Introducing Martina Ivanova and Peelo
Q: Could you briefly describe yourself and your startup, Peelo?
A: My name is Martina, and I’m the co-founder and CEO of Peelo. We specialize in sustainable, innovative food packaging for households. Our main product is a food wrap made from fabric, beeswax, and other materials. We’ve developed technology to produce this product on a large scale. It is an alternative to single-use plastics, keeping food fresh for longer and reducing food waste.
Q: Can you explain the science behind your beeswax packaging?
A: The packaging comprises fabric, beeswax, oils, and resins. This combination makes it antibacterial. The oils render it malleable, while the resin adds stickiness, allowing it to maintain its shape. The packaging changes properties based on temperature, like in the fridge or at room temperature.
The inspiration came from my travels in New Zealand and Melbourne, where I first saw such products. However, these were largely unavailable in Europe, especially at a large scale in retail. My co-founder and I, coming from marketing and technical backgrounds, initially planned to brand the product but soon realized the need to create our own production line due to the lack of quality production options outside of China. This led to a year-long process of developing our technology for production.
Q: Was beeswax packaging a local trend in Melbourne or more widespread?
A: Five years ago, it was popular in New Zealand and Australia, not just Melbourne. However, in Europe, it was relatively unknown when we introduced it there. It was more of a New Zealand and Australian trend at that time.
Why Rockstart?
Q: What motivated you to join Rockstart?
A: We were bootstrapping for about two and a half years before joining Rockstart. Starting our business during COVID was challenging, especially as we launched just as the pandemic began. This timing hindered our growth as an online brand due to limited marketing resources. During this slow period, we discovered Rockstart and decided to give it a try, despite not being sure about our chances. We were impressed by the startups associated with Rockstart and received positive feedback from those who had participated in their program.
The decision to join was solidified after talking to previous participants and the Rockstart team. It was crucial that we felt a good chemistry and trust with them. They were supportive, even assisting with issues like understanding our contract, which was challenging due to language barriers and the lack of experienced local lawyers. Rockstart extended deadlines to accommodate our needs, building trust and making us feel comfortable with our decision. This step was significant as it represented a shift from bootstrapping to a more structured growth path, and Rockstart’s support made this transition smoother for us.
The Application Process
Q: What was the application process like for Rockstart?
A: The process, which I recall from two years ago, began with an online questionnaire about our business. We passed the first round and then underwent a comprehensive assessment as co-founders, including detailed personality tests. These tests, surprisingly accurate, provided a summary of our business personalities, offering valuable insights into our compatibility as business partners.
This aspect of the process was particularly memorable because it helped us understand each other better in a business context, even though we had known each other for five years. There was also due diligence and evaluations of our presentation skills. The distinction between the application process and the start of the workshops is a bit blurry, but the entire experience was quite fast-paced and informative.
Q: Was there an orientation week or a transition period before the program started?
A: Yes, there was about a month and a half gap from the moment we were accepted to the start of the program. This time was used for signing contracts and completing necessary paperwork. The program began towards the end of August.
Daily Life at Rockstart for Peelo’s Team
Q: What did a typical day look like in the Rockstart program once you joined?
A: The program lasted about five to six months. Each month included a deep dive week packed with workshops, training, and speech coaching. The rest of the month was focused on running our business. Rockstart’s philosophy emphasized not occupying all our time with classes, but rather providing support and training to complement our work. Each deep dive week had a specific theme, such as finance, marketing, or pitch coaching, covering various needs of startups.
We also had biweekly one-to-one sessions with Matthias or Mark, who were divided among the businesses. These sessions offered tailored support and guidance based on the specific stage and needs of our business. For instance, they assisted us in creating a detailed financial table, which remains a vital tool for us. Additionally, we had the opportunity to request meetings with mentors for specific topics or challenges. Rockstart also facilitated interactions with corporate leaders and managers, although we didn’t utilize this extensively as it wasn’t directly aligned with our stage of business development at that time.
Q: How much funding did you receive from the Rockstart program?
A: The funding from the program was 100,000 Euros, out of which 35,000 Euros was in cash. The remainder covered the costs of the program, including mentoring and other resources. This was structured as a BTI contract.
