For this second episode, we settled at the Leonard by Vinci incubator, which introduced us to one of its companies: Ostrea. Let’s start by introducing Ostrea!
OSTREA
Can you introduce us to Ostrea?
Ostrea is an industrial startup based in Rennes, Brittany. It is a company created three years ago, with two years of research and development and a year and a half of execution. Ostrea’s goal is to design high value-added recycling solutions for shell waste, such as oysters or mussels. We specialize in transforming these biominerals into ornamental materials, such as flooring, furniture, kitchen countertops, and other products. Ostrea will soon obtain the JEI label and has patented its material.
Tell us about your innovative solution
Our solution is innovative due to the formulation of the material and the manufacturing process. From shells, we create a material with mechanical and environmental performance much higher than conventional materials. These performances are better thanks to the very low carbon weight in the production of the material, but also because the recyclability is very high. The fact that we use shell material, which is renewable every year and not fossil, is a real advantage.
How has the SEED program of Leonard helped you in the development of your startup?
The SEED program has helped us a lot in several aspects. First, the business aspect. Leonard invests in Ostrea by financing us, which facilitates our development. The program also allows us to meet French and international investors, access funding, and build a brand image. Next, there is the execution aspect, through training on the functioning of our market and the application of our development plan. Moreover, the SEED program offers really personalized support and many resources that we can leverage to address our issues. The next step is commercial acceleration with sales to VINCI.
What challenges has Ostrea faced in its development? Can you give us an example?
The main challenge we face is the challenge of setting up a factory in France. This is something very demanding. We need to turn an idea into a material, design a prototype, and create stable production. We must find an execution to produce the material and ensure the company’s viability in the long term. Setting up a factory requires energy, experience, and support. We have a proof of concept factory that produces material on a small scale, and Leonard fully supports us in this development.
What type of clients do you target?
We target different clients by sectors. Firstly, the kitchen countertop sector, where we reach kitchen designers, stonemasons, and craftsmen. For example, we work with Schmidt. Then there is the interior design sector, focusing on coverings, where we collaborate with architectural firms, real estate developers, and material distributors. Finally, there is the furniture sector where we work with furniture publishers, such as Moore. We primarily work with private actors. Public clients are becoming rarer, even though we have received some orders, as they are more difficult to access.
What is the “Success Story” contract you are most proud of? (Which client, what location, what date?)
There are several projects that we are very proud of.
One of them is a contract with the third largest stonemason in France, Pythagore. Pythagore trusted us very early on when we were a young company. We experimented together, realized projects, and faced some mishaps. This relationship with Pythagore is precious, full of energy and trust. It is also a fruitful relationship: we were able to test our product, solve problems, and have a privileged distribution circuit; and Pythagore has become a trusted partner, which gives them strong commercial traction.
Another contract we are proud of is the project for the renovation of the Make Office headquarters. This is a project that has lasted over time, has worked very well, and has reinforced our pride in offering this material. Make Office is also one of the first to have trusted us, and this project has helped Ostrea grow.
What are your next development objectives?
The next major development step is to raise funds starting in early 2024 to multiply our production capacity by ten or fifteen. The goal is to commercially test the material, make it more present in the market, and democratize it. By 2025-2026, we must industrialize our product to have a large production capacity. The objective is to multiply our production by a hundred in a few years.
Any final words?
I wanted to add that, even though we have few public clients, the Ostrea project is very supported by public actors. We have received “moral” and financial support from the Brittany region, Bpifrance, and Côtes d’Armor. Besides these aids, these public actors have demonstrated a real understanding of the project, helping with the structure and project submissions. It is also proof that local authorities, and public actors more generally, are increasingly turning to innovative startups and entrepreneurs. Setting up an industrial startup is a very complex task, but there is a strong willingness from public authorities to promote this type of project, which makes a difference.
LEONARD
Why did you choose to support Ostrea?
Reducing the carbon footprint of construction activities is at the heart of VINCI’s environmental strategy. It is in this context that Leonard, the prospective and innovation platform of the Group, has committed alongside Ostrea, whose bio-sourced, local, and renewable material solution offers a virtuous alternative to traditional interior design materials. Moreover, the strength and commitment of the team were decisive in this choice.
How have you supported Ostrea? What role have you played in its development?
We offer startups joining our SEED program very comprehensive support that combines entrepreneurship training through a certificate issued by the Stanford Center for Professional Development, mentoring with VINCI group experts, access to a catalog of external experts, funding in the form of BSA Air, thematic workshops, regular exchanges with the Leonard teams, and a Demo Day that allows startups to present their project to a wide ecosystem of investors and decision-makers from the VINCI group. Thus, startups have a “common trunk” and tailored support thanks to VINCI group experts selected based on the sectors and challenges of each startup, and the catalog of external experts that adapts to the startups’ needs.
What challenges have there been in supporting Ostrea? What challenges are associated with Ostrea’s sector? Opportunities? How do you identify them?
The construction sector accounts for 20% of greenhouse gas emissions in France. Given the urgency regarding climate change, the development of low-carbon alternative materials is one of the key elements of the decarbonization of our industry. However, constructive elements are defined quite early in a construction project, so knowledge of real estate project assembly is essential for this type of product.
Moreover, Ostrea, like all industrial startups, faces a real challenge in scaling up its production capacity and a necessity to industrialize it. Access to experts on these topics and the feedback from entrepreneurs who have faced similar challenges are essential.
How do you work with startups to help them define their business model and validate their value proposition?
We have a theoretical approach with a part of training and practical workshops as well as a sectoral approach with internal experts. VINCI’s internal mentors, who are experts in the construction and real estate promotion sectors, have allowed the Ostrea team to validate several of their economic, market, and even technical hypotheses, saving a lot of time in the development of their company.
How do you facilitate networking and collaboration opportunities between the startups in your incubator?
Our program is open to all startups in France and internationally. Therefore, a large part of the program takes place remotely. We organize several exchange moments, notably during a kickoff of the program and the final demo day, but also throughout the program.
How do you measure the impact of your support on startups, whether in terms of growth, funding, or other key outcomes?
We invest in startups in the form of BSA Air shares. Leonard’s objective is to be considered a partner that enables the startup to succeed in its long-term development. Thus, at the end of the program, startups remain within our scope and are followed by Leonard’s teams. Moreover, the relationship developed with mentors often extends beyond the formal framework of support.
How do you assess the growth potential and impact of a startup during the selection process?
For pre-seed startups, it is very complicated to assess growth potential and impact. During the selection process, our thinking is largely focused on the market opportunity (notably the market growth dynamics, regulations), the environmental impact of the solution, and the team. The team is the fundamental point in the choice of projects. We seek committed entrepreneurs with complementary teams who want to address the challenges of the ecological transition of cities, territories, and infrastructures.