Startup Victoria – Best of the Startup State Pitch Night

In support of Victoria’s reputation as “Australia’s Startup State”, last week’s Startup Victoria pitch night was designed to showcase four of the best local startups. Hosted by Stone & Chalk, the judges were drawn from Mentorloop, Brosa, Giant Leap Fund, Rampersand and Vinomofo.

The pitches in order of presentation were (website links embedded in the titles):

Code Like A Girl

Founded four years ago, Code Like A Girl’s stated mission is to bring greater gender diversity to the ICT sector (information and communications technology), within both the industry and education spheres. To do this, the founders say we need more female coders, which they plan to achieve via coding camps, internships, and community events. Positioning itself as a social impact enterprise, the business is active in four States, and 75% of interns are placed into full time roles.

To support the ongoing development of its “role ready” value chain and to prepare for possible overseas expansion, Code Like A Girl is seeking $1.5m in seed funding. Currently piloting the training model via education providers (RTOs, boot camps, universities, online code schools), the business takes a 10% commission on courses sold (held twice a year), plus it charges placement fees of $2k per person.

But the model is difficult to scale, especially as Code Like A Girl does not own or create the actual training content – it is acting as a sales channel for third party courseware, and providing platform for advocacy, engagement and influence. Its key metrics are based on things like social impact scores – such as 30% of kids return to boot camps. The panel felt that the community platform is a huge cost centre, and it might be preferable to try a TedX model, where Code Like A Girl provides branding and foundational support to build more of a network effect – but without its own curriculum, the business will still struggle to scale.

Seer Medical

The business claims to make epilepsy diagnosis easier, and is currently raising $14m for European expansion (UK & Germany). To improve current diagnosis, the model needs to capture time series data to distinguish epilepsy from other conditions, but do so faster, cheaper and more efficiently than current processes. Founded in 2017, Seer has already serviced more than 1500 patients via 200 clinicians.

Using the Seer Cloud infrastructure,  it can achieve diagnostic outcomes 10x faster than traditional methods, and the platform is using machine learning to train its algorithms. The service is subject to Medicare reimbursement, which has no doubt assisted adoption.

Asked by the judges if the platform could be used to diagnose other conditions, the founders mentioned cardio, sleep and other health domains. As for competition, this comes mainly from the status quo – i.e., hospital based services. With advocacy from neurologists, giving them access to customers, the founders have a strong track record in the research field, which helps to open doors with clinicians. Along with research partnerships, plus the public health cost reimbursement, data is the fuel of the business –  Seer even have access to some third party data on which to train their diagnostic.

Liven

A dining rewards app, Liven is also bringing a behavioral gamification layer to a real world use case. Currently, there is a poor linkage between loyalty programmes and gamification. So, Liven has launched a universal reward token (the LVN token) for use in a digital/real world context.  The details were scant, and the status of the LVN token sale is unclear, but it seems users can earn LVN tokens from completing certain “missions”. The token (using a standard ERC 20 token format on the Ethereum blockchain), is designed to be interoperable and fungible (but Liven does not yet appear to use blockchain in its end user app or merchant point of sale solution).

The said merchants pay a 10-25% commission on app-based sales, of which upto 40% is paid back to the end user in the form of LVN tokens – if I got the maths right, Liven itself is securing $15 profit on every $100 of sales. Currently only available in Melbourne and Sydney, the judges wanted to know what the appeal is to merchants. According to the founders, users typically spend more in an average transaction when they use the app. It also seems that the app only works in brick and mortar restaurants, cafes and bars. The path to scaling will be via channel partners such as PoS systems.

Although not yet deployed, in future, it was suggested that users will be able to pay in any crypto – which raises all sorts of questions about the tokenomics of the LVN token, and whether LVN will be subject to exchange rate volatility (and even token speculation) or act as a stable coin; if the latter, what will it be backed by or pegged to?

