BudgetBakers came to StartupYard with a unique problem. With a popular and highly rated app on the GooglePlay store, in many ways, they’d already won the “Game of Startups.” But like many startups, the growth hadn’t translated to profitability yet, and the popularity of their app, then called Wallet, hadn’t translated to the number of paying users they’d need to keep growing as a business.

Beautifully designed and expertly constructed, the software immediately caught our attention. The team too, co-founders Jan Muller Martin Jiricka, were eager to take the next steps. Here’s Jan “Honza” Muller talking a bit about the BudgetBakers journey, before and during StartupYard:

Q: Hi Honza, tell us about BudgetBakers. Why did you choose to tackle the problem of personal finance and budgeting?

A: Well, it all started 5 years ago. I just wanted to learn how to develop for Android- at that time it was a really new platform.

Also, I wanted to make an application for my personal use, to track my finances. I called that original application Wallet. Through the years, the application has become more and more popular, and more complex. It’s coming soon to iOS and a web app, and is already on android (the Android app is still called Wallet for now).

As BudgetBakers has grown, I’ve changed as well. Since I founded BudgetBakers,  I’ve started a family myself and become a dad. I’ve come to really understand the need for smart daily money management. When I quit my job late last year to work on BudgetBakers full time, that only reinforced my need for solid money management. That’s quite a motivator to get BudgetBakers right!

As an entrepreneur working for myself, knowing how much I have to spend, and how much I should spend on everything my family needs is really important- for me and for my partner. We need a smart way to make smart decisions as a family.

People are afraid to think about their budgets and the money they spend every day. But we find that once they get going, that sense of control and security is really addictive. It certainly is for me!

When we’re growing our families and our careers, we can come to let money concerns dominate our thinking. But we don’t think rationally or effectively about our money- we just worry about it uselessly and inefficiently. I’ve come to see what we do as a way of saving people from that trap.

So that’s how BudgetBakers grew into what it is today- more than an expense tracker, it’s your personal finance assistant. It thinks about every little penny, so you don’t have to.

Q: What makes BudgetBakers different from competitors like YouNeedABudget or Spendee? Why should people use BudgetBakers?

A: First of all, BudgetBakers is not just a mobile application.

We are constructing a fully integrated platform where people can learn how to get control of their personal finances, and gain peace of mind for today, and the future.

More than that, we want to go further than just helping people to track their individual expenses and manage their budgets.

Managing money is an important family priority as well, and one that people have a hard time with, especially when they’re just starting their careers, and thinking about saving for a house, maybe a car, or that vacation over the summer.

You get your paycheck one day, and the next day it seems like everything disappeared. Where did it go? That can cause a lot of stress.

A lot of families aren’t on the same page when it comes to their finances- they don’t know how much they can reasonable expect to spend every month, much less how much to save for the long term.

So we’re not only perfecting personal finance via a fully integrated web-based, and mobile platform, but we’re also building in tools to encourage couples and families to begin cooperating to manage their money more effectively.

I don’t think you need to have a lot of money to be happy, but I do know that you need to have enough. That’s where BudgetBakers comes in- our platform helps people to understand what enough looks like. Are you sure you can afford that trip to the movies on Saturday? With BudgetBakers, you will be sure.

Q: A big hurdle for BudgetBakers so far has been gaining traction with users. What are the unique challenges you face in getting people to commit to your approach and platform?

A: We have 4.4 star rating on GooglePay, and we get about 1000 new users a day. We use the UserVoice platform to keep in touch with our users, and we’ve also recently hired a new team member to help with community management, blogging, and marketing.

That said, we’ve found from the beginning that our users need a lot of convincing to really start using BudgetBakers to the fullest. It seems like a big commitment, and it seems more complicated than it is. Part of the learning curve for us, especially at StartupYard, was to see how many opportunities we truly had to convince users to stick with the program, and we weren’t converting as many as we could have.

With the help of some awesome mentors and workshops, like Bogo Shopov on GrowthHacking, and Fiodor Tonti on UX/UI, we’ve had our eyes really opened to the opportunities we’ve been missing, and we’ve seen that we have a lot more room to grow and understand our users even more. That’s very exciting.

Right now, we are working on expanding our efforts in content marketing, and community building, to find new ways that BudgetBakers can reach out to its community and offer them tips, advice, and above all encouragement to make the right financial and spending decisions. There are a lot of people out there who need a little encouragement, and we want to be the ones to provide that.

Q: What do you think are the major blockers for most people when it comes to getting their finances under control? How can BudgetBakers fix that?

As I said, I think one of the biggest obstacles we have when it comes to getting people to take control of their finances is fear. People are afraid that once they open up their finances and take a look, they’ll be shocked at what they see. Sometimes they really are!
But we find that as people use BudgetBakers, they get comfortable, and they start to really enjoy the control they have over their spending. The stress in little spending decisions can start to go away, because they have a very good sense of what they should be doing with their money.

