AI will change everything: Mohan Ananda
My advice to every entrepreneur is this: Incorporate artificial intelligence (AI) into your business, regardless of the sector you are in. AI is going to impact every business on this planet, and those who don’t make use of it will find it difficult to survive.
My prediction is that the cost of goods will halve due to AI usage, people will spend less time on work, and will have a much-improved quality of life.
Mohan Ananda, investor/mentor
You could dismiss Mohan Ananda’s claims made during a talk in Trivandrum as yet another set of predictions from a Silicon Valley guru. But before doing so, consider his track record:
- As the United States put in place a Global Positioning System (GPS) in the 1980s, Mohan – who played a crucial role in its development – says he told a newspaper then that GPS-enabled devices would be in everyone’s pocket in the future. Forty years later, it has become true with smartphones.
- He filed for a patent in the e-commerce sector in 1993, way before even those working to create the internet knew where it was heading. He says he could foresee online trading even then.
- A scientist who transitioned to law and then to mentoring and investing, Mohan has been involved with notable Silicon Valley startups such as Stamps.com and Investnet. By March 2022, his net worth had surged to 360 million US dollars, according to Wikitia.com.
The 78-year-old’s’s achievements should be inspiring to every Indian, especially Keralites, as he was born in Cherukunnu village in Kannur. He says his journey has three phases: the first as a scientist, then as a lawyer and now as an entrepreneur.
After graduating with honours in mechanical engineering from the Coimbatore Institute of Technology in 1967, Mohan embarked on further studies at the California Institute of Technology (Caltech), where he pursued a master’s degree in aeronautics. Subsequently, he obtained a PhD from the University of California at Los Angeles (UCLA).
This academic journey led him to a position at Nasa’s Jet Propulsion Laboratory, where he played a pivotal role in the pioneering interplanetary missions. He was entrusted with the task of formulating navigation plans for spacecraft destined to explore planets such as Venus, Mars, and Jupiter.
Crafts were previously controlled using radiometric measurements, a system prone to errors. Mohan Ananda recounts devising the concept of utilising camera images from spacecraft to ascertain their position relative to planets or moons. This optical navigation method offered more reliable navigation data and has since become the industry standard.
“That was one of my iconic contributions to the field of interplanetary exploration,” Mohan reflects.
His pioneering work in rocket navigation naturally led to Mohan’s involvement with the North American Air Defence wing of the US Air Force, tasked with developing guidance-controlled weapons systems reliant on continuous communication between satellites and land-based receivers.
His primary focus was ensuring signal safety between satellites and ground stations, even in scenarios like nuclear attacks.
“Some of the work we undertook remains classified, but we devised a solution that resulted in the development of a robust tracking system, both safe and accurate. This laid the groundwork for what we now know as GPS.”
“The groundwork for GPS began in 1978 and was completed by 1984. When the GPS was unveiled to the world, a newspaper reporter asked me about the future of this new system. I said that in the future, everyone would have something connected to GPS in their hands.”
“The reason I made that prediction was because the technique we developed was exceptionally robust. It was a prediction, but I saw it as a natural progression for GPS to be integrated into everyday devices.”
His extensive work on GPS systems necessitated frequent travel to Europe to collaborate with US allies, which Mohan found challenging after a while. His two children were growing up and his wife, Rajeswari, a neurologist, was managing everything alone.
“Moreover, I thought that my ability to remain creative and highly productive in scientific domains was waning, even though I was only in my 40s. Additionally, I desired to minimise my travel commitments. It was a combination of these factors – I’m not sure which was more dominant – that prompted my transition into my second phase of life, as a lawyer.”
The transition in 1986 came as a surprise to everyone, including his wife, as it meant disrupting the comfortable routine of their family.
“Mohan is very stubborn once he decides something and there is no way you can change his mind,” interjects his wife from the side.
Mohan acknowledges the truth in her statement. “That’s a trait I inherited from my father, Ananda Nambiar, who made history as the first elected Communist Party representative in India, winning the railway constituency seat in the Madras Provincial Assembly in 1946.”
Mohan recalls that his father, despite being a committed communist, never opposed his decision to pursue education in the US nor did he try to influence his choice of career.
“One thing my dad advised was to steer clear of politics. He said it will be difficult to do things for people as you desire as there will be many compromises you have to make.”
This advice, aimed at serving people, significantly influenced Mohan’s decision to become a lawyer. Initially, he assisted people, mainly Indians, in navigating immigration procedures. However, his extensive network developed during his earlier careers led him to also work with technology firms, particularly on matters concerning patents and intellectual property (IP) issues.
“I also began handling mergers and acquisitions and fundraising. This background has proven invaluable to me now, as these are commonplace activities in the modern business world.”
Engaging in such work for a decade paved the way for the third phase of his life – that of an entrepreneur.
