blockchain, ai and fintech solutions will lead to the next real disruption

74 Pages·2017·16.24 MB·English

MAY 2018 | growtechmag.com | Published by
BLOCKCHAIN,
How to Build a
Biotech Unicorn
in the EU
THE FOUNDER STORY
DETAILS INSIDE →
AI AND FINTECH
Will blockchain
create the future
we haven’t even
SOLUTIONS
dreamt of?
TREND WORTH TO BE OBSERVED
DETAILS INSIDE →
WILL LEAD TO How to get
started in angel
investing
LESSONS LEARNED
DETAILS INSIDE →
THE NEXT REAL
Why Privacy
Concerns are Not
Going Away Anytime
Soon
DISRUPTION
REALITY OF DATA SECURITY
DETAILS INSIDE →
What Angels & VCs Do's and dont's for top-notch projects
should consider your task list to follow
TIPS FOR INVESTORS TIPS FOR STARTUPS STARTUP BUSINESS CARDS
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We have not only as great conference as infoShare, such well-known brands as Intel, Amazon, Lufthansa
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it the whole Europe! Why? power in our region – we have nearly 16 000 of them
in Tri-City!
Companies from all over the world discovered how
good it is to work in Pomerania. Thanks to that our But work is not the only thing which made our
citizens don’t have problems with finding a job, as the region so unique! 76% of citizens are happy to live
unemployment rate is around 2,5% in the main cities in Pomerania. How could it be different? Just try
like Gdansk, Sopot and Gdynia. And nearly 60% of to imagine 316 kilometeres of seashore, 2 901 lakes
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EDITOR’S
how to build a biotech unicorn in the EU,
Kaidi Ruusalepp presents her perspective
FOREWORD
on how to maintain a work-life balance as
both a founder and a mother, and Susanne
Birgersdotter knows what its like to walk
both in startup and investor shoes.
Opinions and analysis
the third edition of Grow with
Tech has been prepared as
In our pages you will find summaries of
a collection of tips for startups current thinking and the analyses and
opinions of experts in the field. Fintech
and for investors
remains a front-runner, so we offer a strong
suggestion that fintechs and banks need
to focus on collaboration towards a great-
A hunger for business, technology, and the our contributors offer clear suggestions on er goal. Medtech is also taking part in the
support of a keen community – these are how to use data, already king for some time, game with a clear suggestion – no fever,
the three musketeers leading innovation and discuss AI, the bold new entrant on the simply a boom. The next confirmed big
Somewhere in the north of Poland there is Pomerania - a land full of
processes in every industry, no matter startup scene, in the creation of products topic is blockchain, so our experts look for
natural beauty and filled with work opportunities. Don’t just believe whether that industry is new and emerg- people want. Last but not least, there is answers to whether blockchain will create
ing, or traditional, with years of market a piece which suggests keeping focus as a future we haven’t even dreamt of and
us, listen to our story…
experience. Even if we pretend not to be a first principle, and warns against being what the next generation of blockchain
the part of this race, the (sad?) truth is we lost in trust. could be. Additionally, the future of block-
all in the running. Always scrolling, always chain and the future of its usage in funding
We have not only as great conference as infoShare, such well-known brands as Intel, Amazon, Lufthansa watching, always online. Tips for investors has become an issue. Ben Marrel suggests
but we are also one of the fastest developing region or Wirtualna Polska. Nowadays developers are a huge To help make life a little bit easier for all that our next frontier in disruption will
of us, the third edition of Grow with Tech It may seem that investors are more ex- be pioneered by blockchain, (plus AI and
it the whole Europe! Why? power in our region – we have nearly 16 000 of them
has been prepared as a collection of tips for perienced and more comfortable in their AR/VR). AI is also much appreciated as the
in Tri-City!
startups and for investors, with analysis decisions, but they also need to constantly future of Human-Machine Collaboration.
