Latest / Deep Tech Germany – AI, Robotics & Frontier Innovation by Startuprad.io™ / COMPREDICT: AI Virtual Sensors for Automotive Engineering
Transcript
- WEBVTT 1 00:00:01.680 --> 00:00:05.359 Hello, and welcome, everybody. This is Joe from start up rate dot 2 00:00:05.359 --> 00:00:09.200 o, your start up podcast and YouTube blog from Germany, bringing 3 00:00:09.200 --> 00:00:13.040 you another interview together with Hessen Trade Invest and 4 00:00:13.040 --> 00:00:15.700 the enterprise Europe network Hessen. 5 00:00:16.615 --> 00:00:20.375 Before we go into that, I would like to welcome our 6 00:00:20.375 --> 00:00:24.135 returning guest, Rafael. Hey. How are you doing? Hello. Glad to 7 00:00:24.135 --> 00:00:27.895 be here. Totally my pleasure. We have 2 service 8 00:00:27.895 --> 00:00:31.540 announcements before we get started. We have a new 9 00:00:31.540 --> 00:00:34.680 partner exclusive for start up radio listeners. 10 00:00:35.380 --> 00:00:39.140 Did you know that an average blog gets you way more traffic than a 11 00:00:39.140 --> 00:00:42.680 social media post? 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And, of course, Hessen Trade and Invest and 19 00:01:10.045 --> 00:01:13.485 the Enterprise Europe Network Hessen, this recording was made 20 00:01:13.485 --> 00:01:16.865 possible by HDI and the E and Hessen. 21 00:01:18.365 --> 00:01:22.045 These organizations have made tremendous contributions to helping start up 22 00:01:22.045 --> 00:01:25.759 businesses succeed and thrive, providing a range of services 23 00:01:25.820 --> 00:01:29.500 from helping to find grants to ongoing partnerships. By taking 24 00:01:29.500 --> 00:01:32.799 advantage of these resources, Starbucks companies 25 00:01:33.180 --> 00:01:36.619 can network and develop innovative strategies for 26 00:01:36.619 --> 00:01:40.174 success on the international stage. The dedicated support 27 00:01:40.174 --> 00:01:43.695 of HDRI and the EEN is 28 00:01:43.695 --> 00:01:47.295 paramount in providing start up businesses with the tools for 29 00:01:47.295 --> 00:01:51.054 lasting success. Look for our dedicated sub podcast in 30 00:01:51.054 --> 00:01:53.190 partnership with them called Tech 31 00:01:55.190 --> 00:01:58.170 Startups Germany. Now that we got this out of the way. 32 00:01:58.950 --> 00:02:02.410 Rafael, I already said that you are a returning 33 00:02:03.030 --> 00:02:06.710 guest. Can you but can you give us a 34 00:02:06.710 --> 00:02:10.235 little brief introduction to who you are 35 00:02:10.375 --> 00:02:13.115 and your company, ComPredict, what it does? 36 00:02:14.695 --> 00:02:18.475 Sure. So I'm, Rafael. I'm the CTO of ComPredict. 37 00:02:19.255 --> 00:02:23.080 I did a PhD at the Technical University in 38 00:02:23.080 --> 00:02:26.680 Darmstadt, and together with my colleague, we 39 00:02:26.680 --> 00:02:30.360 founded them ComPredict. It's all based the basic idea is 40 00:02:30.360 --> 00:02:34.060 based on his PhD thesis. And 41 00:02:34.280 --> 00:02:37.925 what ComPredict does, are virtual 42 00:02:37.925 --> 00:02:41.445 sensors. So this is a piece of AI 43 00:02:41.445 --> 00:02:45.125 software which can be used to replace hardware sensors 44 00:02:45.125 --> 00:02:48.505 in vehicles. So for instance, replace 45 00:02:49.180 --> 00:02:52.800 TPMS sensors, which measure the pressure in tires or, 46 00:02:54.060 --> 00:02:57.500 lip lip replace a pitch angle sensor, which, 47 00:02:57.819 --> 00:03:01.340 measures, the the pitch of the vehicle and is used for headlight 48 00:03:01.340 --> 00:03:04.945 leveling. Virtual sensors can also be used 49 00:03:04.945 --> 00:03:08.565 to enhance the measurement capabilities 50 00:03:08.705 --> 00:03:12.545 of the vehicle. So for instance, you can measure forces and torques 51 00:03:12.545 --> 00:03:15.685 at different points on the vehicle with virtual sensors, 52 00:03:16.180 --> 00:03:20.020 or you can, use this more for predictive maintenance use cases 53 00:03:20.020 --> 00:03:23.860 like, measure the remaining tire thread depth 54 00:03:23.860 --> 00:03:27.380 and, measure how thick the brakes 55 00:03:27.380 --> 00:03:30.040 are and how thick the brake pads are. 56 00:03:31.395 --> 00:03:35.075 I have to admit, I didn't know that there is 57 00:03:35.075 --> 00:03:38.775 even something like a pitch angle sensor in the car, 58 00:03:39.474 --> 00:03:43.235 which kind of outed me as a non engineer and not a 59 00:03:43.235 --> 00:03:47.040 car aficionado. I get in the car. I drive. I get out of 60 00:03:47.040 --> 00:03:50.560 the car. Yeah. In in order in order not to blind 61 00:03:50.560 --> 00:03:54.319 people, you have to measure the pitch angle of of the vehicle. Mhmm. 62 00:03:54.880 --> 00:03:58.640 Because headlights nowadays are much more powerful than they 63 00:03:58.640 --> 00:04:02.325 used to be 10, 20 years ago. So 64 00:04:02.385 --> 00:04:05.985 if if the car has the wrong pitch angle, it will blind people. So 65 00:04:05.985 --> 00:04:09.205 there's a sensor for that. And this sensor costs around 66 00:04:09.665 --> 00:04:13.345 €15 per vehicle, and this can be replaced by a by a 67 00:04:13.345 --> 00:04:16.899 virtual sensor, for instance. See, that 68 00:04:16.899 --> 00:04:20.500 that we are already at the business case because you guys do it 69 00:04:20.500 --> 00:04:24.180 cheaper. But before we get into that, yes, you're a 70 00:04:24.180 --> 00:04:27.940 returning guest. Yes. In the past, we interviewed you because, 71 00:04:28.340 --> 00:04:32.175 BlackBerry and Michelot invested in you. But 72 00:04:32.175 --> 00:04:35.955 this time, you announced a series b funding of, 73 00:04:36.655 --> 00:04:40.435 am I right, 15,000,000 US dollar US dollar something like 74 00:04:40.815 --> 00:04:44.370 13, 13 something €1,000,000? Yeah. So 75 00:04:44.370 --> 00:04:47.750 something like that. Yeah. I think I think almost 14. 