Advisor’s perspective: 4 questions to Jaanika Merilo
Jaanika Merilo is one with many superpowers. She consults governments and companies about digital innovation, leads a YouTube channel about the startup scene in her beloved Ukraine, invests in promising startups and next to all that she has found time to mentor our hack. Here are four questions we were dying to ask her and four answers you don’t want to miss out on.
What would you say are the main factors you take into consideration when weighing whether to invest or not?
The main factor in considering an investment is the team behind the startup. The team executes the ideas, and without execution, the ideas are not that much worth. So basically I consider if the team has experience in the area, strong background or success stories, and real motivation to make it happen. It is essential that the team is fully dedicated and fully motivated to make it happen because it will be a real roller coaster to ride, and you need the motivation to make it. Then, of course, the idea behind the startup or the problem they are solving. Does the problem really exist, is it common enough, and can this team potentially solve it differently or better than the others before.
And definitely, I would like to understand the business idea and the rational behind the startup. I know very many good investors that just believe in a team and take the risk. I would like to be able at least to understand the market, strategy and KPIs behind the business and in the ideal case I can also add value. Adding value in regards to for example, expansion to new markets.
What advice would you give beginner entrepreneurs facing difficulties on the path of building their companies?
I really believe that young entrepreneurs should be ready for the real rollercoaster ride and understand that, unfortunately, it is often “lows” but then again, the “ups'' are really high and bring lots of satisfaction. And it is normal that you will always have challenges, not even depending on whether you have a 10 000 client business or 100 million. There are many good books about it, starting from Philip Knight's “Shoe Dog” up to Ben Horowitz’s “The Hard Thing About the Hard Thing”. As well, it is always good to have a MVP of the product out as fast as possible just to test it out and develop together with customers, not spend years and years on fine-tuning without having real feedback.
I really believe that young entrepreneurs should be ready for the real rollercoaster ride.
Why do you think we are in need of reforming the ways we study?
Times change very fast and education must correspond. In a good case, the educational system should see and be two steps ahead and prepare for tomorrow, not lag with yesterday's approaches and methods. For example, not many countries are prepared to teach online with fully integrated resources, while online and personalized approaches will be the future. Sometimes schools are using 5-7 different online platforms and tools which makes it very difficult to juggle between them and that has an affect on the teaching-learning process. As well, teachers should be inspiring professionals not only in education in general but also in their topic. Of course, during first school years, it is more about the teacher's personality and their communication skills, but when starting physics or chemistry, it is so inspiring if your teachers would also have practical and applicable know-how.
What advice would you give entrepreneurs/startuppers in communicating with the state?
The state, unfortunately, has lots of bureaucratic procedures, not depending on what country it is. I would suggest finding a dialogue with the state to find a solution and consider “test it if you like it and let's find a solution together”. If it fits with the business model, I would consider testing it out in piloting cities with local governments and then expanding. It is always good to test it out with the first customer, localize it to the needs and expectations of the customers and then roll it out further, or show the results of the first satisfied customers to central government “asking for blessing”, if needed. The education sector often has strict verticals. It is often good to test and localize the product and certain regions and then have the central government's blessing, even if it is not legally needed. It helps the decision makers and I think for example schools would feel safer about their choice. And then again, I believe in using the soft force - publicly sharing, informing and promoting the product. It is harder to ignore something well known, useful, and popular.
It is harder to ignore something well known, useful, and popular.
EdTech Hack 2022 | October 14–16 | Online
Startup Estonia and EdTech Estonia are looking for innovative and sustainable ideas that could change the world of education. Join the EdTech Hack on October 14–16, form a team and develop a prototype for your idea in 48 hours!
Learn more and register: https://hack.edtechestonia.org
