Ivan Mishanin, an experienced technology entrepreneur, was a co-founder and CEO of Bright Box, a software vendor for globally connected cars, for more than eight years. During his tenure, the company achieved an impressive annual revenue of $10 million before being acquired by Zurich Insurance Group, which is ranked 79th in the Global 2000 Forbes rating.
Currently, Ivan is one of the co-founders of Brainify.AI, a cutting-edge company that is transforming the drug development process for depression and other psychiatric disorders. In this interview, Ivan shared his insights into the challenges of being a tech entrepreneur and discussed key strategies for achieving global growth.
When did you decide to start Bright Box and why?
Back in 2011, I pitched a project to Kia that involved creating a mobile app to facilitate direct communication between car owners and the brand. I sold that idea to Kia, and we built the platform for them. Recognizing the potential of this idea, I suggested to my employer at the time, Incadea, that we build a similar product for other clients. However, the company dismissed the idea, claiming that there was no market for such a mobile app. As a result, I decided to leave the company and to start my own. I established Bright Box as an IT platform specializing in solutions for the connected car market in 2012.
By the end of 2014, we had received a $1.5 million investment from the LETA Capital venture fund. Unfortunately, our business faced a significant challenge at this time due to a decline in the Eastern European markets.
To rebound from our setback and secure new clients, we considered every possible option, including tapping into our personal networks, showcasing our solutions at exhibitions, and attending conferences worldwide. During one of our trips to the Connected Cars conference in Amsterdam, we had the opportunity to meet with prospective partners from the Middle East. After nearly seven months of discussions, we were thrilled to land our first major contract in the region with Nissan. The three-year agreement encompassed 45,000 cars and represented a significant milestone for our company.
We were quickly expanding into various markets. Eventually, the company reached $10M in annual revenue before being acquired by Zurich Insurance Group for $75M. Over the course of five years, we expanded the company into 30 markets, and signed contracts with the largest car manufacturers, such as Ford, BMW, Toyota, and many others.
How exactly have they implemented your Bright Box products? Do these companies still use your solutions and how does it benefit consumers at large?
Absolutely, customers such as BMW and Toyota, along with our other, have largely leveraged our Connected Car cloud platform as the backbone of their Connected Car Program. We've seen that over 90% of our clients also make use of our comprehensive suite of solutions, which include our white-label mobile consumer application, a dedicated portal for their dealership network, and our specialized hardware for the vehicles.
Given the global diversity of our clients, each implementation is tailored to the specific region or country to comply with local regulations. I pride on our ability to provide a truly global yet local solution that fits seamlessly into clients' ecosystems. A significant portion of our previous clients continue to use Bright Box technology. The reason behind this is twofold: First, the exceptional quality of our products ensures reliable and efficient operations. Second, our solutions demonstrate a strong product-market fit, addressing the unique needs and pain points of the automotive industry.
How did you transform the company once it started developing in other markets?
As we began our expansion, we had to adapt to the unique challenges and requirements of each region. Here are some of the changes we made:
First off, we understood the need to develop customized business models to thrive in each region considering cultural differences. For example, upon entering the Middle East, we discovered their workweek ran from Sunday to Thursday, necessitating support availability on Sundays. While demanding additional effort and resources, understanding and catering to each culture's specific needs is a worthwhile investment.
We have also customized product-market fit by catering to regional preferences. In China, we integrated Baidu Maps and the local version of Microsoft Azure. These small changes strengthened our connections with stakeholders, customers, and partners.
Selecting the right metrics is essential. We tracked potential customers, proof of concepts (PoCs), and the strategic importance of each region. For example, with 45 potential European customers, we achieved a 75% market penetration. Tracking PoCs helped us identify which markets had the most traction and evaluate their strategic importance, maximizing resources and ROI.
What would you recommend to manage a team effectively across various markets?
Hiring and managing a team is always the most important part for any CEO's work, so it gets even more crucial when you are expanding rapidly. The first thing I'd recommend is setting clear expectations: you need to ensure that everyone on the team understands their role and the goals of the company. Keep communication lines open and set realistic expectations for each team member.
Second, you need to foster a culture of collaboration and support: Encourage your team members to work together and support one another. This will help create a positive work environment that promotes growth and success. If you want your employees to take responsibility, empower them to take ownership by giving the autonomy for making decisions. This will help them feel more invested in the company's success and encourage them to go the extra mile. Finally, you need to provide opportunities for growth and development: offer training, mentorship, and opportunities for career advancement to help your employees grow professionally and stay motivated.