Maybe there’s a little extra in the restaurant budget this month. Great! Order a pizza, or take your girlfriend/boyfriend to a nice dinner somewhere. That’s a wonderful feeling, to know you aren’t cheating yourself when you do that. Control of your finances can make you feel virtuous and proud, and it makes you want to do better, and set better goals for yourself in the future, to hang on to that good feeling.

People have to “rewire” a little bit to make this transition, and that isn’t easy. They have to stop being so emotional about their money, and be a little more analytical- stop worrying and start thinking. BudgetBakers helps with that switch, but it can still take a big effort.

Q: Ease of use is also a major concern for any budgeting software. How are you planning to make BudgetBakers more intuitive and less work intensive?

A: We have a lot of plans on how to make our users more comfortable, and make the daily habit of budgeting and expense control simpler and more rewarding.

Today we have a smart watch application which allows users to enter transactions even without taking their phones from their pockets. Also we have automatic bank statement parsing which works with a few Czech banks so far. We are working towards expanding that ability.

In the future, it’s important that we offer our users ways to integrate directly with their banks, making expense tracking practically automatic.

It’s a balance. With BudgetBakers, the value is in the peace of mind that it gives you about your finances- it reminds you to control your spending, and it keeps you honest about what you can afford, and what the best decisions for you really are. You need to engage with your budget on a daily basis, but you don’t want that to be too much work or too much stress.

There are ways that we would like to make things easier, and entering, sorting, and tracking transaction information automatically will play a big part in that.

Q: What’s your near-term strategy for growing BudgetBakers’ user-base, and how do you plan to keep new users as they join the platform?

A: Budgetbakers has already been downloaded over 800,000 times on the GooglePlay store. When we release our iOS version very soon, along with a substantial rebuild of the BudgetBakers platform, we look forward to adding a whole new group of users.

A lot of users is a great thing to brag about.

But as I said before, one of the things we really want to focus on is making budgeting and financial planning a daily routine for as many of our existing users as we can. We can still do a lot better in that area, and as new users discover the platform, they’ll also benefit from this work. If you do anything for 3 months, it can become a habit, and that 3 month metric is something we’ve been focusing on much more. Can we keep people engaged with their budgeting and financial planning for 3 months? If we can do that, the rewards to our users will extend to potentially their whole lives. We can do a lot of good with some very small, simple changes to the way they engage with BudgetBakers.

For example, a big takeaway from the StartupYard workshops, particularly with Fiodor Tonti and Bogo Shopov [ workshops on UX/UI and growthhacking], was that BudgetBakers needs to utilize the data we collect from our users, and make that part of our overall value proposition. People want to feel a part of a community, and be rewarded for meeting their financial and savings goals. Gamifying the platform and rewarding users with insights and advice is a big part of how we will improve our user retention, and help people to be more financially secure and independent.

Q: You’re based in the Czech Republic. What about the region represents a unique opportunity for BudgetBakers? What challenges does location present for the company?

A: BudgetBakers works anywhere- it works with any currency, and in about 25 languages so far. We have users all over the planet. Of course, because we’re based in Central Europe, this is where we are exploring our first corporate partnerships with banks, telecom providers, and others who can help us add more value for our daily users.

We have a large userbase in the Czech Republic, and that’s partly because of good word of mouth. It’s also because this region doesn’t have access to some of the largest competing platforms, like Mint.com, and because the market here is more fragmented, with more localized apps and platforms, tailored to specific markets.

In addition, banking and financial services are also more fragmented, meaning that building larger partnerships is a slower process than in places like the US. However we count that as an opportunity, to be the first to spread in a way that less ambitious projects haven’t managed to do.

There is no market leader in this category yet, particularly in Europe, so there is a lot of room for growth. Banks and telecoms are desperate for ways to add value for their clients, many of whom are choosing lower-cost, more mobile solutions. We are exploring these types of partnerships that add the value that people are looking for from their financial institutions, but are not yet receiving.

A lot of people (including StartupYard mentors) have challenged us on how “new” and “innovative” BudgetBakers is. There are a lot of expense trackers out there, and budgeting software is as old as spreadsheets. But you have to remember, that the mobile and financial technology that really adds value for end-users is still really new. In the context of business and government, legacy methods are fine, but users today want mobility, interconnectivity, and always-on functionalities. They want their software to work with them, not just for them. So it’s not a new idea, but it is a new way of looking at budgeting for many people.

Q: Tell me about your experience so far at StartupYard. How has BudgetBakers grown during your time here? How have your plans changed?

A:  By entering SY we had to slow down development of the new version of BudgetBakers and start focusing more on management, finances and defining the strategy that will bring us to next level.

At the beginning it was very unusual for me, because i was used to spending my whole day programming. I had to turn towards management, and that was a challenge for me. But now I have to say, it helped me to crystallize my vision in term of growth and success.