Phoria

Phoria is in the business of extended reality technology (XR). Started in 2014, Phoria was an entrant to the Melbourne Accelerator Programme (MAP), with the stated goal of moving VR into a mobile experience (“democratize VR”).  Having gained some clinical VR research experience, Phoria has since worked on commercial projects such as “Captured” (turning a 3D scan of a building or structure into a Digital Twin), “Rewild Our Planet” (a Singapore-based AR experience), and various art installations museum exhibits.

Phoria is commissioned by tech and media brands to create XR content. It has developed a SaaS model, whereby it can turn real space into virtual space (“virtualising internal space”).

The judges wondered where we are along the cycle of mass adoption vs peak hype. In response, the founders mentioned that the first wireless headsets are now available, although consumer-facing mixed reality hardware is still 3-5 years away. With a growing customer base in engineering and architecture applications, Phoria’s main focus is on spatial information.

After the votes were counted, the People’s choice was Seer Medical, who also won the overall prize.

Next week: 30 years in publishing

Startup Vic’s Health Tech & Med Tech Pitch Night

The theme for last month’s startup pitch night co-hosted by Startup Vic and LaunchVic was Health Tech and Med Tech. According to recent data, of Victoria’s 2,700 startups, 20% are in health services and technology. The judging panel was drawn from HealthKit, ANDHealth, MHX and Pfizer.

The startups in the order they presented were (websites embedded in the names, where available):

Hearables 3d

With the vision of “making custom-fit the new norm”, Hearables 3d is developing personalised and customisable ear devices. In  many cases, users give up on hearing aids because the purchase process is slow (it can take 2 weeks to place an order), expensive (average price of $300), and often of variable quality. Plus, providers are relatively inaccessible. Instead, using a combination of smartphone scanning, design powered by machine-learning and a 3D production process,  Hearables 3d aims to get costs down to $50.

The team are already developing working prototypes, running user trials, filing a patent, setting up a B2B distribution pilot, and have recently raised seed equity and been admitted to the Skalata Ventures accelerator programme. This will be followed by further fundraising in 6-9 months’ time.

The judges were interested to understand more about the business model – especially the payment system, and distribution structure. Hearables 3d aims to be a service provider to existing distributors, leveraging their automated design process. Given that the medical device registration process is currently done by manufacturers, of which there a six global firms, it would appear to make sense to become embedded in the current manufacturing eco-system and a key aspect of the go-to-market strategy..

The team is also looking at other verticals, such as sleep apnea devices, but the judges wanted to understand whether there were any plans for a direct to consumer model, and whether they were actively engaging with audiologists. There was also a suggestion that some competitors were making more of a fashion statement about their products, incorporating elements of  jewellery into their designs.

Stelect

Aiming to “take guesswork out of stent selection”, Stelect is changing the way PCI procedures (Percutaneous Coronary Intervention, formerly known as angioplasty with stent) are conducted. Currently, 4.1m cardiac stents are fitted in patients each year, but according to the founders, more than 70% are incorrectly sized.

Stelect has developed a balloon catheter with spatial sensors, which ensures a more accurate fit and a less invasive procedure because measurement and fitting are done in a single step.

Claiming that competing products are expensive (non-reimbursable), complex, not and integrated to current workflows, the team are initially targeting more acute cases, which account for 15% of procedures.

A previous winner of MedTech’s Got Talent, Stelect is aiming to complete a US FDA 501(k) pre-market submission for new devices by July 2021, with the likely exit of a trade sale once that process is approved.

A key benefit of this device is that it will combine two existing reimbursable codes, resulting in both initial cost savings for patients, plus downstream economic advantages for health service providers. Asked about clinician feedback and potential take-up, especially when compared to current imaging processes, the team stated that by removing the interim step of having to use a separate imaging catheter will significantly reduce the procedure time. The product overcomes the engineering constraints of traditional balloon catheters by drawing on the expertise of a microscopic transducers expert.

