Catching Up with Doug and Scott from ZS2 Technologies

We’re taking a journey down memory lane and catching up with some of past Summit winners and companies that have received funding from our syndicate. Today, we’re checking in with Scott Jenkins (SJ) and Doug Brown (DB) from ZS2 Technologies. 

TNT: Hi Scott and Doug! How’s life been since winning the Summit? 

SJ: Life has been great! Our participation in the Summit was last minute. We had learned about it and entered, and got more and more excited as the process went on. We definitely weren’t expecting to win - we were in the middle of an equity raise, and this was a great bonus raise! 

And the double bonus has been the connections and people involved with Startup TNT. We’ve had multiple investors who have been watching us, who are now making introductions to developers, residential builders, and other cleantech companies that have materials that are super interesting. TNT fed into connecting with Avatar Innovations, which led to XPRIZE, which helped us tap into a whole community of like-minded people. 

 It also helped us gain press and brand recognition. It opened a lot of doors for us in terms of prospective clients and collaborations. I truly think it has been one of the best marketing and business development opportunities that we’ve had. 

TNT: Sounds like a whirlwind! And what are some other major goals that ZS2 Technologies has accomplished? 

SJ: When we were in the Summit, we had a team of about 10-12 people, and we didn’t have a manufacturing location in Calgary. Now, we have 40 staff members, and we’ve moved into a 10,000 square foot manufacturing and research facility in June last year which we then doubled in November to 20,000 square feet! …and we’re actually looking to double it again this summer.. 

We secured our largest contracts in the company’s history with a big Alberta developer, as well as our first contracts in New Mexico, Colorado, California, Utah and Texas. We’re also partnering with northern communities for innovative First Nations projects, and a federally funded retrofit project in Whitehorse, Yukon. 

Lastly, we secured grant funding from the federal government of $225,000 and filed 2 patents with more to come. 

TNT: Amazing! Congrats guys, those are huge goals that you’ve accomplished. Ok, so Scott, this definitely wasn’t your first time in raising, and Doug, it was for you. So what are some lessons you’d like to pass onto other founders as they try to raise capital? 

SJ: So like I mentioned, we were in an equity raise when we entered the Summit, and raised $2.2M. We then had a subsequent private raise of $2M, and doubled our valuation. 

And raising money is not easy. There’s a lot of people who will act like they’re interested, but securing capital and getting the money in the bank is hard. Early on, we had an insanely supportive angel investor who just saw our potential and let us go. And I think that’s key. You have to find the right partners. It’s not just about the money. 

DB: Agreed. And be transparent and honest. We’re incredibly transparent with all stakeholders. We act and report on all information, good or bad, on a regular basis. It’s about communicating, and communicating even more. 

Investors want to know everything that’s going on. Don’t be afraid of your speed bumps or bad news. Share it. Actually, if you share it, your investors will often have a solution or know someone who can help you. 

TNT: I love that point on transparency. So great. Ok, so what are some of the biggest mistakes you think startups can make while fundraising? 

DB: I think it’s a mistake to set expectations on how things are going to go. It’s a rollercoaster and anything can happen. 

And another mistake would be losing your focus. Changing or constantly pivoting, instead of finding your niche and committing to a vision. 

Oh and make sure you have your elevator pitch down pat. Fine-tune it every time you say it. And always make sure you’re excited and passionate when you say it - if you don’t seem excited, investors will feel that and then wonder why they should be excited if you’re not. 

SJ: And be patient! Everything always takes longer than you think. Be patient. 

TNT: Love it. Patience is a virtue, right? Lol. Alright, last question! What are some of the biggest lessons you’ve learned as co-founders?

SJ: Make sure you’re maintaining the culture and the fun. We started a company in the pandemic, when everyone had to be remote. It gave us opportunities to access talented people from across the world, and we had no office overhead too. With such a diverse and talented team, we had this great competitive and strategic advantage. Our staff never cease to amaze me. And with the growth, going from 5-6 people to our team of 40, it’s important to maintain the culture and maintain chains of communication. At our current stage of growth, the scaling-up time, it’s risky. It’s the time where you need to grow up a bit as a company, but still have fun, still be a great place to work. 

DB: And it’s important to make sure you don’t underestimate the foundational pieces that you  need to build in, during scale up. Foundational operational pieces like a sophisticated IT person, or key support team members - those people are so important to grow the company.

TNT: Love it. Thank you so much for your time today, guys! I know how busy you are and how much you’re growing, so I really appreciate your time and perspective. 

SJ: You’re welcome! Thanks for having us. 

DB: Thanks!