Introducing Frederik and BeCause
Q: Can you introduce yourself and your startup?
A: I’m Frederik Steensgaard, the CEO and co-founder of BeCause. Our startup serves as a sustainability management hub specifically designed for the travel and hospitality industry. Essentially, what we do is unify and automate sustainability data and workflows. This encompasses hotels, marketplaces, certifiers, and other players within the travel and hospitality ecosystem, all of whom require sustainability data for various purposes.
As we’re seeing an increasing demand for sustainability from stakeholders at every level—whether it’s employees, consumers, or investors—we step in to streamline and automate the handling of all these data needs. This effort simplifies the processes related to sustainability for companies, making it easier for them to manage and report on their sustainability initiatives.
To give you an idea of our impact, we’ve already onboarded more than 25,000 hotels. These establishments relay their sustainability data through BeCause, from their suppliers and internal operations to certifiers who award them with eco-labels. Additionally, this information reaches over 30 of the biggest marketplaces, including big names like Booking.com, Google, EasyJet, and TripAdvisor, which we’re thrilled to have as customers and partners.
Q: How did you come up with the idea for BeCause?
A: The inspiration for BeCause traces back to my childhood experiences. Growing up in Oman, attending an international school alongside students of over 100 nationalities, I learned about the profound similarities that bind us despite our diverse backgrounds. This early exposure to cultural diversity and the stark realities of world events, particularly the aftermath of 9/11, ignited my desire to contribute to social sustainability. My travels and witnessing the degradation of coral reefs firsthand due to climate change further fueled this passion from a very young age.
Fast forward to my professional life, where I worked in a management consultancy focusing on CSR, IT, and sustainability. It was here that I met Jonas, my co-founder and CTO, who shared my frustrations regarding the slow progress in sustainable development. Together, we identified a market and economic failure in the sustainability sector—despite the widespread demand for sustainability, the supply was fragmented and inefficient.
Drawing from our experience in building enterprise system landscapes in the IT world, we envisioned a unified platform that could address these challenges. We realized that most companies were attempting to manage their sustainability efforts in isolation, disconnected from the broader ecosystem they were part of. By creating a hub that consolidates and automates sustainability data for all stakeholders simultaneously, we could facilitate a more efficient and effective approach to sustainability. This would not only help companies comply with sustainability standards but also compete better in this critical area. Our bet on this vision turned out to be the right one, setting the foundation for BeCause.
Why BeCause Chose the Alchemist Accelerator
Q: What motivated you to join the Alchemist Accelerator?
A: Joining the Alchemist Accelerator was a strategic decision driven by the desire to surround ourselves with a homogeneous group of startups. The affinity among like-minded peers in the accelerator enables us to learn from each other in a way that a generic accelerator, which encompasses a broad range of industries, simply cannot offer. This focused environment is especially beneficial for startups that share a similar business model and target clients, like ours.
Another compelling reason for our choice was the specificity of investors that Alchemist attracts. The accelerator predominantly draws investors interested in B2B enterprise startups, making it a fertile ground for finding relevant and potentially willing investors for our kind of startup. This focus extends to the mentors and the program curriculum, offering access to individuals who have decades of experience in our specific space. Such specialization allows us to engage in more relevant discussions and gain insights that are directly applicable to our business.
Additionally, one aspect that stood out to us about Alchemist was its reported success in securing follow-up investments for its startups, supposedly outperforming even renowned accelerators like Y Combinator. While I haven’t delved deeply into verifying these claims, the mere suggestion was impressive and played a role in our decision.
Lastly, as a startup rooted in Copenhagen but eyeing expansion into the U.S. market, Alchemist represented an invaluable opportunity for international growth. It provided a gateway to Silicon Valley, helping us establish a network and gain legitimacy in a critical market for our future endeavors. This strategic move was about setting the stage for our expansion and dipping our toes into the waters of one of the world’s leading tech ecosystems.
The Alchemist Accelerator Application Process
Q: Can you describe the application process for Alchemist Accelerator?
A: The application process for the Alchemist Accelerator was multi-staged and quite comprehensive. It started with an initial application that included both a written component and a video submission. Following that, we were invited to present our startup and participate in a Q&A session with a jury, which was an opportunity to dive deeper into our business model and the impact we aimed to create.
The next significant step involved a meeting with Ravi Belani, the CEO of Alchemist. This wasn’t just another Q&A; it was a chance to genuinely understand the accelerator’s culture straight from the top. I appreciated this part of the process as it revealed the accelerator’s familial atmosphere, contrasting with a more conventional, perhaps overly professional approach. This meeting also allowed us to discuss the specifics of the offer, including the funding that accompanies acceptance into the program.
Q: Do you remember how long this process lasted?
A: The entire process, from the initial application to the final acceptance and sorting out the legal aspects, lasted about one and a half months. This timeframe included all the steps mentioned, culminating in mutual acceptance into the accelerator.
Q: What do you believe set your company apart to get accepted into the Alchemist Accelerator?
A: For starters, having Fortune 500 companies as our customers, along with a functioning MVP (Minimum Viable Product) and being part of the market-making trend in sustainability, presumably contributed to our appeal. Moreover, the holistic composition of our team must have been a significant asset. That being said, it’s also worth mentioning my reflection on the timing of our application.
