DTM E51. Following your passion, building an energy management startup, effectively utilizing your incubator - Ankit, ZedBee

From the Deep Tech Musings Podcast - Get actionable and tactical insights to take your Deep Tech startup from 0 to 1 [Idea to Traction]

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Ankit is the founder of ZedBee Technologies, an IIT-Madras incubated startup that has developed next-generation solutions for energy management in buildings & industries. Their state-of-the-art systems are built around the Internet of Things technology and advanced machine learning algorithms hosted in the cloud. On the show we discuss,

• Ankit's personal journey into entrepreneurship

• The impact of Professor Ashok (Founder, IITM Research Park) on Indian entrepreneurs and his inspiration and motivation for them

• Understanding the end user and market scope

• Strategies and tips for raising a successful pre-seed round

• Identifying early customers for idea validation

• Assessing technical feasibility in the early stages of product development

• Focus on patents and building moats in startups

Listen to the episode here,

or on the below platforms

Links:

Ankit Poddar - ankit-poddar (LinkedIn), zedbee.in

Pronojit Saha, DTM Podcast - pronojitsaha (LinkedIn), @pronojits (Twitter)

Episode Twitter Post

Show Notes & Summary:

(0:28) Ankit’s personal journey into entrepreneurship

1. I come from a Marwadi family in Kolkata, where everyone is involved in businesses, but I chose to pursue engineering due to my strong passion for science and technology.

2. Despite resistance from my family, I decided to study science and engineering, even though they suggested studying commerce and getting into the family business.

3. I joined college and initially chose computer science, but soon realized it didn't align with my desire to build and create rather than memorize concepts.

4. In college, I started building machines and participating in tech fests, winning prizes and gaining motivation to continue my innovative work.

5. My journey took a significant turn when I got in touch with Professor Ashok Junjanwala at IIT Madras, who encouraged me to nurture my career and provided support for my passion, leading to the eventual founding of ZEDBEE.

(6:53) "The Impact of Professor Ashok (Founder IITM, Research Park) on Indian Entrepreneurs: How Has He Inspired and Motivated Them?"

1. I spent four years at IIT, working on various engineering projects and learning.

2. Despite concerns from my parents about my future earnings, I continued pursuing my passion.

3. I met Professor Ashok, who presented a problem of reducing energy costs and improving comfort in a research park.

4. We began working on a solution, hired engineers, and in 2015, ZEDBEE Technologies was founded, focusing on managing air conditioning systems for large buildings.

5. ZEDBEE's offerings expanded over time to include both low and high sides of air conditioning, air quality technologies, and other elements of building management, all connected through a universal software platform.

(15:15) Understanding the End User and Market Scope

1. Our current focus is primarily on commercial buildings such as parks, shopping malls, hospitals, and airports.
2. Eventually, our technology will expand to industries and residential sectors as well.
3. However, we are still in the early stages of commercializing our products in these areas.
4. Our main goal is to improve the efficiency and functionality of commercial buildings.
5. We are working towards developing solutions that will benefit various sectors in the future.


(15:46) Potential savings for commercial setup: Past experiences and numbers.

1. In an office, the air conditioning system is designed for maximum heat load, which is based on all equipment being on, lights being on, and a high amount of sunlight entering the office.
2. Without proper automation and data, the AC may run at a higher capacity than necessary, leading to energy wastage and overcooling of areas where people are not sitting.
3. W utilize sensors to detect where people are sitting and to monitor the temperature, enabling them to cut off air supply to unoccupied areas and areas that have already reached the desired temperature.
4. The amount of energy savings achieved depends on the type of office, the heat load, and the diversity factor, with potential savings ranging from 10-45%.


(18:52) Raising a Successful Pre Seed Round: Strategies and Tips

1. It is easier to raise funds for a startup today because investors are more interested in stories than actual implementation.
2. In the past, startups had to prove themselves with good revenues before qualifying for funding.
3. It is important to learn from mistakes and quickly evolve in a startup to avoid wasting time.
4. Technology and partnerships evolve over time, and it is important to adapt and stay updated.
5. Initially, the focus was on low side technology, but the company eventually embraced wireless technology and expanded into building management systems.


