Startup Vic’s Pitch Night for Migrant and First Generation Founders

For their October pitch night event, Startup Victoria teamed up with the City of Melbourne and Victoria University to showcase migrant and first generation founders. With sponsorship and support from Stone & Chalk, Weploy, and Marketing Entourage, the panel of judges was drawn from Hatch Quarter, City of Melbourne, Victoria University and WellAware.

Pitches in the order they presented (websites embedded in the names) were:

HealTab

Describing itself as “Your Health Companion”, the founders proclaim (somewhat paradoxically) “we believe in meaningful human relationships via technology”. The idea behind this startup draws on the founder’s own personal experience of trying to find emotional, social and psychological support while undergoing a medical procedure. The team believe they have identified a marketplace solution that allows users to find comfort, support and companionship when they need help prior, during and after medical diagnosis, treatment and rehabilitation.

The founders point to the economic effect when patients are “no shows” for their appointments, and have designed a platform to help patients select health companions.
Users pay per transaction, of which Healtab take a 30% commission (based on their research of other marketplaces). It was not clear exactly how the payment, commission and disbursement of fees works, especially as companions get to set their hourly rates, which can range between $25 and $300.  Nor was it clear whether it is the patient who is paying, nor to whom. For example, I would like to have heard how this service fits in within the existing HICAPS payment system and health insurance (both Medicare and private health cover.

The founders say they are talking to health insurance providers, but given the fact that private health insurance is based on community rates, the ability to have such a wide range of user pricing within a policy may be severely limited. Moreover, since insurance policies are having to be regraded to reduce the complexity and confusion when trying to compare coverage, Healtab will have to figure out where their service will fit in terms of extras etc.

Asked by the judges as to how the platform establishes user trust and performs accurate patient/companion matching, the founders claim they are using psychometric testing, although no evidence was provided.

PT Mate

This personal training client management system includes a client app (to allow interaction with their trainer) plus a secure billing and payment system. Offering a freemium pricing model, including a 45-day free trial, the founders state that the costs are tax deductible for business users.

It’s not clear if the team have actually built an app – I have tried registering for a free trial on their website, but I cannot create an account. Overall, this pitch felt a little underdone.

One other point to note – the slide they team presented on competitor analysis was a little disingenuous, as it appeared as if none of the competitors offer any of the services PT Mate is providing. This underlines the need to present pitch information clearly, and think about screen resolution, images, diagrams, fonts and colours especially when projecting onto a large screen.

Undivide

Undivide offers an enterprise and SME solution for staff onboarding, training and compliance. Replacing existing manual and paper-based compliance systems, it claims to manage people, processes and tasks in one place.

Currently gaining traction within the transport & logistics industry, the business model is based on scale rate (per user per month) subscription plans.

The founders claim the platform is configurable, and therefore clients don’t need their own developers. It is also filling in the gaps that many ERM systems don’t provide. The client data is hosted in local data centres or on virtual servers.

It would have been interesting to know if the founders have thought about an end user application. For example an app that enabling freelances, contractors and consultants to keep their credentials up to date so that they can easily share this information from a single source prior to each hiring, contract or engagement. Equally, it would be great to know which other industry verticals Undivide might be targeting.

Passporr

According to the founders, students who want to study English abroad face high upfront costs, and an expensive and complicated procedure, with high interest rates and fees. Passporr aims to change this by offering interest free loans to study English and vocational courses abroad.

Using credit risk and fraud analysis, Passporr is able to charge a $300 flat fee per student, to process loans of between $1000 and $3000 (the average loan size). It was suggested that Passporr takes part of the commission that student agencies receive from universities and colleges for signing up students to their courses. With students expected to repay the loan in 6 fortnightly repayments, the founders claim they generate a 10%-20% return in 3 months – but it wasn’t clear what actual interest rates they are using, or the cost and source of their funding.

Passporr stated that it is currently working with three student agencies (which act as a distribution channel? or as a lead source? Again this was not very clear), and is initially focusing on servicing students who are already on-shore in Australia.

After Australia, Passporr will expand to Canada, and the UK, for on/off-shore students.

On the night, the People’s choice was Undivide (which got my personal vote), while HealTab took out the judges’ prize.

Next week: Fitting your own oxygen mask first

Startup Vic’s Impact Pitch Night

Last month’s Startup Vic’s Pitch Night focused on Impact investing. Hosted by Startup Vic and the Giant Leap Fund (part of the Impact Investment Group), it was held at the Goods Shed with support from Stone & Chalk, Weploy, Pawa, Pak360, Waste Ninja and Marketing Entourage. The MC on the night was Mike Davis of the Humans of Purpose podcast, with an opening address by The Hon, Martin Pakula, Victorian Minister of Jobs, Innovation and Trade. The Minister made some announcements regarding the establishment of Angel Networks in Victoria.Given that Impact investment is demonstrating a propensity to generate better returns, this is a topic of growing interest alongside ethical investing, corporate social responsibility and the move towards ESG (Environmental, Social and Governance) reporting.