Companies from all over the world discovered how and opinion prepared by top-notch experts, learn. This issue provides tips on how to get To present a different angle, with the re-
good it is to work in Pomerania. Thanks to that our But work is not the only thing which made our and a few founders’ stories worth checking started in angel investing, and shares the cent Cambridge Analytica scandal fresh
out and learning from. experience of a decade of learning from in our minds, Jeremy Goldman focuses on
citizens don’t have problems with finding a job, as the region so unique! 76% of citizens are happy to live
Peter Cowley, a UK serial entrepreneur and the question of why privacy concerns are
unemployment rate is around 2,5% in the main cities in Pomerania. How could it be different? Just try Tips for startups angel investor. To give a broader picture, we not going away anytime soon. To close, we
like Gdansk, Sopot and Gdynia. And nearly 60% of to imagine 316 kilometeres of seashore, 2 901 lakes present a cross-border view on angel invest- have Petri Kajander, with a piece exploring
It is always good to know sooner rather than ment in the CEE, an emerging region when “a mission-driven approach to your venture
modern services centers here are companies where and 3 000 kilometers of canoe trails. It’s difficult,
later, so our new issue provides both start- it comes both to investors and the startup ensures a steady course during hardship,
IT processes dominate and among them you will find isn’t it?
ups and wannabe-startups tips on how to side of the market. Last but not least, the peer pressure or weak moments”.
play wisely and effectively, to increase the experienced investor Thomas Thurston The race is on-going. Being innovative,
chance of success. There are articles cover- sheds some light on venture capital’s ac- and more and more often disruptive, is the
Pomerania – come and live more! ing reputation and crisis communication; curacy problem. trend. And so, from each and every busi-
important issues in starting doing business ness’s perspective, looking for tech startups
and first impression can be done only once. Founders’ stories is a must, in a process that is supported by
Included in our pages there is some hard the tech community at every phase. Will
POWERED BY DISCOVER MORE OPPORTUNITIES WHICH knowledge for all young entrepreneurs on To prove that it is worth persisting on the this race end any time soon? Seems not.
COME WITH OUR REGION: efficient ways to look for investors and on startup path, here are collected 3 stories by So, whether spectator or participant, let
planning a successful exit. What is more, founders. Ingmar Hoerr shares his view on the games begin!
 www.livemorepomerania.com
 /LiveMorePomerania
Agnieszka Meller
 /livemore.pomerania
editor-in-chief
 /company/live-more-pomerania
Grow with Tech — MAY 2018
SPIS TREŚCI
i n t h i s i s s u e
MAY 2018
05 tips for investors Reputation and Crisis EDITOR-IN-CHIEF
Agnieszka Meller
Communication: 5 Tips to Be Ready
A Cross-Border View on Angel [email protected]
Hélène Joubert, Ballou PR
Investment in the CEE Region
CONTRIBUTORS
Jacopo Losso, EBAN 20 tips for startups Colette Ballou (Ballou Capital)
Alex Blakeway (Venezia Capital)
It Takes Data and AI to Create Daniel Collado-Ruiz (Nestholma)
06 tips for investors Peter Cowley (Entrepreneur and
Products People Want Business Angel)
How to Get Started in Angel Investing Tanya Dadasheva (Almaz Capital)
Antti Merilehto, Finch Finland Marcus Erken (Sunfish Partners)
Colette Ballou, Ballou Capital
Wojciech Fedorowicz (TDJ Pitango)
Jeremy Goldman (Firebrand Group)
22 tips for startups Arkadiusz Hajduk (Transparent Data)
08 tips for investors
Ingmar Hoerr (CureVac)
Venture Capital: The Rocket Fuel Hélène Joubert (Ballou PR)
A Decade of Learning from a UK Serial
Petri Kajander (Creandum)
of the Startup World
Wilhelm Klat (Swarms)
Entrepreneur and Angel Investor
Thomas Kosonen (InVenture)
Marcus Erken, Sunfish Partners
Peter Cowley, Entrepreneur and Business Judie Lembke (Writer)
Jacopo Losso (EBAN)
Angel
24 tips for startups Ben Marrel (Breega Capital)
Antti Merilehto (Finch Finland)
Magdalena Nowaczyk
10 tips for investors How to Plan for a Successful Exit
(Transparent Data)
Alex Blakeway, Venezia Capital Magdalena Olczak (Data Ventures)
Venture Capital’s Accuracy Problem
Grzegorz Pawlicki
(PKO Bank Polski S.A.)
