Lablicate

Business idea: Open Source Software “OpenChrom®”.

Industry: Chemical analytics

Year founded: 2013

Philip Wenig’s company enables automated evaluation and processing of measurement data

Lablicate: Successful in chemical analysis

Philip Wenig’s company enables the automated evaluation and processing of measurement data. Lablicate primarily relies on a Java environment for the user-friendly implementation of its solutions and makes use of the latest open source technologies and agile development methods. In addition to customized approaches, the company’s own open source software “OpenChrom®”, which has been freely available since the beginning of 2010, is an “excellent” analysis tool (1st place “Eclipse Community Award Winner”) for chromatography and mass spectrometry – two widely used and versatile measurement methods in chemical analysis.

Philip, your business idea revolves around chemistry and technology, a special combination: How would you explain your company to an old acquaintance?

I would ask if he watches one of those CSI crime series, for example. There, samples are often taken and analyzed electronically in an apparatus. We develop the software for this. However, this can be used not only in forensics.

This often looks surprisingly simple and user-friendly on television…

The problem is that it is of course not as simple as is suggested on television. A lot also takes place in food analysis: In Hamburg, for example, this technology is used to randomly check food to see whether certain limits, such as those for pesticides, have been met. Or whether substances are present that have no business being there. This data is measured and recorded using mass spectrometers, among other things. We make software for evaluating this data.

Can you also support quality control in the textile industry?

Let’s stay with the goods inspection for an example of quality control in the textile industry: A Chinese manufacturer guarantees 100 percent cotton. You receive the goods. How are you going to determine whether it is pure cotton or not? You could burn a shirt, then you can smell whether it is cotton. But then the shirt is destroyed. This is where analytical pyrolysis comes in: You take a representative sample, a few hundred micrograms are sufficient, standardize it and measure it. Based on the data pattern that results from this chromatography and mass spectrometry, it is possible to say very precisely which substances are present, which enables excellent quality control. The great thing is that the T-shirt is not destroyed.

Our technology has also helped in the paper industry: Black dots on a certain paper were causing massive problems during printing. Using our pyrolysis GC/MS, we were able to prove to our client that it was adhesive labels that were causing the problem.

The basis of your business idea was your scientific work…

The actual background was actually my laziness! (laughs)

I started going more and more into analytics in 2004 as part of my studies. Chemistry has always been my thing: I was the only one at school at the time who wanted to do an advanced chemistry course. Combining the components of chemistry and computers appealed to me immensely. That’s why I chose analytical pyrolysis as my subject of study. I started with data evaluation. There are a handful of large manufacturers of such systems worldwide. The problem is that they all store their data proprietarily. That means you can’t access it easily. So you have to work with the manufacturer’s software. But an evaluation takes a week to a week and a half. That’s obviously far too slow for the industry! And since I just mentioned laziness: I don’t fancy doing all this stuff by hand. Then you do an evaluation once a week. Then you notice an error and have to start all over again. Because it’s manual. So I thought to myself: you have to automate that! As I have always enjoyed programming, I looked at the manufacturer’s data format. Then I got hold of the raw data and thought to myself: if I can read it, then I can build my scripts around it. That’s how the basis of our company came about. We made our software open source at the time.

Why Open Source?

The software that I had to use from the manufacturer is, as I said, proprietary. What’s more, it was developed once and never revised or added to again. Understandably, the manufacturers only do what is necessary. Especially in the sector, which is very specialized and where you have an oligopoly, where there is not the tough competition as in the consumer sector anyway, the customer falls by the wayside. The software was good for its time, but it couldn’t help in this form.

I made it open source because there are so many smart scientists who are constantly grappling with these issues and who end up asking themselves the same question: How can I access my data? That’s why I released my software, they can use it and build on it. At the time, I was still naive enough to think that this would be the Linux of chromatography. It wasn’t like that, but collaboration is simply much more fun than looking for a solution in your own little soup.

I found the subject of chromatography and data analysis far too interesting for me to want to do anything else, even after my doctoral thesis. That’s why I continued to pursue the topic after my diploma thesis and doctoral dissertation. Together with my project partner, I was able to prove during my dissertation that the identification of substances by means of peak pattern analysis using analytical pyrolysis coupled with gas chromatography and mass spectrometry (Py-GC/MS) works.

What support did you get for your project?

Nadine Weitendorf and Barbara Lederer from the University of Hamburg gave us excellent support with our EXIST application. From the Tutech side, Thomas Sperling and Nils Neumann gave us great guidance: You have your head full of studies and a business idea and then you’re faced with a huge jungle of startup support. We didn’t know where to start at all. Or what the implications were. Both teams gave us great advice.

How did the collaboration between Tutech and the University of Hamburg work back then – before beyourpilot or Startup Port and the joint partnership?

Previously, the parties regularly exchanged information about us informally. Now it’s official. Of course, they worked on different areas: Tutech dealt with the application area, while the University of Hamburg clarified how the best way to access funds works.

What funds did you receive?

EXIST provides you with an office space and material resources. At the time, we spent around 18,000 euros on laptops and printers. And a one-year grant, which is called EXIST 1. There is also EXIST 2, which runs for three years and has a larger budget. So we played office for a year. (laughs)

Then you also need the right employees: Where do you get the competence for your special topic?

