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

 

 

 

Gaming/VR/AR pitch night at Startup Victoria

Building on the successful format that has been the mainstay of Startup Vic‘s regular meetups for the past few years, February’s pitch night kicked off a scheduled programme of thematic events for 2017. First up was Gaming, VR and AR.

Photo by Daniel C, sourced from the Startup Victoria Meetup page

Hosted as usual by inspire9, the event drew a packed crowd, no doubt helped by the impressive panel of judges assembled by the organisers:

Dr Anna Newberry, responsible for driver-assistance technologies at Ford Australia; Stefani Adams, Innovation Partner at the Australia Post Accelerator; Tim Ruse, CEO of Zero Latency; Rupert Deans, Founder and CEO of Plattar; Samantha Hurley, Co-Founder and Director of Marketing Entourage; Gerry Sakkas, CEO of PlaySide Studios; and Joe Barber, a Commercialisation Advisor to the Department of Industry and Science, a Mentor at the Melbourne Accelerator Program (MAP), and angel investor.

Maintaining the tradition of this blog, I will comment on each startup pitch in the order in which they presented.

Metavents

This niche business offers an event planning app for festivals. At its heart is a tool that allows users to build a 3-D simulation of proposed events, combined with an AI capability to simulate risk management, logistics and team communications, plus a digital time capsule where event attendees can upload photos and other content.

Once licensed to event planners and organisers, the platform charges clients $1 per ticket sale, plus a 2.5% fee on donations and fees for other content and services such as the digital time capsule. In addition, Metavents is building strategic partnerships, and announced a relationship with the Vihara Foundation and its Rock Against Poverty programme from 2018.

All good so far. Then, things got a bit confusing. For example, in addition to festival and event logistics, Metavents claims to offer humanitarian support services in response to natural disasters, and emergency management capabilities for smart cities. There was also talk of a global network (linked to the UN?), and an impact investment fund.

I’m sure I wasn’t alone in thinking that the pitch was a bit disjointed and suffered from a lack of focus. But the pitch did reveal something of the founders’ core passion, and incorporated some impressive graphics – it just felt like a case of form over substance.

Second Sight

Second Sight is a game analytics service that “unlocks the secrets in player data”, by enriching existing big data sources with social media interactions. It does this by profiling players based on their behaviours, and providing this feedback and insights to game developers and product managers. Focusing on the mobile game market, Second Sight is initially targeting independent developers, and will then move on to corporate game businesses.

Second Sight’s own development path is to build automation tools first, then create a library of tasks and insights. With an estimated 1 million users (based on game statistics), 3 paying clients and another 27 beta clients, this startup is showing some promising market traction. However, there are a number of established competitors, including Omniata (which is more of a general user analytics engine, like Mixpanel or Flurry), GameAnalytics, deltaDNA and Xsolla, some of which offer free user services.

In response to the “ask”, ($500k in seed funding in return for 20% equity), the judges suggested that Second Sight might want to address the needs of a specific game sector.

Dark Shadow Studio

This presentation featured an application called Drone Legion, that merges drone experience with VR. Part simulation game, part training software, it was nice to see a demo of the app running in the background, without detracting from the pitch itself.

A key point made by the presentation is that the Civil Aviation Safety Authority (CASA), which is responsible for regulating drones in Australia, is in danger of falling behind other countries. For example, Drone Legion could be adapted to provide user training, testing and licensing before a customer buys a physical drone.

Although there are drone simulators available via Steam, they are not aimed at the general public. Drone Legion is also compatible with a range of gaming consoles.

The judges suggested that this pitch was more an individual game, rather than a business, so it was suggested that the founders should try to get funding from HTC or Oculus to build their first game. And given that one of the judges works for Australia Post (ostensibly a logistics company with a growing interest in drone technology….), there was the offer of a personal introduction.

Phoria

Phoria describes itself as an “immersive media business”, offering rapid 3-D visualisation (especially for the property development sector and the built environment),  and other services such as digital preservation.

But tonight, the pitch was about a plan to use “VR for social good”. Under the moniker “Dreamed”, Phoria is developing a niche health care solution, designing “patient experiences” to help them get out of their current care or treatment environment.

