Collaborative startup projects: Gulplug's story

Participating in collaborative projects can be a real catalyst for growth for a startup, provided it chooses the right initiative at the right time and is well prepared for the challenges and risks associated with this type of project. To help you better understand this following our first article on collaborative projects, this second part features a testimonial from the impressive Grenoble-based startup gulplug, which is very active in the field of collaborative projects and shares its insights on the subject here.

gulplug, a startup born out of a collaborative project

gulplug is a startup with a unique origin story. Founded in 2015, it emerged from the PLESMO collaborative project, funded by EIT InnoEnergy in partnership with Fenwick-Linde, INSA Lyon, and Schneider Electric. This project has enabled the development of non-invasive, non-intrusive, and user-friendly solutions for managing energy consumption on production lines, particularly during downtime.

A collaborative project isn’t always limited to technical development alone. It’s also necessary to consider the next step: bringing the product or service to market. In the case of the PLESMO project, the final task was to finalize the “packaging” of the developed offering so it could be quickly launched on the market. This role was assigned to Schneider Electric, the project leader. However, the lack of flexibility and speed inherent in large corporations forced the stakeholders to revise their action plan. In light of this, gulplug was created with the goal of ensuring the commercialization of the developments from the PLESMO collaborative project.

Buoyed by this initial success, the startup has continued its momentum with a second collaborative innovation project, this time on a national scale: the FUI PRIMA project. This project allows the startup to diversify and participate in the development of a second product: a new magnetic connector designed for electrical power transfer. Through this project, the young company has the opportunity to collaborate with major players such as Fenwick-Linde, Renault, and ARaymond.

We had the opportunity to speak with the project lead, Xavier Pain, CEO of gulplug and a former employee of Schneider Electric, about his vision for collaborative projects.

Why did you decide to take on a second collaborative project?

There are three objectives:

• First and foremost, one of the main concerns for a startup is securing funding, and collaborative projects offer attractive financing opportunities for young companies.
• Second, the development of the project’s technology—the magnetic plug—is not without risks. The grant received made it possible to secure the project’s future by developing a plug with lower production costs, thereby ensuring greater competitiveness.
• Finally, this collaborative project provided the perfect opportunityto become involved in an industry sector and forge close relationships with key players within it, such as major manufacturers, potential future clients, and the laboratories that hold the patents.

Do you have a similar project in mind or are you looking for funding? Contact Dynergie for a free assessment of your project

What impact has the funding secured for Gulplug had?

Beyond the appeal of collaborative initiatives, there is the reality of the situation. Financial management turned out to be slightly more complex than we had initially anticipated. We received only a small portion of the funding at the project’s launch (20%), which was insufficient to cover development costs during the first year of the project. We therefore reached out to the regional government to request additional funding and revise our financial plan.

The administrative procedures involved in reporting and releasing funds within the consortium are numerous and time-consuming; it is important to fully understand these issues from the outset of the project in order to manage resources and funding accordingly.

What advice would you give to a startup executive regarding collaborative projects?

"Collaborative projects are truly valuable tools for building long-term relationships with potential partners and clients, as well as for helping to shape an industry."

Furthermore, the financing options offered are very attractive, provided they are properly understood.

"Nevertheless, a startup must also be mindful of intellectual property rights before embarking on a collaborative project." Xavier Pain, CEO of Gulpug.

Before or at the start of the project, all partners sign a consortium agreement that sets out the rules for project governance and resource sharing. However, there are far too many differences between the legal structure of a startup and that of a large corporation, and it can sometimes be difficult to defend one’s interests against well-established organizations.

For a startup, hiring a consulting firm may initially seem like a significant expense, but it’s an investment that pays off quickly. Dynergie has been supporting us since the PLESMO project, then drafted the application for the FUI PRIMA project, which was selected, and now assists us with management as well as our CIR and CII applications. Dynergie handles the administrative aspects we don’t manage, secures our funding, and allows us to focus on our core business.

In addition, startups should also consider an alternative to collaborative projects: single-partner innovation initiatives such as ADEME’s SME Initiative or Bpifrance’s Innovation Competition. These programs are also financially attractive and offer greater simplicity in terms of reporting and disbursement of funding.

However, they do not allow you to:

• Leverage the expertise of other partners
• Help build a supply chain
• Expand your network through partners
• Find natural end users

Conclusion

There are several types of collaborative projects, and it’s tempting to try to apply for every call for proposals. It’s then very easy to get overwhelmed by a flood of information that can sometimes be unclear.

But for a startup, it’s important not to spread yourself too thin, and to find the right approach and the right partnership.

Having guidance is essential for staying focused on your key objectives, as it provides you with curated, relevant information that allows you to concentrate solely on initiatives that add value.

Outsourcing allows our engineers to focus their time on our core business.

Dynergie helped us obtain our JEI status (reduced employer contributions), maximize and optimize our CIR/CII tax credits, and secure the disbursement of the crowdfunding we raised (over €400,000).

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