MIT Enterprise Forum: Poland Part 2-the Winners & Demo Day

The MIT Enterprise Forum: POLAND

Part 2 the Winners and Demo Day

After many weeks of completing tasks, assignments, meeting with mentors via skype or email or social media the information was compiled and processed. The 25 start ups were competing for the final 8. These 8 companies were awarded a week at Start Up Boot Camp at MIT Enterprise Forum in Cambridge Massachusetts. Each company sent one or two representatives. These lucky 8 are:

2040.io

MST Medical Simulation Technologies

InnovaLab

Nudelta

Predictail

Vortex Oil

SensoriumLab

Waywer

After a week in Boot Camp, their mettle was tested on the MIT Enterprise Forum community during what could be called Polish Demo Start Up week. Three events over the course of one week. Demo Day, Start Up Networking Night and the Start Up Luncheon. The first event, Demo Day on June 27, 2017 was open to the MIT Forum Community, mentors and the Polish American community in metro Boston which included dignitaries, business people, students, etc. The remainder of this blog will focus on 5 of the 8 since these were the companies I got to get to know during Start Up week.

The week kicked off with Demo Day reception at the MIT Media Lab. Our host and moderators for the evening’s events were the MIT Technology Review. The first event after a networking mixer was a VC (Venture Capitalist) and Founders Panel discussion moderated by Elizabeth Woyke the Business Editor of the MIT Technology Review. The panel was comprised of Eveline Buchatskiy, managing partner of One Way Ventures (formerly of the Ukraine). Dr. Monika Weber, CEO and founder or Fluid-Screen (of Poland/US) and Tad Witkowicz the Managing Director of Otago Capital ( of Poland/US). Each of the panelists gave their own Pitch. Dr. Weber is a superb success story of a Polish scientist who achieved greatness in the US. After getting her PhD from Yale, she has created her own electronics/biotechnology manufacturing. She truly is an inspiration for these Start Ups. An entrepreneur in her own right through dedication and sacrifice she has successfully manuevred the  world of grants and investors. Tad is a Polish ex-patriot who has been in the US nearly 30 years and is now a venture capital supporting Polish entrepreneurs amongst others in his roster. Eveline, also an ex-patriot but from the Ukraine worked in her home country as a venture capitalist until the revolution in Kiev forced her to emigrate abroad.

The core of the Panel discussion was ‘what should Polish Start Ups do to expand their market and emerge as competitive companies on the world stage’. The two opposing points of view were spoken by tad and Eveline. It was Eveline’s direct notion that all Polish Start Ups should emigrate to the US and leave Poland behind. In her opinion the wealthy venture capitalists are in the US and the Poles need to be here in the US to take advantage of proximity an accessibility to the US and World Market. This view is by an individual who has not spent any significant time in Poland working with Polish businesses but rather of an individual who lost her success in her home country that imploded from political revolution. Where the business climate became as hostile as the political climate where refuge can be taken in the West. Without direct experience with the Polish business culture/environment/customs/successes/failures, this advice was inappropriate to Start Ups who are looking for advice that is drawn upon not just Polish but worldwide experience. A disheartening statement from a Nomad, a person without a country who has no connections to the success Poland has made on the world market already. A disingenuous statement from a Nomad who uses a general blanket statement of one size fits all. This unfortunately will never apply to a culture rich and diverse as Poland’s with her deep customs, uniqueness and phenomenal contributions to Science, Art and Culture. It fiscally is not sound advice to tell someone(s) to sell off all their assets and head for the American frontier without any experience with American Business or Culture. It is true that many people abandon their countries for a new life in the US with little more than a few dollars in their pocket. The American Dream is still a very hot and seductive commodity that we Americans export. For these people, their risk of loss is financially tied up. In other words, they have nothing to lose by going to the US because they left their own country with very little. These Start Ups are fledging business. Some with successes already with government grants or investors. The European Union gives substantial amount of Euros in grants to Start Ups like these companies. The Polish government also invests in its own Start Ups too. Therefore they got ‘a leg up’ and this Boot Camp in the US is to jump start, a jolt of American Business know how to help them expand and to grow.

