Category Archives: Startups

6 Melbourne Graduates of Boot Camp for Start-Ups

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Another Monday night in Melbourne’s silicon laneway, another Monday night meeting of Lean Start-Up Melbourne. This month’s event, generously supported by inspire9, Kussowski Brothers, BlueChilli and Alphastation, featured 6 start-ups who have recently completed the AngelCube accelerator programme.

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In no particular order, here are Angelcube’s Class of 2013:

A couple of the presenting founders, Tablo and Coinjar, have both been mentioned previously in this blog. I’m still very impressed with the simplicity of Tablo, a self-publishing platform for ebooks, and if they can figure out a B2B or aggregation model, I think they will have a great future.

As for Coinjar, the idea is right (a trading and merchant platform for Bitcoins) but there are still too many regulatory uncertainties and other risks associated with virtual currencies. And as the good people of Hong Kong know only too well, even established voucher schemes such as cake coupons backed by real money and physical goods can have a detrimental effect on local markets…

OutTrippin is a cross between 99Designs, TripAdvisor and Airbnb – selling curated travel itineraries and booking facilities for FITs (free and independent travellers). My sense is that while there is an opportunity in this space, the trick will be to successfully match trip planners and holidaymakers. Given the initial focus on the niche honeymoon market, it will be interesting to see how much traction OutTrippin can generate in the next 12-18 months (given the long-term planning logistics of most wedding events….).

etaskr is an insourcing solution for larger companies – combining elements of Elance, Freelancer, oDesk, Yammer and LinkedIn. It aims to match employee skills (not job function or department) with specific tasks, to enable organisations to better utilise available resources to meet fluctuating workflow volumes. Based on audience questions raised on the night, etaskr may need to look at back-end solutions that facilitate intra-company cost allocation and revenue recognition – good luck with that one!

I will be the first to admit that I can’t really get my head around c8apps – a mobile gaming platform for fantasy sports. I’m probably the wrong demographic for this type of offering, so I can’t really express a view – but the fact that c8apps claim to have some significant media deals in the pipeline and are engaging with several major sporting codes probably means they are doing something right; unfortunately, I just don’t get it myself.

Finally, OziRig is bringing custom-designed professional rigging equipment to the global  film and photography industry. Essentially a component sourcing and assembly model, OziRig aims to undercut the competition on price and service – but several members of the Lean Start-Up audience wondered about the risks of copyright and design infringement.

These 6 graduates of the boot camp for start-ups are now embarking on a round of investor pitches in the USA. I wish them well and every success.

Footnote: Thanks to the sponsors for some much appreciated beer and pizza on the night. And for a couple of alternative perspectives on the evening’s events, please check out my fellow bloggers: Chris Chinchilla and Innerloop.

10 Reasons why the Lean Startup Business Model is here to stay

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Is the Lean Startup Business Model a passing fad, or the “new normal”?

Here are 10 reasons why I think the Lean Startup model is here to stay:

1. Technology – Everything’s social, mobile and cloud-based, meaning reduced establishment costs, enhanced flexibility, and easier scalability for startups.
2. Millennials – The younger generation have different work drivers, informed by their lifestyle ambitions, career aspirations and personal expectations. Startups may often meet their needs more easily than established businesses, and can therefore attract talent better-suited to their requirements.
3. Everyone is their own CEO – “The Start-Up Of You” reinforced the idea that individuals are responsible for managing their own career, that they need to take control of their career decisions, and that a career does not always follow a continuously upward trajectory. Startups can allow people to make non-linear career moves.
4. Crowdsourcing – There’s no need to be an expert in everything – startups can outsource, collaborate, and rent rather than buy.
5. Crowdfunding – It’s no longer a pre-requisite to launch an IPO or negotiate an investment bank deal. The lean startup model has been key to the development of alternative funding models.
6. The waning fortunes of “big” corporates – With a few notable exceptions, large corporations can be slow to react to new market dynamics, and can miss out on new opportunities. The lean startup model is the antithesis to many traditional corporate ecosystems.
7. The post-industrial age – Before the industrial revolution and the arrival of factories, production lines and mass manufacturing, we had cottage industries – people working independently from home, in small-scale operations, often doing outsourced, piece-rate work, or bartering their skills. Startups are fostering a new era of cottage industries, where goods and services are traded through networks and peer-referrals.
8. Lessons from the dot.com boom & bust – We are wiser (after the event). Don’t assume the technology in itself is the solution or the product; don’t burn the cash and have nothing to show for it; start small but position to grow quickly through agile processes and nimble methodologies.
9. Flexibility is the key – Adapt and survive! This is the DNA of the Lean Startup Model.
10. Experience is sometimes better than a formal qualification – People are keen to learn and acquire new skills through direct exposure to interesting projects. Startups can offer this in abundance.

Acknowledgement: I am grateful to Brad Dunn of Nazori for triggering this blog.