76 00:04:49.250 --> 00:04:52.150 Almost 14 in June this year, 2024, 77 00:04:52.850 --> 00:04:56.390 and we already introduced you to our audience in September 78 00:04:56.610 --> 00:05:00.165 2022. It's already 2 years ago. And you believe it. It's 79 00:05:00.705 --> 00:05:04.545 incredible. Yeah. Time flies here. 80 00:05:04.545 --> 00:05:08.165 Yeah. Time flies. That's true. And the 81 00:05:08.465 --> 00:05:12.145 the the main anchor point is now, that you 82 00:05:12.145 --> 00:05:15.730 invest that you got an investment, series b. And we'll 83 00:05:15.730 --> 00:05:19.490 talk a little bit through what this changes for you, what 84 00:05:19.490 --> 00:05:23.270 you're planning to do with the money and all that stuff, especially given 85 00:05:23.410 --> 00:05:27.090 the current, environment. At the time of recording this 86 00:05:27.090 --> 00:05:30.805 on the 25th of September 2024. There is a 87 00:05:30.805 --> 00:05:34.564 big discussion out there, especially, Germany's 88 00:05:34.564 --> 00:05:38.405 largest car manufacturer, VW, is even 89 00:05:38.405 --> 00:05:41.705 considering to, close plants, which is something 90 00:05:41.925 --> 00:05:45.640 nobody thought about even a year ago that something like 91 00:05:45.640 --> 00:05:49.240 this can happen. So there is at least the 92 00:05:49.240 --> 00:05:52.460 idea of a crisis in German car manufacturing. So 93 00:05:53.320 --> 00:05:55.820 that's something we would touch. 94 00:05:57.185 --> 00:06:01.025 Let's let, the the we skip all the introduction and 95 00:06:01.025 --> 00:06:04.785 contradict, but we'll link down here in the show notes our amazing interview 96 00:06:04.785 --> 00:06:08.245 2 years ago. With Michelin, BlackBerry, 97 00:06:08.384 --> 00:06:11.685 and newly woven capital among your investors, 98 00:06:12.660 --> 00:06:16.420 Has this impacted your market position and credibility in the 99 00:06:16.420 --> 00:06:20.260 automotive industry? Because everybody in the automotive industry knows, oh, 100 00:06:20.260 --> 00:06:23.080 Michelin. Yes. Yeah. 101 00:06:25.065 --> 00:06:28.425 Maybe most people don't don't know that, behind woven 102 00:06:28.425 --> 00:06:32.025 capital is, Toyota. Mhmm. 103 00:06:32.025 --> 00:06:34.765 So so, of course, having the 104 00:06:35.545 --> 00:06:39.225 biggest automotive manufacturer interested in in your virtual 105 00:06:39.225 --> 00:06:43.050 sensors, this gives us a lot of credibility. So, 106 00:06:44.070 --> 00:06:47.590 yeah, this is this is this is great for for us. Yeah. And and we 107 00:06:47.590 --> 00:06:51.430 work together with, Toyota closely and then, of course, 108 00:06:51.430 --> 00:06:54.250 with the Woven Woven team as well. 109 00:06:55.190 --> 00:06:58.715 So, yeah, this gives us a lot of credibility 110 00:06:59.015 --> 00:07:02.715 and a lot of traction, which we have have also 111 00:07:04.375 --> 00:07:07.755 used, to to get our 1st series application 112 00:07:08.135 --> 00:07:11.520 deal. So, our virtual sensors will be in series 113 00:07:11.520 --> 00:07:15.040 production vehicles. Can you 114 00:07:15.040 --> 00:07:17.780 already tell which manufacturer? Maybe Toyota? 115 00:07:19.280 --> 00:07:23.085 No. No. It's actually, our first, 116 00:07:23.325 --> 00:07:26.945 series production deal is with, Renault, 117 00:07:27.005 --> 00:07:30.445 Alpine, and Dacia, so the whole, Renault group. 118 00:07:30.445 --> 00:07:33.425 So, these vehicles will 119 00:07:34.420 --> 00:07:38.040 get virtual sensors for, tire wear and brake wear, 120 00:07:38.740 --> 00:07:42.420 and, we will be providing them. So so this this 121 00:07:42.420 --> 00:07:45.780 has also given us a lot of, credibility and traction. So 122 00:07:46.580 --> 00:07:50.415 and I think, we're the we're the 1st virtual 123 00:07:50.415 --> 00:07:53.475 sensor company to have such a major deal. 124 00:07:54.415 --> 00:07:58.175 That is pretty cool. First heard it on Stuttgart Radio, by the way. We 125 00:07:58.175 --> 00:08:01.935 we we've been already sliding in our second question about 126 00:08:01.935 --> 00:08:05.630 product development and expansion. So, if 127 00:08:05.630 --> 00:08:09.330 you go into the the serial production of 128 00:08:09.710 --> 00:08:13.310 cars, this is a totally different ballgame than, for 129 00:08:13.310 --> 00:08:16.910 example, when you have, just just some 130 00:08:16.910 --> 00:08:18.770 experimentation of small series. 131 00:08:20.465 --> 00:08:24.065 What what was different for you? Because that is something you're 132 00:08:24.065 --> 00:08:27.665 talking about, the tires. I'm talking about the brakes. It's it's not just 133 00:08:27.665 --> 00:08:31.505 like you hear a strange sound when you are responsible for 134 00:08:31.505 --> 00:08:35.350 the audio, but this is really essential to keep the 135 00:08:35.350 --> 00:08:38.950 car secure and keep it keep keep it on on, 136 00:08:39.190 --> 00:08:42.970 the road. So, what have been some of the challenges, 137 00:08:43.029 --> 00:08:46.650 and what did you learn there in order to get, like, into serious 138 00:08:47.029 --> 00:08:50.815 production of cars? Yeah. So so 139 00:08:51.115 --> 00:08:54.815 so, of course, the the main challenge is is to be able to guarantee 140 00:08:54.875 --> 00:08:58.655 the precision across of millions of of of vehicles. Yeah. So 