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

 

A few rules on pitching

As regular readers will be aware, I have watched a lot of startup pitches over the past 4 years: the good, the bad, and the plain ugly. Having experienced rather too many of the latter in recent weeks (the names have been withheld to protect the guilty…) I started jotting down a few practical rules on managing the technical logistics of your pitch.

Source: Scientific American, via Wikimedia

The art of pitching (Source: Scientific American, via Wikimedia)

Rule #1 Check Your Tech

That’s everything from the computer drive/USB to the projector and screen, from the mic to the PA, and all cables and connections in between. As in most things, the last mile in the delivery chain can seriously let you down. Plus, simply knowing how to hold and use a mic would be a bonus!

Rule #2 No Videos

Yes, I know videos can be “cool”, but in a pitch setting they end up being a distraction, and I feel that the use of videos can be a cop-out – like you couldn’t be bothered to prepare a proper deck. (Remember those lazy teachers at school who would prefer to show some ancient “educational film” rather than actually teach their subject?)

Plus, embedded web links and the myriad of different formats and hardware compatibility mean videos are notoriously prone to fail. Leave them out.

(As regards the use of live demos or live website connections, this really depends on the nature of the pitch event, and how reliable the technology is. While I have seen some great examples of live app demos, equally, I’ve seen otherwise good pitches derailed by slow internet connections…..)

Rule #3 Check Fonts, Colours, Slide Transition & Automation

As with video compatibility, different slide formats will likely render differently from device to device, from projector to projector. My suggestion is to create your deck with one of the most commonly-used software formats (i.e., not necessarily the latest open source graphics package that no-one else has heard of…), use universal fonts and colours wherever possible, and keep slide transition and animation simple.

Rule #4 Block audio interference over the PA

One recent pitch event I attended was beset with tech problems, including noise from another source that cut into the PA. This was not the fault of the teams pitching, but their presentations suffered as a result. Some simple planning, like making sure the PA is a closed loop or that wireless equipment isn’t on an open channel.

Rule #5 Clickers

Anything that keeps the tech “invisible” is a bonus, and a remote clicker can really make a difference for presenters who don’t have to stand behind/near a laptop or steer via a mouse. But, like all the other bits of tech, not all clickers are equal, and so a bit of familiarization is in order. And used poorly, they can become a distraction, or worse, a prop that becomes like a crutch. Again, it’s about the last mile of delivery, and making sure the tech has been tested in advance.

Rule #6 Know Your Audience

This might seem obvious, but as well as understanding the event format (and any competition rules if applicable), find out who you will be pitching to: is it an audience of fellow startup founders, or investors, or potential customers? What might be the general level of awareness for your industry, product or business model? Who are the judges? Who do you need to impress most? What would be the most important contact you could make as a result of your pitch?

Rule #7 Make The Organisers Accountable for the Tech

In all of this, there is a huge responsibility placed on hosts, venues and tech support at startup events to make sure the technology is there to help, not hinder, the pitch presentations. While organisers can’t necessarily determine the quality of the content, or the presenters’ performance, they can make sure each pitch is competing on a equal tech basis.

Ideally, presenters should all be using the same PC or device, to reduce changeover time and equipment errors. Even better if the decks can be loaded in advance, and each presenter is given time for an AV check beforehand. I also recommend event hosts and venues consider using monitor screens placed in front of the presenters, so they don’t have to keep looking over their shoulders at the big screen – this is especially helpful in large audience settings.

Finally, if the format requires more than one person at a time to be speaking, please make sure they each have a separate microphone……

Next week: The Maker Culture

Final Startup Vic Pitch Night of 2016

There was something of a festive mood in the room for Startup Vic‘s final pitch night of 2016, hosted at inspire9. It certainly had an end of term feel, as a number of the long-term Startup Vic team members said their farewells before moving on to new ventures. So it will be interesting to see how these monthly events continue to evolve in 2017.

screen-shot-2016-12-10-at-4-01-47-pmContinuing the theme of recent pitch nights, diversity was the key – this month’s startup hopefuls came from the energy, AI, environmental and consumer sectors. As usual, I will comment on each pitch in the order that they presented:

BioFuel Innovations

With the simple aim of turning waste into fuel, BioFuel Innovations uses an enzyme, as opposed to a more caustic chemical catalyst, to convert used cooking oil from restaurant kitchens into biodiesel. Given this greener and more sustainable process, the company can use lower quality feedstock, consume less energy and reduce the amount of waste water.