“As I was deeply involved in IP-related work, I wondered why I shouldn’t obtain one for myself. In 1993, I applied for a patent, which was granted in 1996.”
A patent on e-commerce would have sounded like a crackpot idea in 1993. Was it just a wild hunch or a prescient move?
“Once I saw how two computers could securely connect and communicate with each other, I could see the vast potential of what could be achieved. Of course, I realised that it wouldn’t materialise overnight or even in the next few years. Call it a wild punt if you will, but I was sure that it would happen,” says Mohan.
Explaining his thought process further, Mohan recalled in those days computer users had to buy software from firms like Microsoft, and install it, which meant updates were difficult. This was a problem and he figured out that once the internet became widespread, this could be done online.
“I foresaw that as such connections became possible, bandwidth would increase, enabling data streaming and open new possibilities. My belief was that if technology could securely connect two individuals’ computers, then any transaction, including the exchange of information and money, could occur.”
“When I acquired that patent, it was exceptionally unique but held no immediate value. Its true value would only manifest years later.”
Subsequently, as the concept of online commerce began to take shape, Mohan and his associates formulated a plan to propose to the US Postal Service the idea of selling stamps online.
Despite the ongoing dot-com boom then, many venture capitalists in California rejected the plan. While they acknowledged the merit of the idea, they were hesitant to wager that a government entity like the US Postal Service would embrace such disruptive innovation.
But Mohan and his team managed to convince US postal authorities of their plan and Stamps.com was born. The rest, as they say, is history.
In his capacity as a lawyer, Mohan handled much of the paperwork for Stamps.com and invested his own funds, totalling half a million dollars. He also guided the young team of UCLA graduates, who happened to be his son’s peers, through the journey.
The success of Stamps.com culminated in its acquisition by software firm Thoma Bravo in 2021, in an all-cash transaction valued at approximately 6.6 billion US dollars.
This cemented Mohan’s status as a prominent investor and mentor in Silicon Valley. However, he attributes his success not to magic, but to a simple principle: “The idea is that anyone embarking on a venture, regardless of its scale, must think big and thoroughly do their homework.”
He also offers a valuable piece of advice for those venturing into startups: “Ensure all your paperwork is in order right from the outset. Make sure everything is done properly from day one, and seek assistance from a reputable professional for this task. Many individuals postpone such essential steps until later, only to encounter problems down the road.”
But very few startups make the cut, so be prepared to accept that, he says.
As an example, he refers to another firm he backed, Microsubstrates Corporation. It was founded by his friend Ramachandra Panicker, an expert in Material Science.
“The firm did well and was in business for two decades. But I didn’t make any money out of it,” says Mohan.
But for Mohan, every journey yielded its own rewards. While he was busy seeking funds for Microsubstrates, he crossed paths with investor Brad Jones, who was heading Bretwood Ventures at the time.
Although Jones initially said he needed time to consider Mohan’s pitch, when informed about the urgent requirement for funds, he promptly wrote a cheque for 200,000 dollars without any hesitation or demanding any guarantees.
“It’s remarkable how kind people can be when you reach out. You never know unless you make the effort to connect with others. Often, assistance can come from the most unexpected sources,” Mohan reflects.
Jones, who now is a partner in the multi-billion dollar Red Point investment firm, once again came through with a contribution of 2 million US dollars for the initial funding of Stamps.com. This investment helped the founders raise the 6 million they needed in just one night.
As Mohan’s stature as an investor and mentor in Silicon Valley soared, numerous enterprises, both in India and abroad, benefited from his association.
His journey so far is punctuated by prominent milestones such as Investnest, JAB Holdings, SecondOpinionExpert, and Innovative International Acquisition Corp, the firm instrumental in facilitating ZoomCar’s listing in the US.
(Despite speculations regarding ZoomCar’s business model, which aims to assist car owners in renting out their vehicles, Mohan remains optimistic about the company’s future.
He says the implementation of a system to monitor car usage and comprehensive insurance coverage to alleviate the concerns of car owners. Mohan foresees a trajectory of global growth for ZoomCar, akin to the success achieved by Airbnb.)
Despite his years as an investor and mentor, Mohan’s enthusiasm for discovering new ventures to support and guide remains unwavering.
“I am still excited by ventures that are innovative, offer simple solutions, and ultimately bring tangible benefits to people. That remains my driving force,” Mohan asserts.
So how does that sit with his exuberant forecast about AI, especially if it is going to decimate jobs as widely predicted?
“There will be disruptions and there will be pain of job loss. But it is for the better and in my opinion, AI will bring changes that will benefit mankind. AI will change everything, like health, education, travel, logistics … but it will also bring new opportunities. I have no doubts about that,” says Mohan, who twice predicted things that would have sounded mind-boggling then but were proven true later.
Source : keralatechnology