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Go East: Central and Eastern European Startups Scenes

When it comes to the startup scene in Europe, London and Berlin may be the best known, but like the industry itself, everyone’s on the hunt for the Next Big Thing. In Central and Eastern Europe, though, it’s not just one Big Thing—cities from Budapest to Bucharest and from Krakow to Moscow are hotbeds of activity for promising new companies. Even within countries, it’s common to find several startup clusters; Poland, arguably the startup leader in Eastern Europe, has seen new ventures spring up in Warsaw as well as Krakow and Poznan.

Regardless of where you go, startups are hard at work inventing the future. According to Tomasz Czapliński of LMS Invest, what sets it apart is that the region boasts “really open-minded people who are now learning and trying to start their own business; who think in unconventional way in terms of ‘old’ businesses.” As founders and developers often come from an engineering background, typically working at large companies before striking out on their own, startups are more focused on technical solutions rather than the social and mobile companies that are so popular in the US. Startups also have an advantage in that although their employees are highly skilled, they are still less expensive than their competitors in Western Europe.

Several companies, including Prezi from Hungary, Parallels from Russia, and a little calling service you may have heard of from Estonia have already found international success, and the formation of networks and incubators is certain to lead to greater achievements in the near future. Of course, as the startup culture is still relatively new to the region, entrepreneurs face several challenges:

  • Funding: Although companies have attracted foreign investment, funding is lacking, so it’s essential to build up strong domestic VC firms
  • Expanding: Founders must think internationally from the beginning or risk getting stuck in a mid-sized market
  • Recruiting: Young people have traditionally opted for secure jobs in government and the corporate world; failure must be made culturally acceptable

CeBIT may have ended for 2013, but as the founders and investors of startups in Central and Eastern Europe will attest, these first steps are only the beginning. As Czapliński noted, the most important thing to know about the region is that it’s full of “people still looking for solutions that make their lives easier.”

Our thanks to Tomasz Czapliński for the interview.

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Thomas Ohr: “More European entrepreneurs have realized the opportunity to create for international markets”

Thomas Ohr - founder and editor of EU-Startups

Thomas Ohr – founder and editor of EU-Startups

Thomas Ohr is the founder and editor of EU-Startups, an online magazine covering European startups. He started the project in 2010 due to his passion for startups and his excitement for Europe’s future. Since EU-Startups is still a hobby, he works in the marketing department of a German media company. Thomas Ohr works and lives in Freiburg, Germany.

Janina Benz: What is EU-Startups, and what inspired you to start it?

Thomas Ohr: EU-Startups is an online magazine covering Internet and mobile startups out of the European Union and the European continent. Aside from our focus on young companies, we also profile established firms or publish other news out of the tech space that has a commercial or cultural impact on European startups. Our vision is to connect the European startup scene and to encourage entrepreneurship within Europe.

JB: Over the last few years, how have people’s ambitions changed in regards to founding a business?

TO: More and more European entrepreneurs have realized the opportunity to create products not just for their home market, but for international markets. This is an important step which will lead to us soon seeing more and more European startups that succeed on a global scale.

JB: What unique strengths does the European market have, and how can startups benefit from them?

TO: To be honest, there is no real “European market” yet. Companies that operate in many different European countries still have to deal with many different languages, laws, and currencies. But it’s slowly getting better. There are also very few benefits for entrepreneurs building their startup in Europe unless they’re in hubs like London, Paris or Berlin. One benefit of building a startup in Europe, though, is that we (Europeans) know our markets better than American or Asian competitors. And since many American startups tend to expand to Europe very late, this gives European companies a head start.

JB: Which European country do you consider the “rising star” of the startup scene?

TO: That’s a tough question. Since I don’t see THE “rising star” out there, I would argue that the startup scenes in Spain, Lithuania, and Estonia have greatly developed over the past years and are quite active now. For anyone interested, you can find a list of the  15 biggest startup cities in Europe here.

JB: How important is it for startups to provide their homepage in English?

TO: It’s pretty important when your company is targeting an international audience or customer base. But if you’re a Polish startup selling tea online and you’re only selling to customers in Poland, there’s no need for an English homepage.

JB: What do you expect to be the leading startup trends for 2013?

TO: Mobile payment and B2B mobile apps. Some people say that last year’s trends were social, local, and mobile, but I think this area is a little bit overhyped—hopefully we’re going to see less “social-media/networking-things“ in 2013.

