Article authored by Viesturs Deksnis.
The recent winners of the Latvian Investment and Development Agency (LIAA) competition “Idea Cup 2024,” Toms Lazdovskis and Matīss Tazāns, creators of the “MONK ECHO” effects pedal from “TTT Audio” (submitted as “Monk Reverb”), share tips for potential participants, their plans for the €10,000 prize, and whether the first sale of their innovative product might happen in just a few months.
Can you describe the beginnings of your invention? Are you involved in music and perhaps noticed an issue with reverb effects that your invention addresses?
Toms Lazdovskis: We’ve been in this industry for six years. While working together, our job roles at the previous company ended due to various reasons. However, we became friends, managed to play in the same band and spend much time together. This encouraged us to consider creating something together – realizing we are a strong team in which we complement each other with our skills. Initially, we aimed to start just a business, and only later came the product idea, which was inspired by our musical projects.
Our first product is a guitar effects pedal. I already own many pedals, as this field fascinates me – I read and think about them daily. This passion led us to design a user interface innovation we want to offer. I have thought a lot about the user experience and how I wish these pedals would work. The sound concept emerged from a video installation for which I created music using experimental techniques. I shared the idea with Matīss, who immediately came up with the perfect product name that defined our task. Our journey started with a desire to work together, building on our industry experience. Then came the name, and finally, the concept to justify it.
Matīss Tazāns: We don’t come from entrepreneurial families and lack the so-called entrepreneurial gene. However, previously working in a successful startup, I realized I wanted to take risks and start my own company, even though I didn’t know how or where. Once I decided, it made sense to continue in the industry I knew well after six years of experience. This led us to actively brainstorm our product.
What makes these effects pedals unique in terms of sound, playability, and what is the innovation they offer that is currently unavailable on the market, giving you an advantage?
TL: These pedals are electrical devices operated by foot to modify or enhance the sound of musical instruments. For instance, the aggressive rock sound of the 1950s and 60s came from devices altering guitar sounds, like amplifiers or pedals.
At Woodstock, Jimi Hendrix used multiple pedals, switching them on and off to change how his rock music sounded. Over the years, pedals evolved from basic effects to devices capable of altering sound in countless ways. Today, they are used not only by guitarists but also by violinists, synthesizer players, vocalists, and many more.
Nowadays, pedals are often moved from the floor to desks for use with instruments like synthesizers or drums. Producers also use pedals in studios to create effects for various sound sources. Additionally, pedals have become tools for active sound exploration rather than simple on/off devices.
Some experimental musicians even “play” the pedal itself, using an external sound source. For example, after playing a guitar chord, they might spend a minute experimenting with just the pedal. This is precisely where our innovative solution comes in. Our innovation allows for smooth transitions between sounds and the exploration of unexpected tones, transforming pedals into performance instruments tailored for modern musicians. Traditionally, pedals on the floor made real-time adjustments impossible during play. We’ve turned pedal use into an interactive and creative process.
Have any musicians or producers already tested your invention?
TL: So far, we’ve been only sharing the idea. We only have one prototype, which is invaluable, incomplete in functionality and will never leave our home. We’ve discussed it with industry professionals, including YouTube creators, artists and local industry peers like “Erica Synths.” Feedback has been positive, affirming we’re on the right path.
Must mention that our innovation is not revolutionary but deliberately builds on existing principles with our unique touch. We aim to add value to established practices rather than reinvent the wheel.
MT: We are collaborating with top-tier specialists who have years of experience working with prestigious companies and have received valuable confirmation. First, they’ve assured us that our idea is feasible and not some unrealistic fantasy. Second, we’ve sought their opinion on whether this product might be appealing to people, and their feedback has also been positive. This support boosts our confidence in the product.
After the award ceremony, Toms mentioned that you are aiming for your first sales by spring. It’s December. You still need to finish the prototype — will this be challenging?
