How To Solve Climate Change: Bill Gates Wants You To Know Two Numbers

Bill Gates Climate

Bill Gates wants you to know two numbers: 51 billion and zero. The former is the number of tons of greenhouse gases typically added to the atmosphere each year as a result of human activities. The latter is the number of tons we need to get to by 2050 in order to avert a climate crisis.

Gates has a plan for how to go from 51 billion to zero, and he’s happy to say it doesn’t come with a price tag in the trillions of dollars. As you might expect from a guy who made his fortune in technology, the billionaire’s suggested solution is tied in large part to innovation.

He spells out his plan in a new book, How To Avoid A Climate Disaster: The Solutions We Have And The Breakthroughs We Need, to be released on February 16. Ahead of the book launch, Gates talked to Forbes about why he wrote the book. He also shared details the book doesn’t get into, including how much he’s invested in zero-carbon companies, which ones he’s most excited about, including a new kind of nuclear power plant, and what he’s likely to invest in next. 

Goal number one of the book, says Gates, is to clearly lay out which sectors of the economy are producing the 51 billion tons of greenhouse gases the world typically adds to the atmosphere each year. “The actual numeric framework, which is the most basic thing for any problem you want to tackle…that’s really been missing,” Gates says in a video interview from a conference room in his offices in Seattle. (See table for the percentage breakdown.)  The goal we as a planet need to aim for: zero emissions by 2050. Gates is optimistic that as hard as it sounds, we can get there.


How It Adds Up Globally: 51 Billion Tons

Emissions dropped about 5% in 2020 due to the pandemic, Gates estimates. But in a normal year the world adds 51 billion tons of greenhouse gases to the atmosphere, Gates writes in his book.

                            

Gates admits, both in his book and when we spoke, that he is an imperfect messenger on climate change. “The very idea that one person is saying they know what we should do —appropriately, there is some pushback,” he says. In his book, he writes, “The world is not exactly lacking in rich men with big ideas about what other people should do, or who think technology can fix any problem.” He admits to owning big houses and flying in private jets, though he tells me that he buys carbon offsets for $400 a ton for the private jet flights he takes. “I can’t deny being a rich guy with an opinion. I do believe, though, that it is an informed opinion, and I am always trying to learn more,” he writes.

Gates presciently warned in a 2015 talk about the dangers of a global pandemic and what we’d need to do to prepare for it. Similarly, this is not his first public prescription for the climate. In 2010 he gave a TED talk calling for the need to eliminate carbon emissions by 2050. He’s continued to consult experts in the field and delve into the latest in climate science and policy. In 2015 he got involved in the Paris Climate Summit, calling France’s then president, Francois Hollande, and encouraging him to get countries to agree to raise their R&D budgets for clean tech innovation. Twenty countries signed on. Says Gates, “Although we did not see all those countries double their R&D budgets, we did see some increase. That’s sort of when the field started to focus on can we get this innovation to take place.”

To help put a framework around progress and the cost of new carbon-free innovations, Gates and his team came up with a term called “Green Premium” and introduced it in his blog, Gates Notes, in September last year. As he explains it, the Green Premium spells out the difference in cost between a product or process that doesn’t emit carbon with one that does. Green Premiums have fallen in the passenger car sector to the point where more people are buying electric cars (though Gates points out that just 2% of global auto sales are electric vehicles). In the industrial sector, however, Green Premiums are much higher. Says Gates, “The hardest problems to solve are in areas like steel and concrete and even transportation things like aviation fuel.” The problems he’s referring to: coming up with processes to make these products that don’t emit greenhouse gases. The research is in its early stages, and that’s where government R&D can play a role, Gates suggests.

What’s It All Going To Cost? 

In December, Gates suggested in his blog that the U.S. create a National Institutes of Energy Innovation to help the country take the lead in climate change innovation. The idea is to model it after the National Institutes of Health, the backbone of U.S. medical research, which has an annual budget of about $37 billion. Gates says current U.S. government R&D spending on energy innovation is about $7 billion annually; that would need to be quintupled to match government spending on the NIH.

Another suggestion from Gates: shift the tax credits now available for solar and wind to more nascent areas like offshore wind, energy storage and new types of steel. “If you do that, and maybe double or triple the amount you spend on those tax benefits, then I do think that will be just a monumental contribution from the Biden administration,” he explains.

Whatever tech innovation comes out of the U.S. or elsewhere has to be affordable enough for countries like India to adopt it, Gates points out. Right now, the U.S. accounts for 14% of the world’s emissions. If just the U.S. gets to zero carbon emissions, we won’t be solving the problem globally.