I’ve come to realize that our priority has to be our customer experience and our market strategy, instead of just building an ever richer feature set. There’s no use in creating the world’s most amazing software, if nobody is ready to use that software to make a positive impact in their lives. So we’ve had to adjust our attitude towards development, and grow up as a company and a team. That’s been an amazing experience for us, and we’re really glad we decided to do it.

Learn More at www.budgetbakers.com

Follow BudgetBakers On Twitter @BudgetBakers 

The StartupYard teams have spend 2 months at the accelerator so far, and it’s past time for a look at how they’re all doing. An accelerator round goes by in a big blur. You can hardly believe, when it’s almost over, that you’re talking to the same people who started the journey together just a few months ago. It’s an emotional experience, as well as an intellectual one, and I’m going to talk about that emotional journey.

Frustration

A big and necessary part of the accelerator experience is frustration. Frustration with oneself, with a lack of time, with the difficulty of certain questions, and with the fluidity and uncertainty surrounding so many important decisions. Everything is in a rush, but at the same time, everything depends on someone else’s input, or someone else’s time, be it a team member, a StartupYard team member, a mentor or advisor, or even an investor.

Between daily meetings with up to 5 mentors, meetings with test users, pilot customers, early investors, and the StartupYard team, there isn’t a lot of time to do what the startup teams are used to doing with their days- working on their products and making them better. The life of a startup is highly dependent on influencing other people to make fast decisions, so we all get a little harried from time to time.

I caught myself recently asking the startups to fill in their company information for the Demo Day program (we hope to see you there May 28th!), and writing “get this done ASAP.” One of the startups pluckily responded via the #events Slack Channel. “Everything is ASAP!” He was right, and in truth, I could have waited more than a week to get their feedback. But in the constant push to cut through and grab their attention, I had accustomed myself to demanding that they do everything I ask of them immediately, lest they forget to ever do it at all.

But a certain level of frustration is necessary because at StartupYard, the goal is to interrupt and challenge a startup’s established patterns, and force the teams to face issues they might, left alone, choose to ignore, with possibly fatal results.

We ask big questions, in our mentorship sessions and workshops, and we ask them of teams that don’t always have enough data to answer them. That’s to the good. Because every time a startup founder doesn’t know the answer to a question, they’re reminded, or they can discover, that they have more to learn and more room to improve.

Still, the experience is one of constantly feeling behind: by the time the founders answer our demands for business plans, user projections, financial projections, and marketing plans, we’re on to new and more complex demands.

There’s no slowing down to celebrate small victories- and nothing is ever really finished. That’s a recipe for a certain level of frustration, and the only way to overcome it, eventually, is to do more than they’ve ever done before, in less time than they thought they could.

Ego

 I think it takes a certain kind of person to quit their job, spend their savings, and build something no one has ever built before, with the certain knowledge that it’s brilliant and unique enough to a) get someone else to pay for it via an investment and b) eventually get people to buy that thing, and get potentially dozens or even hundreds of people to devote their working lives to building and maintaining it.

We say that startups have their own unique cultures- well it takes a certain kind of ego to think that they’d be happier and better off starting something like that from scratch. So I have immense respect for the people I work with on a daily basis.

These people couldn’t do what they do if they didn’t have powerful egos. At the same time though, the accelerator process is a repeated assault upon ego, pride, and a person’s sense of themselves and the truth of their personal vision.

 

Every round, we see startup founders follow a similar emotional path. They come in at the top of the pile- the best handful of startups out of an application round of over 200. They know they’re hot shit, and they have accomplishments to be genuinely proud of.

And then mentoring starts, and they’re almost constantly on the defensive for the next month and a half. Every advisor and mentor has a different opinion, but they all reassure the startups that they *definitely* aren’t ready yet.

Nothing satisfies. Nothing is where it needs to be.

Just when these mentoring sessions start to slow down, and the startups now have a really good sense of how to talk about their companies and the direction they want to go, a new assault begins. In month two, we bring in domain experts in UX/UI, publicity, marketing and growth hacking, and financial planning, and we beat them all back down again.

Last week, Fiodor Tonti, a team member at LeCamping, in Numa Paris, came to Prague to do a private workshop on UX design with our startups. One of the startups came out of a session with him and told Cedric, our MD, “that was devastating.”

Later in the day, we sat with another startup doing live user testing, and a dozen people watched as a test user stated that they were ready to quit trying to use the application, because the onboarding process was just too frustrating.

A few weeks ago, I gave a workshop for our startups on homepage/landing page design. Then I stood up in front of all the startups, and we critiqued each of their homepages together, in some detail. They were hard on each other. One of the teams commented afterward. “I can’t believe how bad our homepage is. I didn’t see how big a problem it could be.”

