Ep 206: Ilya Malkin

Turning Mixed LEGO Bricks Into a VC-Backed AI Startup: €1.5M Raised, Benefits of Iterative Fundraising, Real-World Complexity of Building Hardware & a New Frontier in Circular Tech

Ilya Malkin is the co-founder of Sort-A-Brick, a Vilnius-based startup that raised over €1 million in pre-seed funding at the end of 2024. Sort-A-Brick leverages AI-powered computer vision to analyze and sort mixed Lego bricks sent in by customers, identifying which complete sets can be rebuilt from them—breathing new life into unused collections and promoting a circular economy in toys. With a background in management consulting, Ilya spotted an opportunity in the massive Lego market while dealing with his own family's overflowing brick bins. Sort-A-Brick combines hardware and software to tackle the tedious task of sorting, serving both kids and "kidults" in a world where Lego continues to thrive amid digital threats.

On this episode we talk about:

Turning a personal pain point with kids' Lego chaos into a global business
How the toy giant Lego is growing at 10% annually, outpacing the market, and the rise of "kidults" driving demand
Why physical products are harder (and more defensible) than pure software, including longer iteration cycles and higher costs
Raising in tranches tied to milestones, using investor feedback as reality checks, and the "hidden revenue" of the process
Attracting top talent without prior exits, grinding harder as a first-timer, and embracing a no-ego mindset to get things done
How tariffs and re-commerce trends boost businesses like Sort-A-Brick, plus the potential for acquisitions by big players like Lego