TL: It’s ambitious, but our previous experience helps setting realistic expectations. Honestly, our initial plan was even more eager, but now we’re starting to scale back a bit. Some of the planned tasks may not even be necessary, allowing us to maintain a more moderate pace. First sales will likely be pre-orders or through crowdfunding campaigns, adjusting cash flow to reality.
Does the €10,000 prize cover initial costs, or do you need additional funding?
TL: The prize is enough to start but not complete the product or begin production. However, it’s significant as it opens doors to more funding opportunities, like “Altum” loans, which require a 10% co-contribution.
MT: The “Altum” loan is a very important factor in this process. If we had placed third and received the €5,000 prize, we would have been eligible for only a €50,000 loan. Now we are hopeful to secure a €100,000 loan, and that’s a significant difference.
If you see it just as a sum to immediately spend on something, it certainly doesn’t cover all the necessary expenses. But if you treat it as a ticket to access larger financial resources, then those €10,000 is a very meaningful for a company just taking its first steps.
TL: It’s wonderful that our family’s “safety cushion” can stay intact, instead of being redirected to the business.
It’s great that you also have other programs you can apply to. I understand you’re focusing on America and Western Europe. Why? Is it because the demand there might be the highest? Have you already researched or discussed this?
MT: The electric guitar is an American icon.
TL: Also, market data supports this focus. Language barriers are minimal, and the business model of selling directly to customers is viable. Additionally, the industries needing sound design are most active in the U.S. and Western Europe.
MT: Quite simply, the industries we serve—music, film, and advertising—where sound design and audio services are needed, operate on the largest scale in the U.S. and Western Europe.
TL: Honestly, we look at what others are doing—our former employer, “Gamechanger Audio,” who have succeeded in this, our friends at “Erica Synths,” who are active in the synthesizer market, and “ELTA Music.” It’s just about studying the success stories and acting similarly. This isn’t the case where drastic changes are required. Of course, there will be nuances in how we organize sales, but we have good examples to follow.
What’s the planned price range and product versions?
TL: We aim for a scalable product line with consistent physical platforms but customizable sounds and designs. There are examples where this approach works well. Moreover, the industry, like many others, is currently facing challenges, making it essential to think about scalability—how to generate higher revenue from a single cost base. This is important because selling a single product is unlikely to be as successful as it might have been during the COVID era, when people were actively looking for things to buy to entertain themselves at home.
How will you promote your product?
MT: Since we plan to sell the largest portion of our product through our website, social media, particularly YouTube, is key. Our audience looks for detailed story and entertaining content there. We’ll also attend exhibitions to showcase the product and connect with retailers.
TL: That’s more on the business deal side…
MT: Yes. And there’s something Toms has extensive experience with—a retailer network, which also helps distribute the product. The largest retailers often have their own YouTube channels and the most successful companies selling musical instruments have been those that recognized the value of YouTube early on. They’ve grown significantly by producing relevant content.
TL: Years ago, I was deeply impressed by an example of a car manufacturer. At the highest strategic level, they had to realize that they were no longer just in the car manufacturing business but in the app development business as well. It didn’t matter that the app was just a part of the car; they were, in fact, developing apps. A similar shift has happened in many industries. You’re no longer just a pedal manufacturer but also in the content creation business. Of course, our main focus is on getting the pedal into the box that works reliably and can be sold. But the other huge part is thinking about what our first piece of content will be. Realistically, when the product hits the market, I believe that content creation will be our biggest daily task.
MT: Moreover, while products don’t launch every day, your social media presence needs to be worked on daily and consistently.
TL: But that’s the work we still need to show from our side. We’re just at the starting point for all of that.
There’s just the two of you. Promoting on YouTube and other channels requires consistent effort, especially in the early months when you’re still finding your rhythm. There are well-known social media users who initially spent hours creating posts that now take them only 10 minutes. You’ve mentioned you plan to dedicate significant resources to this area. Do you have plans to expand your team?