Thomas Thurston, WR Hambrecht Ventures
26 tips for startups Tomasz Pawul (infoShare)
Marlene Ronstedt (Neufund)
12 Founders' stories Investors in Startups – Theory Kaidi Ruusalepp (Funderbeam)
Thomas Thurston
How to Build a Biotech and Practice (WR Hambrecht Ventures)
David Zohrob (Outrank)
Unicorn in the EU Magdalena Olczak, Data Ventures

Ingmar Hoerr, CureVac PUBLISHER
28 tips for startups Fundacja infoShare
Olivia CONNECT
14 Founders' stories Risky Business: How to Grow Olivia Six
al. Grunwaldzka 472D
Working Both Sides of the Street Your Startup by Thinking 80-309 Gdańsk
Poland
Judie Lembke, Writer Like a Venture Capitalist

Dave Zohrob, Outrank MAGAZINE LAYOUT
16 Founders' stories ENGRAM | www.studioengram.pl
FounderMom in FinTech 30 tips for startups
CONTACT
Kaidi Ruusalepp, Funderbeam [email protected]
tel: [phone]
19 tips for startups
SPIS TREŚCI
i n t h i s i s s u e
MAY 2018
Keeping Focus The Future of Blockchain,
Thomas Kosonen, InVenture the Future of Funding
Marlene Ronstedt, Neufund
32 tips for startups
Lost in Trust 44 opinions & analysis
Magdalena Nowaczyk & Arkadiusz Hajduk, Our Next Frontier in Disruption
Transparent Data
will be Pioneered by Blockchain,
AI and AR/VR
34 tips for startups
Ben Marrel, Breega Capital
Let's Fintech with PKO Bank Polski
Grzegorz Pawlicki, PKO Bank Polski S.A. 46 opinions & analysis
The Future of Human-Machine
37 opinions & analysis
Collaboration in the Rising AI Era
The Obvious
Wilhelm Klat, Swarms
Petri Kajander, Creandum
48 opinions & analysis
38 opinions & analysis
Medtech, no fever, simply a boom
Better Together: Why Fintechs
Wojciech Fedorowicz, TDJ Pitango
and Banks Need to Focus on
Collaboration 50 opinions & analysis
Daniel Collado-Ruiz, Nestholma
Why Privacy Concerns
are Not Going Away Anytime Soon
40 opinions & analysis
Jeremy Goldman, Firebrand Group
Will Blockchain Create the Future
We Haven’t Even Dreamt Of? 52 STARTUP BUSINESS CARDS
Tomasz Pawul, infoShare
Startup Business Cards 2018
41 opinions & analysis
The Next Generation of Blockchain?
Tanya Dadasheva, Almaz Capital
42 opinions & analysis
Grow with Tech — MAY 2018
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TIPS for INVESTORS
TIPS for INVESTORS
A Cross-Border View
entrepreneurs-turned-angels, they are the
on Angel Investment backbone of the CEE angel community.
Naturally, what draws investors to any
given location is good deal flow. Which
in the cee Region is why it’s important to leave behind the
notion of looking at each Central European
country separately and embrace the CEE
region as one unified marketplace. As the
countries in the CEE region are small on
Jacopo Losso, EBAN
their own, pooling their resources is the
As Director of Secretariat at the European Trade Association for only smart way to go about building up
Business Angels, Seed Funds and Early Stage Market Players the early stage ecosystem. Additionally,
(EBAN), Jacopo tracks issues of strategic importance to the
the deal flow coming out of the region be-
early-stage investment ecosystem, being the first contact point
for its members. comes markedly more significant when
looking at it as a whole.
In a milestone of regional cooperation
While Europe is lagging behind the US in eign angel investors is also to be noted as between CEE Business Angels Networks,
terms of producing unicorns, there are a catalyst for local angel activity. The EBAN last year saw a €420,000 endowment and
a number of great successes that have come CEE Community, an initiative created by expertise deal made with a Slovenian da-
out of Central Eastern Europe’s startup the European Trade Association for Busi- tamining company by investors from six
ecosystem. One way to make sure entre- ness Angels, Seed Funds and Early Stage CEE countries.