Predicated on an immersive therapy platform, Dreamed will offer a distribution service for cloud-based content, designed to be used alongside other, related assisted therapies that feature Animals, Nature and Music as stimulants for patient engagement and therapeutic outcomes. While not exactly a MedTech solution, Phoria’s “IP special sauce” is the use of VR as a constant dynamic feedback loop, which presumably learns from and adapts to user interaction and monitoring of appropriate patient diagnostics.

So, who pays for the service? Hopefully, hospitals will, especially if they can demonstrate reduced therapy costs and patient treatment times. (Maybe there will also be a consumer market alongside existing meditation apps?) But with some early-stage and potentially high-profile research underway via the Murdoch Childrens Research Institute, Phoria and Dreamed look to be making steady progress, notwithstanding the normally slow pace of medical research. Key to the research outcomes will be user acceptance and ease of service and content delivery, although a large number of unknowns remain in the context of the medical benefits. Meanwhile, Phoria continues to serve its core property market.

Finally, something which I found somewhat surprising, according to the presentation, there is no VR content licensing model currently available. Sounds like a job for a decentralized digital asset management and licensing registry (such as MyBit?).

On the night, and based on the judges’ votes, Phoria took out first place honours.

Next week: The Future of Work = Creativity + Autonomy

 

101 #Startup Pitches – What have we learned?

During the past 3 years of writing this blog, I have probably heard more than 100 startup founders pitch, present or share their insights. Most of these pitch nights have been hosted by Startup Victoria, with a few on the side run by the Melbourne FinTech Meetup and elsewhere.

Image sourced from Startup Victoria Meetup

Image sourced from Startup Victoria Meetup

Based on all these presentations, I have collated a simple directory of each startup or pitch event I have covered or mentioned in this blog, as well as a few key accelerators and crowdfunding platforms.

What have we learned over that time?

First, apart from the constant stream of new startups pitching each month, it’s been impressive to witness the Melbourne startup community collaborate and support one another.

Second, some of the international founders who have spoken are among the rock stars of startups – and we are fortunate that they have been willing to spend time in Melbourne.

Third, a number of the local startups who have pitched during this time have become well-established and well-known businesses in their own right.

This all means that besides creating great products and services, and being willing to share their experiences, the founders have helped aspiring founders and entrepreneurs to appreciate the importance of:

  • product-market fit;
  • working with agile processes and lean startup models;
  • tackling prototyping and launching MVPs;
  • learning what to measure via key metrics;
  • figuring out funding; and
  • knowing when to pivot or fold.

Looking at the cross section of pitch nights, panel discussions and guest speakers, there are some significant trends and notable startups to have emerged:

Industry focus: Not surprisingly, the pitches are heavily biased towards FinTech, MedTech, Education, Digital Media, Enterprise Services and Consumer Services. There are a some key startups focused on devices (e.g., SwatchMate and LIFX); a smattering in recruitment, fashion, gaming, health and well-being, property services, social media and even logistics. But there are surprisingly few in environmental technology or services.

Business models: Two-sided market places abound, as do customer aggregators, sharing platforms (“the Uber for X”, or “the AirbnB of Y”), freemium apps and subscription services (as opposed to purely transactional businesses). There are also some great social enterprise startups, but surprisingly no co-operative models (apart from THINC).

Emerging stars:  Looking through the directory of startups, some of the star names to have come through during this time, based on their public profile, funding success, awards (and ubiquity at startup events….) include:

CoinJar, LIFX, Tablo, SwatchMate, etaskr, DragonBill, Culture Amp, Eyenaemia, Timelio, Moula, nuraloop,  Konnective, OutTrippin and SweetHawk.

Acknowledgments: Some of the startups and pitches in the list are just ideas, some don’t even have a website, and some didn’t get any further than a landing page. However, I have not been able to include all the startups that turned up at Startup Alley, nor the many more startup founders I have met through these events (but whom I didn’t get to see pitch or present), nor the startup ideas that were hatched during the hackathons I have participated in. And there are a few startups that I could not include because I heard them pitch at closed investor events. Finally, I am and have been very fortunate to work with a number of the startups listed, in various capacities: Brave New Coin, Ebla, Re-Imagi, Slow School of Business and Timelio. To these startups and their founders, I am extremely grateful for the opportunities they have given me.