Q: Was the funding from Rockstart in exchange for equity in your company?
A: Yes, the funding was in exchange for equity. The agreement specified a timeframe of either 12 or 18 months, during which we were expected to raise additional funds. The equity conversion was contingent on the amount of funding raised from other investors. This funding was essentially a kickstart, intended to support our operations for a few months , depending on our burn rate. The entire arrangement was under a BTI contract.
Rockstart’s Impact on Peelo’s Success
Q: Looking back, was there a specific moment during the Rockstart program that was crucial to your company’s success?
A: It’s hard to pinpoint a single moment; rather, it was the collective influence of the people at Rockstart and their inspirational approach. Their problem-solving skills were particularly impactful. They could turn seemingly unsolvable issues into manageable ones with just a few insights. This approach, along with their human and empathetic nature, has stayed with me.
A memorable aspect was learning about the personal experiences of our mentors, discussing their own burnouts. . It brought a human element to business coaching, highlighting the real challenges of running a business.
Q: What were some of the challenges you faced, and how did the accelerator help you overcome them?
A: Pitching was a significant challenge that the accelerator helped us overcome. Equally crucial was financial planning. Before Rockstart, our approach to finances was quite basic – we had no experience founding startups and had a very ad-hoc approach to managing our finances. We didn’t plan ahead for six or twelve months; it was more about whether we had enough money at a given time. The accelerator’s guidance helped us gain control over our financial planning, which was transformative. Another area where Rockstart was invaluable was in expanding our perspective on business models for our product. We were very focused on our product and its immediate market, but the mentors at Rockstart opened our eyes to a broader range of possibilities and markets. They provided numerous ideas on approaching new markets and strategies, helping us think outside the box and expand our business vision.
Peelo’s Progress Post-Rockstart
Q: Can you share the current status of Peelo and its achievements post-accelerator?
A: Since completing the Rockstart accelerator, we’ve experienced significant growth and change. We successfully raised a pre-seed funding round and expanded our team to nine people, up from just the two co-founders. We’ve also moved to a new, larger production facility, tripling our previous space. A major shift in our business strategy has been our focus on direct-to-consumer (D2C) sales. Initially, our focus was on retail, but Rockstart advised us to concentrate on one area to avoid spreading ourselves too thin. This led us to pivot towards becoming primarily an online brand, leveraging our background and expertise in this area. This strategy proved particularly effective during the COVID-19 pandemic when physical stores were closed. As of 2020, our shift to a D2C model has been central to our expansion. We’ve launched online stores in new countries, including the Czech Republic, Hungary, and France this year. Additionally, we undertook a complete redesign of our website to better serve our growing online customer base.
Future Goals and Continued Support from Rockstart
Q: What are Peelo’s next milestones, and how has Rockstart prepared you for these?
A: Post-accelerator, our contact with Rockstart has naturally decreased. The intensive support phase lasts about six months, followed by occasional follow-ups. Now, it’s more about reaching out to them when we need specific assistance. Our main goal for the upcoming year is to successfully expand into new countries, a task that has been challenging this year. We faced unexpected difficulties, including higher expenses and the impact of geopolitical events like wars and high inflation, particularly in Central Europe.
These factors significantly affected our business, prompting us to focus less on expansion and more on stabilizing our operations. We’ve had to navigate increasing material costs while keeping our products affordably priced, which has squeezed our margins. Our strategy has shifted towards making the business financially sustainable in a changing investor environment. Previously, high valuations and revenue growth were prioritized by investors, but now there’s a greater emphasis on profitability and self-sustainability. This shift aligns with our focus on reducing dependence on further funding rounds and ensuring that Peelo can sustain itself financially.
Advice for Applicants
Q: Could you share some quick tips for startups applying to accelerators?
A: The most crucial factor is to understand if the venture capital (VC) environment aligns with your vision for your business. Consider your ultimate goal: do you see your company as a long-term personal venture for the next 20 years, or are you aiming for something that you plan to grow quickly and potentially exit? It’s essential to have a clear understanding of your objectives and aspirations for your business. This self-awareness will guide your decision on whether joining an accelerator is the right step for you.