preneurship develops further in the CEE Market Players (EBAN), aimed at sharing When asked about the deal, Antal Kar-
region is to help grow its fledgling angel best practices and promoting co-invest- olyi made the following comment: “This
investment community. ment amongst the CEE Business Angel deal has a significance far beyond the
According to Antal Karolyi, President of networks, works to foster just such efforts. transaction itself. The commitment and
the Hungarian Business Angel Network Antal posits that the continued support of dynamism of the team convinced me. With
and Vice President of the EBAN CEE Com- foreign investors, who bring not just their the additional benefit of business angels
munity, an important source of new busi- money, but also their extensive experience, from six countries, the startup now has
ness angels are entrepreneurs turning to is central to the development of an early a truly international support network.
angel investing after successful exits. The stage ecosystem in the region. Together We have executed a complex, cross-bor-
interest in the CEE startup scene from for- with successful local entrepreneurs and der deal with the participation of six local
private investors. This reassures our vision
that we can create a well-organized and
transaction-oriented network.” Antal also
underlined the importance of co-invest-
ment: “Countries in our region face the
challenge of venture capital markets that
are too small to compete individually. With
a strongly connected regional market, we
can punch above our weight”.
The cross-border deal was a hugely im-
portant step towards creating an active in-
vestment vehicle in the CEE region. With
more cooperation like this, it becomes
more likely that the early stage ecosystem
in Central Eastern Europe will reach its
full potential and produce more and more
Attendees of the EBAN CEE Community Demo Day
organized by Business Angels of Slovenia on 9 May, 2017 in Maribor, Slovenia scaleups and unicorns.
Grow with Tech — MAY 2018 55
TIPS for INVESTORS
How to Get Started
in Angel Investing
People often tell me that they don’t know how to It’s important to set guidelines that work for you.
get started in angel investing, and ask my advice I always make sure I invest in companies that have
on how to do so. The reasons are usually the same: a straightforward business model that makes sense
they don’t have the confidence, don’t know where to me, companies to which I bring more than just
to begin, or they feel that they don’t know how to money and PR experience, and finally, if possible,
spot a good opportunity. I like to invest in BIG picture ideas – to make a change
Everyone has a different strategy for investing, for good in the world. Not every business can do this,
but the following guidelines have served me well. but some have the potential to do so, and that makes
Colette Ballou,
investing really exciting.
Ballou Capital
Tip one: mentoring = practising How did I arrive at these guidelines? I built Ballou
Colette is an entrepreneur, PR on cash alone as a sole shareholder, expanded it
angel investor and limited As a mentor for startups for more than ten years, to three markets that were foreign to me, and along
partner.
I learned how to quickly assess and formulate the way, created an award-winning culture. I took
a SWOT analysis based on a few meetings. The what worked for me, and what I learned along the
same processes apply when deciding to invest in way, and therefore, I like to invest in companies
a company, although you have more time to reach where I can use this same skill set and give them
a final conclusion about whether or not to invest. the benefit of my experience. My PR background
In the past when I’ve judged startup competitions, is also valuable in advising whether the company
I have seen companies that I would have killed to or product offering is media-genic and if it will get
invest in if I had the capital at the time: Transfer- coverage that will drive adoption. In addition, I also
Wise, Criteo and GoEuro, to name a few. So even reach out to my contacts to see the likelihood of
though I didn’t have the capital, I knew my instincts follow-on funding as I know what metrics the com-
were good. pany needs to hit before being introduced to the
various stakeholders. This helps the startups have
Tip two: set guidelines their pick of VCs to lead the series A, B and onwards.
Ultimately it depends on you and your back-
My first four angel investments in startups include ground. Maybe you only want to invest in compa-
French television startup Molotov.tv, Latvian SaaS nies that are in your area of expertise. Maybe you
automation platform Attitude AI, touchscreen want to invest in companies that are based near
software and publishing startup Orson & Co and you, or have women or minority founders. But set
UK education software platform Black Country those guidelines because you will be overwhelmed
Atelier. How did I select these? I ran them past my with requests and you have to have a filter to stop
guidelines for investing. you from going insane!
6 TIPS for INVESTORS
I bring more than just money and
PR experience, and finally, if possible,
I like to invest in BIG picture ideas – to
make a change for good in the world. Not
every business can do this, but some have
the potential to do so, and that makes
investing really exciting.
the team at Attitude AI are great at sending weekly
emails with accomplishments and challenges, with
specific asks to angels for help. They have effec-
tively harnessed the skills and network of their
Tip three: set a budget per year angels in order to solve problems, which helps to
move things along quickly. They have board rep-
Set a budget at the beginning of the year. It’s very resentation so we have quarterly board meetings
easy to just keep investing or, worse yet (for the that cover everything — this includes: financials,
entrepreneur), to promise them an investment and sales, sales pipeline, technology, IP, personnel, op-
not be able to follow through — remember, it’s their erations, risks and goals.
dream you are playing with.
