Slide 1

International Youth for MeTRO’s(IYM)

1

Using Youth and Technology

to

Translate Visions into

Measurable

Time Bound Real Outcomes

The world has been struggling to solve social problems quickly with limited use of public money. IYM is an attempt to use the power of youth and advances in technology to get big and fast results. In this presentation, I would like to take you through the plan for IYM and to see if by working together we all can make a meaningful difference to the citizens of the world starting with one state/UT in India. We are sending this presentation to all states and UT’s. We can initially work only with one state/UT but if there is demand for several, we will attempt to meet that demand as soon as possible. Maybe other entrepreneurs will also set up IYM competitors. A lot of demand is always a nice problem to have.

Slide 2

The IYM PlatformSocial Impact using collaborative innovation

PM / CM

remove

roadblocks

Team Lead

CEO

Material*

Youth 14+

monitor, give ideas

& build their resumes

Bureaucrats,

Politicians

submit projects with MeTROs

Lead Mentor

with an

Innovative Vision *

Talented Youth paid well

Industry

Funds Projects& does ethical

lobbying

IYM Core

Team & Tech

Platform

* Flagship only

We see IYM as a platform that connects a billion minds, industry & Government to produce results using collaborative innovation and lean start up methodology. Bureaucrats & politicians will submit projects that have well defined goals and time lines. If these are approved by at least five trustees the projects will be launched. The role of the CM will be to champion the projects and remove road blocks. In addition to providing CSR funding for the project teams, industry will also provide inputs through ethical lobbying. The youth working on the projects will be expected to put in 60 hour work weeks and deliver. They will be paid well and it will be a great opportunity for them to learn, build their resumes and/or become world class entrepreneurs themselves. For flagship projects an attempt will be made to find a lead mentor/team lead who has an innovative way of addressing the tough problem that the team is trying to solve. Youth 14+ can join the platform using mobile and the internet to contribute their ideas as well as monitor progress on the projects. Building a platform which can effectively excite a lot of stakeholders and contribute to big fast results is not easy and this is why the IYM core team needs to be world class.

Slide 3

• Business as usual continues

IYM team - “Heads you win big, tails you do not lose much”

3

IYM - An Entrepreneurial Bet

IYM seeks to create a Silicon Valley style start up for a Government leader or politician, which will enable MeTROs (Measurable Time Bound Real Outcomes) by using collaborative innovation and enabling world class entrepreneurs. As with all startups a project startup could succeed in a major way or it could fail. Business as usual will continue so there will be no major downside if the IYM startup fails. In all probability there will be an upside and there is a good chance that the upside will be huge, scalable and replicable. The current version of this presentation has benefited from input from a lot of people and we remain open to changing IYM based on the first mover state’s/UT thinking.

Slide 4

2015 -20 plan

4

• Assumption: There is a first mover state / UT

• 2015 First Mover State/UT only

• 65 projects, 145 youth

✦5 flagship projects (5 youth per project)

✦10 MP projects (2 youth per project)

✦50 MLA projects (2 youth per project)

• 2016 - 17 18 States / UT in India

In 2015, we would like to focus exclusively on the first State/UT and do at least 5 flagship projects which are the top priorities of the CM. In addition to these to make sure that ground realities are being taken into account and that the development is inclusive & percolates to the grass roots we would like to do 60 projects at the MP and MLA level. In 2016 & 17 we will expand IYM across India and increase the number of flagship and local projects in the State/UT.

Slide 5

The IYM BHAG(Big Hairy Audacious Goal)

5

2020 Target

• 20,000 talented Youth help Bureaucrats / Politicians

• 5000 Projects (Flagship and Local)

• Multiple Countries

IYM has a big, hairy audacious goal for itself. This is necessary to attract world class people to join the IYM team as world class talent is motivated by the idea that they can change the world and make it a better place. By 2020, we would like to have over 5000 projects, 20,000 youth and be operating in multiple countries. Solving social problems is not just an India centric issue and the first mover State/UT could be the first mover in supporting a model which shows promise of eliminating social problems and creating a large number of youth who are socially aware.

Slide 6

IYM is not new…..

