Original article in Estonian posted by Tartu Postimees.
Photos: Silver Gutmann, Tartu Postimees

Dealum is a Tartu-based company focused on developing investment management and funding platforms. Their services primarily involve connecting startups and investors, providing software that streamlines the entire investment process.

Dealum’s clients are mainly angel investors, specifically associations that bring these investors together. Their main business is conducted in North America and Europe. In Estonia, they have only one client because there is only one such association in the country.

Currently, 90,000 startup companies and nearly 25,000 investors use the Dealum platform. In North America, 108 angel investor groups (83 from the USA and 25 from Canada) use Dealum, while the region has a total of around 400–500 such groups. Globally, more than 230 angel investor groups use Dealum.

Angel investors are wealthier and more risk-taking than average investors, explained Dealum’s CEO Seren Rumjancevs. With the software provided by Dealum, all the necessary actions can be performed so that an investor can get acquainted with a startup, review applications, fill out documents, and exchange information.

Dealum's software was developed in 2017 when the company's founders, IT entrepreneurs Rein Lemberpuu and Rain Kivisik, who were also involved in creating Playtech, realized that the process of finding investors had yet to fully embrace the 21st century—creating a single application required work on multiple platforms, using Excel, sending emails, attaching files, and transferring documents from one system to another. To make this process easier, Lemberpuu and Kivisik began developing software that would allow all these actions to be performed in one place, leading to the creation of Dealum.

Photo:  Sille Annuk, Tartu Postimees

Needs-based software

Previously, when a startup applied for funding, it often felt like their application went into a "black hole"—they couldn't see what was happening with it, and investors had to send separate emails to get more information. Dealum's platform offers all this functionality within a single program, providing both startups and investors with a clear view of the progress of processes.

Dealum is not a typical startup that grows rapidly, with the founders aiming to sell it after scaling. "We are an impact company; our goal is to improve the entire entrepreneurial ecosystem," explained Rumjancevs. Dealum's team consists of 15 people, all based in Tartu, except for one member who works abroad in the United Kingdom. Since it's a digital platform with English as the working language, it doesn't matter where the employees are located in the world. However, Dealum values having the team together, as they need to focus on continuous product development as well as customer relationships and problem-solving, which require communication and a sense of teamwork.

Once a year, Dealum representatives must attend a major event in the United States that brings together angel investors from all over the country. Seren Rumjancevs noted that it might be somewhat challenging to establish oneself in the US, as there is still a tendency to view Eastern European companies with some skepticism. The proximity to Russia and the war in Ukraine doesn't help the business either.

Nevertheless, Dealum's customer support is a strong point. Although the time difference between Estonia and North America affects customer support, which Dealum does not offer 24/7, Rumjancevs believes it is not a showstopper. "Even within the United States, there are significant time differences, so people are somewhat used to it," she added. When it comes to competition, there are only a few companies globally offering similar software.

"Our biggest competitor is Excel," said Rumjancevs.

Dealum's task is to move more companies away from outdated platforms to their software, where the same work can be done with less effort and more efficiently.

Specific skills

As for Dealum's future plans, they do not intend to grow exponentially, for example, to a hundred employees. However, a small increase in the team is planned in the coming years. "We see the potential to grow the team by five to ten employees," Rumjancevs added. This, however, requires finding employees with very specific skills.

"We do not hire programmers; we need developers, and those are two different things," said Dealum's CEO.

She explained that a programmer does what is required, like placing a button in a desired location and coloring it blue, while a developer must design the entire functionality from start to finish. Rumjancevs added that with the further development of artificial intelligence (AI), programmers will be the first in the IT field to be affected, as much of their work is mechanical and could be easily handled by AI. The developer's job is much more complex and holistic, still requiring a sharp human mind and skills for a long time to come. Therefore, Dealum's CEO advises IT students to focus more on development rather than basic programming, considering the future.

Who is an angel investor?

An angel investor, often called a business angel, is someone who financially supports startups or small businesses in their early development stages. Angel investors are crucial in promoting entrepreneurship by providing capital, mentorship, and expertise. They are often the first investors to put their money into startups or small businesses at the early stage of their journey. Angel investors are willing to take significant risks, as early-stage companies will likely fail. Unlike traditional investors, angel investors often take an active role in the businesses they invest in, offering advice and industry insights and helping entrepreneurs connect with the right people to support their success.
Source: rahafoorum.ee

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Dealum is an invaluable tool for sTARTUp Day. Since 2019, all startups and investors have validated their profiles through Dealum. This information is used to create personalized matches that make it easy for startups to find the right investors and vice versa. In addition, sTARTUp Pitching receives 350-400 applications each year that can be evaluated quickly and effortlessly with Dealum tools.

Photo: Silver Gutmann. sTARTUp Day Head Organizer Jana Saastamoinen and Dealum CEO Seren Rumjancevs.