startups And Financing
In 2020, Vlad Cazan and Adrian Dima founded KFactory, an Industry 4.0 startup that is transforming the manufacturing industry and innovating a core process specific to all subsectors - production line performance management.
The company received a seed round of 215,000 euros in June 2020, led by Sparking Capital, with a late seed round in early 2022. We sat down with Vlad Cazan to talk about what the experience was like and what we can expect from the startup in the future.
What does "success" mean for KFactory?
First and foremost, the value of the KFactory platform has been recognized by our customers. Attracting and retaining customers is a sure indication that we are on the right track and creating value. Investor confidence is also a very important indicator that we are on the right track. -
Why did you choose a mix of VC and individual investors for your seed round?
During the preparation of the first investment round, we discussed with Sparking Capital the possibility of doing a mixed round and listing KFactory on the SeedBlink platform. We thought it was a very good idea, as we had been involved in crowdsourcing campaigns before. Later, I also became an investor in SeedBlink because I believe in crowdsourcing and the power of such a community as SeedBlink.
Looking back, do you think the SeedBlink round was a smart money decision? How did the SeedBlink investors add value to KFactory besides the financial support?
I think it was a smart money decision. Community power is something we actively strive for, and I am glad we had investor support from the very beginning. We needed help to introduce KFactory to potential customers, provide implementation services for an RPA component in KFactory, and integrate the business intelligence component into our platform. For example, with the support of an investor, we managed to integrate one of the best business intelligence platforms into KFactory and offer our customers a best-in-class Industry 4.0 analytics solution thanks to the capabilities of this platform BI. This is a great support from their side.
How do you maintain relationships with your investors?
In the beginning, it was difficult to maintain a close relationship with all of SeedBlink's investors. That's why we decided to organize online meetings with them to explain our plans and brainstorm about the help they can offer us. Later, SeedBlink Circle was launched, a component of the SeedBlink platform dedicated to easy and direct communication with investors in a dedicated online space for KFactory.
How important do you think it is to point out your weak points to investors and ask them for help?
Direct and constant communication with investors is very important, especially in difficult moments when they can support and help us. Asking for help is normal and in most cases we receive a positive answer and the necessary support to continue or grow.
Would you recommend SeedBlink to other founders or investors?
Yes, especially for the first and second investment rounds. Having a strong investor community to support you is one of the most important things for an early stage startup. The other big advantage is the possibility to get money quickly if you manage to convince the investors that you have a solid plan for fast growth.
Where do you see KFactory and your team in 3 years? Are you thinking about an exit scenario?
We are expanding rapidly and aim to close our third round of funding and establish a presence in the European Union and the United States by the end of next year. It's too early to talk about an exit, but we will see what the future holds. We appreciate your honesty and wisdom, Vlad.
Any final thoughts for our readers?
If you are a startup founder, do not hesitate to leverage the power of a community like SeedBlink. If you want to invest in startups, I think SeedBlink is the best way to start and train your investing skills. I am also an investor on SeedBlink and have learned a lot from the other startups listed and from the startups I have invested in.
SeedBlink Crowd SA (registration number PJR28FSFPR/400001 from 3rd of November, 2022) is authorised and supervised by the Romanian Financial Supervisory Authority (ASF).