1. How does the current start-up ecosystem in Poland function and what is the potential for its further development?

The start-up ecosystem consists not only of start-ups, but also financing entities (e.g. business angels, investment funds, development agencies, innovation-oriented corporations, etc.), entrepreneurial academies, business environment institutions, research and development entities, universities, technical universities or all spaces, events and conferences giving an opportunity to network as well as integrate the start-up environment. Experts say that a properly functioning “ecosystem” of start-ups is a condition for the development of innovation.

According to the Deloitte report entitled “Diagnosis of the start-up ecosystem in Poland”, on the basis of the adopted definitions of a start-up and its ecosystem, five key areas have been distinguished to ensure the sustainable development of these thriving entities. These include: financing, legal regulations, human capital, social capital and the institutional environment. When it comes to legal regulations and the institutional environment in Poland, they work really well. Human capital is moderately developed, however, recent observations and feedback from the market seem to indicate that its level of development is getting higher and it is starting to strongly attract both foreign start-ups and foreign investors.

In recent years, we have noticed a very dynamic development of the Polish start-up ecosystem. What is particularly noteworthy is the fact that Poland is currently the largest pool of public funds available to finance start-ups, high-technology companies and high-risk companies compared to all of Europe, e.g. PFR Ventures – the fund of funds. 

The largest fund of funds in Central and Eastern Europe (FoF) offers repayable funding through selected financial intermediaries, e.g. venture capital funds or business angels. Established as part of the Start In Poland program, the company has an investment budget of nearly PLN 3 billion. Its activities are focused on supporting innovative companies and enterprises at various stages of development: from the earliest phase, through the seed stage, first implementations and the growth and expansion phases..

2. What can Poland offer to young companies from abroad?

This question is perfectly answered by the opinions heard during the last WolvesSummit conference in Warsaw on 19-20 March. In order to reach the largest number of key ecosystem entities (including representatives of corporations and investors), the participation of start-ups in WolvesSummit is free of charge. The conference, which is getting more and more popular every year, attracts lots of talented participants. The ninth edition of WolvesSummit has attracted: 450 Start-ups, 100 Scale-ups, 300 Investors, 450 Corporate Representatives, 2,500 Participants, 4,500 1:1 Meetings.

Both from appointed and accidental talks with representatives of start-ups and investors from abroad, it appears that Poland has become a very strong magnet not only for beginners, but also for more experienced entrepreneurs from other, often more economically developed markets. The most frequently mentioned reason for this positive phenomenon is human capital. Among Polish employees, it is not difficult to find not only highly qualified specialists and experts who know foreign languages, but above all, it is internal motivation, commitment, certain mindset and willingness to work that counts. Generalizing, it seems that Polish generations of millenials are not characterized by such negative qualities often referred to as a problem in the West. In addition, foreign guests indicate and confirm that the start-ups market in Poland is experiencing dynamic growth at the moment, while in many Western European markets (e.g. The Netherlands, Belgium) “there is stagnation and little is happening, even the most junior employees are very demanding, demotivated and little involved. ” The argument of low (relative to Western Europe) expectations – or perhaps more accurately: the prevailing standards as to the level of financial remuneration of employees in Poland – was not directly pointed out, but it certainly has a considerable significance.

3. What are the benefits of registering a company in Poland?

At the WolvesSummit conference, there were many foreigners representing start-ups participating in the POLAND PRIZE program (Polish offer for foreign start-ups intending to move or open their business in Poland), who, with no exceptions, praised both the quality and range of services received and the entrepreneurial climate in Poland (the most frequently mentioned cities were Warsaw and Poznań).

Many other foreigners who attended the conference (e.g. experienced entrepreneurs, representatives of start-ups, investors) were moving or have already moved their operations to Poland, praising our country for a great start-up boom and huge resources of young talented people who are “eager to work.”

In a nutshell: the greatest benefit for entrepreneurs from across the eastern border is the opportunity to start operating in the EU and access to many EU markets simultaneously; for entrepreneurs from other, more economically advanced markets, Poland is still an attractive market with many little-developed and prospective niches.

The post Are you from the CEE region and have a technology start-up?Check why it is worth developing a business in Poland and how we can help you do it! appeared first on StartSmart CEE.

What exactly is MIT Enterprise Forum CEE? 

We are an acceleration program, a part of the global MIT Enterprise Forum organization, affiliated with one of the world’s best universities – the Massachusetts Institute of Technology in Boston. Our main goal is to support technological start-ups from Central and Eastern Europe in accelerating their development. It is mainly about young companies that create innovative solutions for various industries, yet, despite the high utility and uniqueness of developed technologies, they are experiencing problems with being successful on the market. Contrary to what one might expect, it is very common in the start-up environment. It should be remembered that technological companies at the early stage of development, as well as those that already have a finished product and the first sales results, face many challenges, often ones that are difficult to address on their own. First of all, it is the lack of knowledge, experience, financial background or reaching customers, that makes it difficult to earn real money. The role of the accelerator is to support start-ups in overcoming these barriers and help in turning a great idea into a real, thriving business.

How do you do it? How does acceleration in the MIT Enterprise Forum CEE program work?

