The CEO of Prototron Siim Lepisk talks about different sides and factors of starting a business, introducing the topic trough examples from real life.
Siim Lepisk has graduated MBA and Executive MBA programs in EBS and has spent half of his life on information systems and e-marketing projects. As the CEO of Prototron he is looking for new success stories in Estonia to assist them in the preparation phase of the first prototype to concur the world. Prototron provides startup-s funding, mentors, coaching and comprehensive growth support.
The lecture deals with start-up business steps as:
• Scaling thinking
• Creating a team
• The idea
• Business model & more.
2. We build success stories
In 2012, Swedbank, Tallinn Technical University
and Tallinn Science Park Tehnopol founded
Prototron fund to support building the first
prototypes that could get client feedback to
conquer the World.
We help talented entrepreneurs to get their
product to market, by granting our alumni with
money and 6 months of business development
services in Tehnopol Startup Incubator.
3. We’ve already shown great results
Since 2012, we have:
● Gathered 500+ ideas
● Had 7 rounds of funding
● Given out 180 000+ EUR for 15 teams.
100% success rate of funded start-ups.
Our alumni have generated 700 000+ EUR
revenue and raised 2 000 000+ EUR capital
4. We focus on
Greentech
ICT*
Electronics
Mechatronics
*For ICT projects we support systems with complex algorithms
5. Funding criterion
● Idea’s technological novelty
● Team’s strong competence
● Prototype’s market capability
● International growth ambition
● Thoughtful business concept
Additional points given for detailed prototype description,
building timeline, budget, sketches/drafts.
6. Some success stories
Sea monitoring buoys
(0.5M revenue)
11 640 EUR
2012
World’s smallest
11 242 EUR
portable weather station
2013
9 900 EUR
2013
Language learning
platform
(raised 1M EUR)
3 100 EUR
2012
Smart queue
management system
9 560 EUR
2012
3D printing
protection system
10 534 EUR
2012
Battery pack and
control system
7 000 EUR
2013
Connecting car systems to
your mobile phone
7. We finance 2-3 rounds /year
50-100 ideas collected via www.prototron.ee
pre-evaluation committee selects top 20 ideas
and provides feedback to all teams
Tehnopol coaching for
top 20 teams
Best 9-10 teams
pitching to expert
committee
Expert committee
funds
2-3 teams
8. Proven expert committee behind
successful funding choices
Jaanus Tamm,
Defendec
Yrjö Ojasaar,
EstBAN
Andrus Oks,
SmartCap
Priit Alamäe,
Nortal
Jaak Raie,
Tehnopol
Robert Kitt,
Swedbank
Siemon Smid,
TUT
Margus Uudam,
EstVCA
9. We help to grow funded businesses
Giving out
grants at
Media Event
• Contract with
Prototron and
Tehnopol Startup
Incubator
• Grant payment (full
or partial)
6 months
incubation at
Startup
Incubator
• Business model
validation for target
markets
• 1:1 coaching
• IP, legal and UX
advice
• Startup Academy
• Help for raising
angel/VC capital
• Furnished office
and meeting
spaces
• Events, expert
panels, training,
business missions
• Media
communications
Progress
report to
expert
committee
• New
competences?
• Product
development?
• Client feedback?
• Business model?
• Lessons learned?
• Next steps?
Alumni
incubation in
Tehnopol
• Additional
incubation in
Tehnopol
• Product
development
• Raising capital
• Expansion
• Alumni club events
• Media
communications
10. Key elements of getting funded
1. Team
2. Product
3. Market
4. How to earn money
5. Timing
6. Advantage
7. Proven first steps
11. 1. Team
● At least 2 roles covered: business + tech
● What have achieved so far?
● Have worked together?
● Commitment?
● Passion on the topic?
12. Team: rather good example
ABC – MBA, thesis defended on the subject, currently working
at XXX Ltd as a Business Development Manager.
XYZ – MSc in Business Information Technology, currently
working at RBS as a developer.
Team has worked together full time at RBS since 2010 and on
the product since 2012.
13. Prismattery – battery package and battery
control system to manage range anxiety in
electric vehicles
10 534 EUR
2012
Battery pack and
control system
14. 2. Product description
● Clear value proposal
● Concise
● Can be visualized
● Validated by third party
You can’t always have the right answer: the business
model could quickly change in pivoting process, if the
‘market’ requires other kind of product/service
15. Product description: to be improved
Easy to use, shared and collaborative environment for
project teams for efficiently planning, controlling and
monitoring project work at the field.
● Too vague
● Where’s your value?
16. Product description: good examples
Deekit is developing a multi-platform app
to help managers in growing IT companies
to increase their productivity of meetings
by enhancing the visual communication between
teams and individuals
with a real-time team collaboration whiteboard
• Precise value proposal – what/who/how
Browserbite is an automatic cross browser testing tool
to check your website on 45+ mobile devices and
browsers
18. 3. Market description
Who are your clients? Segmentation – only one
segment or many segments?
● Human, corporates, public sector
● Age
● Gender
● Income (higher / lower)
● Where they live (Estonia, Europe, Asia)
● Education level
● ….
19. “The addressable market needs to be
large enough that the company can
grow to tens or hundreds of
millions of dollars and then beyond
after exit”
- DFJ Esprit
20. 7 000 EUR
High Mobility – solving hyperlocal 2013
connectivity for natural context between
people, locations and the automobile
Connecting car systems to
your mobile phone
21. 4. How to earn money?
● Who really needs it?
● What feedback have you got?
● Value proposition?
● What’s improved after your product/service?
● Are you able to generate more revenue to your clients
(preferred) or improve efficiencies?
● Where do you sell?
● Who is the buyer?
● How exactly does the end customer’s money end up
in your bank account?
● How do you sell?
22. 3 093 EUR
2014
Save ladies’ feet
on high heels
23. 5. Timing: actuality of the idea
● Why is your product important today?
● Are customers ready to pay for your product?
● How can you prove that?
● What are the future trends in industry?
26. 6. Strategic advantage
● Why you, not 100 others?
● How is your idea different from the competitors product/
service?
● How do you protect intellectual property?
● How will you scale?
● Is your team exceptionally experienced in that?
27. Flydog – sea monitoring bwoys for
collecting marine data
11 242 EUR
2013
Sea monitoring buoys
(0.5M revenue)
28. 7. Proven first steps
● Show progress
● Validated assumptions
● Anyone willing to pay?
● LOI – Letter of Intent from clients/vendors
29. 11 640 EUR
2012
World’s smallest
portable weather station
Shaka – world’s smallest portable
weather/wind station for smartphones
30. Organic
Filters
8 463 EUR
2014
Environmentally friendly
algae filter
Organic Filters – using algae for cleaner
biogas
31. Become a part of success
apply at www.prototron.ee
Siim Lepisk, siim@prototron.ee