The Judging Panel was drawn from Work180, YourGrocer, Australian Impact Investments and Impact Investment Group.

Pitches in the order they presented (websites embedded in the names) were:

The Neighbourhood Effect

With the goal of making the transition to green living easier, this startup has been featured here before. It comprises an app-based solution and uses behavioural science to map a user’s carbon footprint. It also uses gamification to make recommendations linked to location and lifestyle preferences.

Generating revenue from referral fees and subscriptions, the team are targeting energy retailers and banking services among the first commercial partners, and have already attracted $100k via paid pilots and Crowdfunding. The judges sought clarity on what exactly the product “does”, and how localised the solutions can be.

Gecko Traxx

Unusually for these regular pitch nights, this is a tangible, manufactured product – a solution for portable and affordable off-road access for wheelchair users. It takes the form of an accessory attached to the existing wheels – expanding the surface area and increasing traction. With a James Dyson national design award, and as a member of the University of Melbourne Accelerator Prgram for 2019, the team already have15 re-sellers lined up. With a proposed retail price of $599 (and costing $95 to manufacture) the device is NDIS eligible, making it more accessible.

The judges were keen to understand the addressable market as opposed to the profile and size of the actual user base – for example, does the device appeal to users of both motorised and self-propelled wheelchairs? How does it fit in with other categories of assisted mobility products and devices? Had the team considered crowdfunding? What is the startup’s status as a NFP? What is the marketing plan?

Sempo

This startup offers a solution for inclusive payments and savings for the 1.7bn people in emerging markets who remain unbanked. Using Blockchain technology, Sempo claims to be backed by a global reserve token pegged to multiple local currencies – but it wasn’t clear which assets comprise the treasury ecosystem.

Part of the use case is to get cash to victims in crisis quickly without the associated NGO costs. With 4% transaction fees (as opposed to the typical 20% incurred by other soluitons) Sempo seeks to avoid regulatory controversy since it is not claiming to be an unofficial local currency.

Typical transaction costs comprise a 1-3% exchange fee, and a 0-1% transfer fee. Part of the solution is to grow local, in-market capacity, particularly for remittance services. With an AfterPay investor on board, the founders are seeking a $2m seed round. The initial focus is on the Pacific region, a major impediment are the compliance and regulatory costs – in meeting both the in-country and original jurisdiction obligations.

One use case is giving refugee access to bank accounts – when asked about KYC obligations, the founders responded that they can code KYC into the Blockchain without the need for “formal” KYC.

Bring Me Home

This startup makes surplus food accessible and affordable to everyone – utilising fresh food that is unsold in shops, cafes and restaurants. According to the founders, globally, one third of all food is wasted – if this represented a country, it would rank 3rd after the US and China in terms of carbon emissions.

Structured around a commission-based app, users become advocates. The market segments are B2C (consumers and SMEs) and B2B (food production, manufacturing and wholesale distribution). Seeking a $1m seed round, the founders are also running a crowdfunding campaign.

There are specific versions of the app for vendors to help them manage their inventory and schedule their daily listings in advance. Peak demand is between 2pm and 6pm, and after 8pm – underlining the need for vendors to get their offers uploaded in a timely fashion.

The app is starting to see some significant retention – of the 12,000 users, 75% are in Victoria, with half in Melbourne. 15% are deemed returning customers, of which 45% represent repeat business. Currently, the service is in 126 venues across Melbourne.

The judges asked how the business can ensure they are dealing with true surplus supply, and not just creating artificial demand. In response, the founders stressed that vendors need to map to their usual “full display”, rather then offering “made on demand” products.

The People’s Choice award went to Bring Me Home, while the Judges made Sempo the overall winner.

Next week: Musical Memories – Of Time and Place

Startup Vic’s Secret Pitch Night

For its August meetup event, Startup Vic presented The Secret Pitch. Designed to highlight inequality in investment decisions, it combined voice-modulation software, and was a bit like The Voice meets Blind Date. Hosted at the Victorian Innovation Hub with support from Rampersand, LaunchVic, Stone & Chalk and Weploy, the Judges were selected from Rampersand, Light Warrior Ventures, AWS, Impact Investment Group and Venture Capital Exchange. By sitting with their backs to the presenters, and having to rely on only the slides and the disguised voices, the Judges had a limited idea of the identity of the presenters.

