Raising money: “You have to play both smart and hard”
29.04.2015
Lunaphore was founded in 2014. On April 29th, 2015, the EPFL spin-off just announced closing its first Series A financing round of CHF 2 million to develop its revolutionary tissue diagnostics platform. We met CEO Ata Tuna Ciftlik to discuss the great news – and learn more about how he feels about the startup adventure he jumped into after his PhD.
 The tissue diagnostics market targeted by Lunaphore (from left to right: CEO Ata Tuna Ciftlik, COO Déborah Heintze and CTO Diego Gabriel Dupouy) is worth a few billions and is growing fast.
|
 |
What are the origins of Lunaphore?
We created Lunaphore in April 2014. However, until the company incorporation, there was a period of preparation where I have found (and agreed with) my co-founders, acquired basic knowledge and secured some funds that would finance the first year of the project. This preparation period, indeed, dates back to April 2013, the date of my major PhD publication.
Why did you decide to embrace the entrepreneurial path?
This is a question that is asked rather very often, and also a very hard one. I would need a few pages of bullet points to explain myself, since decision-making (I am no exception) is a process with many emotional and rational reasons. Briefly, the most important emotional reason seems to be the gravity of adventure and challenge, the instinct of leading and exploring. The rational reason is the size of the opportunity in both the earning and the learning when compared to alternative jobs. There is no other setting that you can simultaneously learn and earn that fast and that much.
You just raised CHF 2 million to develop your revolutionary tissue diagnostics platform. Tell us a little bit about how you experienced the process of raising your first substantial funds.
Raising money is a probabilistic pipelining process, where you have to play both smart and hard. We had a preparation period, during which we sharpened our ideas, prepared some material and action plan. In the following, we could easily attract attention and create enthusiasm among investors. After 2-3 months we started pitching, the number of appointments and presentations we had to attend all over Switzerland overwhelmed us. We, 3 co-founders, even had to be split between events taking place at the same moment. The hardest part was the closing of the deal and it was particularly different than creating the demand. It was a whole different world for “first time entrepreneurs” like us, and we had to both learn and succeed simultaneously. The dynamics of the deal closing and the anticipation power was an educating experience to me.
Can I ask you how will the money that you have just raised be used?
In the solid part, we will work towards our first product. In the soft part, we will add people with complementary skills and experience, and finally, build a competitive company structure that can overcome the significant challenges awaiting us.
What is your vision for your company?
Nowadays, we hear the word “personalized medicine” almost every day, and tissue diagnostics is one of the core enabling elements of it. However, the tests based on tissue sections are so painfully long and expensive, only the 3-4 high priority biomarkers can be checked per patient. We have the enabling technology to break this limit since we are fast (5 minutes vs. a few hours) and accurate with the potential of full automation. Our vision is to build a standardized tumor analysis platform for all biomarkers, like today’s blood analyzers.
What market and first countries do you target?
The tissue diagnostics market that Lunaphore is aiming at is worth globally a few billions and is growing fast. Our first targets are Germany and the USA. Germany is geographically close and the largest medtech market in Europe. USA is by far the largest market that we can address. Plus, existence in the US is critically important, as most potentially we’ll be acquired by an American multinational.
Among many prizes and recognition, you are in the TOP 100 Swiss startup ranking (as youngest startup in Romandie, and among the 5 best), won Venture Kick stage 3 and were a venture leader (USA) in 2014. How did the TOP 100 help you so far (i.e. to raise money) and what have been the benefits of the Venture Kick initiative and venture leaders program for your company?
The TOP 100 Swiss Startups ranking was quite a good leverage for our credibility. When it comes to working with a young startup, all industry players need some referral from external reviewer. Entering the list at rank 35 as the youngest startup was an incredible PR. A startup always needs cash and visibility among investors and partners. This is how it stays alive.
Venture Kick was both of them. Just being a kick stage winner is already good to increase credibility in the Swiss startup scene. Nevertheless, I got the real benefit when I got “smashed” at the kickers camps (laughs)! If you listen instead of crying, it vaccinates you against all the odds that might kill you in the near future. It hurts but makes you stronger.
Before venture leaders, I had psychological barriers making me think that entering to US market is a rather impossible or a remote goal. When on the return flight, the US was the first international goal in our business plan. I have also learned that in the US, the perceptions of risk and assessment criteria are primarily different that what I saw here. Now, I’m preparing Lunaphore to be “US ready” for upcoming fundraising and partnership deals.
When you started, did you think you would have so much success, in so little time?
For sure, we wanted to be successful and believed in ourselves. Yet, nobody can be 100% sure when it comes to a future success. We have done all the work that we think that is necessary and we can afford. We worked hard and smart. We have increased the probability of the success as much as we can in a limited amount of time with little money. Despite all these, many factors that are beyond our control can play a role in our success. Taking fundraising as an example, you can build a great project and team, yet sometimes, investors may think that is not the right moment for the investment, or sometimes they have just invested in a company in the same field and they think it is too risky not to diversify their portfolio. I can give you hundreds of other reasons beyond our control and influence decision makers. So to answer the question: We always believed in ourselves, and at the same time, doubted if we’ll ever succeed.
