Centralway — An educated look
European “incubator” under the looking glass
Incubators are hot since Y Combinator. Some are successful per se, others have found a successful way to “operate”, like the infamous Rocket Internet. Even big name companies have their own. Google Ventures is a good example, now expanding to Europe.
Centralway, with headquarters in Zurich was repurposed/pivoted a couple years ago, to be a “new kind” of incubator. Behind this change was founder Martin Saidler.
Gather the best resources available to create, launch and iterate products. Crafting a detailed, reusable methodology for success along the way — or so they hope
Centered on the finance market, personal and industrial. Centralway have under their roof in Zurich, a couple “projects” in development. The more visible is Numbrs.
A Personal finance iPhone app that offers to manage all your bank accounts.
Contrary to most mobile apps of this kind, that runs and keeps your data on the device. Numbrs requires some sort of server side interaction and the reason is not clearly communicated.
Numbrs have a “trust” problem given that they not communicate what the application do and what is the unique point on the crowded market of personal finance. This is easily noticeable on the App Store reviews. Which are really not a fun read.
Since is not clear what Centralway do with all the personal financial information they collect from the moderate number of MAU they have. One is only left to wonder if they are going to be used in relation with some of Centralway secret projects named D and S or with some of their past investements like Banksysteme AG.
To see if something is working just look at the results
Based on the performance of their flagship product can be deduced the strengths and weakness of the methodologies in place. In a case like Centralway will also become the strengths and weakness of the companies they put out there. Since they are forging their DNA now.
Problems with Numbrs are easily solved if the company have the ability to look at the important things and take educated decisions.
They have a long way to get Numbrs at the same level of their competitors like OutBank, who have a very successful strategy noticed even by Apple.
Inside the beast
Described by current and past employes as a “very dynamic” company. Structures don’t last long and employee retention can be better.
You can work there for a couple years, change your title and earn good money
Employees are struggling with “documenting” all the process, all the time. In the end Centralway wants a “path-to-success methodology” à la Rocket Internet. With the difference that Rocket Internet nailed the technological side very well.
Groups are not really connected and the “department” feeling is very noticeable. This is common in many of the German market companies. Structured along “groups/departments” that “communicate” with each other. The direct result that when I deliver my work, is someone else problem what happens next.
If someone is on vacation the processes can stop all together till the person in charge comes back. This is a sign that communication and “common ground” are hard to get inside the company. There may be no clarity about the processes, and looks like employees are afraid of going out of the “script” to solve a problem.
Resulting in the employees doing disconnected tasks without really working as a coherent team on executing the vision/objective of the company. Not new and very common, but certainly not a path to success.
The average employee is young, with a big chunk of them “imported” from countries of the area. That makes a fun multicultural atmosphere with catered buffet lunch, 3D printer and small movie theatre.
The long road
Centralway may look like a “new kind” of incubator/company but in the end is not doing anything new or worth to be noticed, yet. They are good at projecting this image. The way of work is very similar and making the common mistakes that 90% of the companies in the German market.
Update #1: Old review from a former employee is added to the “Further Reading” section. The reviewer points out some of the issues I touch, but of course, with a lot more detail. I just scratched the surface here. Recommended reading.
Update #2: Centralway PR team leave a note to this article. Also my answer to that note.
