Without support but with success, the PIVID-19

A few days ago the second edition of BBdays4IT festival ended. During it I had a chance to talk to representatives of Polish startup scene. We discussed the support that Polish innovators received in this pandemic-dominated year. We talked about the response strategies of various organizations, their effects and challenges, including those for the IT industry, which, like few others, does not complain about its condition.

I was asked to conduct interviews within the startup section of the festival, and I wondered if we can escape from the dominant topic of our lives for six months. Unfortunately, COVID put our activities (Startup Podbeskidzie Foundation) on hold. As an organization based on networking and events, we still face the challenge of finding a new model of functioning and achieving our statutory goals. In this situation, I took the opportunity to talk to Tomek Snazyk and Sebastian Ma?ka, about how the last months have changed the reality in the startup sector, investors, and funding.

Startups in the era of COVID

The first speaker was Tomek Sna?yk, President of Startup Poland Foundation — the main institution representing the whole ecosystem of Polish startups. The foundation cooperates with the government and other institutions to create appropriate laws and a strong community to help Polish startups to function, succeed and go beyond the borders of the country. We have begun to discuss the support tools received by Vistula riverside startups. Unfortunately, Polish innovativeness in the era of COVID could not count on appropriate help “in advance” — even though the problem of the pandemic, like no other, requires firm and unconventional solutions. Where there were attempts to help from the top, it came out rather moderately. I will mention the government’s STOP COVID ProteGo Safe application for contact tracing for infected people. The implementation was surprising with the number of errors and Polish people did not want to use it (since June the software, which cost 2 million zlotys, reached only 2 percent of Poles). In addition, there were also problems in communication and a great reluctance to install applications with open surveillance functions hidden.

Start-ups could basically count on the same assistance as for other companies, i.e. support in the form of exemptions, payment of social security contributions and grants/loans related to the decrease in turnover, which was not adequate to their actual needs. Let’s remember that the problems of startups were much bigger — young innovative companies (often with an inflated team ready to scale services) had to deal with withdrawal of funds by investors, and suspension of conversations about subsequent rounds of support. Their situation was really not to be envied.

Fortunately, startups have creativity and innovation in their DNA, and thus the ability to pivot and seek solutions and new opportunities. Young companies took advantage of this difficult period to successfully try to create something completely new. The innerHub company dealing with micro navigation and storage systems has designed a fast in production respirator, Apena Remont specializing in production line renovations has created a line for mass production of protective masks, while Seedia, producing smart city benches, has offered dispensers with disinfection fluid powered by solar batteries. These are only three examples, and there are a lot of them.

According to Tomek, the pandemic did not bring any outstanding pivots on the Polish startup scene. Rather, the broadening operations and offer expansion dominated. However, should we be surprised? In the face of such uncertainty on the market and investors’ decisions (let’s remember what moods we were in, in March and April) it was difficult to risk abandoning all our asses and accumulated experience for the sake of the niche created by the pandemic, whose life span we are not able to predict.

Among the institutions that positively surprised us, I can certainly mention the National Centre for Research and Development and PFR. The governmental institutions were constantly carrying out their projects and the work of NCBiR committees was carried out remotely, which helped a lot in collaboration. PFR, in turn, tried to organize competitions/hackathons and programs in which it was possible to obtain funding for projects clearly helping the society with its new problems and challenges.

Without any malice, I also state that despite everything we were very lucky as Polish people. Digitization of services for the citizen, which has been a standard abroad for years, in Poland it has allowed to recently launch projects as ePrescription or ePuap. Thanks to this, despite the limitations caused by the lockdown and subsequent restrictions, many aspects of life could function quite normally.

The pandemic also forced the change of approach in bureaucracy and the thinking of many managers to be accelerated. Many organizations began to respect contracts made in the form of scanned documents, email arrangements and teleconferences, which previously met with rather resistance or denial. It turned out that it is possible to settle a contract from home. This is a great success, so let’s hope that these standards will remain in place for good.

Against all odds

In the era of a pandemic, companies were faced with the challenge of choosing the right path. Entrepreneurs had to decide whether they were going down the adaptation path or whether it would be better for them to fight. My second guest, Sebastian Ma?ka, the originator and co-founder of Versum startup providing solutions for the hair and beauty industry, decided to face the challenge with his team and take the fighting strategy. During the peak of the pandemic, despite the loss of 90% of subscription income, the company continued to work creatively, and the supply of materials and tools to customers did not stop even for a moment. What’s more, Versum was at the head of the #iwantthesalon social campaign. In my opinion, it was a fantastic action, and from the point of view of time, it had a great impact on the company’s image — because in its actions it showed what their approach to the customer and business is.

To complement those who are not familiar with what Versum is, the easiest thing to do would be to say that it is a system for managing beauty salons — including hairdressers, beauty salons, spas. The application supports all business processes, from customer appointments to warehouse management or conducting extensive financial analyses.

The lockdown hit the beauty industry, and thus Versum, with a tsunami of force. It took only a few weeks for most subscribers (the application runs on a subscriber system) to stop providing services, which should theoretically prevent Sebastian from functioning. Paradoxically, it turned out that the crisis situation strengthened awareness of the necessity of services provided by Versum. The stores, which were locked in place to return to normal functioning (although the word “normal” may still sound a little too much), were easier to organize with the moment.pl portal created by Versum among others. However, not only after but also during the top-down closing, the Bielski startup allowed the beauty industry to function and customers to continue to take care of their beauty — with the difference that is was remotely. How? Brilliant in its simplicity — allowing subscribers to sell their products online, along with usage instructions. For example, there have been times when hairdressers sold hair dye through an app, then made an appointment with customers for a 30-minute session during which they explained online how to properly perform the coloring process. Another idea implemented by Versum was the introduction of online vouchers, which salon customers could use after the COVID. The third area was education, i.e. webinars, thanks to which beauty entrepreneurs could learn, among other things, how to survive this most difficult period and how to prepare salons for opening.

Versum is a great example that enthusiasm and brilliance, supported by solid, professional knowledge, allows for survival in the worst crises.

The IT challenges

As part of the festival, I could participate in a panel entitled “Career in IT”. Together with several employers from this sector, we noticed that the increased number of new junior resumes in recent months is not only due to an attempt to change the industry in the face of difficult times, but also … The transition to remote work. Introducing a less experienced employee to an online project is not an easy undertaking at all. After all, challenges such as limited communication, little knowledge and lower efficiency stand in the way. However, there are other challenges that the IT industry has to face. We need to find a method “for juniors” to continue to effectively introduce them to their processes.

Conclusion

In a pandemic, as well as in life before it, businessmen manage as well as they are capable of facing the adversities of fate. Those who are flexible and able to see opportunities and problems turn into opportunities to do better.

To conclude, I would like to thank the organizers of the event, who put a lot of effort into making the several days of the online event professional. We did it! Great respect for the effort and effect, which is invaluable not only for the local IT environment but also for the whole city! I look forward to next year, when I hope we will meet in normal conditions.