As to selling into hospitals, the team plan to partner with existing manufacturers and suppliers, and license the sensory capabilities. And while there is potential to commercialise data & analytics (for predictive purposes, for example) the current focus is on the device.

Consentic

According to the founders, the completion, collection and management of medical consent forms results in 40% dissatisfaction, just 20% retention and only 9% compliance. Often the cause of legal claims (due to limited patient understanding, poor form design or a lack of clarity), Consentic plan to challenge the status quo using video content, a checklist (to reinforce understanding) and a simplified consent form.

The team already claim a 20% improvement in patient comprehension, 80% patient preference for this model, and a 15% reduction in patient anxiety. It also saves clinician time. The product will be supplied under a subscription model with scale rates, and having completed successful trials in their own field of dermatology, the founders are looking to extend the service to other medical and consent verticals.

The team have completed 40 trials with 10 paid customers, completed the HCF Catalyst accelerator program, and are currently part of the 2019 MHX cohort.

The team were asked about whether they have integrated with practice management software (not yet), and whether they had plans to address US issues on health care and “financial consent”, and for removing the issue of consent as a barrier to clinical trials.

Hayylo

Hayylo is an aged care home services provider. For many clients, services change often with little or no notice. According to the founders, there is little transfer of client knowledge, a lack of shared team processes, and few common tools. Part of the problem is a communication challenge. This all impacts client independence.

Hayylo is an online platform, working with multiple channels and providers. It can provide clients with automatic updates, resulting in call reduction, and increased satisfaction. Using a B2B SaaS model, along with white label options, the team is targeting a potion of the $4bn-$8bn global market.

To date the team has mainly bootstrapped, obtained some angel investment, and has been in market since April 2018. Their strategy is to offer integration solutions (with rostering and practice management tools) and develop distribution partnerships (reseller agreements).

While there is competition, including from AI/ML and IoT solutions, the team believe that by mapping multiple data sources on to a single platform, and by unifying the team experience, the resulting operating system model gives them an edge. Currently in user testing with 10 providers, and 30,000 clients, the team is also using focus groups to gather feedback.

After the audience voting and judges’ diliberations were done, the People’s choice was Stelect, while the overall winner was Consentric.

Next week: Sometimes it’s OK to Meet Your Idols

Pitch X’s Winter Solstice

The latest Pitch X event, organised by Academy Xi and hosted by YBF Ventures, was held a few days before the (Southern hemisphere) mid-winter – there may not have been any mulled wine, but there was still a warm atmosphere on a cold and wet Melbourne evening. The judging panel was drawn from YBF, Melbourne Angels, Linfox and Clearpoint Ventures.

The usual format applied: 11 startups were each given 90 seconds to pitch, followed by a 90 second Q&A with the judges. The top three were then brought back for a 5-minute pitch, and 4 minutes of Q&A.

The pitches, in order of presentation were (links in the names where available):

Startup 101

A self-styled online startup school, targeting university students and recent graduates. The core premise is that entrepreneurship is not being taught to undergraduates. The judges asked about the MVP, which was not clear, nor was there a breakeven forecast based on the number of students. The founder is offering a freemium model, based on memberships and services. Looking $500k for software development and marketing in China (a key demographic for this business).

Studio Ninja

This is a cloud and mobile PaaS solution for professional photographers. I first covered Studio Ninja in late 2016, when they pitched at a StartupVic event – and it’s great to see that they have managed to bootstrap themselves this far.

Professional photography is competitive, but margins are low. Studio Ninja offers an end-to-end platform for scheduling, contracts, payments etc. They have now integrated with Xero, QuickBoooks, Google, PayPal and Stripe, and have built a community via their chat app, Facebook group and Instagram account. At a basic $29.95 per month, they now have 4,000 paying subscribers, mainly in Australia, UK and US. but need to reinvest in product development, scaling and building further efficiencies. Users are offered a 30-day free trial, with an average 25% conversion rate, thanks to the hook of discounts for early sign-ups, plus a referral program.