141 00:09:00.279 --> 00:09:03.960 this this can all be only be solved by extensive testing. This is this 142 00:09:03.960 --> 00:09:07.720 is what what we have done, and, there was a 143 00:09:07.720 --> 00:09:11.240 lot of work put in from from the 144 00:09:11.240 --> 00:09:15.045 team. So so thanks to the team. Yeah. This was a 145 00:09:15.045 --> 00:09:18.565 lot of great work and a lot of testing. So there's no there's 146 00:09:18.565 --> 00:09:22.245 no shortcut into into getting a deal like that. The the 147 00:09:22.245 --> 00:09:25.145 product has to be good, and it has to deliver 148 00:09:27.260 --> 00:09:30.560 precise results with millions of of vehicles. Yeah. 149 00:09:33.980 --> 00:09:37.820 You now do have quite a lot of funding on the 150 00:09:37.820 --> 00:09:41.635 company account. Right? But by 151 00:09:41.635 --> 00:09:45.475 the way, I I talked once to somebody who got a really big investment, and 152 00:09:45.475 --> 00:09:49.095 he said, with a small investment, you buy something like a PlayStation 153 00:09:49.155 --> 00:09:52.950 and a kicker table for your office. And do do you also buy 154 00:09:52.950 --> 00:09:56.570 something, like, really small for the team from there? And what are you planning, 155 00:09:57.190 --> 00:10:00.970 to do with all the money, especially given the current situation 156 00:10:01.030 --> 00:10:04.710 in Germany? I just listened to the news this morning, and 157 00:10:04.710 --> 00:10:08.245 it kind of looks like a zero growth stagnation here 158 00:10:08.245 --> 00:10:11.625 within Germany. Yeah. So so 159 00:10:11.925 --> 00:10:15.685 we we've already bought a a billiard table, but a couple of years 160 00:10:15.685 --> 00:10:19.465 ago. Yeah. So so so you have you gotta have some startup 161 00:10:19.605 --> 00:10:21.705 cliche thingy in the office. So 162 00:10:23.820 --> 00:10:27.519 that's beanbags? No. No. No. No. 163 00:10:27.660 --> 00:10:31.339 Not not so much. We we just have have the the billiards, the pool 164 00:10:31.339 --> 00:10:35.120 table. Yeah. So so, yeah. 165 00:10:37.835 --> 00:10:41.675 Regarding the the the second part of of your question, yeah, so 166 00:10:41.675 --> 00:10:45.055 so the, if I understood correctly, 167 00:10:45.515 --> 00:10:49.355 you were asking about, the the times in in in in 168 00:10:49.355 --> 00:10:53.160 the market for for VC funding is 169 00:10:53.160 --> 00:10:56.760 a little bit more tight than, 2 years ago or 3 years 170 00:10:56.760 --> 00:10:59.900 ago. Right? Mhmm. Yeah. So, 171 00:11:01.640 --> 00:11:05.100 we, of course, see that, and we we, of course, adapt our 172 00:11:05.400 --> 00:11:09.055 growth plans according according to that. So so, 173 00:11:09.615 --> 00:11:13.375 we will, of course, we will hire new people. This is this is what what, 174 00:11:14.095 --> 00:11:17.935 what the money is is for, but maybe not as 175 00:11:17.935 --> 00:11:20.915 quickly as as we, intentionally 176 00:11:21.454 --> 00:11:25.160 planned. But but be a little bit more cautious 177 00:11:25.220 --> 00:11:28.820 because, you always have to, take into account with 178 00:11:28.820 --> 00:11:32.520 this market situation that rising the next 179 00:11:33.940 --> 00:11:37.394 round will take longer probably. 180 00:11:38.575 --> 00:11:42.415 Yes. Series c is also a pretty serious step because then 181 00:11:42.415 --> 00:11:46.175 you're big, then you're thinking about buying other companies, merging with other 182 00:11:46.175 --> 00:11:49.855 companies, going going really big. That is a serious step. 183 00:11:49.855 --> 00:11:53.640 But, also, series b is a pretty serious step. Usually, rule 184 00:11:53.640 --> 00:11:57.320 of thumb is, 10,000,000 annual recurring revenue, and 185 00:11:57.320 --> 00:12:00.780 then you're good to go. I was wondering 186 00:12:01.080 --> 00:12:03.820 when you've been planning for this because, 187 00:12:04.865 --> 00:12:08.625 most people who are listening will know this because more than 90% are 188 00:12:08.625 --> 00:12:12.325 listening for professional reasons to start up radio according to our audience survey. 189 00:12:12.465 --> 00:12:15.745 If you do so, please go down here in the show notes and leave us 190 00:12:15.745 --> 00:12:19.250 feedback. There is a new feedback form that we just set up, 191 00:12:19.870 --> 00:12:23.709 2024. But for the people who are not that 192 00:12:23.709 --> 00:12:27.170 familiar with it. So, basically, you have an idea what you wanna do. 193 00:12:27.630 --> 00:12:31.214 You have an amount of money, what you wanna do with it. Did you also 194 00:12:31.214 --> 00:12:34.735 work with different scenarios like best case, mid 195 00:12:34.735 --> 00:12:38.435 case, worst case? What were the minimum amount was 196 00:12:38.815 --> 00:12:42.654 you were willing to raise and the maximum amount you could 197 00:12:42.654 --> 00:12:46.435 work with? Were that some thoughts 198 00:12:46.550 --> 00:12:50.389 that went through your mind in the preparation of the fundraising? Yes. Of 199 00:12:50.389 --> 00:12:54.230 of of course, we we had to be the extensive discussions about about that. Yeah. 200 00:12:54.230 --> 00:12:57.920 So so, how to structure the the round. You you don't want to 201 00:13:00.295 --> 00:13:03.755 you you just want want to raise the exact 202 00:13:04.055 --> 00:13:07.895 amount you you need for for the next 2, 3 years. 