It is a complex, comprehensive process that aims at preparing technological start-ups in the best possible way to achieve market success. We start with organizing business assumptions. During workshops based on the methodology of 24 steps of disciplined entrepreneurship developed by Prof. Bill Aulet, we focus, among others, on pricing and sales policy, market segmentation, creating an end-user profile, etc. This systematic process is to lead to the rapid commercialization of technologies developed by start-ups. We also want to refine the business models of start-ups – so that they allow further, effective development and earning money. We assign each start-up to, among others, two dedicated mentors – experts who have achieved spectacular successes in international business. Mentors, having in-depth knowledge of a given industry, could guide start-ups, give direction for further development and provide clues to what markets to choose and how to position the product to achieve measurable results. We also develop the competences of start-ups in the area of legal issues, patent protection, sales, raising funds for further business development and effective presentation of solutions to investors or potential business partners. Then, they are comprehensively prepared for dynamic development.

Start-ups that qualify for the program also receive support from large enterprises …

We assume that the necessary element for the development of a technological start-up is to verify the potential of its solution in a market environment, preferably by the leaders of a given industry or sector. We are proud that leading Polish and international enterprises are involved in MIT Enterprise Forum acceleration – they facilitate their infrastructure, share their knowledge and experience and delegate the best experts to cooperation with start-ups. Pilot schemes that are implemented with the participation of our Partners allow start-ups to better understand the market realities, formal constraints that are associated with the implementation of technology data or the needs of large enterprises. What is important, the effects of cooperation often include commercial implementations, thanks to which start-ups not only obtain funds for further business development, but also references that help them win more clients – not only in Poland, but also abroad.

Where exactly? 

First of all, we think of the broadly understood European market. Start-ups that qualify for the program have a unique opportunity to establish cooperation with leading enterprises, which are recognizable throughout the continent. References obtained from them facilitate further expansion in Europe. It should be emphasized, however, that MIT Enterprise Forum CEE, due to its links with the Boston ecosystem, is also focused on the development of start-ups on the US market. In each edition of the program, we choose five teams that take part in the weekly Bootcamp in Boston, where they have the opportunity to establish important business relations with local entrepreneurs, and to present their technologies to investors from the USA. For many of them, this is the first major step to develop their business on the US market.

What start-ups have the chance to qualify for the MIT Enterprise Forum CEE program?

To apply for the program, we invite start-ups from all Central and Eastern Europe, which not only develop innovative and unique technologies, but are also market success oriented. This is a very important criterion. We want to help teams that are ambitious, determined and not afraid of challenges. We believe that such start-ups, with our support, have a chance to achieve real international successes.

I invite you to submit applications by March 3 at (LINK)

The post A NEW CHANCE FOR START-UPS FROM THE CEE REGION! DO NOT MISS OUT! appeared first on StartSmart CEE.

• Delivering the perfect pitch is very demanding. The idea is to present your startup in a very short time (for example 3 minutes).
• Covering all your research, accomplishments, team, market and your secret sauce that makes it all 10x better than 1000 companies doing just the same in 3 minutes may sound impossible, but it became very popular.
• Choosing the most important information for those 3 minutes is what the real challenge is.

Here are a few tips to help you start off, even if you pitch for the first time.

#1 What do you want?
Before you even start preparing your pitch, you need to know what the best possible outcome is. Are you looking for an investment, a customer, feedback or votes to win some pitching contest?

If you have only 3 minutes, you want every second to matter and focus on getting you to your goal. Every nuance matters, so make sure your pitch clearly states what you expect to happen.

That’s the only step where you look at your pitch from your own perspective. From this point on, consider every question from the perspective of your audience.

Tip 1: write down the best thing that can happen after you deliver your pitch.

Example: I want to get a 1h meeting with the innovation manager from consumer bank.

#2 Who do you pitch to?
If you want to inspire a certain action, you need to understand your audience. Even if you pitch on stage, in front of 1000 people, it’s sometimes worth to focus on the single person that can help you move things forward.

You will use different arguments, depending on my interests, my professional experience, my goals. The most important things you want to understand about your target audience is their fears and greeds.

Are they after another unicorn or afraid of losing the momentum to have an AI company in the portfolio?

Do they want to cut costs and save money or free their people from repetitive work and let them grow the company?

Tip 2: write down who your target audience is (e.g. VC, Customer or a specific person), what they fear and what they greed.

Example: I’m talking to the VC partner that’s afraid to miss the opportunity of getting to Fintech space.

#3 Why should your audience care?
8.5 seconds.

This is how much attention a person gives to a new message. If you don’t convince me to make an effort of focusing on your message for a longer time – you need to make me interested.

People are egocentric, they care about themselves and they have no interest in growing your business. It’s good news, it means they want something for themselves and if you are able to show them that you might move the needle for them – you get their attention.

Getting attention and inspiring action is what pitching is about. Ask yourself: what is the big thing the customer is struggling with and tap this topic within your first 8.5 seconds.

Just use this time to buy my attention with your promise or your story.

Tip 3: Understand what the customer’s fears or greeds are to attract and keep attention for longer.

Example: “Churn prevention strategies that telecoms use today win back 10% of the customers. Using SaaS Manager, our customers win back more than 30% and I can show you how.”

#4 What do you want them to do after your pitch?
You will not get what you didn’t ask for. You are a startup, not Lamborghini, people will not just beg you to let them touch your new product, invest in your startup or invite you on stage.

Make an ask.

Top 4: Tell what you want the audience to do. Specifically.

Example: “I’d like to meet with 5 banks to verify if they would use sales data for scoring customer’s credibility.”

