Demo Day #2 – Startmate

The same day as the recent Startupbootcamp event, the latest cohort of 8 founders to complete Startmate’s programme in Sydney held their own Demo Day in Melbourne.

The pitches in order of appearance were (websites links embedded in the names):

Muso

A live music marketplace, connecting venues and artists. Venue booking managers are too busy to research available talent, and artists face an inordinate number of individual processes to manage bookings and post-event admin. So Muso joins the dots, curates the artists, and takes a share of the listing and booking fees. In a world where more and more independent artists are self-releasing their recordings via platforms like Bandcamp and SoundCloud, it makes sense to extend this to managing their own tour bookings. Muso already claims to have booked 400 gigs at an average fee of $300, and also plans to expand into the US, UK and NZ markets. Currently seeking $1.2m seed funding.

VAPAR

Fault detection in infrastructure is highly manual, subjective and very expensive. VAPAR is using machine learning and cloud hosting to automate the analysis of video footage for underground pipes and sewers. A task that can currently take 2 weeks to complete can now be done in 2 minutes. Clients upload their footage and fixed asset data via a web platform, and VAPAR generate a report based on the image scanning. The business model offers a free trial access, a paid pilot project engagement, and a price per metre of pipe. Currently seeking $500k in seed funding.

VEXEV

According to the founders, vascular disease is the single largest cause of death, so there is increased focus on detection and prevention. Measuring and tracking blood flow patterns can be expensive and invasive. VEXEV uses 3D imaging captured from safer and lower cost ultra-scan technology, to measure disease progression, and to monitor and predict patient outcomes. Already secured seed funding from Blackbird Ventures.

Glamazon

This is a marketplace for at-home beauty services, “bringing a salon experience to your own living room”. According to the founders, a beautician could earn $80 per treatment compared to $23 if they work in a salon. Glamazon also offers its own business management platform via a SaaS model.

Cogniant.co

An app to “predict and manage mental health disorders before they happen“. Offers a dashboard interface for clinicians to manage their client case load, using data collected on patients’ activity and behaviour via their smart phone devices and sensors. Looking to raise $1m in seed funding. My personal observation is that a key contributing factor towards certain mental health disorders appears to be increased screen time (social media, apps that track our every move, binge watching, constant content streaming and always being “on”), leading to increased isolation, among other symptoms. While I can see the value of the data capture and analysis, hopefully the process does not reinforce the negative connotations.

Pixelated Induction

Introducing ClickCharge, a scalable wireless charging system that enables any surface to become a conductive medium. Some may remember that Apple tried its own solution, AirPower, that quietly ran out of steam. ClickCharge claims to have 3 times the charging area of AirPower, and can even charge laptops, via its inter-connecting tile design. Having filed an international patent, the founders are seeking $1.7m in seed capital to fund the build of 40,000 units for which they are currently taking pre-orders.

Bioscout

A remote system for crop monitoring and disease detection, using airborne particle tracking and analysis. Having run some field trials with banana and avocado crops, the team has identified considerable cost savings for farmers, both in terms of produce protected, and reduced use of preventive chemicals. (With the industry currently spending $2.5bn on crop monitoring and disease prevention, yet still losing $2.4bn in damaged fruit, any savings must be welcome.) Remote devices provide real-time monitoring and alerts combined with an analytics dashboard. Cost is expected to be $30k per device, plus $2k per month. The latter is presumably to pay for satellite connectivity, as the founders discovered that a key challenge for farmers is the lack of mobile phone reception in remote and rural areas.

Live Graphic Systems

This startup is aiming to reduce the cost of creating branded graphics for live sports streaming, from $5k per game to $100 per game. Current solutions involve manual processes, custom software, expensive hardware and dedicated people to operate them. Live Graphic Systems offers a scalable solution that connects brands to live streaming events, at near-zero marginal cost.

Next week: Startup Vic’s EdTech Pitch Night

 

 

 

Demo Day #1 – Startupbootcamp

Energy and climate change are proving to be hot topics in Australia’s federal election campaign. Not surprising, given that proposed changes to current policy settings brought down the last Prime Minister. With that in mind, it was impressive and refreshing to hear what founders participating in the latest Startupbootcamp Energy Australia accelerator program had managed to come up with over the course of 12 weeks. The 10 projects presenting at this month’s Demo Day offered a range of solutions that our political leaders and their advisors might want to acquaint themselves with.