203 00:13:07.895 --> 00:13:10.875 Yeah? So so you if if you raise too much, you're, 204 00:13:11.575 --> 00:13:15.015 you're basically given away too too many shares at a too low 205 00:13:15.015 --> 00:13:18.730 price. If you raise too little, you cannot reach reach 206 00:13:18.730 --> 00:13:22.410 your goals. Yeah. So so we did some extensive planning and 207 00:13:22.410 --> 00:13:24.590 also also talking with with the investors 208 00:13:26.490 --> 00:13:30.025 to to be at what we think is is the 209 00:13:30.025 --> 00:13:33.785 right spot for for our journey for the next, 2 210 00:13:33.785 --> 00:13:37.545 or 3 years. Yeah. That was one of the important points that 211 00:13:37.545 --> 00:13:41.370 I want to make here because you said you talked to your investors, 212 00:13:41.510 --> 00:13:45.269 so the already existing investors. You guys know us. Is this 213 00:13:45.269 --> 00:13:48.730 realistic? That is something you should definitely do 214 00:13:48.790 --> 00:13:52.245 because otherwise go ahead. 215 00:13:52.565 --> 00:13:55.765 I mean I mean, yeah, they they they have a lot of experience. They talk 216 00:13:55.765 --> 00:13:59.545 to a lot of startups. They they have experience for the market. They 217 00:14:00.165 --> 00:14:03.865 know what, it's possible to to raise. 218 00:14:05.399 --> 00:14:08.839 So so yeah. To to talk to to to to your 219 00:14:08.839 --> 00:14:12.060 investors as much as possible in when preparing around. 220 00:14:12.760 --> 00:14:15.880 You already said you took some steps due to the current, 221 00:14:16.200 --> 00:14:19.625 condition. You're not hiring at fast. Did you also 222 00:14:19.625 --> 00:14:22.925 do some stuff to reduce your burn rate, for example, 223 00:14:23.865 --> 00:14:27.645 limited or cut plans for international expansion or something like this? 224 00:14:30.190 --> 00:14:33.950 No. We we'll still do do international expansion, especially in 225 00:14:33.950 --> 00:14:36.690 in, of course, since Toyota invested in Japan 226 00:14:37.310 --> 00:14:40.610 and, also the US, but, 227 00:14:41.150 --> 00:14:44.865 with smaller teams. Mhmm. So so yeah. 228 00:14:44.865 --> 00:14:48.545 But but, yeah, we we are pretty pretty strong in Europe. 229 00:14:48.545 --> 00:14:52.245 We we also have a a a good foothold in in Asia. 230 00:14:52.305 --> 00:14:55.925 We start to get traction in in the US, but we need, 231 00:14:57.020 --> 00:15:00.380 as you say, boots on the ground, especially in in Japan and the 232 00:15:00.380 --> 00:15:04.080 US to to really scale there as well. 233 00:15:04.780 --> 00:15:08.620 Nothing really substitutes personal contact. The That's 234 00:15:08.620 --> 00:15:12.225 true. The the the that we are actually sliding into into the next 235 00:15:12.305 --> 00:15:16.065 question I have for you. You plan to hire in the 236 00:15:16.065 --> 00:15:19.904 coming month. Can you give us an idea of the roles and focuses? 237 00:15:19.904 --> 00:15:23.505 Because we're not going into too much detail because 238 00:15:23.665 --> 00:15:27.120 Yeah. Everybody who's interested in joining 239 00:15:27.120 --> 00:15:30.899 Compriddick, you'll find, links to your career website 240 00:15:31.279 --> 00:15:35.120 down here in the show notes wherever you're listening to this or watching this. 241 00:15:35.120 --> 00:15:38.639 And if you are listening on our Internet radio station start up dot 242 00:15:38.639 --> 00:15:41.435 radio, Google for our blog. 243 00:15:43.015 --> 00:15:46.775 Alright. Yeah. I I can give you a short overview on who we, 244 00:15:47.575 --> 00:15:49.915 who we plan to hire. Of course, we we, 245 00:15:51.575 --> 00:15:55.200 plan to hire in key technical tech positions. Yeah. We 246 00:15:55.200 --> 00:15:57.780 always look for for good tech people. 247 00:15:59.760 --> 00:16:02.740 And as I said Since we do have usually 248 00:16:03.280 --> 00:16:06.900 SaaS and AI software startups here, 249 00:16:07.040 --> 00:16:10.845 technical positions for you are more automotive 250 00:16:11.145 --> 00:16:14.925 engineers, or are they real tech talent like coders, 251 00:16:15.065 --> 00:16:18.045 developers? No. It's it's it's kinda multifaceted, 252 00:16:18.745 --> 00:16:20.745 with us. So so we we have real, 253 00:16:23.850 --> 00:16:27.310 we have we have automotive engineers. Like real engineers? 254 00:16:29.370 --> 00:16:33.209 That's not what what I meant. So we have 255 00:16:33.209 --> 00:16:35.470 automotive engineers who who 256 00:16:38.185 --> 00:16:42.024 have experience in vehicle dynamics and and really know the 257 00:16:42.024 --> 00:16:45.625 the physics of of of the vehicle. And then we we have a 258 00:16:45.625 --> 00:16:49.144 strong, AI and 259 00:16:49.144 --> 00:16:52.950 machine learning team who who really know the ins 260 00:16:52.950 --> 00:16:56.709 and outs on how to structure models, how to prepare the data, and 261 00:16:56.709 --> 00:17:00.470 and things things like that. So so so these 262 00:17:00.470 --> 00:17:04.005 are these are the the two groups who 263 00:17:04.005 --> 00:17:06.825 work together. And then we have also, like, a 264 00:17:08.325 --> 00:17:12.165 a team which is also more focused on on the product and everything 265 00:17:12.165 --> 00:17:15.865 which is needed for the product, like, data engineering, DevOps, 266 00:17:16.325 --> 00:17:19.649 front end, and and things things like that. But, 267 00:17:20.049 --> 00:17:23.750 yeah. So so we are basically looking for people in all positions, 268 00:17:24.289 --> 00:17:27.649 especially since since we we also go into serious 269 00:17:27.649 --> 00:17:31.490 production. We look for, people who, 270 00:17:31.730 --> 00:17:35.495 have experience in in the whole software act architecture 271 00:17:36.115 --> 00:17:39.795 of the vehicle and also, prolific 272 00:17:39.795 --> 00:17:43.255 in in c coding, which is still 273 00:17:44.115 --> 00:17:47.955 the main, main thing if you want to run something on a 274 00:17:47.955 --> 00:17:51.740 vehicle since it's so efficient. 