CarbonTrack making it to final pitch round of TechVentures 2015

[drllau]

This event is sponsored by the SG govt and thus has a slightly different emphasis than the usual startup pitching. Oversimplifying, technology comes in different phases, the pioneering stage (eg blockchain), standards setting (eg WiFi) then the exploitation phase (eg wearables with BLE). Most technology can be derisked at the standard setting stage but there is a need to encourage sunrise industries. However, from an investors point of view, any capital risked needs to be compared with alternatives, hence the associated TechVentures co-event.sponsored by National Research Foundation and IPI. This commentary looks at some of the 13 startups reaching the last stage. 

• EdgeBotix - Automation (edutainment) - autonomous bots with programable sensor network
  
• Igloohome - Security (contribution economy) - protocol for key-exchange/smart locks and resource consumption eg AirBnB
  
• Sypher Labs - Logistics - SME eCommerce platform for coordinating drivers and delivery packages/points 
  
• Tip Biosystems - IoT  - handheld photometric measurement device, Automation/Minaturisation of technology
  
• Innovfusion - medical devices - infusion syringe pump systems with algorithm for anticipating patient pain
  
• Intraix - IoT - Smart Meters+Plugs+Sensors to provide optimisation modules to reduce household energy consumption
  
• Nodis - applied materials - Dipole Nano-Particle (DNP) technology of optical valve for variable transparency
  
• Alphaopen - ??? unknown Russian startup
  
• CarbonTRACK - CleanTech - energy management platform for residential and commercial environments,
  
• Easyship - Logistics - eCommerce fulfillment service 
  
• Family Traveller - eTrust  - destination information for targeted market (referral/recommendations) + personal services
  
• Pinticks - ??? - unknown Turkish startup
  
• THEIA - VR/AR - 2d/3d air projection of imagery

CarbonTrack is the only Australian startup to make to the final pitching round with some stiff competition in view (FamilyTraveller already raised $A1.6 M). Their product is basically the software to help residences or enterprises shift consumption patterns by providing information on energy usage and direct feedback on the resulting bill. As such it satisfies one of the key aspects of demonstrability (cf IglooHome which also controls aircon but bundles it with key exchange for AirBnB type collaborative consumption economy). With hard data (and future analytics) key metrics like payback period and ROI can be proven thus making it saleable to cost-conscious enterprise customers. However, the space of energy management is crowded with no platform commonality and thus getting a large customer base is important if CarbonTrack wants a seat at any future standard setting stage (utilities exchange information) or micro-grid open bidding. With a pure software solution, they are not constrained like Intraix but this also means no customer lock-in, ie a pure SaaS play.

Note the interesting trait of companies springing up from existing industry base with 2 logistics startups out of HK and Singapore leveraging their heavy engagement in supply chain. Apart from MinCom and the old Cochlear + CSIRO spinouts, it is hard to see any cluster benefit that Aussie startups have from prior govt industrial policies. FamilyTraveller looks like a niche play akin to LonelyPlanet (independent backpackers) but targetted at busy families. That could have sprung up anywhere but the eTrust/reputation systems makes similar market segments difficult to displace. I hope to see more Australia startups at future regional events. 

Lawrence
http://www.linkedin.com/in/drllau

[drllau]

Unfortunately CarbonTrack didn't win (email me if want commentary on IglooHome) but I was pleasantly surprised to find 5 Aussie startups braving the Singaporean sunshine (last year was only UWA) courtesy of GemStar Technology and the Australia Trade Commission. I had the opportunity to hear the lunchtime pitch of Blrt  whose tagline is "Get Everyone on the Same Page" and I'll give a thumbnail sketch of my impressions. Originally I thought their secret sauce was video compression (my professional interest is in saleable IP which video codecs make a nice contribution) but in fact, their approach to aggregating asynchronous multimedia was a (apparently proprietary) container format which bundles pictures, PDFs, sound and some vector graphics into an event model and quasi-scripting/replay engine (sorry, don't know the precise technical details). By emplacing embedded URL entry points, you can post-pend tweets/chats allowing a multi-party asynchronous collaborative session. Their use case they cited was a creative agency coordinating with multiple free-lancers and needing to unify the deliverables via speech commentary (captured via mobile phone/tablets) and graphics overlays.