The opposing point of view was from Tad and in summary ‘sure come to the US if you can but there is no reason to leave Poland if you can find investors here in the US or other countries’. That is spoken like a true Globalist and direct opposition to Eveline’s dictate. By having Polish Start Ups remaining in Poland they reap rewards on many levels. 1. The revenue generated and taxed stays in Poland (not the US) 2. It keeps the uniqueness/the patents of the technology within Poland and thus draws prospective buyers and investors to Poland which in turn benefits from the uptick in business (and not centralizing it to the US) 3. Poland becomes a gravitas for new industries making it increasingly competitive on the world stage (not the US stage) thus raising Poland’s status in the global market. Truly Tad’s words were far more inspirational and influential as it came from a Pole who is a success story in the American market but who has not lost touch with his roots and culture.

One of the main points of a global economy is that you can have a business located anywhere and work from anywhere because your clients are everywhere. This is a generalization but a fact. There is always contentious talk of import economy versus export economy. Would Poland not want to export its products and industry and increase the value of its economy and currency? Look at Italy as an example. It’s pretty much an export economy mixed with a tourist economy. They export all their major money makers abroad and are known for their Leather, food, fashion, wine and much more. Poland should and can make its mark on the world stage by exporting like Italy does. STAY in Poland is what Tad said. STAY in Poland is what I agree to. These Start Ups can learn much from travelling abroad to the EU and the US, draw investors and sales people from the US in particular who have first hand knowledge of how the market works. I hasten to add the more savvy these Polish Start Ups are with US culture and business the better the chance they will be at making the sale.

It’s true that the detriment for any foreign startup is the language barrier. As Poles are taught the Queen’s English and not American English. There are differences between the two. Americans are a bit stolid and think their English is dominant on the world market. It would be best for these Start Ups to get their American Language skills fine tuned. Something a Boot Camp like this one by MIT allows. The lucky 8 made their pitches to the audience. Some were extremely polished with a strikingly good command of English. Others struggled through the nervousness of speaking in front of a crowd in a language they are not native too. All were extremely knowledgeable on their topics. The stand outs for me were Predictail, Waywer, 2040.io. From a strategic point of view, Vortex Oil was far too established as a business and this Boot Camp was not necessarily something to learn from but rather be exposed too. Innovalab, Sensoriumlab and MST have the most to benefit from in this Boot Camp as their medical devices are innovative and could be a lucrative business in the Boston Market which is saturated with many biotech, medical device firms and hospitals. They need to take their pitches to local companies which they could partner with. Nudelta is not prepared for the US nor EU market as their product is only available in the Polish language and thus will not draw much enthusiasm from US investors. Out of the 8 they were sophomores in a class of seniors and one graduate level. I see optimistic results for Waywer, 2040.io as they are software based programs/apps specifically geared to mobile devices. While Predictail is much like the behind the scenes company, that is to say their product once fully vetted could save industries incredible amounts of money in energy efficiency, maintenance and longevity of mechanical devices. Their product has one of the greatest potential amongst the 8.

My mentees Zieta did not win the final round and get to come to the US. But I am very impressed at their understanding of American Business and slang which comes in handy talking to the average American. Not everyone can win a spot. The best of the best were picked and there can only be the 8 winners.

Next Blog: How was their Pitch, the Polish Start Ups up at bat!

More information can be found at:

www.mitefpoland.org

www.mitef.org

www.technology review.com

As always, views expressed in this blog soley belong to the author and not to MIT or its affiliates. Blog was corrected to note MIT Enterprise Forum instead of just MIT. The MIT Enterprise Forum is an organization affiliated with the MIT Technology Review (29Aug17)