mentors engaged with founders

How Smart Startups Keep Mentors Engaged

A version of this post originally appeared on the StartupYard blog in January 2016. As a new group of Startups joins us in the next few weeks for StartupYard Batch 8, we thought we’d dive back into a very important topic for them: How do the smartest startups engage their mentors?

But first: why do some of even the most successful startup founders continue to seek mentorship?

Mentorship is Core to Running a Startup

Founders have to balance mentorship with the day-to-day responsibilities of their companies. But sometimes founders approach mentorship as a kind of “detour” from their normal operations- something they can get through before “getting back to work.”

This is the wrong approach. Having worked with scores of startups myself, as a mentor, investor, and at StartupYard, I can comfortably say that those who engage with mentors most, get the most productive work done. Those who engage least, are generally the most likely to waste precious time. 

How can that be? Well, simply put, the first line of defense against the dumbest, most avoidable mistakes, are mentors who have made those mistakes themselves. I’ve seen this happen: a startup decides they’re going to try a certain thing, and it’s going to take X amount of work (often a lot of work). They mention it to a mentor, who forcefully advises that they not do it. The mentor tried it themselves, and failed.

Now this startup has 2 options: proceed knowing how and why the mentor failed, or change direction to avoid the same problems. Either way, an hour-long discussion with a mentor will probably have saved time and money, simply by raising awareness. I have seen 20 minute conversations with mentors save literally months of pain and struggle for startup founders.

Recently, one of our founders reached out to a handful of mentors for information on an investor who was very close to signing on as an Angel. The reaction was swift, and saved the founder from making a very serious mistake. The investor turned out to have a bad reputation, and was a huge risk. As a result, mentors scrambled to suggest alternatives and offer help securing the funds elsewhere. That is what engaged mentors can do for startups.

Engaged Mentors Defeat Wishful Thinking

There’s a tendency, particularly among startups that haven’t had enough challenging interactions with outsiders, to paper-over issues that the founders prefer not to think about. Often there “just isn’t enough data,” to prove or disprove the founders’ theories about the market.

We like to focus on things we can control, and things we have a hard time working out appear to be outside of that sphere, so we are more likely to ignore them, or hand-wave their importance away.

Founders sometimes long to go back into “builder mode,” and focus solely on executing all the advice they’ve been given. And they do usually still have a lot of building to do. But one common mistake -something we see every single year- is that startups will treat mentors as the source of individual ideas or advice, but not as a wellspring of continuing support and continual challenges.

The truth is that a great mentor will continually put a brake on your worst habits as a company. They will be a steadfast advocate of a certain point of view- hopefully one that differs from your own, and makes you better at answering tough questions. But you have to bring them in.

Treat Your Mentors like Precious Resources

I can’t say how many times great mentors, who have had big impacts on the teams they have worked with, have come to me asking for updates about those teams. These mentors would probably be flattered to hear what an effect they’ve had on their favorite startups, but the startups often won’t tell them. And the mentors, not knowing whether they’ve been listened to, don’t press the issue either.

Mentors need care and feeding. They need love. Like in any relationship, this requires effort on both sides.

But time and again, mentors who are ready to offer support, further contacts, and more, are simply left with the impression that the startup isn’t doing anything, much less anything they recommended or hoped the startup would try.

Mentors who aren’t engaged with a startup’s activities won’t mention them to colleagues and friends. They won’t brag about progress they don’t know about, and they won’t think of the startup the next time they meet someone who would be an interesting contact for the founders.

This isn’t terribly complicated stuff. Many founders fear at first that “spamming” or “networking,” is the act of the desperate and the unloved. If their ideas are brilliant and their products genius, then surely success will simply find them. Or so the thinking goes.

Alas, that’s a powerful Silicon Valley myth. And believe me: it doesn’t apply to you. Engaging mentors is just like engaging customers: even if you’re Steve Jobs or Elon Musk, you still need to be challenged and questioned. You still need support.

As always, there are a few simple best practices to follow.

1. A Mentor Newsletter

Two of StartupYard’s best Alumni, Gjirafa and TeskaLabs, provide regular “Mentor Update” newsletters. These letters can follow a few different formats, but the important things are these: be consistent in format, and update regularly. Ales Teska, TeskaLab’s founder, sends a monthly update to all mentors and advisors.

