What is Ringy?
Q: Can you briefly introduce yourself, your company, and your startup journey?
A: I’m Taavi. I’ve been an entrepreneur since I was 19, starting in the logistics industry and then leading a large recycling center. During this time, I founded Ringy, a startup that deals with refurbished electronics globally. We operate in over 22 countries, connecting refurbishers with various sales channels as an aggregator service.
When we started about two and a half years ago, we initially relied on investor funding. However, as market conditions changed, we shifted our strategy to focus on profitability. This pivot was a crucial learning experience for us. We’ve been profitable for over a year, independent of investor funds.
The concept of refurbished electronics is gaining traction, especially in today’s economic climate. People are seeking sustainable and cost-effective alternatives to new tech. Our refurbished devices are practically new, with replaced parts and removed scratches. It’s like buying a demo car with minimal mileage – almost indistinguishable from new.
This market, currently a small fraction of total electronics sales in Europe, is poised to grow significantly. We benefit both during economic booms and recessions, as our model doesn’t rely on market stability. The refurbished electronics industry, especially in Europe and France, is burgeoning.
Personally, I, along with my friends and family, exclusively use refurbished devices. It’s not just about running Ringy; it’s a sustainable choice that aligns with my values and lifestyle.
Why Startup Wise Guys?
Q: What motivated you to join the Startup Wise Guys accelerator program?
A: Initially, Ringy had a different business idea focused on a deposit refund system for electronics, aiming to combat electronic waste and support the circular economy. We were still determining our direction, so we started looking for an accelerator. Being based in Estonia, joining Startup Wise Guys, the largest in the EU, seemed like the perfect match for us. We met some people there and decided to apply.
We were part of their first sustainability batch, which was highly competitive, with 350 startups applying, and only 10 were selected, including us. Our team’s strength was a key factor in our selection. We were a group of experienced C-level professionals from various industries, which made us a strong bet for the program.
During the accelerator, we pivoted our business model multiple times. We started with slight tech and no budget, but our team’s adaptability and experience were crucial. We agree that a good team is more important than a perfect idea. Within four months, we were already generating revenue, starting from scratch.
We underwent several pivots, guided by excellent mentors with international experience. They helped us avoid common startup mistakes and gave us valuable feedback on our ideas. Our success at Wise Guys led us to join their program twice: first in the sustainability batch and later in the growth program for established companies. The growth program was instrumental in scaling our business from hundreds of thousands to millions in monthly sales.
The Application Process
Q: Can you describe the application process for Startup Wise Guys and what a typical day looked like during the program?
A: The application process started with submitting a slide deck. We initially uploaded our presentation and then participated in a pre-accelerator, which involved a demo day and intensive sessions. These sessions focused on perfecting our company’s pitch, condensed into a precise three-minute presentation. Despite not being fully confident in our business idea then, our ability to effectively communicate our concept was key to our selection.
Once accepted, the program was extremely intensive, running from 9 AM to sometimes as late as 9 PM, and this was mostly online due to COVID-19. My teammate Cristo and I would coordinate our participation, ensuring one of us was always present. It was a demanding schedule, but we often joked that it was like an MBA on steroids. This comparison comes from our experience at the Estonian Business School, where Wise Guys is now located.
The accelerator was a fast-paced, comprehensive learning experience, equipping us with the knowledge and skills necessary to launch and run a startup. It was a different approach compared to the other businesses I had established before. In a startup, you’re prepared to operate at a loss for the first couple of years. We were aware of this and had raised capital to support our initial phase, securing 550,000 euros from private investors in Estonia.
Funding Insights and Resilience in Startup Growth
Q: Regarding funding, how much did you receive from Startup Wise Guys, and was it exchanged for equity?
A: In the first pre-accelerator, we received 55,000 euros, which was exchanged for equity. The amount of equity varied depending on the stage of the company. Established companies typically give up less equity. Later, in the growth program, we received an additional 150,000 euros, totaling over 200,000 euros in investment from Startup Wise Guys. We’re planning another funding round soon, and I’m confident they will invest again.
The value of Startup Wise Guys goes beyond just the financial aspect. The network access and knowledge they provide are invaluable. For a startup, getting an introduction to major investment funds is crucial, as these funds receive thousands of investment applications daily. A warm introduction is often the only way to get noticed.
Raising capital is incredibly challenging and requires resilience. There were days I had up to seven investor calls, needing to maintain focus and energy for each. Rejection is common in this process, and it’s important not to take it personally. Most rejections are soft, leaving the door open for future possibilities. However, a direct ‘no’ is often more helpful than prolonged uncertainty.
The key to raising capital is perseverance and being prepared for frequent rejections. Startups must be resilient and adaptable. Despite rapid growth and impressive numbers, rejections and criticisms are part of the journey. It’s essential to stay focused and not take these setbacks personally. The startup world is full of surprises, and being ready to pivot and adapt is crucial for survival and success.
Ringy’s Current Status and Future Aspirations
Q: What is the current status of your company, and what are your plans for future growth and investment?
A: Currently, Ringy has about ten employees, and we’re looking to hire five to ten more people next year potentially. At the moment, we’re not in desperate need of cash. We must be strategic about how we utilize funds. We believe in raising money only with a clear investment plan that will significantly grow our business. It’s not about having cash in the bank; it’s about ensuring that any investment we receive is effectively used to scale our revenues.
The accelerator has played a critical role in preparing us for our next milestones. When we first joined, the startup environment was booming, and it was relatively easier to raise funds. However, we also witnessed the challenges brought on by events like the COVID-19 recession and other global issues, which shifted investor focus to supporting existing portfolio companies rather than taking on new ones. Despite these challenges, there’s still plenty of investment available in the EU for startups with solid plans and growth strategies.
Advice for Entrepreneurs Considering Accelerators
Q: Any advice for those applying to startup accelerators like Wise Guys?
A: My advice to anyone considering an accelerator is to go for it. Don’t try to do it on your own. Accelerators like Wise Guys provide invaluable help, knowledge, and experience. With a portfolio of around 400 companies, they’ve seen and handled almost every imaginable startup challenge, from legal issues to funding, team building, and market expansion.
It’s a tough journey, and it’s not meant to be easy. Success in this field requires perseverance, focus, and an unwavering commitment to your vision. The rewards, however, are immense – seeing your business grow and succeed brings an indescribable sense of accomplishment and satisfaction.