Introducing Oleg Demidov from Carbon Space
Q: Could you briefly introduce yourself and your startup?
A: I’m Oleg Demidov, the Chief Innovation Officer and Co-Founder of Carbon Space. Our startup is the next generation of carbon footprint monitoring platforms, specifically tailored for food supply chains. We started with the vision of creating something akin to a global Google Maps for carbon footprints. After exploring various industries, we chose to concentrate on the food sector due to the high level of uncertainty and limited visibility in this area. Our space-based capabilities are particularly valuable for the extensive scale of food supply chains. As a result, we’ve evolved into a specialized tool for monitoring carbon footprints within the food sector. I believe we currently offer a cutting-edge solution in this field.
Q: What inspired the creation of Carbon Space? Did your personal life influence this idea?
A: Actually, my journey to founding Carbon Space didn’t stem from any personal life event. It began after I exited my previous startup in 2018. I was considering my next venture and was particularly drawn to space and sustainability – two topics I’m passionate about. The concept of tracking carbon emissions from space seemed like a natural and obvious choice. The rationale was straightforward: to effectively combat global climate change, we need a deep understanding of its origins and causes. This understanding starts with being able to measure the carbon footprint accurately. If we can’t measure it, managing it becomes a challenging task. Therefore, we focused on developing precise measurement techniques as our starting point.
Why Rockstart?
Q: Why did you choose Rockstart for your startup?
A: Initially, when we were starting out, we were exploring various sectors including oil and gas, maritime, and the food sector, which was among our top considerations. Interestingly, Rockstart discovered us through LinkedIn. They have an excellent scouting program, and after a number of conversations, it became clear that they could offer significant value in customer discovery, especially in the food sector. After this engagement, we firmly decided to focus on the food sector, having confirmed its necessity. The role of the accelerator was pivotal in this decision; it helped us pivot and hone in on this specific niche.
The Rockstart Application Process
Q: Can you describe the application process at Rockstart?
A: The application process at Rockstart, as I recall, started with a fairly typical application form. However, the most crucial part was the selection process that followed. Once we cleared the initial threshold, we engaged in several interviews with Rockstart’s mentors. This mentor network is notably diverse and, in my opinion, one of the best in Europe. We interacted with around five to six mentors. These interactions were two-way; they interviewed us, and we also had the opportunity to interview them. This experience was invaluable as it showcased the breadth and depth of Rockstart’s network. The conversations with the mentors were insightful and productive, indicating a strong alignment and good match between our needs and the accelerator’s offerings.
A Day in the Life at Rockstart During COVID
Q: Once accepted, what was a typical day like in the Rockstart program?
A: The Rockstart program was quite intensive, especially considering it coincided with the COVID-19 pandemic, so it was conducted online. Typically, we had about three to five sessions daily. The sessions varied in content; some were extremely useful, while others were more basic but still offered value. A key aspect was our weekly interactions with mentors. We worked closely with a couple of mentors, and one even became our equity advisor by the end of the program. Despite being online, the program tried to maintain an exciting and engaging atmosphere. There were quizzes and some social activities, as much as possible given the limitations of the pandemic.
Q: Do you think the COVID-19 situation detracted from the program’s effectiveness?
A: That’s a great question. Indeed, physical presence has its benefits, such as faster and more personal networking opportunities. However, being onsite also comes with distractions like commuting and attending various events, which might reduce working time and shift focus more towards networking. The online format, on the other hand, allowed for more focused sessions with mentors and efficient networking, albeit virtually. So, while there were advantages and disadvantages to the online format, the key element we missed was the physical interaction that usually comes with such programs.
Funding and Impact of the Rockstart Program
Q: Did you receive funding as part of the Rockstart program?
A: Yes, we received funding of 100,000 Euros. The equity percentage given in exchange was around 6-7%.
Q: Reflecting on the program’s impact on your business, what makes it worthwhile? Would you participate in it again?
