Source: Magyar Business Podcast
Introduction: Endre Jóföldi and Károly Kása were guests on the Hungarian Business Podcast, where they shared their experiences in a casual conversation about the startup phase, early challenges, and the continuous, dynamic growth that has led Precognox to demonstrate its expertise in AI and digital accessibility.
Who are you, where do you come from? And of course, what do you want to do with your life here?
Endre: In 2016, we were at an event in Boston, attending a training session at the Cambridge Innovation Center, which was very exciting. We also witnessed the finals of the MIT 100K competition, which we thoroughly enjoyed. Although we didn’t participate in the finals, we saw it, and it was very impressive. This was the point when we started focusing on automating knowledge-based work.
As a software company, we set this goal for ourselves: to automate as many “white-collar” jobs as possible.
How did you get into the world of software development?
Endre: Both of us come from rural backgrounds and met at the dormitory while studying at Kandó. We later chose our own career paths, initially not as entrepreneurs but as software developers or IT specialists, programming and developing web software. During COVID, many became familiar with remote work and we initially worked from various locations: Szeged, Pécs, Budapest. As our team grew, we needed more organized work processes, leading us to become a company and entrepreneurs.
How can one break into this sector?
Endre: To be competitive, you need professional knowledge and networking. We can learn a lot from Americans in this area. We didn’t recognize its importance at first, but years later, we did. Since then, we have strived to improve in this regard.
In 2009, we attended an event like the Medical Library Association conference in Hawaii. The USA has 2,000 medical libraries, whereas Hungary has only two. This was very striking back then. Understanding the market size and potential business opportunities was very helpful for us.
Although access to education and professional knowledge is easier today, there are still differences, such as in the size of capital investments. Competing internationally isn’t easy, but we continuously learn and improve.
What inspired you to venture into the United States and explore the opportunities there? What was your motivation?
Endre: Starting from Central Europe, the first thought isn’t necessarily to target the United States. The competition in this area is quite fierce. Despite this, we already had some connections. Our English skills were crucial because, while English is used in Western Europe, everyone tends to communicate in their native language. Additionally, we noticed that “NIH” (National Institutes of Health) projects were gradually declining and had completely ceased by 2011.
A decision was made that led to a surprising turn. In London, as part of an international project with the Vienna University of Technology, we worked on a medical search project with prestigious institutions like the University of Sheffield and King’s College.
Around this time, we received a call from Hungary inviting us to participate in a training program in Boston. Although we initially identified as an SME rather than a startup, we accepted the opportunity. We had to decide quickly and within two weeks, we found ourselves in Boston for a course. This was an instance where preparation met opportunity, even if we weren’t fully prepared. This experience still impacts us today.
Another example is our collaboration with Babel Street. We had been seeking a connection with them for a long time but it was only recently that a strong partnership developed. They are the developers of Rosetta, one of the world’s leading name search algorithms, widely used in applications like U.S. border control.
The performance-oriented culture and speed of the business world in the USA are impressive. Here at home, things are much more influenced by political and cultural factors. I see the same in other Anglo-Saxon countries.
Endre: In business, leadership knowledge, and marketing, the leading expertise is most readily found in America. The Anglo-Saxon countries have the most advanced knowledge and practices in these areas. It’s worth learning from them because they lead the world in this sector. Practically anyone is willing to meet with you once. The head of a Norwegian search startup, whose company was bought by Microsoft for a billion dollars, sat down with me for at least twenty minutes. Of course, when he saw there was no business potential in us or that it wouldn’t lead to a collaboration, he quickly said goodbye. He felt it wasn’t going anywhere, but he didn’t dismiss me thinking, “Who is this Hungarian guy, let’s forget about him.” Instead, he thought, “Okay, everyone deserves a chance, maybe this connection could bring something valuable.” This business mindset teaches you to always keep an open mind because you never know what big opportunity might arise from a meeting or business relationship that can come out of nowhere.
I feel that we could have progressed faster than we did. Although we engaged in leadership training and other areas, we recognized or took action on many things more slowly. Two years ago, Anikó Gáll joined us as a wellbeing manager. Recruitment has become much more efficient, and our growth has been more significant in the past two years.
I’m proud that we managed to hire great people in Kaposvár. It shows that even in such a small town, we can find excellent people, and I’m proud that we have formed a good team.