Oryginally published on LinkedIn

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Future entrepreneurs who plan to set up their own business, often have many ideas in their minds, which not always have a chance of success. How do I find or choose an idea to multiply it?

Sergey Yatsunenko: Today’s world is quickly penetrated by a great deal of information to all possible sides. In search of an idea, it is worth learning how to search, filter and use it efficiently. Every year, many reports are published on what solutions or technologies will be developed in the future. For example, IBM prepares a diagnosis for the five main directions that will be most intensively developed in a given year. Moreover, there are a great many patent applications, publications or scientific and scientific articles. They show more and more new markets and niches. That is why it is good to be up to date with novelties, patent applications and reports from the field of science. Although in Poland the approach of combining science and business is still developing, it is worth remembering that the scientific community is a mine of ideas for innovation, which can be used in business. In my opinion, all technologies in the area of medicine and health will be largely developed in the coming years. Just look at how many human health monitoring devices are currently available. There is still a lot to discover and act on here.

There is also another method that has worked in China and South Korea, for example, to create cheaper equivalents for products offered by large corporations. Of course, these products are often protected by patents, but there are effective tools to create an alternative patent that describes a technical system that provides the same functionality without infringing on intellectual property. Such a method can be very successful among startups because of the fact that the product already exists, there is a demand for it, but an additional benefit can be provided, e.g. in the form of a lower price, which customers would have to pay.

How to focus on a specific idea? What criteria should be used?

SY: Our company offers solutions and services on the basis of modern methodology of the Theory of Innovative Task Solutions (TRIZ), one of the elements of which perfectly describes the future benefits is the so-called Main Value Parameter (MVP). It is such a feature or parameter of the product for which the customer is ready to pay. Looking for these parameters, we are able to assess in depth what the customer expects, needs and is willing to invest their money in.

On the other hand, young entrepreneurs can go to a patent attorney with their ideas for an opinion on a given solution, whether it is a novelty within the framework of a set of current patents. The demonstrated novelty of a product or technology may be the basis for continuing in the chosen direction. However, it should be remembered that this does not immediately mean a guarantee of success. It is also worth carrying out, at the outset, a preliminary analysis which will eliminate any previously unidentified unfavourable areas. It will also provide startups with information on the size of the desired market and the products that exist in it. A comprehensive picture, which of course will contain an idea and a product with a specific functionality, but set in a market context deepened by an analysis of trends and what is happening around it, will allow making the right decisions. Analysis of patent applications can provide a high dose of knowledge in this area.

Are there any main principles that people planning to start their business should follow?

SY: As I have already mentioned, a thorough analysis of the idea and its embedding in the future business environment is important at the beginning, on the basis of which the implementation of the idea would be justified. Another important principle is to build a team. Without it, it will be very difficult to do anything and ensure further development. It is important that it is composed of good people who have clearly defined goals, understand each other, do not get offended when they receive constructive criticism, and are able to give way in discussions and continue to move in one direction together. When we build a team, difficult tasks are no longer terrible. Due to the fact that startups very often lack financial resources at the beginning, it is important that the team is sometimes able to work on a project for a certain period of time “for an idea” and believe in its success.

As far as the steps are concerned, let us assume that we already have an idea and technology, what next? What are the next steps ahead of the future startup?

SY: If we already have a technology or a product and assume that it is innovative, then I think, looking at the classic approach, one of the tools used to create a strategy and a development plan is to analyse the S-curve. It contains formulas that calculate indicators that enable us to determine and improve the functionality of the product while reducing costs. We have other tools for this, such as trimming. The methodology we use at Novismo allows us to lead a good idea to success algorithmically and effectively. And when it comes to costs, it takes money for every entrepreneur to get out of the market. Therefore, the next steps should be aimed at convincing the potential investor to believe in the success of our ideas and to establish cooperation with our company. It is also important to move at the right time from the startup stage to a small company that already operates with certain procedures implemented, or in other words, that meets the requirements set for us by mature business and the market environment. At some point it should also be understood that the novelty of the solution developed by the startup must be somehow protected. One needs to define a strategy for the protection of intellectual property. This can be patent protection, the creation of a so-called patent umbrella, or other protection. For example, Coca Cola has no patent protection at all, and only selected people have access to the recipe and technology.

And what about situations when the implemented idea turns out to be a failure and the young entrepreneur fails? When should we give up and when should we change the path we have taken?

SY: When there are signals that show that something on the way to achieving business goals goes wrong, it is certainly not worth continuing the same activities. The company would then find itself at the same point and start turning round and round. In such a case, corrective actions should be taken in order to change its situation within a short period of time. Personally, I am in favour of adopting from the outset measurable parameters and criteria, both for failure and for success, and defining the time at which they will be achieved. If this is achieved, a critical situation should not arise or a threat can be resolved in a timely manner. Otherwise, you have to make a decision and give the next idea a chance, or more make a more painful decision about the final closure of the project. In my opinion, too, the idea should only be forgotten if something goes wrong despite the maximum commitment, effort and labour. And if it still goes wrong, this does not mean that you have to forgive your business at all. You have to be persistent and consistent, because that is the only way you can get us there. And the road to success is bumpy and leads through many minor failures. If one idea hasn’t panned out, it’s not worth giving up; it’s worth moving on to another one, with all the experience gained along the way.

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What are the sales-related problems of technological startups in Poland?

