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HEAD CAPITAL LAUNCHED THE FIRST AHEAD ACADEMY STARTUP BOOTCAMP

On 10th and 11th of August Head Capital presented the first ever Ahead Academy Startup Bootcamp for four startup teams. The event was organised in cooperation with Finora Capital and Teder Law Firm and took place in Teder’s offices. The goal of the Bootcamp was to create an investor deck that is suitable for funding the growth of their startup. Throughout the two days, many specialists from relevant fields shared their knowledge, experience and advice to the young startup teams.

First day of the Bootcamp was mostly dedicated to funding and financial aspects which startups face in the early phases. The first roundtable with Andrus Alber (Finora Capital), Kaidi Ruusalepp (Funderbeam) and Kaspar Hanni (EstBAN) focused on funding, especially on investors – where to find them, how to approach them and how to convince them.

Second roundtable, which focused on finances, was attended by Valeria Stulova (Redgate Capital), Mairo Kaseväli (Redgate Capital), Henri Laupmaa (Fundwise) and Toomas Tamra (Nordic CF Advisory). The experts advised startup teams on financial planning – how to keep finances in order, developing the price, what are the most common problems and how to avoid them. Everybody also had a chance to ask a lot of questions.

After the finance roundtable, Head Capital’s summer interns who had previously gone through the process of creating the investor deck themselves, provided the teams with some advice on building the investor deck and what the main focus areas are.

The startups also had time to do some teamwork and the first day ended with a presentation of what they had done so far. The experts gave constructive feedback and teams went home with some good advice. The next day started with legal advice from Teder LawMarko Pikani and Rasmus Õisma gave the startups some tasks and also provided legal advice to every team personally.

The second and final day ended with the improved presentations which consisted of elevator speech, onepager and 10-minute investor presentation which all got feedback from different experts. Bootcamp ended with networking and celebrations!

 

WHO IS INVESTING INTO THE MUSIC INDUSTRY?

Since the end of the 20th century, a global shift has occured within the music industry. The demand for Physical Music (CD’s, Vinyl etc.) is heavily falling at the expense of Digital and Live Music. This transformation, which gave a boost to a declining industry, has created an exciting environment for new technologies and fans, who now can access more music than ever before. But how does this transformation impact the way money flows into the industry? Who are now the main actors?

 

NEWFOUND GROWTH

 

Thanks to Digitization (the process of converting information into a digital format), Music Industry has taken a step forward after significantly droping during the first part of the 21st century, changing the way money is distributed throughout the industry.

Record Labels are still the primary investors in Music. No other segment of the music sector invests in artists and the industry as a whole on anything this scale.
In addition to investing directly in artists, music companies also invest, along with distributors, in the fast-developing infrastructure of the Digital Market. Substantial investment goes into Systems that manage the large and complex task of efficiently and securely distributing more than 40 million recordings, videos, and images across multiple platforms. This ensures the right music is made available around the world in the right format.
This investment remains constant as record companies adapt to keep the pace with the needs of each individual digital service.

Streaming Services are also important actors when it comes to investing into the industry. Recently, we have observed Streaming Services like « Spotify » investing into making its own records in collaboration with artists. But still, The Spotify-owned masters are seen internally as something of an experiment, rather than a large-scale disruption to the platform’s catalogue – which, remember, holds over 30 million licensed tracks.

 

MUSIC TECH

 

How about VC’s and Private Investors? How are they reacting to the music industry? For now, investors in this area are still scarce. Indeed, Music Industry is largely viewed as a risky investment with the « licencing » and « value gap » still a topical issue. The financial investors are investing into this area very modestly, yet, mainly through funding platforms (« Kickstarter », « AngelList » etc.), incubators programs, or directly cooperating with artists and music-linked companies.