RoamingDuck

Calling itself the “Uber of travel”, RoamingDuck offers travelers access to curated itineraries, based on their personal preferences. Using freelance resources (along the lines of Upwork and Airtaskr), the service uses a travel planning dashboard on which the customer and the curator can collaborate. With a quick turnaround, RoamingDuck can help customers build and review an itinerary within 12 hours. With the ability to consolidate and share, the content is easily accessible to users, who can plan anything – even supporting “self-plan” users with a search function.

Freelance curators come from the ranks of existing travel bloggers and services like Travelo, and are subject to a vetting process. There is also an escrow system, so freelances only get paid when the customer is satisfied. Normal travel agents are quite restricted on what they can access or offer, and services like Skyscanner are great for searching individual fares – RoamingDuck is solving the planning issue, and building the itinerary. Asked whether RoamingDuck can support actual bookings, the founder will likely implement this via APIs.

Wastr

According to the founder, households waste about 20% of the food they buy. Wastr is an AI-powered app that is designed to help consumers use what they purchase, rather than letting to go to waste. The solution allows subscribers to scan their grocery receipts, and in return they will receive recipes, notifications on expiry dates, plus other reminders. The app is offered under a freemium model, with a paid service starting at $2 per month.

VRWalker

Described as “VR for your foot” (or the “mouse” for VR), this is a motorised shoe device that allows wearers to experience”walking” within VR applications, without actually moving.
It’s an idea that has been around for a while, but the founder claims to have filed key patents. The shoes work on the concept of intuitive locomotion (linked to the dantian, or our centre of gravity), and are intended to be much cheaper and much more convenient than existing treadmill-based solutions. The founder hopes to have a working prototype by the end of this year. Likely customers will come from areas like construction, engineering and gaming. The judges asked about how insurance would be handled, and the device could be bundled with existing VR headset devices.

The Nurture Project

The Nurture Project is designed to teach life skills to deal with anxiety issues, which according to the founder, affect 30% of the population. Unlike other solutions, this treats the causes as well as the symptoms, using a well-being model built on 5 core pillars, and delivered via a 12-week online program. It is currently aimed at women in their 30s and 40s.

Natural MedTech

Designed to boost the immune, hormone and nervous system naturally, this has come out of a CSIRO project, with a scientific basis that has been peer-reviewed.

Magicast

This is a decentralised online podcast recording and editing service. Existing podcast software is either too complex, or too expensive. Instead, Magicast uses web-based programme development, publication and distribution, offering a two-sided marketplace for content, sound effects, music etc. The judges asked about international competitors, given that podcasting is very much a cottage industry, with relatively few barriers to entry.

Turtle

Something akin to an Uber courier service, Turtle enables customers to obtain goods from overseas that are not available where they live. Targeting expat and diaspora populations, the platform has an escrow function to provide a level of trust. It was not clear who would be responsible for tax, customs and quarantine issues.

Young Shaman Foundation

Having run a number of leadership development retreats on country for women in indigenous communities, the founder is now seeking funding to develop and extend the program she currently offers.

SecureStack

Helping companies to secure the cloud, with a focus on cyber security, the founder pointed out that key problems are caused by “cloud sprawl” – the uncontrolled proliferation of content, services and applications hosted and running on cloud-based servers. Using a proprietary cloud infrastructure security design, the startup has already secured two clients and $100k in revenues. Now looking to raise $2m, for an 18-month runway, in order to gain 100 clients. The solution is agnostic as to which cloud service clients use. Traditional cloud management and compliance is saturated, whereas SecureStack’s value proposition is in the security layers.

After much deliberation, the winners were:

1. StudioNinja
2. RoamingDuck
3. VR Walker

Next week: The Metaphorical Glass Jaw

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