Blockchain, the technology behind the bitcoin, can be used for more than virtual money: it can be used for adding trust and transparency to all kinds of transactions. Startup Lab15 helps corporates discover how they can innovate using the blockchain. Their launching client was accountancy firm PwC. We interviewed co-founder Joris van der Steuijt to understand how they are doing this and what they accomplished.
Lab15 was founded unofficially in July 2016 by Joris van der Steuijt (pictured and interviewed here), Carlos Torres and Atte Anema. Officially, it was founded in October 2016. It is a spin-out of the existing startup Startup Insight (selected earlier this year for the ING studio). Startup Insight is focused on making startup-investor communication more transparent and has been looking into blockchain as a potential technology solution. They realized that there could be many more problems solvable by blockchain and that the problem owners could use some help understanding this new technology, and thus created Lab15. Lab15 can be seen as a hybrid between a startup and an agency. Like an agency, the company works directly with other companies, like a startup they are focused on building scalable solutions and applying lean methodologies.
Why work with/for corporates?
Blockchain is a solution looking for a problem. With Lab15 we focus on understanding the root cause of problems worth solving. Only then we assess whether blockchain is indeed the best solution everyone is hoping for. By focusing on the actual problem, we first drive these teams to high frustration levels because they are trained to think and talk about opportunities and solution… In the end however, they are all pleasantly surprised and thankful for this approach. They ultimately understand the value of this process. Our startup experience is crucial here – both Carlos (co-founder) and I are mentors at Startupbootcamp and Innoleaps – where we are used to challenge and think critically about assumptions.
What does your innovation process look like?
We have a two-week program. In the first week, we work with domain experts from our client (and in turn their clients too) to define the root cause of a problem worth solving. We also work on designing the new utopian solution. Our approach is similar to the Google sprint, however we focus more on the startup way of working experience and add an additional element: storytelling. We’ve noticed that these corporates teams as change agents need a little help in clearly communicating their “new” message in the form of a pitch to their peers and superiors. The second week is meant for actually building the concept.
What can you build in one week only?
One of the four concepts we built with PwC (see the blockchain experience lab magazine) was to prevent VAT fraud and reduce compliance cost. This is a €160 billion per year problem. We built a working concept where we label transactions and made money ‘smart’. With this system VAT is no longer withheld but automatically transferred to the Tax Authorities. It is refunded to the paying company if they are eligible for a tax refund. Lab15 together with PwC is taking this initiative to the next level by including the Tax Authorities, the Chamber of Commerce and some corporate clients as pilot testers. Furthermore, the initiative has created a lot of hype and gained traction EU wide since PwC launched a European Blockchain Roadshow to demonstrate these proofs-of-concept.
Blockchain and bitcoin perspective
Is there an exclusive focus on blockchain?
Blockchain is not the only technology we are looking into. We are also interested in AI and Internet of Things, as other examples of disruptive technologies. Soon we will start to combine all these technologies in single applications. Consider for instance smart delivery drones that use the blockchain to check whether you have paid before releasing packages.
Is Blockchain as disruptive as people think it is?
I’ve heard people say that blockchain is bigger than the Internet – that it is the Internet 2.0 – the internet of value. According to Gardner it’s close to its hype peak. Whether this translates to blockchain being truly disruptive or just a hype no-one can tell. Our mission is to help people understand what is actually feasible and realistic now and in the future. Blockchain is most frequently associated to the financial industry, due to its most known use case, the bitcoin. We are exploring if blockchain can disrupt other industries beyond fintech.
Startup life
You left your previous job in order to join a startup. Was that a difficult decision?
No, there is a lot of short term uncertainty when you leave a fixed job, but I like to focus on the long term perspective. Being an independent professional provides other opportunities. When I left my job I had a first freelance assignment for three months. That made the decision slightly easier.
Image credit: Jason Benjamin, public domain via Flickr