If you noted the trends that have caught the attention of 20 Warsaw-focused investors who replied to our current surveys, automation/AI, business SaaS, cleantech, health, remote work and the sharing economy would top the list. These VCs said they are seeking opportunities in the”digital twin” area, proptech and broadened blockchain tokenization inside industries. Investors in Central and Eastern Europe are normally looking for the very same things as VCs based somewhere else: start-ups that have a special worth proposal, capital effectiveness, determined groups, post-revenue and a distinct market niche. Out of the accomplice we spoke with, a number of told us that COVID-19 had not yet considerably transformed how they do business. As Michał Papuga, a partner at Flashpoint VC put it,”the circumstance since March hasn’t changed a lot, but we went from extreme panic to extreme bullishness. Neither of these is excellent and I would recommend to stick to the long-term goals and not to be pushed. “Said Pawel Lipkowski of RBL_VC, “Warsaw is at its essential point– believe Berlin in the ’90s. It’s a place to observe thoroughly. “Here’s who we spoke with for part one: Bryony Cooper, handling partner, Arkley Brinc VC
Anna Wnuk-Błażejczyk, financier relations supervisor, Experior.vc Rafał Roszak, financial investment director, YouNick Mint Michal Mroczkowski, partner, Market One Capital Marcus Erken, partner, Sunfish Partners Borys Musielak, partner, SMOK Ventures Mathias Åsberg, partner, Nextgrid Kuba Dudek, SpeedUp Equity Capital GroupMarcin
- Laczynski, partner, Next Road Ventures Michał Rokosz, partner, Inovo Endeavor Partners For the conclusion, we spoke with the following
- investors: Karol Szubstarski, partner, OTB
- Ventures Michał Papuga, partner, Flashpoint VC Michal Bachmacz
- , partner, Aper Ventures Pawel Lipkowski, partner, RBL_VC Tomasz Golinski, partner
- , CofounderZoneSzymon Janiak, partner, Czysta3.vc Bogy Skowronski, partner,
- Mitefcee.org Boris Kocot, partner,
- AIP Seed Bartosz Lipnicki, partner, Alfabeat Radek Czyrko, partner, THC Pathfinder VC Karol Szubstarski,
- partner, OTB Ventures What trends are you most thrilled about purchasing, generally?Gradual shift of
- enterprises toward increased use of automation and AI, that makes it possible for remarkable improvement of effectiveness, expense
decrease and transfer of enterprise resources from laborious, repeatable and mundane tasks to more amazing, worth added opportunities. What’s your newest, most exciting investment?One ofthe most amazing chances is ICEYE. The company is a leader
your next investment, in general?A business with distinct worth proposition to its clients, deep tech element that supplies competitive edge over other gamers in the market and a creator with worldwide vision and focus on execution of that vision. Which areas are either oversaturated or would be too tough to contend in at this moment for a new startup? What other types of products/services are you concerned or wary about?No market/sector is too saturated and has no room for development. Some markets appear to be more challenging than others due to enormous competitive landscape( e.g., food delivery, language-learning apps )but still can be the subject of interruption due to a special value proposal of a new entrant. How much are you concentrated on purchasing your regional community versus other start-up hubs(or all over )in basic? More than 50%? Less?OTB is concentrated on opportunities with links to Central Eastern European skill (without any predisposition toward any center in the region), meaning companies that utilize local engineering/entrepreneurial talent in order to develop first-rate products to complete internationally
(typically HQ outdoors CEE). Which industries in your city and area seem well-positioned to prosper, or not, long term?
What are companies you are thrilled about( your portfolio or not), which founders?CEE area is acknowledged for its substantial and highly proficient skill pool in the fields of engineering and software advancement. The region is well-positioned to build up options that take advantage of deep, special tech regardless of vertical(particularly B2B ). Historically, the region was particularly strong in AI/ML, voice/speech/NLP innovations, cybersecurity, data analytics, etc. How ought to financiers in other
cities think about the general financial investment environment and opportunities in your city?CEE(including Poland and Warsaw )has constantly been acknowledged as a remarkably strong region in regards to engineering/IT talent. Fundamental threat hostility of entrepreneurs has actually driven, for a variety of years, a more” copycat”/ local market approach
, while holding back more ambitious, deep tech chances. In recent years we are seeing a paradigm shift with a new generation of entrepreneurs taking on problems with unique, deep tech
solutions, putting focus on international growth, disregarding shallow local markets. The quality of deals has been progressively growing and currently shows top quality on international scale, especially on tech level. CEE market shows also a growing variety of startups( in overall), which is mostly driven by an abundance of early-stage capital and success stories in the area( e.g., DataRobot, Bolt, UiPath )that are successfully evangelizing entrepreneurship among corporates/engineers. Do you expect to see a rise in more founders originating from geographies outside significant cities in the years to come, with startup hubs losing individuals due to the pandemic and sticking around concerns, plus the tourist attraction of remote work?I believe that local centers will hold their dominant position in the environment. The remote/digital labor force will
grow in numbers but proximity to capital, personnels and markets still will remain the prevalent force in shaping local startup communities. Which market sections that you buy appearance weaker or more exposed to potential shifts in customer and company behavior because of COVID-19? What are the opportunities start-ups might be able to use during these extraordinary times?OTB purchases general in business with clearly defined technological benefit, making near-term and quantifiable difference to their consumers (generally in the B2B sector), which is a value-add despite the market cycle.
The economic downturn works typically in favor of technological options enabling enterprise clients to increase efficiency,
cut expenses, bring optimization and change manual labour with automation– and the vast bulk of OTB portfolio fits that description. As such, the majority of the OTB portfolio has not been heavily impacted by the COVID pandemic. How has COVID-19 affected your investment strategy? What are the greatest worries of the creators in your portfolio? What is your recommendations to start-ups in your portfolio right now?The COVID pandemic has actually not impacted our financial investment strategy in any way. OTB still pursues distinct tech chances that can offer its consumers with instant worth added. This sort of technique provides a reasonably high level of strength versus economic declines(obviously, sales cycles are extending but in general sales pipeline/prospects/retention stays undamaged). Liquidity in portfolio is constantly the primary issue in uncertain, difficult times. Lean technique needs to be reestablished, business require to preserve money and keep enhancing– that’s the only way to survive the crisis.
Are you seeing “green shoots” relating to revenue development, retention or other momentum in your portfolio as they adapt to the pandemic?A fine example in our portfolio is Segron, a company of an automatic screening platform for applications, databases and business network facilities. Software development, deployment and maintenance in enterprise IT community requires constant and extensive testing procedures and as such a great deal of manual heavy lifting with highly skilled engineering skill being included (which can be utilized in a more productive method in other places). The COVID pandemic has kept engineers house (without any ability for remote testing )while driving need for digital services(and as such need for a trustworthy IT environment). The Segron automated framework enables full automation of business screening leading to increased performance, cutting operating expense and offering business clients assurance and a good night’s sleep regarding their IT infrastructure in the challenging financial environment. What is a minute that has provided you hope in the last month or two? This can be professional, personal or a mix of the two.I stay impressed by the unshakeable decision of several founders and their teams to overcome all the challenges of the undesirable financial community. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.