Where Gates Is Investing

Gates, whose $124 billion fortune stems from an estimated 1% stake in Microsoft and a variety of other investments, says in the book he’s put “more than $1 billion” into companies working toward zero emissions. How much more? Altogether, he tells Forbes it’s about $2 billion. He describes himself as perhaps the biggest funder of direct air capture technologies—methods to capture carbon from the air. Two of the more well-known companies he’s been an investor in are producing plant-based meats: Impossible Foods and Beyond Meat. Some of his investing he categorizes as philanthropic, like the money he’s put toward an open source climate model that aims to show how electricity generation will work in long periods of tough weather when wind and solar would be shut down.

His biggest bet has been on TerraPower, a nuclear power company with a reactor that uses depleted uranium as its fuel. Gates founded the company with a few others more than a decade ago. In 2017, TerraPower formed a joint venture with a Chinese company and was planning to produce its first reactor in China. That deal was scuttled by the U.S. government, which in late 2019 blocked U.S. cooperation with China on civilian nuclear power. Now the plan is to build a demonstration plant somewhere in the U.S. In October the U.S. Department of Energy awarded $80 million to TerraPower toward construction of the plant; the agreement is that half of the funding will come from the private sector. Gates says, “That’s coming largely from me.”

His hope is that the demonstration plant will be built within five to seven years. “If things go well, that means that maybe in 10 years, commercial plant builders would take that design and build it ideally in the hundreds—which is what you need to have an impact on climate change.”

Gates has also invested in zero-carbon companies through Breakthrough Energy Ventures, a group he assembled that launched in December 2016. “It was a lot easier to raise the money than I expected,” he says. “I made about 22 calls and got about 20 yeses for the first billion.” Investors include billionaires such as Jeff Bezos, Vinod Khosla, John Arnold and John Doerr; Gates says he’s the largest investor. So far Breakthrough Energy Ventures has invested in 40 companies; One, QuantumScape, which is developing lithium metal batteries for electric vehicles and has no revenues yet, went public through a SPAC last November. Though many of the companies are still early stage, Gates describes some as “really wild,” including QuidNet, which is working to store electricity by pumping water into pressured underground wells; when energy is needed, the water is released and goes through a turbine, creating electricity.

Breakthrough Energy Ventures raised another $1 billion fund in January, with most of the same initial investors and some newcomers. (Gates didn’t disclose names.) He says he’s the largest investor in the latest fund, too. The new fund will look to invest in more of the industrial processes like low-carbon cement and steel production as well as technologies to capture carbon from the air, Gates says.

Over the next five years, Gates says “I’ll put in at least $2 billion” toward zero-carbon technologies. But while a total of $4 billion is a lot of money, for someone worth more than $120 billion, it’s a small sliver of his overall investments. Says Gates, “It’s more limited by what is out there that can have a high impact.”

genesis-3-1

One of Gates’ other investments that’s been in the news recently seems to fly in the face of his zero-carbon focus. In early February, Gates’ investment arm, Cascade, partnered with Blackstone Group and private equity firm Global Infrastructure Partners in a $4.7 billion deal to buy Signature Aviation, the world’s largest operator of private jet bases. Private jet travel has been booming during the pandemic, but such travel emits a heck of a lot of greenhouse gases. How does he square the deal with the premise of his book? A spokesperson for Gates did not reply to the question.

Will Gates’ book influence policy makers and move the needle toward innovation in zero-carbon technologies? It helps that combating climate change is already one of the Biden administration’s top four priorities. Given that the book is addressing weighty material, it’s relatively easy to read, sprinkled with Gates’ personal observations  and even a photo of him with his son Rory on a visit to a geothermal power plant in Iceland. (Gates says he and Rory liked to visit power plants for fun.) He mentions that he drives an electric car the Porsche Taycan Turbo, which he describes to Forbes as “ridiculously nice and ridiculously expensive” — that sells for $150,000 or more. (He’s such a fan that he got one of the first demo models, he adds.)

If nothing else, Gates wants to get people talking. “My hope is that we can shift the conversation by sharing the facts with the people in our lives— our family members, friends, and leaders. And not just the facts that tell us why we need to act, but also those that show us the actions that will do the most good,” he writes.

A bigger measure of his success will be whether the Biden administration adopts any of his policy proposals. Says Gates, “I do think that with those increases [in spending], we’ll be doing exactly what we need to do, not just for us, but for the entire world.”

