Tag Archives: Construction

GenieBelt’s great 2017

I realized a while ago, that on my blog I have done only sporadic updates on how things are evolving with my own startup, GenieBelt. Too bad, because things have been more than normally exciting especially the last one and a half year, and the journey so far is a good story of persistence and ambition, which I think startup interested people can learn from.

As I wrote back in 2013, the starting point for GenieBelt was that Construction is a huge industry hurt by quality & cost problems, and it seemed straight forward that modern day technology and product usability focus could help massively – and on the back of that we could “easily” build a great company. Things turned out – as you can expect – to be a bit more complicated. But hey, that’s what makes these journeys entertaining and educational.

First of all, it took us three long years to go from idea to a beta product that really worked well for customers. For three years we walked through the desert having endless product iterations and strategy discussions. Tenacity, ambition and a great internal partnership made us get through it all. And maybe also having a bit more luck than un-luck!

We have been fortunate, that a number of visionary customers understood, what we tried to do and wanted us to succeed because they felt the pain themselves from communication and coordination flows not working in Construction. They gave us one of the the most valuable things for an early stage startup: hands-on, detailed and credible product/use-case feedback. But even with valuable data on the intricacies of Construction workflows, then it took us three years to get there. Why?

Construction is not only a huge USD 10 Trn. industry, but it is also a complicated sector to understand, e.g. the many different roles (clients, main contractor, multiple subcontractors, adviser this, adviser that, etc.), all projects having different participants, the participants changing roles between projects, etc. etc. One of my partners, Gari, calculated that there are 70 Million different kinds of Construction projects that all have their unique set of characteristics. So of course there are challenges in figuring out how to make a platform, that can tie things together without getting too complicated.

Another of the big challenges in Construction, is that 80% of work/costs are used at the Construction site, but it is at the office most decisions are taken, and where the involved parties have digitized most of their processes. The link between site and office is broken, and that is one of the main sources of the industry’s trouble – and this goes for almost all of the 70 Million permutations. From the beginning, we focused exactly on the “site-to-office” link, since that is what no-one has fundamentally solved. The established solutions targeting Construction are PC-era products that does not cater for a good mobile experience. New “ConTech” startups are using the mobile revolution to close the gap in various ways, and we have followed our own, unique path.

What started to be clear for us end of 2015, and more and more so during 2016 were a number of learnings, that fine tuned our product and commercial strategy:

A: Use a visual expression that is familiar. My first idea for how we should structure and visualize the data flow on a project was influenced by the kanban model also used by Trello. However, when we got our product wizard, Bob, on board, he came up with an obvious idea that has worked incredibly well for us: in Construction you are used to Gantt charts, so use the same structure for all the communication, i.e. build a living, dynamic Gantt structure for how you communicate and share data. Totally logical when you are being presented for it the first time, but someone needs to get the idea and execute on it.

B: Clarification of our Why/Product Road Map. From the beginning, we talked about improving workflows on construction projects and over time build some kind of analytics around this. In the beginning, I personally positioned  our solutions end-result as “Construction Managers need to look good and sleep well”, and that is still an effect of our offering, but over time we came to a better way to describe what our platform brings: transparency, accountability and overview to Construction. So much of the problems in Construction is because the participants don’t know what’s going on. They know what the plan is (or at least what the outdated plan said), but they don’t know actual status/progress update. Designing a platform that creates transparency on progress and performance would be a tremendous achievement. This is not only about launching a new solution to the industry, but it is becoming a thought leader on how the culture in Construction regarding collaboration and communication needs to change. We need a behavioral change and our solution and go-to-market approach should facilitate this in the most user friendly way. This is a much bigger challenge, but building the platform that can achieve this inherently also brings bigger benefits to Construction than just adding digital tools to an existing, yet imperfect process. Good – our ultimate ambition is to build a great company that can change construction for the better, and the opportunity is right in front of us. We are not just digitizing an existing process, we are facilitating a real change on how to manage construction projects. This deeper insight pushed us forward.

C: Shifting customer segment focus. Originally, we believed our core market would be small & medium sized ( SME) main contractors. In our journey, we realized that even though there are clear benefits for all participants in the construction value chain, then the part of the value chain that most clearly has benefits from more transparency and accountability in construction are the Clients & Developers. The Main Contractors also benefit, but they are at the same time more nervous for the effects of transparency, therefore some of them are not ready to change. The most strategic thinking General Contractors get it, but some are still focused on preserving the old and broken habits of the industry. We can therefore see, that even though we sell to all participants, then the majority of our customers are either Clients/Developers or those Main Contractors really willing to modernize and improve. And our customers are mainly mid-sized and big, because they are the one’s that best understand the need for systemic change. The smaller players will join as the industry changes, but it will be the mid-sized and bigger ones that will push the hardest for this change.