The pitches in alphabetical order were (websites links embedded in the names):

Builtspace

The challenge for many commercial building owners is that their facilities managers lack full visibility into the physical design and fabric of the infrastructure they are responsible for. And much of the in-house knowledge literally walks out the door when staff leave. Builtspace has developed a SaaS platform that creates a “digital twin” of each building, managing everything from the asset condition to real-time maintenance transactions, all connected in the cloud. Claiming to reduce ticket backlogs to deliver a 75% productivity gain, and a 5x ROI, including increased energy efficiency, the founders are currently looking for re-sellers in Australia, and are in the process of raising Series A funding.

Ecologic

A home energy audit app that offers tailored advice at scale, Ecologic uses cloud-based simulations to deliver proposed energy efficiency solutions and enables users to connect to appropriate suppliers. The team has identified that the combination of a lack of independent information, unknown costs (and limited finance) and inadequate service co-ordination creates a barrier to adoption for many consumers. In addition, consumers need simple and actionable insights. Currently generating referral fees and sales commissions, the founders are investigating a subscription model for Uber-style consultations, and a white label B2B solution. During the boot camp, Ecologic has obtained 1,500 customer profiles, identified a channel partnership model with a number of local councils, and secured a pilot integrated utility service with Energy Australia. To address the issue of consumers’ access to finance, the founders are exploring a project finance facility, to offer customers zero upfront installation costs, and using the energy savings to pay down the debt.

Elemize

Using a distributed energy model, Elemize claims to have found a solution to Australia’s comparatively high energy bills. Via its LiberPower application, the team are working with property developers and builders to help them install custom renewable energy solutions to deliver “free energy” to their residents and tenants. Part of the solution involves the system taking control of the batteries in each home, to obtain maximum efficiency.

Fohat

One of the problems with domestic-scale solar energy systems is that we can end up with too many solar units – which in turn can, with things like feed-in supply arrangements, cause network and transmission constraints. Fohat aims to solve this problem with a software solution to manage microgrids. With the owner’s permission, the operating system can have visibility over the whole network by taking control of each battery, by directing network capacity to where it is needed, and/or diverting excess supply into designated batteries. The platform also supports energy trading (but not at the level of individual consumers), and has recently secured a pilot with the City of Melbourne to install a microgrid and battery system at the Queen Victoria Market. The startup profile also mentions the use of blockchain technology, but this important aspect was not described during the pitch.

ivcbox

It was a little difficult to understand what this browser-based video chat service was doing at an energy accelerator. But the fact that it only takes a 1.5% sales commission compared to the 22.5% cost of a face-to-face sale, means it should appeal to energy retailers who have encountered greater customer churn due to price comparison sites and increased regulatory transparency on fees and charges. The service uses facial recognition and identity verification, which means the API platform can also be extended to banks and insurers.

Nostromo

Nostromo has developed a “world first” modular Ice Thermal Energy Storage system, using a glycerol heat conversion process. Typically, 60% of the peak energy usage by a commercial building is for cooling purposes, yet the peak demand amounts to only 400 hours a year. Designed to support demand side management and storage, Nostromo has secured $5.5m in seed funding, including $1.5m in grants to develop demo solutions.

Powerdiverter

Around 2 million homes and businesses in Australia are already using solar energy. Storing and managing that energy remains a challenge. Powerdiverter is a hardware device that uses electric hot water tanks as energy storage units. It doesn’t require any plumbing or additional electrical work. It plugs into the existing solar system to divert all the surplus energy into the tank. A typical lithium battery solution has a 12-year payback, versus 1.5 years with Powerdiverter. The business model includes device sales (7,000 have already been installed, mainly in the UK), a subscription service and licensing agreements with energy providers.

RedGrid

One of the problems with our current electricity network is that it is built on “imposed” grids, not coordinated intelligent devices. This means an overloaded grid, and high energy costs. RedGrid aims to solve this, with a Platform-as-a-Service model, where every smart device will have machine-to-machine communications, delivering energy on demand capability. This so-called “Internet of Energy” is constructed on a decentralised demand management solution that is private, scalable and secure. The team is currently focused on universities and facilities management, as well as consumer markets, and are planning a crowd funding equity raise.

Senno

In an era of growing concern about how social media platforms and other service providers harvest, trade (and compromise) our personal data, an increasing number of Blockchain-enabled solutions are using things like self-sovereign digital identity and attention economics to put consumers in control of their own data, and empower them to monetize these assets. Senno is using digital wallets to help owners secure their personal data and to determine who has access to it, in return for specified rewards. Where does this fit into the energy market? Well, Senno proposes to share (non-personal) data and consumer behaviour on energy usage with retailers, in return for a share of the revenue derived from the metadata, under a SaaS model.