A: I would definitely choose to participate in Rockstart again, knowing the results we achieved. The program provided a combination of valuable outcomes. One significant aspect was the network; we managed to accomplish customer discovery in three months, a process that would typically take six to twelve months without such a program. We had excellent mentors, one of whom became our advisor and is effectively part of our team. Another key outcome was the introduction to an investor for our next funding round, which was crucial from an investment perspective. Even now, we continue to receive active support and introductions from the Rockstart network. The ecosystem is incredibly friendly and supportive, making the program immensely beneficial for us.
Challenges Faced During the Rockstart Program
Q: During the Rockstart program, did you encounter any challenges, and how did you overcome them?
A: Yes, we certainly faced challenges, with the primary one being the increased workload. Participating in the program required dedicating many hours to its activities, in addition to running our business. This significantly intensified the amount of work we had to manage. However, since most of the activities in the program were useful and contributed positively to our goals, the extra effort was definitely worth it. Balancing the demands of the program while maintaining business operations was challenging, but the benefits we gained made it a worthwhile endeavor.
Q: Do accelerators focus enough on leadership skills?
A: Leadership is an aspect that’s often underestimated. Rockstart did have some sessions on leadership, which were very important, especially for technical founders. Although these skills might seem intangible and less appealing to those more focused on product development, they make a significant difference. Being able to motivate a team and maintain high energy levels is crucial not just within the team but also for investors and customers. It’s a critical component of success, particularly for those who are more inclined towards technical aspects and may not naturally value the human side of running a business as much.
Current Status and Growth Trajectory of Carbon Space
Q: Can you update us on the current status of Carbon Space and its growth since completing the Rockstart program?
A: Since completing the Rockstart program, Carbon Space has experienced significant growth. We’ve successfully raised 2.3 million Euros to date. Our Annual Recurring Revenue (ARR) has reached around half a million Euros, and we are currently gearing up to raise an additional 3 million Euros in the near future.
Our focus has been primarily on food supply chains, especially those involving tropical foods. This is largely due to the European deforestation regulation, which is creating a high demand in this area. Our carbon data offers a dual opportunity for food companies. Firstly, it enables them to report in compliance with the upcoming regulations – there are three to five major regulations regarding mandatory carbon footprint reporting set to be enforced from 2024. Secondly, our certified data not only helps companies comply with these regulations but also allows them to earn carbon premiums. If companies perform well in managing their carbon footprint, they can command a premium for their commodities. This approach helps them not only to meet regulatory standards but also to generate additional revenue through proactive climate actions within their supply chains.
Future Milestones and Preparation by the Accelerator
Q: What are the next milestones for Carbon Space, and how has the accelerator prepared you for these?
A: Our major financial target is reaching 1 million Euros in Annual Recurring Revenue (ARR), which we aim to achieve by next year. We plan to maintain our current growth trajectory to reach this milestone. From a product perspective, it’s crucial for us to enhance visibility across the supply chains we work with. We’re focused on providing detailed insights into the overall carbon performance of different plants, including their average performance and potential areas for improvement.
To facilitate this, we’re developing an import registry to track the carbon footprint of various suppliers. This tool will enable food players to select and incentivize the best suppliers and effectively implement Climate Action Smart Effect. The accelerator has played a significant role in preparing us for these milestones. It has helped us refine our focus, streamline our operations, and develop strategies that align with our long-term goals. The insights and mentorship received during the program have been instrumental in setting these milestones and equipping us with the necessary tools to achieve them.
Advice for Aspiring Accelerator Applicants
Q: What advice would you offer to anyone looking to apply to Rockstart or any other accelerator?
A: For startups in the pre-seed Agri-Food stage in Europe, Rockstart is probably the best program to consider. The key is to fully utilize the network and the program’s resources, as it pays off significantly. Regarding other accelerators, finding the right fit and chemistry is crucial. Without this, it’s challenging to extract the most value from the experience. The relational aspect is just as important as the technical side.
Q: Is the relational aspect more important than the idea itself in these programs?
A: The idea is still important, but I’d say it constitutes about 10% of overall success. The team’s strength and resilience are far more critical. A persistent and well-supported team can pivot and adapt, leading to success even if the initial idea isn’t perfect.