Learnings from founding a blockchain startup with Porsche

One year ago, my two co-founders Malte and Andreas and I started Gapless, the world’s first blockchain platform for classic and premium cars. Our vision is to become the platform for #thingsyoulove and to be one of the first adoption cases for “normal” users which leverages blockchain technology.

We are grateful and humbled that our approach of bringing trust and transparency into the collectable market has been adopted so quickly by our users. This engagement drives us every day. Just in time for #Bits2019 in Munich, I would like to share some of my insights with you about our challenging and exciting first year.

Blockchain is still in its infancy for investors, partners and users

During the first months here at Gapless, we spoke to several investors to get their insights on our approach, our business model, and to collect tough questions. After all, smart people have clever questions. Most of them were not interested in Blockchain. The ones who were interested didn’t care about an adoption case like ours. Potential partners were willing to send their top-notch C-Levels to meet with us, but we realized that this was, unfortunately, less out of a true interest in the topic than to get a free presentation on the state of blockchain and startups.

Regarding users, most of them still associated Blockchain technology with Bitcoin and scams, but not with transparency and trust. We found it extremely difficult to find actual partners and investors that could truly understand what a Token Economy, Non Fungible Tokens or Proof of Authority could mean to the business ecosystem of the future. 

> Being a first mover in a market can be a blessing or a curse. Mostly, it turns out to be a curse.

Corporations are the new market makers in the decentral world

Corporations are smart - at least most of them. Porsche is, for sure. They have a clear market overview, plenty of capital, and a strong opinion on which technologies will be important in the future.

However, what’s missing in most of the founding scenarios by large corporations are the “let’s put all chips on the table” people who are willing to reduce family time, salary and a good night’s sleep for a small chance of being one of the few winners in a field full of losers. We were ready to take that bet and managed to get Porsche as a founding investor. With a corporate such as Porsche at our backs, we had a trustworthy partner that stood for excellence in quality, a trustful family brand, and innovation. As a blockchain startup, this was a great position to start, as access to exclusive data will be a deciding factor in our case. However, there is no such thing as free lunch. As a startup, you have to prove why and how you are contributing within the corporate structure to get access to the golden nuggets which are the data that can fuel your business model. There is no all-access pass, there are no shortcuts - you have to hustle like everyone else.

> Unfair advantages have to be earned. 

Always hire based on motivation

One of the main jobs in the first year as a founder is to properly hire, manage, and fire - and fire fast. There is no doubt: great people are crucial for every company. Especially when you’re a young startup, you need this kind of “I believe in the vision”-people. Motivation should always trump skills in every hiring decision. You have to accept that not everyone you hire will be the perfect fit. The most important thing is to react fast. Make sure your team has defined its core values, which will assist in deciding who’s a good fit. Great teams are quite picky. There are always the few rising stars within your team who are doing an outstanding job on a constant basis - they are the ones to develop.

> Outstanding people make all the difference.

You will not hit a home run on the first try - failure culture is key

Another thing I have learned at Gapless is that preparing for failure is key. You will never hit the ball out of the stadium for a home run on the first try. You will miss quite a few shots - most of them because you made the wrong decisions and, in our case, your team worked hard on bringing a feature live which is in the end not the right one. 

> Get used to failing and preparing for the next shot.

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#thingsyoulove - changing the way we think about collectables 

Just in time for Gapless’ first birthday (check out this very cool feature in German magazine Handelsblatt about Gapless), we are pleased to welcome 15,000 vehicles to the platform. The largest digital garage holds more than 80 automobiles, and most of the users come from Great Britain, Germany and the U.S. Nearly every brand of car is represented on the platform, and a particularly large number are premium models and classic cars with a high value as collectables and with long traditions behind them. 

At Gapless, we believe in the growing need for ownership and individuality – both today and in the future. At the same time, decentralized platforms are increasing in importance and will support the development of digital marketplaces focused on the needs of owners and retailers. 

And of course, we also want to take a look ahead: Classic cars are just the beginning of the journey for Gapless. In the next expansion stage, we want to enter the premium goods and collectables marketplace. Watches, vehicles, boats - our vision of Gapless is to create a platform for #thingsyoulove, where people gather to immortalize their favourite pieces.