Why we decided to participate in the MIT EF CEE program

We wanted to level up our business game and you can’t do it in isolation. MIT EF CEE is a class of its own so the decision to go for it was easy. It wasn’t that easy though to get inside as it’s one of the most recognized and prestigious accelerator programs in this part of Europe. But we’ve made it!

It made perfect sense from our business perspective. Our business is about helping companies worldwide run more effective recruitment campaigns and get more better matched candidates. We wanted to structure it well and formulate convincing business offer. We knew that participation in the program and becoming a part of MIT CEE ecosystem would give us the proper boost. And we were right!

How we benefited from the acceleration

MIT CEE EF has significantly accelerated ChallengeRocket’s progress on multiple fronts including product, sales, fundraising as well as team maturity. MIT EF CEE has provided exceptional support and training that would otherwise not be available for us. Plus, we got a chance to interact with amazing startups that were part of our cohort.

As part of the program we had a chance to cooperate with PZU and started a pilot of recruitment campaign for the biggest insurance company in Poland. They used our methodology based on the so-called “Skill Challenges”. Candidates demonstrated their real one-the-job skills on the platform. Top individuals have been invited to the next stage of the recruitment process. In 2 months, the pilot brought together more than 500 specialists around the brand!

How the MIT journey influenced our success

Having eyes of the mentors and other companies on our business was invaluable. It helped us achieve more in 2019. We’ve raised PLN 5.6 million in capital to fuel further growth, won several prestigious sector awards and validated our business model with more clients. We were acknowledged as the best start-up at the Economic Forum in Krynica, and in December, we won the “Startupy w Pałacu_EKSPANSJA” competition, receiving a memorial certificate from the hands of the President of Poland. Also, we won 1^st prize at GITEX, the largest technology conference in the Middle East, Africa & South Asia. We were privileged to be part of MIT CEE story and I definitely recommend it.

Was it worth participating?

If anyone is considering whether it’s worth it – my advice is simple: go for it! There are a lot of accelerators popping up these days. With MIT CEE you may be confident about the quality of everything you receive. MIT team and mentors are going to provide you with the direction, experience, knowledge and some emotional support as well. Also demo day does become incredibly valuable – especially if you can go in strong with great traction and a great story! MIT CEE puts a lot of spotlight at their cohorts. And it’s all equity-free: which means that in exchange for wisdom and insights you’re receiving you don’t need to take away any stake in your business.

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Crowdfunding is financing a project by a dispersed community, usually by individuals from all over the world. We can distinguish three types of crowdfunding. The first one is Reward-based crowdfunding (Kickstarter type), i.e. a type of crowdfunding where the purchase of existing or pre-sold products takes place. This allows companies to determine the demand for their product and obtain money from future customers. The second type is Loan-based crowdfunding. It consists in connecting two groups of people on the Internet — those who need a loan and those who have money and can grant it. Finally, we have Equity Crowdfunding. It consists in connecting startups that look for financing with investors who receive shares in a given company in return for an investment. At FundedByMe, we deal only with the third type — equity crowdfunding, so we connect Polish companies looking for financing with a dispersed group of individual investors from Sweden and from around the world. As far as the potential of equity crowdfunding is concerned, it mainly stems from the combination of three areas: attracting investors who are, at the same time, brand ambassadors; attracting prospective customers; as well as marketing benefits. For this reason, crowdfunding is more and more often chosen by Venture Capital funds in the UK as a co-investment increasing the marketing reach of the company. An example could be Revolut on the Seedrs platform in the UK (https://www.seedrs.com/revolut), which already had USD 66 million in investment from Index Ventures, one of the best VC funds in the world, but — despite this — raised an additional USD 5 million on the crowdfunding platform in order to gain reach and publicity, which is important in the B2C market. I predict that similar transactions will soon also be concluded on the European market, including Poland.

Who is crowdfunding aimed at and what are its main advantages?

Usually, it is best to be propagated on the platform for B2C companies, since they have their own databases of users, followers, customers, which they can reach in connection with their campaigns. This helps in building outreach among people who know the service. B2C solutions are also easier to explain to a wide group in a 2-3-minute video than, for example, through back-office activities in the B2B sector. As I mentioned earlier, for many companies it is an excellent tool for attracting investors, prospective customers and increasing recognition.

Crowdfunding gained its greatest popularity abroad. What does this system look like on the Polish market? What platforms may be used by startups deciding on this form of raising funds for development?

