Introducing Mike Tinmouth from Acua Ocean
Q: Can you introduce yourself and tell us about Acua Ocean?
A: I’m Mike Tinmouth, co-founder and chief operating officer of Acua Ocean. We’re pioneering the world’s first hydrogen-powered autonomous surface vessel. Essentially, they’re drone ships designed for prolonged ocean monitoring and protection. They’re capable of collecting data and performing specific tasks in open ocean conditions. Our approach is unique because we aim for longer endurance, which is crucial for reliable operations in the challenging marine environment.
Q: What was the inspiration behind Acua Ocean?
A: The idea for Acua Ocean emerged from a blend of personal and professional experiences. I co-founded the company with my brother Neil, and we both have deep roots in the maritime world. Our father was at sea, our mother served in the navy, and our grandfather also had a life at sea. Growing up in such a nautical family, we were keenly aware of the challenges faced by technology solutions in the ocean. The key issues revolve around endurance, the time spent at sea, and the need for high reliability in the complex ocean environment. Additionally, stability in extreme weather conditions and high sea states is vital. Recognizing these challenges, we saw a significant market opportunity. Existing solutions addressed some issues, but there was a clear gap in the market. Leveraging our industry experience, we started developing solutions that could better meet these challenges, thus founding Acua Ocean.
Why Founders Factory?
Q: What motivated you to join Founders Factory?
A: We were aware of Founders Factory as an early-stage investor and accelerator for a while. What really caught our attention was the launch of their Blue Action Lab program, which aligned perfectly with our objectives. The equity investment they offered was crucial for us as an early-stage company. But more importantly, it was the access to a vast network and ecosystem of technology partners that appealed to us. This network included job creators, operators, and connections to public policy and government organizations in places like the Bahamas. Additionally, the opportunity to collaborate with other technology partners to develop solutions in the ocean space was a game-changer. Our goal is to make our autonomous drone ship a versatile platform that supports various technology providers. By joining this cohort, we could learn from other founders, understand market dynamics, and see how our solution could support and benefit from others.
The Application Process
Q: Can you describe the application process for Founders Factory?
A: The application process started with a simple call, which we set up after connecting on LinkedIn. We spoke with Liv and Jamie, two of the investment directors at Founders Factory Blue Action Lab. The initial pitch lasted about 30 minutes, focusing on them, our vision, and a brief overview of our product. At this stage, the emphasis was more on the team, the vision, and the market opportunity, rather than the detailed specifics of the product. The process then moved quickly to more detailed due diligence, including opening up a data room. In less than three months, we had agreed on an investment and were set to join the program.
Q: How competitive was the application process, and what set you apart?
A: While many applicants vie for a spot in accelerators, I don’t think the process is about competition in the traditional sense. It’s more about finding the right fit. Founders Factory knows what they are looking for, and not all applicants will meet their criteria. I believe what set us apart was our targeted approach. We didn’t just apply because they were offering funding; we demonstrated how our vision and value aligned with their program. The process with Blue Action Labs is very bespoke. They constantly review startups and even involve their existing network in the vetting process. This mutual relationship, where we support their due diligence on other startups and vice versa, is quite unique and beneficial for both sides.
Support and Funding of the Founders Factory Program
Q: How does the Founders Factory program operate, especially considering Acua Ocean’s involvement?
A: At Founders Factory, we have weekly meetings with the investment team where we discuss our progress and strategies. Our focus has been on two main areas: investment and commercialization. For investment, we’re transitioning from a pre-seed to a seed round, and the team has been instrumental in helping us with investor decks, pitch presentations, and structuring our data rooms. We meticulously track our progress through an investor sales funnel, which makes the process very personalized and detailed. On the commercialization front, we meet monthly with a broader team to explore opportunities, projects, and potential partnerships. In fact, we’re collaborating with another company in their portfolio for a joint tender. Besides these meetings, Founders Factory also offers valuable marketing, PR, and data analytics support, and we’ve benefited from their networking events where we’ve pitched to VC firms.
Q: What is the duration of the Founders Factory program, and what kind of support do you receive?
A: The program is structured for six months initially, but the support is ongoing. The difference with Founders Factory, compared to other accelerators, is their equity investment. We’ve never given away equity without receiving cash in return. This investment means they have a financial stake in our success and are motivated to continue supporting us beyond the program. This ongoing support is vital, especially when preparing for the next funding round. Their commitment is not just limited to the program’s duration; it’s a continuous partnership.
Q: Can you disclose the funding range provided by Founders Factory?
A: While it varies for each startup, the funding is generally over a hundred thousand pounds, aligning with other accelerator programs. Founders Factory offers a blend of cash investment and potentially sweat equity, depending on negotiations. The equity terms are flexible and not fixed. In our case, their investment was part of our pre-seed funding round, contributing to our early growth and development. However, they don’t typically follow on in subsequent funding rounds.
Key Milestones and Learning from the Founders Factory Program
Q: Can you share a significant milestone achieved during the Founders Factory program?
A: During the program, we had numerous high-quality investor conversations. We’ve been introduced to about 15 VC firms interested in our seed round, and we’re still in the process of engaging with them. Another key area of progress has been in commercialization. We’ve learned effective ways to engage with end users and have seen success in both investment and commercial outreach in these first six months.
Q: Was there anything you felt was missing from the program?
A: Not exactly missing from the program, but a learning point in general for accelerator programs is the need for personalized approaches. With thousands of venture capital investors worldwide, each has different expectations. Through Founders Factory, we learned the importance of customizing our pitches and communications for each investor. No two investors are the same; one might love something in your pitch deck, while another might advise against it. So, personalization is key, but overall, the program has been very thorough and tailored to our needs.
Q: Could you update us on Acua Ocean’s current status and upcoming milestones?
A: Currently, Acua Ocean has secured a pilot project through the UK’s Clean Maritime Demonstration Competition, and we’ll demonstrate our vessel in Q4 of this year. We’ve completed our first commercial contract with the UK Ministry of Defence and are finalizing another with the Royal Navy. We’re also close to announcing the full closure of our pre-seed investment round. It’s been a successful six months in terms of commercial and investment achievements. Looking ahead, 2024 appears extremely promising yet busy. We’ve grown our team from 5 to 15 people, which brings both exciting opportunities and significant responsibilities. As a founder, it’s not just about growing the business; it’s also about caring for the well-being and career progression of our team members.
Advice for Founders Considering Founders Factory
Q: Do you have any advice for founders thinking of applying to Founders Factory?
A: My key advice is to ensure that the accelerator program, like Founders Factory, is the right fit for your startup. It’s essential to do thorough research and not just apply to any accelerator program out there. Make sure you’re at the appropriate stage of your business and that the program aligns with your needs. Another critical aspect is your commitment and capacity. Engaging with an accelerator program requires significant effort and time. What you invest in the program is what you’ll get out of it. If you’re not fully committed, you risk giving away equity without reaping the full benefits. It’s also crucial that you’re ready to dedicate your full attention and resources. Going in half-prepared can be detrimental to your business. An ideal scenario is where the accelerator recognizes your potential and you’re prepared to give it your all.