Would you like to earn free minutes and/or megabytes on your mobile data plan? Postr powers telco-branded white-label Android apps that show you tailored adverts on your mobile phone’s lockscreen, and reward you with free megabytes and minutes.
It’s a simple concept that’s had great uptake with Skinny in New Zealand – after less than a year out of the blocks with Skinny, they already have over 40,000 users across Skinny and their original B2C app Postr. They’re planning on launching with another major telco in NZ this year.
But the exciting action is overseas, and they’ve launched with “a telco” in Australia earlier this year (five seconds of Internet search revealed that the telco is Optus), and are preparing to launch in the Philippines and Indonesia in the next few months.
27 year old CEO Milan Reinartz arrived in New Zealand from Munich on a high school student exchange programme, and never left. While he was at design school, he started making money buying and selling cars, and generally trading. When he got his first job as a designer at Saatchi & Saatchi Wellington at age 20, he found he was making less money than he had the previous year as a trader. He decided it was more rewarding – mentally as well as financially – to work for himself as an entrepreneur.
He got involved in the startup scene through Alan Hucks at CreativeHQ, and did some design work for Yonix, Dash Tickets, and went through Lightning Lab 2013 with the Promoki team. Dash Tickets was acquired, and Promoki failed. You could say that Milan did his startup apprenticeship in this way.
One day in 2014 Milan got a txt from a friend in Germany who pointed him to Locket.com, a company doing opt-in adverts on lockscreens (since acquired by wish.com) and said, hey this is a great idea, and you could do a much better job with it. Whereas Locket had been focused on gaming and retail, Milan thought that this would be much more valuable to Top 200 brand companies and more suitable to personalisation. So he launched Postr, their initial B2C platform in early 2014. There was a problem though – customer acquisition cost was just too high compared to the value that the end user was receiving. So they pivoted Postr into a B2E2C model, partnering with mobile networks to help them differentiate and white labelled the app.
Given their traction in NZ, Australia, and Southeast Asia, they’re currently on a steep growth curve. Southeast Asia is particularly attractive due to the high Android market penetration there, and vibrant and growing mobile advertising market. Nowadays, Milan spends two weeks on the road in Asia with COO Roger Shakes, alternating with two weeks in NZ working in deals here and minding the shop with CTO and co-founder Mark Penman.
This isn’t only a speed-to-market play, it’s a be-the-f@#%!ing-best-out-there play
“This isn’t only a speed-to-market play, it’s a be-the-f@#%!ng-best-out-there play because it’s such a new space” says Milan. And the stats back up that they’re well on the way. They’re getting average revenue per user (ARPU) of over $2/month/user which is much less than their acquisition cost through the telco channel. Now it’s mainly a question of scaling.
And to that end, they’re raising a $2-3m series A, which has been mostly filled by existing investors plus new investors from Southeast Asia. Milan touts, “there’s still room in the round for additional investors, but you’d better get in quick!” Love it.
Their challenges going forward? “Setting up a truly international operation, within the ‘wild west’ environment of mobile advertising, the slow sales cycles, working with big organisations like telcos and the lack of talent and expertise in NZ around mobile ad-tech.”
The important thing is not to let your mind get bogged down, to keep going, be persistent, keep learning, and not give up for the wrong reasons.
I asked Milan what was the most important thing he’s learned in the last couple of years, and he said, “I think it’s a bit like walking a tightrope in the early stages and you often don’t know what’s going to work before you try. The important thing is not to let your mind get bogged down, to keep going, be persistent, keep learning, and not give up for the wrong reasons.”
I travel internationally by air a fair bit, but always worry about my checked luggage. Has it been “inspected” by security agencies? Have baggage handlers roughhoused my precious belongings?
Intrude A Lock is a simple but ingenious device which you can put into your suitcase before you go, and then query using your smartphone after arrival to answer these questions. It collects the required data (light and intense movement), and then reports this data back to your phone along with the time and date of the actions. The proposed RRP is NZD 70.
Elisha Fleming is the 18 year old entrepreneur who came up with this idea a couple of years ago as a result of his own travel experiences, and talking to people who worried if their own bags had been tampered with. This year in January, he entered CreativeHQ’s Venture UP programme which, in partnership with the Young Enterprise Scheme, provides a six week accelerator to help entrepreneurial students commercialise their ideas between their final year of high school and their first year of university.
Elisha has just finished up at Garin College in Nelson with Merit in NCEA Level 3, and is on his way to doing a double-major in Finance and Entrepreneurship at Waikato University. His future didn’t always look so bright, however, as his family was told at an early age that due to medical issues, he’d never be able to succeed academically. Not willing to be held back, he carried on in school, but also started his own business trading goods on TradeMe, and managing his family’s property investment portfolio. Today, Elisha has a minor speech impediment, but he’s sharper and more savvy than many you’ll meet in business. “I’m always searching for a ‘yes’ rather than a ‘no’,” says Elisha, which has helped him learn incredible resilience.
At Venture UP, Elisha was joined by Hayden Washington Smith and Keith Toma, who were inspired by the product and mission. Hayden will continue on in the team as Director of Finance and Marketing, while he embarks on a law degree at Victoria University this year. Advisors include Glenn Andert and Matthias Andermatt.
The team completed the prototype during the programme, and are currently manufacturing a small pre-production run. They have managed to secure a trial with an overseas global brand in the transport industry who are interested in selling Intrude A Lock to their customers through their retail channel. They’ve also had significant interest from baggage manufacturers who want to incorporate the device into their products. Their main sales strategy focuses on channel development, using airlines, logistics companies, and manufacturers – they feel this is higher value and lower hassle than selling directly to consumers.
The trial should complete before the end March 2016, and Elisha is confident of success. If he pulls it off, that would mean he would be running an international manufacturing business from New Zealand at age 18. Longer term, they want to specialise to be the experts in protecting high value goods such as human tissue during transport.
Venture UP’s Programme Director Nick Churchouse had this to say about the team:
Elisha, Keith and Hayden were a stand out team at Venture UP – they boxed through more challenges than most. There are natural hurdles facing any hardware business, let alone a tech-connected product tussling with airline security, personal liability and ornery issues like damage and loss liability. Despite this the Intrude A Lock team built a strong proposition, got out of the room, engaged with aviation industry leaders and got a deal on the table in less than six weeks. If that’s not Venturing Up I don’t know what is.
Young Enterprise CEO Terry Shubkin adds,
Intrude A Lock is a great example of what can happen when you take the un-inhibited innovation that comes with youth, and couple that with a programme that provides structure, support and networks. It’s a great product which has been well-validated, and I can’t wait to see where the company goes next.
The Venture UP programme finished last week, but Intrude A Lock are going strong, and ramping up. They’re looking for a hardware developer and some seed capital, but most importantly, they’re looking for preorders and connections to potential channel partners. If you’re interested or can help out, contact the team.