Distinkt - Product Authentication with Smart Nanotech Technology
Distinkt - Product Authentication with Smart Nanotech Technology
Analyzing Startups #2: Distinkt, a deep-tech ink nano-technology creator. News on Kings League, Insurama, Husk, VaultN, Wenalyze, Inversiva, Build Lovers and Check.
Welcome to another edition of How to land in Venture Capital: a weekly newsletter on the new ventures’ ecosystem. Every week, you will see a summary of every deal that has happened in the Iberian market and either an analysis of a startup or a piece of research in the VC ecosystem aimed to help young professional to land an internship in Venture Capital.
My name is Conrad and I work as a Startup Analyst. I help founders and investors achieve their goals by connecting both parties to financing opportunities. Additionally, I love to provide mentorship to guide startups on how to secure funding.
If you want to chat, drop me an email at conrad.carbonell@iese.net
News on Iberian VC Investment Deals
Kings League, a football league company intended to promote sports based in Barcelona and promoted by Gerard Piqué, raised €60 million in an Early Stage round led by Left Lane Capital and Fillip. The funds will be used to support the international expansion that has 13 million followers on digital platforms.
Insurama, an end-to-end online insurance company based in A Coruna that offers digital products and services, raised €8 million in a Series A deal led by All Iron Ventures. The funds will be used to increase the company's presence in Spain and other markets such as Mexico, Portugal, Chile and Perú.
Husk, a producer of carbon-based fertilizers and natural pesticides based in Barcelona, raised $5 million from Mekong Capital in a Late-Stage deal. The fund will be used to streamline its operations in Cambodia.
VaultN, a smart distribution platform with presence in Portugal that enables direct, secure, and on-demand transactions for game keys and activations, raised $1.6 million of a Seed funding series in a deal led by PixCapital and Ubit.
Wenalyze, a company developer of an open data analysis tool to improve risk management in the financial and insurance sectors raised €1 million in an Late-Stage VC deal led by Athos Capital. The funds will be used for international expansion.
Inversiva, a B2C real-estate company based in Castellón de la Plana raised €750,000 in an angel investing deal led by Angels Capitals and Juan Roig.
Build Lovers, a B2C real-estate company that constructs industrialized houses raised $675,000 of angel venture funding.
Check (FS), a company based in Santa Cruz de Tenerife that offers a QR code-based self-service payment system, raised €624,000 of Angel funding from Eduardo Serrano. With this funds, the company aim to expand their technology internationally.
Remember, here you can find the post on how to analyze startups:
Today’s company: Distinkt
Distinkt is a deep-tech company that develops advanced security inks using nanotechnology to combat counterfeiting. Their inks change color or fluorescence when exposed to Near-Infrared (NIR) light, providing dynamic and highly customizable security solutions for various industries.
In simple terms, Distinkt offer their clients a more advanced technology to combat fraud in physical goods such as money, documents, luxury goods, or pieces of art.
Team
Distinkt is led by a diverse team of scientists and entrepreneurs with significant experience in nanotechnology and business. The core team includes:
Luca Venza (CEO, MBA): an experienced IESE MBA tech executive, Luca has supported the creation, incubation and acceleration of deep science and technology startups for more than 8 years, he had led the company to participate in prestigious programs like SkyDeck at Berkeley.
Dr. Àlex Julià-López (CTO, PhD), Dr. Claudio Roscini (CSO, PhD): members of the ICN2 (Nanostructured Functional Materials Group) and the Department of Chemistry at the Universitat Autónoma de Barcelona bring deep expertise in nanotechnology and chemistry.
Travis Hampton (Advisor, MBA): an early-stage Investor & Operator is helping the team with the Strategy & Fundraising, leading their last financing round of €2.5 million with a €2.33 million compromised, expected for the 31th of July, 2024.
Market Opportunity
Security Printing market is one of the Top 10 Printing Industry Trends in 2024.
The pervasive issue of counterfeiting and forgery, which leads to significant financial losses, is driving this trend. Innovations like color-shifting inks and holographic watermarks are pivotal in this domain. These technologies enhance security by altering their appearance from different angles, making it challenging to replicate and thereby providing a robust layer of authentication.
Distinkt initially targets high-risk sectors like currency and luxury goods, which suffer significant losses due to counterfeiting.
Problem
The widespread issue of counterfeiting leads to financial losses, identity theft, fraud, organized crime, and other socio-economic impacts. Current security inks are static, easily counterfeited, and lack customizability.