At what stage of work on your product should you start looking for customers?

How to present your idea to potential customers?

How to talk with your client?

How to deal with your clients’ prolonged decision-making processes?

The post How to run an effective sales operation, whilst being a tech startup? appeared first on StartSmart CEE.

Why is the protection of appropriate intellectual property rights so important for the activity of technological start-ups already at the early stage of their development?

Adam Pawłowski: The principle of official industrial property protection consists in the novelty of this solution on a global scale.  It is advisable to visit the patent office first and to make the solution public only later. Making the information public consists in sharing such information concerning a given solution which enables at least one person from the outside to get familiar with it. This is of particular importance in connection with talks with potential investors which are not conducted basing on confidentiality agreement. In such case, disclosing the information relating to the solution, necessary from the perspective of the talks, may later be considered as making it public, which will interfere with obtaining the protection or will make it invalid. Applying for intellectual property right is thus a way to protect the idea against being copied on the early stage. What is more, such application results in the necessity to regulate property rights in the company. It gives the investor higher investment security when the start-up has concrete rights and know-how which can be found not only in the heads of its employees, who can leave a given company at any moment.

Anna Piechówka: Intellectual property is the source of competitive advantage. It is of course impossible to get full protection of the idea itself, but for example trademark registration or obtaining a patent ensures the security for some time. What is more, investors often expect start-ups to protect themselves. A technological start-up whose property is not protected, does not hold registered patents or patent applications, wouldn’t be worth much. Protection rights may also constitute a way to get profit, e.g. through licensing intellectual property.

How can beginner entrepreneurs protect their intellectual property? Which forms of protection are the most beneficial for start-ups?

Anna Piechówka: It all depends on which intellectual property is the most valuable in the company. In the majority of cases, this will be an invention, industrial design or utility model. Trademark registration is recommended when the start-up intends to commercialize the solution under their own brand. In turn, when the entrepreneurs want the product to function under a different brand, it is worth to consider technological issues or copyright. At the initial stage of business activity it is a good idea to audit intellectual property or consult these issues with an expert – especially when it is difficult to specify the subject of protection.

Adam Pawłowski: It is also worth considering whether in the future, it will be possible to report the infringement of patent or utility model, which may turn out to be particularly difficult in the field of technology. When searching for the information on protection subject in a given sector, it is advisable to analyse patent applications – whether they are submitted at all, in which countries and what they include. It is thus possible to adjust our activities to market trends, which facilitates the search for investors.

What may constitute the subject of intellectual property protection in a technological start-up and what is excluded from this right?

Anna Piechówka: In general, intellectual property follows the rule that these are not ideas themselves which are subject to protection, but the ways of their expression. When it comes to software, it is for example the recording method, source code and not the idea for the application itself.

Adam Pawłowski: In industrial property rights, protection is granted for solutions of a technical character, while different technologies may be to a different extent protected by other offices. For example, obtaining protection for software in Polish patent office is impossible, but it can be easily obtained in a European or American office when the software is connected with technology. As far as exclusions from protection are concerned, they refer in particular to those solutions which are not technical, but can be described as abstract, e.g. business or marketing services. In this case, brand protection can be based on trademark protection.

Do legal methods of intellectual property protection have any disadvantages? How can we prevent them?

Adam Pawłowski: The most important disadvantage of a patent consists in the necessity to reveal the details of invention in order to enable the expert in a given field to implement it. Another big disadvantage is constituted by the costs, especially of foreign protection; however, it is worth to apply for it as it has positive influence on pricing. On the other hand, high patent costs are spread over the years, it is possible to forecast them and include in subsequent investment stages.

Anna Piechówka: The aspects of cost and territory for sure constitute here important disadvantages. At the early stage of activity it is a good idea to invest in most necessary solutions as well as to choose the territory for which we want to obtain protection. For example, a trademark can be protected in Poland, in Europe or in subsequent countries. It is connected with higher cost, but also with preventing the risk when a foreign follower starts using the same mark – in such case it is very difficult to regain it.

What mistakes are made by start-ups in the field of intellectual property or patent protection? How to avoid them?

Anna Piechówka: A frequent mistake, made in particular by software start-ups, consists in using free GPL-type software. According to license conditions for such software, the developed program may have to be subject to sharing. In this case everyone would have the possibility to share program source code, which excludes the possibility to benefit from software protection. For this reason it is so important to read license conditions and provisions carefully. It is also necessary to remember that proprietary copyrights are automatically transferred only under employment contracts.  In other situations it is necessary to take their transfer into account for the ordering party to have the right to programmers’ work. For the protection of know-how, necessary security measures include appropriate confidentiality agreements not only with co-workers, but also with partners and customers. Start-ups often do not take intellectual property under consideration, do not perform the analysis or introduce protection strategy which would enable them to minimize the danger resulting from undesired use.

Adam Pawłowski: Even when the start-up does not succeed, industrial property rights remain protected. In this way, they become an asset which may last longer than the start-up itself and may be transferred to other enterprises.

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A well- established team in a start-up – what does it mean? What kind of teams attract investors’ attention? What is of crucial importance?

