Executive Summary
In this episode of Startuprad.io, host Jörn Menninger interviews Rafael Fietzek, Co-Founder of COMPREDICT. They discuss COMPREDICT's advancements in virtual sensor technology for vehicles, recent Series B funding, and crucial partnerships with major automotive manufacturers like Renault and Toyota. Rafael highlights the company's innovation in AI, regulatory compliance, and future goals, including securing more production deals and global expansion. They also delve into recruitment challenges, specifically the difficulty of hiring skilled international talent, and the importance of networking at conferences. Finally, Rafael stresses the significance of investor relations and strategic fundraising for sustained growth.
Introduction
Welcome to another exciting episode of Startuprad.io! Today, we're diving into the world of virtual sensors with our special guest, Rafael Fietzek, Co-Founder and Managing Director of COMPREDICT. Hosted by Jörn "Joe" Menninger, we'll explore COMPREDICT's innovative approach to automotive technology, focusing on their cutting-edge virtual sensors which promise to replace traditional hardware sensors with AI-driven software. We'll discuss the precision and reliability that these sensors offer, the challenges of securing production deals, and the pivotal role of compliance and certifications. Rafael also shares insights on how the company stays ahead in AI developments, their plans for future funding rounds, and the importance of hiring top talent in various technical fields. Join us as we uncover how COMPREDICT is making significant strides in the automotive industry, backed by notable investors like Toyota and Michelin, and their ambitious goals for global expansion. Tune in to hear how this groundbreaking startup is shaping the future of vehicle technology!
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Interview Highlights
Questions Discussed in the Interview:
Virtual Sensors Innovation
How do COMPREDICT's virtual sensors work, and what makes them more precise compared to traditional hardware sensors?
AI and Time Series Applications
What specific advancements in AI and time series applications is COMPREDICT leveraging to maintain its competitive edge?
Regulatory Challenges
How does COMPREDICT manage the balance between meeting necessary regulations and certifications while maintaining innovation and agility in their development processes?
Strategic Growth and Series C Funding
What are the main milestones COMPREDICT aims to achieve before pursuing their Series C funding round, and how do these milestones align with their overall business strategy?
Talent Acquisition and Recruitment
What types of expertise and experience is COMPREDICT looking for in new hires, and how do they prioritize these needs in the context of current market conditions?
Global Expansion Strategy
Considering the current globalization plans, such as their expansion to Japan and the US, how does COMPREDICT decide on strategic locations for their sales and technical teams?
Investor Relations
Why is it important for COMPREDICT to continually build relationships with potential investors, and how does this influence their preparation and strategy for future funding rounds?
Customer Acquisition and Networking
What strategies does COMPREDICT use to acquire new customers, especially within the automotive industry, and how do industry conferences and events play a role in this process?
Political and Regulatory Environment
Rafael Fietzek mentioned challenges related to employing skilled workers from outside Europe. What specific policies or changes would he recommend to political decision-makers to help startups like COMPREDICT?
Product Development and Reliability
Moving from small-scale experiments to series production introduces new challenges. How does COMPREDICT ensure the reliability and safety of their virtual sensors when deployed in millions of vehicles?
Key Takeaways
Here are the key points or takeaways from the interview with Rafael Fietzek, Co-Founder and Managing Director at COMPREDICT, on the Startuprad.io podcast:
Introduction
- Host Introduction: Jörn "Joe" Menninger welcomes the audience and guest, acknowledging partners like Hessen Trade Invest and Enterprise Europe Network Hessen.
- Guest Introduction: Rafael Fietzek, Co-Founder and Managing Director at COMPREDICT, is introduced.
- Special Offer: Announcement of a new partnership offering 2 free SEO optimized blog posts per month for Startuprad.io listeners.
Company Background
- COMPREDICT Overview:
- Founded based on Rafael’s PhD thesis.
- Develops virtual sensors (AI software) to replace hardware sensors in vehicles.
