By Paul Chen
In December 1890 a
group of outcast artists from Paris decided to revive the SociétéNationale des Beaux-Arts because their art were considered not up to the standard
of the them prestigious Salon de Paris.
Rather than having their paintings and sculptures exhibited among the
many at the Louvre, they opened a smaller exhibition where its members can show
off more of their craft. These days, paintings
and sculptures of Manet, Delacroix, and Rodin are worth millions each.
The moral of the story is that it
is sometimes better to have the big fish in a small pond approach in
startups. In recent years, telecoms like
Deutsche Telekom and Spain’s Telefonica while being giants are giving some very
talented individuals and teams chances to do just that. In Krakow and Berlin, Deutsche Telekom formed
branches of the accelerator hub:Raum. In
many Latin America capitals as well as some selected European cities,
Telefonica opened branches of the accelerator Wayra.
While some telecoms and corporations are resistant to the idea of outsourcing research and development to startups. The reasons are
understandable. The low level of control
over product development and the high up-front pre-seeding fee can be concerning
to some middle level managers and accountants.
However, in the end both the sponsoring company and the startup can
benefit from this model. Because they
are startups, they can concentrate on developing a good solid product and
service while being nimble enough to make necessary pivots without having to
answer to some mid-level managers. Additionally,
the startups, if successful, will be providing the community with jobs and improving the local economy. And they
will keep the market competitive providing better products and services to the
customer. The startups will also have
access to the sponsors’ large portfolio of pre-existing clients.
The sponsoring company wins by
being the first in line to acquire the rights to use the products and services. The sponsors are also able to add more
variety of services to their menu. If
the startup does badly, they can distance themselves from the product and
service as the startup is considered a separate entity. As a result the company brand doesn’t get
damaged. There is probably a tax incentive
in having these ventures.
In the center of the golden city
of Prague on the magnificent Wencelas Square sits the Czech office of
Wayra. I caught up with Ms. Linda Kajzarova the branch manager. This is
what she has to tell us:
This is certainly a really great
location, why here, rather than outside the city center like other coworking
spaces in Prague?
There are two reasons:
- It is better for the startups to have many varieties of food options within walking distance so they can eat and get back to work without having to travel long distances.
- It looks wonderful for investors to visit a more upscale office in the middle of the city. That way they can feel the energy as well as the hustle and bustle.
How does the Wayra Academy work?
In our first round of recruitment,
we received over three and half thousand (3,500) applications for ten (10)
spots. A startup can reapply as many
times as they wish. We will always
provide them with good honest feedback without any sugar coating. During their time with us they will have
access to the following:
- Fully equipped (internet, furnished workspace, kitchen use, a shower) coworking space in the heart of the city.
- Infrastructure for growth
- Access to our global team of experienced mentors
- Six (6) months of training focused on the topics of: pitching, negotiating, product and customer dev.
- Insider information on all the markets that Telefonica serves
- 40,000 Euro of pre-seed funding given in installments provided certain KPI’s are met.
- Access to our global network of offices, personnel, and community
What does Wayra want
in return?
We would ask for 10%
equity, first right privileges.
What are you looking
for in a startup?
We are looking for
startups with a focus on telecom products and services. We are looking for hard-working, passionate
people who believe in their idea. We are
looking for startups that will be able to make contributions to our global
community and believe in the system.
Some cities will try
to compare their startup community to those in Silicon Valley. How do you think Prague compares to the
Valley?
There are a huge
number of success stories to come out of Silicon Valley, which is wonderful for
them. However, as you have heard from
other places in Prague earlier, here in Prague, we would like to create our own
pond and success stories. We don’t
really need validation from the Valley.
We know we are good and we believe in ourselves.
Any early successes?
One of our startups,Datamolino,
was invited to make a pitch at the Wayra Global Demo Day. They were able to make
their pitch to over 300 global investors.
How do you think the
Prague Startup Community could improve?
I would like to see
more girls involved. I would like to see
more people be courageous enough to take a chance and put themselves out
there. It’s OK to make mistakes, as long
as you can learn from it and it improves your idea or product in some way. I
would like to see more people apply to our accelerator program.
Wayra just closed the
next round of global recruitment.
The current cohort of
startups:
Mapilary – Tracks people in real time as they
meet up.
Lion Expo –
One-stop shop for commercial exhibitions and exhibitors.
Data Molino –
Enterprise quality software and ’back office’ support for small accountancy
practices.
Linxy –
Offline app that uses your phone camera to look up words for explanation and
definition.
Big Launcher (the
only Czech startup) – An alternative interface for Android smartphones that
simplifies functionality.
TrashOut –
Allows users to report illegal waste dumping sites to relevant authorities.
Excalibur –
Allows secure login without passwords using your phone as a universal ID.
Remote Assistant –
Uses a mobile phone’s camera to deliver real time assistance to the visually
impaired.
Networker –
A "mobile LinkedIn" for business functions.
WOPPA –
Resource for connecting students with opportunites and grants offered by
government and agencies.
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