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Written by: Tiina Lemmetyinen
Moped tinkerer to PhD in mechanical engineering
Following high school, Janne Heikkinen, from Lieksa, North Karelia, embarked on the most logical path for an Eastern Finnish moped-tinkerer seeking higher education: studying mechanical engineering at Lappeenranta-Lahti University of Technology (LUT).
“Back in the days, a degree from LUT was not as desired as it is today. I recall my high school guidance counselor remarking that those who attend LUT are either those who couldn’t secure admission to Aalto University, or Eastern-Finnish moped tinkering enthusiasts. I suppose I fall into the latter category,” Janne reflects on his educational choice.
While initially not a passionate pursuit, this decision ultimately proved instrumental in shaping Janne’s journey, leading him to his current role as the Co-Founder and CEO of SpinDrive, a company specialising in tailored active magnetic bearings.
Early on, his focus during his studies was not particularly sharp. But becoming a father in 2008 sparked a newfound sense of purpose. The responsibilities of parenthood prompted him to reassess his priorities and pursue a more purposeful path.
Taking a 1.5-year hiatus from his studies to work and support his family provided Janne with valuable insights into the realities of traditional employment. This experience not only reinforced his desire to become an entrepreneur but also instilled in him a deeper appreciation for the direct rewards of his labor. This break from academia also boosted Janne’s motivation to excel in his studies. As a result, his credits started piling up and grades improved. His master’s thesis proved to be particularly compelling, opening the door to pursue a doctorate.
Bridging academia and business – the birth of SpinDrive
For the subsequent four years, Janne concentrated diligently on pursuing his doctorate. In the realm of doctoral studies, collaboration with industry partners is customary, and Janne found himself deeply involved in such a collaboration with Tekes (now Business Finland). Fuelled by a Tekes grant, this project aimed to explore the commercial potential of magnetic bearing technology. With a budget of approximately €1.5 million, the project conducted a proof of concept and extensive market research to validate the technology’s commercial viability, ultimately affirming its promise.
Typically, in such scenarios, two paths emerge: establishing a company to commercialise the innovation or selling the technology to another entity. In this case, the former path was chosen. Following thorough evaluation and interviews with the research group, a team of four individuals emerged as the founding members of SpinDrive, leading to the company’s establishment in 2015.
Forging a carbon-neutral future through digital bearings
In simpler terms, bearings facilitate movement between rotating and non-rotating parts. Traditional bearings are metallic and rely on oil lubrication, whereas digital magnetic bearings utilise a magnetic field for levitation, offering numerous advantages over mechanical counterparts.
Magnetic bearings, commonly used in industrial processes such as gas compression, offer significant environmental benefits. They create an oil-free operating environment, crucial for environmentally sensitive processes, by eliminating the need for lubricants. With electronic controllers, they reduce friction, leading to higher rotational speeds and energy savings. Their smaller size contributes to material savings and increased energy efficiency. Moreover, they require lower maintenance, and their suitability for extreme conditions makes them ideal for high-speed rotating machinery, promoting sustainability in various industries.
SpinDrive’s current flagship product targets high-end industrial applications with a limited annual unit output per product line. However, in the future the company is directing its efforts toward reducing costs and optimising size to expand into smaller power classes. This strategy aims to enhance scalability by introducing a more affordable and compact solution tailored to smaller actuators.
Key milestones amidst the grind: From team assembly to job creation
According to Janne, the first major milestone on his founder journey was the ability to even assemble a capable and dedicated team brave enough to embark on the entrepreneurial path, something that is not taken for granted.
“I have been involved in sparring various university projects as a steering group member, and it’s relatively rare for what we did to happen; finding others crazy enough to leave the safety and security of the academic world to become entrepreneurs,” he shares.
Securing the first round of funding in 2019 was naturally another significant milestone for the company, demonstrating that others believed in their vision as well. The next breakthrough moment came with the successful execution of SpinDrive’s first pilot project in 2020, where they witnessed their technology in action, effortlessly propelling a large industrial device.
From its original team of four founders, SpinDrive has grown its workforce to 16 members, including five individuals with PhDs, one licentiate, and others holding at least a master’s degree. Janne finds fulfilment in the social impact his company creates, particularly through offering employment opportunities.
“On a personal level, being able to offer jobs holds deeper emotional significance than, for example, a successful funding round; it’s gratifying, impacting lives, and being able to support families. Knowing that our company contributes positively to society in this way fills me with pride,” Janne shares.
While facing no major setbacks, Janne acknowledges also the challenges of entrepreneurship, including the unforeseen amount of effort required to get anything done.
“In the grand scheme, the grind is consistently double what you expect. Even when you believe you’re nearing the finish line, something unexpected comes up and it takes a few more months or requires a yet another new test. There’s always an X-factor involved, typical in deep-tech/hardware business at least,” he explains.
Janne’s key tips for navigating early startup challenges
Drawing from his own journey, Janne offers some valuable insights for new founders, from highlighting the importance of diversity and customer-centricity to clear decision-making and maintaining healthy cash flow.
- Embrace diversity in skills and perspectives within your team. Incorporating diverse expertise could accelerate progress. Recognise the importance of different fields of expertise and be open to filling gaps from both within and outside the team. Don’t overlook essential functions.
- Strive for diversity also in your team composition. Diversity in gender, culture, age, and education fosters creativity, innovation, and broader perspectives.
- Prioritise customer-centricity. Listen attentively to your target market, develop solutions that align with their requirements, and build your business around fulfilling those needs. The driving force for innovation should stem from customers, not investors.
- Establish clear decision-making processes by avoiding equal stakes among all founders. Instead, consider distributing shares unequally, with one or two individuals holding a larger stake and the final decision-making authority.
- Be super selective with founders. You don’t want to dilute your ownership by having too many founders. Definitely, you want to avoid having any hang-around founders who do not bring their heart and soul to the table.
- View crises as potential opportunities. Stay agile, adapt quickly, and capitalise on unexpected circumstances. Unlike larger organisations, startups can pivot rapidly to seize advantages. Stay alert, identify openings, and use crises to your advantage.
- Remember that cash flow is king. Regardless of your business’s size or stage of growth, maintaining healthy cash flow is crucial for sustainability and growth.
Finding harmony within the hustle
Describing himself as an introvert and a bit of a “forest hermit”, Janne enjoys nature and tranquility, which contrasts sharply with the bustling startup environment he navigates.
Beyond time in the nature, staying active in the gym and playing floorball, Janne values activities that offer complete mental reset from work. He took on classical singing three years ago, and recently rediscovered his childhood love for playing the piano.
“It took me a while to understand that while staying fit is crucial, exercise alone isn’t the sole solution to finding balance. Everyone needs their own outlets to break away from work pressures. For me, it’s spending time in nature and music. It’s about discovering what works best for you,” he concludes.
Despite Janne’s self-proclaimed introversion and his initial doubts about the social demands of a startup CEO role, his outward confidence and engagement suggest otherwise. We have confidence in Janne’s ability to lead SpinDrive to great things and are excited to be part of their journey!