It’s important to seek new opportunities and connections not only when we need them. Networking must be continuous because we never know what opportunities may arise. One key piece of advice about networking is to continuously seek connections and meet people. People tend to forget that they always need to improve and that past achievements are not guarantees of future success. It’s crucial that ego doesn’t interfere with problem-solving and growth.
We can always count on those who work to improve and advance. Being surrounded by such people makes it easier and faster to develop than going it alone.
Incidentally, the entrepreneurial mindset has always been there somewhat thanks to my dad. We sold watermelons, grew pine trees for Christmas, and so on.
Károly, did you have any family members who were entrepreneurs or had an entrepreneurial background?
Karesz: No, not at all. The entrepreneurial spirit was not common in our family. I am proud of what we have achieved. When Endre and I started our own business from being employees, it was a time when the word “entrepreneurship” often had negative connotations for the previous generation, associated with cunning and exploiting others. I just shared what was happening with us, without trying to prove anything. If I asked my mom now what she thinks about it, she would say that she sees us struggling and learning, and that it’s an ongoing process of growth and learning. I hope she has accepted and understands that I am an entrepreneur and that this is a natural development for me.
Endre: I think this is part of a collective learning curve for all of Central Europe regarding entrepreneurial culture. What we do would stand up in Boston. Our office and our work methods might be a bit different here, offering some added value. For instance, we organized the Teacher of the Year in IT award in Somogy to motivate people. I see there is something here that can be important, and this personal added value means a lot to me.
Alright, what advice would you give to entrepreneurs in general? What should they pay attention to in order to be better? Could you predict what problems they might face and how they can prepare for them in the future?
Karesz: It’s a tough question because you need to experience it to truly understand. For example, we didn’t give up after the first failures. Instead, we focused on how to consciously respond to the events that occurred. It’s important to learn in practice and draw experience from your mistakes. The worst thing you can do is forget that every case is different. Each situation needs to be considered and analyzed. You don’t always have to go into depth, but if you see a fundamental problem, there are tools available for an objective analysis. This isn’t about blaming someone but learning from it and reacting better in similar situations in the future. This kind of learning and development can help improve our responsiveness. We call this a “learning review” because the goal is to learn from cases and avoid making the same mistakes again. It’s important not to view a failure as fatal or pointless but to try to learn from it and improve.
Endre: If something doesn’t go as planned, it’s worth looking at what happened and how it can be improved. Instead of saying, “this happened, we were unlucky,” we should ask: what can we do to avoid similar mistakes in the future? This type of learning and adaptation can help improve the chances of success for our projects in the future. I believe more in this continuous improvement than in the myth of business geniuses. This is the most important principle in our business: to always learn and change based on our experiences.
What advice would you give to your younger selves if you were starting out now?
Endre: It’s difficult because true learning comes through gaining experience. We always aimed to respond consciously to the natural challenges we faced. It’s essential to learn from these experiences. So, if something doesn’t work out, it shouldn’t be a barrier but rather an opportunity to learn from it. The best advice I can give is to reflect on every situation a bit. This doesn’t necessarily mean delving into every tiny detail.
The goal should be to not look for faults but to think about how we can make things a little better. By doing this, we take significant steps forward and don’t just focus on immediate solutions.
What do you listen to, read, or watch usually?
Endre: One book I’d recommend, which is not typical, is by Andre Comte, a contemporary philosopher: “A Small Treatise on the Great Virtues.” A friend recommended it. I understand maybe half of the sentences in the book; it’s challenging to read, but it brings good thoughts. My wife, my son Marci, and I watched “Young Sheldon” together. It was very entertaining to see the story of the little genius as a parent.
Karesz: I also enjoy light content with my wife. When I have the time, I don’t follow specific channels but rather watch thematic stories.
What inspires you most professionally right now?
Endre: Building the sales team and system. I don’t want to hide behind this, but I genuinely believe that this is one of the biggest problems for 90% of Hungarian companies. We’ve expanded recently, hired a sales assistant, and a new salesperson started in early December, so we are continuing the year with great hopes and growing.
Karesz: As the owner focused on building the company and the CTO, I am working a lot on the intersection points. We are undergoing organizational restructuring, with proactive colleagues receiving independent areas. Supporting this, encouraging their independent voices, and showing strategic direction is inspiring to me. AI is really taking off for us; it has absolutely hit the mark. We didn’t just start dealing with it recently and finding its proper integration within our customers organizations is an exciting challenge. As CTO, I focus on ensuring that the leaders of the areas find their own voices and directions for the common benefit of the company and the team.