In the email, he has 4 major sections. Here they are with explanations of the purpose of each:

Introduction

Here you give a personal account of how things are going. You can mention personal news, or news about the team, offices, team activities, and other minutiae. This is a good place to tell small stories that may be interesting to your mentors, and will help them to feel they know you better. Did a member of the team become a parent? Tell it here. Did you travel to Dubai on business? Give a quick account of the trip.

Ask

This is one section which I love about Ales’s emails. I always scroll down to the “ask” section, and read it right away. Here, Ales comes up with a new request for his mentors every single time. It can be something simple like: “we really need a good coffee provider for the office,” to something bigger, like “we are looking for an all-star security-focused salesman with 10 years experience.”

Whatever it is, he engages his mentors to answer the questions they know, by replying directly to the email. This way, he can gauge who is reading the emails, and he can very quickly get great answers to important questions or requests.

Audience engagement happens on many levels. Not everything engages every mentor all the time, and that’s important to keep in mind. A simple question can start an important conversation. You don’t know what a mentor has to offer you until you find the right way to ask for their help.

Wins

Here, Ales usually shares any good news he has about the company. This section is invaluable, because it reminds mentors that the company is moving forward, and making gains. A win can be anything positive. You can say that a win was hiring a great new developer, or finally getting the perfect offices. Or it can be an investment or a new client contact. These show mentors that you are working hard, and that you are making progress and experiencing some form of traction.

You’d be surprised how many mentors simply assume that a startup that isn’t talking about any successes, must have already failed. StartupLand in can be like Hollywood that way: if you haven’t seen someone’s name on the billboards lately, it means they’ve washed out.

The fact might be that you’re quietly doing great business, but see what happens when someone asks about you to a mentor who hasn’t heard anything in 6 months. “Those guys? I don’t know… I guess they aren’t doing much, I haven’t heard from them in a while.” There’s no good reason for that conversation to happen that way.

KPIs

Here Ales shares a consistent set of Key Performance Indicators. In his case, it is about the company’s sales pipeline, but for other companies, it might be slightly different items, such as “time on site,” or “number of daily logins,” or “mentions in media.” Whatever KPIs are most important to your growth as a company, these should be shared proactively with your mentors.

If the news isn’t positive, then explain why. You can also have a little fun with this, and include silly KPIs like: “pizza consumed,” or “bugs found.” This exercise shows mentors that you are moving forward, and gives them a reliable and repeatable overview of what you’re experiencing in any given week.

I heard one mentor complaining not long ago about these types of emails. “The KPIs don’t change that much, it’s always the same thing.” But he was thinking about the startup in question. The fact that the KPIs hadn’t changed might be a bad sign to the mentor, but probably the absence of any contact would be worse. At least in this case, the mentor might care enough to reach out and ask what’s going on.

2. Care and Watering

Mentors aren’t mushrooms. They don’t do well in the dark. Once you’ve identified your most engaged mentors, you need to put in as much effort in growing your relationship as you expect to get back from them.

How can you grow a relationship with a mentor? Start by identifying what the mentor wishes to accomplish in their career, in their life, or in their work with you. Do they want to move up the career path? Do they want to do something good for the human race? Do they just want to feel needed or important?

A person’s motivations for mentorship can work to your advantage. Try and help them achieve their goals, so that they can help you achieve yours.

Does a mentor want his or her boss’s job? Feed them information that will help them get ahead of colleagues and stand out. Mention them in your PR, or on your blog to enhance their visibility.

Does the mentor want to be a humanitarian? Show them the positive effects they’ve had by sending them a letter, or inviting them to a dinner.

Does the founder yearn to be needed? Include his/her name in your newsletter and highlight their importance to your startup. These things are all easy to do, and can be the difference between a mentor choosing to help you, and finding other things to do with their busy schedules.

4 Ways to Never Fail a StartupYard Interview

The 17th century French poet Boileau famously said: Ce que l’on conçoit bien s’énonce clairement, Et les mots pour le dire arrivent aisément. Or: “An idea well conceived presents itself clearly, and words to express it come readily.”