Krzysztof Krawczyk, CVC Capital Partners: The first dilemma related to team building is choosing the right moment. You cannot miss the point when a one-person start-up becomes a limitation to itself and must turn into a team. Needless to say, at an early stage of business development, an entrepreneur doesn’t have sufficient means to invest in building a comprehensive team covering all the key capabilities. Building of a team is a process, which should start at the very beginning of business operations and progress gradually, focussing on the key roles for continued business development. The main team shapes the culture of the entire organization, something that cannot be achieved by preparing a slideshow that would take a few days to complete. Organizational culture is one of the key factors determining success at subsequent stages of business development and hence many investors take into account its formation process starting from the earliest stages when making business decisions.

Every start-up wishing to be successful and planning to develop on a large scale cannot rely on one person only because of the possibility of prosaic mishaps and the fact that even the best leader has some weak spots, which he may not be aware of himself. Building a team can also bring immense satisfaction and be a tangible proof of our accomplishments, development and inspiring others with our vision. A well-established team is made of people who share a common set of values. This means that the people in a given company perceive business operations and goals related to them in a similar way, which is the very foundation of building an organizational culture, which, in turn, as I have already mentioned – is of primary importance in any enterprise.

Team leader – one or a few? How would you characterize a good leader?

KK: Every business leader must be very much success-oriented. It’s exactly this determination in pursuit of success that will decide who will be the winner and who will be the loser. How many entrepreneurs would follow in the footsteps of one of the laureates of the previous edition of the CVC Young Innovator Awards and would sell their apartment to finance another stage of their business development and how many would give in and decide not to take the risk? Second of all, a leader should not only focus on the greatness of the product he has created, but also about on how great a company he wants to build. As I have already mentioned before, a good leader should be aware of his weak spots and, bearing them in mind, carefully choose his business partners and assign them with tasks accordingly. Being a visionary won’t prove useful in this process, which requires effective managerial skills.

When it comes to the number of leaders in a start-up: whether there should be only one leader or whether “multiple voices” should be heard, I am rather sceptical when it comes to the effectiveness of democratic solutions in business. Let us have a look at the contemporary global leaders created over the last past decades – a well-established team was always led by a charismatic leader, who inspired and motivated everybody to work hard. At the preliminary stages of business development there may be a dissonance between motivations and goals of the leader and a part of the team. Therefore, a leader should discern whether he made no mistakes while building the organization that should be corrected immediately instead of aggravating the dysfunctionality or conflict. At the end of the day, it’s the leader that risks the most and remains responsible for his business, so he is the one to make business decisions in line with his instinct and to the best of his knowledge.

What’s important for investors when assessing the team and its leader?

KK: Investors care only about products in the market context: why does a client need exactly this product or service and will he be using them rather than the already existing ones or ones that may appear in the future. This is the foundation for a business plan and making an investment decision. When you strive to obtain financing, you should equip yourself with plenty of market arguments proving that a start-up is well acquainted with the client, knows his preferences as well as the ecosystem it wants to operate in. As for team assessment, the key issue is its complementary structure, various experience, varied employee skills and coherent vision. Another thing is the motivation and business sentiment of the key players, which can be evaluated, for instance, by their stake in the business. This is a guarantee for the investor that they will make sure his money is invested wisely and treated as their own, and that they will not drop out of business disappointed by the first obstacles. It is also good to know that the team is complete at the given stage, i.e. provides such human resources and skill sets which allow to make another step in business development as well as ensure effective use of the available capital. Being an investor myself, I frequently make conditional decisions about getting involved in a project and a team depending on whether it’s complemented.

What are the most frequent mistakes that teams commencing talks with investors make? How to avoid them? What should you remember about during the talks?

KK: First of all, every start-up should answer the question “Why do I need capital”. This is where they frequently make a mistake by merely identifying the goals without setting them in a slightly broader perspective. They should determine for how long the given funds will be sufficient, what they will allow them to achieve and what comes next – how much money will a start-up need before it becomes self-sufficient. Not all the investors are equally patient or have the same amount of capital, so it needs to be determined whether an entrepreneur is aware of the investor’s resources and knows whether – as long as the given objectives are reached –  he will be interested in participating in another round of financing? And last but not the least – it is important whether both the entrepreneur and his investor share a common understanding of a time horizon and a way of getting out of the investment.

Once we have already invited an investor on board, what comes next? How to build good relations with investors?

KK: Again, both the entrepreneur and the investor alike should ask themselves this question before they start collaboration. We strive to find a perfect balance between the investor’s need of comfort and the capabilities of the fledgling business. The most popular solution is to hold regular meetings on the executive level, which in case of smaller businesses, are less formalized. Both parties should agree on such a formula that would ensure enough time spent together so as the investor can rest reassured that the start-up is moving in the agreed direction and they should also determine how often the meetings are to be held and what information should be exchanged. A good investor will help a fledgling business in this respect and suggest solutions facilitating mutual communication. And the best investor is such that, besides offering his capital, will also assist us with his expertise or the knowledge and experience of his experts.

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It is often said today that a good team is one of the guarantors of the project’s success. Why the team in a startup is so important?

Romeo Grzębowski, Extended Disc Polska: Simply speaking, the times of geniuses, inventors and people broadly gifted on many levels are over. Today’s world is so complex that it is simply impossible to act alone. Implementing a project, especially an innovative one, which is supposed to succeed, we need knowledge and experience in many fields, looking at business from various perspectives – and this can be ensured by well-selected colleagues. For instance, a person who produces technologies may not have the skills necessary to sell them, and without that even the best ideas lose their chance of commercial success. Similarly, preparing a business plan – it is significant to critically look at its assumptions, from another perspective so that implementation is as real as possible. Therefore, it is worth having colleagues thanks to whom you can avoid many threats associated with operating on your own.