Software engineers, in their comfort zones, are not used to the creative suffering involved in watching their work being misunderstood, or worse, actually disliked and dismissed. Most work on minute, specific problems, the solutions to which may be complicated, but are at least fairly clear. But startup founders work on big, holistic problems, the solutions to which are far from clear, and so their egos suffer miserably when their noble efforts fail, as they invariably do in some way. 

Fear 

Of course, we’re all afraid of failing. And with startups, failure is perhaps not the most expected result, however, it is definitely the most common. And as Frank Herbert famously wrote in Dune, “fear is the mind-killer.” Fear stops you from acting, even when action is necessary. The thinking goes, I suppose, If I don’t make a decision, I can’t fail. Or at least, if I fail because I don’t act, I will at least know why I failed.

Inaction in the face of fear is a way of staying in control. So it goes with many of our founders, especially in their first month or so. In the face of harsh feedback, or suggestions they don’t agree with, or weren’t expecting, they don’t refuse to listen. They simply refuse to act. They say: “yeah, I’ll think about it,” or they’ll make other excuses: “well I’ll work on that stuff when I’ve finished doing X, Y, and Z.” Of course, X, Y, and Z are never-ending jobs, like working on their backends, or their webpages, or refining their mobile apps, or introducing new features.

Sometimes founders get stuck in a rut that seems incredibly productive, from their perspective. They’ll work on a new feature, and then realize that the backend needs to be reconfigured, only to discover that they need to develop something else from scratch to make that work, and pretty soon they’re rebuilding their whole product.

One team, until well into the second month of the program, couldn’t be convinced to start developing new features and testing new business models. They had gotten so used to focusing on their existing users, most of whom were not paying for the service, that their answer to anything new was to study their existing userbase.

A fear of losing something they’d gained, even if there wasn’t as much value in it as they had thought, was hard to overcome.

Similarly, another startup this year had great difficulty in deciding to rebrand. Despite a large number of downloads of their app, their paid userbase was small, and their traction was relatively poor.

Rebranding in this case was meant to improve user retention, because it appeared that users coming to the app were not really the right market for it. It got downloads, but it didn’t convert. The idea for this founder of giving up app-store positioning and rebranding away from a name that had so many downloads was very difficult. The fear of letting go of what he had in favor of what he might get was real. But in the end, he made the decision to rebrand.

On another team, the founders repeatedly missed other deadlines during the first month of the program, because they were so focused on finishing and distributing a new release of their product. Meanwhile, we had to work to convince them that the feedback they were getting was as relevant to the new product as to the existing one. Their answer, every time someone brought up a problem with their model or their product, was that it would be fixed in the next release.

Engineers and developers build. That’s what engineers and developers are good at, so that’s what they want to do. And when it comes to user-testing, and talking to investors, the new features and the new plans are always on the horizon- something to be talked about, but not revealed. Constant work is a way of putting off criticisms, and putting off the fear of failure.

And one can always point to future plans and future features which will make the criticisms of today obsolete. We see founders duck these problems all the time, telling mentors that they’ll have everything solved when the new update comes out, or the new marketing manager gets hired. As any accelerator can tell you, this can become a bit like school- founders fall into the same patterns they’ve had since childhood, to avoid doing the things they don’t like doing, or are afraid to fail at.

The old saying “the better is the enemy of the good,” is something I find myself saying very often. Along with another stock phrase our startups become very tired of hearing: “If it’s stupid, and it works, it’s not stupid.”

Not accepting current and past failures just perpetuates them. and focusing on the future means you’ll constantly be catching up to yourself- constantly making teh same mistakes. You can’t learn from something you aren’t willing to face up to, and a big part of the learning curve at StartupYard is in gaining the willingness not to make excuses.

One of our founders came to me this week, having made a realization about his priorities in this regard, and said: “I feel like I have to learn to become a different kind of person now.” In a sense, he does. He has to hang onto the tenacious effort and skill that got him this far, but he also has to accept his limitations, and be ready to fail at new things.

Programmers are possessive of their work and of their ideas. Putting them out in the world, testing them, and seeing what people think about them, means giving up ownership, and giving up control. If I let someone see my work, I don’t own it anymore- I can’t control what they think about it. That can be a terrifying feeling.

Wisdom

So far, I suppose I’ve made the StartupYard experience sound pretty negative. Well there are tough moments for all of us. If it wasn’t hard, it wouldn’t be worth doing.

The only way to become wise, is to fail. To push past frustration and ego, you have to accept failures and learn from them, rather than dooming yourself to repeat them again and again. Often when I am recruiting applicants for StartupYard, I tell them this: “an accelerator speeds up failure, and gives you a place where failing is acceptable, and profitable.”

So in that light, as our startups are just beginning to practice their pitches and prepare for their premieres at Demo Day, I like to see the final phase of StartupYard as the most constructive. Having exposed themselves to a great deal of criticism, advice, and probing explorations of their motivations and their abilities to deliver on their claims and their visions, the startup founders are now much wiser than when they started.

