Newsletter #8

Welcome to our 8th REHAU New Ventures Newsletter! In addition to News on Projects, Ventures & General, this edition will focus a bit on the topic of Artificial Intelligence. The starting point has been our new TechTalk format, which once again underscored the importance of this topic by giving inputs along the topic of Generative AI. ​​​​​Enjoy reading!

News 

TechTalk #1 Generative AI - Outcome

In June the first REHAU Tech Talk initiated by REHAU New Ventures took place. This new online format addresses technology trends which are relevant for the whole REHAU Group and encourages the participants to get involved in shaping how REHAU can implement new technologies. Out of approx. 350 invited colleagues globally, almost 150 colleagues participated, which is a very high acceptance rate (43%). The first Tech Talk dealt with the omnipresent topic of Generative AI and how it will impact us in the future. "Generative AI (Artificial Intelligence) is a form of AI that creates new content based on instructions and existing information. AI processes and technologies such as trained neural networks, machine learning (deep learning) and AI algorithms are used to generate text, images, audio and video content, programme code, 3D models and more according to instructions."

Three external panelists from Germany, Austria and Israel expressed their insightful viewpoints and encouraged to get involved in this topic and overcome fears and silos. In a survey sent out to evaluate the first Tech Talk, 96% responded that they consider the format useful and informative and all plan to participate in upcoming Tech Talks. LEGAL and DIV BS inquired for follow-up meetings how AI can be used in their daily work and projects and a community was formed within Microsoft Teams to discuss use-cases and to define the REHAU guidelines of how to use Generative AI. So as New Ventures we are grateful to contribute to the inspiration of the whole REHAU family when it comes to relevant future topics which ensure REHAU’s competitive edge and prepare it for the future.

During the call we also came across several Generative AI tools which also find relevance in our daily work at REHAU New Ventures and which we will come across in some Testimonial stories in this or future Newsletter.

Perplexity AI - Like ChatGPT, connected to the internet. USP: provides sources for its answers.
Jasper AI - Content creation and management. 
GitHub Copilot - Makes coding a lot faster by predicting lines of unwritten code. 
Descript - Great for transcription and editing both audio and video.
Jamie AI - Meeting assistant. Takes notes throughout meetings and provides a transcription.
Fireflies.ai - Helps to transcribe, summarize, search, and analyze voice conversations. 
Numerous.ai - Extract text, categorize, generate formulas, and use ChatGPT right inside your spreadsheet
​​​​​Midjourney - KI tool to create Moodboards and complex pictures based on prompts.

Recap digitalBAU conference 

Construction software and digitization in the construction industry have gained massively in importance in recent years. In order to reflect the high pace of development, the digitalBAU conference & networking event format with 2,000 participants was held for the first time at the Munich trade fair center in July. For REHAU New Ventures, participatiing in this trade fair premiere has been a great success. The aim was to gain insights into current market developments and trends in the field of digital construction, to gather approaches from panels and discussions, and to get in touch with potential partners.

In total, we were able to generate more than 30 valuable contacts while representing ​​​six innovation projects or ventures in different validation phases at the booth: 
SinnvollSanieren, Tenalytics,  CoStore, Piony, EuerZuhause

Our main activities apart from showcasing our innovation topics have been: 
-  Keynote on "Insights from 3 years of venture building". 
- Panelist on the topic "Successful innovation strategy in the construction industry”
- Cross industry panel of IFAT meets digitalBAU: "Solutions for circular economy”
- Jury member at the Founders Fight Night 

Getting into the field, no matter of on a fair, at a panel or at a pitch event, thats core to gain feedback and to build up networks!

Opening New Ventures Office Space  

In July we were able to move into our new REHAU New Ventures Office Space in Erlangen. The prerequists have been fantastic and in combination to the hands-on mentality of the team, our office space became really useful as it provides a very welcoming and collaborative working atmosphere. We also say THANK YOU to Carsten Heuer and Roger Schörnborn for having us! The picture is showing some shaking hands in our new office space were we also came together to celebrate the MoU which has been signed between Nils Wagner & Carsten Heuer to set up the basis for our strategic way forward on our WS retail business in Asia. 

About Corporate Venturing - Community Event Neosfer  

In July we have been invited to a community event of neosfer and Infront Consulting & Management GmbH where we spoke about corporate venturing, corporate venture capital and innovation. Besides interesting and detailed individual talks, there was fruitful input about innovation and venturing in highly regulated industries like finance and insurance. We got a sneak peak into the 2023 edition of Infronts and Capital study about corporate innovation and venture units. Main take-ways: Sustainability seems to be relevant for all innovation/company builder units! At the same time it is a challenge, as the combination of sustainability, growth and impact on people is not easy to accomplish. Many digital units do not see a major impact of their work on sustainable solutions yet.