275 00:17:51.740 --> 00:17:55.340 And Go ahead. 276 00:17:55.340 --> 00:17:58.940 Sorry. And, of course, since we, 277 00:17:59.340 --> 00:18:02.800 start building our sales organization, we're looking for for people, 278 00:18:03.135 --> 00:18:06.515 salespeople in Japan and and, also also the US. 279 00:18:08.095 --> 00:18:11.795 I I was wondering because we we're now touching the point geographic 280 00:18:11.935 --> 00:18:15.289 spectrum, which we actually already discussed. I was 281 00:18:15.289 --> 00:18:18.809 wondering, were you planning to set up base? 282 00:18:18.809 --> 00:18:22.650 Because everybody who thinks about automotive in the 283 00:18:22.650 --> 00:18:26.409 US thinks about Detroit, or is it for you more 284 00:18:26.409 --> 00:18:30.245 important to be in a software environment? Think Silicon 285 00:18:30.245 --> 00:18:34.005 Valley, San Francisco Bay Area, or the Silicon Alley in in New 286 00:18:34.005 --> 00:18:37.145 York City. What are your decision points here? 287 00:18:39.765 --> 00:18:43.284 Yeah. This is this is not this is a tough question, actually. So so there's 288 00:18:43.284 --> 00:18:47.040 still still a lot of big players 289 00:18:47.040 --> 00:18:50.400 in Detroit, of course, and they catching 290 00:18:50.400 --> 00:18:53.760 up quickly to to, I would say, the, 291 00:18:54.400 --> 00:18:58.160 more software players like Tesla or Rivian or or or things 292 00:18:58.160 --> 00:19:01.935 like that. So, there's no clear 293 00:19:01.935 --> 00:19:05.455 answer to that. Yeah. You you have to be everywhere all at once. Yeah. 294 00:19:05.455 --> 00:19:09.055 So, yeah, 295 00:19:09.055 --> 00:19:11.155 there's no easy answer to that. Yeah. 296 00:19:13.040 --> 00:19:16.740 We talk about virtual sensors here. They're evolving quickly. 297 00:19:17.360 --> 00:19:20.260 How do you stay ahead of technological 298 00:19:21.360 --> 00:19:25.055 advancement and ensure you stay competitive? What we're seeing right 299 00:19:25.055 --> 00:19:28.575 now in in the news is something like Intel is is 300 00:19:28.575 --> 00:19:32.175 really fighting to stay competitive, and they have been the 301 00:19:32.175 --> 00:19:35.075 epitome of innovation, of technology 302 00:19:35.775 --> 00:19:39.200 for decades. So it could happen to everybody. And I was 303 00:19:39.200 --> 00:19:42.659 wondering, how do you start already 304 00:19:42.720 --> 00:19:46.399 implementing this into your, company 305 00:19:46.399 --> 00:19:50.240 culture? Yeah. You kind of answered your own own question. You have 306 00:19:50.240 --> 00:19:52.899 to heavily invest invest into into, 307 00:19:54.815 --> 00:19:58.655 innovation, of course. And, this is this is what what we do. Yeah. So so 308 00:19:58.655 --> 00:20:02.255 we we have a a big research and and 309 00:20:02.255 --> 00:20:05.775 development team always always work to improve our 310 00:20:05.775 --> 00:20:09.130 virtual sensors to, on the one hand, make them, 311 00:20:09.450 --> 00:20:12.970 smaller so so, that they can run on 312 00:20:12.970 --> 00:20:16.650 ECUs directly in the vehicle. On the other hand, make them 313 00:20:16.650 --> 00:20:20.490 more precise. So, yeah, innovation is absolute key in this 314 00:20:20.490 --> 00:20:21.710 in this area. Yeah. 315 00:20:26.845 --> 00:20:29.825 I'm always interested in how 316 00:20:30.765 --> 00:20:34.385 you get your customer acquisition, your clients. But I do believe 317 00:20:34.445 --> 00:20:37.770 it's it's also since you're b to b, like like, 318 00:20:38.010 --> 00:20:41.690 99% of our guests are b to 319 00:20:41.690 --> 00:20:45.210 b, so it's always a little different game. You cannot just 320 00:20:45.210 --> 00:20:48.810 spam those people. That usually doesn't work and get 321 00:20:48.810 --> 00:20:52.555 you get you at least with the IT administrators on 322 00:20:52.555 --> 00:20:56.075 the naughty list. That's true. So 323 00:20:56.235 --> 00:20:59.775 and also in terms of car manufacturing, there is 324 00:20:59.915 --> 00:21:03.595 not, like, a gazillion of them. So you you cannot 325 00:21:03.595 --> 00:21:07.399 really step on their toes and annoy them too much. 326 00:21:07.399 --> 00:21:10.840 How how do you approach sales there? Yeah. 327 00:21:10.840 --> 00:21:14.519 So, it is also a very good question. So so 328 00:21:14.519 --> 00:21:18.325 net networking is my best. Networking is 329 00:21:18.325 --> 00:21:21.865 is, you have to build your your your network, and you have to, 330 00:21:23.125 --> 00:21:26.804 reach people who are high up in in the hierarchy at the 331 00:21:26.804 --> 00:21:30.580 automotive OEMs. So so this is this is the key to to 332 00:21:30.580 --> 00:21:33.799 making a successful, b to b sale. 333 00:21:34.900 --> 00:21:38.419 And this just takes time. Yeah. That, as I said 334 00:21:38.419 --> 00:21:42.260 before, there are also no shortcuts in in this area. So 335 00:21:42.260 --> 00:21:45.615 so you you have to be present at the most 336 00:21:45.615 --> 00:21:49.455 important conferences. You you have to, work your 337 00:21:49.455 --> 00:21:51.215 way up to to, 338 00:21:53.615 --> 00:21:56.975 to the top of the high hierarchy so so you get really good 339 00:21:56.975 --> 00:22:00.740 contact. What what really helps is is, 340 00:22:01.140 --> 00:22:04.760 what we also discussed at the beginning that you get more credibility, 341 00:22:06.660 --> 00:22:10.440 