IMPETUS Capital

Viktor Manev

Viktor Manev is the co-founder and managing partner at IMPETUS Capital. He oversees the entire investment cycle, from sourcing investments to exits and focuses on strategy implementation. He also helps investee companies execute their strategies for the next level of development. 

Stefan Juhls is the operating partner at IMPETUS Capital. He runs various hands-on projects as an interim manager and advisor globally across multiple industries, including shipping, retail and fast-moving consumer manufacturers. He also helps the European Bank for Reconstruction and Development (EBRD) to judge companies before they operate their business.

In an interview with Retail Tech Insights Europe, Viktor Manev and Stefan Juhls share insights on approaches and innovations shaping retail technology’s future and about the investments by venture capital (VC) firms for the retailers.

Challenges in the Retail Technology Landscape

Many established retailers rely on enterprise resource planning (ERP) systems, resulting in a landscape where various additional functionalities like forecasting and logistics modules surround core ERP systems. As these retailers expand globally, their ERP systems struggle to keep pace. This allows the startups to offer innovative, flexible and cost-effective solutions. 

From an investor's point of view, integrating new technological solutions into existing IT infrastructures poses challenges. Leading companies hesitate to adopt new solutions when their current systems seem sufficient.

“Technologies like augmented reality and artificial intelligence have transformed retail possibilities. Innovations such as demand forecasting with 97 per cent accuracy, tailored to individual stores, were unimaginable ten years ago.”

This resistance can hinder innovation and slow down progress, particularly in industries like finance, where centralized procurement processes restrain these changes by limiting direct communication with decision-makers.

Enhancing Credibility and Trust in VC Partnership

In the U.S., centralized procurement has recently made it necessary to engage with financial institutions primarily through innovation hubs. These hubs have budgets for experimentation and can implement successful innovations directly, including AI-driven supply chain optimizations. This approach fosters rapid adoption of new technologies and could benefit major European retailers and provide better opportunities for tech startups to bring their technologies to the retail world.

An example of an innovative solution is a leading global provider of transport solutions that independently manages a mobility fund that supports future logistics innovation without internal bias.

The retail landscape has developed significantly over the past two decades, but some markets remain conservative compared to the more aggressive e-commerce markets. Technologies like augmented reality and artificial intelligence have transformed retail possibilities. Innovations such as demand forecasting with 97 per cent accuracy, tailored to individual stores, were unimaginable ten years ago. Today, leveraging omni-channel strategies and advanced technologies is crucial for retail success.

Major retailers are converting their brick-and-mortar operations to online business, blurring the lines between physical and digital retail experiences and revealing significant insights into the industry’s future. 

Word of Advice

Welcoming new technologies is always essential for capitalizing on digital opportunities. Budget restraints often lead to prioritizing existing systems over innovation. Budgets must be allocated to experiment with innovative technologies and new solutions, mainly through collaborations with startups in smaller test areas.  It is important to be open and empower the next generation of IT professionals, who are digital natives, to engage with startups and drive innovation forward.

If you want to capture the significant opportunities presented by digital solutions, it's essential to establish a dedicated team of IT professionals to be involved with startups. It should consist of personnel with more digital knowledge who can translate, speak, and understand classic retail thinking and digital opportunities. 

For example, an innovative technology partner serving as the internal R&D department for the artificial intelligence operations of a company has established itself with 200 IT professionals in Bulgaria. They developed advanced solutions like AI forecasting and function as a separate entity. They are solving key targets and solutions on the IT side while aligning with their headquarters' guidelines. With significant investment behind them, companies like these are poised to emerge as leaders in the retail sector within the next five years.