About Content in Context

Content in Context helps companies to define the market for their products and services, to identify customers and build the business pipeline, and to develop their content marketing strategies. By working with our clients to design, build and grow their business, our primary focus is to extract commercial value from unique assets, including knowledge, data, know-how, processes and transactional information.

Token Investment Summit, Vienna

To demonstrate how far Blockchain, cryptocurrencies and digital assets have permeated the traditional world of asset management, the Token Investment Summit in Vienna (organised by Crypto42 and hosted by the Vienna University of Economics and Business) covered a number of topics of particular interest to institutional investors.

Brave New Coin Head of Research, Rafael Delfin introduces the General Taxonomy for Cryptographic Assets

William Mougayer kicked the day off, discussing the need to define “Blockchain fundamentals”. In particular, some of the token jargon needs to be better explained (air dropping, locking, burning), and some industry practices (token definition, protocol design, staking, and on-chain governance) require more formal and consistent standards. Projects need to address their “Token-Market Fit”; chains need to think about their scaling and interoperability; and tokens need to deal with decentralized exchanges, post trade clearing, and asset classification.

Next, Rafael Delfin from Brave New Coin presented the General Taxonomy for Cryptographic Assets (covered here before), followed by pitches on behalf of Rigoblock (decentralized fund infrastructure), HydroMiner (green mining), Conda (equity tokens via a crowdfunding platform), Artis (time-based value or asset transfer on chain), Streem (“start & end” events only) and Ocean Protocol (the data exchange network from BigChainDB).

There was an overview of ICO regulation, comparing some of the developments in Germany (Bundes Block’s Token Regulation Paper), Austria (University of Graz’s KryptoStaat project), Switzerland (FINMA paper on ICOs) and Gibraltar (GBX token listing using a risk-based model).

Much of the day was given over to discussing compliance, taxation, accounting, token economics and investment research (such as token valuation models, correlation analysis and crypto returns). There was also a local case study on the Optioment scam, and the potential criminal and civil breaches.

Finally, a panel of VCs provided their perspective how to navigate this asset class, as the industry weighs up the recent wave of more speculative tokens, and moves to more structured capital gains, especially from so-called security tokens.

Next week: CoinAlts Fund Symposium, New York

 

Beyond Blocks, Tokyo

Thanks to my work with Techemy and Brave New Coin, Content in Context is currently on the road, attending various Blockchain and crypto events in Tokyo, Vienna, NYC and Chicago. The next few blogs will attempt to capture notes from the field.

Techemy CEO, Fran Strajnar presents on the new asset class of digital value

In Tokyo, the Beyond Blocks Summit was a stellar affair, with marquee blockchain projects and major investors presenting on stage, alongside cosplay characters, light shows, upbeat music and a crowd of crypto fanatics.

Given the significant developments in Japan’s regulatory framework for crypto-currency trading, there was a lot of interest in the presentations by bitFlyer, Quoine and Smart Contract Inc.

As with the recent APAC Blockchain Conference in Melbourne, there was a strong representation from China’s growing base of Blockchain projects (but not ICOs, of course), keen to demonstrate their infrastructure projects.

There was much debate about regulatory developments across Asia, made all the more interesting by the announcement that Monex is acquiring Coincheck, despite (or because of?) the recent hack on NEM tokens held on the local exchange.

Among international key speakers were Patrick Byrne from Overstock and tZERO, John Burbank of Passport Capital, and Techemy’s own Fran Strajnar – all looking to the future of this new asset class, especially so-called security tokens.

Interspersed throughout the two days were panel discussions and presentations on scaling, infrastructure, decentralized exchanges, stable coins and the future of ICOs.

Although this was only their second event of this kind, the Beyond Blocks team have quickly established themselves on the conference circuit.

Next week: Token Investment Summit, Vienna

 

The fate of the over 50s….

In recent months, a number of my friends and former colleagues in their 40s and 50s have found themselves being retrenched. Nothing surprising in that, you might say – it’s a common fate of many middle and senior managers to be “delayered” by their organisations. And of course, redundancy is now something that everyone in the workforce must expect to face at least 3-4 times in their career.

What is surprising is that in most cases, these friends and associates have been taking deliberate steps to remain relevant, by retraining and upskilling, by keeping up to date on business trends, or by engaging with new opportunities via meetups and networking events. Nevertheless, their employers have found reason to cut their positions – and despite a bar on age discrimination, the likelihood of some of these older workers finding comparable roles is greatly reduced.

