Startup of the Day: Estonian TrustLynx, software solution for integration trust services
Launched by Edgars Stafeckis and Keit Kivisild in Tallinn, Trystlynx provides solutions to introduce new digital products and transform their legacy systems with integrated trust services. The startup offers services such as digital identities, e-signatures, e-sealing, validation, and other essential trust services for banks, telcos, utilities, health and software companies. The first version of the platform went in to production usage in 2018. Currently, TrustLynx have 45 paying customers, with nearly €400,000 committed ARR.
In the Startup of the Day column, Edgars Stafeckis, CEO and co-founder of TrustLynx shares more details about the startup’s idea, its product, and future plans.
The Startup of the Day column on AIN.Capital is dedicated to tech projects from all sectors that originated from the CEE countries. If you would like to introduce your project, please fill in the questionnaire.
Tell us about your startup. How does it work?
Companies use TrustLynx solutions to introduce new digital products and transform their legacy systems with integrated trust services. Our software resolves the complexity to support trust services – digital identity and e-signing methods, as well as e-sealing and validation — support directly in companies business applications, without the necessity to use 3rd party services. Thus they get total control over information security, data privacy, and user experience, meanwhile unlocking new possibilities and meeting compliance.
How did you come up with the startup’s idea? What was the reason/motivation behind it?
In our previous experiences, we have been hired to integrate different trust services in to business applications and we would practically solve the technical, legal, security, adoption, user experience and other aspects.
“We solved the complexity to implement and maintain for companies as well as user-experience for users. We believe trust services will be as standard capability in any modern business application and we make it happen already today. In result, anything digital will become more trustworthy and secure.”
How long did it take to reach the prototype or MVP? What did you encounter?
Initial versions of the platform (comparably small portion of the current state) took us months of analysis, developments, integrations, testing etc. to meet the requirements of the initial customers. Ever since we have been working to improve, add on the capabilities based on feedback from the market, and are still doing so.
“We see how increasingly more people have and obtain a digital identity method, most often they are also usable for signing; how companies seek to innovate in the digital arena and simplify their legacy solutions; how cybersecurity, compliance and data privacy have climbed up the priorities ranks in companies. And we help to solve all of those aspects.”
Meanwhile, our biggest challenge is the different level of adoption of trust services and interpretations across countries and regions.
When exactly did you launch your product? Or when the launch is planned?
The first version of the platform came out and went in to production usage in 2018.
Tell us about the startup’s business model. How do you monetize your product?
It is a volume subscription model with optionally also user seats fee per month. We see how the platform is used in a variety of use cases across industries and we also understand the value of digital process vs analogue across industries thus we also offer value based approach.
For example, same platform is used for digital signing of documents, e-sealing of files and data, confirming (signing) payments, and many more.
What are your target markets and consumers?
Our target customers are European organisations that seek to automate and introduce digital products, where trust services are required. Most of our customers currently are from financial, telecommunication and health sectors.
Meanwhile, other software vendors and integrators are taking increasingly greater space in our customers base because they want their products to bring most possible value to their customers in a secure, data privacy and user friendly manner.
If the startup has already launched the product, what are the results: metrics, income, or any clear indicators that can be evaluated.
As of today we have 45 paying direct customers (not counting the end-customers of our channels), with nearly €400,000 committed ARR. The LTV/CAC ratio is just below 5.
What about your team? How many people are working in the startup? If you’re looking for new employees, indicate whom exactly.
We’re currently 8 people and will continue to expand our growth team in different countries as well as development and customer support, in total 5 additional people in coming period.
Have you already raised any investments? Provide us with more details on each funding round: the amount, investors, the purpose of the investment.
We have just now received over €300,000 in a seed round led by the Startup Wise Guys accelerator fund and FundingBox.VC. Initially we are a corporate spin off from company Digital Mind, who remain as pre-seed investor.
What’s next? Tell us about your future plans.
We are now expanding in next countries (currently Poland, Italy, and Benelux) taking in to account the regional specifics and how companies prefer to buy such technology. We’ll follow on with other countries and execute first pilots in Asia and Americas.