- Examples: replacing tire pressure sensors, contributing to predictive maintenance like tire tread depth and brake pad thickness.
Achievements
- Series B Funding:
- Recently announced ~$15 million USD (~€14 million).
- Previous investors include notable names like BlackBerry and Michelin.
- New investors: Toyota (via Woven Capital).
- Partnerships:
- Secured a deal with Renault Group (Renault, Alpine, Dacia) for virtual sensors in series production vehicles.
- Potentially the first virtual sensor company to achieve such a major deal.
Competitive Edge
- Precision and Innovation:
- Focus on innovation, particularly in virtual sensors claimed to be the most precise.
- Regular updates on AI advancements related to time series applications to stay competitive.
- Production Deals:
- Secured first serious production deals for their virtual sensors.
Regulations and Certifications
- Compliance Importance:
- Vital for production vehicles to ensure safety and reliability.
- Certifications, though slowing processes, are crucial for avoiding software failures.
Future Goals and Road Map
- Goals:
- Securing more production deals.
- Aiming for Series C funding round contingent on these deals.
- Expansion:
- Proceeding with international expansion, especially in Japan and the US, albeit with smaller teams due to market conditions.
Recruitment and Talent
- Hiring Needs:
- Looking for developers, automotive engineers, AI experts, salespeople.
- Prioritizing technical positions like software architects and C coders.
- Experience Relevance:
- For domain-specific roles, relevant experience is necessary.
- For AI experts, automotive experience is a plus but not required.
Investor Relations
- Continuous Networking:
- Open to discussions with potential investors despite recent financing round.
- Importance of building a network for future funding needs.
Market Dynamics and Strategy
- Current Challenges:
- Ensuring precision in millions of vehicles requiring extensive testing.
- Cautious spending due to tighter market conditions.
- Slower hiring and expansion plans but maintaining strategic growth.
- Series Funding Considerations:
- Balancing the right amount to raise without giving away too many shares or underfunding goals.
Customer and Sales Strategy
- Networking for B2B Sales:
- Building relationships with high-level contacts in automotive OEMs.
- Attending crucial conferences for credibility and connections.
Conferences and Events
- Trial and Error Approach:
- Identifying effective conferences through planning and dynamic execution.
Differentiation
- Maintaining Competitiveness:
- Focus on staying ahead in the field of maintenance and virtual sensors.
Closing Remarks
- Political Challenges:
- Rafael mentions difficulties in hiring skilled workers from outside Europe, advocating for streamlined processes for blue cards and government agency operations.
- Farewell:
- Host wishes Rafael good luck, hopes to have him back post-Series C funding.
- Rafael extends his gratitude and goodbyes.
These points encapsulate the main topics and insights shared during the interview.
Our Enablers
This recording is supported by HTAI and the Enterprise Europe Network Hessen
This recording was made possible by HTAI and the Enterprise Europe Network Hessen. These organizations have made tremendous contributions to helping startup businesses succeed and thrive, providing a range of services from helping to find grants to ongoing partnerships. By taking advantage of these resources, startup companies can network and develop innovative strategies for success on the international stage. The dedicated support of HTAI and the Enterprise Europe Network Hessen is paramount in providing startup businesses with the tools for lasting success. Look for our dedicated sub-podcast in partnership with them: Tech Startups Germany on our https://linktr.ee/startupradio
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About the Guest
In this episode, we are thrilled to welcome Rafael Fietzek (https://www.linkedin.com/in/rafael-fietzek/), the Co-Founder and Managing Director at COMPREDICT (https://compredict.ai/). Rafael, an innovator in the automotive technology field, has a profound background rooted in advanced AI applications and vehicle dynamics, which laid the foundation for COMPREDICT. His journey began with a compelling PhD thesis on virtual sensors, providing the theoretical backbone for what would eventually become a groundbreaking company. Under Rafael’s leadership, COMPREDICT has emerged as a prominent player in the automotive industry, specializing in the development of virtual sensors. These sensors, powered by advanced AI algorithms, replace traditional hardware sensors in vehicles, enabling more efficient and cost-effective solutions for monitoring various vehicular parameters.