D: Commercial strategy based on hybrid sales approach. As a starting point, we assumed that we would use online channels to generate leads, and that the majority of those leads could be closed via low-touch channels. As our product- and customer focus evolved, we can conclude that our commercial strategy de-facto is much more of a hybrid. For sure, we have shown a very good ability to create traffic and leads online (and we will further improve that), but most of our revenues are closed with a sales force working online or in the field, i.e no touch only has a marginal impact on our revenue growth. Our commercial strategy will be a hybrid model of no-touch, low touch and some high touch sales, which is absolutely fine, since our unit economics are very healthy (MRR pr customer multiple times higher than anticipated helps a great deal), and we have people on board that have experience in scaling commercial organisations.

There are obviously many more details in the story, but the above four adjustments to our original battle plan have been pivotal in getting product-market fit and a commercial strategy that accelerated GenieBelt.

There have been plenty of errors along the way. One of the classical errors we have made is to let the product stray off course when the main direction had problems getting traction. We did a bit of snagging features in the beginning which we should not have done – closed down again. We did a bit of documents & drawings, also shut down. Classic start-up stuff when you get impatient iterating on your core use case.

So plenty of problems, but ultimately we have come far even though we of course know there is still a long way to go. Some of our achievements really make us proud, and they are part of the foundation for the coming years.

1: Our Ambition. Both the original founder team as well as the partnership team we have build over time is very ambitious. For most people it must sound crazy to have a small group of people deciding to change a big industry – but building a Great Company that can do that, is exactly what we want. One of the effects of that has been to deliberately not build the obvious products, that other ConTech companies built. The ConTech software startups have in general focused on snagging, health & safety and other products where an existing workflow is digitized. That is smart, since it’s more straightforward to design the product, and get customers engaged. Quick pay-off, and it of course moves Construction forward. But the basic problem of transparency, accountability and wider collaboration is not attacked head-on to the same extent, and therefore the transformative nature of the solution is not as the platform GenieBelt is offering. Our ambition meant we had to do something that no-one had done before: creating a platform that “connected site to office, and data to decision makers”, and that took longer time. But now that it works, then it is a transformative solution, more uniquely positioned and more significant in it’s impact. And better chance for building a truly Great Company. Having this ambitious mindset caused trouble the first three years, but now it is paying off.

2: Our Partnership. Today GenieBelt is run by a partnership of five guys (and yes, sorry – we’re all men!). Three Danes, two British. Two with Construction background, three with none. Four with good sense of humour, one with non-classified and very troublesome sense of humour. Four with plenty of startup experience, one has GenieBelt as his first startup. Three in their 40’s, two in their 30’s. Three that are hunters, two that are not yet, but secretly wants to become hunters. One and a half who are a football fan, three that just doesn’t get it. And all five of us are fathers with daughters and sons. So, we are a mixed bag, with very different backgrounds and mindsets. But we are glued strongly together by our shared ambition & vision for GenieBelt as well as a strong respect for each others professional and social contribution. We have already seen plenty of difficult moments, and we have come through all of them getting tighter in the process. One of our achievements is, that we have been able frictionless to change CEO twice, first in the initial year from me to Gari, and then in 2016 when we started building scale and commercial activities from Gari to Ulrik. Every time we have come out stronger. Personally, the partnership is a big reason why I enjoy the GenieBelt journey, and it is essential for my belief that we have a chance of achieving our ambitious goals.

GenieBelt partnership September 2017 when we celebrated taking an important decision – no further comments!

3: Our Culture and Organisation. With solid roots in our partnership philosophy, we have build our organisation from 12-14 people one and a half year ago to now 40+, based mainly in Copenhagen, but also London and Lodz. As is the norm for startups in Copenhagen, our organisation is very international with nearly 20 different nationalities, so at HQ the Danes are outnumbered. When growing the team from a small group of people to platoon sized and beyond organisations typically experience “cultural shakes” (more about that in a blog post some other day), and often the culture changes for the worse. To counter this, we have been very value driven. Due to some of us experiencing growth journeys before, we have focused on steering through the shakes to come out on the other side, with an organisation that is well glued together. One of the things we have done is to define and be explicit on our values; CotB, BIW, BoB, Respect and NoBS – values we try to stick to when taking HR and strategy decisions (NB: humour is deliberately left out as something we value, since too many laughs at the office has a tendency to create inefficiency and lack of focus – and is in general boring). So far we have succeeded in maintaining a vibe good people thrive in, and we intend to work hard to secure this as we move towards a company sized organisation, because the soft assets are usually the hardest assets in the long run.
Random GenieBelt’ers 2016-17

