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

 

Startup Vic’s SportsTech Pitch Night

Last month’s Startup Vic’s Pitch Night featured SportsTech, one of the semi-regular topics in Startup Vic’s themed pitch nights. Hosted by LaunchVic at the Victorian Innovation Hub, supported by the Sports Geek podcast and Track, Victoria University’s sports partnership institute.

In a new partnership between Startup Vic and LaunchVic, upcoming pitch nights will feature EdTech, Diversity and HealthTech. Meanwhile, back to the sport. The competing pitches were (links in the names):

Benchvote

Describing itself as a Sports Fan Engagement Platform, Benchvote has a tag line of “the Canva of creating high performing digital campaigns for sport”. Covering marketing, sponsorship and commercial, the platform claims to achieve 50%+ conversion rates on campaigns, partly achieved through a gamification aspect to appeal to fans.

The platform offers campaign templates, drives social media traffic to users’ own websites,
thereby converting that traffic into firm leads. It also has the potential to support other related verticals – including entertainment, media and betting. The proprietary nature of the solution is the combination of a SaaS model plus insights algorithms.

Asked by the judges about customisation versus scaling, we were told that it is a totally white label solution. Although the platform can support agencies as well as product providers with creative content and digital assets, the preference is to let clients do their own (given the business origins as an agency turned software company).

In terms of the competitor landscape, it’s between agency solutions and software services on one hand, and integrated platforms and single solutions on the other.

Potentially integrating ticketing data, the team are also looking at international expansion, and are in the middle of a raise.

MarineVerse

This is a VR sailing platform, that claims to be “Democratising sailing by enable people to sail in VR”. A big call.

Already running a VR Regatta competition, the team is building a community of clubs, members, and daily races. There’s also a VR sailing classroom, with the MarineVerse Cup – a two-week event – to come. Competition exists in the form of Virtual Regatta, which is actually a non-VR, e-sports platform.

Offering a $10 per month subscription model, MarineVerse is banking on the new
Oculus Crest device to boost adoption. The business has been bootstrapped for three years, and is experiencing 8% monthly growth.

Targeting a demographic of 30-55 year olds who are cashed-up and time rich, the team are also developing multiplayer races. The judges asked if there was potential to support high-performance training and use player data for predictive performance or behaviour.

Unite

A platform for sports club and team administration, Unite developed by Eastwood sports tech offers apps such as training calendars, fixtures management, media engagements, sponsor obligations and travel planning. Designed to help manage “Commitments to the team and individual level”, Unite offers a B2B subscription module (individual team players are the actual users) for professional, semi-professional, e-sport and collegiate teams.

Although TeamWorks is a major competitor, in fact there is much more competition at the grass-roots level, because peak bodies and administrators want to own the data. Currently at the working prototype stage, with an MVP. The service is designed to manage and approve player activities and such as media commitments, sponsorship and endorsements. It is built as a hosted SaaS using AWS security features, sitting behind the  club’s own fire wall.

Wedge Pro

As the name suggests, this device is all about “The Art of Wedge Play”, designed to reduce player handicap, and help with short game training, especially lifted wedge shots. According to the pitch, many amateur players suffer from poor technique, poor distance control, and lack confidence.

Apparently, there is a $2 billion global market for golf accessories, such as this physical attachment which launches a monitor linked to an app.

A 2017 winner at the La Trobe Accelerator Program, the team is looking for an app developer for data capture. While offering post-sales service and device re-calibration (for adjustments according to player height, the cord length matrix and player handicap), judges wondered if there was also the opportunity for VR applications as well as the kinaesthetic experience. Asked about distribution, the team mentioned getting the product into golf shops and pro shops (without providing any specifics), while building a brand for a suite of golf tech products.

After all the cotes were counted, the People’s Choice was Unite while MarineVerse was the Judge’s favourite.

