The Finnies

The third annual FinTech Australia awards were celebrated in Melbourne last week, following the organisation’s relocation from Sydney during the past 12 months. Any concerns the organisers and sponsors may have harboured (given the switch in geography) were easily allayed, as the event was sold out, with over 300 guests in attendance.

The overall winners were definitely B2C brands – challenger banks, consumer lenders, payment providers – with Airwallex, Afterpay (which despite some recent negative press was named the FinTech of the year for the third time) and Up Bank taking out more than a third of the awards between them.

Despite the 30 per cent increase in the number of entries (over 230 in all), it did feel like the Fintech community is still something of a village, as several award presenters were themselves presented with awards. Maybe something for the organisers to think about for next time, as it’s not always a good look when winners end up presenting to each other.

On the other hand, the organisers are to be commended for the running order – unlike some industry events, the awards were all presented in a single session, and not dragged out from soup to nuts. It was also a great decision to use the Victorian Innovation Hub as the venue, as well as have grazing-style catering instead of a sit-down dinner. And the choice of live band was excellent, as past, current and future bankers cut a rug.

Next week: Brexit Blues

 

Notes from New York Blockchain Week

Courtesy of Techemy and Brave New Coin, I was fortunate to attend this month’s New York Blockchain Week. Here are some high-level observations from my personal notes (all views are my own):

First, depending on who you asked, attendance numbers for the headline event, Consensus (organised by Coindesk), were well down on last year. Certainly, compared to last year’s human zoo (based on feedback from people who were there), there was more breathing room in the conference venue, and less frantic activity in the crush to get to and from plenary sessions.

Second, the last time I attended a Consensus event, Consensus Invest in December 2017, Bitcoin hit a then record peak of US$10,000. And while we did not see new all-time highs this month, Bitcoin again obliged with a substantial rally – such that many delegates felt that the crypto winter had thawed. Certainly, it helped to buoy the mood of the whole week, and the organisers of the Magical Crypto Conference were confident enough to bring a live bull to their event. (And where my colleague, Josh Olszewicz moderated an excellent panel on Exchanges.)

Third, there were more corporate exhibitors at Consensus – a sign that the Blockchain and Digital Asset sector continues to mature. Some of the enterprise solutions on offer are still early stage (for example, one institutional custody provider I spoke to are only servicing their clients’ Bitcoin holdings), and we are yet to see some high-profile projects get beyond proof of concept stage. Meanwhile an important component in Smart Contract management, ChainLink, is about to launch on their main net, and there was a lot of discussion around scaling (such as the Lightning Network) and interoperability (such as Submarine Swaps).

Fourth, another recurring theme was Custody solutions. Pension funds and other institutional asset managers are demanding robust, industrial strength infrastructure before they will allocate any of their funds under management to the new crypto asset class, as they will not entrust assets to be stored on exchanges or in vulnerable wallets. Moreover, institutional players require segregated client accounts, full transaction records and holding reports, independent and fair-value pricing data for NAV calculations, in addition to clearing, settlement and custody services.

Fifth, and linked to the above, there were a number of projects talking about dark liquidity pools. Not for any nefarious reasons (and not to be confused with the dark net), but to replicate what happens in other asset classes. Parties may wish to trade with trusted counterparts, but they don’t necessarily want to know each other’s specific identity. When it comes to placing a particular buy or sell order they might not want to reveal a position.

Finally, while there were some frivolous and lunatic fringe elements to the week, in general it felt more “grown up”. There were fewer ICO’s being shilled, and a number of projects that I spoke to (exchanges, protocols, tokens) are going through a period of transition and restructure – across their management, organisation, finances, legal entity or business model. Another sign of growing up in public.

Next week: Postscript on the Federal Election

 

 

Startup Vic’s EdTech Pitch Night

As part of its ongoing series of pitch events jointly organised with LaunchVic, Startup Victoria last week hosted the latest edition of its EdTech Pitch Night. Facilitated by General Assembly, Weploy, Marketing Entourage and VUInnovations, a quick audience survey at the start of the evening revealed that for 50% of attendees, this was their first Startup Vic event.

The panel of expert judges was drawn from Impact Generation Partners, Xplor, MAP and Education Changemakers.

