Introducing Cattle Scan
Q: Can you introduce yourself and your startup?
A: My name is Denis Tokarev, and I am the CEO and founder of Cattle Scan. Cattle Scan is a groundbreaking platform designed to detect illnesses in animals at an early stage. We’ve developed an IoT solution and a cloud-based platform that monitors the biometrics of livestock, specifically focusing on cows. Our operations are based in Ontario, Canada, but we’re making strides in the US market.
Recently, we were honored with the prestigious Grow New York award, a well-known agriculture-related pitch competition supported by Cornell and the government of New York State. This victory has provided us with significant support and marked New York as our test market for expanding into the US.
Q: How did you come up with the idea for your startup?
A: Growing up on a farm, I’ve experienced firsthand the challenges and losses farmers face, especially when it comes to losing a prized cow. Traditionally, farmers assess the health of their livestock based on milk production, but this method often signals problems too late for effective intervention. By the time a cow’s milk production drops due to illness, it’s usually too late for her to recover to her expected productivity levels. This realization led us to develop a proprietary sensor device that tracks the biometrics of cows 24/7, functioning similarly to a Fitbit or Apple Watch but for cows. Our technology aims to detect health issues early, preventing significant losses and improving overall farm productivity.
Why Alchemist Accelerator?
Q: What motivated you to join the Alchemist accelerator?
A: The decision to join Alchemist was driven by its stellar reputation within the startup and fundraising community, but what truly appealed to me was the network of like-minded founders and entrepreneurs embarking on the entrepreneurship journey.
Alchemist offered a community where I could share both the pains and successes of startup life. It’s incredibly supportive; we maintain connections with our cohort and those from other classes, sharing updates and sometimes convening calls to discuss challenges. Just yesterday, I learned that a company from our class secured a significant funding round. Witnessing their progress and struggles, similar to my own, provides a sense of assurance and inspiration. It reinforces the belief that if they can succeed, so can I.
Alchemist Accelerator Application Process
Q: Can you describe the application process for Alchemist?
A: The application process for Alchemist was quite straightforward and not overly complicated, which I appreciated. What’s unique about Alchemist is the opportunity to apply multiple times. We were accepted into the program on our third attempt. Initially, we didn’t make it past the first round of assessments. On our second try, we progressed to the Q&A and interviews but were ultimately not selected. I sought feedback, which was constructive and helped us improve.
During our fundraising efforts, I reached out to Alchemist, indicating our situation, and they invited us for a discussion, allowing us to join the class at the last minute. I had some reservations about whether we were overqualified, but conversations with Ravi, a representative from Alchemist, were incredibly supportive. He addressed my concerns in a personalized manner, ensuring that the program would meet our specific needs. This tailored approach distinguished Alchemist from other accelerators we’ve experienced, marking it as one of the best in my view.
In summary, the application involves filling out an online form followed by a selection process that includes interviews and assessments. This process allows for direct communication with the Alchemist team, ensuring that questions and concerns are addressed promptly and effectively.
Q: What do you believe set your company apart to get accepted into the program?
A: Our journey, marked by turbulence and the challenge of being a solo-founded company, played a crucial role in distinguishing us. Many investors and accelerators are hesitant to back solo founders due to a perceived lack of commitment. However, I demonstrated that my commitment to Cattle Scan’s success was independent of external validation. I conveyed a clear trajectory of development and an intrinsic motivation to drive the company forward, which resonated with the Alchemist team.
Ravi from Alchemist noted that while the common practice favors teams of founders, a solo founder who has achieved significant milestones alone signifies a strong dedication and clear vision. This aspect of our application gave us an edge. Additionally, the innovative nature of our technology and our deep understanding of the industry set us apart. We showcased the potential of our system to revolutionize animal health management, offering significant value to individual farmers and the industry at large. Our approach provides insights into animal genetics, reduces treatment costs, and supports medication efficacy assessments, contributing to sustainability by reducing the need for cow replacements and lowering greenhouse gas emissions without compromising milk production.
Our collaboration with leading universities in Canada and the US and support from one of the largest dairy cooperatives in the US further solidified our foundation. These elements combined to highlight the substantial impact and innovation Cattle Scan brings to the table, ultimately setting us apart in the application process for Alchemist.
Inside Alchemist Accelerator Program
Q: Can you describe what the program was like when you joined?
A: My experience with the Alchemist program might be unique because I joined a month after it had already started. Due to my ongoing fundraising activities, I negotiated a flexible arrangement where I could attend classes based on their relevance to my needs, without the obligation to participate in the demo day with my cohort. As a result, I officially joined the program in December and participated in the demo day in January with the product I was already developing. This approach allowed me to selectively engage with the educational content offered by Alchemist, opting in for classes that I found beneficial and skipping those I felt was unnecessary.
I ended up joining the demo day with the cohort before mine, class 32, despite being a part of class 33, which started in November. This decision was driven by my active engagement in fundraising and discussions with investors, making it impractical to wait until May or June for my cohort’s demo day. This unconventional path provided me with a tailored program experience, aligning with my immediate needs and goals.
