How OneMarket is Transforming the Logistics Industry
Q: Can you share the background of your company?
A: Our company, OneMarket, operates in the logistics industry. We noticed a significant challenge in the global logistics trade, primarily related to trust issues. The industry involves large sums of money, service delivery concerns, and complexities in money transfers from one party to another. What intrigued me the most was the fact that many cargo ships, which can carry up to 18,000 containers known as TEUs, often depart with a substantial percentage of their capacity unfilled, sometimes even empty.
Q: What motivated you to address these issues in the logistics industry?
A: As a former currency trader, I couldn’t ignore the inefficiency of this system. I believed that what was needed was an efficient marketplace, essentially an exchange that could establish trust between buyers and sellers. Our platform ensures that the funds deposited by the buyer are only transferred to the seller once they’ve fulfilled their services. We transformed ocean container freight into a tradable asset, aiming to tackle the problem of ships sailing with significant space.
Why Antler?
Q: What motivated you to join an accelerator program for your startup?
A: Raising capital was a significant challenge, especially in the context of Silicon Valley. In Silicon Valley, trust is a major factor in investment decisions. If investors don’t know you, it’s often seen as a red flag. They typically invest in individuals who are clear about what they want. Despite my efforts to break into this circle, it was tough. After spending around 16 years in California, I returned to Denmark. Then COVID hit, and everything came to a standstill. This pause gave me some time to reflect and explore new opportunities.
That’s when I applied to Antler, a global early-stage VC. That year, they had an overwhelming number of applicants, around 50-60,000, and they select less than 1% of them. It’s a process where you need a blend of luck and skill to get through. In my case, I believe luck played a significant role in my acceptance. This experience taught me a lot about the intricacies of raising capital and the importance of networking and establishing trust in the venture capital world.
Q: How much effort did you invest in the application process for Antler?
A: I gave it everything I had, just like when you’re on stage, you have to pour your heart and soul into it. You need to show your passion and drive, as the startup journey is far from easy. Antler, like many others, looks for that unwavering commitment. When things go awry, which is quite common in the startup world, you have to find that inner strength. Personally, I get more energized when I face rejection from a client, for example. It’s all about resilience and determination.
Funding and Mentorship at Antler
Q: What does Antler’s program look like?
A: Antler’s program is an intensive and immersive three-month journey. It begins with a cohort phase, where participants are brought together to explore, ideate, and collaborate. This phase culminates in presenting to the investment committee for potential funding. The structure is designed to significantly increase the odds of success, especially considering the critical nature of securing that initial investment. What sets this apart from personal funding is the credibility and resources that come with professional VC backing.
The program is like a mini-MBA, packed with activities that push participants to their limits. You’re grouped with diverse individuals, challenged to come up with business ideas, conduct market research, and pitch within tight deadlines. It’s a real test of adaptability and teamwork, with Antler observing and evaluating your interactions and responses under stress. This process includes daily webinars featuring experts from major companies like Google, providing insights and answering questions.
The schedule is demanding – it’s a full-time commitment from 9 to 5, but often extends well into the night, especially when refining business plans and ideas. This can be particularly challenging for those with families or other responsibilities. The program requires financial preparation too, as there’s no income during these three months, though a small stipend is provided mid-way. It’s a rigorous, yet incredibly rewarding experience, likened to a matchmaking process for entrepreneurs. The goal is to form teams, develop ideas, and refine pitching skills for the final presentation. This intense environment forces you to be concise and precise, honing your ability to communicate complex ideas quickly and effectively.
Q: Beyond the financial investment, what were the most significant benefits you obtained from the Antler program?
A: The program offered invaluable benefits beyond financial support. Firstly, it provided us with a wealth of experience, wisdom, and opportunities to learn. Access to their extensive network was a game-changer. They have a repository of advice and experts on their website, which is incredibly valuable. While the number of advisors may have changed over time, I can share a specific example. When we were gearing up to launch our product, I realized there were key areas, like branding and marketing strategy, where we needed expertise.
Q: How did Antler assist you in finding experts in critical areas?
A: I reached out to Julia, one of our portfolio managers in Copenhagen, expressing the need for an expert in branding and marketing strategy. Remarkably, within just 24 hours, she connected me with a knowledgeable individual in Denmark who could assist. There was also Sameer Singh from India, an expert in network effects, who was incredibly insightful. We needed advice on leveraging this mechanism and staying competitive. Access to such experts was a remarkable benefit of the program.
OneMarket Current Status
Q: Can you provide an update on your company’s current status following the Antler program?
A: We recently launched the supply side, and we’ve recently onboarded the last demand side buyers. The upcoming week holds much promise for us. Starting a marketplace is a tricky endeavor, and it’s crucial to have a balanced ratio of buyers and sellers. It’s been incredibly exciting, with a mix of nervousness and anticipation. You wonder, “Will it work?” We’ve been testing and refining our platform for months. In a marketplace, it’s essential to start with a small, closely-knit community of users, both on the demand and supply sides. This allows us to understand their needs, build relationships, and address any potential issues.
Q: What surprises or unexpected outcomes have you encountered since launching OneMarket?
A: One of the pleasant surprises has been the extent of savings we can provide to our clients. In a near-perfect market, where sellers are aware of the reduced risks, the savings can be significant. We’re continually learning and evolving, and we’re not yet where we envision ourselves heading. The more buyers we onboard, the more it will help create a better marketplace. Additionally, navigating regulations has been a complex challenge, and having a legal expert on board has been crucial for ensuring compliance and success in this global venture.