Rafael's vision steers COMPREDICT towards pioneering innovations while maintaining a sharp focus on reliability and compliance. The company's acclaimed virtual sensors can perform complex tasks such as tracking tire pressure and brake pad thickness, contributing significantly to predictive maintenance and operational efficiency. Their technology not only reduces costs but also enhances vehicle safety, positioning them at the forefront of automotive advancements. With an impressive funding history featuring investors like BlackBerry, Michelin, and most recently Toyota via Woven Capital, Rafael has successfully secured substantial support for his vision. His dedication to research and development solidifies COMPREDICT’s standing as a leader in automotive AI technology, continually pushing the envelope through relentless innovation.
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Automated Transcript
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:00:01]:
Hello, and welcome, everybody. This is Joe from start up rate dot o, your start up podcast and YouTube blog from Germany, bringing you another interview together with Hessen Trade Invest and the enterprise Europe network Hessen. Before we go into that, I would like to welcome our returning guest, Rafael. Hey. How are you doing?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:00:23]:
Hello. Glad to be here.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:00:25]:
Totally my pleasure. We have 2 service announcements before we get started. We have a new partner exclusive for start up radio listeners. Did you know that an average blog gets you way more traffic than a social media post? We have a special deal with moderniq's.com where start up radio listeners can create 2 free SEO optimized blog posts per month in less than a minute. You will get the, the 2 free posts for your blog each month only if you use this link in the show notes. And there is some light technical difficulties, so please stay on the link when you sign up. Only then you'll get the 2 pieces. And, of course, Hessen Trade and Invest and the Enterprise Europe Network Hessen, this recording was made possible by HDI and the E and Hessen.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:01:18]:
These organizations have made tremendous contributions to helping start up businesses succeed and thrive, providing a range of services from helping to find grants to ongoing partnerships. By taking advantage of these resources, Starbucks companies can network and develop innovative strategies for success on the international stage. The dedicated support of HDRI and the EEN is paramount in providing start up businesses with the tools for lasting success. Look for our dedicated sub podcast in partnership with them called Tech Startups Germany. Now that we got this out of the way. Rafael, I already said that you are a returning guest. Can you but can you give us a little brief introduction to who you are and your company, ComPredict, what it does?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:02:14]:
Sure. So I'm, Rafael. I'm the CTO of ComPredict. I did a PhD at the Technical University in Darmstadt, and together with my colleague, we founded them ComPredict. It's all based the basic idea is based on his PhD thesis. And what ComPredict does, are virtual sensors. So this is a piece of AI software which can be used to replace hardware sensors in vehicles. So for instance, replace TPMS sensors, which measure the pressure in tires or, lip lip replace a pitch angle sensor, which, measures, the the pitch of the vehicle and is used for headlight leveling.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:03:03]:
Virtual sensors can also be used to enhance the measurement capabilities of the vehicle. So for instance, you can measure forces and torques at different points on the vehicle with virtual sensors, or you can, use this more for predictive maintenance use cases like, measure the remaining tire thread depth and, measure how thick the brakes are and how thick the brake pads are.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:03:31]:
I have to admit, I didn't know that there is even something like a pitch angle sensor in the car, which kind of outed me as a non engineer and not a car aficionado. I get in the car. I drive. I get out of the car.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:03:48]:
Yeah. In in order in order not to blind people, you have to measure the pitch angle of of the vehicle.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:03:54]:
Mhmm.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:03:54]:
Because headlights nowadays are much more powerful than they used to be 10, 20 years ago. So if if the car has the wrong pitch angle, it will blind people. So there's a sensor for that. And this sensor costs around €15 per vehicle, and this can be replaced by a by a virtual sensor, for instance.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:04:16]:
See, that that we are already at the business case because you guys do it cheaper. But before we get into that, yes, you're a returning guest. Yes. In the past, we interviewed you because, BlackBerry and Michelot invested in you. But this time, you announced a series b funding of, am I right, 15,000,000 US dollar US dollar something like 13, 13 something €1,000,000?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:04:43]:
Yeah. So something like that. Yeah. I think I think almost 14.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:04:49]:
