Meet Taavi Kotka, co-founder of KOOS
I’m Taavi Kotka, co-founder of KOOS. I started my career as a programmer and after 2 years joined as a co-founder with a group of students with whom we built up the largest software development company in the Baltics, now known as Nortal, eventually becoming their Managing Director. I then worked for the Estonian Government as their first CIO, helping to oversee the country’s development as an advanced digital nation and co-founding Estonia’s national e-residency programme, which was the first of its kind globally.
Since then, I’ve moved back into the private sector, helping startups develop and consulting large enterprises and governments on digital transformation, which has brought me to co-founding KOOS.
What inspired you to launch your business and what is the end goal?
KOOS was founded on the principle that in business, you can’t just expect a free lunch from people. Whether it’s great reviews, new business leads, introductions or top hires, all of these things require tapping into your network and community and require someone else’s time, expertise or contacts. These are all extremely valuable to a business and should be rewarded. KOOS not only allows this, but takes this one step further. KOOS simplifies shared ownership to let business-critical communities earn and own equity-like stakes in that business. These stakes provide a return when certain goals are met – and allow business success to be shared by the people who deliver it. As a result both business and community can benefit measurably.
How did you fund the business in the early stages?
We are currently at seed round and we have been funded by a mix of notable angel investors, including Markus Villig, founder of Bolt, and Kaarel Kotkas, founder and CEO of Verrif. Our platform has also been built with support from top legal firm Ellex in emerging tech. In September this year, we closed a €4m seed round led by Plural Platform, LocalGlobe, Tiny.vc and Matt Clifford. Plural’s investment has also come with the support of industry veterans Taavet Hinrikus, former CEO of Wise (formerly TransferWise) and Sten Tamkivi, co-founder of Teleport, both of which will take on active advisory roles to accelerate the roll out of our platform.
What’s the most common problem your customers will approach you with?
Our customers are businesses such as marketplaces, for example, where community engagement is a significant part of their business plan. The most common problem that these customers have is that they want to give an equity-related reward to their community but they don’t have the infrastructure, mostly on the legal side, to make this happen easily. That’s the exact problem we’re trying to solve at KOOS. We simplify shared ownership and allow communities to earn and own equity-like stakes in these businesses, which are returned when specific goals are met.
How do you think you’ve innovated in your sector and why?
Equity based rewards are typically only reserved for employees and C-suites. KOOS allows a business to reward anyone in their community - be it customers, gig economy workers or contractors for example, with equity based tokens. Founders can formally use equity to incentivise new groups to help meet their business goals. We believe this will completely change community engagement and could even completely change some community-based business models.
What plans do you have for KOOS over the next two years?
We are spending the next 12 months focusing on our UK launch, onboarding new customers showcasing a few core use cases. We have some really exciting use cases already happening, from ride sharing companies that are engaging their drivers to music platforms who want to incentivise content creators.
What was the journey like when you decided to raise funding for your startup? And what tips would you give to early-stage founders getting ready to take the same path?
Pre-seed and seed rounds are easy to do if you have a great idea and team in place, but it becomes difficult if real numbers don’t match your vision. Fundraising is gruelling, takes everything out of you and is a full time job. If you are lucky enough to have a Co-founder, decide which one of you will be fundraising and which one of you will run the day-to-day operations during the fundraising period and draw that line early on. And keep your physical and mental health routines in check.
What’s the most important question entrepreneurs should be asking themselves?
Where does this fit into the businesses wider goals? It’s very easy to get caught up in little things when you’re a Founder, focus is key.
What routines have you got in place to ensure you don’t ignore your mental health?
Having four children is an excellent way to become mentally resilient! But, on a serious note, I get a lot of support from my wife and children. We also have a girls-only tech school where more than 2200 girls study and seeing their progress is always really motivating.
What are your top three tips to fellow entrepreneurs to look after their mental health?
Use your calendar like you would for work. Book in time for exercise, social events, relaxation, no screens - and stick with it
Make a regular effort to socialise with people who don’t work in your field. It might be family, or school friends. Being around people who know nothing about your job will keep you grounded and make you realise that your work isn’t the be all and end all
Take regular breaks - including holidays. And actually switch off. This is important, to prevent burnout
What’s your best advice for early-stage tech founders who are getting ready to launch their MVP?
Trust your community and listen to them, they have a wealth of valuable intel at their disposal. And, if you’re successful, share the triumph with people who helped you during the journey.