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PATXI ECHEVESTE: “This community will be our little treasure”

Patxi Echeveste - Founder of Wattio

Patxi Echeveste – Founder of Wattio

Patxi Echeveste, founder of Wattio, is a serial entrepreneur in the fields of green energy and energy efficiency. He believes that generating green energy is less interesting than conserving it, because the greenest energy is the one that is not used. He launched his first company, a solar company, at the age of 25, right after completing a masters in Economics Engineering. Now aged 33, his second company is aimed at turning normal houses into SmartHomes with Wattio, a powerful, flexible and cost-effective solution.

Janina Benz:What makes Wattio different than other smart home systems?

Patxi Echeveste: Wattio brings you a complete solution for saving energy and managing your home in a smarter way: we master software, firmware, and hardware to make your life greener and easier. It is extremely easy, secure, flexible, scalable, open, cost effective, and cool.

JB: What’s been your biggest challenge so far?

PE: This project has taken four years of hard R&D work in order to bring a complete solution for SmartHomes to you all. But, honestly, the big challenge now is to place it in the market, and to catch the attention of the media!

JB: You’ve just launched a fundraising campaign on Indiegogo. Why did you decide to raise money through a crowdfunding platform?

PE: We wanted to recruit a unique user base. This community will be our little treasure and we want to grow with it. We will take care of their problems and love their feedback. You know, taking care of the environment and the people we love is a big task—that’s why we need this community. Of course, supporters will get great benefits.

JB: What do you plan to do with the money that you raise?

PE: The more you support us, the more products and solutions we can offer you. Apart from the electricity and comfort system, we will offer solutions in the security and health fields as well. And of course, the platform will be continuously improving and growing.

JB: Aside from contributing, how else can people get involved?

PE: Ask folks to spread the word and make some noise about our campaign! Use the Indiegogo sharing tools, get one of our running t-shirts. We will be always grateful.

JB: Thanks, and good luck!

Editor’s Note: We’ll be featuring some of our finalists on the blog in the weeks leading up to and after CeBIT, but their participation has no bearing on the contest results

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Jennifer Indovina: “It takes more than just a strong personality to deal with the startup environment”

Jennifer Indovina is a cleantech entrepreneur, political energy advisor, and TED Fellow who is currently working to spread energy efficiency initiatives worldwide. Jennifer is the CEO and Co-Founder of Tenrehte Technologies, Inc., a cleantech company that produces wireless consumer electronics products. Tenrehte’s first product is the PICOwattTM Smart Plug, an energy-saving outlet adapter that gives you remote control over the power your devices consume. The PICOwattTM Smart Plug has received international recognition, winning the 2010 Best of CES Green Product Award, as well as being featured in the New York Times, Popular Science Magazine, Treehugger.com, and BusinessWeek. Jen’s latest TED talk, Eliminating Power Poverty, can be viewed online.

Janina Benz: Tell us about your company, Tenrehte.

Jennifer Indovina: Tenrehte is a cleantech electronics company. We make energy monitoring and control products that save buildings energy. We launched the company with our first product, the award winning PICOwatt Smart Plug, at the 2010 Consumer Electronics Show, and we’ve been moving full steam ahead ever since.

JB: In 2010, you were selected as a finalist in the Best Young Entrepreneur category for the Stevie Awards for Women in Business. In your opinion, what is the most important characteristic to becoming a successful entrepreneur?

JI: Self-awareness. I think the reason why it is so rare for an entrepreneur to be part of the right team, have the right product, and find the right market at the same time, is because the leader is not self-aware. It takes more than just a strong personality to deal with the startup environment: you also have to be passionate, fair, loyal, hardworking, and honest—first and foremost, with yourself.

JB: Do you think that entrepreneurs are born or made?

JI: I think it’s both. My family has the entrepreneurial spirit; my grandfather and father were both self-starters who were a part of their own startup companies. However, I also feel that I have been made into the entrepreneur I am today by my experiences. I have experienced triumph, failure, being powerless, being powerful, and feeling truly grateful for certain customers. Only because of these experiences do I feel worthy enough to call myself an entrepreneur.

JB: When working as Director of Marketing for Vivace Semiconductor, you led international teams based in the US, South Korea, and China. How did working with an international team change your process?

JI: Working with international teams at such a young age taught me how to blend into environments, to respect differences, and how to communicate effectively—the ultimate entrepreneur’s toolbox, if you ask me.

JB: What are your big expectations for CeBIT?

JI: CeBIT is the most incredible mix of international businesses; I expect this show will introduce incredible new opportunities. I am just so excited to spread the PICOwatt love all over the world.

Editor’s Note: We’ll be featuring some of our finalists on the blog in the weeks leading up to CeBIT, but their participation has no bearing on the contest results

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Markus Schulz and Daniela Schiffer: “Everyone should know what kind of impact we have on our climate”

Markus Schulz and Daniela Schiffer are among the CODE_n13 finalists and founders of Changers, a solar charger and energy marketplace. Markus formerly ran an advertising agency where he worked for renown high tech companies in the field of renewable energy. Daniela has a background in media art and collaborated on several European and international projects before joining Markus at his agency.

