Meet Kirill from Torus
Q: Can you briefly introduce yourself and your startup?
A: Hi, I’m Kirill Lisitsyn, the co-founder and CEO of Torus. Torus operates as a SaaS intelligence platform tailored for banks. Our focus lies in assisting banks to enhance their card payment business, ultimately helping them generate more revenue. The crux of our solution involves streamlining data analysis derived from Visa and Mastercard, simplifying the complexity for our clients.
Choosing Startup Wise Guys for Early-Stage Support
Q: And why Wise Guys?
A: Historically, as we were establishing our company in Europe, we found ourselves in need of very early-stage fundraising. Being based in Lithuania, we were scouted by Wise Guys, who approached us with an offer to join their program. They expressed interest in having us on board and offered investment. The synergy seemed promising, especially considering our early-stage status – we were initially billing the product. Joining Wise Guys meant not only financial support but also valuable knowledge. The fact that they were already acquainted with Wise Guys added more credibility to our decision. It was a historically crossed path that proved beneficial.
Q: Can you elaborate on what made Wise Guys a good fit for you at that stage?
A: At that early point in our journey, receiving both financial support and references from Wise Guys was crucial. Their belief in our potential, combined with the additional knowledge they offered, made the partnership seem not just practical but also strategically cool for us.
Q: Do you remember the application process at all?
A: Not much, to be honest. While we were in the process of applying, we were approached by a scout or startup enthusiast expressing interest in what we were doing. From there, we went through the initial steps, including a first interview. Subsequently, we proceeded with a formal application form. Surprisingly, the process was incredibly fast, taking less than two weeks from the first call with the scout to our acceptance into the program. It moved swiftly, and they not only expressed the desire to invest in us but also indicated a willingness to invest more than their usual amount.
The follow-up involved additional meetings with experts, particularly relevant for us since we were working in a niche field. They engaged payment experts to delve into our concept. Once these experts gave the green light, confirming the viability of our venture, the decision was made to proceed.
Q: Did they specifically ask you to submit a formal application, even though they had approached you?
A: Yes, they did. Despite their initial approach, there was still a formal application form to fill out. It was a fairly straightforward process, with much of the groundwork already laid out.
Q: Can you expand more on your motivations?
A: When considering joining an accelerator, we saw it as a valuable avenue for making crucial connections. Initially, we envisioned it as a potential source of customer leads, investor connections, and specialized knowledge. The accelerator’s network was a significant factor in our decision-making process. However, the customer acquisition aspect didn’t pan out as well as we hoped, mainly due to our niche focus. Unlike typical B2B SaaS ventures, we operate in the realm of vertical enterprise SaaS, specifically tailored for banks and their payment processes. Recognizing this specificity, we realized that our best approach was to seek out experts in the market or form strategic partnerships. While the general scope of a typical early-stage accelerator might be a bit broad for customer acquisition in our case, the other benefits made it a worthwhile choice.
A Glimpse into the Intensive Routine at Startup Wise Guys
Q: What was a typical day like once you got in?
A: The program was intensive, three to four days per week with various meetings and activities. In comparison to our experience with Alchemist the following year, which was a one-day affair, Startup Wise Guys offered a more immersive experience. Typically, the schedule involved sprints lasting one or two weeks, each dedicated to a specific topic. For instance, there were focused sprints on product design, where we moved from an idea to a minimum viable product (MVP) ready for market pitching. This proved to be a valuable experience, demonstrating that pivoting or making significant progress could be achieved rapidly.
In the middle of the program, there was a unique getaway experience. Participating startups gathered, and we went to Milan, as it was the Italian part of the program. Spending a couple of days there facilitated better connections among the participants. Importantly, this coincided with a period when COVID restrictions were easing, marking one of the first instances of people resuming travel. The physical connections forged during this time were particularly valuable.
Q: You mentioned receiving funding as part of the program. Can you shed some light on that? Was it in exchange for equity?
A: As part of the program, they typically provide funding when you’re accepted. In our case, they even exceeded the usual amount, expressing a desire to support us further. The funding came in the form of a convertible loan, implying that while it had the potential to convert into equity later, it wasn’t an immediate exchange.
Q: Can you disclose the figures involved?
A: I’m not certain about the specific figures, so I prefer not to provide exact numbers. As is common in the early stages, the valuation wasn’t exceptionally high. The lead investor we were already in talks with established the valuation. Interestingly, some startup guys joined the round swiftly after a few meetings, and the process seemed rational and friendly. It didn’t feel like they were taking a substantial portion of the company for nothing; the terms were quite reasonable.