Almost 14 in June this year, 2024, and we already introduced you to our audience in September 2022. It's already 2 years ago. And you believe it. It's incredible.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:05:03]:
Yeah. Time flies here.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:05:04]:
Yeah. Time flies. That's true. And the the the main anchor point is now, that you invest that you got an investment, series b. And we'll talk a little bit through what this changes for you, what you're planning to do with the money and all that stuff, especially given the current, environment. At the time of recording this on the 25th of September 2024. There is a big discussion out there, especially, Germany's largest car manufacturer, VW, is even considering to, close plants, which is something nobody thought about even a year ago that something like this can happen. So there is at least the idea of a crisis in German car manufacturing.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:05:51]:
So that's something we would touch. Let's let, the the we skip all the introduction and contradict, but we'll link down here in the show notes our amazing interview 2 years ago. With Michelin, BlackBerry, and newly woven capital among your investors, Has this impacted your market position and credibility in the automotive industry? Because everybody in the automotive industry knows, oh, Michelin. Yes.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:06:22]:
Yeah. Maybe most people don't don't know that, behind woven capital is, Toyota. Mhmm. So so, of course, having the biggest automotive manufacturer interested in in your virtual sensors, this gives us a lot of credibility. So, yeah, this is this is this is great for for us. Yeah. And and we work together with, Toyota closely and then, of course, with the Woven Woven team as well. So, yeah, this gives us a lot of credibility and a lot of traction, which we have have also used, to to get our 1st series application deal.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:07:08]:
So, our virtual sensors will be in series production vehicles.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:07:14]:
Can you already tell which manufacturer? Maybe Toyota? No.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:07:20]:
No. It's actually, our first, series production deal is with, Renault, Alpine, and Dacia, so the whole, Renault group. So, these vehicles will get virtual sensors for, tire wear and brake wear, and, we will be providing them. So so this this has also given us a lot of, credibility and traction. So and I think, we're the we're the 1st virtual sensor company to have such a major deal. That is pretty cool.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:07:55]:
First heard it on Stuttgart Radio, by the way. We we we've been already sliding in our second question about product development and expansion. So, if you go into the the serial production of cars, this is a totally different ballgame than, for example, when you have, just just some experimentation of small series. What what was different for you? Because that is something you're talking about, the tires. I'm talking about the brakes. It's it's not just like you hear a strange sound when you are responsible for the audio, but this is really essential to keep the car secure and keep it keep keep it on on, the road. So, what have been some of the challenges, and what did you learn there in order to get, like, into serious production of cars?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:08:49]:
Yeah. So so so, of course, the the main challenge is is to be able to guarantee the precision across of millions of of of vehicles. Yeah. So this this can all be only be solved by extensive testing. This is this is what what we have done, and, there was a lot of work put in from from the team. So so thanks to the team. Yeah. This was a lot of great work and a lot of testing.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:09:16]:
So there's no there's no shortcut into into getting a deal like that. The the product has to be good, and it has to deliver precise results with millions of of vehicles. Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:09:33]:
You now do have quite a lot of funding on the company account. Right? But by the way, I I talked once to somebody who got a really big investment, and he said, with a small investment, you buy something like a PlayStation and a kicker table for your office. And do do you also buy something, like, really small for the team from there? And what are you planning, to do with all the money, especially given the current situation in Germany? I just listened to the news this morning, and it kind of looks like a zero growth stagnation here within Germany.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:10:10]:
Yeah. So so we we've already bought a a billiard table, but a couple of years ago. Yeah. So so so you have you gotta have some startup cliche thingy in the office. So that's beanbags? No. No. No. No.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:10:27]:
Not not so much. We we just have have the the billiards, the pool table. Yeah. So so, yeah. Regarding the the the second part of of your question, yeah, so so the, if I understood correctly, you were asking about, the the times in in in in the market for for VC funding is a little bit more tight than, 2 years ago or 3 years ago. Right? Mhmm. Yeah. So, we, of course, see that, and we we, of course, adapt our growth plans according according to that.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:11:08]:
So so, we will, of course, we will hire new people. This is this is what what, what the money is is for, but maybe not as quickly as as we, intentionally planned. But but be a little bit more cautious because, you always have to, take into account with this market situation that rising the next round will take longer probably.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:11:38]:
Yes. Series c is also a pretty serious step because then you're big, then you're thinking about buying other companies, merging with other companies, going going really big. That is a serious step. But, also, series b is a pretty serious step. Usually, rule of thumb is, 10,000,000 annual recurring revenue, and then you're good to go. I was wondering when you've been planning for this because, most people who are listening will know this because more than 90% are listening for professional reasons to start up radio according to our audience survey. If you do so, please go down here in the show notes and leave us feedback. There is a new feedback form that we just set up, 2024.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:12:21]:
But for the people who are not that familiar with it. So, basically, you have an idea what you wanna do. You have an amount of money, what you wanna do with it. Did you also work with different scenarios like best case, mid case, worst case? What were the minimum amount was you were willing to raise and the maximum amount you could work with? Were that some thoughts that went through your mind in the preparation of the fundraising?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:12:49]:
Yes. Of of of course, we we had to be the extensive discussions about about that. Yeah. So so, how to structure the the round. You you don't want to you you just want want to raise the exact amount you you need for for the next 2, 3 years. Yeah? So so you if if you raise too much, you're, you're basically given away too too many shares at a too low price. If you raise too little, you cannot reach reach your goals. Yeah.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:13:19]:
So so we did some extensive planning and also also talking with with the investors to to be at what we think is is the right spot for for our journey for the next, 2 or 3 years. Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:13:35]:
That was one of the important points that I want to make here because you said you talked to your investors, so the already existing investors. You guys know us. Is this realistic? That is something you should definitely do because otherwise go ahead.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:13:52]:
I mean I mean, yeah, they they they have a lot of experience. They talk to a lot of startups. They they have experience for the market. They know what, it's possible to to raise. So so yeah. To to talk to to to to your investors as much as possible in when preparing around.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:14:12]:
You already said you took some steps due to the current, condition. You're not hiring at fast. Did you also do some stuff to reduce your burn rate, for example, limited or cut plans for international expansion or something like this?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:14:30]:
No. We we'll still do do international expansion, especially in in, of course, since Toyota invested in Japan and, also the US, but, with smaller teams. Mhmm. So so yeah. But but, yeah, we we are pretty pretty strong in Europe. We we also have a a a good foothold in in Asia. We start to get traction in in the US, but we need, as you say, boots on the ground, especially in in Japan and the US to to really scale there as well.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:15:04]:
Nothing really substitutes personal contact. The
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:15:08]:
That's true.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:15:08]:
The the the that we are actually sliding into into the next question I have for you. You plan to hire in the coming month. Can you give us an idea of the roles and focuses? Because we're not going into too much detail because Yeah. Everybody who's interested in joining Compriddick, you'll find, links to your career website down here in the show notes wherever you're listening to this or watching this. And if you are listening on our Internet radio station start up dot radio, Google for our blog.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:15:43]:
Alright. Yeah. I I can give you a short overview on who we, who we plan to hire. Of course, we we, plan to hire in key technical tech positions. Yeah. We always look for for good tech people. And as I said
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:16:01]:
Since we do have usually SaaS and AI software startups here, technical positions for you are more automotive engineers, or are they real tech talent like coders, developers?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:16:16]:
No. It's it's it's kinda multifaceted, with us. So so we we have real, we have we have automotive engineers.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:16:26]:
Like real engineers?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:16:29]:
That's not what what I meant. So we have automotive engineers who who have experience in vehicle dynamics and and really know the the physics of of of the vehicle. And then we we have a strong, AI and machine learning team who who really know the ins and outs on how to structure models, how to prepare the data, and and things things like that. So so so these are these are the the two groups who work together. And then we have also, like, a a team which is also more focused on on the product and everything which is needed for the product, like, data engineering, DevOps, front end, and and things things like that. But, yeah. So so we are basically looking for people in all positions, especially since since we we also go into serious production. We look for, people who, have experience in in the whole software act architecture of the vehicle and also, prolific in in c coding, which is still the main, main thing if you want to run something on a vehicle since it's so efficient.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:17:51]:
And
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:17:54]:
Go ahead. Sorry.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:17:56]:
And, of course, since we, start building our sales organization, we're looking for for people, salespeople in Japan and and, also also the US.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:18:08]:
I I was wondering because we we're now touching the point geographic spectrum, which we actually already discussed. I was wondering, were you planning to set up base? Because everybody who thinks about automotive in the US thinks about Detroit, or is it for you more important to be in a software environment? Think Silicon Valley, San Francisco Bay Area, or the Silicon Alley in in New York City. What are your decision points here?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:18:39]:
Yeah. This is this is not this is a tough question, actually. So so there's still still a lot of big players in Detroit, of course, and they catching up quickly to to, I would say, the, more software players like Tesla or Rivian or or or things like that. So, there's no clear answer to that. Yeah. You you have to be everywhere all at once. Yeah. So, yeah, there's no easy answer to that.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:19:10]:
Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:19:13]:
We talk about virtual sensors here. They're evolving quickly. How do you stay ahead of technological advancement and ensure you stay competitive? What we're seeing right now in in the news is something like Intel is is really fighting to stay competitive, and they have been the epitome of innovation, of technology for decades. So it could happen to everybody. And I was wondering, how do you start already implementing this into your, company culture?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:19:47]:
Yeah. You kind of answered your own own question. You have to heavily invest invest into into, innovation, of course. And, this is this is what what we do. Yeah. So so we we have a a big research and and development team always always work to improve our virtual sensors to, on the one hand, make them, smaller so so, that they can run on ECUs directly in the vehicle. On the other hand, make them more precise. So, yeah, innovation is absolute key in this in this area.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:20:21]:
Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:20:26]:
I'm always interested in how you get your customer acquisition, your clients. But I do believe it's it's also since you're b to b, like like, 99% of our guests are b to b, so it's always a little different game. You cannot just spam those people. That usually doesn't work and get you get you at least with the IT administrators on the naughty list. That's true. So and also in terms of car manufacturing, there is not, like, a gazillion of them. So you you cannot really step on their toes and annoy them too much. How how do you approach sales there?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:21:10]:
Yeah. So, it is also a very good question. So so net networking is
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:21:15]:
my best.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:21:17]:
Networking is is, you have to build your your your network, and you have to, reach people who are high up in in the hierarchy at the automotive OEMs. So so this is this is the key to to making a successful, b to b sale. And this just takes time. Yeah. That, as I said before, there are also no shortcuts in in this area. So so you you have to be present at the most important conferences. You you have to, work your way up to to, to the top of the high hierarchy so so you get really good contact. What what really helps is is, what we also discussed at the beginning that you get more credibility, because, you have great investors and you you get more credibility because you you have, signed big deals like a like a serious production deal.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:22:16]:
So so this help helps to put you on the map of the important people. Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:22:24]:
You said conferences. And after corona, I had, for a few month, the impression that conferences are almost something of the past. You know? You had all those Hangouts, all those virtual digital meetings, but, actually nothing really substitutes, direct contact. Not to mention specific events here, especially in in the car manufacturing area. They are also in the news when new models are introduced and stuff like that. But how did you, from the start, approach your research? What conferences are important?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:23:04]:
Yeah. This is a so so, there there was a lot of trial and error. Yeah. I cannot I cannot say that this this is what was like a master plan from from from the beginning. And this is also dynamic. Yeah. A conference can be good the 1 year and, not so good the year after. So, there's a there's a lot of of trial and errors.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:23:29]:
