In the Hot Seat – Michael Mark – Valmi
We asked Danish company Valmi to take to the Funderbeam Hot Seat, to answer common questions requested by investors and to find out a bit more about the future of the business. Thanks to CEO Michael Mark for concise and thoughtful answers.
Tell us in three sentences what is your Company and what is the product?
- Valmi make it possible for skilled craftsmen, without an installation master degree, to make authorized work for the customers. We deliver a fair distribution solution for the craftsmans work – the craftsman keeps 81% of the total revenue.
Tell us how 2021 was for Valmi, what were your key challenges?
- We had a total turnover of €4M, bouncing back from a challenging corona year.
- Hiring and consolidating the right team, both a CFO and a CMO started.
- Building the right features on the software platform – V’appen
- Raising money for scaling the company
What are your main, key goals for Valmi in 2022?
- Gaining 150 new craftsmen
- Positive EBIT
- Make very visible marketing
What is the outlook for the electrician and plumbing Sector in the coming year?
The expected growth of the entire industry is projected to grow by a few percentages and keep the very high demand for this type of labor. 2022 is estimated to a turnover at +8,1bn€.
Are there any key trends in the electrician and plumbing sector you think are important to Valmi?
- The green transition, where everything is being powered/delivered via electric – windmills, solar power, electric cars, heat pumps – all these will require massive investments into our sector. A part of the green transition is forecasted to cost between 14 – 26 bn€ just to get the electrical infrastructure able to meet the demand In 2050.
- The lack of craftsmen – in DK in 2027, there will be missing approx. 7.500 electricians, same picture by the plumbers – increasing in the prices for both electricians and plumbers
- Heavy investments in electrical-infrastructure in EU is needed to reach the goals of switching from fossil fuel, between 375 – 425 bn € before 2030
Who are the main shareholders and management of Valmi and any plans for future hires or positions?
- Michael Mark – CEO and Founder – owns together with his 2 kids, 90% of Valmi
- Søren Jensen – CFO
- Jonas Woodrow – CMO
- Jan Dam-Nielsen – country manager DK, Electric
- Morten “Ricki” Rasmussen – CTO
- New hires will be
- Senior installers within plumbing to assist our plumbers in their work. Next with the sewer installation master degree, as Valmi then can handle sewer work to.
- Salesforce establishment
- Guides to implement new craftsmen and get them started in the best possible way
Can you profile or paint a picture of a typical customer of Valmi?
- 1/3 of Valmis customers are B2C. A B2C customer is an average danish household that needs installations done, everything from entire new houses, to kitchen installations.
- 2/3 of Valmis customers are B2B which are typically larger projects in an airport or company facility like a server park.
- And approx. 5% of B2B is the public sector which could be a hospital or municipality.
What is your key message to customers and how do you get that information to them?
- An important task is to educate the end users, that they alone are responsible for the work done in their household. Without the right license/Valmi you have no insurance or warranty if something goes wrong.
- Undeclared work is a bad solution as you pay up to 93% of the white price, but you have no guarantees, warranties or insurance
- Another challenge is to communicate to the craftsmen that there now exist a new way of doing things, for a very conservative industry that has seen little innovation in its business model for many years.
- We aim to communicate to both segments through SoMe, radio spots, conferences, press releases and focus on the educational institutions.
What would you say are the biggest challenges ahead for Valmi?
- To find the balance between attracting new workers and customers in proportional degrees, and ensuring both parties are happy with Valmis services from day one.
- To complete the Funderbeam fundraising in a satisfying way, which would be to reach €1.2M
- To develop a strong retention program, optimize our current workforce and reach break even before the end of the year.
And what area/geography/sector presents the biggest opportunity for Valmi?
- Trades that are under authorization – Electricity – Plumbing – Sewer is the focus for us, and launching is to the rest of The Nordics, then Northern/Western EU and USA. The locations are particularly attractive because of the high hourly wages and comparable authorization requirements.
If you could give Investors just 3 words to describe the future of Valmi, what would they be?
- Equal and ethical business
- Innovative and disruptive
How can Funderbeam investors help you?
Believe in our mission to change the industry with a very scalable model that rewards the working hands better for their work, improves the quality for the customer and invest in us with both capital and network. Help us to attract the right craftsmen and the right jobs.
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