Milestones, Challenges during the Program
Q: Was there any particular moment when you felt convinced that the program was truly worthwhile, or any time you questioned its value?
A: Evaluating the results immediately after the program might not capture the full picture. Initially, our fundraising expectations post-program didn’t unfold as smoothly as anticipated for various reasons. However, looking back a year later, during challenging times, Startup Wise Guys provided essential support, and the connections forged proved invaluable. For instance, we secured our first customer in Italy through a partner introduced to us by Startup Wise Guys.
It’s challenging to pinpoint a specific moment of conviction during the program. Often, the significance becomes apparent in hindsight, as various situations and potentialities intersect to yield positive outcomes. While in the program, the focus is on maximizing opportunities and connections. Startup Wise Guys maintains a strict approach; teams need to be actively engaged. There’s even a case of a team being dismissed because they couldn’t invest sufficient time. This strictness ensures a group of highly motivated teams, collectively propelling each other to move faster.
Q: How does the motivation and engagement of teams impact the overall atmosphere within the program?
A: It’s akin to running in a group. If you’re in the middle or even following the slowest, it can affect the overall pace. Having a group of motivated teams running at a similar pace creates a dynamic where everyone feeds off each other’s energy, fostering high energy and optimism.
Q: Were there any specific challenges you faced during the program that you’d like to discuss?
A: One notable challenge was finding the right balance in allocating time. As a small team, it wasn’t just about managing my time but also ensuring my co-founder and other team members were effectively utilized. For instance, we had recently hired a CEO, and integrating them into the team added another layer of management complexity.
Q: How did you address the challenge of time management and team expansion?
A: Internally, we made strategic decisions to temporarily shift non-critical functions away from my responsibilities to my co-founders and the newly hired CEO. This allowed me to focus primarily on the most critical tasks and dedicate the majority of my time to building connections and maximizing the program’s opportunities.
Post-Program Achievements
Q: What’s the current status of the company post-Accelerator?
A: We graduated in February last year, and currently, we are cash-positive. Although we are still in the early stages due to our lengthy sales cycle, we are approaching a million in revenue. After the program, we raised additional funds, transitioning from almost a bootstrapping mode. Presently, we are closing interim safe rounds, aiming to raise around half a million to expedite certain initiatives. While I can’t attribute our success solely to the program, it played a significant role in supporting and propelling us, especially during challenging times the year after graduation. The connections forged during the program continue to impact our trajectory positively, showcasing the enduring nature of the relationship.
Q: Can you draw a correlation between completing the program and your growth trajectory?
A: Reflecting on it, it’s challenging to judge immediately, but looking back, certain opportunities and advancements wouldn’t have been possible without the program. While it’s possible we could have found alternative solutions, some notable outcomes directly resulted from our participation.
Q: Has your professional network expanded as a result of participating in the program?
A: Professionally, our network has expanded, not necessarily directly with participants in the program due to our niche focus. However, we maintain connections and interactions. When someone is traveling or visiting certain locations, we use platforms like WhatsApp to coordinate meetups, fostering an ongoing sense of camaraderie.
Q: What are the next milestones you’re targeting?
A: Currently, we’re generating most of our revenue in Europe, with initial steps taken in Asia, including signing up a bank in Japan. Our immediate milestones include reaching around a million euros in annual recurring revenue. Subsequently, we plan to consider raising an early-round A or late C. Additionally, expansion into North and South American markets is on the horizon.
Q: Have the milestones you’re aiming for been influenced by the accelerator?
A: The accelerator provided us with an initial impulse. While it’s challenging to attribute our specific milestones directly to the accelerator, the direction and persistence instilled during the program have undoubtedly played a role. Soft skills and techniques learned, especially during challenging times, have proven valuable. For instance, tools provided during the accelerator have been instrumental in managing the transition from a small team to a more extensive operation.
Key Advice for Applying to Accelerators
Q: Any final piece of advice for anyone looking to apply, whether to Startup Wise Guys or any other accelerator?
A: I recommend talking to someone who has graduated from the program to align your expectations. For those in the early stages, it’s worth exploring. This connection might serve as a valuable shortcut, allowing you to test ideas faster and expedite progress. Seeking insights from those who have been through the process can provide valuable guidance for navigating the accelerator landscape.