Or to put it bluntly: An idea isn’t any good unless it can be explained to someone else. If there were one piece of advice I could drill into the head of every brilliant startup founder I’ve met in my career, it would probably be just that.

But since we have some time, I’m going to go deeper. Here is:

How to Never Fail at A StartupYard Interview 

StartupYard will begin interviews for Batch 8 next week, and in the meantime, we thought we would share with them (and you), 4 key strategies that any startup can use in an interview with us, or any investor, that will help them never to fail.

Now, this advice is not going to win you an investment 100% of the time.

Investments are complicated, and they involve the needs and priorities of multiple parties. A perfect meeting might not produce an investment for a million valid reasons. But I can guarantee that if you follow this advice well, you will not fail to give your best possible impression to an investor.

Follow this advice, and you will not fail for stupid reasons.

1. Answer Questions As They are Asked

Simple and yet incredibly difficult for many people. Answer a question as it is asked, not as you would like it to be asked.

Did someone ask you a question to which you can say Yes or No? Then say Yes, or No. Then explain your answer. If you’ve never interviewed someone, I can let you in on a secret: it is very obvious when someone does not want to answer your question.

It is also very annoying.

And this produces the world’s most frustrating non-answers to simple questions. The below example is not fiction:

    • Are you making any revenue?
    • Well, we only launched about 6 months ago, and we have been focusing on making partnerships with relevant partners who are going to help us scale to our target market, and define the right sales strategy while getting early feedback from customers.
    • But are you making any revenue now?
    • Currently we are in beta and we are talking with a few clients who are ready to become paying customers once the features they need are fully implemented.
    • Are. You. Making. Any. Revenue?
    • No.
    • Thank you.

We don’t ask trick questions. What would be the point? And yet this behavior is widespread among startup founders. It is a learned behavior that must be slowly and painfully unlearned.

We want to know about what we’re asking about. So don’t try to give us the “right” answer. Just give us the real answer. What do you think is worse, us hearing that you aren’t making any revenue, or us leaving the meeting thinking you’re not even capable of answering simple questions?

And the real answer can contain the same information. Just in a slightly different format:

  • Are you making any revenue?
  • No. But we have a few customers who want to pay us as soon as we have the right features implemented. We only launched 6 months ago, and we’ve been focusing on partnerships.
  • Ok, who are these customers, and what features do they want?

Now we’re getting somewhere. And it was so easy! Now we can move to more important questions. This is a real conversation.

If the purpose of an interview is to exchange information and to assess a relationship, we would much rather spend our time doing that, than trying to decode cryptic phrases and hints.

So answer the question.

2. Win the Argument: Lose the Interview

It might be in school where people learn that an impressive, intelligent answer to a question is necessarily the longest and the most complicated one. It might also be in school where we learn that the one who speaks last has won the argument. We probably learn that from watching our teachers. But are these really good lessons?

Among the worst qualities we observe in some founders is the need to triumph, rather than to persuade. But winning an argument is different from convincing someone you may be right, or that you at least know what you’re talking about. Winning is not the goal here.

Trust your interviewers to see you as a human being, and they will like you for it. Treat them as human beings, and they will love you. But make the interview into some sort of contest for control of the subject matter and the upper ground, and they will end up wanting to get rid of you.

So communicate. Don’t argue.

What’s the best answer to a question you don’t know how to answer? Try: “I don’t know.”

You might be surprised how much investors will respect a founder who is not afraid to admit they don’t know everything. In a room full of smart people, there are always going to be things you don’t know that others do.

When answering a question, watch the interviewers, and if they seem ready to speak or unsure what you’re saying, ask them: “is this answering your question?”

So much of what we do at StartupYard involves unlearning and deconstructing the behaviors and impulses that stop founders from being great communicators and effective leaders. Most of that boils down to their motivations in any given situation. What do you want to accomplish here? Do you want to win, or do you want to be understood?

So start with this simple goal in mind: you want the investors to know you. You want to get to know them. If in the course of an interview, you can achieve this basic understanding, on a human level, then you will have succeeded.