What is team building really about? What is the most important thing when conducting this type of activity?

RG: The main assumption of all team-building activities is building relationships in a team which will affect better decision making and improve implementation of the most complex projects. In order to be successful on these levels, it is necessary to build a team motivated by one common goal. Colleagues should trust one
another, be open to discussion and criticism and act based on clear principles, e.g. when making decisions.

One cannot forget about sharing common values, what is missing in many business teams. As it can be concluded from studies conducted by Google, the appropriate attitude and management through values is one of the most important managerial competences. Personal values constitute one of the strongest motivators or they demotivate the team. If employees cannot implement their values at work, they become less engaged, which will consequently lead to them leaving work. Hence, it is worth uncovering them through conversations and seeking common ground. Today it is important to create conditions to implement employees’ values or build a team which will identify with the principles applied at a given company. If there is a discrepancy between the values professed, it may turn out that further cooperation will not bring the desired results.

What mistakes are most often made by young entrepreneurs when choosing colleagues? How to avoid them?

RG: Entrepreneurs who are at the beginning of their path, especially in small businesses, often choose people who are too similar to each other. It is easier to find an agreement thanks to this; however such a relationship can make everybody look at a problem from the same perspective, which will make it difficult to solve it. On the other hand, selection of colleagues in terms of knowledge and competencies only, without taking into account their adjustment to a given role or motivation to work, will not bring good results, either. Another frequently made mistake is cooperation with family and friends from whom – regardless of their competencies and adjustment to roles in the team – it is more difficult to enforce some actions due to private intimacy or liking.

In order to avoid mistakes in team building, it is worth using external recruitment consulting, which will help select people needed in a given business. It is necessary to pay attention to common values – whether they are consistent among candidates and employees.
It is also useful to use tools available on the market to diagnose natural talents and predispositions of potential employees and compare them with the expectations on a given position.

When an entrepreneur can state or predict that they have selected the right colleagues to implement a project? Is it possible to draw such a conclusion?

RG: One of the more obvious conditions that a team works well is achievement of the assumed purposes which translates into business results. Effective implementation of tasks would not be fully possible if the atmosphere between employees was inadequate, which is why this is another important matter to be considered by the leader. If employees are satisfied with their work and they willingly come to the office every day, this means that the situation is good.

Currently, team managers can also use tools, such as e.g. Analiza Extended DISC, which help among others predict the behaviour of team members in tense situations. They also allow for better assignment of employees to specific tasks or for better problem solving between people with extreme approaches.

Once we have a well-chosen team of colleagues, what are the next steps in the team-building strategy?

RG: Building a team is a process which needs time and space. It is necessary to allow employees to better know one another, hence it is worth planning time for common meals or loose conversations. Thanks to that, they will be more open and they will build mutual trust. If people being members of a team trust one another, it is easier for them to undertake more difficult tasks or challenges. On the other hand, for a leader of such a team, it is easier to specify principles of work, such as e.g. clarifying team goals, defining roles and responsibilities or ways to make decisions. In creative environments that operate on the basis of innovation, it is very important to monitor the level of stress, as well as to maintain it on an equal level or lower it so that employees can perform their activities in a comfortable atmosphere.

It is worth remembering that in each team after some time the so-called “storm” appears, i.e. a crisis which is a natural element in the process. Proper crisis management will allow the team to move to the normalization phase, and later it will be conducive to increasing efficiency. What does this mean? Being open to discussions, establishing principles to solve disputes, mutual feedback. It is worth remembering that it is ideas and cases that should be subject to criticism – and not individuals. It is good to clarify all personal misunderstandings quickly. Poor management may cause that some teams go in circles, efficiency is reduced and constant rotation of employees takes place.

What are the main principles of teamwork which work well for the implementation of activities carried out by technology startups? What to avoid?

RG: Teams in technology startups are subject to the same laws as any other team. An additional difficulty for this type of ventures can be frequent remote work, a multitude of communication tools or the introvert nature of some employees, which is often observed in the IT environment. While, the largest mistake appearing in team management is disregarding the so-called “soft aspects”, such as team work. In order to avoid them, it is worth having a well thought-out strategy in this field. It may be helpful to develop the so-called team canvas, i.e. tools allowing not only roles and purposes to be determined in a given team, but also strengths and weaknesses, needs or applicable principles. Entrepreneurs may also use assistance of external specialists who will help them structure all the necessary aspects so that the team works efficiently, and work brings satisfaction to everyone.

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What form of business is best taken from the perspective of a technology startup?

Michał Bogacz, Olesiński & Wspólnicy: In my opinion, there is no universal recipe for the best business frame. It all depends on the startup and its founders. Civil partnerships can be a temporary form, at the stage when the nucleus of a business idea appears in the minds of the future entrepreneurs. This is the simplest form of cooperation between partners, which has no legal personality in itself. When the idea develops and starts taking on a structure, it becomes unique and it would be good to protect it, then it is worth changing the frame of business activity into a capital company, especially a limited company. It is easy to set up, and the liability of partners in the business is basically limited only to the amount of assets that they bring to the share capital. In addition, such a company is better perceived by financing entities, such as banks or potential investors. You can also choose partnerships, e.g. registered or limited partnerships are the most popular. They are simpler, slightly cheaper in principle, but they do not protect partners against property liability. If a company has to pay a liability, the creditor may reach for your personal property, for example your car or home. For this reason, in my opinion, the limited company is a good solution for startups.