UCapture

According to the founders, consumers want to reduce their carbon footprint, but they don’t want to pay to do so, they are reluctant to change their behaviours, so they need incentives to do so. Using a browser extension (Chrome and Firefox), UCapture enables consumers to shop online at participating retailers and “earn” carbon credits in return. Consumers can also receive coupon codes. UCapture receives a sales commission on each transaction, and allocates 2/3 of the commission to carbon offset projects. (While unexplained during the pitch, it seems that each purchase is calibrated to an equivalent amount of carbon offsets – whether that is based on the ticket price, or the actual carbon footprint of each item is not immediately clear.)  UCapture is enabling corporate clients to batch install the extension on their networks, allowing their employees to participate. On the positive side, UCapture is giving consumers indirect access to carbon credit schemes which are often only available to wholesale participants. On the negative side, it does seem incongruous to be encouraging consumers to spend more and to buy more stuff, in order to save the planet.

Next week: Demo Day #2 – Startmate

 

YBF #FinTech pitch night

It’s getting difficult to keep up with all the FinTech activity in Melbourne – from Meetups to pitch nights, from hubs to incubators. The latest Next Money / York Butter Factory / Fintech Victoria pitch night was a showcase for three startups-in-residence at YBF. As such, it was not the usual pitch competition – more an opportunity for the startups to hone their presentations.

First up was Handy, an app-based solution that connects trades with customers to streamline the settlement process for property insurance claims. There is an industry-wide low-level of satisfaction with property claims – which can take up to 60 days to process, even though 80% of claims are for less than $5,000. Handy offers a faster solution, and doesn’t require a lengthy estimate or quoting process, using instead fixed-price rates. With a target market of 100,000 claims per annum, Handy expects to generate 25% savings to the insurance industry, as well as having a broader societal impact in terms of speedier claims, better appreciation of service providers, and more consideration of the respective needs of householders and trades. Launching an MVP in November, there are four insurance firms in pilot test mode. Aiming for a white label solution, Handy will charge clients basic setup and maintenance fees, as well as volume transaction costs (although the exact pricing and revenue model still needs to be worked out). There were audience questions about the liability for quality of work and dispute resolution, the trade supplier on boarding and verification process, and the process for communicating to policy holders whether their insurance provider or broker is covered by the platform.

Next was FinPass, a startup appealing to the 40% of the workforce expected to be freelance by 2020 – a key feature of the gig economy. Targeting so-called “slashies“, FinPass is designed to help customers apply for personal loans when they don’t have a single, steady or stable source of income – and therefore, may lack a formal credit rating or personal credit score – while adhering to the five Cs of credit. Using a combination of blockchain and API to validate a loan applicant’s income profile, FinPass would then make this data available to approved lenders (subject, presumably, to consumer credit and lending standards, customer privacy and data protection requirements). To be fair, this project was fresh from winning a recent hackathon event, and therefore is still at the concept stage. However, it was clear that much needs to be done to define the revenue model, as well as designing the actual blockchain solution. Audience feedback questioned the need for a standalone solution, given the existence of various block explorers, APIs, vendors, protocols and bank feed sources. In addition, while blockchain provides a level of transaction immutability, and since only the hash-keys will be captured, the SHA’s will only confirm the hash itself, not the veracity of the underlying data?

Finally, there was Resolve, a two-sided market place for the insolvency services – a platform to buy and sell distressed businesses. Designed to capture turnaround opportunities, the platform has a target market of 14,000 transactions per annum – of which only 1% currently advertised, simply because it’s too expensive to use traditional media (i.e., finance and business publications). In addition, 92% of companies that enter insolvency return zero cents in the dollar to their creditors. Part bulletin board, part deal room, Resolve aims to create a passive deal flow for this alternative asset class. When asked about their commercial model, the founders expect a turnover based on a few hundred businesses each year, and revenue coming from a flat $1,000 per listing – but the key to success will be building scale.

Each of these early-stage startups represent promising ideas, revealing some innovative solutions, so it will be interesting to follow their respective journeys over the coming months.

Next week: Bitcoin – Big In Japan

Agtech Pitch Night at SproutX

Judging by some of the news coverage, last week’s pitch night showcasing successful applicants to the SproutX agtech accelerator suggests that this will be a program worth watching. (Look out for the demo day later in the year…) With an initial cohort of 11 participants, this recent addition to Melbourne’s startup scene is showing there is an audience and a market for smart farming solutions. Founded by Findex and the National Farmers Federation, SproutX also enjoys support from Ruralco and Artesian, as well as the Victorian Government.

Given the number of pitches, my comments on each startup presentation are necessarily short:

AgriLedger

This project is driving social impact by focusing on farmers in the developing world. It offers a smart phone app that helps deliver products and services direct to farmers, such as solar power facilities and micro loans, and enables them to plan better and to share equipment with other local farmers. Currently active in Papua New Guinea, Kenya and Myanmar, AgriLedger has been supported by some high-profile NGOs and attracted some impressive backers and advocates.