This scenario is not helped by the challenges younger workers are experiencing in finding their ideal job, at least during the first few years of their careers. I would probably dispute this assertion, for the simple fact that many younger workers do not really know what career they intend to pursue, or are not aware of what options are open to them. Plus, apart from areas like medicine, science and engineering, secondary and tertiary education should be less about getting formal qualifications and more about learning how to learn, how to engage with new ideas, how to explore different concepts, how to acquire different experiences, and above all about being prepared for life….. (In my own case, I probably didn’t find my “true” career path until about 5 years after joining the workforce – a process helped by undertaking some further training when the time and circumstances were right for me. But this “delay” did not prevent me from gaining valuable experience in a series of jobs – especially as employers did not expect younger new hires to stay more than 2 years in the same role.)

Some of the corporate job-cutting is no doubt driven by economic and financial necessity, in the face of automation – and this is a trend which probably puts older workers at a disadvantage, if they are deemed less able to learn or adapt to the new technology. But as I have argued before, being older should not mean being obsolete.

One friend noted that in transitioning to a new role, there was a higher expectation that they would adapt and learn the ropes more quickly than a younger new hire. Again, this puts older workers at a disadvantage as they will be cut less slack than a rookie in a similar role.

So it seems that older workers are seen as less able (or less willing?) to learn new technology; but at the same time, they are expected to deal with change and disruption more easily then some new entrants to the workforce. There is also a growing expectation that the older you are, or the longer you have been in your previous role, the longer and harder it will be to find a suitable new position. (Again, in my own case, after I left my last corporate gig, I spent 5 years doing a range of consulting projects and contract roles, before finding myself working in a totally new industry – one that is at the cutting edge of disruptive technology, and didn’t really exist at the time I left the corporate world.)

Finally, I was struck by the comment of a former colleague who is being tempted back into the workplace, having made a conscious decision to take earlier retirement:

“I like being retired. I also know that one day you’re the hero and the next day you’re considered part of the problem.”

Next week: Beyond Blocks, Tokyo

 

 

 

Startup VIC’s Retail & E-Commerce Pitch Night

As with the same event last year, this pitch night was again hosted at the Kensington Clik Collective. Going by the audience numbers, the retail tech and e-commerce start-up sector continues to generate widespread interest, despite (or because of?) the fragile state of most bricks and mortar retailing in Australia, and the onslaught of global online shopping from the likes of Amazon and eBay.

The four pitches in order of presentation were:

barQode

According to the founder, it all started with a scarf… and how he might have paid more for the item at the time he wanted it (but less than the retail price), compared to the eventual discount price a few months later. If only he had been able to bargain on the spot. Enter barQode – a location-specific app that enables customers to make an offer on an in-store item, and retailers to match or counter the customer offer.

To be clear, this is not (yet) a price comparison tool or even an on-line platform – it’s an app aimed at specific, location-defined, in-store purchases.

While simple in concept, the app does require a huge behaviour change by shoppers. Australians are infamous for being “price sensitive” buyers (not the same as being “cheap”, as one retail consultant once corrected me). Cost plays a huge role in purchasing decisions, especially as choice is often limited in a sector dominated by an oligopoly of brands, and a traditionally restricted market in terms of parallel imports and geo-blocking.

But barQode requires Australians to get comfortable with the notion of haggling, and that is quite a culture shift. Yes, some retail brands offer price matching against their competitors, but as this pitch pointed out, this is all about in-store purchases and prompting a more emotional engagement.

Most of the questions from the panel of judges focused on the competition, customer acquisition and market entry. Using a combination of platform fees and analytics services, barQode claims to be cheaper than the competing platforms, which also risk dis-intermediating retailers from their direct customers. Costs of acquisition were not disclosed, since the app is only in very select beta. The founders appear to be targeting discount retailers rather than selecting a specific category launch. This raises the prospect of only attracting bargain hunters who are already tempted by stock clearance offers (a race to the bottom?) – rather than engaging with select brands who can afford to yield some margin while potentially securing a new customer base.

The team claim to have a patent pending (they are working on image recognition, rather than simply relying on bar codes and other inventory data), and is seeking $350k in seed funding prior to a $1.5m Series A.