How many employees do you have (when you started and now)?
In April 2013, it was alone. Now, 2 years later, we are 7.5 FTE’s in addition to around 20 people in our collaborative network like advisors and scientific collaborators.
We created Lunaphore in April 2014. However, until the company incorporation, there was a period of preparation where I have found (and agreed with) my co-founders, acquired basic knowledge and secured some funds that would finance the first year of the project. This preparation period, indeed, dates back to April 2013, the date of my major PhD publication.
Why did you decide to embrace the entrepreneurial path?
This is a question that is asked rather very often, and also a very hard one. I would need a few pages of bullet points to explain myself, since decision-making (I am no exception) is a process with many emotional and rational reasons. Briefly, the most important emotional reason seems to be the gravity of adventure and challenge, the instinct of leading and exploring. The rational reason is the size of the opportunity in both the earning and the learning when compared to alternative jobs. There is no other setting that you can simultaneously learn and earn that fast and that much.
You just raised CHF 2 million to develop your revolutionary tissue diagnostics platform. Tell us a little bit about how you experienced the process of raising your first substantial funds.
Raising money is a probabilistic pipelining process, where you have to play both smart and hard. We had a preparation period, during which we sharpened our ideas, prepared some material and action plan. In the following, we could easily attract attention and create enthusiasm among investors. After 2-3 months we started pitching, the number of appointments and presentations we had to attend all over Switzerland overwhelmed us. We, 3 co-founders, even had to be split between events taking place at the same moment. The hardest part was the closing of the deal and it was particularly different than creating the demand. It was a whole different world for “first time entrepreneurs” like us, and we had to both learn and succeed simultaneously. The dynamics of the deal closing and the anticipation power was an educating experience to me.
Can I ask you how will the money that you have just raised be used?
In the solid part, we will work towards our first product. In the soft part, we will add people with complementary skills and experience, and finally, build a competitive company structure that can overcome the significant challenges awaiting us.
What is your vision for your company?
Nowadays, we hear the word “personalized medicine” almost every day, and tissue diagnostics is one of the core enabling elements of it. However, the tests based on tissue sections are so painfully long and expensive, only the 3-4 high priority biomarkers can be checked per patient. We have the enabling technology to break this limit since we are fast (5 minutes vs. a few hours) and accurate with the potential of full automation. Our vision is to build a standardized tumor analysis platform for all biomarkers, like today’s blood analyzers.
What market and first countries do you target?
The tissue diagnostics market that Lunaphore is aiming at is worth globally a few billions and is growing fast. Our first targets are Germany and the USA. Germany is geographically close and the largest medtech market in Europe. USA is by far the largest market that we can address. Plus, existence in the US is critically important, as most potentially we’ll be acquired by an American multinational.
Among many prizes and recognition, you are in the TOP 100 Swiss startup ranking (as youngest startup in Romandie, and among the 5 best), won Venture Kick stage 3 and were a venture leader (USA) in 2014. How did the TOP 100 help you so far (i.e. to raise money) and what have been the benefits of the Venture Kick initiative and venture leaders program for your company?
The TOP 100 Swiss Startups ranking was quite a good leverage for our credibility. When it comes to working with a young startup, all industry players need some referral from external reviewer. Entering the list at rank 35 as the youngest startup was an incredible PR. A startup always needs cash and visibility among investors and partners. This is how it stays alive.
Venture Kick was both of them. Just being a kick stage winner is already good to increase credibility in the Swiss startup scene. Nevertheless, I got the real benefit when I got “smashed” at the kickers camps (laughs)! If you listen instead of crying, it vaccinates you against all the odds that might kill you in the near future. It hurts but makes you stronger.
Before venture leaders, I had psychological barriers making me think that entering to US market is a rather impossible or a remote goal. When on the return flight, the US was the first international goal in our business plan. I have also learned that in the US, the perceptions of risk and assessment criteria are primarily different that what I saw here. Now, I’m preparing Lunaphore to be “US ready” for upcoming fundraising and partnership deals.
When you started, did you think you would have so much success, in so little time?
For sure, we wanted to be successful and believed in ourselves. Yet, nobody can be 100% sure when it comes to a future success. We have done all the work that we think that is necessary and we can afford. We worked hard and smart. We have increased the probability of the success as much as we can in a limited amount of time with little money. Despite all these, many factors that are beyond our control can play a role in our success. Taking fundraising as an example, you can build a great project and team, yet sometimes, investors may think that is not the right moment for the investment, or sometimes they have just invested in a company in the same field and they think it is too risky not to diversify their portfolio. I can give you hundreds of other reasons beyond our control and influence decision makers. So to answer the question: We always believed in ourselves, and at the same time, doubted if we’ll ever succeed.
How many employees do you have (when you started and now)?
In April 2013, it was alone. Now, 2 years later, we are 7.5 FTE’s in addition to around 20 people in our collaborative network like advisors and scientific collaborators.