6

• IIC started in August 2014

• 3 projects

1. NSDC - 500,000 sustainable jobs in textiles in one

year & 5 million in 5 years

2. DMICDC - Making the new cities revenue surplus,

smart & among the best cities in the world

3. CEL - Renewables for greenfield & brownfield

cities and for SAGY (Sansad Adarsh Gram Yojana)

Results are encouraging but could be better.

IYM scales IIC and makes it better

IYM seeks to build upon IIC (International Innovation Corps) which was started in August 2014 with the University of Chicago with 3 projects and 15 fellows. Each of the IIC projects has challenging goals and the teams are making progress. With the IIC experience we think we have learned what works and what needs to be improved. As we build IYM this learning will continue.

Slide 7

7

EntrepreneursBig social impact

Profitable companies

IYMproject teamskunk works

The IYM Magic - Small Team Big Results

GovernmentEnabling

Environment

Industryethical lobbying

Billion MindsCollaborative

Input

A very logical question that a lot of people raise is how a small project team can produce big results. The magic lies in the team being a bridge between the Government, industry, entrepreneurs and the people. The key role for the Government and IYM is to provide an enabling environment to make the magic happen. At the end of the presentation we have an example of how the IYM model could be used to solve one of the toughest social problems that the world faces - mass economic empowerment.

Slide 8

IYM FoundersAnita Bhargava

- Data Warehousing Head, PayPal

- Founder Let’s Do It! Delhi

- Key Role in Getting Projects for IIC

- Columbia University Computer Programming

Sanjay Bhargava

- VP at PayPal, Inventor of Random Deposit

- Cofounder IIC

- Citibank International Staff

- IIM (A) Gold Medalist

8

The IYM founders have both worked at PayPal which has been a successful Silicon Valley startup as early employees. PayPal alumni (also called the PayPal Mafia) have gone on to found many more successful startups like Linked In, You Tube, Yelp to name a few. Anita and Sanjay believe that given the right enabling environment, they can lead IYM to become a powerful engine that can solve the toughest social problems that the world faces.

Slide 9

IYM Core Team

•Silicon Valley style Not for Profit startup•Highly paid with capped bonuses•Headcount (11)

•Delhi office (5)•Silicon Valley office (2)•State / UT office (4)

9

The IYM core team is structured as a not for profit start up where the team members are paid very well and get capped bonuses instead of stock options. The financial plan for IYM shows that as it scales it will generate a surplus even after salaries and bonuses - this surplus will be used for funding projects such as drugs and human trafficking which do not have direct economic benefits to industry The plan is to attract world class talent to join the IYM core team which is why the technical team is based in Silicon Valley.

Slide 10

IYM Funding Plan

• Rs 1 Crore seed grant from the State / UT Government

• Rs 100 Crores funding from industry trustees

• 20 funders (5 Crores each)

• Conditional LOI solves chicken and egg problem

10

The Rupees 1 crore seed grant from the State/UT is to show that IYM is key priority for the State/UT. In addition to the seed grant the govt will need to help in getting 80G, FCRA clearance and any other government approvals needed for the trust within 30 days. It will also need to introduce IYM to prospective trustees encouraging them to support the projects. IYM will only succeed if an enabling environment is created for entrepreneurs. It is therefore necessary for the State/UT to create an enabling environment for IYM if it believes that IYM can help it solve tough social problems. The trustees could be foreign entities and IYM will set up entities as required in their jurisdictions so that they can get tax deductions. For eg. US entities may need to send their money through an entity that has 501(c)(3) clearance.

Slide 11

Why Trustees Should Fund IYM?

• Scalable MeTRO’s

• Trustees approve projects

- Five Thumbs up required

• Ethical Lobbying

- Creates CSV (Corporate Shared Value)

• Trustees decide Bonuses

- For IYM core team

- For project teams

- For IYM Technology partner

11

The chances that IYM will solve tough social problems is very high as the flagship projects will have the benefit of rapid world class execution. The flagship projects are not executed in an ivory tower. They are supplemented by local projects. All flagship projects will require a thumbs up from 5 trustees and being hardnosed industry leaders who want their donations to work they will not give their thumbs up easily. As the projects progress the trustees could use their expertise for ethical lobbying putting India first. This enables corporate shared value to be created. The bonus for the core team, project teams and the tech partner will be decided by the trustees so the trustees have a lot of control to make sure that the money they donate produces real results.

