“I Believed in the Team Before the Product”: Ruslan Madinov on Investing in Underwater Robotics

Intro

Robotics is one of the key technological trends today: according to Boston Consulting Group Research, the global robotics market will reach $160-260 billion by 2030, with the most dynamic growth expected in the segments of professional services robots including underwater solutions for inspection and rescue operations as one of the most promising areas at the intersection of engineering, artificial intelligence and automation.

The relevance of underwater robotics is also driven by the fact that as technology advances, more and more advanced robots are helping humans and sometimes even replace them. This in turn increases safety and speed of operations. With the help of AI technologies both real-time processing and post-processing of a huge amount of data obtained during search and survey underwater operations, are now possible. With the help of hydroacoustic communication technologies it is possible to automatically survey water areas not only with minimal involvement of divers, but even with minimal involvement of ROV pilots.

To gain a deeper understanding of the topic, I met with Ivan Medvedkov, co-founder and CEO of the C-Robotics KZ project, and investor Ruslan Madinov in Astana, Kazakhstan.

Ivan Astana (Kazakhstan) based – is a technology entrepreneur with extensive experience in creating underwater hardware, co-founder of SmartDrive and C-Robotics KZ, diver.

Ruslan Astana (Kazakhstan) based – entrepreneur and investor with a focus on technology startups, founder of Priority Projects (consulting), MYD Production (advertising) and TION-KZ (medical technology company), and investor in C-Robotics KZ.

Q&A

Victor Markov: “Ivan, I often come across technology entrepreneurs, but I must be honest, I rarely talk to founders of hardware companies. Tell me, how did the idea of creating a company in the field of underwater robotics come about?”

Ivan Medvedkov: “One of our co-founders started recreational diving in 2013 and technical diving in 2017. He is now one of the most professional cave divers in the world. I started diving in 2017, and I was also fascinated by it. In turn, our company SmartDive was engaged in the development of custom electronics, software, casings and mechanics including for the medical market, and the partner companies were engaged in marketing and advertising. Having put this together, the idea of creating sophisticated technological products for the underwater market was born.

In 2013, SmartDive was establishe. We were engaged in the development of custom electronics, software, enclosures and mechanics including for the medical market. A company of investors were engaged in marketing and advertising. And the idea to create a company in the field of underwater equipment came in 2017, when I and my partners started to engage in technical diving. I experienced strong emotions when I was in “weightlessness” for the first time, and I really felt like an astronaut.”

“Having put this together, the idea of creating sophisticated technology products for the underwater market was born.”

Victor Markov: “Why did you specifically choose the underwater domaine?”

Ivan Medvedkov: “We chose the underwater field due to the fact that all 6 co-founders are not only serial entrepreneurs but also dreamers. And we would like to conquer space like many tech entrepreneurs. But in the space field, you know, it’s often hard to get personally involved in the expeditions. And the underwater world is also a kind of space. It is also completely underexplored with a lot of technological and personal challenges. We wanted to make “hardware” and test it ourselves, dive with it ourselves, etc., which is what we do now. Manage Your Dreams.”

Victor Markov: “What are the limitations of convetional submersion methods? How do your solutions simplify and speed up operations?”

Ivan Medvedkov: “Traditionally, underwater works have been performed by humans. Underneath there are such dangers for humans as: underflows, risk of hypothermia, risk of decompression sickness, force majeure situations in aggressive environment, etc. For some works deeper than a certain depth in some countries there are legal restrictions on the engagement of divers. To avoid the described risks our underwater vehicles are used. The worst thing that can happen to an ROV is its breakdown, but this cannot, of course, be compared to harming a diver’s health. Also, divers, like all of us, get tired during operations, and our vehicles can operate for any number of hours, which significantly speeds up operations, especially on large sites.

Our key customers are: Ministry of Emergency Situations, companies in the oil and gas industry, companies that carry out underwater technical works, scientific organizations, shipbuilding, aquaculture, etc.”

Victor Markov: “Oh, that’s interesting! Since we mentioned your customers, tell us more about the cases when your underwater robots were used?”