Solution
In order to solve this counterfeiting problem, Distinkt employ nano and micro-particles to produce fluorescent inks whose color or fluorescence dynamically change under different light wavelengths.
These adaptable inks, invisible to the naked eye but discernible under specific illumination, serve as robust authentication markers. Custom signs, barcodes or QR codes can be printed with these inks on any material or object, from banknotes to official documents, bags and cosmetic products, with the purpose of certifying their authenticity.
Main Products:
1. Distinkt_LUM
Microscopic particles fluoresce under UV light after NIR exposure, with customizable transition times.
2. Distinkt_COLOR
Microscopic particles change visible color under NIR light, with customizable transition times.
3. Distinkt_SEAL
Particles undergo a permanent luminescent or color change upon NIR irradiation for lasting authentication.
Client Applications
Clients can use these products for embedding QR codes and barcodes, authenticating luxury goods, enhancing security for wine and beverages, and ensuring the authenticity of art collectibles. For more details, visit Distinkt Products.
Also, Distinkt's innovative security inks offer several key advantages:
Dynamic and Customizable: The inks change their properties under different light conditions, making them difficult to counterfeit.
High Security: Customizable and personalized effects under NIR light make these inks suitable for high-security applications.
Adaptability: The inks can be tailored for various outcomes and applied to multiple substrates, enhancing their utility across different sectors..
Pitch Presentation at South3e:
Customer and Business Model
Distinkt operates in the B2B sector, targeting industries like banking, luxury goods, and government documents. Their business model includes:
Direct Sales: Selling inks to manufacturers of secure documents and goods.
Partnerships: Collaborating with companies to integrate their security solutions.
Licensing: Licensing their technology to other security solution providers.
1. Go-To-Market Strategy
Distinkt employs a multi-faceted strategy to penetrate the market:
Targeted Outreach: Focus on industries with high counterfeiting risks.
Partnerships: Collaborate with government bodies and major manufacturers.
Demonstrations and Trials: Offer pilot programs to showcase the efficacy of their inks.
2. Feasibility and Scalability
Feasibility: The technology is operational, with proven efficacy in lab settings and initial market trials.
Scalability: The production process for the inks can be scaled to meet large demands, and the technology is adaptable to various applications, therefore, the product is scalable.
3. Defensibility
Barriers to Entry: deep-tech high technical complexity and proprietary (patents) technology involving nano- and micro-particles offer significant protection.
Competition
While Distinkt offers a unique combination of dynamic and customizable security inks, they face competition from established players in the security printing market:
De La Rue: A major provider of security printing solutions.
SICPA: Known for security inks and solutions.
Giesecke+Devrient: Offers comprehensive security solutions including inks and substrates.
Traction and/or Metrics
Distinkt has achieved significant milestones, validating the potential and market readiness of their technology. The achievements are:
ACCIÒ Startup Capital Grant: a €100,000 infusion: the company is one of 21 start-ups selected out of 81 applicants to receive the ACCIÒ Startup Capital grant.
Berkeley SkyDeck Accelerator (investment and mentoring): Distinkt has been given the unique occasion to participate in the Berkeley SkyDeck Europe accelerator, a six-month program that includes a €145,000 investment coupled with comprehensive mentoring.
NEOTEC Grant: €335,000 for R&D advancement: the startup has secured €335,000 for Research and Development (R&D) by earning the prestigious NEOTEC grant, awarded by CDTI-E.P.E., which is a public business entity under the Ministry of Science and Innovation that promotes technological development of Spanish companies.
With these new cash injections and participation in the prestigious SkyDeck accelerator program, the company is ready to revolutionize security standards with its innovative technology solutions.
Should we invest?
Yes, because:
Innovative Solution: Distinkt’s nanotechnology-based inks offer an innovative approach to combating counterfeiting.
Market Demand: The need for advanced security solutions is critical and growing.
Strong Team: The founders and team members bring complementary expertise in nanotechnology and business development.
Quality of Revenue and Scalability: As a B2B solution with potential for recurring contracts, Distinkt promises stable and scalable revenue.
No, because:
Competition: The market includes established players with significant resources.
Execution Risk: As with any innovative technology, ensuring successful market adoption and scaling poses challenges.
Regulatory Challenges: Compliance with evolving security and privacy regulations could impact operations.
Disclaimer: the information provided is for informational purposes only and does not constitute investment advice. I encourage readers to conduct their own research and due diligence before making any investment decisions.