Next week: Putting a Price on Value

 

The latest installment of Startup Victoria #pitch night

The numbers were out in force for the August edition of Startup Victoria‘s monthly pitch night. A full house (no doubt helped by a new beverage sponsor…) heard from another batch of startup hopefuls, operating in very different sectors: medtech, recruitment, food logistics and domestic services. Despite some AV issues, this event showcased some interesting businesses, all of them demonstrating some impressive early stage traction.

In order of appearance, the night’s pitches came from:

VideoMyJob

Launched in April 2016, this online tool allows recruiters and hiring managers to film, edit and share their job ads. The business already boasts more than 60 clients (some of them very high-profile), with the data suggesting an 82% higher success rate in hiring outcomes. This performance is largely attributed to the simple fact that candidates spend up to 4 minutes watching a video ad, rather than the average 12 seconds candidates spend reading a text-based ad before they submit an application.

The tool, which runs on a mobile device, includes a tele-prompt feature, in-app editing functions, a one-step process to publish to social, plus e-mail. Customer pricing is based on a $79 monthly subscription to place unlimited video ads. One reported benefit for clients is much stronger candidate short lists.

Given the changing dynamics in the recruitment market, where companies are finding themselves competing for talent and striving to become employers of choice, any new hiring solution has the potential to be a game-changer. Which is what the founders are probably banking on as their exit strategy, with a likely trade sale to a complementary recruitment platform.

PredictBGL

This medtech startup (previously known as ManageBGL) offers an app-based solution to help diabetes patients manage, monitor and predict their blood glucose levels. Despite regular patient testing, according to the founders, 80% of the data is actually ignored.

Able to offer more “real-time” testing, the app claims to fix wrong insulin doses within 3 hours (not the usual 14 days with traditional clinic-based testing), offers more precision dosing, and predicts patient levels up to 8 hours ahead.

It also has the option to incorporate live exercise data (from wearables), and serve patients who can’t afford expensive insulin pumps. As well as paying a monthly subscription, patients are also paying for insights based on the data. With a $10 per month fee, over 80% customer retention rates, and around 600 sign-ups per month, the app is breaking into the US market.

Asked about potential risk factors and the margin for error in patient testing, the founders explained that the user results are somewhat conservative, so they are embarking on clinical trials to refine the analytics.

Jarvis

Billed as “your very own personal butler”, Jarvis is one of a number personal concierge services, catering to the time-poor, inner-city residents who want to outsource domestic chores and errands.

From $33 per week (and an average of $55), Jarvis differentiates itself by offering a more personal touch, because the business hires and trains employees, rather than using freelancers or contractors.

Launched in January 2016, Jarvis is experiencing 20% growth per week, 90% customer retention, high referral rates and generating 10-15% margins. The founders are working on their logistical efficiency – routing, grouping – and deploying scalable technology – such as cluster algorithms. Pat of the attraction for clients is the fact that Jarvis does not see itself as a transactional service like some freelance and task-based apps and platforms.

The panel of judges asked about the risk of being disintermediated (by their own employees going direct to client). Jarvis claims that their key defense is the proprietary Butler app for employees.

Pantreeco

Last up was Pantreeco, which was established in 2014, with the goal of building “productive partnerships in food” by streamlining the logistics and supply chain communications between food suppliers and buyers.

A self-styled “co-commerce” solution, Pantreeco includes a messaging tool between producers, wholesalers, distributors, restaurants, cafes, grocers and providores.

Offering a freemium SaaS model (based on a per customer per channel basis plus commission), Pantreeco is in the process of taking its model to overseas markets via some major international expansion.

Asked by the judges about the competition, such as TradeGecko and Unleashed, the founders stress that they are not simply an e-commerce or inventory management solution. Instead, Pantreeco developing a range of integration services in response to customer demand – e.g., invoicing, accounting, communications as well as inventory management with 3rd party platforms such as Xero, ZenDesk and SalesForce. They also have plans to on-board major enterprise clients in the food and beverage industry.

Based on the audience voting, Pantreeco took out the honours on the night.

Next week: When robots say “Humans do not compute…”