Janina Benz: Congratulations on being among the 50 CODE_n finalists! What does Changers do, and what was your motivation to start it?

Markus Schulz & Daniela Schiffer: In order to be successful in our fight against climate change, awareness is indispensable. Everyone should know what kind of impact we have on our climate, how we can protect it, and how we can bring change about. That’s what Changers is about: motivating everybody to produce and use their own energy. And the best way to do this is to make that behavior measurable and reward people for doing so. So we developed a solar charger that can charge a wide range of mobile devices while counting the exact amount of energy produced and CO2 saved. The data is stored automatically and can be uploaded to our social network, Changers.com. There you can compare your achievements with your friends and the rest of the world.  And for each gram of CO2 saved, we reward our users with Changers Credits, which they can redeem for sustainable products and services.

JB: How does the Changers Marketplace work?

MS & DS: For each self-generated watt hour, you get one Changers Credit, which you can redeem for sustainable services and products on our Social Energy Marketplace—the first platform for private CO2 trading. It’s a great opportunity to get to know new innovative products, and encourage companies to make new products more sustainable. And by the way, you can even save money!

JB: What was the most challenging thing about launching your company in California?

MS & DS: The most challenging part was getting the hardware and all the logistics just in time, as we were basically doing this process in two regions (Europe and the US) at the same time. In terms of communications, we had a great PR manager who helped us create amazing buzz for Changers.

JB: What are your expectations for CeBIT 2013?

MS & DS: CeBIT is a great opportunity for Changers to be introduced to a broader audience that is interested in digital innovations. We hope to make new business contacts in the fields of hardware distributions and find new partners for our marketplace, so we can’t wait to talk to lots and lots of people there.

JB: Daniela, you’ve encouraged entrepreneurs to “try not to compromise beyond what you can do and communicate your message clearly.” Is this a problem for many entrepreneurs?

DS: I’ve found that sometimes it is counterproductive to compromise in order to get something moving; it either doesn’t help, or makes things even worse. So be very careful when to compromise! And regarding communication, I’ve been amazed how often there have been misunderstandings because it’s not clear what you want or what you expect. Say it clearly and repeat yourself often. This is something that you can use in everyday life—it helps a lot.

Editor’s Note: We’ll be featuring some of our finalists on the blog in the weeks leading up to CeBIT, but their participation has no bearing on the contest results

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Meet the CODE_n13 finalists: category cloud computing

The 50 finalists are chosen and just some weeks are left until we all meet at CeBIT for the final showdown. Meeting 50 startups from all over the globe – wow! But who are the people behind the companies? What is the entrepreneurial spirit which is motivating them?

It’s the perfect timing to get to know our finalists a bit more. Please welcome GreenQloud and GREENCLOUDS which are finalists in the cloud computing category.

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GreenQloud - Trygguvi Larusson

GreenQloud – Trygguvi Larusson

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GREENCLOUDS - Peter Zonneveld

GREENCLOUDS – Peter Zonneveld

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Ridha Azaiz: “Get your idea checked from different angles”

Ridha Azaiz is one of the CODE_n finalists and the founder of Solarbrush. He started studying at RWTH Aachen University and transferred to Technical University Berlin in order to finish his Master’s in mechanical engineering. His research and development activities have led to many awards, such as the  Clean Tech Media Award and the start up award hy! Berlin

Janina Benz: Congratulations on being one of the 50 CODE_n finalists! Could you tell us about Solarbrush?
Ridha Azaiz: Solarbrush is a robotic cleaning system for solar panels. Cleaning is very important, especially in arid regions, as generators lose up to 35% in efficiency in a single month after a sand storm. The robot has a very lean and efficient drive that attaches to the inclined panels, which distinguishes the Solarbrush robot from others. It is also very light weight and can cross the solar panels, costing just a fraction of what competitors charge. We’re pioneers in the field and were first in shifting the focus from the cleaning and maintenance of photovoltaic (PV) cells in Europe to the sunbelt countries. Where there is lots of sun, PV produces the most output but also suffers from deposits.

