Marine Digital
About the Company
Marine Digital operates in the maritime technology sector, specifically in vessel performance optimization. Based in Lübeck, Germany, the company employs 12 individuals and is led by a team of three founders. Their primary product, a digital twin system, is designed to lower fuel consumption and carbon emissions, making decarbonization tools accessible to smaller marine companies. Marine Digital has established itself as a deep-tech company with a focus on innovation and environmental sustainability.
The company leverages its expertise in AI and hardware development to provide cost-effective solutions. By reducing the average cost of performance digital twins tenfold, Marine Digital enables smaller maritime businesses to access technology previously dominated by industry leaders. With a proven track record in pilot projects, the company is set to expand its product reach and operational capabilities.
Marine Digital has built a reputation for addressing the industry's pressing challenges, such as emissions tracking and fuel optimization. Through partnerships and investments, the company continues to advance its technology and contribute to the global effort to combat climate change.
Idea Behind Company
The idea for Marine Digital emerged from Ivan’s experience in banking, IT, and logistics. Recognizing the outdated practices in the maritime industry, Ivan saw an opportunity to modernize the sector through digital innovation. This vision led to the creation of a digital service focused on fuel optimization and emission reduction, addressing critical environmental and economic challenges.
Ivan's work with APX VC mentors in 2019 solidified the decision to pivot toward the fuel optimization market. Early interest from prospective clients validated the concept, with initial pilots demonstrating the market's readiness to adopt such technologies. The idea was timely, aligning with global trends toward decarbonization and sustainability.
By addressing inefficiencies in maritime operations, Marine Digital positioned itself to provide practical solutions for a traditionally conservative industry. This focus on innovation and relevance has been a driving force behind the company’s success and ongoing development.
Creating the Company
Building the company involved overcoming significant technical and logistical challenges. The development of Marine Digital's initial prototype took two months, while further adjustments required a year to meet the complexities of vessel operations. Issues like limited satellite connectivity, extreme environmental conditions, and diverse vessel configurations necessitated a robust and adaptable product design.
The team chose to develop hardware in-house to ensure accurate data acquisition and reliable emissions tracking. This decision required expertise in various domains, including vessel engineering and industrial UX design. Collaboration with industry professionals ensured the product met practical needs while addressing the unique challenges of maritime operations.
Marine Digital's product features a simple user interface backed by extensive technical expertise. The company invested in a multi-disciplinary approach, involving captains, engineers, and UX specialists, to create a solution that combines usability with advanced technological capabilities.
Launching the Business
Marine Digital officially launched in Germany in 2020, shifting focus from its initial attempts in Russia due to industry challenges. Ivan attended multiple European tech events to secure funding and partnerships, eventually establishing the company with support from WTSH.de and APX.VC. These efforts led to the development of a strong team and laboratory facilities.
Early pilot projects validated the technology and provided essential revenue. Despite high initial costs for equipment and R&D, the company managed to attract investors and secure a €600,000 funding round in 2021. These funds facilitated further development and expansion into the European market.
Marine Digital’s customer acquisition strategy involved direct engagement with maritime companies and leveraging expert networks. The company focused on building credibility and trust within the industry, which proved crucial for gaining pilot clients and achieving early success.
Earnings
Marine Digital generates revenue through its innovative digital twin system, with average gross revenue per customer starting at €240,000 over the product lifecycle. Early pilot projects brought in €60,000, and the company continues to expand its customer base and pipeline, with over 2,300 active contacts and high website traffic.
The company's customer acquisition cost remains low at approximately €200, contributing to a sustainable growth model. Marine Digital plans to achieve profitability by 2023, focusing on scaling operations globally and increasing revenues per client through an expanded product offering.
Looking ahead, Marine Digital aims to balance lower margins with higher volumes as it scales. The company is preparing for mass-market adoption by optimizing manufacturing and delivery processes. This approach positions Marine Digital as a leader in the maritime decarbonization technology space, with strong financial and environmental impacts.