And, I think right now, we we have found a a set of conferences which which, where we meet the right people, but but it's also good always to try something new as as well because, there's always also luck involved, yeah, that maybe you go to a conference which is a little bit off topic, but you find somebody somebody there who could really, help you out or discover a field field of collaboration you you haven't thought about before. So so it there's always in in conferences, it's it's always a little bit trial and error, and there's always a little bit of luck involved here. But we try also to plan this as as good as possible. But, yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:24:21]:
I I know that you try to plan an event, what you do, the people you wanna meet, it all goes out the window at least, 2 hours in the conference. And, usually, when you have a few, like, overarching goals, you still, reach some of them. What I have to admit, WOOD is an awesome tool are all those apps in conferences so that you don't need to look around always on the batches who is the person, who is this person. But you can also get directly in touch with them. Plus, I became a big friend of even reaching out to people after those conferences and send them just basically Calendly link, let's talk, if if I haven't haven't had the chance to meet them in person.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:25:05]:
Yeah. So, of course, once we decide to go to go on on a conference, we we really plan it. So so we really look look up who's who's there, who we wanna talk to. We use these those apps as well, yeah, as as as you said. Yeah. So so once we decide on a on a on a conference, it's it's, it's, well organized as well from our side.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:25:30]:
I'm talking a little bit about the competition here. How do you differentiate your company from something like similar offers, maintenance, virtual sensors, or something like that? Because you're always in competition.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:25:45]:
Yes. Of course. All all there's always competition. Yeah. And, as I said before, yeah, we are ahead because of our, you know, innovation potential. So so we do a lot of r and d on virtual sensors. We believe we we have the most precise and, virtual sensors, which, are able to be embedded directly in vehicles. So so and I think our strategy, paid out since since we, as far as I know, are the first to to to get a serious production deals for for for for this topic.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:26:29]:
I've I've read, with many, many companies that they do have a certain set of rules for innovation, a certain innovation culture. Do you read a lot about this and try to implement it, combined with a trial and error? Is this something that works for you?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:26:51]:
So so we always try try to, especially regarding AI, we always try try to to read, all all the interesting publications and papers in in our fields to so so so to be really up to date there and and know know what's what's going on, who who has developed, this, yeah, for for for us. They're very important. It's all all things around AI for time series applications. So this is where we'll we'll really try to stay, stay ahead. Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:27:37]:
We we already get close to the end, and you're holding up pretty well here. Thank you very much. Do you in terms of working in real produced cars that are out on the street, you do have to comply with the regulations. Do did you face some hurdles in the past? And how how do you overcome them?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:28:00]:
I mean, you have to have some some certifications, and and, each certification is is is, is kind of a hurdle which requires a lot of work from, a lot of people of of the team. And, also, once, you have gained a a certain certification, people have to also stay on it. Yeah. You have to follow the processes, which, of course, makes you makes you a little bit slower, but makes you also, safer on the other side. There's always always a trade off. Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:28:41]:
Fast and break things just doesn't work if you're in regulated business.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:28:45]:
Yeah. That's that's that's true. Yeah. The software, we deliver to to series production vehicles just has just has to to work. Yeah. We we cannot risk, having a big failure in in the millions of of vehicles. So so, of course, certification is very important, especially regarding this.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:29:09]:
And and since you're working with tires and brakes, there are literally life at stake, so I totally understand. They cannot accept.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:29:16]:
Yeah. I mean, you can you can be a little bit more creative and and break things when it comes to to research topics. Yeah. And and and you you try out things. But but as as soon as we talk about serious production, things get more serious, of course.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:29:33]:
Ah, wordplay.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:29:37]:
I have not intended.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:29:39]:
We we we're now getting in towards the end of the interview. Before we get into our usual questions towards the end, there's just one more question I have prepared. The future road map, what do you must what milestones are you looking at in the next 2 or 3 years except for raising a CERC funding?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:30:00]:
Yeah. Be before raising a CERC funding, you have to bring yourself into the position to be to be able that that you're interest interesting to the investors. And, so our main goals are basic basically get more serious production deals for different different virtual sensors. Yeah. Get more, automotive manufacturers on board, sign more serious production deals. And once we have that, I I I I'm quite positive about the series c. But, yeah, it's it's, it's still a long way to go.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:30:39]:
Thank you very much for for, like, all the questions you had. A very, very busy time, and I've seen you, very, very sleep deprived before we, before, in the discussion we had before this. Thank you very much, nonetheless. We'll end up with our usual questions. I do believe, question number 1, we already answered. You're always looking for talented people, and we link down here in the show notes your, queries website. Right?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:31:08]:
Yes.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:31:09]:
Yes. And not only the developers are welcome, but also the automotive engineers. Just out of curiosity
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:31:17]:
And also salespeople. Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:31:19]:
Sales of course. Always salespeople. They'll give the the greatest applications at all. Nonetheless, just out of pure curiosity, would you only be interested in people, like, with car background, or would you also be open to somebody who is experienced in motorcycles?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:31:39]:
No. So so so, if if you if you like like a domain expert or an automotive engineer or company, of course, you you have to have have the domain expertise. So so you have to know about cars for other positions. If you if you're an AI expert, you don't really need so so we already have a lot of, automotive experience. So so the AI experts don't really need that much automotive experience. It's already in the company. It's always good when they have that, but it's not a prerequisite also for other positions. Yeah.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:32:17]:
If if
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:32:19]:
yeah. Let let me do some mind reading. One of the ideal candidates would be an experienced AI engineer who has a private table for cars.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:32:30]:
Of course. Yeah. But, as as I said, it's not a it's not a prerequisite. We have also, people working here who are not very much interested in cars, but, they they do a great job, in in, in in in their field here. So
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:32:47]:
They come to work with the bicycle? Yeah.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:32:48]:
There there's yep. Some people don't own cars. Not not everybody here. You're on on on cars. Yeah. So you don't have to be a a a a petrol head.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:33:00]:
Okay. We already talked also about, open to talk to new investors. DFC is at one point on the horizon, and I do believe you would be open to talk to potential new investors. Right?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:33:14]:
Yes. So so of of course, we we we are always open to to and talking to to investors. This is also a way to build our network there. So so, of course, we will always open to to talk to new investors. Since we closed the the financing round right right now, there is no no need to to talk about raising the next round. But, it's so good to be in contact, because raising financing grounds takes takes a lot long time, and, it's always good to to start early. Yeah.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:33:49]:
And the last question since this is in our series with the Hessen Trade Invest and the Enterprise Europe network, is there something like a question and concern and idea you would like to address to the political decision makers here in our amazing state of Hessen?
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:34:05]:
Yeah. So, we have we have a lot of people working for us who who are not from Germany, so so are from from other countries. Especially outside of of Europe, it's hard to to, get, get people employed with with a blue card. It takes forever to get an appointment at the, government agencies like the like the Auslander. So this is like a tedious and slow process which could be, really sped up. Yeah. So so this would help us because there there are also a lot of capable, people in other countries, who are interested to to to to, come here and and help a startup like like, us. So, all this process could could be much more streamlined.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:35:03]:
Great. Rafael, it was a pleasure having you here, by the way, your 35 minutes with question and all that. Best of luck. Hope to have you back when you raise CERC funding.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:35:14]:
Yeah. Thank you. It was a pleasure talking to you.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:35:17]:
It was all mine. Have a good day. Bye bye.
Rafael Fietzek | Co-Founder and Managing Director at COMPREDICT [00:35:19]:
Bye bye.
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