News from the Munich Start up Festival 

REHAU New Ventures just had an amazing day at the Munich StartupFestival. One of the day's highlights was listening to the German Wirtschaftminiser Christian Lindner. He provided a comprehensive update on the current state of the entrepreneurial nation and engaged in a thought-provoking discussion on how politics can better support startups in Germany. Christian Lindner laid out his vision for change. The upcoming **Zukunftsfinanzierungsgesetz** aims to improve financing conditions for startups. Among its provisions, it reduces the minimum capital required for a successful IPO and makes it easier for institutional investors to invest in startups.

**Empowering Women:** Svenja Lassen, Managing Director Germany of Gateway Ventures and Founder of the Female Investors Network, passionately spoke about the need for more female representation in the startup ecosystem. To address this, she introduced the **@FIN-Academy**, a 6-week online program empowering women to become Business Angels and promote diversity in the startup world.

**Digitalization and Bureaucracy Simplification:** Christian Lindner expressed his commitment to streamline processes and introduce digital tools for financial administration, promising a more efficient system. A significant discussion point was data privacy. Lindner proposed a paradigm shift, advocating the replacement of data minimization with anonymization and pseudonymization to enable better AI and algorithm functionality. Moreover, the Minister discussed the issue of startups going public and for funding abroad due to a lack of sufficient capital in Germany. This raised concerns, prompting Hanno Renner CEO of Personio to share his thoughts on IPO options, emphasizing the importance of finding European solutions.

And we learned that Munich is a great place for start-up unicorns taking Celonis & Personio as an example.

Venture Updates 

AI Development @ NV -

Project Interior Digital Decor               

„Digital Decor“ is a project in cooperation with the REHAU Interior Solutions (FS) team in China. The focus is on edgebands: the polymer bands along the edges of furniture such as desks and countertops. It’s something small that you probably haven’t even thought about before, but the production is surprisingly complex!

With the help of AI, we can help our business unit saving time and money, and gain an edge in the market with this unique service. If you want to get more information about Digital Decor, please click on the video below:

News from "Livlig53"  

​​​​​​Finalist Startupdesign Award
Once again, award time for Livlig53, our garden brand for the most wonderful garden accesories. Our brand Livlig53 has been part of the final pitch sessions for the startupdesign award which already goes along with being rewarded cause of the outstanding product design of our garden hose line "Eden", including our sustainability approach and the vision to produce as much as we can locally. Apart from the award it is also great to observe our Ventures in the field, pitching, getting feedback & showcasing their vision & products to the audience.

Strong performance & 2nd campaign with our partner Westwing
Livlig53 has had a strong start into the season with nearly 400k net sales YTD and a great growth rate. In May & June 2023 Livlig53 already generated positive EBIT margin.

Mid of July we now started into our 2nd Westwing campaign. We are very proud to have entered into this cooperation with Westwing, a well-known e-commerce platform & shopping club for Home & Living. Our clear strategy is a direct to consumer business. Nevertheless, these very specific B2B partners help us to strengthen the brand and create a certain track record. Westwing did an initial campaign back in May that went very well with us, so we just got a call: Hey, are you guys interested in doing a repeat? And we said ... Yes!

We are very honoured that Westwing sees our brand as suitable for their inspiring and unique campaigns! 

News from our Venture "euerzuhause"

Euerzuhause, a AI matching solution with the promise to find a reliable partner for your construction project in about 5 minutes!  In terms of figures we can report growing numbers and show a very promising development over the last weeks. Due to the strong effort made by the team to really develop a functioning business strategy, the targets we have set ouselves in our last big review meeting could be reached. This is a great success and is definitely a reason to celebrate! For the following months the euerzuhause Venture Team will focus on developing long term goals for euerzuhause and set a clear vision for the future. The team already has some promising ideas and big plans for their Venture! 

We are also happy to announce that with Maximilian Gassner joining the team as Business Owner euerzuhause (unfortunately not shown on the Pic yet), our (3 people) Co-Founder Team is complete now.

Market ready! Smart Privacy flush-mounted master controllers passed CE compliance checks

The successful external CE compliance check of the Smart Privacy flush-mounted Master Controllers marks another milestone in the cooperation between the REHAU Division Window Solutions and REHAU New Ventures. Under the name "Smart Privacy", REHAU Window Solutions offers a complete window system where the insulating glass units can be switched between opaque and transparent within a few milliseconds - either over the entire area or like digital roller blinds in horizontal segments. You can control the switchable glasses with a Master Controller – developed by REHAU New Ventures. Particularly innovative and unique: Within Smart Privacy, the Window Controllers – and thus the switchable windows – communicate with their Master Controller via a serial CAN-bus. We currently have two Master Controllers in a standardized top-hat rail housing in the market that are intended for mounting in a distribution box or control cabinet, e.g. in the basement or utility room of a house.

