‘I could have invested anywhere in the world and made more money, but I chose Croatian startups’

When asked what Croatian entrepreneurs and managers invest in, there is no straightforward answer, but it could generally be said that entrepreneurs mainly invest in the development of their own business, while managers who are not owners of the company they work for and independent investors often invest in capital markets or directly in financing various promising companies.

A company that has caught the eye of many investors is certainly Gideon Brothers due to its innovative product, an autonomous robotic platform for transporting goods on euro pallets within warehouses, which is increasingly used by Amazon, Alibaba, and many other large logistics companies and retailers.

– Domestic investors find Gideon Brothers interesting even though it does not have large revenues, and investors who have invested in this company are buying the future and growth potential, which is always the case with Venture Capital investments – commented economic expert Vuk Vuković.

Long-time fund manager and capital market expert Ivan Ivin has also invested in Gideon Brothers.

– Although there are very good investment opportunities on a global level, I prefer to invest in Croatia even though these investments may not yield results as those abroad could. It seems more logical and natural to invest in the environment in which I live, which is why I invested in a Croatian company rather than in the American, Asian, or Latin American markets – said Ivin. According to this investor, most often investors invest in areas they know, although his decision to invest in Gideon – which deals with robotics about which he says he knows little – was based on recognizing a business opportunity that he believes is worth investing in.

– Gideon Brothers is still looking for investors to finance their growth and development. Many investors have recognized the product they have developed as promising, as it is interesting to large companies that can significantly save on warehousing and labor costs, and it is applicable in all companies that use distribution and warehousing in their operations – explained Ivin his investment reasons. When asked when he expects a return on investment, he replied within five to ten years, as such investments usually return in seven years, which is the return for all venture capital investments.

– When I invest, it is important to me that the team building the company is quality, that it functions and thinks healthily, and that it has a product that can be competitive – emphasizes Ivin and adds that he has invested in several other startups, and considers the startup Swift, which has developed the technological infrastructure for partial stock trading offered to financial institutions, as very promising. They drew inspiration from the American financial services company Robinhood, which raised as much as $1.7 million for the development of a free stock trading application and now offers such a service to European banks to provide a similar experience to their clients as Robinhood does in America.

Country Managing Partner and Head of Audit at EY Croatia Berislav Horvat has also invested in Gideon Brothers, and he describes himself as a promoter and advocate of entrepreneurship in Croatia.

– I realized that the product of Gideon Brothers solves a global problem. It seemed to me an opportunity because many companies around the world have difficulty finding warehouse workers, and if this part of the job can be robotized, the product could achieve global success. Croatia is a small market, and companies that are export-oriented have a better chance of succeeding. The money that investors have invested in Gideon Brothers is being spent on the development of technology and the product itself, and if the product succeeds in the global market, which has a really good chance, significant returns are also possible – emphasizes Horvat.

When asked to comment on what Croatian entrepreneurs and managers invest in, Horvat said it depends from person to person. According to him, there are no rules; some invest in real estate while others believe that investing in real estate is total madness and that the only good investment is in stock exchanges, shares, and funds.

More about what and how Croatian managers and entrepreneurs invest can be read in the new issue of the printed and digital edition of Lider.

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