Questions and doubts don’t bother them. Criticisms are expected and welcomed. in two short months, they’ve found every way to fail, and are ready to succeed.

Joy

I used to teach high school English. I loved the work, but I mostly hated the job. Schools were underfunded, and overcrowded. Teachers got little respect, and even less pay. Much of the job is demoralizing, and the hours are long, and often boringly repetitive. You experience the same problems over and over, and have little power to effect change.

However, there were moments I had as a teacher which I will remember for the rest of my life. A student, some years after being in one of my classes, ran into me in the street, a fully grown adult, and stopped me to tell me that I had changed his life. That he had decided to study English, and he had gotten involved in local politics, and that my lessons had changed his worldview, and given him hope for his future. I was blown away. That’s something teachers live for, and rarely get.

With startups, it’s much the same. The hours are long, the pay is not good (or non-existent), and founders often have to question whether they’ve been wasting sometimes years of their lives. They’re sometimes seen by their friends and family as dreamers, or unrealistic. They’re constantly being doubted and tested by others. And then something can happen: the first paying customer, the first happy testimonial from a user, the first really killer pitch, and an investment offer. This happens every year with StartupYard, and it’s magic.

The joy of having created something, and having gotten that thrill of seeing it succeed in some way; change someone’s life or even just make their day better, is unparalleled. That’s not a feeling you’re likely to get in your typical day job, because there, our accomplishments are never really our own- we are just doing our part.

As a startup founder, you’re insisting that there’s a new way of doing things: a new model that works more. Seeing that validated, for real, is a unique experience, and one I love to witness.

 

 

The Myia team joined StartupYard with not much more than a great idea, and the will to make it happen. Since they’ve been at the accelerator, it’s been a pleasure to see that idea grow into something truly unique and interesting.

Originally designed as a hyper-local messaging app, Myia has evolved into a concept with truly global potential.

It will be a platform that brings Wi-Fi as a common utility to a completely new level. Users around the world, at conferences, hotels, or other public spaces like shopping centers, will be able to access locally relevant services, information and communication channels, seamlessly and instantly with Myia.

Myia will also help Wi-Fi providers offer new services to their customers and visitors. 

This is an idea who’s time has truly come, and Myia wants to be the company that finally delivers on the promise of easily accessible Wi-Fi, anywhere you go.

I’ll let Ondrej Cervinka, CEO of Myia, tell you more:

 

Hi Ondrej, First off, I’m sure people are curious about your company’s name. What’s the backstory there?

Oh, it’s a long story but I enjoy telling it. Originally, the name was Xin, which is a Chinese word with many different meanings depending on the pronunciation – sign, letter, heart, mind, feeling, soul, intelligence, new, fresh, true, real.

It was perfect name for the messenger functions we had at that time. We built Myia originally as a Wifi based local messaging app. However, we received some negative feedback from American users about the name- it was hard to say, and seemed too foreign for some. So we were looking for another name.

One day we were discussing the name with a great StartupYard mentor, Liva Judic, and we thought: “Wait a minute, Liva is actually a nice name”. Unfortunately, Liva has been registered as a trademark so we couldn’t use it.

But we already liked the idea of having a feminine name, so we ended up with Myia. I like the name very much. Myia was a Greek philosopher and one of the daughters of Pythagoras. I like math, numbers and philosophy. So it is kind of attractive to me. Actually, it is pronounced as “mee ya”.

Unlike most of the other startups in StartupYard 2015, Myia came into the program with something very different from the new core product. What motivated you to join the accelerator?

A: At the beginning of 2015 we had a mobile app in all 3 app stores. It was simply a messenger that allowed users to send messages to anybody connected to the same Wi-Fi.

It was actually an outcome of a Microsoft Windows Phone hackathon organized at the Prague Impact Hub, where our company, WujiGrid, has offices. We had promising user responses and a lot of ideas for other features to add and how to improve the technology.

At that time StartupYard had just opened applications for its 5th batch of startups. We immediately jumped on the opportunity. Our goal was to use the mentors provided by the StartupYard program.

We wanted to consult with them on our business ideas and build a viable business model for Myia. We were also prepared to hear that there was no real business in Myia, and that we should keep it just as a toy app and do something else.

So the reason to join the accelerator was to get help with the areas where we did not feel very strong – business modeling, sales, and marketing. After one month in StartupYard we can say it was definitely a good decision.

How has your vision for Myia evolved over the past few months?

Our first goal was to narrow the possibilities for Myia down to one or just a few. It’s funny, but each day with mentors brought new ideas, new areas where Myia can be useful and new use cases. So at the beginning, the options didn’t get narrower, but wider.

We evolved the vision of Myia into an app that has two faces: First, people who install the app on their smartphones and second, providers of Wi-Fi, the owners of the hotspots. These two groups depend on each other.

For consumers, Myia is an app that provides a valuable functions and features depending on the type of place – restaurant, bar, café, concert, hotel, shopping mall, conference, airport, etc. Wi-Fi is ubiquitous technology today.

