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

 

The new productivity tools

With every new app I download, install or have to use, I keep asking myself: “Do I feel more productive than I did before I downloaded it?” Comparing notes with a business associate the other week, I realised that the arsenal of daily tools I use continues to expand since I last blogged about this topic. At times, I feel like Charlie Chaplin in “Modern Times” trying to keep on top of this digital production line.

Image sourced from Wikimedia Commons

In particular, the number of communication tools (instant messaging and conferencing) keeps growing; document and file management continues to be a battle largely between operating systems; and most collaboration tools struggle to make the UI as seamless as it should be – so that the UX is all about the “process” for creating, updating and maintaining projects, and not the quality of outcomes.

So, as an update to my previous blog, here’s a few thoughts on recent experiences:

Meetings/Chat

Added to my regular list are Telegram, WeChat, UberConference, BlueJean and RingCentral. Meanwhile, Microsoft (Skype), Google (Hangouts) and Apple (FaceTime) all compete for our communications. (Even Amazon has its own conferencing app, Chime.) One of the biggest challenges I find is browser compatibility (when using via a desktop or laptop) – presumably because vendors want to tie you into their proprietary software eco-systems.

Project Management/Collaboration

Still looking for the perfect solution…. Products are either so hard-coded that they are inflexible, or so customisable that they can lack structure. I suspect that part of the problem is projects are still seen as linear (which makes sense from a progress and completion perspective), but we collaborate at multiple levels and tasks (with corresponding inter-dependencies), which don’t fit into a neat project timeline.

Document/File Management

I seem to spend most of my day in Google Drive (largely thanks to Gmail and Drive) and Dropbox (which continues to improve). I find Dropbox more robust than Google Drive for file management and document sharing, and it continues to expand the types of files it supports and other functionality. Whereas, with Drive, version control is a bit clunky, unless the document was first created in Google Docs.

Productivity

Overall, Google Docs is still not as good as MS Office (but does anyone use OneDrive, let alone iCloud/iWorks, for document sharing or collaboration?)

One thing I have noticed is that my use of native iOS productivity tools has dropped off completely – if anything, I am now using more MS Office iOS apps (e.g., Lens, OneNote), and some Google Docs apps for iOS. Plus the DropboxPaper iOS app.

CRM

I’m starting to use Zoho (having outgrown Streak) – and I’ve heard that there is even a Zoho plug-in that connects with LinkedIn, which I shall soon be exploring. But as with Collaboration tools, getting the right balance between rigidity and flexibility is not easy.

Next week: The first of three musical interludes….

 

Tech Talk on Crypto

There’s an adage about not investing in something you don’t understand. There’s another about not betting more than you can afford to lose. And then there’s crypto, which in the words of TV commentator, John Oliver represents “Everything you don’t understand about money combined with everything you don’t understand about computers.” So it was with great interest that I attended last week’s General Assembly’s Tech Talk on Crypto, presented by a team from Bitcoin.com.au.

This intro to crypto was actually very illuminating, as much for the audience questions as the presentation itself.

To begin with, there was an attempt to explain the underlying technology of Blockchain; which, thanks to a certain YouTube video, seemingly reduced Blockchain to a trading platform or networked database. There was also an analogy to the internet itself: first, we just had protocols like TCP/IP; then we had web browsers; next we had e-mail clients; now we have Netflix.

Next was a reference to Bitcoin‘s mining infrastructure, its associated monetary policy, and the specifics of Bitcoin’s tokenomics. And then we jumped straight to Ethereum and the development of smart contracts – with particular reference to their potential to disrupt/transform the legal profession and the insurance industry.

There was brief mention Venezuela’s “petro”, a government-issued, oil-backed cryptocurrency, as evidence of further disruption in financial markets (although the petro has raised a number of concerns in some quarters). And, in a week when revelations about Facebook and Cambridge Analytica dominated the news, the speakers talked about Blockchain applications displacing even core social media, offering more privacy and control over our personal data and content.

The first of the audience questions were about crypto valuations. “The market decides”, which prompted some comments about market volatility and speculation. There were also some comments about regulation, tax, privacy and security.

Next question: “What about hacking?” “That’s more of a problem with exchanges, than user wallets.” That lead to a brief discussion of different types of wallet, which I’m not sure everyone in the audience fully understood.

We then moved on to look at other types of coins, and specific Blockchain use cases (such as remittance services, patient healthcare records, identity, P2P solar energy trading, voting, education etc.). In particular, Golem (crypto-powered network computing), Brave (crypto-enabled web browser), Steemit (earn crypto from your content) and TenX (an everyday crypto payment solution) were projects that the presenters liked.