3. Look Like You Belong Here: Because You Do

My father wore a suit and tie to work for 30 years. When I got a bit older and started working, I told him I’d never wear a suit and tie to work.

What he said sort of took me by surprise. He said: “we dress according to social customs, not just to show respect for others, but also to show self-respect. We dress to show that we feel we belong.”

I still don’t wear a suit to work, because I work with startups, and nobody does. But still, I notice when a person is poorly or inappropriately dressed for any given situation.

And that can swing both ways: a guy in an immaculate 3-piece suit who wants to talk about his startup is as out of place as the guy in the bathrobe with sleep in his eyes. Neither belong in that situation. Failure to dress like you belong can show that you don’t respect the social customs of your surroundings, but also that you don’t see yourself as belonging to them.

So think just a bit about how you look. Do you look like a startup founder? If you’re not sure, you may need to think more about this. Not too much. But a little.

4. Plan Ahead: Most Questions are Obvious

Here are three things any startup investor should ask you about:

  1. What is the problem you’re solving?
  2. What is the solution?
  3. Who are your customers?

If you can’t answer these three questions clearly, and succinctly, then perhaps you don’t know the answers well enough yet.

And when you sit down to answer these questions, try and imagine an investor hearing this for the first time. What is that person likely to ask you?

  • The problem we are solving is that X can’t Y when Z
  • Why does X want to Y when Z?
  • They just do…

Oops. Do you know why your problem is actually a problem? It might surprise you how frequently founders aren’t all that sure that the problem they’re solving is even a real problem at all.

Because “answering the question,” as in literally stating the problem, is not really answering the question. The object of the question is to get a useful answer: Why is it a problem? When is it a problem? How is it a problem? What is the result of the problem?

So be ready for a follow up. It will come.

Remember, a good investor, especially at an early stage, should be evaluating your ability to think clearly, as much as the idea you are describing to them. They can hate the idea, but be impressed with the clarity of your thinking. That happens to me all the time.

We have invested in companies whose ideas we didn’t fully agree with, because they showed they could think well and be receptive. That’s more valuable than an idea you love, and a founder who can’t answer simple questions about it. In assessing which of those two founders is likely to be a success, the one who can answer questions is the one we pick every time.

Innovation Nest, StartupYard, CEE Allstars

StartupYard Podcast Ep. 3: Chris Kobylecki of Innovation Nest, Krakow

In late May, StartupYard took part, along with two of our alumni (BudgetBakers and Claimair), in a private conference for Central European Startups we called “CEE AllStars.” Put on with the help of Google’s Campus Warsaw, and led primarily by the team at the VC fund Innovation Nest (who co-authored an article with us a few months back about the Polish startup scene.

Cee AllStars

The unique event was put together by a group of accelerators and early-stage investors from Poland, Estonia, Czechia, and Germany (as well as a few other locations), in order to provide a refreshing alternative to for-profit startup conferences in which startups normally compete with a great deal of noise to talk to investors. This event had a 1:1 investor to startup ratio, and every single startup had to be personally recommended to attend by one of the organizing investors.

I sat down with Chris Kobylecki, of Innovation Nest, to talk about the event, and about his take on the Polish tech ecosystem and more. Here is our interview:

(Apologies for the audio quality here: the interview had to take place in a busy venue, but I did my best to make sure our voices were audible).

 

Update: StartupYard in Bucharest: June 6th, Partnering with Bucharest.ai

Update: June 1st, 2017:

We’re pleased to announce that StartupYard will partner with Bucharest.ai to reach out to AI specialists and enthusiasts in Romania ahead of and during our visit on the 6th. Bucharest.ai, a part of the CITY.AI project, will speak about the current state of AI in Romania, and give insights and inspiration to potential founders of AI companies in the region. 

