There are two channels that Garage48 works through. In HUB, meaning open offices at Tallinn city centre, start-ups can rent space for small money. The other avenue being events: in 48 hours, ideas are turned into prototypes.
Buzzing hub pushing start-ups into action
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For Garage48, most of the funds needed come from sponsors. Among others, supporters include Skype, Google, Black-berry, Nokia and US AID. And they do gain some little income from renting out the HUB, and from the Garage48 week-end events.
HUB community
Garage48 aims at offering Tallinn based start-ups space for them to work. HUB has all it takes to do that – from the Internet to a kitchen corner. «A core value of Garage48 HUB is getting lots of young entrepreneurs together, doing similar stuff,» says a Garage48 founder, Ragnar Sass. «This creates a community feeling; they may relate, exchange knowhow, share ideas.»
In addition to that, HUB offers events, a couple of hours in length, to motivate the start-ups. Often, an experienced entrepreneur will hold a speech at HUB, sharing his/her success and being available for questions. The events are open to all.
For example, on the first Thursday of each month, they have Open Coffee – morning coffee plus other entrepreneurs’ experiences, developing fresh relationships. Yesterday morning featured the new Microsoft Estonia chief Rain Laane, talking about his journey.
Fast-line start-up production
Garage48 HUB was established in 2011. That very year, the first Garage48 week-end hachathon also took place – an event drawing over a hundred people, each presenting their business ideas; after that, teams are put together and given 48 hours to turn the ideas into prototypes... or at least some part of such. As start-ups go, the idea will have to be a mobile or web-application.
The events always happen over week-ends, so that those working full-time can also attend. For participation fee, Mr Sass has a fancy word: charge arising from obligations. «It covers a very small part of our expenses; even so, it ensures that people show up,» says Mr Sass. The events include food and drink for the start-uppers.
If, at first glance, Garage48 events appear to be meant for IT-educated folks only; then that is not the case. «It is our goal to gather people of as diverse backgrounds as possible,» says Mr Sass. «Mobile and web applications may solve problems at various areas of life. A developer may well create a code; however, he may not be aware of troubles at theatres, or of the worries of parents. By mere googling, it is much harder to acquire information on certain fields of life, than when being able to talk to a specialist of the field.»
For instance: a Garage48 event in Tartu featured a meteorology specialist, whose idea was to create software for farmers. From that, a start-up called Vitafields sprang forth, securing development fund support and currently busy trying to spread the solution over the whole wide world.
«By now, we have a dozen or so teams, out of a couple of hundred, which seem to survive and make progress. A couple of those are already making income,» explains Mr Sass.
Next to activities in Estonia, Garage48 has actively spread abroad – Garage48 events have taken place in East-European countries, as well as in five African ones.
«We are always financially supported by local enterprises,» says Mr Sass, adding that start-up movements are increasing in popularity all over the world. «In Africa, our first partner was Google, which also invited us – having already enjoyed excellent cooperation with Google’s developers.»
In 2011, a Garage48 event was held in Uganda. Out of that came a successful start-up, later making it to Barcelona mobile congress and securing a place among top three.
Mistake friendly environment
According to Mr Sass, to be successful it is vitally important to make mistakes and learn from these. «Even Kazaa – the first project by the creators of the world-famous Skype – was a failure, business wise,» recalls Mr Sass. Numerous ideas, by now huge successes, might have appeared empty and meaningless to begin with.
«Without trying and testing things out, world changing ideas would never be built,» he says, encouragingly. «By Garage48 events, we want to provide people with opportunities to start a new business, make mistakes while at it, and to learn immediately.»
Hub at heart of town
• Garage48 has organised events in Estonia, LAV, Kenya, Uganda, Nigeria, Ghana, Latvia, Finland, Ukraine, Russia and Belarus.
• Garage48 was established in 2011 by Ragnar Sass, Martin Villig and Priit Salumaa. The foundation also has a 3-member governing council and four employees.
• Start-up means a new company created to develop a product or service, characterised by indefiniteness, usually centred around innovative technology or novel business models.
Source: Garage48, Enterprise Estonia