The opening event of the Intersekt 2021 Australian FinTech Conference was a startup pitch night, organised by FinTech Australia, hosted by YBF Ventures, and sponsored by Seed Money. The esteemed judging panel was drawn from a range of VC funds: Todd Forest (NAB Ventures), Nicole Small (Rampersand), Rohen Sood (Reinventure), Lynda Coker (SpeedSpace) and Lucinda Hankin (Grok Ventures).
The pitches in order of presentation (links are in the names):
A cloud-based share registry management platform for startups, founders and their employees. Designed to to be an exchange for unlisted securities, the platform also offers Investor Relations support and automated compliance solutions. Using Distributed Ledger Technology (which underpins Blockchain), the team are working with ASX DLT Solutions (responsible for the CHESS replacement) and deploying DAML, the programming language for modelling digital assets. They have also developed ASICLink, to automate company filings with the corporate regulator, plan to support corporate actions (including the verification of company financials), and are working with equity crowdfunding platforms. Boulevard has already on-boarded 30 companies, comprising 4,000 shareholders.
Describing itself as “Performance based finance”, this is essentially a merchant service offering cash-flow funding solutions for physical goods. This involves purchasing client inventory, and getting repaid on the sales performance. Using a funding ratio calculation as the basis of its credit risk model, the COGSflow will track sales data from the likes of eBay and Amazon (although both of these platforms, like PayPal, Alibaba etc. already offer SME financing of various forms). COGSflow will also analyze variable marketing and customer acquisition costs as inputs to its lending model, and plans to become a member of the Personal Property Securities Register (PPSR), as well as seeking B Corp certification.
Archa is solving the challenges many SMEs face when trying to access corporate credit cards – banks generally demand personal guarantees from owners or directors before they issue cards, and when they do the “product is awful”. As the pitch described it, many bank-issued corporate cards are really designed as “a line of credit to acquire air miles”. With a mobile app already in the market, Archa incorporates an administration and expense management solution. A major bug bear for many companies is managing corporate subscriptions – all those SaaS apps that are tied to individual employee cards; consolidating, renewing and cancelling those services can be time-consuming and painful. The account administrator can also manage each card’s credit limit. Archa itself has principal issuer membership with MasterCard. In addition to an equity raise, the team is seeking debt funding to offer lines of credit. Channels to market will include SME lenders, accountants and lawyers.
According to the founders, most people paying too much on their mortgages – based on their home loan rate. Because mortgage brokers have 60% of the market, and rely on trailing commissions, there is little incentive for brokers to help their clients find a better rate or provider. However, 15% of brokers’ clients are leaving each year. Sherlok is an SaaS platform that uses AI to help brokers reprice and refinance their existing mortgage book. Using a broker subscription model, Sherlok is aiming to offer “single click refinancing”, although there was some equivocation about becoming a virtual brokerage itself. The founders feel that mortgage broking is still a relationship based business, and requires a human touch.
Axichain is building a blockchain-based agricultural supply chain – a digital trading solution for cross-border commodities trading, with an initial focus on red meat. The founders are addressing three main supply chain pain points – market access, paperwork and payment.
Axichain combines smart contracts, an escrow solution and traceability linked to legal processes. Overall, the platform envisages multiple products and revenue streams. The team are seeking both equity and debt funding, the latter to provide lines of credit lines.
The meaning of “Parpera” is “fair wallet”. By that, the founders mean they want to offer a range of banking and related services aimed at SME owners, sole traders and freelances. This could include business registration and set-up, better financial insights, and access to smarter banking products etc. It will include card services, payments and invoicing. The plan is to target customers who are about to set up a business, and to promote the service at the start/end of the financial year, hence the intention to use accountants as a channel to market.
Next week: Monash University Virtual Demo Day