17 February 2017
ReVibe Energy, a 2014 Venture Competition finalist, share insights from their latest successful funding round
Malati Khadka, Climate-KIC’s Community Hub Manager, hosts a Q+A session with ReVibe Energy, a 2014 finalist in the Climate-KIC Venture Competition.
ReVibe Energy’s technology is amongst the most innovative in the field of vibration energy harvesting.
Their technology transforms vibrations into electricity addressing a critical need of a sustainable, mobile and self-sufficient power source. Very recently, ReVibe Energy raised €400,000 of investment. We talked to the CEO of ReVibe Energy, ViktorBörjesson, about their experience and strategies to raising funds. According to Viktor, seeking out investment is more than just about strong negotiation skills and good numbers. It is also about empathy to investors’ interest, self-awareness and honesty.
Read our insightful Q&A with Viktor and get some valuable tips on funding.
Tell us a bit about the recent investment round in ReVibe Energy.
The investment was made by previous investors as well as new investors, creating a strong group of shareholders in ReVibe Energy. We raised €400,000 in this round, enough capital to let us expand our team, push sales effort even further and continue the journey we’ve started. It does truly mean a lot for us to be able to use this investment to bring ReVibe Energy to another level, sales- and technology wise.
What is ReVibe Energy’s approach to raising fund? Where do you look and what are your strategies?
Our approach have always been humble but still ambitious and enthusiastic. To raise capital to a hardware company is quite difficult in today’s start-up environment where ICT companies usually get the most attention, something we’ve had tremendous respect for. The challenge for us was to get our investors, both previous and new, to see the long term potential and not look for a quick exit, something that is more likely in a software company.
We looked for investors that liked us as human beings, respected and trusted our abilities to elevate this company. This is very important to us as a “bad” investor might end up causing poor relationships between the shareholders respectively and the operation team. The process itself was divided in two parts:
1) Our “meet and greet” part where we talked to many investors to find out what they where looking for, how they worked, etc. to sort out the good ones. At this point, no negations took place.
2) The part where we actually negotiated and talked numbers, but we would like to emphasise that this still is a phase where the relationship between investor and start-up is hugely important. Don’t walk in to the room with the intent of negotiating your way to the best deal in the history of investment without considering the investors position – it will only destroy the relationship.
What are some key preparations you made before going out there seeking investment?
1) Know your business. If you don’t know where you are heading, and why you’re heading this way the investors certainly won’t.
2) Don’t lie. If you are unsure about something (it might be expansion plans, revenue streams, etc.), be honest about it. Instead of lying, explain why you are unsure and how you plan to overcome the uncertainty.
3) Be yourself. Be just the person you are, don’t pretend. The cliche of that investors invest in the team more than the idea actually is true. You’ve already started your own business, you’re an entrepreneur. They love that!
Can you share with us some important things you learned from this round of investment?
The biggest learning is that you’re never fully educated within something. We have completed our first investment round and a lot of people ask us for advice around the topic. But what is important for us to remember at this point is that there is a huge number of people who have succeeded and pushed beyond this point before us. Our point is, do not ever become complacent. Try to be humble but still as ambitious as only entrepreneurs can be and learn from the surroundings! Investors do actually know what they are talking about, so learn from them!
We thank Viktor for his time and wish ReVibe Energy all the success for future.
Interviewed by Malati Khadka
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