The Music Industry is widening its scope, however, thanks to major technological advances.
Investments are growingly done and injected into promising and emerging enterprises that are actively developing the Music Tech industry with their innovations. Music Technology (or Music Tech in short), and here more specifically the Digital and Electronic side of Music Technology refers to the the use of electronic or digital instruments, computers, and other equipment by a musician, sound engineer, DJ or record producer to make, perform and record music. Music Tech has always been present throughout history of Music, with innovations transforming the way sound is produced, stored and listened to. With Electronical and Digital Music Tech being the latest descendant, finding its roots in the early 20th century and starting to really develop during late 1960’s with the invention of « synthesizers », instruments that were able to convert electrical signals into sounds. Today, Music Technology is more than ever on the high, with Streaming platforms, bluetooth-connected headphones, or music-editing softwares now part of our everyday lives.

A recent example of Music Tech’s development could be smart speakers, which are now becoming one of the new trends when it comes to Music Tech. Smart speakers are wireless playback devices that often feature voice activated digital assistants, excluding the physical swiping of a screen. According to Forbes, « The time to pay attention to audio (and smart speakers) is now ».

 

With Streaming, Live Music and techological advances becoming increasingly popular, the Music Industry has managed to be back on track, with a $1.1 billion increase (2016) in Global Recorded Music Revenues compared to 2014.
Though, the Music Industry shouldn’t rejoice too quickly. Indeed, the recent years of growth are welcome news, meaning that the nascent streaming market place has begun to pay off. This doesn’t erase 15 years of decline, and some uncertainty about the future. This may change soon, however.

 

INTERNATIONAL BUSINESS DEVELOPMENT PROGRAM NGAL® TOOK STARTUPS TO THE NEXT LEVEL

This year, an exclusive business development program – Network Globally, Act Locally (NGAL) takes place from 5th to 24th June, engaging five universities from USA and Estonia: University of Tartu, Tallinn University of Technology, College of Charleston, The Citadel (Military College of South Carolina) and Nebraska Wesleyan University.

NGAL is all three-week learning program for early stage student start-up teams, which started with a bootcamp in Estonia (1 week in Tartu, 1 Week in Tallinn) and ends with a camp in Charleston, USA.

The Tallinn bootcamp was taking place between 12th and 16th of June and Veikko Maripuu, the managing partner of Head Capital was present, performing and acting as a jury member on the 15th of June.

As an investor and mentor, Veikko was giving a lecture to the teams about „How to make a great Investor Pitch“. He emphasized that you should be credible, keep your story short, but make it count to engage the investor.


After the lecture and the open discussion with the teams, Veikko had one-on-one meetings with some of the teams to provide them with specific information, advice and give them an investor’s point of view. Some of the startups needed funding, some just good advice.

To sum up, never go unprepared. Practice builds confidence.

On Friday, June 23th NGAL® business development program ended with an exclusive pitching event at The Citadel. Among ten student teams, the first, second and third place went to Estonian startups!

Head Capital welcomes summer interns

Each year we select talented young students from around the country and abroad to join our Careerseekers internship program and get real-life experience working alongside with us.

On Monday we welcomed them and kept them busy with an introduction to the team, a tour of the office and a presentation of the projects they will be working on.

Over the course of the summer our interns will be taking responsibility for different tasks connected with Head Capital as well as its portfolio companies, ranging from market analysis, to creating marketing content, to building new investment opportunities. We also scheduled some fun too ! Our interns will attend career developing events, start-up competitions, visit one of our partners’ center and campus (Mektory), enjoy a full immersion into the Estonian culture with a stop to local festivals and numerous other fun activities and events!

 

We will be bringing up their work and tale their journey here on our blog. Stay tuned for future news about our interns.

Welcome to Marleen, Nikolay, Andres, Atte and Genesis! 

 

Head Capital signed a cooperation agreement with the Innovation and Entrepreneurship Center MEKTORY

On Monday, March the 20th, the CEO of Head Capital Group Veikko Maripuu and the Vice-Rector of Innovation and Entrepreneurship of Tallinn University of Technology Tea Varrak signed a cooperation agreement, which main goals are to provide startups with private sector experience, to stimulate the economy and to strengthen their mutual relations.