(21:13) Identifying Early Customers for Idea Validation

1. I shamelessly admit that we have a fantastic ecosystem here with an incubation cell and a research park.
2. Unlike other startups, I shamelessly utilize their network and facilities to the fullest.
3. When faced with a problem, I lock the door of the incubation shell and research park, seeking help from professors at IITs.
4. Through the professors' and alumni networks, I reached out to many customers, benefiting from their recommendations.
5. This underrated aspect of tapping into existing connections has proven more effective than making cold outreach attempts.


(22:36) Assessing Technical Feasibility in the Early Stages of Product Development

1. I made a mistake by relying entirely on what Research Park asked me to do when developing products.
2. There is a significant difference between what works in Research Park and what people outside of Research Park need and expect.
3. Most of our products were designed for Research Park and require significant changes to be useful outside of that context.
4. I should have explored other buildings outside of Research Park to better understand the needs and expectations of different environments.
5. The evolving process requires me to connect existing building infrastructure with our hardware to meet aesthetic and functional requirements.


(24:48) Assessment and Confidence in Developing Solutions: Overcoming Challenges

1. We seek validation and confidence in our technology by discussing it with experienced professors like Professor Ashok Juniorwala.
2. We receive guidance and advice from technical mentors in the ecosystem, such as experts from Microchip, Wireless, and IoT domains.
3. We believe in creating prototypes to test our ideas, even if we don't produce a final product.
4. We utilize Research Park as our R&D center and test our innovations there.
5. Research Park provides a vast ecosystem for testing wireless technologies, making it an ideal location for experimentation.


(26:04) Main technologies in the product

1. My passion was to become an engineer, not just a computer engineer.
2. Today, all disciplines of engineering are being used in various industries such as IoT products, embedded software, hardware, and air conditioning.
3. Energy management is a separate domain that requires knowledge on how to manage grids and save energy.
4. Data science plays a crucial role in collecting and analyzing data in engineering.
5. I find fulfillment in working as a full stack developer and designing both the front end and back end of projects.


(27:29) Focus on Patents

1. Patents are meant to provide security.
2. Personally, I am not a big fan of patents because they don't work in the Indian market.
3. We have applied for a few patents and have many more in the pipeline.
4. However, I don't aggressively pursue patents. My focus is on other aspects rather than patents.


(27:51) Building Moats in Startups

1. The speaker uses an analogy of Kolkata sweets to explain the concept of uniqueness and competition in technology.
2. They emphasize that when they create a technology, it is difficult for others to replicate it exactly as they have.
3. The speaker expresses skepticism towards patents, believing that they are not as important as protecting one's business practically.
4. They highlight the importance of their research park as a competitive advantage, mentioning the extensive R&D infrastructure and investment in it.
5. The speaker suggests that their research park serves as a moat for their company, making it difficult for competitors to match their capabilities.


(31:14) Overcoming Initial Activation Hurdles to Gain Client Trust and Adoption

1. Customers do not trust startups, especially when the ticket size is large.
2. The speaker gives an example of a company called Shouter that was acquired by Carrier, causing problems for customers who had invested in their products.
3. I have faced difficulty in acquiring customers because of the lack of trust in startups and the past experiences of other startups in the industry.
4. To overcome this hurdle, I start small with customers, gradually building trust and confidence.
5. Several big names (BLF, RMZ, Prestige) have opened accounts with us and we hope to scale up once trust is established.


(35:13) Future Market Forces in the Industry: Technology, Consumer Behavior, and Regulations

1. The climate crisis is affecting everyone and is caused by our carbon emissions, including from fossil fuel use in buildings.
2. Strict regulations and policies are necessary to achieve net zero targets and carbon neutrality, and they may be enforced in the next few years.
3. Implementing these regulations will benefit our business as we focus on making buildings net zero and promoting renewable energy.
4. Fortune 500 companies and customers are increasingly concerned about climate goals and are demanding transparency and action.
5. The efforts to combat climate change are interconnected and part of a larger circle of actions and commitments.


(38:39) Advice for Entrepreneurs: Taking an IoT AIML Startup from Zero to One

1. Founders should build prototypes and test their products, but also genuinely understand if the problem they are addressing truly exists.

2. It's essential to have a clear business model from the beginning, including how the product will be sold and who the target customers are.

3. We initially focused on energy-saving products, but later faced challenges in identifying the right buyers for our offerings.

4. Understanding the buyer persona is crucial; we struggled to find buyers as both builders and tenants had different reasons for hesitating to purchase their energy-saving products.

5. Learning from this experience, I now emphasize the importance of identifying the target market and their specific needs before diving into product development.

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