The Berlin-based company, Grownup Mitte, founded in 2016 by Moritz Waldstein and Faebian Bastiman, has been trying to establish a modern water system for years. Over the past years, approximately 23 million euros have been invested in the company, including funding from Bitburger Ventures, Kärcher, Danone, and FoodLabs. However, the company struggled to present a fully developed product for a long time. It was not until 2021 that Mitte finally launched its water purifier, with a delay of about three years.
„Ich denke, wir waren erfolgreich darin, die erforderlichen finanziellen Mittel zu beschaffen, die für die kostspielige und langwierige Entwicklung eines B2C-Hardware-Produkts im Lebensmittelbereich erforderlich sind. Von 2016 bis 2021 haben wir keine Einnahmen erzielt und konnten die Kosten nur durch externe Mittel decken“, reflektiert Gründer Waldstein. Anfangs plante das Team, sein Wassersystem einfach zu verkaufen, aber mittlerweile setzen die Hauptstädter, die etwa 30 Mitarbeiter beschäftigen, auf ein Abonnement-Modell.
„The customer can try out the Mitte subscription starting from 29.99 euros per month and decide if it is the right offer. This was more difficult for many customers with the traditional model, where we sold the device for 589 euros,“ says Waldstein. Now, the concept just needs to quickly find users. In 2021, the company incurred a loss of 9.3 million euros (previous year: 4.9 million). The total cost of building Mitte has already reached approximately 18.6 million euros.“
Nun sieben Jahre nach der Gründung tritt Mitte-Macher Waldstein als Geschäftsführer des Grownups ab und übergibt an über die zukünftigen Pläne des Unternehmens. Stefan Neuber ist seit einem Jahr sowohl als CTO als auch als COO in der Geschäftsführung der Jungfirma tätig. In einem Interview mit deutsche-startups.de reflektiert der Jungunternehmer Waldstein über die vergangenen Jahre und erläutert zudem die kommenden Vorhaben des Unternehmens.über Plastikmüll, Mineralisierung und Profitabilität.
Wie würdest du deiner Großmutter das Wort „Mitte“ erklären?
Our goal is to replace single-use water bottles with a home solution. To achieve this, we have developed a process inspired by nature. In the case of conventional bottled mineral water, water flows through layers of rock for a long time, gets purified, and absorbs minerals before it reaches the Earth’s surface and is bottled in glass or plastic bottles. However, the production and distribution of bottles are unfortunately very CO2 and resource-intensive. As a society, we produce 500 billion bottles per year. This results in a monthly mountain of plastic waste that is taller than the Eiffel Tower. Our aim is to develop an alternative that uses 60 times less plastic and 10 times less CO2. Instead of bottling, transporting, and selling water, we have developed a 3-in-1 water purifier for home use. Here, tap water flows through a cartridge that first cleans the water – using activated charcoal and a high-quality hollow fiber membrane – and then enriches it with minerals such as calcium or magnesium and bicarbonates. This allows us to offer not only purified water but also mineralized water. Afterwards, the water can be carbonated according to preference. We have different cartridges with different minerals. Just like there are different types of mineral water in supermarkets, we offer various waters that also differ in taste.
Habt ihr dies von Anfang an geplant?
We have considered for a long time whether to create a B2C or a B2B offering and then initially decided on the B2C market. The idea of replacing water in disposable bottles has always been our goal. We were aware that we needed to purify water and add minerals in order to produce different types of water. There were some technical changes during the development process. Initially, we thought that distillation was the best way to purify the water and prepare it for mineralization. However, we later realized that purification with activated carbon and hollow fiber membranes is better suited for the B2C market in terms of cost and sustainability.
Wie ist die Idee für Mitte überhaupt entstanden?
Ich habe einen Forscher kennengelernt, der sich damit auseinandergesetzt hat, wie man Wasser herstellen kann, ohne dafür Flaschen zu benötigen. Ich fand es extrem naheliegend, dass wir in Zukunft nicht Wasser aus Flaschen trinken werden. Wer kann sich einen Science-Fiction-Film vorstellen, in dem Wasser aus Flaschen getrunken wird? Wenn dann vielleicht in einem Doomsday-Umwelt-Drama.Zudem hat es mich immer fasziniert, Innovation nicht nur zum Geld verdienen einzusetzen, sondern auch für positiven nachhaltigen Impact. Das war 2010 bei meiner ersten Gründung mit Coffee Circle ähnlich.
Wie kam es dazu, dass ihr euer Geschäftsmodell kürzlich in ein Abonnementmodell umgewandelt habt?
