As part of our preparation for next year’s EU-Startups Summit, this week we travelled to sunny Malta and met with future partners, entrepreneurs and startup ecosystem players.
During this trip, we met with Jacob Appel a successful entrepreneur who found his way to Malta 15 years ago. Hailing from Denmark, initially arrived in Malta seeking a break from studying and a change of scenery. Motivated by the desire for a different lifestyle and the opportunity to work in a startup, he found himself immersed in the Maltese entrepreneurial scene that led to the creation of Binderr, a startup focused on improving the productivity of legal firms and corporate service providers. Prior to venturing into his own startup, among other jobs, Jacob served as a Partner at Bolt, a renowned platform connecting users with cars, motorcycles, scooters, e-bikes, and food delivery services. Jacob himself played a pivotal role in launching the platform in Cyprus, Malta, and Tunisia, leading these markets to establish dominance in the taxi and cab industry. Building on this success, he later spearheaded the launch of Bolt Food, which also achieved significant acclaim.
During this interview, we explore the challenges he faced during Binderr’s development, the inspiration behind it, and the potential impact of artificial intelligence (AI) in the corporate technology environment. Additionally, we had an insightful conversation about the current Maltese startup ecosystem.
Can you walk us through what Binderr is and how did the idea for Binderr first came about? Share any obstacles or challenges you encountered during the process of building the company, and how did you overcome them to shape Binderr into the startup it is today?
In the beginning, Binderr started as an accounting app offering solutions for freelancers and self-employed individuals. After encountering some difficulties with the business model, we decided to approach accountants instead. However, it was during discussions with corporate service providers (CSPs) that we discovered a market need and after two years we shifted our focus. By developing an operating system for CSPs, automating corporate processes, and simplifying the anti-money laundering know-your-customer (AMLKYC) procedures, Binderr began catering to the unique requirements of the corporate services industry.
The journey to building Binderr was not without obstacles. Initially, we faced challenges in finding a viable business model while serving self-employed individuals. However, upon pivoting to the CSP market, we discovered a more sustainable and scalable solution. By actively listening to potential clients and adapting their offerings, we were able to overcome these challenges and refined the product to better align with market demands.
What inspired you to focus on improving the productivity of legal firms and corporate service providers with Binderr? How did you identify this particular market need?
I was inspired to focus on improving the productivity of legal firms and CSPs after engaging with accountants who expressed their dissatisfaction with the lack of corporate tools and technology. This insight prompted the shift in focus to CSPs, where Binderr could provide increased value at a higher price point. The aim was to streamline processes, automate repetitive tasks, and enhance collaboration within CSPs, resulting in improved operational efficiency.
How do you see Binderr developing over the next 5 years?
Looking ahead, we are planning to expand our customer focus beyond CSPs and include legal professionals, accountants, auditors, and notaries. Geographically, the goal is to establish a presence in every European country, leveraging the scalability of Binderr. By offering a comprehensive solution and continually refining the offerings, we envision steady growth and increased market penetration in the next years.
What are your thoughts on the potential impact and prospects of artificial intelligence (AI) in the Corp tech environment? How do you see AI shaping the future of productivity and operational efficiency for legal firms and corporate service providers?
I personally believe that AI will have a significant impact on the legal industry, particularly in terms of productivity and efficiency. While AI is not expected to replace lawyers entirely, its integration into legal processes will enable greater efficiency and empower lawyers who adopt AI tools. Tasks such as document summarization and contract analysis can be expedited, allowing legal professionals to focus on higher-value activities. By embracing AI, lawyers can become more efficient and stay competitive in a rapidly evolving industry.
What advantages does Malta offer to startups and entrepreneurs? Are there any specific government initiatives or policies that support the growth of startups in the country?
Malta offers several advantages for startups and entrepreneurs. From a tax perspective, there are significant benefits to incorporating a company in Malta. The country provides a favourable tax environment, including the possibility of a reduced corporate tax rate for certain activities. Additionally, Malta has a relatively straightforward process for setting up a business, with accessible government services and supportive institutions.
What are some of the biggest challenges that startups in Malta typically face? How have you personally overcome these challenges in your entrepreneurial journey?
Startups in Malta encounter challenges related to limited access to funding, a shortage of experienced talent, and the lack of a mature startup ecosystem. While the Maltese government has taken steps to attract foreign talent through residency schemes and nomad visas, the availability of skilled professionals, particularly in engineering, remains a concern. Overcoming these challenges requires resilience, resourcefulness, and taking advantage of the supportive initiatives and networks available in Malta.
While Binderr has been fortunate in securing funding due to our track record, accessing financing can be a challenge for foreign entrepreneurs in Malta. The country’s ecosystem still needs further development to attract more venture capital and angel investors. Local banks may present challenges in terms of providing startup funding, emphasizing the importance of seeking alternative sources such as international investors or crowdfunding platforms.
How would you characterize the level of talent and skilled workforce available for startups in Malta? Are there any efforts to attract and retain top talent in the country?
As I said before, Malta is currently grappling with a shortage of skilled engineering talent, which can be attributed in part to its cultural context and historical focus on other industries. To tackle this issue, the Maltese government has implemented initiatives to attract foreign talent, including tailored residency schemes for entrepreneurs and skilled workers.
However, despite these efforts, Malta still lacks a comprehensive ecosystem that encompasses individuals with experience in high-growth ventures, those who have successfully participated in building unicorns, and those who possess a deep understanding of the associated challenges. Consequently, the country faces difficulties in retaining a pool of talented individuals within its borders due to the absence of such an ecosystem.
Nevertheless, the country has demonstrated its adaptability and ability to attract skilled professionals from abroad by creating specific ecosystems, such as the thriving gaming industry. These targeted efforts showcase Malta’s potential to overcome its talent shortage and foster the development of a more robust and diverse workforce.
Having been involved in the startup scene in Malta for a significant period, how have you witnessed its transformation and growth over the years? Based on your insights, how do you foresee the future evolution of the Maltese startup ecosystem?
The Maltese startup ecosystem has evolved significantly in recent years. I believe Malta holds a favourable position for entrepreneurship, although it takes time to develop a thriving ecosystem. However, there are numerous advantages to choosing Malta as a foreigner to establish your business. Beyond the obvious benefits, the lifestyle and connectivity are exceptional. Having been involved in business ventures in this region for many years, we’ve recognised the abundant opportunities available in Malta, as well as in North Africa, Cyprus, Greece, and Italy. It’s like being situated at the centre of a hub with a multitude of prospects, especially for those who may not be the best fit to compete in the United States. The growth potential in this region is significant, and based on my experiences building companies in North Africa, Cyprus, Greece, and other areas, I would undoubtedly select Malta as the ideal location to launch a business.
While it still faces challenges, the government’s initiatives and support programs have made a positive impact. The ecosystem has seen an increase in the number of startups and support organisations, creating little by little a more vibrant environment for entrepreneurs. Continued collaboration between stakeholders, increased access to venture capital, and further integration of technology will contribute to the ecosystem’s growth and development.
Read the orginal article: https://www.eu-startups.com/2023/06/navigating-the-maltese-startup-ecosystem-an-interview-with-jacob-appel-founder-and-ceo-of-binderr/