Next week: FinTech Fund Raising

Pitch X

Organised by Academy Xi in conjunction with Melbourne Silicon Beach, the latest edition of Pitch X was hosted at YBF Ventures last week. The event sponsorship, prizes and judging panel came from Everest Engineering, Luna, Shiftiez, Lander & Rogers, LaunchLink and YBF Ventures itself.

Image sourced from Pitch X Eventbrite page

Each each start-up was given 90 seconds to pitch, followed by a one-minute Q&A with the judges. The best three presentations were then shortlisted and invited back on stage to make a 5-minute pitch, followed by a 2 minute Q&A.

Some of the pitches were really only ideas, a few had reached MVP status, and a couple were in advanced beta with actual customers. And most of the projects still at the drawing board lacked key tech skills and resources to execute on their ideas. So there was a bit of an imbalance across the initial presentations. It’s not for nothing that most successful hackathon teams comprise a hacker, a hipster and a hustler…

In order of presentation the pitches were (website links where available are embedded in the startup names):

Backyarda – “the spontaneous experience curator”, promoting unsold event inventory via Facebook Messenger. Needs a co-founder and development skills as well as seed funding. Takes a 30% sales commission, and is at MVP stage, targeting 18-35 year olds.

Virtual Amputee Experience – providing training to prosthetic users and raising empathy and public awareness. Positioned as a research tool and data acquisition model. Seeking funding for software and hardware development. It’s a spin-off from an academic research project. Judges asked about the revenue modelling and the data privacy issues.

Betabot – by Beta Launch – “Empowering teammates, Supercharging augmented teams”. Designed as a Slack plug-in. The solution is in fact a time-zone calendar management tool. (But as the MC noted, it’s also the name of a computer virus…)

The Neighbourhood Effect – “your local green living guide”. Making it easier (and financially positive) to be green. Employs gamification and behavioral science, for example a User Questionnaire model. Free version plus white label solution for local governments, and product providers. IP resides in the data mapping. Has had success in ACT via a rapid local campaign model.

The Good Bite – “providing financial independence to women who are suffering domestic violence”. A social enterprise for corporate catering, offering training and employment opportunities.

Young Adult Grief Space – “online counselling service”. Based on a P2P experience via shared narratives. Very much an idea at this stage, judges asked how sessions would be moderated, and how professional counsellors would be involved.

Pearlii – “dental checkups via selfie”. Aimed at early detection and prevention.
Uses a smart phone app to take 5 photos, then applies a diagnostic algorithm via ML and image processing. Freemium model – a basic account plus a premium profile management solution. Building their own tech/IP from scratch, and see future applications in tele-medicine, removing reliance on experts, placing trust in AI, image processing and analysis.

Inside Outcomes – “better communications between psychologists and their patients between sessions”. An app to chart personal outcomes etc. Judges asked how it integrates with existing patient management systems? Currently much of the work is done manually.

Abadog – “behavioural advice for dog owners”. Consultation via observed data and individual report delivered online. 20% of dogs have anxiety disorder. There is a lack of certification or legislated standards for best practice for dog trainers and behaviouralists. Aiming for a subscription model.

The Social Agenda – “Efficacy and Integrity in Government”. Talked about three different modules for public policy design, deliberation and decision-making. Goal is “Policy Certainty”. Wasn’t clear what the actual project involves, so hard to evaluate the concept.

Winners were:

1st prize –  Neighbourhood Effect

2nd prize – Pearlii

3rd prize – Abadog

Next week – Startup Vic’s SportsTech Pitch Night

Startup Vic’s FinTech Pitch Night

This month’s Startup VIC pitch night on FinTech was a curtain raiser for the annual Intersekt conference. Sponsored by Square and FinTech Australia, it was hosted at the Victorian Innovation Hub, and MC’d by Finch’s Shahirah Gardner and Melissa Mack, Head of Community at MoneyPlace and a Director of FinTech Australia.