Our subscription includes different levels – S, M, L, Business – where customers receive a Mitte Home device that is returned after the subscription expires, if applicable. We introduced the subscription based on three considerations. More sustainability: Our circular economy model allows us to repair and reintroduce devices returned by customers who end their subscription, saving resources and leading the way in a circularity movement that will positively change the world in the coming years. Lower barriers for the customer: With Mitte Home, we have introduced a completely new concept of water purification for home use, essentially inventing a new category. Customers can try Mitte for as low as €29.99 per month with the subscription and decide if it is the right offer for them. This was more challenging for many customers with the traditional model where we sold the device for €589. Better user experience: With the subscription, we can deliver cartridges smoothly and regularly, practically like a „hydration guarantee“. The customer doesn’t have to worry about reordering.
What is your perspective on the current crisis atmosphere in the German startup scene?
„Ice age“ is probably a pretty good description, and unfortunately not just for the German startup scene, but internationally as well. However, I believe that, just like during an ice age, a different, more optimistic era will eventually come, where more risks will be taken from a capital perspective. If one wants to find something positive in the current situation – and that’s not easy for me – then this time is also a catharsis. The crisis is an impetus to be even more creative and to fight harder. Valuations and volumes are once again more grounded in reality.
How has Mitte evolved since its establishment?
Wir sind Ende 2021 in Deutschland auf den Markt gekommen und nähern uns vierstelligen Nutzerzahlen. Wir haben ein Kernteam von rund 30 Mitarbeitern und einige Spezialisten und Freelancern, mit denen wir zusammenarbeiten.
Warum entscheidest du dich jetzt für einen Rücktritt und übergibst die Verantwortung an Stefan Neuber?
Das hat verschiedene Gründe. Zum einen wünsche ich mir eine persönliche Auszeit und freue mich darauf, im Beirat eine beratende Rolle zu übernehmen. Zum anderen schlägt Mitte künftig strategisch eine neue Richtung ein, für die Stefan, der sich im letzten Jahr bereits als CTO und COO unter Beweis stellen konnte, bestens gewappnet ist. Wir leben bei Mitte das Motto “better than before” und reflektieren somit immer, wie wir uns stetig optimieren können. Mit unserem neuen Fokus auf dem Abomodell, der Ausreifung unserer Hardware und der möglichen Integration unseres Systems in die Geräte anderer Hardware-Hersteller- zum Beispiel Kühlschränke – , ist Stefan als Experte für operative und technologische Prozesse mit mehr als 10-jähriger Erfahrung in der Hausgeräteindustrie der richtige Mann für den Job.
Please take a moment to look back: What went really wrong in the past years?
At the beginning of the 2020 Corona pandemic, we were on the verge of signing a contract with a major American investor. We had been negotiating with a multitude of lawyers for several months and had completed a massive due diligence process. On Tuesday, we were scheduled to go to the notary, but on Sunday evening, I received a call from the responsible partner informing me that the investment had been cancelled. This happened before anyone knew how Corona would impact the economy. It was a huge shock, and we had to quickly restructure and find another way. Throughout 2022, our first full year in the market, we faced significant delivery difficulties with many components, especially electronics. This was due to the aftermath of Corona and the bumpy start of supply chains. You may also recall the Ever Given, the ship that got stuck in the Suez Canal – we were also affected by that disruption. We had enormous problems meeting demand and even had to temporarily halt sales and switch to a batch-sale model for certain periods.
Wo haben Sie bisher alles korrekt gemacht?
The transition to the subscription system has made a lot of sense for us. As mentioned earlier, it allows us to be more sustainable, provide greater customer benefits, and lower entry barriers. This positions us for the future. I believe we have been successful in raising the necessary funds for the costly and lengthy development of a B2C hardware product in the food industry. From 2016 to 2021, we had no revenue and could only cover expenses through external funding. I think we have created a work environment that has positively inspired a number of employees to start their own sustainable and successful businesses. For example, Moritz König from Facturee, Benjamin Pardowitz with RooWalk, Sana Al-Badri with SageWealth, or Kirils Jegorovs with Circolution.
Welchen allgemeinen Ratschlag würdest du anderen Gründern geben?
Test, test, test: Discuss and test your idea as much as you can. Important note: Do not do this with friends, but with potential customers. Have a strong conviction and resilience: Give your idea, your hypothesis a fair chance. The idea will not be perfect and sometimes you may not see the path to the goal, but you should not lose sight of it. However, do not burn yourself out along the way. Sometimes you also have to listen to yourself, give up, and find a new approach. Do not start for the money, there are better ways for that: Start for the freedom to create and be creative. Start something precisely because it will be difficult and you are challenging and pushing your limits.
Wo befindet sich die Mitte nach einem Jahr?
Nicht mehr zu weit von der Profitabilität und langsam auf die Internationalisierung vorbereitend.
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Foto (oben): Shutterstock
Source: deutsche-startups.de