Although we benefited immensely from the accelerator, I believe there might be an optimal stage for startups to join such programs—slightly earlier than where we were at the time. This isn’t to say we didn’t gain a lot from the experience, but joining at an earlier stage might have amplified the accelerator’s value for us, potentially accelerating our journey from concept to market readiness more efficiently.
Inside the Alchemist Accelerator Program
Q: After getting accepted, what does the Alchemist Accelerator program entail?
A: Once accepted into the Alchemist Accelerator, participants should expect to dedicate two to three days each week to the program, which blends online learning with in-person events. Although much of the program is accessible online, there are two summits held in San Francisco that require physical attendance, offering a valuable mix of remote and in-person engagement. The program structure includes a variety of lectures and workshops, with preparatory homework and follow-up exercises designed to deepen participants’ understanding and application of the material. A standout feature of the Alchemist experience is the bi-weekly coaching or mentoring sessions. Participants have the opportunity to select a mentor based on their specific needs, making this aspect of the program highly personalized and impactful. Once a mentor is chosen, they receive an incentive in stock, ensuring their commitment and dedication to your success throughout the accelerator.
This mentorship relationship often evolves into a significant, lasting bond, extending well beyond the program’s duration. The value of this mentorship aligns closely with what we strive to achieve at GrowthMentor, emphasizing the importance of guidance and support in the entrepreneurial journey. Additionally, the program includes monthly mock board meetings with Alchemist partners, both general and limited, simulating a board of directors environment. These sessions focus on strategy, goal setting, feedback, and advice, all in preparation for the culmination of the program: Demo Day. Participants also receive ongoing support to refine their pitch, both verbally and in writing, ensuring they are fully prepared to present their startup to potential investors and partners.
Milestones Achieved During the Alchemist Accelerator Program
Q: Can you share a significant milestone you achieved during the Alchemist Accelerator program?
A: One of the most significant achievements for us during the Alchemist Accelerator was raising two rounds of funding. This is often a primary goal for startups participating in an accelerator, and we were fortunate to see it come to fruition. We managed to secure a smaller round midway through the program and another round in conjunction with demo day, which aligns with the standard trajectory many hope for. Another milestone was the establishment of a Customer Advisory Board, a strategy highly recommended by the accelerator. This initiative has been instrumental in fostering closer relationships with our customers, ensuring that we’re building solutions they genuinely value and are willing to invest in early on.
Additionally, we embarked on a market expansion to the U.S., specifically targeting San Francisco for both commercial and financial growth. This move has been a learning curve, offering extensive networking opportunities and leading to the establishment of a U.S. entity. While setting up a U.S. entity is a significant step, it’s one that should be timed carefully. Nonetheless, these milestones have marked critical phases in our journey, contributing to our development and expansion in meaningful ways.
BeCause’s Current Status and Future Plans
Q: What is the current status of BeCause, and what are your upcoming milestones?
A: BeCause has made significant progress, especially in terms of our commercial achievements and financial growth. Currently, we’re working with more than 25,000 hotels and have secured 50 paying customers, including prominent names like the Radisson Hotel Group, Google, and Booking.com. Financially, we’ve successfully raised a seed round of about $2 million in November, followed by an additional half a million dollars in a tail extension this February.
Our team has grown substantially; we’re now around 25 people and expect to increase further with five new hires in the next couple of months, effectively doubling our headcount from just six to eight months ago. This growth phase is incredibly exciting for us, and we’re primarily focused on accelerating our growth to meet the demand for our existing products and the partnerships and projects we have lined up.
Looking ahead, our focus remains on meeting the current demand while also evolving our product offerings to comply with and leverage new regulations rolling out in the EU. These include sustainability reporting directives and green claims directives, which make sustainability not just a competitive advantage but also a compliance requirement. We’re exploring how we can further support our customers in this aspect, particularly through the development of features that align with the Corporate Sustainability Reporting Directive (CSRD).
Additionally, we’re keen on integrating more AI into our solutions to enhance our services and offerings. This technological advancement will play a crucial role in how we evolve and meet the needs of our customers and the broader market demands for sustainability and compliance.
Advice for Founders Applying to Alchemist Accelerator
Q: Do you have any final tips for founders wanting to apply to the Alchemist Accelerator?
A: First and foremost, my biggest tip is to go for it, particularly if you identify with the profile I’m about to outline. If you’re leading a B2B enterprise startup and your team primarily consists of technical founders, Alchemist Accelerator can offer immense value. It’s crucial that you’ve validated your concept enough to be confident there’s something significant to pursue and are ready to focus on scaling. The accelerator is particularly beneficial if you’re looking to unlock the secrets of successful fundraising and mastering the customer acquisition process, especially within the U.S. market. However, it’s important to recognize that joining any accelerator, including Alchemist, sets a ticking clock towards demo day. This brings a certain pressure to demonstrate sales growth from the early months of the program.
Responding to the question about the accelerator’s role, it’s vital to understand that while the accelerator can provide legitimacy, a stamp of approval, and a financial boost, the heavy lifting remains your responsibility. They can accelerate your journey, but the foundation of hard work must come from within your team. Preparing for this level of commitment and ensuring you’re ready to leverage the accelerator’s resources fully is key to making the most out of the experience.