4811 MAKIN’IT
How a public grant helped to launch champion
start-up Mendeley
Private investors are on the lookout for talented young entrepreneurs, with millions of euro to boost the most
promising enterprises. Yet smartly managed funding programmes like Eurostars, backed by public money, still appeal to
the best of European start-ups –Mendeley is one such example
Mendeley is one of the biggest
collaborate with other academics in
media-type website, connecting like-
successes
groups.
minded researchers, and showing
of
programme,
an
the
Eurostars
instrument
put
them real-time research trends in
together by 33 national innovation
Three
Victor
their own scientific disciplines. ‘It was
agencies in Europe and the European
Henning, Jan Reichelt and Paul Föckler
one of those rare situations when
Commission, using public funds to
founded the company in 2008. Their
the decision to invest or not in an
finance
market-oriented
young
Germans,
research
motivation was to solve a problem
idea took me less than 60 seconds,’
projects. Eurostars projects are set
they experienced as researchers; how
says Glänzer. ‘When they contacted
up by companies and universities
to manage, organise and annotate
me and explained their plan, I knew
collaborating across Europe and are
the hundreds of different documents
immediately that this was a great
always led by a small or medium
needed for their theses.
one.’
A guest
enterprise (SME). Mendeley received
its Eurostars grant in 2009; four years
later, it is now a confirmed member
of the global start-up scene, and a
success story widely advertised in
the Guardian, the New York Times
Mendeley received its Eurostars grant in 2009; four
years later, it is now a confirmed member of the
global start-up scene.
and on the BBC.
More
than
a
successful
startEuropean funding
up, Mendeley is the pioneer of a
lecturer at the business school that
movement to make science more
Reichert and Henning were attending
open
collaborative
at the time was Stefan Glänzer, a
Around the same time as they
technology.
successful investor in web-companies.
received Glänzer’s offer, Reichelt and
and
research
facilitate
through
Before 2000, the vast majority of
Henning decided to apply for funding
research papers were only available
Glänzer is known for his involvement
from
Eurostars.
via subscription, today over half
in last.fm, a music website based on an
purpose is to help small companies
of all research papers are available
automated recommendation system.
in the high-tech sector to deliver
through open access, on websites
He was immediately hooked by what
marketable products by collaborating
like Mendeley. Through Mendeley,
was going to be Mendeley’s pitch: a
with their European counterparts
researchers can manage the entirety
free software to manage and share
in
of their libraries and references, and
research papers, coupled with a social
attractive, but with its finances well
the
research
Eurostars’
sector.
main
Sounds
The Eurostars Programme is powered by EUREKA and the European Community
Doing business through technology
4811 MAKIN’IT
covered from the outset, why did
document has, where they are from,
its services are free, but it generates
Mendeley seek public subsidies? Jan
what their academic disciplines are
substantial
Reichelt, now Mendeley’s President,
and what else they are reading.
model where users can buy access
answers that question: ‘We knew we
revenues
through
a
to greater storage capacity or the
would have to face big challenges
When asked for his opinion about
ability to create larger collaborative
and the only way to overcome them
Eurostars, Glänzer is confident of the
groups. In addition, the Mendeley
would be to get more knowledge
key role public funding can play when
Institutional Edition was launched in
into the company. That is what
it comes to innovative businesses:
2012 and has already been adopted by
Eurostars helped us to achieve.’ The
‘From my observations, the whole
some of the world’s most prestigious
programme’s contribution wasn’t just
research sector relies on government
institutions such as Stanford and
financial.
funding,’ he says. ‘Public funding
the VTT Technical Research Centre
programmes like Eurostars should
of Finland. Mendeley has closed
Eurostars was, in Reichelt’s own
play an essential role in kick-starting
a recent round of funding which
words,
to
innovative companies, and then the
considerably increased its financial
public funding’. The simplicity of the
following stages should be supported
resources. Investors included Access
programme and its flexibility made
by private investors.’
Industries, Tom Glocer, former CEO
‘a
good
introduction
it stand out from other options. ‘We
did not need to adapt our application
of
A New model
Thomson
Andurance
to the scope of the call, simply to
Reuters,
Ventures
and
UK-based
Passion
Capital, of which Glänzer is a founding
describe our business plan and how
In the world of academic publishing,
we wanted to reach the market
Mendeley has been a real disruptor,
partner.
and make profit,’ says the young
director. To receive funding from
the Eurostars scheme, a research
project must involve at least two
participants from different European
countries.
with
and
Mendeley
programmers
Estonia,
which
collaborated
from
Austria
helped
the
We did not need to adapt our application to the
scope of the call, simply to describe our business
plan and how we wanted to reach the market and
make profit.
young start-up to stay ahead of its
competitors by developing strategic
a position that has attracted interest
‘Despite all the social media buzz,
technologies faster than any of them.
from major players in that space.
until Mendeley, there hadn’t been a
Initially, however, the company chose
real digital disruption in the academic
One of the many things the company
to partner with experienced tech
market,’ Glänzer enthuses. ‘In the
managed to achieve through the
investors: Eileen Burbidge and Taavet
future, I think that Mendeley will
Eurostars collaborative model was
Hinrikus, two of the company’s main
become the operating system for
the development of a scrobbling
backers had been early employees at
how research is done.’ ‘Give us a few
technology. Similar to the technique
Skype and oversaw its strategy and
more years and we could become the
used by Glänzer’s last.fm, scrobbling
product development.
Google of academic research’, says
is a neologism referring to an
the investor.
algorithm allowing users of a web
Mendeley’s
performances
remain
service to share similar interests: for
unmatched. Last November it hit the
every research paper in Mendeley,
two-million user mark and is now host
one knows how many readers the
to 340 million documents. Most of
Project participants:
United Kingdom, Austria, Estonia
Budget: 0.8 MEuro
Duration: 18 months
Contact
Matt McKay
Mendeley Ltd.
White Bear Yard
144a Clerkenwell Road
UK - London EC1R 5DF
T. +44 (0) 7808 240624
www.mendeley.com
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