Having built a pilot plant in Dandenong, the founders are currently developing a containerised “turnkey solution” comprising a pilot micro-refinery, which can be financed by 3rd party lenders (a bit like some solar energy schemes). However, they are seeking funding to gain access to a startup accelerator program.

With a number of existing service providers that collect used cooking oil from restaurants and food processing plants, BioFuel Innovations only plan to produce their own fuel on a small scale. Rather, their business model is to sell micro-refineries for biodiesel production.

Asked by the judges why they are focusing on biodiesel rather than other higher-yield fuels, the team pointed out that some of those products require high temperature processing, and therefore consume more energy. Also, in concentrating on this type of biodiesel production, the founders believe they are helping to solve the problem of disposing of waste oils. However, longer term, they may explore even more sustainable energy derivatives and regeneratives. And in Asia Pacific, for example, there is a need to re-process palm oil residues.

Finally, a key to their success will be streamlined manufacturing processes and logistics, such as building supply chain partnerships for the shipping containers that hold the micro-refineries.

Breathable

This is an environmental design concept that aims to use plants to replace air ventilation systems in offices and homes. Based on research from Maastricht University in the Netherlands, Breathable uses an algorithm based design solution. Taking into account the building dimensions, natural light, air flow, number of people, amount of mechanical and electrical equipment, etc., the team can design the right combination and layout of plants for each given location.

Established as a bootstrapped social enterprise, whose profits go to helping asthma sufferers and patients with respiratory complaints, Breathable is hoping to make a large and sustainable impact.

The first question from the judges was, why set up in Australia? The team explained that given certain plants are not allowed here, the underlying algorithm has to be reconfigured for native plants, by a local team.

This was a very timely comment, given the recent episode of “thunderstorm asthma” in Melbourne. However, the judges were a little concerned that while there was a clear connection between purpose and passion, they wondered whether it is more of a lifestyle business for the founders, especially as thus far, no IP has been registered or protected. (On this specific point, the team simply said, “we challenge people to do it better”.)

There is an expansion plan, to develop fully self-sustaining eco-systems – such as using plants to power lights that help generate photosynthesis. But big goals need big marketing budgets, and with an active waiting list of 20 corporate clients, the challenge for the business is in how to scale.

MagicPi

I should say upfront that based on what I had read in advance on their website, this pitch was not what I had expected. Instead of a presentation on artificial intelligence, we got a pitch about Australia’s Chinese tourism “problem”. Namely that, based on a 2016 report from Bloomberg, by 2020 Australia will host 5 million Chinese visitors a year, representing a $13bn market. (And as I know from having worked with the founders at China Digital, many tourist destinations in Australia are far from China ready.)

Using natural language AI (cognitive, cloud, machine learning – “Siri with a human touch”) MagicPi is targeting Destination Marketing Organisations (conventions, conferences, local tourism boards). They plan to create content and solutions for client websites, and then take a commission on bookings. With a presence on both WeChat (including a voice recognition bot) and AliPay, MagicPi has a long-term vision of being the “intelligent interface for everything”.

However, the judges questioned whether the solution works or even exists. They felt that there was currently no visibility for investors or consumers. Claiming to have built a demo app, the team stated that there is a lack of quality information for Chinese tourists, and people are willing to pay for premium content – and to distinguish mere “recommendations” from the visitor “reality”.

Despite adopting a deliberate enterprise solution, the judges felt that the pitch needed to stress the “why”, rather than focusing on the problem.

The Cider Link

I should mention that I first met the team from The Cider Link about a year ago, and was intrigued by their mission to build an online craft cider market that connects makers with customers. (So much so, that I connected them to local wine producer, Richard Stockman, who invited them to appear as guests on his weekly food and drink radio program.)

The Cider Link is challenging both the market duopoly for cider retailing, and the ubiquity of “commercial” cider, much of which is produced from bulk juice mixed with alcohol – rather than being fomented from freshly pressed fruit, as is the case with craft ciders.

Cider is currently enjoying 10% annual growth by volume (based on bottle shop sales alone). So, online, cider and craft are all “on trend”. The founders have built a commission-based market place, and with connections to producers who are members of industry body Cider Australia, The Cider Link is also appearing at festivals and related events.

In the Q&A with judges, the team explained that success for them would be sales of 1000 cases a month, making it a $1m business. They also plan to take the model to the UK, which has the largest cider market in the world.

In addition to attracting more customers, the founders are seeking investment to improve sales conversions and support some advertising.

Given the mix of pitches, and the range of business models and sectors, based on judging criteria and audience votes, the winner was Breathable.

