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Silicon Valley | Class of Fall 2015

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Movilizer CEO Alberto Zamora on His Path from Aspiring Journalist to Technology Startup Success

Founded in 2006 and based in Mannheim, Germany, Movilizer empowers enterprises to connect and orchestrate their field operations. Movilizer joined the German Accelerator Silicon Valley Class of Fall 2015 and already supports more than 200 multinational customers across the globe. In March 2016, Movilizer was acquired by American Fortune 100 industrial giant, Honeywell.
Originally from Spain, Movilizer’s CEO Alberto Zamora was one of three former SAP employees who joined together to co-found the company. Alberto first came to Germany as a university exchange student focused on journalism. After a stint working at an Audi factory in Ingolstadt, Germany, he pivoted his studies to technology and made his way into an information systems graduate program at University of Heidelberg and a full-time role at SAP. Alberto met his two German co-founders Jörg and Oliver at SAP’s facilities in India.

You have one of the most fascinating founder stories I’ve heard. Tell me about how you got started in the technology industry in Germany.

I’m originally from Spain. I was studying journalism at the University Pontificia in Salamanca and I wanted to study abroad and decided to go to Germany.  

Were you planning to be a journalist in Germany?

I didn’t know what I wanted to do yet. I thought about journalism, but to be a professional journalist in Germany, I needed to be much better at the language. I would have had to become super fluent. I knew that wasn’t going to happen anytime soon, and there were no journalism jobs in Spain. I quickly realized that I’d better find another career.

What did you do?

After returning home to Spain, I came back to Germany and found a job doing shift work on an Audi factory production line in Ingolstadt. I assembled right doors on A3s and A4s. One week I worked the 6am to 2pm shift. The next week I worked 2pm to 10pm. Every two hours we got a break. Everyone smoked and drank beer on the breaks. Factory workers could still drink beer then. This was in 1997 and 1998.

How did you get from the Audi factory into the software industry?

I knew I was going to have to start a new career from scratch. While I was working on the Audi conveyor line, I applied to German universities. My goal was to get admitted into an informatics graduate program. The problem was that I wasn’t really qualified.

How did you get in?

I applied to a bunch of German universities but due to my lacking German skills, everyone rejected me. The University of Heidelberg was one of those that rejected me, but I was persistent.
I called the university, and one of the informatics professors said he would meet me for five minutes. Five minutes! I drove three hours from Ingolstadt to see him. He told me I didn’t meet the admission criteria, but in our brief chat I convinced him to give me a shot. He said I could enter on a trial basis only.
I bought my first computer. I started learning Microsoft Office, email, the Internet. Eventually I learned how to code. In two and half years, I finished with my Master’s degree in informatics.

Then you landed at SAP?

Yes. One of my informatics professors was working at SAP in Heidelberg. He offered me a three-month internship, and during that time, SAP offered me a developer job. This was in 2000. SAP only had ten thousand employees. The company was growing super fast. I started working as a developer on their business warehouse product. I then worked in a variety of roles and products, CRM, analytics, sales and distribution, mobile, RFID. I did a lot of things at SAP as I climbed the ranks.
Eventually, I became responsible for a global new product launch. I had learned German, but, in the process, I lost my English. I knew I needed to re-learn English, so I took a job with SAP in London. I was responsible for a mobility product.

How did you get from SAP to your startup?

That’s an interesting story. I actually met my co-founders at SAP LABs in Bangalore,India. Oliver was a consultant. Joerg was a developer. I was making good money at SAP. I wasn’t married, no kids. I was making €120k, which back then was a lot. I had a company car, company cell phone and a beautiful apartment in London. I had good prospects at SAP too. It was a great situation, but I decided it was now or never if I wanted to start a company. I left SAP in 2006 with €30-40k in savings. The three of us started a consulting firm focused on logistics, field service and track and trace.

How did that go?

