How did Dacuda come about?
Martin Zahnert: In 2008, while studying mechanical engineering at ETH Zurich, I was working with other students on a project in the field of robotics. Afterwards the group continued to meet for more brainstorming sessions. We had a few ideas, and we took them with us when we attended a Venture Challenge course for budding entrepreneurs. That’s where we met Alexander Ilic and Michael Born, who came from ETH Zurich and the Business faculty at the University of St. Gallen respectively. At the course we received good feedback on our idea of a mouse scanner. Then we took part in competitions, acquired start-up capital and invited further investors to get involved. Those new investors were also full of enthusiasm about our idea. Next we built a model that we were able to use to present how the device would function. In 2009 we founded a stock corporation (AG) and put the company on a professional footing.

What is the idea behind the mouse scanner?
We wanted to make it easier for users to create a better connection between the real world and the digital world by means of an input device that they use all the time anyway. That’s why we equipped the mouse with a scanning function. The aim of the product we developed is to allow workflows to flow better without interruptions. For example, texts can be sent to Word for immediate further processing – including all kinds of formatting – or the content of tables can be used in Excel after just a few mouse-clicks. The device can be used to scan everything from small business cards and notes to entire A4 pages and photos and images that do not even fit on a scanner.

The product is now available in Switzerland. Are there any special features for the Swiss market?
In addition to scanning, all of the figures on Swiss deposit slips can be read and transferred to the e-banking program. Anyone who has had to type in the figures one-by-one in the past knows just how much easier our product makes the process. This integration works with all Swiss e-banking portals.

From a technical perspective, what was the greatest challenge you faced in development?
The difficulty is that the camera in the mouse records 30 images per second, and these have to be compiled correctly on the computer in real time. That means that a three-second scan produces almost 100 individual images that have to be processed. It resembles a large jigsaw that has to be put together correctly again and again – without being able to predict how the camera will move. This allows users to scan in any direction they want.

People always say that it is difficult to find investors for a new idea. What was your experience?
It goes without saying that we also had to convince investors, but everyone who helped to set up the company is still very involved and dedicated to it. We were lucky enough to have several investors to choose from, and we chose the best ones with the expertise appropriate for our business models. In addition we have research projects at ETH Zurich that are subsidized by the CTI (the Swiss Commission for Technology and Innovation) and helped us to move development forward.

The product was available in the shops just three years after the initial prototypes. How did the story continue after the company was founded?
From the very outset, we wanted to develop a mass product suitable for sale worldwide. To do this, we were looking for a partner with global distribution channels. We took our reference models to large global companies and introduced our product to them. In the end we entered into cooperation with LG, one of the world’s largest technology firms. That company has the license and is now marketing the first product all over the globe.

Wouldn’t it have been better to keep control of everything yourselves?
We thought about whether we wanted to be a company that provides the technology to other companies with a strong production focus or whether we should hold onto the entire product process. As a start-up we would not have been in a position to do everything from production to distribution and marketing so quickly on a global scale ourselves. Consequently, we considered a licensing model with a strong partner to be the better alternative for making our technology the standard mouse technology in the long term.

Are all of the company’s founders millionaires now, like at Apple after its initial success?
(laughs) No, that’s not the case. We did not get rich overnight, because the money is invested in the company. We have created 18 full-time jobs in Switzerland that we have to fund, and we also want our company to continue to grow. One product is definitely not enough to ensure permanent market success; expansion is going to require investment. The original team who founded the company comprised just four people, now there are 18.

How did you transform yourself from a student with a good idea to the technical head of the company?
In the beginning we made all the prototypes and wrote the software ourselves. We quickly noticed that we needed more manpower and more expertise, which we got by hiring employees. I automatically carry out the management functions and try to work for the team so that they can work in peace on their development tasks. I believe that our focus is on development and not on creating levels of hierarchy or authority.

How did your studies at ETH Zurich help to develop the product?
The very broad and in-depth technical understanding that I gained during the degree was a particular help to me. It allows me to see things pretty quickly and to gauge and understand them. Our product in particular is very complex and interdisciplinary in nature. It incorporates software with highly complex computer vision algorithms, optics, electronics, mechanics – all of the disciplines have to work together and that is one major area for which ETH Zurich provided the foundation. Without the degree at ETH Zurich it would have been difficult to realize the product.

When you look back now at your product development process, what advice would you give to other spin-offs?
It is important to simply get started and put together a team of the right people. An interdisciplinary team is worth its weight in gold. It helps if it includes people with strong business acumen as well as people with excellent technical skills. When setting up the company and during the technical development, you shouldn’t try to reinvent the wheel, but look instead at how others approach specific issues.

Does Dacuda have ideas for other products?
We are constantly working on new ideas and want to use our technology in more devices. I can’t tell you any more than that at the moment. The first project for the coming year is the Mac version of the mouse.