TL: We do plan to expand the team, but it’s not a priority. Everything will be done when needed, and it’s clear that we won’t be able to do everything on our own. Expansion will also happen in the communications area—for example, we’ll need someone to handle support tasks. We’ll respond to the first emails ourselves, no matter how much we’d prefer not to. But later, that will need to be delegated. We’ll also be filming content ourselves, editing and publishing it, and writing all the descriptions. Fortunately, both of us—Matīss more than me—have real experience in this area, so I believe we can skip the first two learning steps. We can’t say exactly when new team members will join, but it’s not like we’ll be working as a duo forever.
What did you gain from the “Idea Cup” competition? After submitting your application, there were seminars, courses, etc., and the process was time-consuming—from autumn to winter.
TL: The biggest takeaway for me was learning the art of presentation. I don’t generally feel intimidated by presenting, but summarizing your entire business plan, product, innovation, yourself, your target market, costs, distribution channels, and so on—in just three minutes—is extremely challenging. And it’s not just about being informative; you have to make it engaging, convincing, and even sprinkle in some humor to win over the audience. I would say that it shouldn’t have to be this condensed, but if you only have three minutes, this kind of event certainly sharpens your skills significantly. The process taught us not just how to pitch a product but also how to present ourselves through subtle messaging. Mentors, especially Viesturs Sosārs, gave very direct feedback on how things sounded, which was invaluable for improving our approach. These are skills that will stay with us forever.
MT: A competition like this, forces businesses to think not just about big ideas but also to structure them clearly and ensure that every step and detailed plan is thoroughly developed. Without external deadlines and pressure, entrepreneurs might delay important steps or avoid tackling them immediately. Helps overcome stagnation, pushing you to address all the aspects necessary to move the business forward. It’s a valuable motivator, both strategically and practically, especially in the early stages when there’s still a lot to define.
Recently, I’ve spoken to many startup leaders about various projects, and I’m convinced that there are many people like you—with their own ideas and a desire to try something in their field where they have skills and experience, but they lack the courage, motivation, or other factors. What would be your encouragement to those who have a strong idea but are still outside similar programs because something is holding them back? After all, it takes a certain mindset, readiness to move forward, and willingness to accept criticism. Do you have any advice to inspire others to join programs and take the first steps?
TL: I wouldn’t want to make any general comments about entrepreneurship because we still have to prove ourselves. I wouldn’t want to say, “Do it this way because…” only to fail later. But regarding participation in support programs—I think they’re great for providing external deadlines to work toward. I believe that’s absolutely crucial. If you have an idea and want to sell something but haven’t promised a delivery date or app update, these programs create situations where, for example, you have to submit an application by the day after tomorrow, even if you’re starting with nothing. And then you realize how much you can achieve in such short time!
For instance, when we applied to the LIAA incubator, we had to fill out a three-year cash flow plan. Without the external deadline, we would have focused only on our idea—how the pedal sounds, looks, and feels. We would’ve ignored all the other business aspects. While we knew they needed to be done properly, it wasn’t the fun and exciting part. These support programs, even if you don’t win a monetary prize, force you to sit down and get it done. Those who don’t need this external motivation have likely already done everything.
MT: I’d emphasize the mental aspect. I remember how long it took me to stop overthinking and start acting. For two years, I’d walk my dog in the evenings, listening to business podcasts, trying to reshape my thinking and build the confidence to say, “I can do this.” That was the hardest part of the entire process—not doing the work, but breaking through the mental barrier. But it must be done, and you have to keep working at it. Latvia offers so many business support programs. Toms and I now spend time figuring out how to make use of them all. When we meet with representatives from the LIAA incubator, they tell us about even more programs we didn’t know existed. How can anyone in Latvia not start a business with such support available? It took me two or three years to mentally focus, and we only started taking real action this August. In just a few months, things have started moving forward. Mentality is the hardest part but everything is achievable!
The “Idea Cup” competition is organized under the ERAF project “Support for Innovative Business Development for SMEs” (ID No. 1.2.3.1/1/23/I/001).