JB: You came up with the idea of Solarbrush at a very young age. When was the first time you thought about designing a solar panel-cleaning robot?
RA: In 1998, when I was 13, I first thought about the design of a robot that cleans solar panels. People used to call me nuts for building this robot, as the market volume was very limited back then. Anyhow, I kept on working on the robots and developed many mechanisms. This process was interrupted when there was the hype about nano coatings in the early 2000s. I found out, though, that those are not practical outdoors, and both sand and dust still remain on the solar panels. In 2007, I stopped again when the marketing chief of a German solar cell producer told me that it’s not necessary to clean solar panels as the rain washes them clean on a regular basis. But through my website, I kept getting requests for a solution, and a study from the Middle East was sent to me: they lost about 80 % in efficiency after a sandstorm and rain was very rare. Later I found out that the solar industry did not like what I was doing for marketing reasons: they claimed their modules were free of maintenance.

JB: How are you getting prepared to present at CeBIT?
RA: I’ve exhibited at trade shows before, like the Hanover Fair, Intersolar, and the World Future Energy Summit in Abu Dhabi. It was my first trade show in a foreign market but my Solarbrush robot was very well received. When preparing for the trade show I had to put thoughts into the design of the booth so I could make it fit in a suitcase when disassembled. It had to be light weight and meeting requirements for air travel. Besides my booth, my pitch is ready as well: I have been taking part in the hub:raum accelerator program and did exercise to present my business on a weekly basis.

JB: What are you looking forward the most at CeBIT?
RA: Networking—I am looking for a programmer that can contribute to further developments such as the navigation of the robot. Second, I am very keen on winning the CODE_n award!

JB: What is the most important piece of advice you can offer other young entrepreneurs?
RA: When I was very young, I didn’t question it when the head of marketing from the German solar company said no one would need a robot. I thought, “He has a PhD and is probably right.” Today I know that his opinion was biased. You should get your idea checked from different angles and point of views. Plus, always keep the business development part separate from the technology development—that way, you do not give away your core. Keep it lean! Company consultants and lawyers might scale the business way too big way too early, and that will burn money if things do not work out.

Editor’s Note: We’ll be featuring some of our finalists on the blog in the weeks leading up to CeBIT, but their participation has no bearing on the contest results.

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Brian Moffat: “It’s possible to transform the world we know”

Brian Moffat is one of the CODE_n13 finalists and the founder of Spindrift Energy, a device that produces energy from the motion of waves. Brian has been joined by a team of professionals who share his conviction that the Spindrift Energy device will deliver truly affordable renewable power to the world. Before founding Spindrift, Brian Moffat worked for Disney Imagineering and Google; Google is currently patenting one of Brian’s inventions. He received three undergraduate degrees from the University of California at Irvine, in the fields of computer science, chemistry and biology.

JB: What was the idea behind Spindrift Energy?

BM: After studying existing alternative energy technologies, I realized that many were quite limited in one way or another. The most popular—wind and solar—are intermittent and somewhat unpredictable. And very few are cheap enough to compete with fossil-fuel alternatives without generous government subsidies. The energy in the waves traveling across the deepest parts of the sea seemed to be the optimal target for energy extraction for several reasons. Being far from shore, such deep-sea wave-energy devices would not conflict with the recreational, commercial and aesthetic needs of coastal communities. So I set out to invent a cheap and simple renewable energy technology that could operate in the deep sea for 20 or 30 years with little, if any, maintenance.

JB: When it comes to renewable energies, many people immediately think of solar power. What are the advantages of ocean-wave technology?

BM: Ocean-wave energy is stable and predictable. The wave environment at any particular location tends to change very slowly over long periods of time. And it is usually possible to accurately predict the amount of wave energy that will be available at a particular location 24, and even 48, hours in advance – making it possible for coastal utilities to confidently plan their energy budgets and to rely on scheduled ocean-wave energy contribution. Furthermore, ocean-wave technologies, especially those that operate far from shore, don’t displace people from land that could otherwise be used for homes or parks.

JB: Before founding Spindrift, you worked for Google and Disney Engineering. How has that experience influenced your current company? 

BM: Disney Imagineering showed me that it’s possible to transform the world we know into one that appears to defy all limitation when rock-solid engineering is combined with a fearless imagination. And Google showed me that the right combination of “imaginative courage” and common sense is required to turn a great idea into a great product or service.

JB: Which countries do you think are most attractive for your product, and why? 

BM: At the moment, I believe that Japan is the most attractive venue for an initial deployment. Without the power originally supplied by its extensive network of nuclear reactors, Japan will need new sources of baseload energy. And the waves that characterize Japan’s eastern coastal seas are excellent energy resources.

JB: How are you getting prepared to present at CeBIT?

BM: I’d like to say that I’m learning to speak German, but that might be too ambitious! I believe that I’m ready to explain our technology, our goals, and to answer anyone’s questions. I’m looking forward to it!

Editor’s Note: We’ll be featuring some of our finalists on the blog in the weeks leading up to CeBIT, but their participation has no bearing on the contest results.

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