because, you have great investors and you you get more 342 00:22:11.625 --> 00:22:15.465 credibility because you you have, signed big deals like a like 343 00:22:15.465 --> 00:22:19.145 a serious production deal. So so this help helps to put you on the 344 00:22:19.145 --> 00:22:21.885 map of the important people. Yeah. 345 00:22:24.345 --> 00:22:28.160 You said conferences. And after corona, I 346 00:22:28.160 --> 00:22:31.940 had, for a few month, the impression that conferences 347 00:22:32.160 --> 00:22:35.520 are almost something of the past. You know? You had all those 348 00:22:35.520 --> 00:22:39.015 Hangouts, all those virtual digital meetings, but, 349 00:22:39.255 --> 00:22:43.035 actually nothing really substitutes, direct 350 00:22:43.175 --> 00:22:46.535 contact. Not to mention specific events 351 00:22:46.535 --> 00:22:50.375 here, especially in in 352 00:22:50.375 --> 00:22:53.980 the car manufacturing area. They are also in the news when new models are 353 00:22:53.980 --> 00:22:57.820 introduced and stuff like that. But how did you, from the start, 354 00:22:57.820 --> 00:23:01.040 approach your research? What conferences 355 00:23:01.420 --> 00:23:05.100 are important? Yeah. This 356 00:23:05.100 --> 00:23:08.934 is a so so, there there was a lot of 357 00:23:08.934 --> 00:23:12.455 trial and error. Yeah. I cannot I cannot say that this this is what was 358 00:23:12.455 --> 00:23:15.755 like a master plan from from from the beginning. 359 00:23:17.575 --> 00:23:20.715 And this is also dynamic. Yeah. A conference can be 360 00:23:21.310 --> 00:23:25.070 good the 1 year and, not so good the year 361 00:23:25.070 --> 00:23:28.910 after. So, there's a there's a lot of of trial and 362 00:23:28.910 --> 00:23:32.590 errors. And, I think right 363 00:23:32.590 --> 00:23:36.365 now, we we have found a a set of conferences which which, 364 00:23:37.385 --> 00:23:40.905 where we meet the right people, but but it's also 365 00:23:40.905 --> 00:23:44.685 good always to try something new as as well because, 366 00:23:46.985 --> 00:23:50.640 there's always also luck involved, yeah, that maybe you 367 00:23:50.640 --> 00:23:54.100 go to a conference which is a little bit off topic, but you find 368 00:23:54.560 --> 00:23:57.940 somebody somebody there who could really, 369 00:23:58.400 --> 00:24:02.160 help you out or discover 370 00:24:02.160 --> 00:24:05.815 a field field of collaboration you you haven't thought about 371 00:24:05.815 --> 00:24:09.275 before. So so it there's always in in conferences, 372 00:24:10.135 --> 00:24:13.975 it's it's always a little bit trial and error, and there's always a little 373 00:24:13.975 --> 00:24:17.415 bit of luck involved here. But we try also to plan this 374 00:24:17.415 --> 00:24:20.580 as as good as possible. But, yeah. 375 00:24:21.440 --> 00:24:25.120 I I know that you try to plan an event, what you do, the 376 00:24:25.120 --> 00:24:28.640 people you wanna meet, it all goes out the window at least, 377 00:24:29.040 --> 00:24:32.735 2 hours in the conference. And, usually, when you have a few, 378 00:24:32.735 --> 00:24:35.635 like, overarching goals, you still, 379 00:24:36.335 --> 00:24:40.174 reach some of them. What I have to admit, 380 00:24:40.174 --> 00:24:43.315 WOOD is an awesome tool are all those 381 00:24:43.740 --> 00:24:47.500 apps in conferences so that you don't need to look around always on the 382 00:24:47.500 --> 00:24:50.940 batches who is the person, who is this person. But you can also get 383 00:24:50.940 --> 00:24:54.300 directly in touch with them. Plus, I became a big 384 00:24:54.300 --> 00:24:58.000 friend of even reaching out to people after those conferences 385 00:24:58.140 --> 00:25:01.924 and send them just basically Calendly link, let's talk, if if 386 00:25:01.924 --> 00:25:05.684 I haven't haven't had the chance to meet them in person. Yeah. So, of 387 00:25:05.684 --> 00:25:09.465 course, once we decide to go to go on on a conference, we 388 00:25:09.924 --> 00:25:13.605 we really plan it. So so we really look look up who's who's there, 389 00:25:13.605 --> 00:25:17.260 who we wanna talk to. We use these those apps as well, 390 00:25:17.260 --> 00:25:20.700 yeah, as as as you said. Yeah. So 391 00:25:20.700 --> 00:25:24.060 so once we decide on a on a on a conference, it's it's, 392 00:25:25.140 --> 00:25:28.960 it's, well organized as well from our side. 393 00:25:30.255 --> 00:25:34.015 I'm talking a little bit about the competition here. How 394 00:25:34.015 --> 00:25:37.235 do you differentiate your company 395 00:25:37.455 --> 00:25:41.135 from something like similar offers, maintenance, virtual sensors, 396 00:25:41.135 --> 00:25:44.755 or something like that? Because you're always in competition. 397 00:25:45.850 --> 00:25:49.530 Yes. Of course. All all there's always competition. Yeah. 398 00:25:49.530 --> 00:25:52.830 And, as I said before, yeah, 399 00:25:52.970 --> 00:25:56.650 we are ahead because of our, you 400 00:25:56.650 --> 00:26:00.384 know, innovation potential. So so we do a lot of r and 401 00:26:00.384 --> 00:26:04.065 d on virtual sensors. We believe we we have the most 402 00:26:04.065 --> 00:26:07.524 precise and, virtual sensors, which, 403 00:26:08.865 --> 00:26:12.384 are able to be embedded directly in vehicles. So so 404 00:26:14.250 --> 00:26:18.010 and I think our strategy, paid 405 00:26:18.010 --> 00:26:21.850 out since since we, as far as 406 00:26:21.850 --> 00:26:25.310 I know, are the first to to to get a serious production deals for for 407 00:26:25.850 --> 00:26:29.505 for for this topic. I've 408 00:26:29.505 --> 00:26:33.184 I've read, with many, many companies that 409 00:26:33.184 --> 00:26:36.965 they do have a certain set of rules for innovation, 410 00:26:37.024 --> 00:26:40.640 a certain innovation culture. Do you 411 00:26:40.640 --> 00:26:43.620 read a lot about this and try to implement it, 412 00:26:44.799 --> 00:26:48.500 combined with a trial and error? Is this something that works for you? 413 00:26:51.360 --> 00:26:54.419 So so we always try try to, 414 00:26:57.835 --> 00:27:01.275 especially regarding AI, we always try try to 415 00:27:01.275 --> 00:27:04.735 to read, all all the interesting 416 00:27:05.275 --> 00:27:09.035 publications and papers in in our fields to so so so to 417 00:27:09.035 --> 00:27:12.610 be really up to date there and and 418 00:27:12.610 --> 00:27:15.750 know know what's what's going on, who who has developed, 419 00:27:17.009 --> 00:27:20.610 this, yeah, for for for us. They're very 420 00:27:20.610 --> 00:27:22.630 important. It's all all things around 421 00:27:24.605 --> 00:27:28.365 AI for time series applications. So this is where we'll we'll 422 00:27:28.365 --> 00:27:30.785 really try to stay, 423 00:27:33.085 --> 00:27:34.225 stay ahead. Yeah. 424 00:27:37.049 --> 00:27:40.889 We we already get close to the end, and you're holding up pretty well 425 00:27:40.889 --> 00:27:43.850 here. Thank you very much. Do you 426 00:27:44.570 --> 00:27:47.789 in terms of working in real 427 00:27:47.929 --> 00:27:51.529 produced cars that are out on the street, you do have to comply with the 428 00:27:51.529 --> 00:27:54.855 regulations. Do did you face 429 00:27:55.555 --> 00:27:59.175 some hurdles in the past? And how how do you overcome 430 00:27:59.235 --> 00:28:01.655 them? I mean, 431 00:28:03.075 --> 00:28:05.475 you have to have some some certifications, and and, 432 00:28:07.039 --> 00:28:10.740 each certification is is is, is kind of a hurdle which 433 00:28:10.960 --> 00:28:13.220 requires a lot of work from, 434 00:28:14.799 --> 00:28:17.380 a lot of people of of the team. And, 435 00:28:18.880 --> 00:28:22.565 also, once, you have gained a a certain certification, 436 00:28:24.865 --> 00:28:28.565 people have to also stay on it. Yeah. You have to follow the processes, 437 00:28:29.265 --> 00:28:32.885 which, of course, 438 00:28:34.390 --> 00:28:37.990 makes you makes you a little bit slower, but makes you also, safer on the 439 00:28:37.990 --> 00:28:40.809 other side. There's always always a trade off. Yeah. 440 00:28:41.990 --> 00:28:45.830 Fast and break things just doesn't work if you're in regulated business. Yeah. That's 441 00:28:45.830 --> 00:28:49.215 that's that's true. Yeah. The software, 442 00:28:50.795 --> 00:28:54.555 we deliver to to series production vehicles just has just 443 00:28:54.555 --> 00:28:57.455 has to to work. Yeah. We we cannot risk, 444 00:28:59.035 --> 00:29:02.815 having a big failure in in the millions of of vehicles. So so, 445 00:29:03.350 --> 00:29:06.410 of course, certification is very important, 446 00:29:07.030 --> 00:29:10.630 especially regarding this. And and since you're 447 00:29:10.630 --> 00:29:14.230 working with tires and brakes, there are literally life at stake, so I 448 00:29:14.230 --> 00:29:17.925 totally understand. They cannot accept. Yeah. I mean, you 449 00:29:17.925 --> 00:29:21.525 can you can be a little bit more creative and and break things when it 450 00:29:21.525 --> 00:29:25.045 comes to to research topics. Yeah. And and and you you try 451 00:29:25.045 --> 00:29:28.610 out things. But but as as soon as 452 00:29:28.610 --> 00:29:32.389 we talk about serious production, things get more serious, of course. 453 00:29:33.649 --> 00:29:37.490 Ah, wordplay. I have not 454 00:29:37.490 --> 00:29:41.169 intended. We we we're now getting in towards the 455 00:29:41.169 --> 00:29:45.015 end of the interview. Before we get 456 00:29:45.015 --> 00:29:48.855 into our usual questions towards the end, there's just one more question 457 00:29:48.855 --> 00:29:52.535 I have prepared. The future road map, what do you 458 00:29:52.535 --> 00:29:56.215 must what milestones are you looking at in the next 2 or 459 00:29:56.215 --> 00:29:59.190 3 years except for raising a CERC funding? 460 00:30:00.610 --> 00:30:04.370 Yeah. Be before raising a CERC funding, you have to bring 461 00:30:04.370 --> 00:30:07.570 yourself into the position to be to be able that that you're interest 462 00:30:07.970 --> 00:30:11.075 interesting to the investors. And, 463 00:30:11.695 --> 00:30:15.375 so our main goals are basic basically get 464 00:30:15.375 --> 00:30:18.975 more serious production deals for different different 465 00:30:18.975 --> 00:30:22.674 virtual sensors. Yeah. Get more, automotive 466 00:30:22.815 --> 00:30:25.955 manufacturers on board, sign more serious production deals. 467 00:30:26.630 --> 00:30:30.390 And once we have that, I 468 00:30:30.390 --> 00:30:34.230 I I I'm quite positive about the series c. But, 469 00:30:34.470 --> 00:30:37.210 yeah, it's it's, it's still a long way to go. 470 00:30:39.695 --> 00:30:43.535 Thank you very much for for, like, all the questions you had. A very, very 471 00:30:43.535 --> 00:30:47.055 busy time, and I've seen you, very, very 472 00:30:47.055 --> 00:30:50.815 sleep deprived before we, before, in 473 00:30:50.815 --> 00:30:54.035 the discussion we had before this. Thank you very much, nonetheless. 