You revolutionized the car industry by introducing one of a kind IoT solution. Now, you are undertaking another project called Brainify.AI, aimed at bringing groundbreaking solutions in the field of biotech. How did your expertise in launching and developing an innovative solution for the car industry help you in this very distinct niche, biotech?
Bright Box is transforming automotive businesses, forging a seamless ecosystem among consumers, dealerships, and manufacturers, with vehicles becoming integral to a connected lifestyle. Our services enhance customer experience with personalized, data-driven features, boosting vehicle attractiveness and satisfaction. Dealerships benefit from increased service retention and optimized costs through real-time vehicle data. Original Equipment Manufacturers (OEMs) gain a competitive edge with appealing, smart vehicles and gain valuable insights for future designs.
After selling Bright Box, I experienced depression, and it opened my eyes to the subjective nature of psychiatry. Unlike physical illnesses, where doctors can conduct scans and blood tests, there isn't a direct method to scan the brain. After starting to feel better, I realized that a more objective approach to mental health is crucial, and decided to apply my entrepreneurial skills to building another company and transforming the biotech market through it.
Brainify.AI has the potential to transform drug development and in-clinic diagnostics by accurately forecasting treatment responses. By becoming the premier biomarker platform for these purposes, we aim to have a significant impact on the lives of more than one billion individuals affected by psychiatric disorders all over the globe.
To make this happen, we are collaborating with scientists from Harvard Medical School, Cornell University, Massachusetts General Hospital, and Northwell Health. We also just became a finalist of the Harvard Presidents' Innovation Challenge 2023 organized by Harvard Innovation Labs, where we were chosen among more than 2700 participants.
I believe the transition from IoT to biotech was an organic one, driven by a very personal motivation. Having experienced the gaps in mental health treatment firsthand, I felt compelled to use my technological expertise to make a difference. Our mission at Brainify.AI is not just about introducing groundbreaking solutions in biotech, but also about making mental health treatment more effective, personalized, and evidence-based, and in turn, helping millions of people worldwide who are suffering from depression.
After selling Bright Box, you started working on a biotech startup, Brainify.ai. What trends in biotech are you anticipating in biotech, considering the prevalence of AI?
The biotech industry is experiencing a significant transformation, thanks to the integration of artificial intelligence and data-driven approaches. These technologies are opening up new opportunities for businesses and patients.
One of the most notable impacts of AI and data in biotech is the acceleration of drug discovery and development processes. By leveraging machine learning algorithms and vast datasets, researchers can rapidly analyze complex biological information, identify potential drug candidates, and validate their effectiveness. For example, the collaboration between Atomwise and Sanofy led to the identification of new compounds for a challenging protein target, significantly faster than traditional methods. This approach significantly reduces the time and resources required for traditional trial-and-error methods, ultimately expediting the path to market for new therapeutics.
The ability to analyze large-scale genomic data has paved the way for personalized medicine, enabling the development of targeted therapies based on individual patients' genetic profiles. AI and data-driven techniques are instrumental in identifying biomarkers and genetic variations, which can lead to more precise and effective treatments tailored to each patient's unique needs. For instance, Foundation Medicine uses AI to analyze genetic data from tumor samples, providing physicians with personalized treatment recommendations for cancer patients.
AI and data are revolutionizing the design and execution of clinical trials by streamlining patient recruitment and optimizing trial protocols. Machine learning algorithms can analyze large volumes of patient data to identify eligible participants, improving recruitment efficiency and reducing trial costs. For example, Deep 6 AI's platform helps research institutions and hospitals find suitable clinical trial participants by analyzing electronic health records in real-time. Moreover, AI can help in designing better clinical trial protocols, increasing the chances of success and reducing the time required to bring new treatments to market.
What would you recommend to aspiring entrepreneurs to achieve success like yours?
I've encountered numerous challenges, but never abandoned my vision. Even after the ruble collapsed in our early days back in Russia, driven by economic instability, freezing contracts and setting us back significantly, we persevered and continued networking until landing our first major contract in the Middle East. So the most important thing is to keep going and to never abandon your vision.
Company's growth and expansion demands hard work, time, effort, and resources, but with the right mindset and strategies from the outset, gaining traction and achieving success is possible. By being adaptable, embracing technology, offering free PoCs, focusing on networking, and building driven teams, you can navigate the complexities of expanding your business into new markets and ultimately create a thriving global enterprise.
