Needs of Global Start-up companies (Deliverable 2) GlobalStart wp1 Studies Deliverable 2 Needs of Global Start-up Companies Table of contents p



Download 1.73 Mb.
Page27/31
Date29.07.2017
Size1.73 Mb.
#24297
1   ...   23   24   25   26   27   28   29   30   31



Name

Estla Ltd.

Website


http://www.Estla.com

Tel

+372 748891
+372 7428662

E-mail

Estla@Estla.com

Founding date

1988

Industry

Electronic industry

Intervew date

02/02/2005, 23/03/2005

Interviewees

Evgeny Berik

Interviewers

Janita Andrijevskaja, Goran Hamza

References: Company’s homepage.

1. Profile and background
Estla Ltd. established in 1988 on private capital by a group of scientists at the Institute of Physics of the Estonian Academy of Sciences. The scientists used the first possible opportunity to found a company; before that year the establishment of a private company was not legally possible. The company has quickly become one of the leading companies in the Baltic region in the field of laser technology. The company develops and produces accessories for lasers, lasers of different types and laser based instruments for science, medical applications, entertainment and electronic industry.
From the beginning there were three persons who were founders: Dr. Evgeny Berik who was earlier invited to Estonia from the Institute of Spectroscopy at the Moscow university, and additional two laboratory researchers. The main reasons for establishing the company were the need for self-realisation as well as a favourable market for laser products in the Former Soviet Union.
From the establishment until 1991 the market for the company products and services was in the former Soviet Union. That market was protected from the foreign competition and the products were patented (approximately 10) for that market. After the collapse of the Soviet Union, the company switched over from serving customers in CIS to customers in Estonia and Western countries. During these changes Dr. Berik was a person to look for and attract new customers. Among other countries he visited potential customers in Scandinavia, Germany and Benelux. Estonian market was growing as well in the first years of independence, where the customers were both universities/colleges and private enterprises. Company is a leading provider in the laser components and other laser based products including laser shows.
Currently, the largest customer is a German company, which stands for approximately 60% of turnover. This German company resells the Estla’s products (brand Estla is not in use) to a large US customer and some final customers in Europe: Estla does the R&D, design and production. The German company packages and distributes the products using its selling network. Another 20-25% of the Estla’s market consists of Estonian customers, and the remaining 15-20% of customers are individual clients who find the products through the company web page.
Estla was and is financing itself through the equity from the owners, undistributed returns, and smaller amount of grants approximately 50 000 Euro from the European Union, and approximately 25 000 Euro from Estonian Innovation Fund. Until now, the revenue growth has been between 10-20%, with a turnover of approximately 1 million Euros. The company seeks to have sufficient cash in order to be able to cover “unexpected” expenses, as it is not taking external loans.
Currently, there are 15 employees in the company: 3 owners who form the management team, (1 cofounder has left the company about 10 years ago), and 12 others who are mainly technicians and administrative personnel. There is a problem of retaining skilled employees within the company, because higher salaries available in Europe attract highly competent scientists to leave the company in Estonia.
Estla's local and international cooperation network includes universities (mainly the University of Tartu), research institutes, technology centres, large and small enterprises, venture capital and technology transfer companies. The close partnership was developed with Asper Biotech Ltd in Estonia: Estla is responsible for design and manufacturing of hardware for Asper Biotech final products.


2. Mapping of the major milestones of the company




Pre-venture phase

Foundation:

1988

1991-2005


Near future

Business concept

  • Plan

  • Objectives




-Research in the laser field at Tartu University.

-Continuous research.

-Supplying products using laser technology in the Former Soviet Union.



-Shift in the customer segment to the western customers (serial products), and to Estonian scientific market (individual products and services).

Permanent search of new applications for laser technology (biology, medicine, industry).

Technology platform


Production mode
Market (industry, customer, competitors)

-Laser technology research.



- Research and experiments in laser technology field.

- Products based on the laser technology.

Laser-related products are produced within the company

- Customers in the Former Soviet Union, mainly universities.

- No foreign competition.


-Same technology.

-Complete shift in the customer focus to the western countries and the growing importance of Estonian market.

-Private companies stand for the largest share of revenues.

-Web as a new sales channel.

-Strong international competition. Due to which it is difficult to use company’s own brand

By the 1995, the company has achieved stable relations with clients in Western Europe.



- Same technology.

- Same customer focus, plus looking for research-oriented orders from public institutions in Estonia.

- Incorporation in international R&D projects (TOKAMAK, life science)

- Creation of customised systems on the base of purchased components



Finance

  • Source and

  • Use of capital


- University financing

- Research grants from several former USSR universities



- Equity financing.

- Customers pre-financed some projects.



-Approx. 50 000 euro grant from the European Union,

- Approx. 25 000 euro grant from Estonian funds.




- Continuous self-financing.

People

  • Management,

  • Other employees




- 3 scientists working at Tartu University


- 3 founders of the company who are researchers.

- Other employees: about 10 people recruited mainly from the University of Tartu



- One founder is leaving the company in 1994. Replaced by another person included in the management team.

-12 additional employees: researchers, technicians, and administrative personnel.



-No plans to increase the number of employees, only in case new technological directions will be chosen

Partners/ Network

-Tartu University and other universities in the former USSR.

-Cooperation with new customers in the former Soviet Union.

- Partnership with dealers for reselling products in Western countiries.

- Partnership with Asper Biotech Ltd started in 1999 for joint development of the products.




-Same as in 1991-2005, finding new partners for cooperation


Download 1.73 Mb.

Share with your friends:
1   ...   23   24   25   26   27   28   29   30   31




The database is protected by copyright ©ininet.org 2024
send message

    Main page