Mektory brings together entrepreneurs, scientists, students, professors, schoolchildren and investors to generate innovative ideas and bring them to life as a team. Head Capital is mostly connected to TTU Mektory Youth Entrepreneurship Ecosystem, which include youth program „Bright Minds“, pre-incubation program „STARTERtech“, startup competitions and incubation activities, such as possibilities to meet and get introduced with investors, funds, and international delegations.

This cooperation agreement is to support the development of new and fresh business ideas and therefore improves competitiveness of the Estonian economy. It also provides students with professional advice and strengthens the collaboration between students, businesses and the university.

The Chancellor of Estonian Ministry of Education and Research Tea Varrak says that cooperating with enterprises makes us stronger internationally, which is precisely what Estonia needs.

Veikko Maripuu urged to sign the partnership agreement with Mektory on a clear understanding of the need to encourage entrepreneurial thinking and support innovation. “We want to collaborate, to find new entrepreneurs together, reinforce their skills and prospective, to openly notify when a young entrepreneur’s business idea will not work out, but also constantly encourage them to come up with new business ideas and initiatives, as one of the most important characteristic of an entrepreneur is commitment.”

New Investment Company Head Capital launched

12.07.2016 Press Release

Redgate Capital, a leading financial advisory and investment firm, divides into two separate companies: Redgate continues under the leadership of Aare Tammemäe and Mart Altvee, while Veikko Maripuu will continue to head the provision of investment and asset management services under a new entity.

Within the past seven years Redgate Capital has grown into a leading Baltic financial services company. Its two main areas of activity are corporate finance (incl. advising mergers & acquisitions, capital raising and advising sales of real estate) in the Baltic States and investment activities.

The expansion plans and wider investment focus have brought along a shift to the new set-up, which enables to offer more clearly distinctive services. With the aim to strengthen the focus on their respective activities, current Redgate Capital will be split into two separate legal entities. From now on, Head Capital, led by Veikko Maripuu, will focus mainly on investments and asset management services with a broader scope than before, while Redgate Capital, led by Aare Tammemäe and Mart Altvee, will focus on providing investment banking and investment management services they have offered since founding of the company. Following the split-up, the two entities will continue as close cooperation partners, and according to plans, the necessary legal and organizational formalities will be finalized during the summer.

Aare Tammemäe has confirmed that Redgate will continue to provide financial advisory services, as well as direct investments into companies. ”The financial advisory unit of Redgate is among the most experienced ones in the Baltic region, having advised dozens of sales and purchase transactions of companies and led large-scale projects of Estonian companies raising capital from Baltic investors.  We have long-term and ambitious growth plans in Redgate. We see opportunities for growth both in the field of financial consultancy, especially possibilities for companies to raise financing from capital markets, as well as in investments into Estonian companies. We wish to motivate our current team members in a way similar to the owners, as we strongly believe that tying the talents in our team in long term is necessary for growing on from the position we have already achieved,“ Mr Tammemäe added.

According to Veikko Maripuu, under his leadership Head Capital team, having strong expertise in asset management services, will concentrate its activities on different investments, including partly also to new activities which under the former Redgate structure were not possible. ”The aim is to widen the scope of our investment activities, which also includes a stronger and more systematic focus on investments in companies in their different growth phases and different asset classes,“ Mr Maripuu added. He says that new investment opportunities are sought together with international partners and new markets as well as industries are observed. At the same time, current activities, where Mr Maripuu has already more than two decades worth of successful experience, will also be continued.

Under the lead of its founders Veikko Maripuu, Mart Altvee and Aare Tammemäe, Redgate Capital Group has offered financial advisory and investment services to companies, institutional and private investors and to the public sector in Estonia, Latvia and Lithuania since 2008, with offices located in Tallinn and Riga. The employees of the company are among the most experienced professionals in the Baltic region. Redgate achieved a place in top 5 in the Top of Gazelles published by the Estonian business newspaper Äripäev in 2014.

The unaudited consolidated revenue of the companies belonging to Redgate Capital Group was 8.1 million EUR in 2015, with profit for the same period being 90 thousand EUR and balance sheet total 7.1 million EUR.