Finally, what are the biggest mistakes I've made as
Tip four: collect the paperwork an investor, and what did I learn from them?
It sounds obvious but you’d be surprised by how Don’t rush in. Most people who like working with
many angels don’t do this. And imagine not being startups have the same problem: they fall in love
able to prove that you invested and have shares with an idea or the team before thoroughly vetting
in a company, when it exits for an extraordinary it. Being an optimist is a fine quality, but one must
multiple? temper it with discipline. I spend a great deal of
time consulting with other angel investors and
What makes a good investor? VCs about deals I’m considering, as they are often
able to identify stumbling blocks that I don’t spot.
A good investor has a lot more to offer besides mon- For example, on a recent deal that I declined,
ey. You need to know how to operate a business, and I spoke to a VC and an angel investor who had seen
have relevant skills and experience in the industry the same deck. The reasons they cited for not in-
of the company in question. vesting at this stage would have taken me weeks
In addition – and this is crucial – you need to to identify for myself.
know when to stop talking. I have been in several In short, my advice is to practice by being a men-
board meetings where other board members drone tor, stick to your investment guidelines, set a budget
on, more keen to grandstand than to focus on the and collect the paperwork. And enjoy yourself – an-
business at hand. Investors with super-sized egos gel investing is a great learning experience.
are detrimental to the business.
Try to help the business organise. For example,
Grow with Tech — MAY 2018 7
TIPS for INVESTORS
A Decade of Learning from
a UK Serial Entrepreneur
and Angel Investor
Inspiring interview with WBAF Best Angel investor of
the World Peter Cowley
infoShare: Why/How did you become an investor? the entrepreneurs.
Peter Cowley: I stumbled into angel investing iS: What are the challenges you faced when you
about 11 years ago. I backed an entrepreneur, become an investor?
Martin Kleppmann, with his technology start-
up, and it exited within 3 years. During this time, PC: Taking the plunge with that first investment,
I learnt the meaning of the word “angel” in the when I didn’t know what I didn’t know, and contin-
context of early stage investing, learnt how much uing taking new plunges until I had a portfolio of
Peter Cowley, I enjoyed helping young entrepreneurs and learnt over 10 investments. There is strong evidence that,
Entrepreneur and how much I had to learn. Exited entrepreneur and unless you have a portfolio of 15 to 25 investments,
Business Angel founder of the Cambridge Angels, Robert Sansom luck plays too bit a part in ensuring that you make
sponsored me into the Cambridge Angels, from a positive return. I had to learn to avoid investing
Entrepreneur and BA who
founded and ran 10+ which I learnt almost everything I now know. in every bright, passionate entrepreneur that I met.
businesses in technology I adore grasping new opportunities and my acci- And I needed to learn fast for more experienced and
and property over the last
dental induction into angel investing has led to this sophisticated angels.
35+ years. He has built up
a portfolio of 60+ angel phase of my varied life being the most rewarding.
investments with 3 good exits iS: What are the great stories of ‘rewards or satis-
and several failures. WBAF Best
iS: What do you invest in and at what stage? factions’ that you can share?
Angel Investor of the World.
PC: I am very open with my investments, my suc- PC: I have many “war stories” of failures that I avoid-
cesses and my failures and my investment criteria ed and should have avoided. On the positive side,
are on my website: www.petercowley.org. Most I get great satisfaction from entrepreneurs who
importantly I invest in people (a team of 2 or 3). I have mentored, then approach me months or years
The team must have an idea (and preferably an in- later and say that my advice was life-changing for
itial product) for solving an unmet need in a busi- them and their startups. Of even more satisfaction
ness-to-business market, where they will be able is that my younger son agreed to work with me, to
to develop defensibility – early stage, with high build our Invested Investor publishing project, such
risk and high potential reward, where I can help that within 9 months, I am learning more from him,
8 TIPS for INVESTORS