MGMT5611-EntrepreneurshipandNewVentureManagement
4startups,4differentindustries,4differentresultsand2ideasforstartupswhichnevermadeitpastbusinessplan
Myfavouritebook
MyfavouriteAussiestartup
Questions
Startup experience #1
Keytakeaways• Globalfromdayone.Thatiswhatthe‘g’stoodforandpenetrated30countries• FoundationcustomersincludedVisa,ANZBank,MasterCard• $2mproductsaletoStandardCharteredBankeliminatedneedtodoacapitalraise• Offshoredevelopmentcentreinthemiddleeasttoreducecosts
Launched2016
Launched2011
Founded:2000Industry:Fintech–digitalwalletCapitalraised:$100kseedResult:Cashflowpositive,stilloperating
Startup experience #2
Founded:2001Industry:OnlineSearchCapitalraised:$2mfromasingleangelinvestorResult:$0revenue,shutdown2004
Keytakeaways• Priortothelaunchofgoogle,localsearchengineswerestilloperating• Triedtocomercialiseacross-referencingfeature,ratherthanbuildingastandaloneproduct• OperatedacrossMelbourneandSydneyviavirtualoffice• DifficulttoeducateaB2Bmarketonanewhorizontalplatformforcross-referencinge.g.law
firm
Startup experience #3
Founded:2000Industry:MastertrustplatformforindependentfinancialadvisorsCapitalraised:$6mincludingVCinvestmentfromPacificEquityPartnersResult:SoldtoINGin2006for$76mwith$3bnfundsunderadministrationAustralianVentureCapitalAssociationawardfor‘Bestearlystageinvestment2006’
KeyTakeaways• Astrongmanagementteamleftacompetitorandtookthe
relationships/contacts• Pitchtochannelpartners(financialplanners)wasthatOasiswas
independentofthebig4banks• Loweroperationalcostthancompetitorsthrough‘nearshore’
operationscentreinWollongong• INGthensoldOasisAssetManagementtoANZBank–NOLONGER
INDEPENDENT
Business plan which didn’t make it #1
Whodidgetfundingandtrytosolvetheproblem?
ANZBladepay-2016CommbankAlbert-2015
Founded:2006Industry:Fintech–billsplittinginrestaurantsIntellectualProperty:ProvisionalPatentCapitalraised:$0kResult:Couldn’tbuildminimumviableproduct
Business plan which didn’t make it #2
Founded:2001,listedonASX2014Industry:Stratapropertymanagement
Capitalraised:$55mResult:Today,marketcapitalisationof$18m
TriedtoentertheInternetofThings(IOT)markettooearly,beforethemarketwasready
Whodidgetfundingandtrytosolvetheproblem?
Founded:2012Industry:StratapropertymanagementCapitalraised:$0kResult:Minimumviableproductdeveloped–parkedbyfounders
Startup experience #4 - Current
Usedatafromsimilarapartmentblockstocreatequick,simpleenergyreports
8monthslater,1in3oftheapartmentblockswhichgetareportbuyequipmentfromWattblock
Founded:2014Industry:DisruptingenergyauditindustryintheapartmentblockverticalCapitalraised:$1mseedResult:3yearsin,cashflowpositive
Wattblock milestones
Jun2016
Apr2016Jun2015
May2015
Apr2015
Aug2015Jan2015
Nov2014
InnovationoftheYear(NSW)
SeedRound(10investorsincludingPeterFarrell,Resmed)
CityofSydneyEnvironmentalInnovationGrant
CEBITStartupPitchRunner-up
Top50SydneyStartups
toWatch
CollaborativeSolutionsInnovation
Grant
Oct2014
$40kEquityInvestment
EnergyStartupPitchWinner-Sydney
UNSWShenzhenPitchWinner
BestSocialChangeEntrepreneurStartupSmart
Aug2017
Wattblock customers
My favourite book BookwrittenbyClaytonChristensenin1997whichintroducedtheterm“disruptiveinnovation”.
“Oneofthesixmostimportantbooksaboutbusinesseverwritten.”
TheEconomist
Disruptive Innovation Thesis – A Recap • Adisruptiveinnovationinitiallyoffersalowerperformanceaccordingtowhatthemainstream
markethashistoricallydemanded
• Atthesametime,itprovidessomenewperformanceattributes,whichinturnmakesitprosperinadifferentmarket.
• Asitimprovesalongthetraditionalperformanceparametersiteventuallydisplacestheformertechnology
• Disruptivetechnologiestypicallyhavea“lowerstickerprice”perunitthanproductswhichareusedinthemainstream,eventhoughtheircostinuseisoftenhigher
“Mainstreamcustomerscanneveruseadisruptivetechnologyatitsoutset”
Favourite Australian startup
Thenthis$125,000musiccomputerwasdisruptedbytheAtariSTcomputer$2,000.
FairlightMusicComputer-1979• FirstcustomerwasStevieWonderwhocouldusethe“lightpen”touchinterface.• 300weresoldworldwideatanaveragecostof$125,000• UsedbyMichaelJackson,Madonna,B-52’s,BeachBoys,DavidBowie,DireStraits,Fleetwood
Mac,IceT,PetshopBoys,Prince,ThePolice,U2,StockAitkenWaterman,etc.
Thankyou