However, the judges felt that the pitch didn’t contain enough of the story, or explain how it actually works.

Applant

With a tag line of “aTree in your home”, Applant has come up with a novel design for a vertical gardening system that uses aeroponics. The idea is to help people “grow more with less”, and to grow food where we live, work, eat and even play. With an underlying concept for modular food systems, Applant is about to launch a Kickstarter campaign.

The judges had hoped to learn more about the customer demand and the proposed
customer subscription model.

Bloomboxco

Delivering locally sourced and farm-fresh cut flowers direct to customers, my immediate thought was “flower miles”. Launching just recently with a monthly subscription model, Bloomboxco has already attracted around 35k followers on social media (mostly Pinterest). By its own admission, the service appeals mainly to women who enjoy contemporary design and lifestyle trends.

But the judges wanted to know what makes this business different: given that the current supply model for cut flowers is built on margin, how does Bloomboxco aim to compete?

Farmgate MSU

With their mobile slaughter unit (MSU), the team from Farmgate want to “open the gate to on-farm abattoirs”. Many farms do not have access to an abattoir thanks to industry consolidation and contraction. The MSU is designed to cut production costs, minimize animal stress, and reduce waste. While still relying on central butchery services, the MSU has the potential to add value, especially for premium products, as it can operate at smaller scale. Farmgate also benefits from having a team drawn from across the meat supply chain.

For the judges, the pitch could have done more to demonstrate the capability, and to explain what happens to waste and by-products.

Farmapp

Farmapp has developed a digitized and integrated pest management solution for greenhouse crops. Using data collected from various sensors and stored in the cloud, Farmapp uses visual analysis, helping farmers to reduce their use of pesticides and increase productivity. It is currently installed in 1200 greenhouses (mainly Columbia and Kenya).

The judges wondered about the competition, as they were aware of a number of other similar solutions.

iotag

This “fitbit for cattle” uses long-range GPS monitoring to track and manage livestock health. In addition to the setup costs for network base sensors, there is a monthly subscription fee to manage data.

There were no comments from the judges, apart from the representative from the farming community, who claimed to hate subscription services.

Smart-Bait

Smart-Bait uses sensors, cognitive APIs and programmed alerts to track feral animals. Current solutions (baiting, fencing, shooting) are either unreliable, inefficient, or non-selective. Instead, Smart-Bait is leveraging IoT and AI, and can be used offline giving further flexibility. Currently conducting farm trials, the founders say that there is government interest in the data.

For their part, the judges wanted to know if there were other applications for this technology – but more importantly, they wanted to know how it actually works.

Snaptrap

This product enables remote pest monitoring and control, especially fruit fly. It retrofits to existing systems, and has established a successful proof of concept. Snaptrap is targeting research, government and industry users, appealing to both growers and the bio-security market. Another subscription-based product, the founders claim there are many use cases, and the solution is scalable.

The judges asked about the data (what happens to it), and our farm rep again queried the use of a subscription model.

Thingc

With the goal of producing “intelligent orchestrated things”, Thingc aims to reduce the number of manual tasks and alleviate animal stress in livestock management. Using the notion of precision management, it takes data from monitoring sources and applies it yield forecasting.

The judges wanted to know “where’s the tech?”, who is the competition?, and what exactly is the end game?

TieUp Farming

TieUp uses an algo-based solution to compensate for the lack of data available for yield forecasting in horticulture. The data is being made available to farmers, industry and banks, using an aggregation of different technologies. The founders claim it to be both practical and customizable, while they see significant opportunities in South East Asia.

The judges wanted to know how it actually works, and to what degree it can support traceability of produce?

Water Save

As the name suggest, Water Save is designed to reduce water and power consumption on farms. With increased concerns about water efficiency and environmental impact of run-off on the Great Barrier Reef, Water Save uses existing irrigation monitoring systems (micro weather stations, sensors) and connects them into an integrated and networked solution. The system involves set up costs, hardware costs, and subscription fees, but a key goal is to reduce the use of fertilizers – creating both economic and environmental savings.

The judges wanted to know more about the solution for linking individual sensors, and whether it has the capability to monitor nitrates.

 

For most of these 3-minute pitches, the challenge was to tell enough of the “story” while still explaining how it works – and there was a sense that the audience understood the context as well as the problem, and probably didn’t need too much background explanation. Instead, they would have appreciated learning more about the technology and the potential to succeed – i.e, “why you?”.

Farmgate MSU was declared the winner by the judges, and voted the people’s choice by the audience.

Next week: ASIC updates – Sandbox and Crowdfunding (plus #FinTech hub)