Finally, to underscore how little some people understand about fiat currency and traditional financial markets, one attendee, struggling to fathom how the price of Bitcoin was determined, insisted that with equity markets, “the Stock Exchange sets the price…”

Next week: Startup VIC’s Retail & E-Commerce Pitch Night

 

 

 

APAC Blockchain Conference

The 2nd APAC Blockchain Conference was held in Melbourne last week. According to the organisers, the previous event attracted about 150 people. This year, registrations were around three times as many. The Blockchain story is only just beginning, if the level of interest and the range of conference topics are anything to go by. Here are a few random observations from the two-day event.

A story is just what we got from Robert Kahn, speaking on the role he played in developing the TCP/IP protocol, and the evolution of “Digital Object Architecture” as a way to identify any type of data, regardless of the technology used to create, store or retrieve it.

From NEO founder Da Hongfei we heard about dBFT (Delegated Byzantine Fault Tolerance), and ANZ’s Nigel Dobson outlined the use of Blockchain and DLT (distributed ledger technology) to remove transaction inefficiencies in commercial property lease guarantees. Civic Ledger CEO Katrina Donaghy talked about her work on “Civic Commodities” (government-issued permits and licenses) and “Sustainable Commodities” (water trading, patent registrations).

Gingkoo CEO William Zuo and Novatti‘s Blockchain Head Peter Christo introduced their collaboration on a Blockchain-based cross-border payment platform. There was a presentation on Hcash by Andrew Wasleyewicz, which talked about the “7 H’s” of their solution. While the quirkiest (and possibly most engaging/authentic presentation of Day 1) came from ConsenSys‘s Blockchain expert Lucas Cullen, who told us “7 Reasons Why Not To Use Blockchain Technology” (compulsory listening for any hapless corporate CTO under board pressure to come up with a DLT strategy…).

In between was Data 61‘s Zhu Liming who talked about some of the wider implications and opportunities for Blockchain in his capacity as Chair of the Australian Blockchain and DLT Standardisation Committee. There were also some insights from Gilbert & Tobin‘s COO Sam Nickless on how lawyers must embrace the new technology to avoid becoming disintermediated.

A diverting interlude from economist Lord Desai suggested that “Bitcoins are not coins, and cryptocurrencies are not currencies”. Many might agree, but we already know they are a new asset class in their own right, and need to be treated as such.

Standards (both technical and regulatory) were the topic of a panel discussion comprising mainly lawyers and regulators. The remaining panels on Day 1 (representing commerce and industry) addressed key themes of Blockchain scaling, interoperability, privacy, security and commercial deployment.

Day 2 began with an interesting keynote from former ASIC Chair, Greg Medcraft, now at the OECD. Mr Medcraft is no stranger to the debate on cryptocurrencies and ICOs, but chose to focus his remarks on the benefits, risks and opportunities for Blockchain. On the plus side, Blockchain can reduce the number of intermediaries in a transaction, it provides traceability and transparency, it increases the speed of payments (and reduces the cost), it offers data security, and it provides greater access to markets (e.g., SME supply chains). He foresees fiat and asset-backed digital currencies, and government support for Blockchain solutions in areas such as identity, provenance, supply chain and AML. Plus, for consumers, there should be greater trust and security, better financial access and inclusion, lower costs and better products. Key risks remain, however, in data privacy, security (ID, authentication, cyber-attacks), and consumer and investor protection. Policy makers need to be pro-active and forward-looking, keep up to date on these rapid developments, and co-ordinate across industry, sectors and globally. Citing some of the issues associated with ICOs, Mr Medcraft then urged regulators to exchange information with their counterparts and identify best practice, avoid regulatory arbitrage, create greater legal certainty, and raise awareness of the risks and rewards.

Victor Wang from the China Wanxiang Group followed up with a presentation that re-cast Blockchain as a new economic model, drawing on his reading of “Das Kapital”, and introduced the concept of GBP (“Gross Blockchain Product”). According to this theory, Blockchain is a means to redistribute and reallocate resources and assets; it is transforming the cost of transactions and value exchange; it is creating new assets; and it is building new products and services, as well as the delivery mechanism itself.

We heard from Zuotian Luan of Fortuna Blockchain on the future of OTC derivatives, and how decentralized exchanges are addressing legacy problems of counter-party and credit risk, operational efficiency, and lack of liquidity. He sees a “decentralized margin system” as a long-term solution that will reduce the costs of posting and managing collateral on traditional OTC exchanges.

There was an interesting discussion on the future of capital markets themselves, reflecting the perspective of traditional exchanges, clearing houses and custody providers, plus tZero. (As an aside, I was pleasantly surprised to see so many representatives of the “back office” at the conference, including trust banks and share registries. However, there didn’t appear to be anyone from the brokerage or advisory side, and no-one from the ASX, even though their Blockchain project to replace/enhance CHESS has been widely lauded as being in the vanguard of this new technology.)

Finally, a quick plug for my colleague, Fran Strajnar, CEO and co-founder of Brave New Coin who moderated a panel on ICOs. I think he summarized the tone of the discussion really well, when he said this is probably the only financial services sector that is asking for regulation. “Tell us the rules and let us get on with the job.”

Next week: Tech Talk on Crypto