When at the beginning of the road, it’s good to remember that we will be able to change the business structure, depending on how our business will change. It is also worth mentioning here that when choosing the optimal legal form for a given business, tailored for a specific idea, it is good to consult a lawyer. This can save a lot of problems in the future.

What is a “simple joint-stock company” and is it worth having a closer look at it?

MB: A simple joint-stock company is a proposal of new regulations in the law submitted by the Ministry, which has reached public consultations. For this reason, it is difficult to predict and determine in what form and if the project will be adopted at all. However, it is certainly worth taking a closer look at it, because at this stage, the bill contains provisions that meet the freedom of conducting business, introducing a new form of the company. In principle, the proposal includes a number of simplifications for solutions such as startups, in the form of even a more accessible form of establishing a company or bringing know-how and ideas to it. We have to keep our fingers crossed that the draft will come into force.

As a technology startup, what do we need to know exactly about the applicable law? Which of them are important at the beginning of a business?

MB: That’s a good question. Our country is not known for simplicity in regulations; there are so many of them alone. In my opinion, from the perspective of startups, there are three main areas of law that beginners should be familiar with. If the startup has already been formally established, it is worth knowing the basic provisions related to the conclusion of contracts and contractual liability. This knowledge will be useful when concluding the first contracts with clients. The second area in which it’s good to have insight are accounting and tax issues. Here I’m talking about the forms of employment or paying specific taxes, which is influenced by the frame of the business. The area of ​​intellectual property is also very important for startups, after all, their business is based largely on know-how. It is worth knowing how we can protect unique solutions before someone misuses them without our knowledge.

Should a founders’ agreement be signed? What should it contain? What are the additional contracts that should be concluded when starting out with your business?

MB: It all depends on the chosen business frame. A founders’ agreement (also known as an investment agreement) is a form of agreement between partners, which determines how they will work, how they will settle accounts, how they perceive business development, do they plan to admit an investor or later sell the company’s value. Through such agreements, the partners can determine the scope of activities in the future in accordance with the adopted involvement in the business. As for the main areas that such an agreement should define, it is primarily the line of development of the undertaking and determining the activity of individual partners in the business, as well as various types of guarantees and safeguards, e.g. in the form of the right to repurchase shares sold by one of the partners or a competition ban. The agreement should also include issues of capital injection in the company, obligations to make deposits or contributions in selected circumstances.

Through such an agreement, the shareholders may determine the scope of the activity in accordance with the adopted involvement in the business.  Therefore, as the development of a startup becomes more advanced, it is better to have such an agreement in place and act on the basis of it, but this is not a must have. Some of these provisions may be included in a well-prepared company agreement, but you should remember that the document is public in the National Court Register, as opposed to the founders’ agreement.

Another area is the form of contracts with clients or contractors and assumptions on relationships with them. This is especially useful when a startup starts selling its products. As the last element, I would say issues related to the employment of employees – what form it adopts, which is important in the context of intellectual property protection.

What issues from the perspective of patent or protective law are important for new technology companies? When should we consider them?

MB: As I mentioned earlier, the issue of employing workers is important, because often innovative solutions are the fruit of the work of many people who can be employed on various contracts. It is important that this know-how and the output of intellectual property produced by employees or subcontractors be owned by the startup. It’s about a guarantee of property rights (specifically, the transfer of intellectual property rights regarding these ideas to the startup), which can be provided by clear contractual solutions. This will allow you to avoid situations when a colleague files a claim. The presumption of the employer’s right to the products of employees (in the case of employment based on a contract of employment) are provided for by law. In the case of B2B contracts or orders, such solutions need to be included in the contract.

What legal mistakes do startups most often make? What do they result from and how can you protect yourself from them?

MB: I would put it this way – in the case of startups, in order to achieve success, you need balance between a good business idea that is feasible and marketable and formal and legal issues. Young entrepreneurs should solve matters on the business structure, paying taxes, relations with partners and clients or subcontractors as early as possible.  In addition to this, you should take into account internal relations with employees. To avoid mistakes, it is also worth reading carefully and making sure that we understand all the provisions of the contracts, especially those concluded with large entities. Non-performance of the contract may be secured, for example, by a high contractual penalty.

NDA – a necessary safeguard or unnecessary formality hindering and extending the start of your own business? Is it necessary to sign this agreement in every situation?

MB: Non-disclosure agreements are a good solution for the protection of intellectual property rights. It should be included in the initial stages of cooperation, when the startup invites subcontractors or contractors to it, showing them the behind-the-scenes on how the chosen technology works. There is then a risk that one of these entities will use this knowledge without an agreement with the startup. The NDA protects it. It should be accurately defined what is company secret, define under what conditions confidential information can be used and what will happen when the other party violates these terms. Here, it is a good idea to stipulate contractual penalties in the case of using the original knowledge of a given startup. In my opinion, it is worth signing such agreements in the form of a safeguard for a business idea.

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Networking is a trendy business word. What is it exactly? Should every aspiring entrepreneur use this tool?