In the world, the largest crowdfunding platforms can be found in the UK — those are Seedrs and Crowdcube. Interestingly, in the U.S. such solutions practically do not exist due to local regulations, so reward-based platforms, such as: Kickstarter and Indiegogo are much more popular, although Indiegogo is launching its equity crowdfunding with Microventures. In Europe, after the UK, the largest is Fundedbyme from Sweden, which I am currently launching in Poland and which has more than 115 000 registered investors.  Apart from the EU, Israel is also a large market. OurCrowd is a marriage of equity-crowdfunding and VC investments. The market in Asia is also growing dynamically. In Poland we have such platforms as: Wspieram.to, PolakPotrafi and many others, as well as several equity crowdfunding platforms, such as Beesfund, Crowdway and a few others. This year we have also launched FundedByMe.

What requirements must be met in order to benefit from crowdfunding? Is it a good form of support for young business?

I know that other platforms in Poland also support young startups, which are only just verifying their business models. At Fundedbyme we focus primarily on start-ups in the growth phase, which have revenues of over PLN 30 000 per month, a large user base — at least 10 000 customers, users or followers, are present or want to be present in foreign markets. These are primarily companies operating in the B2C area, but we do not close ourselves to B2B projects if they have a sufficiently large community. It would be good for the company to be in the process of obtaining financing from a VC fund or Business Angels, we are also open to co-investments on the platform. Of course, not all the points have to be met — four are already a good result.

Who can become an investor? Can crowdfunding provide technological start-ups with a partner for business development?

Practically everyone can become an investor, minimum investments in Poland start from PLN 50. At Fundedbyme we will start from about PLN 500 for a minimum investment. We want investors to get involved and help startups in their development goals. We strive to make crowdfunding a window to the world and to ensure that investors who invest in a company from Poland also help it to develop on their local markets. To a large extent, however, it depends on the startup activity in communication with its investors. We advise our investors via monthly e-mails — it helps us build cooperation.

In order to register with us on the platform, feel free to visit www.fundedbyme.com

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Where did you get the idea to start your own business and develop such a solution?

Miron Tokarski: The idea of a portable laboratory for rapid infection diagnosis came up when I was working at the University Clinical Hospital in Wrocław. Very often we needed immediate results, for example in the case of children who had undergone a transplant. In these circumstances, targeted treatment of the infection must be implemented as soon as possible. Unfortunately, currently available genetic diagnostics technologies require the use of a number of specialized equipment and appropriately trained personnel, which significantly increases the time of waiting for the result. Our technology allows us to drastically reduce the waiting time and enables the test to be performed by a person without laboratory experience.

It sounds very innovative. What is unique in your technology and why is it so important for diagnosis?

MT: The SNAAT technology, which was developed by the Genomtec team, significantly simplifies the analysis process by enabling the test to be performed outside the laboratory, e.g. in a doctor’s office. All you need to do is take a few drops of biological material, e.g. urine, blood from a finger puncture or an oral swab, apply the material to a disposable reaction card and place it in a device the size of a smartphone. The entire analysis process takes place automatically and a highly reliable result is available in less than 20 minutes.

What were your beginnings in business like? What difficulties have you encountered on your way?

MT: The beginnings are sometimes difficult, especially in the case of startups from the biotechnology industry. We were lucky to find investors with experience in developing technology companies in the field of medicine. Thanks to that they understood that in the case of this type of solutions, building a technology development strategy from the very beginning must be thought through and systematized. Ultimately, Genomtec ID will be used to make decisions about your health and, in some cases, your life. There must be no room for confusion here.

Where did you get the idea to participate in MIT Enterprise Forum Poland?

MT: The MIT Enterprise Forum Accelerator is a world-renowned startup program and one of those most appreciated for the quality and content level of workshops and mentoring sessions. Our goal within the framework of cooperation at MIT Enterprise Forum Poland was, and still is, to learn. It sounds banal, but in the accelerator we gained a lot of practical knowledge about verifying business models, defining bridgehead markets and ways of conducting talks with potential investors and partners from the USA. Despite the end of the program, we continue to maintain active contact with mentors. The development of technology and the company on the American market is particularly important for us, as it is a priority direction for Genomtec in the coming years. This was a milestone for us on our way to conquering the marketplace overseas.

You managed to get to the group of the lucky ones who will go to Boston. Genomtec also won an award in the CVC Young Innovator Awards competition – a cheque for PLN 100,000. In your opinion, what is the recipe for success?

MT: The recipe for success consists of several components. The main ones are: adapting the product or service to the needs of the market and customers, intensive work, as well as total involvement in the project. But be careful. Founders often have too much insight into their ideas to see that this is not what the market or the customer expects. Therefore, before the product development process begins, it is necessary to conduct a thorough market analysis through customer interviews, surveys or participation in an acceleration program. It will allow you to verify your idea with experts using the tools that we learn during the workshops.