A Talk from Alexandra Petrus: 

We are witnessing a nascent playfield where innovators are building amazing products that address unthinkable human problems.  During this talk, we’ll see the Current State of AI: AI beyond the hype, bold predictions and why build an AI product. This talk will take place immediately following a presentation by StartupYard (more info below)
About City.ai
CITY.AI is a community of 23+ cities that share discoveries in applied AI and connect you to international peers. City.AI powers Chapters throughout the globe. The local communities bring unique contributions, perspectives and are bound by the purpose of collaborative knowledge in the field of Applied AI. By increasing transparency and collaboration, we aim to enable more people to better apply artificial intelligence.
About Alexandra: 
Alexandra Petrus is an experienced operations and product leadership professional, with 6+ years of international startup experience who focuses on new technology products and services. Currently contributing to the fintech & ecomm world through products @2checkout; she ran Products @Reincubate – the app data company, helps build the Bucharest City.AI Chapter as an Ambassador and is igniting her hobby and passion that are the emerging technologies & how to contribute to a better life and environment experience through the side projects that she runs (#healthtech).

 

Are Romanian deep tech startups, those working on AI, Machine Learning, advanced Cryptography, Blockchain, and IOT applications, competitive yet on the global stage? That is what the StartupYard team will explore during a day of workshops and networking at TechHub Bucharest, on Tuesday, June 6th, 2017.

Are you a Romanian entrepreneur with a love of technology and a potentially killer idea for a global business using AI/ML/Blockchain/IoT or something else? StartupYard is your stepping stone to the wider world. Find out more, and sign up for one of the workshops or presentations below:

WHERE: TechHub, Bucharest 

Agenda:

14:00-15:30: Making it Real: Storytelling and Positioning for Deep Tech Workshop with Lloyd Waldo
16:00-18:00: Office hours with StartupYard
18:00-19:00: From Genius Idea to a Global Business: Creating AI Startups from ScratchPresentation with Cedric Maloux

About the Events:

Office Hours with StartupYard:

Looking for feedback, advice, or connections in a specific domain, or on your ideas generally? We’re here to lend you a hand. You can sign up to meet the StartupYard team for a private 20-minute session on June 6th. No obligations whatsoever.

 

Making it Real: Storytelling and Positioning for Deep Tech.

In this spellbinding workshop, Lloyd Waldo, creative marketing veteran of dozens of startups, will show entrepreneurs how early stage companies can apply practical storytelling skills to convince their earliest stakeholders (including cofounders, investors, customers, and employees), of the power of a new idea. Learn to instinctively transform ideas from dry descriptions and speculation into compelling narratives, that put you in control of the conversation. Learn how simple positioning and framing devices can help you to achieve greater clarity in your ideas, and persuade others to believe in what you do.
Hosted by StartupYard Community Manager Lloyd Waldo , 14:00-15:30, Tuesday June 6th at TechHub Bucharest.

 

 

cedric maloux startupyard

StartupYard Managing Director Cedric Maloux

Presentation: From Genius Idea to a Global Business: Creating AI Startups from Scratch

Cedric Maloux has been an internet entrepreneur almost since there has been an internet after graduating in 1992 as an Engineer in Artificial Intelligence. He started his first major online venture in 1996, and sold it in 2000. He’s been starting new ones ever since reaching millions of users around the world. StartupYard, which Maloux runs as Managing Director, helps technically sophisticated developers and makers turn their ideas into real, growing businesses. In recent years, we have helped launch a series of high tech startups including TeskaLabs, Neuron Soundware, Cryptelo, Chatler.ai and Rossum.ai. Find out how these startups went from a brilliant idea, to companies serving clients all over the world with cutting edge technologies. –Hosted by StartupYard MD Cedric Maloux. 18:00-19:00, Tuesday June 6th at TechHub Bucharest.

 

StartupYard Podcast Episode 2: Thomas Patzko of ImpactHub Zurich

This week I visited Warsaw, for Google Campus’s exlusive “CEE Allstars” event, matching investors and startups at a 1:1 ratio for 2 days of pitches and discussions. During the event, I sat down for an episode of the StartupYard podcast with Thomas Patzko, to talk about Impact Hub Zurich, growing startups in one of the world’s richest and most conservative countries, and fundraising for Central European startups.