As usual, the startups are mentioned here in the order they pitched:

i=Change

i=Change allows retailers and brands to “give back” to the causes their customers care about. Offering a “plug’n’play” solution for their clients, i=Change claims to have 60 brands on board already. It’s fair to say the target audience is fashion-conscience women, with an emphasis on charities, campaigns and causes that are primarily supporting the lives of women and children. Which is all good. But would it be churlish to suggest that many of the brands and products (and their associated imagery) might not be accessible to women in many of the countries where these projects operate? So, there is a potential disconnect between products and causes….

Nevertheless, as well as the feel-good factor for consumers, i=Change also claims to be reducing the retailers’ problem of abandoned online shopping carts, as the prospect of being able to donate to one of the selected causes leads to greater sales conversion and completion.

i=Change applies a fixed transaction fee on top of the customer donation, with a 30% tax rebate available to participating brands. After 5 years, i=Change is generating $8k per month in transaction fees, and is currently seeking a capital raise of $1m.

The judges were keen to understand the level of transparency under which i=Change operates, and whether in-store options are available (not just on-line retail).

For me, I can’t help thinking that this is an attempt to salve the conscience of certain parts of the fashion industry. I would also be interested to understand how much screening there is of both retailers and causes, against CSR measures or other relevant criteria.

Lucidity

Under the product brands of tradeDOX and xpertDOX, Lucidity is digitizing trade finance operations, particularly for import/export commodities transactions.

Offering a pay-per-transaction model, a subscription service, or a custom solution, Lucidity is still pre-revenue, having raised $50k in seed funding. Claiming to be streamlining and automating much of the paper document and manual processes still in use in much of the trade finance industry, it was not clear what technology they are using, nor the average transaction size they are processing. I also couldn’t help thinking that Blockchain solutions for supply chain, logistics and export/import financing will likely render Lucidity redundant.

CoinBot

CoinBot is an algo trading solution for cryptocurrencies that tokenizes individual trading strategies designed by the platform users, and fuelled by native SIT coins (Strategy Instance Tokens). The coins are used to pay for “prospecting” (i.e., scanning for unique trading signals), strategy (devising trading models) and exchange fees (to cover the cost of execution).

Currently seeking to raise $3m for 14% equity (plus SIT tokens), CoinBot supports strategy back-testing written to the Blockchain, and essentially allows users to avoid things like slippage by spreading the timing of instances over a defined trading period.

Personifi

Personifi is a data-driven marketplace for personal loans. It matches consumers with the most suitable lenders (across 30 brands on their platform).

What is supposed to make Personifi different to traditional brokers, lenders and comparison sites is the level of personalised advice, and its credit decision criteria.

With accreditation for the new open banking data regime and the new comprehensive credit reporting system. Personifi can offer improved interest rate options. It has to be noted that some of the loan providers on their platform may once have been considered “lenders of last resort” – not pay-day lenders, but certainly providers who service borrowers who have been turned down by banks and other primary lenders. So, the quality of the loan origination and the standards for lending will no doubt be critical to success.

Previously known as compeer.com.au, Personifi continues to test the broker market, and is bringing more transparency on its fees and loan T&C’s. Current revenue model is based on a 2% commission for referrals. Having pivoted from P2P lending, Personifi is targeting millennials who lack either a long or a strong credit history.

On the night, i=Change took out both the Judges’ prize, and the People’s choice.

A few observations about these pitch nights. First, I miss the audience Q&A that used to be an integral part of proceedings – if part of Startup VIC’s remit (and I am a long-standing, paid-up member) is to foster better founders, there is a missed learning opportunity for prospective and current founders if there are no questions from the audience. Second, I wish they could fix the PA problems – I had thought this had been sorted by using this new(ish), state of the art venue? Finally, it seems the pitch rules have changed, as one of tonight’s teams managed to sneak in a live product demo during their pitch – I just hope that every contestant was afforded the same opportunity, and if this is going to become a regular feature, then the organisers need to be more observant of the time limits…

Next week: Intersekt Festival 2018