March 30, 2021 - The Worcon startup from the Varaždin Technology Park was founded by Tin Keškić, a 25-year-old from Varaždin, who is a mechatronics technician by profession. Now in 54 countries, the company is awaiting big investment. 

Worcon, Croatian Innovation & Personality in the Machine Tool Industry, is a platform that connects all manufacturers and customers in the world in metal, wood, rubber, plastics, and similar materials. Their first product quickly proved itself in the market in the B2B segment. In a year and a half, they gained more than 1700 customers from 54 countries.

The business concept is based on establishing cooperation and expanding the client's portfolio. As the service starts to be charged later, they are now reaping the first major fruits, and according to Keškić, in the first three months of this year, they generated more than 100,000 euros.

Their B2B system was launched in 2018 and the eponymous industrial portal with mechanical engineering and industry articles. Still, today they also publish a bimonthly magazine Manufacturing Bay that they send to 2000 addresses. In the middle of 2019, they were even on the verge of collapse, he says, but the turnaround was brought by the competition on the Rijeka business campus, where this startup was declared the best. It also attracted investors.

They stepped into the business with the first financial injection of the Fil Rouge Capital Fund, developed two online business platforms in two years, and already have numerous clients from all over the world.

Fil Rouge Capital initially decided to invest 50,000 euros, and the company then began training, and accelerated development followed. The Varaždin startup within the first generation of this fund, together with 24 startups, adopted first-hand knowledge of business live, specifically from Mate Rimac, who was Keškić's mentor time to Igor Leprince from Nokia.

During the Covid-19 outbreak, they received a new tranche of investment of 400,000 euros from the fund. Thus, their second project was created - a master plan with which they intend to be a leader in organization and planning in mechanical engineering and industry software on a global scale.

They are negotiating with new investors and plan to open the first offices abroad and new employments. Today's value is estimated at 100 million kunas, and the plan is to be a global leader in the project management system in 2-3 years.

Artificial intelligence is connected to the new platform. Through the 3D model, the best technology and the process in which the desired machine product is produced can be answered by predicting the product price. The errors are reduced to about 10 percent deviation. The development goes in the direction of reducing the error below 5%, which is an excellent result compared to the current calculation curves that exceed 20%, depending on the model.

"Today, we are a company with 12 employees and external associates. The Office is in Varaždin, where development, management, and administration occur, while the developers, sales, and marketing are in Zagreb. We are negotiating with several external investors on a new investment that should exceed HRK 14 million. As part of the new phase of development, we intend to hire about 15 more employees by the end of this year, and open offices in Milan, Munich, and Toronto," says Keškić.

Their new system is called Machine Desk. It is currently used by 10 companies with about 600 people, which corresponds to their capacity. Due to excessive demand within a month, they already have about 30 new customers waiting to implement the system. For this year, they predict that the system will have more than 5,000 users.

"If in small Croatia we managed to gather about 40 companies in a month, only the sky is the limit when we start internationalizing our business. For project management systems in 2 to 3 years, we believe we will be a leader in the world. We are not afraid of competition, because the main thing we have learned from the fund is that all big companies are afraid of us small ones. After all, we are growing so fast that they either have to buy us or cooperate with us." 

"An example is a company with similar solutions that was recently bought for about 350 million euros. To our knowledge, they had 100 companies on their system, which is an average of 20,000 users," says Keškić. By the way, the fund has a 20% stake in Work Connect, another minority member 7%, and Keškić holds a majority stake.

For more stories of Croatian excellence and innovation, check out the TCN Made in Croatia section. 

February 26, 2021 - Although Croatia is better known for tourism, the world of Croatian startups is an increasingly fascinating - and successful - place. 

After many years of writing mostly about tourism, the world of Croatian startups is an area that I find not only much more interesting, but also one with infinitely more potential. 

These young entrepreneurs are of the younger generation, less held back by the baggage of the past, and much more focus on business and the future, rather than politics and history. There are, I believe, a fundamental cornerstone in the building of Croatia 2.0.

It has been a pleasure meeting several of them in person, to listen to their youthful drive, ideas and energy, and to watch their progress as they become more internationally recognised. As such, it was great to see two of my favourites feature in an interesting little list by www.eu-startups.com on 10 Promising Startups to Watch in 2021. 