 


Key Takeaways: 

  • Switzerland, with its high cost of living and conservative society, stigmatizes startups and entrepreneurialism
  • Risk aversion in Switzerland goes back in history to its political neutrality
  • The social safety net is built around employment, not self-employment
  • In Switzerland, salary levels are guaranteed according to a person’s level of education, offering graduates attractive salaries
  • Small traditional businesses are respected, and are in fact the backbone of Swiss society 
  • ImpactHub mentors its members on investor relationships – Thomas focuses on helping startups understand investor motivations
  • Swiss startups can suffer from “over-investment,” causing them to defocus in order to match investor benchmarks
  • Communities like ImpactHub are growing in their importance as a defense against predatory investors or wild speculation. 
  • ImpactHub encourages its members to tackle problems that are outside of their experience

About Tomas:

For Thomas work is more than just making money. That is one of the reasons why he has worked in multiple fields, including a private home for the aged, building and leading various country presences of an insurance corporation, and for nine years as an independent business consultant and coach. His journey of finding possibilities to facilitate real change and encouraging individuals to experience happiness in their professional lives, has led Thomas to the Impact Hub where he curates the relationship with corporate partners and conducts business development. He holds an M.Sc. in economy and business administration and has completed advanced degrees in coaching and sociology.

About ImpactHub:

ImpactHub is built around the belief that the world’s greatest challenges will never be solved by one person or organization alone. We need to work together.

ImpactHub has set out to build a thriving innovation ecosystem where people collaborate across organizations, cultures and generations to solve the grand challenges of our time. ImpactHub Zurich, among the largest of ImpactHub’s locations, has nearly 1000 members, and reaches 10s of thousands of people in Zurich and across Europe. It was founded in 2010, and has 3 locations in Zurich.

SY Podcast: Mergim Cahani, Founder and CEO of the Fastest Growing Tech Company in the Balkans

Blockchain, StartupYard,

Blockchain Founders Need StartupYard: SY Alum Dite Gashi

Dite Gashi is the founder and CEO of Decissio, the blockchain powered investment management and smart-contracts platform that was accelerated at StartupYard this year. Dite has called Decissio the “Jarvis” of investment decision making. The company is working to build a data platform that helps venture investors and professional portfolio managers to actively manage their investments, based on blockchain verified and real-time data.

Dite has been a leading voice in the blockchain movement for years, and represented the first startup at StartupYard to focus on the technology. I caught up with Dite this week to talk about the future of Blockchain, and why startups in the space need accelerators like StartupYard now more than ever. Here’s what he had to say:

Hi Dite, you’ve been working with Blockchain technology for almost as long as it has been around. Tell us how you got into Blockchain, and why it still fascinates you.

Decissio, StartupYard

Dite Gashi, left, participating in StartupYard’s voice training workshop

Blockchain has been an obsession of mine from when it came out as a research paper, all the way up to Bitcoin and Ethereum. My background is in computer science, business management and economics. This knowledge base, fueled by curiosity, allowed me to dive deeper into blockchain concepts first and then into their applications in the world of business quicker than the mainstream world, which to this day I believe has a superficial understanding of blockchain as an innovation.

What doesn’t the mainstream business world understand about Blockchain?

Most of the mainstream business world seems to be in a state of needing to get a piece of the action when it comes to this technology. I’ve literally heard phrases like – we are talking to you because our CEO said “we need blockchain.”

Why 'we need Blockchain' isn't a good reason to work with most Blockchain #startups - Dite Gashi… Click To Tweet

The fear of missing out is big. I’d go as far as to say that’s the money that keeps most blockchain startups running. Wanting to be part of the new revolution is totally fine, however the way that they go about it tends to be sub-optimal. Investors sometimes invest in shady schemes and promising ICO’s (Initial Coin Offering) without proper tech due diligence and auditing, just to find out a few months down the line that the tokens they got are suddenly worthless.

I think the greatest misconception lies in not understanding the basic utility that blockchain provides, which in most cases boils down to somehow cutting out the middle man. Only after understanding it, can you think of an investment opportunity through the filter of whether a blockchain application would be the best for that particular purpose. There are many applications out there who would do fine without blockchain.

You attended StartupYard as part of Batch 7 earlier this year. What do you think that other founders with Blockchain ideas can get out of StartupYard?

Having been present in the blockchain sphere for a while I can attest that most blockchain people tend to be technologically inclined, or as the world likes to call them, nerds. They have strong technical skills that they apply or a great ability to understand and aim to solve important problems. I believe that is great for building technology blocks, innovating and bringing about thought provoking questions of alternate models of functioning.