When looking at the business aspects, it satisfies the basics. Due to the chat/collab features, it allows for network effects. Whlist freemium SaaS products are sensitive to conversion/abandonment rates which in turn determine monthly recurrent revenue, a key metric that investors track, they have resource segmentation (length of conversation 2min, 10min, #pages/images, PDF size) which is tuneable later to optimise the growth / customer acquisition process and data capture via the URL (possible shortener later). However, if expanding into ASEAN (which appears to be their objective rather than targetting US/EU) price sensitivity comes in and $10 USD/month may not be the appropriate price-point for this audience which may cause disjointed blrts if a project contains a mix of pro/basic users. Currently the UI is pretty minimalistic which suits a fast learning experience and satisfies the demonstrable value criteria. 

The fundamental weakness is that it is clonable ... whlist the site claims patent pending, after the US Supreme Court Alice ruling, software patents have been cut back and even if granted, seeking protection across multiple jurisdictions is 6 figure cash hole and enforcing it is non-trivial (harder for a startup to be solvent than an incumbant to be rational). Any successful SaaS tends to attract fast followers, especially those behind the Great Firewall confident in the belief they can dominate the mainland before the first mover can fight through the regulatory red tape. Note that when you start talking about internet communications (and chat is a key feature of Blrt) suddenly censorship starts rearing their hydra-heads and in particular internet media companies may need special licenses (not helped by the confusion of regulatory PRC agencies). Whilst there are some legal-fu that can bypass the IP tarpit (eg HK CEPA company) it all depends on expansion plans and whether a ChinaClone will treat it as a loss-leader to their other services which in turn constraints the upper growth limits. Data liberation is also heavily endorsed by google and the low-entry point of mobile apps also fosters competitive pressures in the long-term, I suspect the medium-term challenge is how to open up the API to evolve the downstream eco-system without losing control of the long-term product vision.

However, it appears that Blrt has captured the imagination of some so I wish it all the best in its ASEAN expansion plans.

[drllau]

Scann3D is one of those companies that has gone from chicken to egg (no offense but refers to observation that in cooking the chicken is involved but egg is committed) in making the jump from 3D consultancy to being a startup evolving its expertise in housing layouts/viewing for the real-estate and home improvement portals. The problem is not technology (which is mainstream abeit in limited numbers) but convincing users that the new experience should become the norm (and by implication those without Scann3d inferior). Norm shifting is actually really difficult without a strong motivating factor (faster gaming CPUs) or forced deprecation of old. As pharmacies and VCs know, flogging vitamins is harder than selling asprins. Through a few proprietary tricks of the trade, Scann3D has managed to compress 3D layouts to < 1% original size allowing tolerable download speeds (given the ADHD of modern youth unsurprising) and it appears a smooth production path from 3D scanning to footage (though it still be be labor intensive it is a one-off). Augmented Reality then allows the tablet to become a window to the future (if remodelling) or for projective 3D TV/headset, true immersion. For high value property, the additional engagement and visual presence may be justifiable.

The problem with vitamin type "nice to have" startups is that it is sometimes difficult to expand outside the initial customer (often internal) so having the gift of the gab and being creative in trying new use cases is critical. The mix of 3D scanning, surround 360 videocam and a little judicious eye candy can help make the case for "content is king" (even if only for a day til the next fad) carrying one past the early adopters. However, becoming mainstream, it needs to create value beyond being easy on the eyes so coming up with business case for safety in construction or comparing different interior designs (skins). One suggested use case was variation in hair-style with the 3D walk-around viewer (fashion never dies). The weakness is because the viewer and the 3D camera are off-shelf, anyone else can also enter the market with similar service which is why continuous incremental improvements and/or training the customer is to extend/deepen the customer relationship. When entering a new market like Singapore, the dynamics need to be understood, in that the HDB controls 80% of all apartment property and the local property investor might have substantial holdings. Fortunately the govt is tech-hungry so if the right business case is made, especially in context of "smart city" in see-through walls for faster or remote maintenance, there is a good chance of uptake,

[Dean Collins]

How is BLRT any different from a camtastia video recording?

 

 

Regards,

 

Dean Collins
Cognation Inc
de...@cognation.net
+1-212-203-4357    New York
+61-2-9016-5642    (Sydney in-dial).
+44-20-3129-6001 (London in-dial).

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[drllau]

Stupid interface cut out my last paragraph

Innovative products/services do not create the conditions for their adoption in the market; rather, market change is a process that must be managed. Crossing to Singapore means finding clear, compelling answers to why anyone would want the novelty. In the decade I've been commercialising innovation (note that flogging a me-too app doesn't count) I've consistently come across three key obstacles: 

• understanding gap - What is it? What is it for? Does it naturally fall into existing categories?
  
• attractiveness gap, What does it give/take away? Is it easy to see or experience the value?; and 
  
• behaviour change gap. What do I need to do differently? How much learning is required to get these benefits? Who has to change?