These two Croatian startups were introduced as follows:

Worcon – Founded in 2017, Worcon is a B2B marketplace, connecting industry buyers with suppliers in manufacturing and CNC machining industry. Their solution is suited for small and large manufacturers, cooperators or large enterprise companies looking for a new market or looking for specific products with certain dimensions and quality. The Varaždin-based team landed around €400K in 2021.

MIRET – This Zagreb-based startup recognises the impact of fast fashion on the planet, and has created a new footwear technology solution using around 97% natural fibres. In 2020, the company closed a crowdfunding round, a convertible note, a grant and a private equity round of around €300K to reach more customers with their sustainable solution.

Both were featured in some depth recently on TCN, after I sat down with Worcon CRO Tin Keskic and MIRET co-founder Domagoj Boljar, whose shoe company recently won Sustainable Fashion Gold at the 14th IDA Design Awards.

You can learn more about MIRET's amazing story in our TCN feature - With 20 BILLION New Shoes a Year, Meet MIRET's 97% Natural Eco Sneakers Collection.

Worcon is also another fantastic success story,  as CEO Tin Keskic explained during our sit-down chat ahead of the launch of his Machine Desk project management software release. Learn more in Worcon, Croatian Innovation & Personality in the Machine Tool Industry.

Two great stories in this fabulous list of ten Croatian startups to watch in 2021. And these are the tip of the iceberg. Follow the TCN Made in Croatia section for the latest new innovations coming out of Croatia. 

February 2, 2021 - Croatian entrepreneurial excellence reaches all sectors of the economy. Meet Worcon, shaking things up in the machine tools industry - with a smile.  

One of the most interesting and dynamic things happening in Croatia these days is the emergence of an inspiring generation of young entrepreneurial minds who are focusing on developing new tools and products for the global stage. With no time for politics, most have no memory of the Homeland War - indeed many were only born after it finished in 1995. They are firmly focused on their ideas and how to realise them in a fast-moving world of technological development, venture capitalists and AI. 

As a journalist, I am coming into more regular contact with these bright minds of the future, and every meeting leaves me a little hopeful about the future, as well as uplifted, despite the gloomy times we find ourselves in. And never was that more true than meeting Worcon CEO Tin Keskic in his office in Varazdin Technology Park recently. 

To be honest, I was a little apprehensive before the meeting. I may be a good writer, but how do you make Worcon's key products  - a B2B marketplace and project management system for the machining industry - interesting to the average reader?

Simple, it seems. You just have to listen to Tin, whose smile and infectious laugh were constant companions throughout the meeting. 

"The idea," he explained, " is just 1-5% of the game. You can have the greatest idea in the world, but if you cannot execute it, you have nothing. Let's call the idea X and the execution Y. If your idea is worth 10,000 and your execution is only 1, your business is worth 10,000. And if your idea is poor and only worth 1, but your execution is 10,000, you have the same. Now imagine you have an idea worth 10,000 multiplied by execution of 10,000. X times Y equals 100 million."

It was clear from the opening minutes of our chat that while Worcon's ideas are great, little progress would have been made without the executions - otherwise known as persistence, dedication and diligence. 

Tin has worked with his hands all his life. First with his grandfather, who was a carpenter, then with his father working with steel. After studying electronics, robotics and engineering, he was thinking one day about the need for parts and where to find them. Yes, Google has the answer to many questions, but it is a hit and miss process, difficult to find the smaller and more obscure supplier. So he came up with the idea of creating a B2B platform of suppliers. 

There was no money to fund the business in the early days, except for his own pay cheque from working with his parents, which he invested in paying his first employee. And he was always late with the payment. There was no budget for advertising, and so a mixture of cold calling and emails (thousands of emails) was the only way forward. He was 21 years old. 

Initially, he allowed suppliers to list their services for free, but he soon learned that a free offer was regarded with suspicion, and that suppliers tended to respect sites where they had to pay. After building up a critical mass, he started to do just that, offering a very competitive listing price for suppliers, and a free listing of jobs required by buyers. Starting slowly in Croatia and the surrounding region, the number of suppliers started to grow steadily and become more global. There are now around 1,500 paying suppliers from all over the world.  

The concept is simple. A buyer needs a tool or part constructed. They publish drawings, specs and deadlines on the Worcom B2B platform, and the suppliers bid for the job directly with the client (examples from current jobs above). Job quotations typically take less than 24 hours. 