Where the blockchain community does fall short though is the ability to reach out to people. I believe blockchain founders can learn about marketing, how to sell and how to communicate with masses. They can better refine their offerings to match the needs of the market – something that many startups miss.

Right now we are seeing a sort of valley between the promise of Blockchain innovation and the realities. Right now, the technology is too geeky and complex for ordinary people to use, and too fringy and speculative for corporations to really get behind it. A team I put together last month took 2nd place in the KB Fintech Hackathon in Prague, working on a blockchain contract verification system, so it’s obvious that banks are starting to see real potential in the technology.

Still, we are in the very early days, and blockchain founders are going to need a lot of exposure to the perceptions and expectations of existing industries, in order to come up with solutions that have a chance of being adopted widely. StartupYard is an ideal environment for a really speculative technology to come face to face with the hard reality of the market. I think Decissio is a perfect example of that: all the traction we’ve gained has been thanks to the feedback we got directly from potential customers at StartupYard.

What do you see as the biggest barriers for Blockchain founders right now?

Probably more than any area in tech in recent history, blockchain does have a credibility problem. A big part of that has been the ongoing saga of Bitcoin, which has unfortunately attracted a lot of negative attention. Rightly so, I think, because Bitcoin brought some of the worst elements to the blockchain community, and became an attractor for the get-rich-quick schemers and for cyber-criminals and extreme political ideologues.

Actually this is nothing new: the internet itself did basically the same thing in the 1990s especially, and it suffered its own credibility gap, until serious, in-depth businesses started to make the web safer and more usable for regular people and business. Any really disruptive area of technology has this cycle built in. Now we need serious, sober thinkers to apply themselves to making blockchain useful in real life, and not just in fringe communities. That is a blocker for good people to take Blockchain technology seriously, and a blocker for them to pitch new blockchain ideas in the business and consumer worlds.

This is also a reason why I see StartupYard as a great platform for serious Blockchain innovators. Working with an accelerator like StartupYard brings much needed credibility to ideas that many would-be customers and partners might not take seriously. But with StartupYard, you have a chance to be heard by the right people, and given a chance to convince them you’re doing something interesting.

What was your biggest surprise attending StartupYard? What were you not expecting to change?

The biggest shock for me was to figure out how mainstream customers (in my case, investors) think in relation to products and services they purchase. We tend to turn it into a complex equation, however it boils down to really simple factors when facing a buying decision.

'At Sy I learned that mainstream customers don't buy technology. They buy solutions.' -Dite Gashi Click To Tweet

I believed that I could relate to customers and if we had a great technological products sales would soar. That is the case sometimes, however if you can’t really explain how it relates to people you are selling to, the product is a lost cause. I thought I was good at that, but being faced with mentors, customers and advisors it is obvious that I had a lot of catching up to do – which has lead to tremendous growth of knowledge on my end.

What do you think are the biggest weaknesses in the Blockchain community, when it comes to turning new ideas into businesses?

Blockchain is a maturing technology that has tremendous potential. I like to make comparisons with the early days of cloud computing – companies like Dropbox, Amazon Web Services, Azure capitalized on new technology breakthroughs, and built great products. Blockchain has the potential to be as transformative as cloud computing in the near future.

When you really look at it, Blockchain can form the backbone for a whole new way of looking at the web. There are really not many areas of commerce or government, or even interpersonal relationships, that Blockchain won’t touch. Imagine things like credit card fraud or political corruption being impossible, because at every level, monetary transactions and activities can be audited by powerful AIs. Imagine democratic processes that are un-hackable, or messaging systems that are impossible to hack into. Scary ideas for some people, I’m sure, but an amazing vision of the future for most of us.

The internet has created unprecedented prosperity, but also unprecedented opportunities for fraud and abuse. Blockchain technology, or something very much like it, may be the answer as to how we move forward into a trust based society, where everyone has really powerful tools for protecting themselves and being treated fairly.