Andrzej Twarowski: At the outset, it is worth noting that each of us is building our network, whether we are aware of it or not. Networking to me is an element of social capital, meeting new people, creating a network of mutual connections between them. Such acquaintances are useful in situations when we need help or vice versa – when we can render assistance to others. The second option, in particular, gives you great satisfaction. On the one hand, networking is not just about creating and extending the base of contacts or influences, but above all about nurturing them. Professional networking is obvious to people in positions, in which it is essential to meet new people – be it sellers, consultants, business developers or business executives. In my opinion, it should also be cultivated by people who do not have to meet new people on a daily basis, such as financial adviser, purchasing managers, and IT employees. It turns out that there comes a time in your career that you may be seriously in need of assistance (e.g. to set up your own company, verify a potential supplier or search for a job), and the building of such a network is a multi-annual process.

For start-ups, the greatest value from networking is the exchange of experiences. During business events, they can meet entrepreneurs at various stages of business development and acquire knowledge, e.g. on how to hold talks with capital funds or develop a product and build marketing communication. Thanks to this, you can learn a lot and avoid certain problems, as well as not force the same door open. For young entrepreneurs a well-developed network can provide certainty in business, showing them that they can count on someone and have friendly people around them.

How can networking help in business development? What demonstrates its effectiveness?

AT: People often associate networking with overly aggressive sales in the form of distributing business cards to the left and right. Unfortunately, many people do so, and some even add to that flyers and advertising brochures. In my opinion, it is a networking anti-ad, which often has nothing in common with sales. Evidently, it doesn’t mean that you cannot acquire potential customers this way; however, it is a long way until someone becomes a customer. How does one make the process effective? Above all, you should meet new people, without this successful networking is not possible. The easiest way for entrepreneurs to establish contacts is at business events, but not everyone participates in them, claiming it is a waste of time. It may be because not many people can effectively network. Meanwhile, the most important thing is to regularly participate in conferences and events, the choice of which should be informed – depending on what we are looking for and why we want to take advantage of such situations. The reasons may vary: some are looking for customers, others employees, business partners, and yet others inspiration to act. It is worthwhile to appear in various places, meet various people from different circles, and most importantly assess your networking activities, e.g. in the form of verifying interesting persons you met within a specified time. The lack of a well-developed networking chain may be a barrier for entrepreneurs in overcoming certain difficulties they may encounter when running a business.

Furthermore, is every occasion suitable for action? Are there situations in which one should refrain from networking?

AT: I would say otherwise, above all we should avoid intrusiveness and choose events in which our participation will be useful – e.g. in terms of acquiring valuable contacts or knowledge. It is worth taking into consideration. When we find ourselves in a networking situation, the first and overriding principle is conversation. People often think that when they approach someone and initiate a conversation, it will be perceived as intrusive. Whereas, it is worth approaching a group of people when their attitude encourages conversation, or someone standing alone. After this first step, many people often make the mistake of starting to talk about themselves. Whereas, asking simple questions will make our interlocutor feel more comfortable and more willing to engage in a dialogue. Almost everyone prefers to talk about themselves; you should bear that in mind. If someone doesn’t feel comfortable in a networking situation, it is worth taking a moment to speak to them to relieve stress and discomfort or invite them to coffee or introduce them to previously acquainted persons. We also know that not everyone will be interested in a conversation – in such a situation, it is best to give up and look for someone else. Everything should be done with great care and sensitivity.

Are there any tasks we should be performed before participating in a chosen event? How should one prepare for networking?

AT: Contrary to what is believed, preparation for the event is not difficult and does not take much time. Firstly, you need to read the description of the event, agenda and speakers to plan your participation in the speeches of interest to you. At this point, it is also worth searching the Internet for information on persons that will participate in the event, as well as consider potential conversation scenario. Do not forget about business cards, which should be exchanged at the end of the conservation. They are the basis for maintaining further contact, which is very important. It is worth conducting a follow-up after every meeting, e.g. to express thanks for the conversation and to leave your contacts details with one another. A common practice is also to send invitations to join our group of friends on social media, which greatly facilitate networking. You can also include the interlocutor to the newsletter list, recommend an interesting material, article, inspiration, or invite them to other events or to coffee. Lack of follow-up performed relatively quickly will make even the best efforts come to nothing.

Once you are in the networking situations, besides the courage to take the first step and initiate conversation, what should you do, how should you behave? What practical guidance can one put into practice?

AT: Preparation for the event, lack of fear in approaching strangers and initiating conversation with them are fundamental principles. I would add to the list the habit of arriving early to the event – through which we get used to the situation, and it will be easier for us to undertake networking activities. The rule “ask first, then speak” is also useful – most people like to talk about themselves, so such questions or openings will show real interest and make the interlocutor feel good, which will encourage further dialogue. Before the event, you should prepare a brief and concise presentation of yourself or your company – what it does, what problems it solves, and what distinguishes it from others. Important remark here – It is easier to attract people’s attention with solutions to problems rather than parameters or features of a service/product, so focus on that. When in a networking situation, it is also good to change the interlocutors and go to different groups, so that our experiences are as diverse as possible. There is a good term in English for this: “mingling”.

Networking is a long-term activity, and you should not focus on immediate results. Therefore, it is worth planning your regular presence, especially at cyclical events. You can meet previously acquainted persons, through which the mutual conversation and acquaintance becomes something obvious and natural. It worth focusing on giving rather than taking, a change of thinking in this area brings much better results. Networking works, you just need to know how to conduct it, do not be afraid to meet new people and talk to them.

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