Slide 12

IYM Financials

12

2015 2016 2017

Projects # 65 2790 5735

Youth # 215 8730 17945

IYM Core Headcount # 11 85 162

Inflow (Rs Cr.) 101 2254 5573

Outflow (Rs Cr.) 30 2072 5130

Surplus (Rs Cr.) 0 126 370

As with any early stage start up, the IYM financials are indicative and are based on aggressive assumptions that the demand from States/UT will be very strong. The actuals are likely to differ very substantially from the financials above. The financials are good to show how IYM spends the money it raises and the inflows that it gets from activities other than donations. IYM thinks that it can get revenue from collaborators in 2016 and 2017. This revenue is quite small so over 95% of the inflow is from donations. 10% of the donations are retained by IYM to fund the core team, technology and other expenses. As IYM scales it generates a surplus by controlling its headcount and effective use of technology by building a world class platform that will help projects generate MeTRO’s and make them easy to manage. Core team members are paid well but their bonuses are capped. The surplus that IYM generates will be used to fund projects which do not have direct economic benefits such as preventing drug abuse and human trafficking.

Slide 13

IYM Time Table

13

Activity Deadline

State/UT buy-in and conditional LOI 15 Mar 2015

Trustee buy-in and conditional LOI 15 Apr 2015

Funds in Trust 1 May 2015

2015 Projects start 1 June 2015

The IYM timetable is aggressive but can definitely be achieved if the

State Government/UT is enthused and industry is also excited. The cost

of delay in solving tough social problems is very high so we owe it to

the people of the State/UT to think differently and have a strong bias for

action.

Slide 14

IYM Flagship Project Example

14

Slide 15

15

Solving Economic Empowerment

IYM Thinking

Quick results with

negative subsidy

Traditional Thinking

Slow progress with high

subsidy burden

• Set up task forces &

expert committees

• World Conferences

& meetings

• Ask Industry

Leaders to step up

• Work on subsidy free

economic

empowerment

• Use collaborative

innovation

• Recruit a world class

team

• Excite industry

• Enable world class

entrepreneurs

In India, telecom empowerment has succeeded to a large extent and the govt has made money. India continues to struggle with financial inclusion and livelihoods. The traditional thinking has yielded very little progress in spite of large amounts of money being spent. The graphic shows how IYM thinking can yield quick results with negative subsidy.

Slide 16

16

Find World Class

People

• Subsidy Free EconomicEmpowerment

• Telecom Empowerment succeeded

• Lead Mentor with an Innovative Vision

• Passionate & Talented Youth

• Headhunt through networking

• Collaborative Innovation

• Iterative straw man

• Marketplace tests

• Pivots

• 100 million empowered people

• Annual per capita revenue Rs 1000

• 100 Billion Rs revenue opportunity

• Last Mile company

• Reputation bureau

• Branchless Banking

• Livelihood companies

Challenging Time Bound Realistic

Goals

Lean Startup &

Collaborative Innovation

Pot of

Gold

Enable WorldClass

Entrepreneurs

IYM Model for Economic Empowerment

This graphic explains the IYM model in greater detail. The first step is to set

challenging time bound realistic goals which for economic empowerment would

relate to subsidy free economic empowerment. This goal is realistic because it has

been achieved for telecom empowerment. The next step is to find world class

people who believe in the goal, are passionate about achieving it and have the

talent required. The team will work by publishing its thinking and actively seeking

input to improve its models. Using the lean start up approach it will test the models

rapidly on the ground in a small area and improve them. If the marketplace tests

show that the model needs to be changed the team will pivot till it finds models

that work and are scalable. Industry needs to get excited and believe that there is a

large pot of gold for them. For economic empowerment the pot of gold is at least

100 billion Rupees. The excitement of the team, the government and industry will

convince world class entrepreneurs to invest and innovate to solve one of the

world’s toughest problems - mass economic empowerment. A few billion dollar

plus companies that could emerge are - a last mile company, a reputation bureau, a

branchless banking platform company and several livelihood companies.