Antler Virtual Demo Day

As with other virtual demo days I have attended this year, it was remarkable to hear how far the teams in Antler’s Sydney Cohort #3 had progressed in light of the current pandemic and associated lock-down restrictions.

Each participating team was categorised into an industry sector:

Consumer Tech

Remote Social is designed to connect remote and hybrid teams. The ethos is that with the shift in working patterns (heightened by the current pandemic) corporate culture and organisational engagement are “at risk”. The solution aims to foster socialisation and build culture through curated games and activities. Claiming to have generated over 200 organic signups, including team members at big tech brands, the founders are adopting a “bottom, land and expand” customer acquisition strategy. In addition to a seat-based subscription model, the platform will also offer a revenue share for marketplace providers.

Coder One claims to be “the home for AI sports”. The team describe their project as an API platform for AI games, with unique combination of AI and e-sports. The goal is to make AI and programming more accessible via an AI Sports League, where bots compete, programmed by developers. With more than 250 registrations for an upcoming competition, the team are also looking to secure sponsorship deals. The commercial model has three components: free access to programs for developers, individual subscription fees to access games/tournaments, and corporate fees to access talent for potential recruitment.

Feather is an online platform which enables instructors and creators to deliver and monetise their digital services. According to the founders, existing tools are not fit for purpose, complex or clunky. Initially targeting yoga teachers, the solution will sell tiered subscriptions, plus take a small revenue share. The team also see themselves as part of the “creator economy”, but I was confused by the name – is it a deliberate attempt to suggest a link to Dumbo Feather magazine? Plus, there was some feedback that the platform may be vulnerable once tools like Zoom start putting up more pay walls.

Tactiq is a tool to “capture valuable insights from remote meetings”. The founders claim it can be used with any conferencing software, and is platform agnostic (although currently limited to a Google Meet via a Chrome Extension). The product, essentially “speech to text plus”, also generates AI assisted summaries, and the team has attracted over 100,000 users from around 4,500 organisations. Pricing is $9 per user per month, plus $20 per month to access team functionality. While the team appears to know and understand their target users, they were questioned about privacy and security issues. Although the transcription content is not stored on the platform, my experience of other similar tools is that once they are integrated, they have a tendency to “take over” and insert themselves, unprompted, into e-mail and calendar applications – “you seem to have a meeting now – would you like me to record it?”

SaaS

Upflowy wants to help B2B companies improve their customer conversion rates. Intended to be a “no-code” sign-up engine, the team explained that from their experience, in-house developers tend to focus on product features, rather than improving the sign-up experience. Typically, in-house sign-up optimisation is slow, expensive or totally non-existent – the key issues being scaleability and reliability. Essentially a form builder, the solution enables A/B testing, and claims to deliver a 40% improvement in conversion rates (compared to 17% improvement achieved with other optimization tools).

Flow of Work Co is positioning itself as the “Future of Work SaaS”. With a mission to help companies to retain the best people, it is HR tech using AI in the form of a smart matching engine to identify in-house talent, based on proprietary ontology. It also helps employees to find development resources, as well as to match projects with in-house talent. According to the founders, talented staff leave because they are bored or lack career development. With an initial focus on software companies, the team then plans to tackle the financial services sector. The team was asked about integration with existing HR tech stacks, and how they ensure objective assessment of competing project candidates – but it wasn’t so clear how they achieve either.

Portant is an end-to-end project reporting tool, designed to be a “consolidated single source of truth”. Asked why existing project management tools don’t work, the founders identified a number of factors: teams are using different tools, the process is often repetitive and/or highly manual, or project tracking typically relies on data from different sources. The team have launched an MVP on Google Workspace Marketplace, and will soon launch on Microsoft AppSource (and appears to use AWS Comprehend as the analytical tool?). There is an SaaS pricing model, and content privacy is ensured via end-to-end encryption plus the use of private keys.

StackGo helps clients achieve stronger B2B sales via SaaS marketplaces, rather than relying on direct sales. However, the initial setup costs and effort required to connect to existing SaaS marketplaces can be daunting. With an approach based on “build once, deploy many”, StackGo enables users to connect to multiple SaaS marketplaces via a single solution. However, the team, did not explain what the setup costs are for StackGo nor were they very specific about the price range or typical sales value their clients achieve – “free to hundreds of dollars per month”.

EdTech

GradVantage wants to reduce the cost of getting graduates job ready, and reckons it can save employers $30k per new hire. Offering a personalised learning experience for each user, the founders have adopted a “Slack” model – team first, then enterprise sale. Acknowledging that the EdTech sector is crowded, the team think their point of differentiation is the fact that they are a career-entry solution, and not in the K-12 market. The focus is on tech talent and SaaS vendors. Employers pay per learner, and the platform saves time and reduces on-boarding costs. Typically, 30% of program content is about tech applications, and 70% on how to use the tech. A more fundamental issue is the huge gap between university courses and actual job requirements.

HealthTech

eQALY is an integrated tech platform that enables the elderly to achieve a higher quality of life in their own home, by predicting their individual needs in advance, and identifying the right Home Care Package funding (which can be worth up to $26k). Using 360 degree data inputs, a risk model, and a proactive care plan, the product takes into account client needs as well as family concerns, plus financial considerations. Although the aged care industry is regarded as being slow to adopt new technology, the founders plan to focus on aged care organisations, who will then distribute predictive data and analytics to care providers and managers. The platform is tech agnostic but IoT devices, AI tools and virtual assistants can be integrated, plus new voice analysis technology is emerging that can monitor client well-being, and
all of the activity monitoring tech is passive. meaning the end user does not have to worry about learning new applications.