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

Studychatr

Tag line: “Improving student experience and graduate recruitment”

Many students report that they feel isolated, confused, and lack both a sense of community and a clear career direction. On the latter point, traditional recruitment firms and employers want to target emerging graduate talent, which can be expensive. Studychatr wants to make the hiring process easier for both employers and students.
Users gain access to a knowledge hub, through which students can earn Kudos points and StudyCoins for helping other students, and acquire micro-credentialing credits for their course work.

The service is free to students, whereas recruiters and employers need to pay via job ads, advertising, talent search, and student consultancy (essentially a Sideracket/Upwork/Freelancer/Airtasker-type service that enables companies to commission students to undertake research and other tasks).

With students wary of using existing college-provides LMS and campus portals, and placing less trust and reliance on “free” social media services, Studychatr has managed to strike partnerships with student societies as the key to on-boarding users, with 1,000 user sign-ups in the past 6 months.

Part of the employer/recruiter strategy is help them overcome the challenge of filtering candidates.

The judges were keen to know more about what the app measures – e.g., number of user posts, level of engagement, quality of study materials, depth of the collaboration – and how the AI model works in this context, and to what degree the platform moderates content, collaboration and communication. They also commented that the founding team and their advisors could probably benefit from some further diversity

InquiBox

Tag line: “Experiential learning through play”

How do parents access STEM tools? For InquiBox, the answer is a subscription service to curated educational activity boxes, plus a web platform. Costing A$29.95 per month, and launched in December 2018, the business is experiencing MoM active subscriber growth of 47%.

The judges wondered whether the content comprised unique materials or a compilation of preexisting components, what was in the online content, and what % of the items were Australian made? They also asked if there were any teachers on advisory board, and whether the STEM themes are integrated, given that the core subjects are taught as separate disciplines.

Based on subscriber feedback and the churn rate, some parents felt that the product was too early in their child’s education, or the boxes were too frequent, so there is an option to skip a month and to only select the topics of specific relevance. In future, there may be on option to track a child’s progress via the web application.

Sales have largely come from word of mouth referrals, but the team are planning to forge partnerships with schools, and link content to the curriculum, and develop engagement with the parent community.

RocketShoes

Tag line: “A next-generation education platform”

The founder pitched this as “an education platform where students own their own content”. Using a combination of Blockchain technologies (primarily IPFS for file storage, and NEM for assignment submission and time stamping) students can upload and manage their own content, and retain ownership of their data (unlike other open-source tools, some proprietary LMS and most social media platforms).

The judges asked who is responsible for moderating the content. While it can vary by jurisdiction, the obligation can largely lies with parents and education institutions, although in some cases it may be the students themselves.

The judges were also keen to understand the revenue model – in essence the schools pay, but if content proves to be more popular as measured by IPFS usage, the fees can be reduced. While something of a personal mission for the founder (hence the lack of detail on the commercials), a sensible decision has been made to adopt an API approach, whereby RocketShoes can plug into an existing LMS, and bridge different applications and platforms.

TALi

Tag line: “Happier kids start here”

This is a game-based cognitive training tool for children with learning difficulties, such as ADHD, ASD etc. It is designed to enable early detection and prevention. The tool has been patented, and uses touch-screen access and gamification to leverage the principles of brain plasticity muscle memory.

Key areas of focus are core cognitive functions of Selection, Inhibition, Focus and Control. The process is designed to be both repetitive and intensive. The game adapts to the child’s individual level. Claiming to be clinically proven via medical trials (of which TALi owns the research data), the TALi Train application has been classified as a Grade 2 medical device in the USA. Next up are TALi Detect (pre-school) and TALi Maintain (to extend the child’s development levels).

Distribution is via parents, healthcare and other service providers, and schools; it also has NDIS status in Australia. The tool is designed to be used 25 minutes per day for 5 weeks and can be implemented direct in schools, or in the home (under parents supervision). The key age group is 3-8 years old, before children with relevant learning difficulties are typically prescribed medication such as Methylphenidate (Ritalin).

After the votes were in, and once the judges had deliberated, the people’s choice was TALi, while the overall winner was InquiBox.

P.S. Startup Vic and Victoria University Innovations departments have joined forces on “Found”, a survey-based research project designed to “uncover hidden truths of the founder experience”, the results of which should influence the overall eco-system. Interested founders can apply to participate here: www.found-ed.com.

Next week: Pre-election Musings

 

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