With Myia, you can meet new people, find a pool player in a pub, learn what is hot and cool in this place, get discount coupon or a voucher, rate presenters, vote for the best gig on the stage, contact hotel front desk, you name it. It is useful, it is fun, and it is relevant to the place where you are now.

Myia is also for the businesses who offer free Wi-Fi for their customers and who are looking for ways how to provide more added-value to them. It provides them a unique communication channel to their customers.

They can learn opinions of their guests and collect feedback. They can announce new shops in a mall, happy hours in a bar, send special offers. It is easy to postpone start of the first presentation after lunch on a conference, collect questions and rate the presentation. We can build loyalty programs for different businesses.

What has been the biggest challenge in adjusting your early vision to incorporate so much feedback from the StartupYard mentors?

A: As I said, we got a lot of feedback, ideas, opinions and advice from the mentors. Quite often they were even contradictory, which is great because we got wholly different perspectives.

We see it from many different angles now. So many different ideas are of course difficult to sort out. We cannot do everything together but we do not want to spend next 6 month on something that just to find out it’s a dead end.

Certain use cases work well only after there is certain percentage of people who use Myia. Of course, they will use it only if it brings them some value. So there is a classic chicken-or-egg problem here. After somebody installs the app they want to find many places where they can use it. So you have to start with something where people go often.

At the same time, Myia must bring a compelling value proposition both to the owner as well as to the end user. And we try to make it as viral as possible.

We are still working on this – trying to come out with different value propositions for various areas, test them with businesses, evaluate, and find overlaps with other areas. I see it as an organism. If everything fits together it starts to grow.

Tell us a bit about your background, and that of your team.

A: I am a programmer by profession. I studied artificial intelligence at CTU and then worked on various AI projects in Rockwell research center here in Prague. Then I joined a Swiss software house named IPS in 2000.

I met my Myia cofounders Filip and Michael there. Actually, Michael was one of my computer science students when I did my PhD, and Filip was the first candidate that I interviewed in my life.

 

At the end I was director of the IPS Prague branch and Filip was software architect in IPS. Then in 2010 we decided to found a startup called WujiGrid. It is a real-time collaboration app. It is kind of a shared desktop but it is in the cloud and it belongs to everyone in the collaboration group. And now we are with Myia.

So we have worked together for 15 years! All three of us are software engineers, so we might be weaker in sales and marketing. But very strong point is mutual trust. It is great if you know we can rely on each other in difficult times.

Q: Who will be your earliest clients? How will Myia make its first dollar on the market?

A: We’re working with businesses to pilot the service in different areas. StartupYard has helped us with their contacts and we are also doing very interesting things with Impact Hub Prague, which is our home turf.

We participate in Hub events and do networking games where Myia helps you to meet people that you are looking for. We really appreciate this cooperation.

Our plan is that the service will be free for the early adopters. This way we can spread the service as fast as possible because the more people use Myia the more useful it is for everyone. It will also help us to define exactly what value our users see in the service.

I think we will make the first dollar on some customization or implementation of specific functionalities for a large business. On top of that, we hope that the module for events will be the first paid service.

Q: Where do you see Myia as a business in 2-3 years? What do you see as some promising use cases and unexplored markets for the technology?

A: Ok, it’s going to be interesting to read this answer in 2-3 years from now, right? Long term, even with WujiGrid, we are interested in interaction between people, communication, collaboration, combining their skills and talents. We see Myia as a communication accelerator.

It puts together people who are at the same place at the same time. They meet with the help of Myia but then they interact in a real, natural way. Today everybody talks about social networks. Myia creates a network that is tightly linked to the real physical world.

Every day we meet a lot of people we do not know by name. Sometimes we meet them regularly, like on a bus when you go to work in the morning.

Imagine you lost your wallet in a foreign city where you are on a business trip. What do you do? Now Myia can tell you “Hey, there is a guy who takes the same bus as you every morning in your hotel, do you want to ping him?” He might help you, right?

Or your flight is delayed by 3 hours, you sit in the airport having nothing to do but wait and Myia beeps: “There is somebody waiting in the next gate who visited the same concert of Groove Planet you just attended last night.” Suddenly, you have a beer with them and enjoy the time.

Or business-wise, an airport shop can suggest there is new Groove Planet CD available. Ok, there will be no CD shops in 2-3 years, but this is the idea. From the technology point of view big data, machine learning, mathematical modelling, etc. this will be our way forward.

Q: This is a crowded market- some players in public Wi-Fi access include T-Mobile and Skype, as well as Google. What makes Myia special in your view?

This is difficult question. Myia relies on existing Wi-Fi infrastructure, so we see T-Mobile as a partner, the same is with Skype Wi-Fi. If a business place provides a Wi-Fi hotspot with any of the existing providers, Myia is able to bring some new monetization opportunities for the business owner.