Four and a half year in, but it’s still early days. We have hardly scratched the surface of what can be achieved, but the snowball is rolling now. Together with many good people among Main Contractors, Subbies, Construction Clients, Developers, Advisors, other ConTech startups and Construction Industry influencers we are certain that change is now finally coming. We can all look forward to better housing, infrastructure, office space and anything else that the fascinating Construction industry produces. On time, on budget, quality spot on, less waste/environmental impact/injuries – what’s not to like!

Construction of Strasbourg cathedral, Alsace, France, engraving after a pen and ink drawing by Theopile Schuler, 1821-78, French Romantic illustrator and painter. Strasbourg Cathedral or the Cathedral of Our Lady of Strasbourg was begun in the 11th century and completed in 1439. The drawing shows the flying buttresses outside the nave and many medieval construction processes. Picture by Manuel Cohen


Why the Apple iWatch might be targeting your home

I normally doesn’t comment on various tech hype issues on this blog, but I will make an exception with the Apple iWatch because it is related to something I have spend a bit of time on, and where I have a personal interest: the intelligent home (& car) of the future.

There has been a lot of hype re this watch, and commentators/bloggers/journalists has pointed out it has emphasis on social communication and fitness with a bit of payment thrown in, while others has talked about it being a luxury fashion object. Well, I’m sure all of that is right, and those arguments will help to give iWatch an initial momentum the first couple of years, but I also think there is a much bigger category Apple ultimately wants to target in the 5-10 year perspective. Everybody agree, that Apple is not just launching a watch but a device that will be a platform for a future, massive business. Fitness is not a big business in the eyes of Apple, payments is pretty big, but even bigger is the category “everything-I-put-in-my-home”.

I am getting quite a good insight into the world of Construction, professionally through Geniebelt, and privately because I’m doing a bit of work on my farm. Especially the latter has made me look at how we will change the way we live in and interact with our home. For 100 years (or so …) we have gradually been adding all kinds of electric gadgets to our homes, everything from lighting bulps and practical machines (the refrigerator probably being the most important one) to entertaimnent products (TV, radio, etc.) to modern day machines connected to the internet (PC, iPad, etc.).

Now all the craze is about the internet of things, whereby we will connect everything to the internet, so we can get loads of data on our environment, machinery and home in order to live a more convenient life. How awesome, imagine that all the gadgets in your home talked to you, and you could manage them all. Control lighting in all of the house with the touch of a finger, increase ventilation/temperature a bit before getting out of bed, turn off the TV when the kids forgot to when sitting in the next room, open the door when the repair man needs to get in but you are shopping, change the music from 1Direction to Pink Floyd, start the coffee machine while still moving the lawn, turning off the alarm before going downstairs in the morning, etc, etc. – endless use cases.

I am obviously not the first to spot this trend, but the question I have asked my self the last year is, how should I manage all these connected devices and sensors? The first answer would be “your smartphone”. Well, yes – and no! When I’m at work, I sit with my iPhone (just got my new iPhone 6, love it) and it is always within reach, just in case some very important person called me to say very important things. However, when I’m home, then I’m home and don’t want to be a slave of the phone. It might be on another floor than me, and definitely in another room. So, it is not convenient for me to use my phone to manage all my home gadgetry – it’s no better than getting up from the couch and walk to the light switch/try to find the TV remote controller/go to the Spotify speaker/etc.

But, if I had a watch on my arm, that would all be very different. I would in most cases be ok to wear a watch at home, very different than running around constantly with the in-size-ever-increasing smart phones. I think ultimately this is a key use case that Apple is gunning for. The interface needed to manage pretty much any device and sensor can be fitted to an iWatch. Look at the remote control for the Apple TV – isn’t that already perfectly designed to the iWatch?

From Apple’s perspective, the calculation goes like this: we are the most valuable company in the history of mankind, so how can we grow even bigger in a meaningful way? They need to address absolutely huge markets in order to move the needle, so putting together a cunning plan to be the platform for the intelligent home of the future sounds about right. And throw in the ability to also operate your car using an Apple platform plus some payments etc. and they are pretty much only missing energy, weapons and drugs.