To broaden the addressable market, and with a consistent focus on unique selling propositions and added value for the customer, Window Solutions is now expanding the portfolio by two Master Controllers for flush-mounting, thereby decreasing the installation effort significantly and allowing mounting near the windows or doors. We developed the product as plug & play solution to make it as easy as possible for the installers: Plug in the installed cables, mount the controller with screws, click on the cover – done! The flush-mounted Master Controller can address up to two switchable IGUs (insulating glass units), either directly, or via a Window Controller. For front doors, the addressable roughly 6 m² switchable glass area allows controlling several panes within a door panel, as well as a pane in the adjourning side panel.

We started on a blank page and could - after a predevelopment phase - begin with serial development in January. In June we already came up with the successful CE compliance checks. Within this time frame, we were able to do the full development of electronics, software, housings, and the implementation of testing stations, as well as implement manufacturing, assembly, and packaging processes. Extensive tests and system qualifications are currently being carried out to finalize the intended use and range of applications. We were and are supported by a regional development and supplier network for electronics production, cable assembly and housing injection molding. The complete pre-assembly, commissioning and warehouse logistics were also established by a regional partner and implemented as drop shipment.

REHAU’s flush-mounted Master Controller for Smart Privacy One and Select are the worldwide only control units for switchable glass for flush-mounting that are CE compliant for living areas. In order to retain our unique selling propositions over competitors for as long as possible, the system architecture with locally separated control units for Smart Privacy Select, including bus communication, the contacting solution for the switchable foil, as well as the cover plate design of the flush-mounted controller are protected by property rights from both New Ventures and Window Solutions.

What's next?
After completion of the tests and system qualifications, the series development can be completed with the CE declaration of conformity and the first deliveries can start. The colleagues from the WS sales department were already enabled to approach their customers with technical data of the flush-mounted Master Controller. Already a few weeks ago, we were able to provide a physical prototype to Weru, a large WS customer. Weru presented this at an important customer event with very positive feedback. A second customer event is already planned. Of course, we are not resting on our laurels. New Ventures is already working intensively on the implementation of the new smart home standard Matter in the Smart Privacy Master Controllers, intended to be completed by the end of the year.

Codecamp:N partners with REHAU New Ventures 

As part of a concrete early-stage innovation project, we are proud to be working with CodeCamp:N. Codecamp:N was originally founded as an innovation lab for the NÜRNBERGER Versicherung. A partnership in this set-up is very rewarding in several ways. Cooperation and joint development within a project brings in new perspectives for both sides. It reduce risks and enlarges the opportunity space. The REHAU New Ventures's know-how in venture building is combined in this project on an equal footing with Codecamp:N's deep tech expertise and knowledge in the field of mental health. Unifying just the right competences helps us to operate at the required speed. 

Workshop: Reinventing Windows for the Future

We conducted a workshop with our REHAU Window Solutions Division, aiming to redefine the future of windows. The event, "Future Window Vision 2024," brought together a diverse group of 11 participants who challenged traditional boundaries, bringing new product ideas to life.

Our agenda was filled with inspiration, brainstorming, and consolidation. Starting with an open exchange of ideas about future construction, building and living trends, participants presented their research. These trends were then voted upon, and the chosen ones provided focus for our ideation sessions.

In small teams, participants drew their innovative ideas on paper and presented them to the group for constructive feedback. This method was repeated multiple times allowing participant to build up on ideas or creating new ones. Teams were mixed each round for maximum diversification. The collaboration allowed us to harness our collective creativity, generating a wide range of forward-thinking concepts.

The ideation was followed by a consolidation phase, where participants voted for their favourite features. These were then mapped onto a roadmap based on customer value and realization time, providing us with a clear vision of the implementation sequence. The workshop concluded with detailed descriptions of the most promising idea concepts.

The "Future Window Vision 2024" workshop successfully fostered creativity and collaboration, paving the way for the window of the future!

People behind

Generative AI - Testimonial Story #1 

While building our Venture Homerenu (more on that soon), there was an interesting Generative AI use case that arose in the context of the bathroom renovation and remodelling.

​​Bradley Doering, our Business Owner Homerenu / GBC made some statement on using a tool which is called Midjourney: “I’ve played with Generative AI to streamline the interior design process and I think we are on the verge of a major change in the industry. As an example, I used ChatGPT to create prompts for midjourney to create moodboards and then turn them into HD renders. The results were impressive. The main drawback currently is that Midjourney won’t use real products in the renders or moodboards. As a result, I wouldn’t be able to generate real designs to share with customers, but it seems like it’s almost there".

Whats next Brad?
​​​​​​"Once it can implement real products, we will likely eliminate the interior designer role. In the meantime, I’m planning to develop 100s of generative designs for bathrooms that give a general “vibe” that customers can browse and use as inspiration, and then match the inspiration with real products manually. Previously, it could take weeks to make a single design and hundreds of dollars to create the render. Now I can make 20 in one day for free". 

Last words

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