Retail and E-Commerce

The One Two is a very specific, and very targeted, D2C solution offering a hyperpersonalised service for fitting and buying bras. According to the founders, current customer experience suffers from ill-fitting products, poor product design, bad materials, and inadequate size configurations. As a result, customers feel overwhelmed and give up. The basic product IP has been tested, along with an on-line measuring and fitting tool, combining to provide better customer diagnosis and product tips. The team have already secured a startup partnership with a global lingerie manufacturer and distributor.

m8buy did not make much sense to me. Maybe I’m the wring demographic, but why would anyone want to “shop online with [their] friends”? Describing itself as “a social layer on any e-commerce store”, it feels like this is aimed at the “buy now, pay later” audience.
According to the founders, merchants will only pay a commission (“low single digit %”?) on successful sales. But it’s not clear whether this is a group buying service, a discount marketplace, or a loyalty programme, nor how it will be differentiated within the Shopify marketplace.

PropTech

Sync Technologies is a digital solution for construction industry – with the tag line of “turning data into insights”. The problem being addressed can be summarised as follows: 1) Building
sites are fragmented and complex 2) Progress reporting and bottleneck identification is poorly done 3) 12% of a typical job has to be reworked 4) 80% of projects are late and/or run over budget. Using a digital twin concept, the solution aims to provide a “single source of truth”, and the team are already working with some key firms, and have 2021 forecast revenue of $2m.
Key obstacles to overcome are entrenched on-site behaviours, and slow the tech adoption across so many stakeholders in the construction industry. The founders claim to have identified the solution via their Construction Assistance System which offers better project and status visualisation via the digital twin.

Next week: Version / Aversion

Sola.io – changing the way renewable energy is financed

Late last year, I had the privilege to be one of the judges for the PitchX competition for start-ups. The overall winner was Sola, a new investment platform to fund solar power using a virtual power plant structure to bring together investors and producers, who might not otherwise have access to the financial and production benefits of this renewable energy resource.

I had the opportunity to catch up with Alan Hunter, Founding Team member of Sola while he was in Melbourne earlier this month. He was busy in the middle of a series of investor meetings and finalising arrangements for their energy retailing licensing.

Prior to Sola, Alan had established a fleet company that leased cars to Uber drivers. Recognising that some immigrants lacked relevant qualifications for advertised jobs, but lacked the finance to buy a car, the business joined the dots and enabled many people with a driver’s license to secure employment. It told him a lot about about helping those less fortunate by building a business designed to remove inequalities and lower barriers to entry.

With that experience, an interest in renewable energy, and a desire to help consumers reduce their power bills Sola was launched. Starting out as CEC-approved Solar Retailer, Sola offers consumers a subscription service to electricity (at a cheaper rate than users pay today).

Sola is now planning to offer the same subscription service with a solar system, for a cheaper monthly payment. It is able to achieve this though the development of an innovative investment and infrastructure platform, that will serve three main types of clients:

1. Home-owners who want to install solar energy, reduce their own power bills, and even generate additional benefits as rebates or credits from feed-in tariffs

2. Retail investors, who may not have access to solar energy (renters, apartment residents, or those in dwellings ill-placed for panels)

3. Wholesale investors and self-managed superannuation funds looking for an alternative fixed income asset

In short, Sola underwrites the cost of panel installation on consumers’ homes. In return, Sola acquires 100% of the energy generated, and the customer subscribes to Sola for their monthly usage. Consumers become subscription members of Sola’s network, via the latter’s retailer license.

For retail investors, Sola will present them with an opportunity to access fractional ownership of a virtual power plant, for as little as $100. These investors then receive a dividend from the energy sales generated by the network.

For wholesale investors, and for a larger stake, they will be part of a closed end capped fund, which will generate a dividend from the energy sales. Sola has an energy off-take entitlement over the panels, and over time, panels which are replaced may still be sold into secondary markets, such as in developing countries, if they have a remaining useful life.

Some of the benefits of this structure include a more equitable arrangement for access to, ownership, and distribution of solar energy assets. It also removes the need for unsecured lending to finance panels and systems which may soon become obsolete. Plus, it enables people who might not have direct access to solar panels to benefit from this asset.

The complex issue of Federal and State rebates came up in our discussion. According to Alan, the former are useful in supporting the roll-out of Sola’s virtual power plant model, and in accessing the carbon credit marketplace via the Small-scale Technology Certificates (STC). Whereas, State rebates are better for end-users, who can engage Sola direct to install their panels, and then join the Sola retail network.

Then there is the issue of inverters, and batteries. It’s generally the former that are rendered obsolete before the panels, but the costs mean that customers tend to end up replacing the whole system. And the latter will not become economic until purchase costs reduce, and feed-in tariffs are phased out.

Finally, Alan wanted to make sure he got this point across – Sola will shortly be launching campaigns in seven locations, to sign-up 180-230 homes, in areas impacted by bush fires. The aim is to give participants a 35-40% saving on their energy bills, as well as establishing the first phase of the virtual power plant network.

Next week: Australia’s Blockchain Roadmap

 

 

 

 

 

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