That is a big challenge. I am a scientist and not a personnel manager. I can’t see inside people, which is why I’ve had to learn the hard way.

Finding people who can program and have an idea of chemistry is incredibly difficult. But that’s where open source has played into our hands. Because with open source, I turn the innovation dilemma around: That means I release our work, people play around with it, and I can still hire those who do well. So I don’t lose anything in the process. We have found employees this way, even though I had admittedly expected a bit more. But this is a very complex area.

How was your experience with employees?

For example, we once had an employee who conducted job interviews while working from home. This ultimately led to his dismissal and a negative assessment of him by us as an employer. But I have to make sure that the money comes in at the end of the month, and if someone isn’t helpful enough, then of course I have to take the consequences. I want commitment: if you say you’re going to take on a task, then you’ll get it done. If problems arise, we talk about them. But if you communicate this far too late, we have a problem. In the case I mentioned, I was able to present a solution to the customer with a lot of effort and we hired someone new. So my HR skills can be improved.

You didn’t “enter the game” as an HR manager, but as a scientist. And of course you don’t have the size for a personnel department…especially as your specialist area is certainly so specialized that you couldn’t just “outsource” this decision!

Definitely. And that is also my basic attitude as an entrepreneur: I am responsible! For example, I have a tax consultant who does an excellent job. I can ask him things at any time and he explains them to me. I have to understand the key points, because the decisions are up to me. The same applies to our lawyers etc… they all cost a lot of money and are really good, but I have to tell them what I want and the final decision is up to me.

Do you sleep better if you employ accountants and lawyers?

As an entrepreneur, you never sleep well anyway! It’s such a control thing…it’s all about making money. Otherwise it’s all for nothing. There are so many different worry phases that you go through. First we have an idea. Then we have a customer – so you can no longer say “let’s see if it works”. No more “trial and error”. However, if you communicate properly with customers, they may forgive your mistakes. But you have to do a good job and, above all, be reliable. It’s just not as playful as it was in the early university phase. I sometimes wish I had that back! (laughs) But you mustn’t lose that special spirit, it promotes your innovation. Even if the money later increasingly robs you of sleep.

What relieves fear and anxiety here?

For example, there is a nice book: “In Search of Stupidity: Over Twenty Years of High Tech Marketing Disasters”. It deals with all the mistakes made by large companies such as IBM and others. It often describes the unparalleled chaos that some survive and others do not. I would recommend it to every founder, because it takes away the fear that you have to do everything perfectly. Because that is simply not possible. A good friend once told me: “The most important thing is that you make fewer mistakes than your competitors.

A positive interpretation…

Exactly! Because you make mistakes anyway! Also: even if I talk about the fear of making mistakes and denounce the lack of sleep, let me mention on a positive note that you are doing it all for yourself! That’s a completely different motivation than if you’re doing it for a company or a boss. You are in control of your own destiny. With all its positive and negative risks. You are always on your toes and have to be careful…but it’s about you: What could motivate you more!

Sre you in a good position at the moment? How do you see your future?

We are currently well positioned. We have learned to bring open source and business together in this area of chemistry – something that has long been common practice in other areas. We have therefore found a good niche. We will now spend the next five years expanding our business. We have many contacts. We have good feedback. We have customers who are keeping us afloat. But I need to expand the business. At the moment we are 7 people. We can’t pay big salaries, but we are flexible. We offer interesting jobs. In the next three to five years, we will have 15 employees. But what I also see very clearly: I am a technologist! I’m not a business graduate. I can learn up to a certain level here, but I can’t move millions back and forth for any tax benefits. I’ll have to hire someone in the future. Or we will be bought out by a neutral manufacturer in five years’ time. But under the premise that they understand open source and that we can continue to serve different customers. That is the prerequisite.

I deliberately did not take on venture capital because we are developing a market that is not entirely clear. Initially, this gives you a certain freedom of action, but after three years they start to get on your nerves because of the return. After financing rounds B and C, you eventually lose your company. That’s why we work it out ourselves. It’s more time-consuming, more difficult and, of course, involves a lot less sleep. But this way we can develop a market that has it all. Maybe we’ll also fail. We don’t know. But that’s entrepreneurship.

How productive is your niche? Is there a lot for your company to discover?

The demand in this area is immense. But I’m not necessarily an idealist either: I want to earn my money with it! I don’t pay into a pension, I don’t have unemployment benefit: So I also have to see where I end up. If the company flops, then I have no security. So it has to be worthwhile. Otherwise I wouldn’t do it. Because you also have a responsibility for yourself and your family.

How does your responsibility change over time?

I will move further away from programming and become increasingly involved in contractual matters. To know exactly how I can combine open source with business. This is incredibly important to build the community and the business around it. Later on, when everything is going well and I’m out, I’d like to buy a food truck. Bread is my passion. Water, flour, salt, sourdough or yeast… that’s all you need. I’d sell it at festivals, have a schnapps and have a nice chat with people… Doing nothing wouldn’t be for me.

What is your tip for young entrepreneurs?

If you’re up for it, go for it! You can’t buy the experience you gain! Learn, absorb the influences. Also focus on the customer: What do they need? How do we make our service appealing to them? How do we get the money in? There are various models and it’s a process…that sometimes makes you wish you were an employee again! (laughs)

Link to the homepage of Lablicate