This is a very long term vision for Apple, and it does take the power and stamina of a company like Apple to pursue such a vision. It will take a long time and lots of investments before Philips Hue lighting systems, Samsung smart fridges, Danfoss thermostats, Nilan ventilation , big Sony’s full-monty-system or small Form’s smart sensor and a few thousand other companies accept Apple is the gatekeeper to their products and services. But the watch idea is solid, and it makes sense to get started early on, and avoid positioning the watch right now as the interface to your home, because that position would disappoint consumers. The key thing for Apple is to 1) start building a general use case for the iWatch, while 2) working hard on getting a lot of partners onto their platform – something they tend to be pretty good at. Gradually the brand and use case is being build with a position in the upper end of the market at first, apps are being developed by the relevant suppliers and Apple is building momentum as the platform to integrate all the stuff you want to interact – including all the devices in our home, which as an aber-dabei will be much more than people realise today, e.g. the intelligent toilet to check your healt status. And in the beginning it is anyway mainly affluent people who are going to invest in this stuff for the house, so price points at $500 and up makes sense.

I think – and hope – that this is an integral part of the real plan behind Apple’s big push behind a product category, which in it self is tiny compared to phones & computers. This is not about watches, fitness or luxury products, it’s the first major assault from Apple’s side in the future battle to run your house and all its smart devices. This will be fun and interesting to watch. And “no”, I don’t own any Apple shares.



GenieBelt – the Genie to help Construction, now with funding

We, the construction genies from GenieBelt, just raised an angel round of $½ Million, yehaa! That’s not a lot of money compared to some bigger funding rounds I have done in the past, but it’s exactly what we need and the feeling is as good as when I did £40 Million rounds. And what will the money be spend on?

screensaver_1920x1200 GenieBeltLovesConstruction

Together with a few other guys I founded a new company about half a year ago. A company which has high ambitions of helping the small- and medium sized businesses in the construction industry to improve the way they handle construction projects. Digital tools has been used in many years in construction, and also among the SME’s, but what we are building will be different than anything else the industry has seen. Here’s a bit of background.

Back in February I met up with my old mate, Peter Bang. Peter and I studied economics together many (many-many, too many-many) years ago and also had a stint abroad as well, where we broadened our horizon in business, British ale beer, and snooker. Peter left Uni and has stayed loyal to the same company ever since, which is a very rare thing these days, but that is probably also because it’s a very successful company, Velux. They make building materials and is especially renowned as a world leader in roof windows, i.e. Peter knows a bit about the construction industry.

We ended up talking about how his recent experience from refurbishing his house had been less than good, and since I was planning to refurbish my farm, we came to the conclusion that someone should build a work-flow management system that could help construction managers to better run small and medium sized projects. Mobile, cloud, super slick UI and all that – done deal, easy peasy, next!

I started doing research in the area, which – despite my fascination with big construction machines and power tools – is not that familiar to me, but then (the usual story) I started meeting a couple of people that had a much more personal angle on the Construction industry, and also supported the idea, i.e. Nikolaj/CTO and Joachim/everything-commercial.But the big event that took this forward was meeting Gari who just happens to have a construction engineering background and was putting together the pieces of his own start-up with two other guys (Francisco & Kacper). Their project was as a starting point more narrow than what I was considering (they still won Venture Cup twice though), but Gari and his team did have a longer term plan. And so it began …

2013-09-05 08.56.50

It’s been half a year now, and our 10-12 man team is now running full speed ahead. We just recently partnered up with a guy who knows more about our space than most: Bob, who is the co-founder and CEO of a company that some years ago tried to do partly what we are doing now, but the technology was not quite ready, and he never had the kind of resources we are deploying now. Bob has taken our UX capabilities to new highs, stellar person.

Some of our team members are in London and Poland, but the main part is sitting in Copenhagen, where I’m spending a couple of days a week at our office, and it’s nice again to be involved at the very early stages of company building. That is always a very humbling experience.

“So again; what exactly is the product”? you might think – we will get back on that. Right now the entire team is chasing our product vision, by doing use case research, UX’ing and developing so we are moving quickly ahead. Some time in by summer 2014 we can show version 1, and we plan to amaze you. Building companies based on new stuff is not easy, but the team, the idea and the market is there.

NB: thanks to the angels which have supported us so far, e.g. Ditlev, Claus, Troels, Mat & Giorgio – we will do our utmost to make you look good!