What should young entrepreneurs who are just starting out in business remember first of all?

MT: Each startup is different and each business needs a specific type of support in the subsequent stages of its development. In preparing for an acceleration programme, it is important to be aware of one fundamental thing – what we really need in order to succeed. It can be a list of priority items that will allow to optimally use the range of possibilities provided by acceleration programs or supporting business development in the form of e.g. access to knowledge and experience of Polish and international experts. You must consciously pursue your goal. No less important is the aspect of the nature of the project. It is important that startups properly consult their solutions with users and experts in a given field, thus ensuring that they solve a real problem that has a wide impact on society. In this way, their chances of success can be significantly increased.

What are your plans for the future? In which directions do you want to develop your company?

MT: Currently, we are planning to attract an investor in Poland or Europe, whose funds will be used as a contribution to grants. We also look forward to help in expanding  the Genomtec ID device to TRL 7-8 (TRL: Technology Readiness Levels). Next year we intend to develop the company and technology on the American market in parallel with acquiring a new business partner.

The post The success consists of many components – Genomtec’s case study appeared first on StartSmart CEE.

As shown in the report “Polish business strong thanks to women”, Poland has a leading position in Europe in terms of the number of women in senior positions. 34% of senior positions are held by women – this is a higher result that the European average (27%) and global average (24%). There is also a growing number of start-ups run by women. According to the study “Polish start-ups 2017”, among founders or co-founders of start-ups, women constitute 29% – female representation was 26% a year earlier. Meet Paula, Jagoda, Kasia and Mirosława, participants of MIT Enterprise Forum Poland and the companies they created and developed.

All under control – Paula Rettinger-Wietoszko, Hospicare

Eliza and Paula are the founders of the Hospicare start-up the purpose of which is to improve quality of life for patients with chronic diseases who stay at home, by facilitating communications with their careers and medical team. This original online application collects all information about the patient’s disease – its history, complete medical documentation, and all significant parameters. Additionally, the solution allows for remote consultations and communication will all persons engaged in the process of caring and treatment of the patient.

“My partner Eliza came up with this idea. She was taking care of her daughter who was in the care of a home children hospice for several years”, says Paula. “Normally, such care is provided by numerous people, among others a medical team, carers and teachers, and the entire documentation in paper form is stored in many places. Hence, the idea to create a tool which will collect all the necessary information and allow for remote access to such documentation to each person engaged in the process.”

And this is how the Hospicare application was created. It contains all the necessary information concerning a given patient, e.g. the medication administration schedule, the volume of medications, all the necessary contact details or parameters concerning the patient’s well-being. Thanks to this, patient care becomes much easier and safer. The company was awarded numerous prizes for its solutions, such as Mobile Trend Awards 2016 or the first award in the ABSL Start-up Challenge 2016 conference.

“Our HospiCare project has been a social project from the very beginning, provided for free to home children hospices in Poland. This constituted a challenge. We had no support in creating a commercial project which would allow for the development of the idea, hence the idea for acceleration. MIT Enterprise Forum Poland allowed us to get ready for the real business world”, Paula adds.

So far the company has developed two additional application variants: OncoWay for oncology patients and SanaCare for sanatorium or spa patients. Currently, the company is cooperating with KGHM TFI to implement the latter. Asked for advice for women who commence their path in business, Paula says boldly: “Don’t be afraid, never lose faith and never stop fighting!”.

Instant reading – Jagoda Pieścicka, Nu Delta

Jagoda is the founder of Nu Delta, which developed an algorithm allowing for quick recognition and interpretation of information from paper documents using artificial intelligence. The solution has a very wide range of applications in all data entry processes and allows for the improvement of accounting operations thanks to the automation and elimination of human errors. What is helpful if you start you own business according to the founder of the start-up? Big faith and determination, but also having personality traits useful in the business world.

“I have always felt that my own business and team management constitute a good place for me”, says Jagoda. “From the very beginning of my professional carrier I have been involved in management and I have always felt good fulfilling this role. I also often participated in business meetings as a representative of companies I worked for. I believe that my own business was a natural step in my case, in particular taking into account my professional experience related to accounting.”

According to the founder of Nu Delta the initial business idea was not hers, but she believed in its success, therefore she decided to develop it. She succeeded. After her independent attempts to attract her first customers, Jagoda participated in the second edition of MIT Enterprise Forum Poland, thanks to which she took part in a boot camp in Boston and commenced cooperation with PKO Bank Polski. Additionally, as the first start-up in Poland, the company implemented its solution at BGŻ BNP Paribas. The list of successes also includes one more – building a team Jagoda perceives as a family where people may count on one another in all situations.