Business is extremely good. Two rounds of venture capital funding  - an initial 50,000 euro followed by 400,000 euro - have given him the confidence to go forward with his ambitious place. A third round of funding in excess of 1 million euro is expected this year, which will help fund a rapid expansion, including sales offices in Milan and Munich and a total workforce of 20. 

With all the cold calling and learning how the industry worked in his native Croatia, Tin was struck by the lack of systemisation many Croatian companies have in their business operations. 

"So many companies were running their businesses in Excel, or even 'maybe Excel' (the boss would have everything in his head). One CNC shop with a turnover of 30-50 million and 70 employees is a case in point. They had no software and were doing many of the calculations in their heads. They are losing so much time and money, unable to accurately predict what is necessary to meet deadlines, or the best time of year to buy supplies - the price of steel varies a lot according to time of year, for example."

So Worcon came up with a project management system for CNC shop floors called MachineDesk, which is about to hit the market.  MachineDesk helps the client every step of the way, from materials ordering and price tracking, to preparation time and hours needed. The project and deadline are entered into the system, after which calculations on how much time and materials are needed, pressure points on additional labour, automatic ordering of parts, and tracking of commodity prices.  Workers will have tablets and can track the price of, for example, steel, which has widely different pricing in March and September. This is where companies are losing big money. 

The software can tell the client with 99.9% accuracy how much he will need, including time calculations for things such as going to the warehouse, taking measurements etc - this time is not usually factored in. Everything is based on corrections, so if a 1,000-hour job needs 150 hours more, it will be even more precise next time. 

One of the key benefits of Machine Desk is accountability, and the ability of client and supplier being able to track progress in real time. There is a lot of theft of materials in the workplace, for example, and Croatia is no different to other countries in that. The system tracks each item, and if something is reported broken, the physical presentation of the broken item will account for that. 

With multi-warehouse options and full tracking, a German client using a Croatian supplier will be able to track progress of the order, including how many units were produced in a certain location on any one day. This should encourage efficiency and the meeting of deadlines, as well as giving the client a lot more security and peace of mind. An array of charts and spreadsheets are also available to show progress, useful for boardroom presentations. 

And while Machine Desk is 99% the focus right now, there are already exciting plans afoot for expanding the Worcon portfolio. 

"We are working with AI to read 3D models, if we succeed, we will revolutionise the industry. You will know your margins, we have AI, focused on prototypes and on companies who need something fast and now. We can sell this AI tech to bigger companies, getting smarter every day, and it will help them with their calculations."

The biggest success so far? Getting those two rounds of funding. When the first 50,000 euro came in in June 2019, there were very close to the edge, able to continue for perhaps 2-3 months more ("Imagine what it was like to suddenly then get 50,000 euro when you have been living off nothing."). He was just 24 when the second round of 400k came in last year. 

And the biggest disappointments?

"Haha, after promising my parents that we had a unique concept which was going to conquer the world, I then found that there was some strong competition in the United States. That was a setback, but we overcome it. And also, perhaps, the numerous fake investors here in Croatia, promising lots and delivering nothing. Thankfully, we found two great investors, and things are now going really well."

Advice for new Croatian startups?

"Just start. And do not be afraid to ask for help. Or money. If you can't do that, you are not in the game. Remember that the idea is only 1-5%, and X times Y can equal 100 million. You have to be persistent.

"I am happy to help other startups, and I am glad that two have managed to get initial funding through my help. I also coach several startups on their pitch deck, which is a crucial aspect of fundraising."

Looking back at when you started, would you be happy to be in the position you are in now?

"Haha, I should show you the spreadsheets and revenue projections and where I thought we would be. The Porsche was parked in the drive, haha. But yes, I am very happy. We have great products, great investors and an unbelievable team. I am glad that I had to struggle to get this far, rather than being given a million by a rich father. It makes you hungrier."

"Where will I be in 5 years? Exited from Worcon is the plan, and working on some new startups. With the knowledge I have gained and the people I work with, it will be so much easier next time, and there are SO many great ideas."

And I, for one, would be VERY interested to learn more about those startups. 

A fabulous Croatian startup with an even better attitude. One of the most pleasant interviews I have had in some time. 

You can learn more about Worcon on the official website.

For the new MachineDesk platform, click here.

Worcon has also launched its own industry portal and printed magazine under the name Manufacturing Bay, see above.

For more stories of Croatian excellence and innovation, check out the TCN Made in Croatia section.