Ivan Medvedkov: “Underwater vehicles are used in a variety of fields. And here are some of them:

Wreck search

Almost all rescue teams in Kazakhstan use our submersibles for search and rescue operations. First of all, it is the search for sunken objects. With the help of a video camera on a rotating platform and realtime video as well as powerful lighting the water areas are surveyed. The vehicles are also equipped with sonar devices for low visibility operations.

Vessel examination

Our ROVs are used to inspect the underwater parts of various vessels. With the help of high quality imaging, visual inspection is carried out and defects are searched for. This is necessary to decide on cleaning, repairs, etc.

Surveys in aquaculture

There is a need for aquaculture companies to constantly inspect fish cages. This is because these structures can be damaged, in which case the fish can simply swim away. While growing, for example, salmon takes 2 – 2.5 years and the value of fish per cage can be up to $1mln. Cage netting can be damaged by sharks that come in for a “snack”. With our ROVs, inspections can be conducted any amount of time without the engagement of divers.

Technical works

The ROV is equipped with additional attachments that expand its functionality: manipulators with various attachments, sonars, hydroacoustic navigation system (“underwater GPS”), metal detectors, etc.”

Victor Markov: “Ivan, what are the main lessons you have learned as a tech entrepreneur? What advice do you have for other hardware startups? How do you attract investment in niche tech products?”

Ivan Medvedkov: “Probably, like many people, I will say never stop and believe in your dreams. It probably sounds banal, but when you live with it every day, feel these principles, you realize that they are very much not trivial when you overcome difficulties by keeping it in your head.

I would recommend to find your first customers somewhere in your city so you don’t waste time on logistics, meet with a customer in person, and constantly test together the prototypes and products. Also carefully select your team members, because its cohesion will be the key to results. That’s 100%. If possible, try to sell your products on favorable terms for customers, i.e. figuratively let customers become investors in new products. I reiterate that this is figurative, i.e. customers will get products, not a share of the company, but this approach has helped us to make some products without investment, for example, the today’s senior ROV 150AT model. And in terms of investment, there’s a faith in people, not in companies, and not in products. Well that’s from my experience. Show how you can work and with what results, and people will believe in you, and if they do, they will invest in you too.”

Ruslan Madinov: “Since I am not a large institutional investor, I am interested to be involved, as I want the invested funds to work as efficiently as possible. That is why I also go to meetings, take part in negotiations, and definitely attend testings. I admit that I am not much help in the technical part, but I have a good enough experience in marketing and sales, as I already have a business in this field. Thus, I provide both reputational support and strategic mentoring. In general, I try to be useful to Ivan and the team in realizing their dreams, which have now become mine as well.”

Victor Markov: “Ruslan, what was the key factor in the decision to invest in C-Robotics KZ, and how do you assess not only the market potential but also the social significance of this project?”

Ruslan Madinov:  “The decision to invest was made exactly following the principle that Ivan had outlined. First, I believed in the team, which had proven itself to be a successful combination of capable people. And then I believed in the product. But I won’t hide it, a fortunate coincidence of circumstances played its part. Once again I was convinced how important networking is. During the period when Ivan’s team was “immersing” me in the world of underwater technologies, various entities in Kazakhstan began to pay special attention to the development of this area. And just to answer your question about capital, I sincerely believe that the main benefit we bring is the preservation of human lives, namely divers. Ivan has fully described all the health damage that can be done, even to a trained diver. So in my opinion the potential of the market is hard to overestimate as it is just huge. How far have we advanced in exploring the world’s oceans? How many more resources does it hold? What technologies can be used to tap into it? These are the questions that countries increasingly have to answer, if they want to succeed in this.”

Outro

Projects like C-Robotics KZ prove that engineering and entrepreneurship can bring real benefits to society. Especially in those fields where human life and infrastructure security depend on precise and reliable technologies.

Ruslan Madinov emphasized that underwater robotics has a huge potential in such sectors as marine safety, inspection of structures and environmental monitoring. This is the essence of strategic investments, i.e. to see what will become the norm tomorrow, today.