For some time now, we have been supporting Munich startups in their first steps in the USA as part of the German Accelerator Tech Program. After having already ProGlove about their expectations for their time in New York, this time we turned our questions to the West Coast, where the Munich-based robot startup Franka Emika is taking its first steps in Silicon Valley. We spoke with founder Philipp Zimmermann about what Franka Emika want to take away from the accelerator program and where the biggest challenges lie.
Hi Philipp! First of all: What does Franka Emika do, when was the company founded, and where are you currently?
At Franka Emika, we specialize in the development, design, and marketing of sensitive, powerful, and unprecedentedly cost-effective industrial robots. We are guided by the vision of making robots a universally accessible, multifunctional tool, with humans at the center of their development. This means that unlike typical factory robots, which are so dangerous that they must be locked in cages, our Panda robot is designed primarily for use around humans and can assist them in tasks without endangering them.
Establish sales channels in the USA
This makes it possible for the first time to completely rethink automation and provide people with a safe and versatile tool with Panda. The democratization of such a key technology means that the underlying technology is not only powerful, but also affordable for everyone, flexible in use, and globally available. To this end, we founded Franka Emika in 2016 and have been delivering robots to our customers worldwide since Q3 2017.
Are you currently active abroad?
Yes, we ship Panda to many countries both within and outside the EU. We also currently have a team in Silicon Valley through the German Accelerator Tech Program to establish distribution channels in the US.
How did you decide that now was the time for US expansion?
In terms of annual robot installations, the US market is the third largest in the world. As inquiries and orders from America increased, we decided to establish a sales channel in the US to supply our customers there. We enlisted the help of German Accelerator Tech Just in time, so we decided to go to the USA in January 2018. In addition, Silicon Valley is a center for new technologies, and of course we want to be there with our robot Panda.
Networking in the Valley: Mentors help with contact
How did you find out about the German Accelerator Tech program and what made you decide to apply?
We've heard a lot about German Accelerator Tech in the past. The program is well-known in the German tech scene, and we even know several companies that have participated in recent months. So, it was clear to us from the start that the accelerator's support would greatly help us achieve our goals locally. Silicon Valley is certainly unique in its tech scene worldwide, especially in terms of networking opportunities. However, to find the right contacts, you need to be there for an extended period of time. German Accelerator Tech and its extensive portfolio of mentors are a tremendous help in this regard.
Valuable exchange with other startups
How did the application process go for you?
The application process was very straightforward, even though we decided to apply very spontaneously. After completing a few online questions and uploading a video, we were invited to a phone interview. At the "Celebrating Innovation" selection day, we pitched alongside 29 other startups and were fortunate enough to win a spot. Before we started, we attended a two-day workshop in Germany that prepared us for our time in the USA.
You're not the first people from Munich to participate in the German Accelerator Tech Program. Did you have a chance to talk to other participants beforehand, and if so, what did they tell you?
Yes, we exchanged ideas with several participants, which was very helpful. Not only did we get good insights and advice about the program, but we also received useful tips on things like accommodation and transportation. I would recommend one or two of these conversations to any future participants!
How did you prepare for your stay in the USA?
In addition to conversations with former program participants and preparatory workshops, we held several meetings with our mentor in the weeks leading up to the program's launch and contacted existing clients in the US. Of course, we also adapted our marketing materials accordingly to make the most of our time in the Valley.
Understanding US market regulations is more difficult than expected
What are your goals for your time in the USA?
The main goal is to establish a distribution channel to supply robots to our customers in the US and to develop a sound go-to-market strategy.
What do you see as the biggest challenge for Franka Emika in the USA?
The biggest challenge is understanding and complying with American market regulations. Figuring out how to import our robots into the US and finding a trustworthy distribution partner is more difficult than originally expected.
What do you expect from the German Accelerator Tech?
Building a network, starting a company in the US, and navigating legal issues are at the top of our list. We also look forward to connecting with other founders in the program who are facing similar challenges to us.
Where do you see Franka Emika in a year?
Since the American market is growing at an incredible pace, we ideally want to open a local office. We also want to continuously develop our product to offer our customers the most advanced collaborative robot on the market. This naturally includes continuing to grow Franka Emika with talented team members from all over the world.
We will continue to accompany Franka Emika on her journey in Silicon Valley and report on the experiences Philipp and his team are gaining in the USA.
