strongly is having a really strong idea of where you’re going,” says Perkins. “I have this visual metaphor. Plant 100 seeds. Until eventually one flowers or sprouts. For most people, if you’re rejected, you feel really hurt and don’t want to continue. The reality is that you have to push through. If I had given up quickly, I certainly wouldn’t be here today.”

By Kimberly WeisulEditor-at-large, Inc.com

Source: It Took Canva a Year to Make Its First Technical Hire. Now It’s a Hiring Machine

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A behind the scenes look at the amazing team behind Canva, hope you enjoy watching the video as much as we enjoyed making it!

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