Introducing Damien Philippon from Zelros
Q: Can you introduce yourself and your startup, Zelros?
A: I’m Damien Philippon, 47 years old, the CEO and co-founder of Zelros. We began our journey eight years ago, focusing on developing technology specifically for the insurance industry, utilizing data and AI, and more recently, Generative AI. Our goal is to aid insurance companies in becoming more customer-centric and offering more personalized experiences to their clients.
We initially started in France, and most of our clientele is still based in Europe. About 18 months ago, I moved to Montreal to lead our expansion and operations in North America. Zelros is entirely specialized in the insurance sector.
Q: What inspired the creation of Zelros?
A: The inception of Zelros was primarily a technological venture. In 2012, my co-founder and I observed the emerging big data wave from North America, particularly Silicon Valley. We aimed to help European companies leverage this new technology, now known as AI and Generative AI. Our first encounters with clients in the insurance industry revealed their eagerness to use this technology, leading us to co-innovate with them to develop our platform.
In the early stages of Zelros, we bootstrapped; we didn’t initially raise any funds but instead secured real paying clients. Three years later, after achieving our first market fit, we raised our first seed round to accelerate growth in the insurance industry.
Why Plug and Play?
Q: How did Plug and Play become a part of Zelros’ journey?
A: Plug and Play interestingly entered our story. They operate with a vertical approach, having teams specialized in different sectors, including financial services and insurance. They excel at identifying their limited partners’ typical challenges and pain points, seeking startups and technologies to address these issues.
Our paths crossed when we expanded in Germany, where Plug and Play has a significant insurance hub in Munich. This collaboration extended to France, Italy, and later the US. Although Plug and Play’s decision-making center is in the US, it operates as a decentralized organization, which works effectively. It’s also worth mentioning that Plug and Play is an investor in Zelros.
How a Founder Gets In
Q: Could you describe the application process for Plug and Play?
A: Reflecting on the application process, the key aspect was aligning with the challenges identified by Plug and Play’s limited partners (LPs). In Zelros’ case, it involved aiding in creating a more personalized, customer-centric, and proactive approach for insurance customers. This alignment with the LPs’ needs was a crucial milestone.
Once accepted, Zelros became part of Plug and Play’s ecosystem, joining their database of startups. In the insurance sector, this meant being among dozens of other startups. Regularly, Plug and Play conducts innovation sessions with their LPs, typically quarterly, where they invite startups like us to pitch our value proposition to interested corporates.
Q: Did Zelros participate in the standard Plug and Play program?
A: No, we didn’t follow the normal startup program, partly due to the COVID-19 pandemic. Our interaction was different; we were integrated directly into their innovation database as an insurtech addressing the challenges of their corporate partners. Although we were regularly put in front of corporations interested in our value proposition, we didn’t partake in the typical startup program.
Investment at the Accelerator
Q: Did Plug and Play eventually invest in Zelros?
A: Yes, they did invest in Zelros, about a year later. Initially, there was some hesitation due to perceived overlaps with existing investments in their portfolio. However, they realized our distinct focus on customer engagement activities like policy sales and customer service, as opposed to other companies in their portfolio that were more focused on back-office activities like claims management.
Plug and Play decided to invest as a follower in our Series A round at the beginning of 2021. Our collaboration began through their innovation program in Germany, and eventually, one of their partners, Alireza Masrour, became a fan of our value proposition, which led to the investment decision. Plug and Play typically invests small amounts in a large number of companies as a follower investor.
Zelros’ Participation in Plug and Play’s Innovation Program
Q: Did you participate in Plug and Play’s innovation program in Germany?
A: Yes, we did participate in Plug and Play’s program in Germany, but it wasn’t a typical 12-week program with a structured pattern that all startups followed. Due to COVID-19, traditional physical acceleration programs were disrupted, leading to a shift towards virtual sessions. We were part of these reconfigured programs, which eventually led to our inclusion in Plug and Play’s database of startups.
Q: How did the program adapt to the challenges posed by COVID-19?
A: The main focus for Zelros during the program was networking with corporates, particularly insurance players, which is where Plug and Play excels. They have a vast network worldwide, and they facilitated connections with insurers in Germany, Italy, and France. The program shifted to virtual interactions due to COVID, but the primary value for us remained in being presented to corporates to pitch our value proposition and generate leads.
Mentorship and Learning Opportunities
Q: Were there mentoring sessions or other learning opportunities as part of the program?
A: Yes, we engaged in several sessions with mentors. These included valuable insights on SaaS pricing, which is particularly challenging when establishing a new value proposition. We also refined our market entry strategy for different regions like Germany, Italy, and the US. These mentorship sessions were instrumental in tailoring our approach to each market.
Q: Can you share any critiques or areas where Plug and Play’s program could improve?
A: Honestly, there weren’t significant shortcomings in the program. However, a key aspect in such programs, and the B2B world in general, is building personal relationships. Being in the database is one thing, but staying top of mind is crucial. It’s important to maintain visibility and engagement with the leaders of the program, whether it’s in Munich or elsewhere. Personal relationships play a vital role in ensuring your startup is considered when opportunities to pitch to corporates arise.
Q: What do you think is the lasting impact of Plug and Play on Zelros?
A: Plug and Play has significantly accelerated Zelros’ expansion into new markets. A prime example is our current foray into Japan. Plug and Play is essentially our gateway to the Japanese market, introducing us to major Japanese insurance companies. This connection is invaluable, as it would have been challenging for us to penetrate this geography otherwise. While Zelros’ success is not solely attributable to Plug and Play—we have other partnerships, like with Microsoft and Capgemini—their contribution has been substantial in our growth.
Q: Has Plug and Play prepared you for future milestones, like expanding into new markets like Japan?
A: Absolutely. Japan is a testament to this preparation. Although we don’t have any clients there yet, we are likely to secure one in 2024, which can be directly linked to Plug and Play connecting us with the right people in Japan.
Advice for Aspiring Plug and Play Applicants
Q: Do you have any advice for startups looking to apply to Plug and Play or similar accelerators?
A: First, thoroughly check their website. Plug and Play openly shares the challenges their corporate partners face, focusing on scouting startups that can meet these specific challenges. They’re not about innovation for innovation’s sake. My second piece of advice is to build intuitive personae relationships. Face-to-face interactions with the right decision-makers at Plug and Play are crucial. It enhances your visibility and increases your chances of joining their innovation forum.