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I’m a San Francisco-based Assistant Managing Editor with a focus on the world’s richest people. 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 former president. Over more than two decades, reporting for Forbes has taken me to 17 countries on four continents, from the streets 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: How To Solve Climate Change: Bill Gates Wants You To Know Two Numbers

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Bill Gates outlines his vision for a global green revolution. He tells Zanny Minton Beddoes, our editor-in-chief, how renewable energy is merely the first step in combatting climate change. 00:00 – How to fund a green economy 00:38 – Lessons from the pandemic 01:52 – Behaviour change v innovation in technology 03:36 – Most promising renewable technologies 04:31 – Private sector investment in green technology 06:30 – How essential are carbon prices? 07:50 – Net-zero emissions targets for businesses 09:39 – America’s role in climate-change action 12:40 – What are the odds for success of green innovation? Sign up to The Economist’s fortnightly climate-change newsletter: https://econ.st/3midEwG Find our most recent climate-change coverage: https://econ.st/37epi7u The World In 2021: the world could turn a corner on climate change: https://econ.st/37hdgKp
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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

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.

Follow me on Twitter or LinkedIn. Check out my website.

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

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!

Philippine Retail Billionaire Moves From Fashion to Pets

Robinson Retail Holdings Inc.’s head office in Manila.

Billionaire John Gokongwei’s Robinsons Retail Holdings Inc. is considering an exit from the fashion business as it struggles to compete with cheaper, faster chains like Fast Retailing Co.’s Uniqlo. Stock jumps to three-week high.

The Filipino retail giant, whose fashion portfolio includes the Topshop and Dorothy Perkins brands, instead sees better returns from pet, health and beauty products where demand is growing, said Chief Executive Officer Robina Gokongwei-Pe in an interview.

“We are shrinking fashion, for it has become very difficult,” Gokongwei-Pe said. “There are other brands that came in who are more progressive and cheaper. We are already reducing the number of stores and we have to think if we move out altogether.”

The Manila-based company is relooking its business as it faces shrinking operating margins and growing competition in the low-cost space. It’s pivoting into wooing higher-spending consumers by entering into the premium grocery market, as well as expanding foreign franchises in beauty products and pet care, hoping to achieve 15% revenue growth annually for the next five years.

“Pets have become very big,” said Gokongwei-Pe. “Dogs now are very spoiled. Just look at Instagram and Facebook, it’s all about dogs. You should put money where the money is, which is food, drugstores, hardware, and growing businesses like pets and beauty.”

Robinsons Retail’s fashion portfolio has contracted to six brands and 40 stores at end-2018 from nine brands with 60 stores in 2014. Fashion is among the company’s specialty shops, which were cut to 341 in March from 387 at end-2018.

The company in December bought the local franchise for South Korean personal care and beauty products retailer Arcova and Club Clio, adding to 15 stand-alone stores selling Elizabeth Arden, Shiseido and Benefit Cosmetics. It also procured the license for Singapore’s Pet Lovers Centre in October and plans to open a second outlet as early as this year.

“Robinsons Retail is deploying its capital in a way that promises more growth,” said Miguel Ong, analyst at AP Securities Inc. “Fashion isn’t attractive as before with the rise of online platforms and brands like Uniqlo dominating the market.”

Click RRHI PM <Equity> ANR to see how analysts rate the stock.

Targeting Affluent Shoppers

Under a five-year plan targeting mid-to-high teen revenue growth, Robinsons Retail will spend between three billion pesos ($59 million) and five billion pesos to add 100 to 150 stores a year, according to Gokongwei-Pe. The retailer has 1,911 stores in various formats, excluding 1,960 outlets of its The Generics Pharmacy.

Revenue contribution from supermarkets will rise to 55% this year from 47% in 2018 after its acquisition of former rival Rustan Supercenters, whose 36 supermarkets cater to affluent shoppers. Robinsons Retail’s own 160 supermarkets cater mainly to mainstream consumers.

Robinsons Retail loses value, trails Philippine stock index since Rustan purchase

The acquisition and other new stores will improve gross profit margin by 10 to 20 basis points this year, said Gokongwei-Pe.

Operating margin, which fell below 5% in 2018, will shrink further due to write-offs related to the Rustan purchase. It will “definitely” improve in 2020, when the integration is completed, she said.

Other highlights:

  • A foreign executive has been hired to manage Mini Stop, which has potential to double its 5% sales contribution in 2018, if the convenience stores are “scientifically” ran.
  • Robinsons Retail is considering creating its own e-commerce app for its supermarkets to fill the gap left by Honestbee’s closure in the Philippines. It may start from scratch or expand Growsari Inc., a grocery delivery service for mom-and-pop stores.
  • The closure of Honestbee caused a dip in supermarket sales and will impact this year’s performance as same-store sales growth could have been 4.2% to 4.5% instead of 3%.

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Source: Philippine Retail Billionaire Moves From Fashion to Pets – Bloomberg

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