“It is not worth being afraid when thinking of establishing your own company when there is a chance to do so. Such an opportunity may not be available again. Even despite some failures, do not give up and believe more in the strength of your project” she adds at the end.

Currently, the company focuses on the development of reading technology to adjust it to the needs of customers from various sectors also on foreign markets. The closest goal is to cooperate with insurance companies to create an algorithm to read insurance policies.

More than one business – Katarzyna Sawicz, Innovalab and AliaTechnics

Kasia thought about starting her own business when she was completing her PhD studies during which she was interested in utilitarian research, allowing for the use of science in industry. Working on her PhD dissertation, she came across a problem with forgery of original materials reported by one of the companies. She decided to try to solve it. In this way, an idea for her own business appeared, and experience gained in business later supported another venture.

“I applied to participate in a competition for PhD students for the best business plan in which I used the case of marking original materials and I presented my idea for a solution. I managed to get the first prize which strongly empowered me”, says Katarzyna.

The idea for chemical marking of plastic materials which ensures protection against unfair competition guaranteed her victory in several competitions for start-ups. Thanks to her victory in one of the competitions, she got a chance to go to the Silicon Valley and present her idea, which allowed her to be included in the final thirteen. After several years of operations with Innovalab she decided to participate in the second edition of MIT Enterprise Forum Poland. She also participated in the next edition, however with a different solution – AliaTechnics start-up.

“I met Wojtek Okraszewski who is the main originator of the project. I had a chance to see his works and implementations in the field of magnetism and porous sinters. I saw great potential in them and having certain experience in business, I decided to support these ideas from the business perspective”, she admits.

AliaTechnics is involved in developing and delivering solutions based on magnetic technology using non-contact interactions with a product or machine, using a properly shaped magnetic field and porous sinters. The first technology allows, among others, for the improvement of the efficiency of industrial machines used, for example, in the mining sector, enabling the reduction of operating costs related to their maintenance.

Currently, the company is implementing its own invention in the form of a controlled magnetic hybrid brake. The uniqueness of the solution, which may be used for example in the production of cables and other unfinished materials, involves control and optimization of the production process and guarantees repeatable quality of the final product parameters.

The right parameters, i.e. science for business – Mirosława El Fray, Poltiss

Mirosława El Fray is a titular professor at the West Pomeranian University of Technology Szczecin where she also fulfils a function of the head of the Institute of Polymers, Didactic and Research Nanotechnology Centre and the head of the Department of Functional Materials and Biomaterials. She also gives classes in the United States and in Germany, and for several years – she has been running her own business. Poltiss has an exclusive license for the original solution in the form of an innovative material developed in cooperation with Dr Jędrzej Skrobot, PhD (West Pomeranian University of Technology Szczecin), and the technology is protected with two Polish and American patents. Currently, patent proceedings are being conducted at the European level.

“Numerous professors abroad, apart from their scientific careers, try their strengths in business, starting their own companies. In Poland such an approach has only started to develop, and we still have a long way to go”, says Mirosława. “Convinced by my partner, who promised to support the project from the business side, I decided to undertake the challenge and translate scientific ideas into the market reality.”

The idea involved creation of a new polymer material thanks to which hernia treatment can be non-invasive, and the material itself resorbs into the patient’s body after some time. The technology allows for the elimination of side effects which may occur in the case of currently used materials. Despite this extraordinary solution, the beginnings in business were not the easiest.

“The idea and development of a new technology is one thing. In the case of solutions based on delivery of new materials for medical applications, the validation process takes a long time. It is associated with pre-clinical trials and then clinical trials which not only confirm validity of their application, but also guarantee that the implemented solution is safe for future patients. Investors are not always able to understand it”, Mirosława admits.

Poltiss managed to attract an investor thanks to whom they can commence another cycle of works towards commercialization of the technology. This is one of numerous successes the founder of the company is proud of. Among the reasons for her pride, she also lists her participation in the first edition of MIT Enterprise Forum Poland during which she was included among the finalists participating in the workshops in Boston.

“Truth be told, each small step in the development of the company was a great success for me. It was associated with a lot of effort and time committed that is often lacking due to the multitude of obligations”, highlights Mirosława. “Therefore, it is important that people who think of starting their own business have the right “parameters”. Thanks to such parameters and support of your friends and family, many ideas can bloom and succeed.”

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