Ravi from Alchemist confirmed that such customization was possible, facilitating an expanded network for me, not just within my own class but also with the previous one. I had the opportunity to present at two demo days, first as a company and then alongside my cohort, which enriched my experience and connections within the accelerator. This flexibility and adaptability of the program were instrumental in catering to my unique situation, demonstrating Alchemist’s commitment to supporting founders in a way that best serves their progress and success.
Q: How does funding work within the program?
A: Negotiation is a key part of my approach, especially when it aligns with our needs. When it came to funding within the Alchemist program, the general terms offered were quite favorable for founders, making them attractive even without the need for negotiation. However, given that Cattle Scan was a bit more developed than most other companies in our class, we found ourselves in a position with some leverage for negotiation. This advancement allowed us to discuss and explore what was possible beyond the standard offering.
The flexibility in negotiations and the inherently founder-friendly terms of the program highlight Alchemist’s understanding and support of startups at varying stages of development. For companies that are accepted into the program, even at the outset, the conditions are designed to be advantageous, encouraging founders to focus on growth and development without undue financial pressure. This approach underscores the accelerator’s commitment to nurturing startups by providing a foundation that is beneficial from the start, with room for adjustments based on a company’s progress and specific circumstances.
Achieving Milestones and Overcoming Challenges
Q: What was the most significant milestone you achieved through the Alchemist program?
A: The most significant milestone for me was the expansion of my network of potential investors, which has been invaluable. Through the program, I was able to not only grow this list but also develop meaningful, friendly relationships with some investors. One investor, in particular, has become a kind of financial advisor to me, offering guidance without seeking equity in return. This kind of support is incredibly beneficial, providing a fresh perspective on financial terms and decisions.
Additionally, the whole fundraising process was an area where I saw significant growth and learning. The program allowed me to revisit and refine my approach to fundraising from the ground up, enabling me to explore aspects and strategies I hadn’t considered before. This comprehensive review and the ability to lean on experienced investors for advice without the pressure of equity exchange have been pivotal in shaping the direction and success of Cattle Scan.
Q: Did you face any challenges in the program, or is there anything you would change?
A: One area for improvement that I identified involves the selection and preparation of class instructors and the content of their presentations. Specifically, I recall a session on CRM, a topic of great interest to me, where the presenter from HubSpot was notably unprepared. She was calling in from her car, her presentation was not set up properly, and the content delivered was very basic and high-level, falling short of expectations. This resulted in visible disappointment among attendees, with many choosing to leave the session.
This experience highlighted the need for a more rigorous approach to selecting presenters and ensuring they are well-prepared, with clear objectives and valuable insights to offer. It’s important for the program to maintain a high standard for educational content, ensuring that each class is impactful and meets the participants’ needs for practical, actionable information. Adjusting this aspect could greatly enhance the overall effectiveness and satisfaction with the program.
Current Status and Future Goals for Cattle Scan
Q: What is the current status of Cattle Scan, and what are your upcoming milestones?
A: The most crucial update is that we are still operational, and actively expanding in New York State, which is currently my top priority. Our main goal for this year is to establish a robust sales process in both Canada and the US. This task is at the forefront of our objectives as we navigate the challenges and complexities of scaling. We’ve undergone a significant turnaround in our technology. The adage “hardware is hard” has proven to be true in our experience, especially as a company focused on the hardware aspect of our product. This challenge is compounded by our target market’s conservative stance towards new technologies, which necessitates a careful approach to innovation and product development.
The startup mentality of “fake it till you make it” does not apply well in the agricultural sector. Given the close-knit nature of the farming community, a failure with one customer can negatively impact perceptions across the entire market. Post-COVID, we took a step back to refine our R&D efforts, ensuring our product was sustainable and robust enough for market demands. Having navigated these challenges, we are now in a strong position, with support from Grow New York to expand into this key market. Establishing our sales process in North America is not just a milestone but a significant step towards solidifying our presence and impact in the agricultural industry.
Final Advice for Prospective Alchemist Applicants
Q: Do you have any advice for founders considering applying to Alchemist?
A: My final piece of advice for founders thinking about applying to Alchemist is simple: just apply! Don’t be disheartened if you don’t get in on your first attempt. This was a key lesson for us. Rejection should not be seen as the end of the road. Instead, view it as an opportunity to refine your application and strategy.
Alchemist offers several intakes throughout the year, so there are multiple chances to apply and potentially get accepted. It’s important not to take rejection personally or to develop a negative attitude towards the program. Instead, solicit feedback on your application. When we were rejected after our second application, we used the feedback provided to improve. This constructive criticism is invaluable, as it can offer insights you might not have considered and help strengthen your application for future rounds.
Persistence, coupled with a willingness to learn from feedback and adapt, is crucial. If you believe Alchemist can add value to your startup, keep trying and take advantage of the opportunity to improve with each application cycle.