Google relies on advertising, which is not what we plan to do. But I do not want to rule out your question based on just these examples. There may be some players in the market already, but this does not mean there is no space for more innovative players.

In fact, I think the fact that there remains no single preferred solution for wifi shows that the market is not fully mature yet- and there are a lot of opportunities to find new efficiencies.

The demand for public WiFi continues to grow, and as it does, the opportunities to add value in that market also multiply- we don’t see “competition” in that sense to be a bad thing at all. The more players in the market, the more customers will be aware of new possibilities, and have an opportunity to choose Myia for the value it adds.

 

 

The StartupYard team has liked Jaromir Dvoracek and Jan Mayer, co-founders of Trendlucid, since the day we all met. Infectiously energetic and passionate about their ideas, the Trendlucid team have also impressed our mentors with their vision for automating e-commerce business intelligence in the near future.

With their roots in data consultancy, Jan and Jaromir have branched out to develop their considerable combined experience by turning it into a tool for e-commerce, that they say will be able to predict the best sellers in any product category, up to two weeks before they reach number one.

I’ll let them tell you about all that, and more, below:

Most of our Startup co-founders are close, but you two often seem like twins. How did you start working together, and form Trendlucid? 

 

Jaromir:  We worked at the same company for a few years but actually never side by side every day. We’re trying it with the TrendLucid for the first time. And we’re twins definitely, but we’re quite different from each other, too.

TrendLucid lies on the top of our previous work of gathering and selling data for e-commerce price intelligence. It’s a logical next step in solving problems for e-shops. And Jan took this opportunity and crafted it into a side project, which became our main business opportunity.

Jan: I don’t agree! Twins often look and behave more similarly. Our strength is that we are completely different. I keep track of things and focus on value, Jaromir on the other hand adds sparkle to the ideas and creates the buzz.

In a few words, what is Trendlucid, and what does it do?

Jaromir: TrendLucid is a visual representation of the market giving you actionable insights about the product.

Suppose you’re a purchaser for an e-commerce site, and you need to know what to stock; what will be hot in the next few weeks. With Trendlucid, you can see a snapshot of all the products from a particular category (like smartwatches, or tvs, or washing machines), across the whole market at once. This includes pricing from other e-shops, and review information from as many sources as are available.

You’ll be able to quickly see how you can position yourself against competition in terms of price, but more importantly, which of the items on the market are actually reviewing really well, and being talked about most.

If there’s a winner with some room for a good profit margin, you can see that opportunity instantly. So if you’re using Trendlucid, you’ll be able to ensure that you’re offering the best prices, on the best products available.

What experience in data and e-commerce do you have that informs your work on Trendlucid?

Jaromir: We started 5 years ago as a consultancy for retailers of consumer electronics, as they need to know the prices of distributors. So we monitored the distributors for their prices and stock counts.

We continued as an e-shop scraping platform – clients sent us the products and we returned the list enriched with prices from competitors.

Today, we’re making that ability to view the market as a single map available as an on-demand tool, with even more market insights included in the graph that we are able to generate.

We’ve made the market something that retailers can explore, rather than something we have to investigate for them individually.

Jan: We had started with mining social media platforms, discussion and forum mentions from the whole Czech internet, and we’d sell that information to partners like Socialbakers.

One day a very “lucid” idea came to us – Why don’t we merge these two data sets to see not only what products people talk about, but what they eventually buy, and how that data correlates?

And the results were pretty interesting. We confirmed that the number of mentions and ratings strongly correlates with total sales of any given product. Moreover, we were able to use our market intelligence tools to determine that a lot of e-shops don’t have enough interesting products in their portfolios. Worse- they don’t know they have a problem!

What can you do that an e-shop or e-commerce company can’t do on its own?

Jan: We actually solve one of the biggest problems for e-shops: having the right products at the right time. If you stock a product that people won’t buy at the price point you anticipate, it’ll cost you a fortune to move the products- you’ll have to cut prices to move the stock, and that eats into your margins. On the other hand, if you can stock products that aren’t popular yet, but will be popular in a few weeks, you’ll be ahead of your competitors. You won’t have to cut your prices to get rid of stock no one wants to buy.

Jaromir: Every successful e-commerce works intensively with data nowadays. TrendLucid enriches and validates internal data from e-shops so purchasing managers and marketers can see if they’re behind the market. Every e-shop has internal data about sales. But they don’t have comprehensive overviews of market data. And that’s what we are fixing. Our vision of TrendLucid is to fully understand what people want to buy and automate purchasing management based on this information.

 

Through the mentoring process, you got a lot of conflicting advice- lots of big ideas. How did you get to your current vision?

Jaromir: Surprisingly we’ve received only two big contradicting pieces of advices so far. And it was “go big very quickly with a huge investment” vs. “your conservative approach to grow the business makes sense”. Our vision has been refined after hundreds of questions from our mentors at StartupYard. But business strategy was a much more oft-discussed topic.