Next week: End of Year Reflection

 

StartupVic’s #Pitch Night for October

The crowds are getting bigger, the list of sponsors is getting longer, there’s a new logo, and they’ve even managed to (sort of) fix the PA system. The Startup Victoria monthly pitch night is now a firm fixture on Melbourne’s Meetup calendar…

Image sourced from Startup Vic's Meetup page (Photo by Daniel)

Image sourced from Startup Vic’s Meetup page (Photo by Daniel)

As usual, there were 4 startup pitches, and I’ll comment on each in order of their presentations:

Next Address

This Ballarat-based startup has built a P2P website that offers “direct to market” property sales, removing the need for traditional estate agents. Recognising that the real estate sector is still ripe for some digital disruption, Next Address is challenging the commission-based fees and cost++ price markup on services that many estate agents charge their clients.

They have established an affiliate programme, and generated some positive media coverage, but have yet to complete any sales. Charging a fee of around $549 to vendors (there is a sliding scale), compared to similar competitors priced at between $800 and $2,000, Next Address is also offering a Facebook package.

I think it’s fair to say that this pitch did not come across as one of the strongest or most compelling presentations at these pitch nights (possibly due to some stage nerves?). There were also questions among people I spoke to about market traction, the customer acquisition model and the conversion process.

Given that there is a lot of competition within real estate listings and aggregation (often backed by major media companies), and given that many vendors still prefer to use the auction process, it was difficult to see how Next Address can cut through, unless they focus on a point of differentiation: geographic market, property type, price range, marketing support or add-on services.

However, the founders must be doing something right, as on the night they managed to attract the attention of a senior executive from a well-known real estate listings website.

DragonBill

DragonBill is an invoicing and remittance solution aimed at sole traders and micro businesses, which has featured in this blog before. The focus is on helping clients manage their cashflow and providing them with a level of financial literacy and education.

Since launching, DragonBill has found a substantial niche market among sporting clubs and associations, in large part because 50% of club members are also SME owners. They are continuing to build partnerships with accountants and are now starting to market themselves via co-working spaces.

Further ahead, there are plans to build some sort of superannuation offering, given that many SME owners and sole traders may not be making sufficient contributions to their personal funds. There are also regulatory changes in payroll administration following the roll out of SuperStream by the ATO.

The judges were interested to know what plans DragonBill has for international growth, and whether the platform can output financial and tax reporting for accounting purposes – both of which are under consideration. Meanwhile, DragonBill was recently shortlisted for an award by VISA.

Spee3d

In short, this business supports “3-D printing of metals at production speeds“. Using a proprietary “Lightspee3d” technology, the goal is to offer a low-cost, high-speed solution for full-scale production output, not just prototypes and medical devices. Primarily manufacturing in copper and aluminium 6061, current output is 100g/minute ( expecting to soon reach 250g/minute), and the maximum size is 300mm x 300mm x 300mm.

For the technically minded, the additive process is described as something like “bugs hitting a windshield”. It does not use any gasses, and deploys a “line of sight” process, meaning that some hollow objects are possible. The business has picked up a Bosch Venture Award.

Targeting products traditionally fabricated by sand casting, Spee3d is working with clients who have a preference for low-cost powders, initially within the university market, then the auto industry. They are also aiming at new products, and not parts manufactured from existing casts that have associated sunk costs. There was quite a lot of excitement around this pitch, judging by the number of questions it prompted.

Foddies

This startup is launching a fructose friendly food business, offering products, recipes and outlets (shops, cafes, catering) that can also appeal to people with other food allergies and dietary requirements. If, like me, you were unaware of the “Low FODMAP” diet,
it was researched and created in Melbourne (Monash Uni), and from my initial reading, it has some similarities with diets designed for people needing gluten-free, lactose free and low GI solutions.

Admittedly not the first to market, Foddies claims to be the first to develop a holistic solution, which includes a wholesale strategy for ready-made meals, a cafe franchise and an online store. Next, they plan to work with airlines and hospitals. Although building on their social media engagement, the biggest challenge, when asked by the judges, was the lack of public awareness or education on the Low FODMAP model.

From a personal perspective, I appreciate the importance of helping people with food allergies or intolerance to manage their condition through appropriate diet. But I can’t be alone in thinking that the higher reported incidence of these complaints may be due to multiple factors such as the increased use of chemicals in the environment (especially food production), the lower resistance in our immune systems caused by too many antibiotics, and our over-reliance on certain strains and varieties of crops. More research is called for.

So, after a very mixed bag of startup pitches, the winner was Spee3d, based on the audience and panel voting.

Next week: Richmond 3121