It went great. By 2010, we had 80 consultants. We had twenty of the top thirty pharma companies as clients in the area of track and trace and €7-8M in revenue. But we weren’t satisfied. We wanted to build a product company. We raised €3M seed financing from a family office, and we split the companies into the ongoing consulting business and a new product company, Movilizer. We put a holding company on the top of these two firms, but we burned through the €3M in two years.

What did you do then?

We needed more capital, but we were worried about diluting ourselves too much, so we decided to sell our consulting business. We negotiated a deal to sell the consulting business without the founders and focused the product company on building the first cloud and mobile platform specialized on field operations. We called it Movilizer. Movilizer was designed to help large companies more effectively manage their delivery drivers, field service and maintenance technicians, warehouse operators so they could be more productive. We thought this would be a good market because our target customers were getting squeezed between compliance requirements—for example, strict track & trace regulations—and digitalization—IoT’s impact on service and maintenance processes. We took the money we made from selling the consulting business and invested it all into developing Movilizer.

Was the Movilizer product a hit?

Not at the beginning. 2013 was a horrible year. We invested millions of our own money, and we did something like €400k in revenue. It was terrible. 2014 was better. And then we started to really grow. By 2015, our business had grown 20x in just two years.

That’s when you joined German Accelerator in Silicon Valley. Why did you apply for this program?

It was by total chance. I found out about German Accelerator while interviewing a job candidate for my company. I had a friend in San Francisco, Maex Ament, the co-founder of Taulia. I had visited him and had a great time. I decided this was the place I had to be. I had to move to San Francisco. When this job candidate told me about the German Accelerator program, I figured this was a good way to get to the Bay Area and expand Movilizer’s business into the U.S.

How was German Accelerator for you and Movilizer

It was unbelievable. The first week we had a bootcamp. It was like an MBA in one week. I had been thinking about all of these startup topics for years on my own, and now I had the opportunity to discuss them with a group of startup founders and local experts. It was the best week of my life.

Did the rest of the program match that first week?

The rest of the program was amazing as well. People are lazy. They don’t want to talk to customers. It’s a lot of work. Everyone is busy. It’s uncomfortable sometimes for customers to tell you your product sucks. The mentors made me do it. What I quickly realized is that we had built a house from the roof, not from the foundation. To fix it was going to be painful. We didn’t know the customer problem that we were solving. We didn’t know who we were selling to.  

What did you learn from talking to customers?

I talked to people in both business and IT roles. Business people were open to solutions. IT people tell you they don’t have problems. IT is reactive. Business is proactive. We had been selling to IT for years. If we wanted to grow further and faster, I realized that we needed to sell to business people. However, that transition was going to take a lot of time and more investment. It required a simpler solution than what we had built. The risks were high. I talked to the German Accelerator mentors, and they helped me figure out how to position the company. 

What did the VCs tell you?

We had good VC discussions. Several of them came to visit us in Mannheim, where we were based. They expected us to double and even triple revenues every year. I knew we weren’t ready to scale at that pace. We thought about corporate investment and exit options. I started to map out companies that might acquire us.  

What happened next?

I made contact with my primary targets. Some of them weren’t interested, and I had better luck with others. I used a low-level contact to get into Honeywell and eventually reached a VP, who helped me navigate all the way up to the CEO. By coincidence, the CEO had a trip scheduled to Germany one week after our meeting, so he decided to come to our office. We prepared day and night for that meeting. It was a great meeting. Honeywell actually decided to buy us during that meeting.
The timing was perfect. We were running out of cash. We had asked our existing investors for money to tie us over until we closed a big deal with Coke, but they low-balled us. Honeywell gave us the offer on Christmas day, December 25. The deal closed on February 28, 2016.

How have things gone as part of Honeywell?

The business is doing great. Our revenue will be up 2.5x this year compared to 2015. We’ve had our issues, as acquired startups always do within big companies, but overall it worked out wonderfully for both sides, Movilizer and Honeywell. I can’t wait to start my next company.

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