Epic Catch

Under the banner, “The social collective – date differently”, Epic Catch claims to be fostering organic connections via shared experiences for singles.

I have seen this start-up pitch couple of times before, where the initial emphasis was on being a new kind of dating service. But now, presumably with more experience and more market research, it claims to be addressing the “loneliness epidemic” – despite all the so-called “connections” people have via social media (and given recent events at Facebook, how much longer will that particular trend run?)  there is actually less and less personal engagement in the world.

According to data cited by the founders, in Australia, 35% of households consist of single people, a figure expected to reach 60% by 2036. At the same time, single people (neither age nor other demographics were defined) each spend an average of $12,000 a year on social activities. (It would have been interesting to see a breakdown of this spending pattern by consumer category, season, age, gender and location?)

The business model relies on a mix of subscriptions, commissions and affiliate fees, via a business partner model, member fees and booking fees. The founders are looking to raise $1.5m, primarily to fund marketing costs, as customer acquisition has mostly been organic, word of mouth, and SEO. To help them on their journey, the founders have appointed a solid advisory board, in their quest to counter the “fast food culture of dating and matching apps”.

Winery Lane

Winery Lane is a curated online market place, servicing independent wineries. Currently engaged on an equity crowd funding program (to raise $900k in return for 18% equity), the founders suggest that the $7.5b wine industry suffers from too many brands. A few large names dominate the market (by supply and by retail consumption), and a long-tail of boutique and specialist wine makers struggle for recognition (even though they often have a superior product). The biggest challenge is: producers can’t control the end distribution, especially small producers.

Winery Land has identified three core personas of wine lovers: geek, aspirational, and seeker. Their goal is to connect independent wine makers with this target audience, by removing the risk for sellers – through enabling them to share their wine-making narratives, and only charging a success-based commission on sales.

The business model is to target 50-60 independent wineries, and charge a 30% sales commission, while offering a 20% discount to customers on 12 or more bottles.

Asked by the panel (which included a representative from Vinomofo) about potential competitor Naked Wine, the founders claim they operate in different segments – in particular, their focus on selling genuine wines (and not running private labels).

Behind the platform is a data acquisition component – by “pooling” their mailing lists, participating wine makers can actually reach a larger (pre-qualified) audience. The judges felt that marketplace models for wine are still to be proven, and wine makers are naturally very protective of their customer lists, to whom they can usually pre-sell their normally small vintages.

[As a piece of random market research, the next day I spoke to one wine-seller representing a boutique producer at a pop-up market in the lobby of a CBD office building. He claimed that by participating in a growing number of these pop-up markets around Melbourne over the past 12 months, he had increased the size of their customer list 10-fold. When I asked whether his sales and marketing strategy included using platforms such as Naked Wine, his opinion was these services were often more like marketing software. They may also require producers to discount too heavily, that they resemble something of a bulk distribution model, and that it was akin to a “pay to publish” model for wine makers – based on the cost of getting stock on to the inventory. And while it isn’t perfect, MailChimp was good enough tool for building, engaging with and growing their customer lists.]

Postie

This SME marketing platform highlights a major paradox:  small brands engage better than big brands, but social media and e-mail engagement are both declining.

Using Instagram-based campaigns, Postie has doubled average campaign engagement to around 42%, and tripled typical click-thru rates to 6%. Postie has also reduced the time to create a campaign from 5 hours to 8 minutes.

While there is some template flexibility, there are limited options, as Postie draws on the Instagram design aesthetic.

According to the founders, there are 15 million brands on MailChimp, and 8 million brands on Instagram. What makes Postie different is that it owns its e-mail campaign client, and brands get to control their own retail inventory management.

Despite some of the challenges in SaaS marketing solutions, Postie has seen success with some specific verticals such as hairdressing, but admits that is hasn’t quite got the right product-market fit. As a result, and as a means to scale growth, Postie is starting to train users, to become more of a self-serve solution.

Somewhat surprisingly, the judges voted Epic Catch the winning pitch – I guess it is hard to ignore the founder passion, and the decision to pivot away from being a “traditional” dating platform. Meanwhile, the people’s choice (based on Twitter votes) was for Postie, and by a large margin – I suspect because many start-up founders, entrepreneurs and SME owners in the audience would welcome such a service for their own business.

Next week: The fate of the over 50s….