Introducing Dasha from Effa
Q: Could you introduce yourself and share the story behind your startup, Effa?
A: Certainly, I’m Dasha, serving as the CEO of Effa, a startup that originated in Ukraine. Our primary focus is combating global plastic pollution by creating eco-friendly, biodegradable, and recyclable disposable products. We initiated our journey with an innovative paper toothbrush and have since diversified into various paper-based products. Our main clientele includes hotels and airlines, for whom we offer a sustainable, plastic-free alternative in the market.
Q: What sparked the idea for Effa? Did it stem from a personal experience?
A: It’s an interesting tale, but I’ll keep it concise. The genesis of Effa was my husband, who is an accomplished industrial and brand designer. He has a background in developing hardware products, some of which have even been featured in Apple stores worldwide. Despite his success, he harbored deep-seated guilt about contributing to the plastic waste problem. His commitment to sustainability and environmental preservation led him to rethink the traditional plastic toothbrushes, particularly those used in hotels. This led to the idea of a paper toothbrush. Interestingly, I learned about his vision on our first date, which happened through Tinder, and that marked the beginning of Effa.
The Decision to Join Startup Wise Guys
Q: What led you to participate in the Startup Wise Guys accelerator?
A: Our decision to join Startup Wise Guys was heavily influenced by the situation in 2020, during the peak of the COVID crisis. The pandemic had varying impacts globally, but the most significant challenge for us was the drastic downturn in the travel industry, which Effa is closely linked to. This period was particularly tough for our startup, and we realized the importance of preparing for the market’s eventual recovery. We were already familiar with Startup Wise Guys and had connections there, making it a natural choice. We saw it as an excellent opportunity to learn, grow, and position ourselves to re-enter the market once the crisis subsided effectively. Joining the accelerator seemed like the right step to take to be fully prepared for the post-COVID world.
Startup Wise Guys’ Application Process
Q: Can you recall the application process for Startup Wise Guys?
A: Yes, we applied quite close to the deadline, and the process was quite intense. Every startup underwent a rigorous interview process, which for us in 2020 involved several hours of back-to-back interviews with various mentors. These interviews covered various areas like marketing, sales, PR, design, and more. Each session lasted about five to ten minutes, where we discussed our idea, and received feedback on our challenges, strengths, and weaknesses. After these rounds of interviews with every startup, the mentors would then make their decisions. There were quite a few startups in this stage, but fortunately, we made it through to the program.
A Typical Day at Startup Wise Guys
Q: What did a typical day look like once Effa was part of the program?
A: We were part of the sustainability batch, which was one of the longest, lasting three to four months. Our weeks were packed with various activities: mentor sessions, practical exercises, and networking opportunities. Startup Wise Guys has a vast network of mentors and entrepreneurs, allowing us to schedule calls and workshops on various topics. It was almost like returning to university or school, but much more enjoyable. We also had homework to do.
A great aspect of Startup Wise Guys is their focus on building a network among the founders. We developed strong friendships during the program, which continued afterwards, supporting each other as we progressed at different stages. This sense of community extended to the mentors we worked with during the accelerator. The program was incredibly busy, with our days filled from 9 am to 6 pm, but it was rewarding. It’s like being in an acceleration program while simultaneously running your business, which is quite a challenging but enriching experience.
Funding Journey with Startup Wise Guys
Q: Did Effa receive funding through the Startup Wise Guys program?
A: Yes, we did. We received angel funding just before the demo day, amounting to a substantial $500,000. Startup Wise Guys played a pivotal role in preparing us for fundraising, which was incredibly helpful, and assisted us in the legal aspects. It was our first major funding round, so finalizing everything was complex. They were with us every step of the way, from negotiations to document signing, providing invaluable support throughout the fundraising process.
Q: Was the funding you received in exchange for equity in Effa?
A: Yes, we traded equity for the funding. Specifically, it was $500,000 for 7% of our equity, valuing the company post-money at 3.5%.
Key Learning and Aha Moments at Startup Wise Guys
Q: Reflecting back, what were some significant learnings or ‘aha’ moments during the program?
A: One of the most profound experiences was working with Cristobal. He’s an incredible mentor but definitely challenging to work with due to his strict and straightforward approach. His sessions encouraged us to broaden our perspective, not just focus on creating a project and building a company with a global vision. He emphasized the importance of considering all aspects of scaling and future growth. This was crucial, especially since many early-stage startups tend to narrowly focus on immediate goals like securing a big customer or a single VC. Cristobal instilled in us the mindset that the real entrepreneurial journey begins after landing the first customer and closing the initial funding round. This realization was a game-changer for us.
Achievements and Challenges During the Program
Q: What were some of the challenges and achievements during your time with Startup Wise Guys?
A: The biggest achievement was definitely fundraising. We also managed to secure some key customers during the program. Personally, I learned a lot about management – how to hire, motivate, and manage people, skills I didn’t have before. These were significant milestones for me and the company.
Q: How has Effa progressed since completing the Startup Wise Guys program?
A: Post-accelerator, we’ve made substantial sales achievements. We’ve secured contracts with major companies like Delta Airlines, JetBlue Airlines, Marriott, and Hilton Hotels. We’re currently scaling and entering another round of fundraising. However, due to the war in Ukraine, we faced the challenge of relocating, first to California and now to Portugal. The current ‘venture winter’ makes fundraising especially difficult for consumer packaged goods startups like ours, but we remain resilient and focused on overcoming these challenges.
The Impact of Startup Wise Guys
Q: Has your experience with Startup Wise Guys influenced your growth strategy?
A: Definitely. They broadened our thinking in general but advised us to narrow our focus to sales. Before joining the accelerator, we considered various markets simultaneously, which they warned could be disastrous. They guided us to concentrate on one market at a time, starting with the travel industry and perfecting our approach there before moving on. This advice was crucial for our growth; without it, Effa’s journey could have been very different.
Effa’s Future Milestones and Long-Term Vision
Q: Looking ahead, what are the next milestones and long-term vision for Effa?
A: The immediate goal is fundraising, which is crucial for resuming our R&D activities that were halted due to the war. We’re currently focusing only on sales, but we need to return to product development to build a broader brand with various products. Another key objective is to expand our team and penetrate global markets. Although our focus is currently on the U.S. market, we aim to broaden our reach. As CEO, I’m tasked with both strategic and tactical planning to ensure we make the right moves towards these goals.
Q: How has Startup Wise Guys influenced your long-term vision and ability to achieve these milestones?
A: Startup Wise Guys has definitely played a role, but I always emphasize to early-stage founders that an accelerator alone won’t guarantee success. While they provide knowledge, context, and a network, most of the work and decision-making lies with the founder. We continue to keep Startup Wise Guys updated on our progress through regular reports. They offer advice and insights when they notice potential issues, but ultimately, the decisions on how to move forward rest with us as founders.
Advice for Aspiring Accelerator Applicants
Q: What advice would you give to those looking to apply to Startup Wise Guys or similar accelerators?
A: The key is to work hard, learn continuously, and be open to advice from mentors. However, developing a founder’s intuition is crucial to discern which advice applies to your situation. You don’t need to follow every suggestion. Be prepared to absorb as much knowledge as possible from the accelerator program and then make informed decisions based on that knowledge. Balancing openness to advice with trust in your judgment is essential.