The pitches in order they presented (websites embedded on the titles):

FRDM

Described as “your closet in the cloud”, and dedicated to “making fast fashion sustainable”, FRDM is subscription-based service for “shared” clothing – customers borrow and return each item after use. Apparently, we are  buying more clothing but using it less.  The circular model is set up to break down and recycle garments over a three year lifecycle. it’s an emerging, but competitive space – competitors include Glam Corner, Le Tote, and Unlimited. Asked about their approach to circulation and cleaning, the founders assume three “wears”  with a 30% margin per customer but admit that they are still lacking some logistics experience. The goal of having items delivered on time, in the right place and in an acceptable condition is still being developed. Firmly aimed at women aged  22-28 years old, I suggest FRDM think about a their name, as my search revealed at least two similar URLs – https://frdm.co and http://frdm.io.

Assignment Hero

I have covered this startup before. It’s positioned as a collaboration platform for tertiary students. When it comes to team project work, there appears to be a disconnect between prescribed apps (Dropbox, Facebook Groups, Evernote, Google Docs, etc.) and the activity notifications and alerts they generate – in short, too much “noise” which overwhelms the students, which gets in the way of them completing their tasks.

Offering a dashboard, the platform is natively integrated with Google Docs. Users can track individual contributions to each document (based on time spent, and using track changes). To me that system is very easy to game – what’s to stop users simply editing for the sake of boosting their rating? How does it deal with plagiarism and copyright abuse? How does the app evaluate the quality, depth or rigour of contributions? Who owns the content that is uploaded to the platform?

Claiming to be signing up 42 new users every day, with repeat users, the founders offer a B2C model – providing access to suggested solutions via on-demand student services and products, and charging a 30% commission on each sale. Student sign-up is free, but the platform can recommends products to users. There is also an SaaS offering for universities, established via paid trials. But the B2B model is a long sales cycle, with the goal being annual licensing fees. Asked how about the viability of the Google relationship, the founders explained they tried using their own document editor, but customer  preference is for Google (and Microsoft) products.

Asked about how Assignment Hero compares to other collaboration tools such as Atlassian’s JIRA, Trello, Confluence, Slack, etc. the founders suggested that these are aimed more at enterprises, and that their own UX/UI is sexier than existing education tools such as Blackboard. As with all such platforms, the key is to enable users to manage the project, not manage the project management software….

Book An Artist

This two-sided market place is designed to help clients to find or connect with an artist. According to the founders, finding the right one is hard. Instagram’s search function is not location based, and the platform is dominated by big names.

With 80 artists on board, Book An Artist charges a 10% commission, and has completed around 40 transactions with an average ticket size of $2,200. Traction has been achieved via referrals, influence programs, SEO and Google Ads. Initially focused on commissions for murals and graffiti works, the founders plan to expand into sign writing, textiles, illustrations, mosaics, installations and calligraphy. With a presence in the UK, Australia and New Zealand, the founders are seeking $500k in funding. Currently using external agencies and contractors to handle administration, the funding will largely be allocated to marketing to drive engagement.

Although the commissions appear to be at a higher price point compared to other creative market places, what prevents platforms such as  Fivr,  99Designs or Canva moving into this space? Also, how does Find An Artist handle things like copyright, IP licensing, attribution or planning permission for external works?

Aggie Global

This is a food sourcing platform, connecting small farmers to large markets. Because of current market structures and procurement processes, businesses often can’t “see” what produce is available to them locally. Based on the founders’ experience in Fiji, where the local economy ends up having to import food to feed tourists, they have run an actual in-market pilot program, but are still building the e-commerce platform.

The results of the pilot achieved a 6x increase in both farmers’ income and hotel cost savings. Tourism is the 1st or 2nd largest industry in 20/48 developing countries. Importing food to satisfy tourist demand is therefore an issue.

For farmers, the service offers a freemium model, while businesses pay a 5% transaction fee and an annual subscription. Currently researching other markets, managing the supply chAIn for quality control, provenance, organic certification etc. is critical. The MVP aims to get farmers keeping proper records via face to face training, and gaining recognition for existing farming practices.

Asked about the cost of data connectivity and access for farmers in remote locations, the founders explained that data is stored offline and uploaded periodically. They are also investigating the use of AI/ML for predictive supply and demand. They also need to manage timely delivery as well as tracking environmental and climate data.

Part of the solution lies in making sure there is appropriate produce for the market, while matching local cuisine to tourist expectations. Too often, local chefs try to emulate western menus, so they need to help develop alternatives and foster innovation.

Maybe the Startup Vic organisers were saving the best til last, as Aggie Global took out the People’s Choice and was declared the Overall Winner by the judges.

Next week: Recent Notes from Europe

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