Patient technology development paid off

It started with an idea in 2008. Founder Evald Holstad had worked with hydraulic tools for the oil industry for many years and wanted to develop a mechanical well plug for the sector. Almost ten years later, the company began to turn a profit.

'It has taken hard work, with plenty of ups and downs, but we have believed in the solution and continued developing it,' says Holstad, Chair of the Board at E Plug.

Their perseverance has paid off. Today, the plug technology is in demand worldwide, and the company generated more than NOK 90 million in revenue last year. The well plug incorporates new features that solve known problems, reducing both risk and the overall scope of work in several well operations. The plug can also be reused.

'This company shows how patient technology development can gain momentum when you have the right people on board and set your sights internationally,' says Kari Holmefjord Vervik, EVP of our Rogaland office.

'We met an entrepreneur who had identified a market need based on his own experience. It was clear that he had drive and the ability to build a skilled and enthusiastic team,' adds Erling Johansson from our Rogaland office.

The founder highlights the importance of our services throughout several stages.

'We would never have made it without Innovation Norway. They have given us access to several important support schemes and prepared us well for what it takes to succeed,' says Holstad.

E Plug has received tens of millions of Norwegian kroner from DNB and us. In addition to funding, we have provided advisory through several of our international offices. Our advisers understand the market and business culture and have extensive networks in the relevant country or region. They can offer companies valuable insights and introduce them to relevant business partners.

E Plug has also taken part in one of our global accelerator programmes. These programmes help start-ups and scale-ups compete and grow in international markets.

'I had several lightbulb moments during the programme, and I wish I had taken part sooner. You get help planning the company’s next steps and learn how to work more effectively towards your goal. I recommend taking part in all the relevant courses and competence-building programmes we offer,' says Holstad.

The technology was costly and challenging to develop, resulting in losses for the company for several years. It took seven years to secure the first revenue-generating contracts and almost ten years to turn a profit.

But once things took off, they really took off, and in 2020, Norwegian business newspaper Dagens Næringsliv named E Plug its Gazelle Company of the Year. A Gazelle company is a fast-growing, profitable Norwegian business that has doubled its revenue within a few years.

'We have had confirmation that expanding internationally was the right decision. When you grow, you cannot grow faster than your finances allow, and it is important to prioritise customers who provide predictability. We managed to do that!' says Holstad.

He believes Norwegian technology companies should be encouraged to start exporting as early as possible. They have established the Forus Innovation Centre themselves – a group of companies that help each other enter international markets.