'Blockchain is like cloud-computing. It can change everything.' - Dite Gashi on #Blockchain… Click To Tweet

I believe there are many disruptive blockchain applications and companies waiting to be built by ambitious founders. The weaknesses that community faces is monetization. Many blockchain ideas sound good on paper, however for an idea to work and thrive it has to benefit all stakeholders involved, including founders and investors. With the cloud, there was also a learning curve around how it would be monetized: there was uncertainty about where the defensible value of new products was, be it in hardware or software. Blockchain has the same issue, only more so: it is about distribution and de-centralization, which makes it more complicated to create a business model around it.

It doesn’t help that blockchain people seem to be a part of a bubble and are often isolated from actual customer needs. Disruptive technology needs to have people behind it that really understand the customers whose industries they are disrupting. As became very clear to me working with the mentors at StartupYard, just because we see ourselves as creating new technologies, doesn’t actually mean that customers see us that way: people rarely buy technologies, they buy solutions to their problems, in whatever form that takes.

What would you say to a Blockchain startup founder who is thinking about applying to StartupYard?

Having blockchain experience I receive loads of requests for consultation ranging from technology architecture to cryptocurrency trading. It has led me to grow a bit reluctant to provide strong advice, just because the field is changing so often and I would like to be accurate with my proposals.

However in the case of StartupYard I am 100% convinced that it would benefit a blockchain founder tremendously. Trust me on this one, do it and then thank me later.

While at StartupYard I would encourage them to go in with an open mind towards receiving all sorts of feedback and then incorporate what they believe applies to them. In the same time be ready to handle the frustration of “people not getting it”. Just because you have been breathing, living and working blockchain it does not mean the rest of the world stopped. People have their own jobs and industries they work in. Focus on learning as much as you can and apply the lessons to refine your product. Good luck!

You can now apply for StartupYard Batch #8.

  • Robots
  • Artificial Intelligence
  • VR/AR
  • IoT
  • Cryptography
  • Blockchain
Applications Open: Now
Applications Close: June 30th, 2017
Program starts: September 4th, 2017
Program ends: December 1st, 2017

StartupYard will be at Startup Safary Budapest: April 20-21

We’re pleased to announce that StartupYard will take part in Startup Safary Budapest, April 20th and 21st, 2017.

What is Startup Safary?

Budapest turns into a startup exhibition for 2 days

For two days only, most of the tech community of Budapest opens its doors, and takes part in a broad series of meetups at dozens of locations around the city. This year, an estimate 3-5,000 people will participate.
As an attendee, you can register online and pick from the program sessions you want to attend. This way, you create your personal schedule, which you will follow during the event, traveling around the city and visiting various offices.

 

StartupYard Events

From Genius Idea to a Global Business: creating AI startups from Scratch

20/04/2017 17:30 – 18:00 – thehub.hu, 1061 Budapest, Paulay Ede utca 65.

21/04/2017 TBA Mosaik, 1136 Budapest, Pannónia utca 32.

StartupYard helps technically sophisticated developers and makers turn their ideas into real, growing businesses. In recent years, we have helped launch a series of high tech startups including TeskaLabs, Neuron Soundware, Cryptelo, and Rossum.ai. Find out how these startups went from a brilliant idea, to companies serving clients all over the world with cutting edge technologies.

 

Office Hours with StartupYard

20.04.2017: 13:00 – 16:00 – thehub.hu, 1061 Budapest, Paulay Ede utca 65 

21.04.2017: TBA – Mosaik, 1136 Budapest, Pannónia utca 32.

This is your chance to meet the management team of Central Europe’s leading seed accelerator for tech startups, and find out how we can help you turn your experience and knowledge of AI, Machine Learning, IoT, Blockchain, or Cryptology into a globally scaleable business. Come to find out about our program, pitch us an idea, or make a connection.

How do I meet the StartupYard team in Budapest?

There will be a few opportunities. First, we warmly invite you to join our workshops at TheHub and Mosaik, where you can hear about real-life examples of startups that have been through our program, and what they have accomplished as a result.

You can also sign up for our office hours. Because this event is happening under the umbrella of Startup Safary, you should sign up directly on their platform, and you will need to purchase a ticket on their website (tickets are just 8 Euros, and go toward organizing the events).

We will update this post when we have times for our appearances at Mosaic on April 21st.

We look forward to seeing you!