474 00:30:55.430 --> 00:30:58.890 We'll end up with our usual questions. I do believe, 475 00:30:59.350 --> 00:31:03.190 question number 1, we already answered. You're always looking for talented 476 00:31:03.190 --> 00:31:06.410 people, and we link down here in the show notes your, 477 00:31:06.870 --> 00:31:10.135 queries website. Right? Yes. Yes. 478 00:31:10.434 --> 00:31:13.895 And not only the developers are welcome, but also 479 00:31:14.115 --> 00:31:17.875 the automotive engineers. Just out of curiosity And 480 00:31:17.875 --> 00:31:21.415 also salespeople. Yeah. Sales of course. Always salespeople. 481 00:31:21.980 --> 00:31:24.780 They'll give the the greatest applications at all. 482 00:31:25.900 --> 00:31:29.600 Nonetheless, just out of pure curiosity, would you 483 00:31:29.660 --> 00:31:32.960 only be interested in people, like, with car 484 00:31:33.100 --> 00:31:36.635 background, or would you also be open to somebody who is 485 00:31:36.635 --> 00:31:40.395 experienced in motorcycles? No. So so so, 486 00:31:42.075 --> 00:31:45.695 if if you if you like like a domain expert or an automotive 487 00:31:46.155 --> 00:31:49.674 engineer or company, of course, you you have to have have the domain 488 00:31:49.674 --> 00:31:53.140 expertise. So so you have to know about cars for 489 00:31:53.600 --> 00:31:57.120 other positions. If you if you're 490 00:31:57.120 --> 00:32:00.720 an AI expert, you don't really 491 00:32:00.720 --> 00:32:04.559 need so so we already have a lot of, automotive experience. So 492 00:32:04.559 --> 00:32:08.375 so the AI experts don't really need that much 493 00:32:08.375 --> 00:32:12.215 automotive experience. It's already in the company. It's always good 494 00:32:12.215 --> 00:32:15.675 when they have that, but it's not a prerequisite also for 495 00:32:15.975 --> 00:32:17.495 other positions. Yeah. If if 496 00:32:19.575 --> 00:32:22.950 yeah. Let let me do some mind reading. One of the 497 00:32:22.950 --> 00:32:25.770 ideal candidates would be an experienced 498 00:32:26.550 --> 00:32:30.170 AI engineer who has a private table for cars. 499 00:32:30.790 --> 00:32:34.310 Of course. Yeah. But, as as I said, it's not a it's not a 500 00:32:34.310 --> 00:32:37.815 prerequisite. We have also, people working here who are 501 00:32:37.955 --> 00:32:40.295 not very much interested in cars, but, 502 00:32:41.795 --> 00:32:45.395 they they do a great job, in in, in in in 503 00:32:45.395 --> 00:32:49.103 their field here. So They come to work with the bicycle? Yeah. There 504 00:32:49.210 --> 00:32:52.650 there's yep. Some people don't own cars. Not not 505 00:32:52.650 --> 00:32:56.490 everybody here. You're on on on cars. Yeah. So you don't have 506 00:32:56.490 --> 00:32:59.710 to be a a a a petrol head. 507 00:33:00.570 --> 00:33:04.415 Okay. We already talked also about, open 508 00:33:04.415 --> 00:33:08.255 to talk to new investors. DFC is at one point on the 509 00:33:08.255 --> 00:33:12.095 horizon, and I do believe you would be open to talk to potential new investors. 510 00:33:12.095 --> 00:33:15.934 Right? Yes. So so of of course, we we we 511 00:33:15.934 --> 00:33:19.715 are always open to to and talking to to investors. This is also 512 00:33:21.280 --> 00:33:25.040 a way to build our network there. So so, of 513 00:33:25.040 --> 00:33:28.800 course, we will always open to to talk to new investors. Since 514 00:33:28.800 --> 00:33:32.640 we closed the the financing round right right now, there 515 00:33:32.640 --> 00:33:36.294 is no no need to to talk about raising the next 516 00:33:36.294 --> 00:33:40.055 round. But, it's so good to be in contact, because 517 00:33:41.635 --> 00:33:44.915 raising financing grounds takes takes a lot long time, and, 518 00:33:45.715 --> 00:33:48.375 it's always good to to start early. Yeah. 519 00:33:49.700 --> 00:33:53.540 And the last question since this is in our series with the Hessen Trade 520 00:33:53.540 --> 00:33:57.060 Invest and the Enterprise Europe network, is there 521 00:33:57.060 --> 00:34:00.740 something like a question and concern and idea you would like 522 00:34:00.740 --> 00:34:04.575 to address to the political decision makers here in our amazing state 523 00:34:04.575 --> 00:34:08.175 of Hessen? Yeah. So, we have we have 524 00:34:08.175 --> 00:34:11.875 a lot of people working for us who who are not from 525 00:34:12.094 --> 00:34:14.594 Germany, so so are from from other countries. 526 00:34:16.255 --> 00:34:20.040 Especially outside of of Europe, it's hard to 527 00:34:20.040 --> 00:34:23.640 to, get, 528 00:34:24.040 --> 00:34:27.719 get people employed with with a blue card. 529 00:34:27.719 --> 00:34:31.420 It takes forever to get an appointment at the, government 530 00:34:31.480 --> 00:34:35.275 agencies like the like the Auslander. So this is like 531 00:34:35.275 --> 00:34:38.895 a tedious and slow process which 532 00:34:39.675 --> 00:34:43.275 could be, really sped up. Yeah. So so this 533 00:34:43.275 --> 00:34:46.715 would help us because there there are also a lot of capable, 534 00:34:47.034 --> 00:34:50.010 people in other countries, who are interested to 535 00:34:50.470 --> 00:34:54.010 to to to, come here and and help 536 00:34:54.630 --> 00:34:58.390 a startup like like, us. So, 537 00:34:58.870 --> 00:35:02.010 all this process could could be much more streamlined. 538 00:35:03.765 --> 00:35:07.285 Great. Rafael, it was a pleasure having you here, by the 539 00:35:07.285 --> 00:35:11.045 way, your 35 minutes with question and all that. Best of 540 00:35:11.045 --> 00:35:14.724 luck. Hope to have you back when you raise CERC funding. Yeah. 541 00:35:14.724 --> 00:35:17.996 Thank you. It was a pleasure talking to you. It was all mine. Have a 542 00:35:17.996 --> 00:35:19.936 good day. Bye bye. Bye bye.