Jan: We started with very simple idea: “Let’s show to e-shops what products they miss”. But they were so excited they wanted to know more. While we could show them very detailed and clear overviews of the current market, what they really wanted to see was the future- what will sell best 2 weeks from now? That’s a harder questions. We knew that the future of a product and the phase of it’s lifecycle can also be revealed in data, but the mentoring process really helped us to see that those insights were where the real value was for us, as a business.

We thought initially that the most important users of our engine would be purchasing managers for eshops. But one of our mentors, Wallace Green, who has a lot of experience with marketing, showed us the necessity of data to e-commerce marketing. He introduced us to the concept of the “smart marketer” who makes his decisions based on data, not on instinct.

This helped us to see that TrendLucid could also have a future as an insight tool for marketers, as well. As marketing becomes more data focused, there is an ever-increasing need for more granular and precise data on what people are talking about, and how that correlates with their buying decisions.

What will be your initial approach to the market? How will you make your first dollar? Where will you launch the service first?

 

Jaromir: We’ve already made our first dollar! We’ve been selling e-commerce data for 5 years now. So in a sense, TrendLucid is simply evolving into something more visible on the market- less a consultancy, and more a product for marketers and e-shop owners. We’ve taken our internal tools for visualizing the market, and made that available to more potential clients to try for themselves.

Jan: As part of making TrendLucid more of a “product,” than just a data consultancy, we contacted czech e-shops and offered to them trials of TrendLucid’s new market mapping software for a month in exchange for their valuable feedback. It’s working nicely so far. We want to follow Dan Hastík’s strategy, which he used with Futurelytics – integration with big e-commerce platforms (like Shopify).

We also found out that TrendLucid has many valuable metrics for manufacturers. They can measure brand awareness in many ways already. But they’ve not yet been able to measure product awareness for all their products on each market. That’s a game changer. With TrendLucid, they finally can.

Electronics, particularly online, are a generally low-margin business. What makes electronics e-commerce interesting for Trendlucid?

Jan: Social media has become important to understanding how consumers behave, and important in selling to them. And personal electronics have enabled and accelerated this trend as well. Electronics have become an element of personal fashion.

People want to buy a new smartphone every few months now – like new socks. We’ll see that even more with the rise of wearables in the near future. So consequently people talk a lot about electronics on social media and elsewhere. And that makes our insights into the market even more granular and valuable.

Whereas 30 years ago, consumer electronics was divided into just a few categories: personal, appliance, entertainment, they now represent a huge diversity of categories, with more choice than ever before. So purchasing decisions for e-shops become increasingly more difficult, even as margins are dropping.

This market segment has low margins and the fights for market share are pretty bloody. But at the same time, many e-shops miss out on big winners all the time. That’s actually why e-shops need TrendLucid to get ahead.

Jaromir: It’s hard to monitor this market manually. You can’t store all the information you need about phones, tablets and notebooks in your head, much less predict what features and individual products will be most popular. You can watch manually what is popular on the market and what you should try to sell. But no one person can have a complete handle on this market anymore.

It might be easy to pick the next big winner, if you’re comparing two or three competing products. But try it with thousands of washing machines, microwaves and televisions which are not so interesting for most purchasing officers. Try it with the ever-expanding list of wearables that are entering the market- all targeting a different market segment.

The problem with electronics is that the products change so fast. You can predict which type of socks will be popular for a sustained period, because our needs don’t change that fast. But electronics don’t follow these old patterns anymore. Now our needs change too fast for any individual to keep up.

That’s what our first client in Czech Republic found out: we  automatically identified the next best selling washing machine 14 days before it happened. Most of the e-shops stock best sellers 6 weeks after they’re already popular. That’s 8 weeks of margins they’re missing because they aren’t using TrendLucid.

What do you see the Trendlucid platform being capable of in a few years? Who will be your customers at that point?

Jaromir: We’ll be able to see trends worldwide. What’s popular on the American market today will be popular in central Europe 4 years later. What’s popular in Germany today will be popular in Slovakia 2 years later. What’s popular in South Korea now will be popular in the US a few months later. With TrendLucid you’ll be able to look back in time to see what you can sell successfully next month. You can prepare for changing market trends based on statistics. You’ll never miss the train again. This kind of information would be critical for big e-commerces, brands even for big retail players. We haven’t gotten to the level of understanding and complexity we need to be able to make those types of global, multi-year projections with real accuracy and speed. Nobody is really there yet, even if they claim to be. But that’s where we want to be.

Jan: Yep, that’s our first target. The second target is brands. We can tell LG, or Samsung, or any big brand with lots of products, which of their products people are talking about, in which countries- and what they’re saying. They’re working on “brand awareness” now. We can give them “product awareness”, which is one level more precise.

Right now we’re like Klout for products on the Czech Market. We’d like to apply that capability globally in the future.