Budapest Letters #23
๐ Hi All! Great to have you back. This is Budapest Letters, my newsletter covering startup and small business stories from the CEE region, or interesting developments that might have something to do with this part of Europe. Hope you will enjoy it!
Before we jump into edition #23, big shout out to our new subscribers, good to have you here. And one more thing before we roll, if you like what you read, subscribe + share ๐
Cheers, Aron
๐ข TL;DR
Top stories this week: โ๏ธ Non-fungible tokens (NFTs) might be taking over the world โ๏ธ Plan A, Ampler Bikes and Lingvist raised ๐ต โ๏ธ Romaniaโs EcoTree is revolutionizing waste management โ๏ธ Deloitte confirmed that NFTs are going ๐
๐ฅ Story of the Week
According to most people, non-fungible tokens (NFTs) might be one of the biggest scams in history or one of the best innovations ever to empower artists and boost the digital arts. While I would rather not take sides in this debate, I simply cannot resist the temptation of following the NFT market.
To me, all of it seems to be fresh, positively goofy and futuristic. I mean, come on. When a basic looking digital collage is snatched up for $69M or a .jpg that could have been drawn by a 5-year-old is bought for $530M, well, that is a lot of fun.
And as one would rightly expect, corporations want in as well. From McDonaldโs to the NBA and American Eagle Outfitter numerous big firms want a piece of the pie by launching their own NFTs. Similarly, many artists around the globe that were sidelined by the establishment (e.g. due to race or geography) can now sell their NFTs directly to consumers without a middleman (e.g. galleries, critics).
Of course, serious drawbacks exist. For example, do you really own a digital piece of art that anybody could see, download and re-sell? Like with NBA TopShots. Maybe. I have no clue. But one thing is certain, NFTs are a volatile bunch.
Still, if artists can get an additional revenue stream (especially overlooked ones), while at the sames time people can re-live the excitement of collecting things at reasonable prices (obvisiouly not CryptoPunks or Beeples), that seems cool.
But folks, keep in mind, this was not an investment advice ๐
Show Me Da ๐ถ
๐ Plan A, a greentech startup from ๐ฉ๐ช with ๐ง๐ฌ roots, received โฌ8.6M, led by HV Capital, with participation from Keen Venture Partners. The startup, which offers a software solution that helps businesses monitor and reduce their emissions, will use the fresh funding for international expansion and fine-tuning their tech.ย ย ย
๐ Ampler Bikes, an e-bike startup from ๐ช๐ช, nabbed โฌ7.4M, led by Taavet+Sten, with participation from Metaplanet, Ambient Sound Investments and Ragnar Sass, a respected local business angel. The startup, which designs/builds/sells state-of-the-art light electronic bikes, will use the newly raised money to enter the Dutch and Swiss markets + open a new carbon-neutral bike factory.
๐ Lingvist, an edtech startup from ๐ช๐ช, landed โฌ5.1M, led by Rubio Impact Ventures, with participation from Rockaway Capital and Metaplanet. The company offers a big data and AI-driven language learning app that adapts courses for each and every users own pace and personal abilities.
Congrats to all teams!
๐จ Startup Alert
This weekโs alert is on EcoTree, a smart waste management startup from ๐ท๐ด that offers a platform for business in that specific industry to digitize operational processes and legal documentation (i.e. make the leap into the 21st century).
According to a profile on the company by EU-startups.com, in connection to its fresh โฌ433k investment, it has active contracts with multinational clients from the beverage, food and retail industries. More than 60 users, representatives of waste producers, manage all their waste operations directly through the EcoTree digital platform. In addition, more than 40 nationwide waste collection companies licensed for all waste types are registered on the platform and fully operational.
๐ง Food
Deloitte, a professional services giant, has recently published the 7th edition of its well regarded Arts & Finance report that aims, as per the firms own words, โto act as a barometer for the emerging art and finance industry and highlights the main trends and developments in the art marketโ. Key insights include:
During the pandemic, 86% of younger collectors had seen an increased interest in art investments, compared with 61% of older collectors.
85% of younger collectors surveyed stated blockchain technology could transform the way arts business is currently conducted vs 52% of olders.
64% of younger collectors expressed a strong interest in NFTs (vs 18% of older collectors), while 43% said fractional investment linked to artworks interested them - significantly higher than 17% of older collectors.
But check the report, it is a good read. And yes, youngsters really dig NFTs.