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Why you can’t afford to sit on your start-up idea
4:43AM | Friday, 19 AprilComing up with a brilliant idea is the first key step to becoming a successful entrepreneur. But unless you execute that idea in a timely fashion, others could beat you to the finish line. This was the challenged faced by Alec Lynch when he founded DesignCrowd, an online marketplace providing logo, website, print and graphic services via a worldwide network of freelance graphic designers. According to DesignCrowd, the top crowdsourcing countries are the United States, the United Kingdom and Australia. However, the company is also seeing strong growth from the likes of Brazil, Singapore and Germany. Designer demand for crowdsourcing has doubled in the last 12 months, with 100,000 registered designers now on DesignCrowd. Small business demand is also booming – DesignCrowd has seen more than 50% growth in posted projects already this year. But as Lynch explains, the company almost didn’t make it past the starting block. “The biggest mistake I made when I was starting DesignCrowd was not starting sooner. I first had the idea in 2006 but at some level I assumed I was the only one with the idea. I was wrong,” Lynch told StartupSmart. “After getting my co-founder (Adam Arbolino – a friend from uni) to build a prototype, I sat on the idea for six months while I worked in management consulting at Booz & Co before quitting my job and starting to work fulltime on the business in 2007.” “Within four months of quietly launching DesignCrowd out of the garage in January 2008, two competitors had started and both were better resourced.” “One had three staff and the other had $3 million in funding while I had $10,000 in savings and three credit cards.” “The reality was, while I was working on my business idea trying to perfect it, other entrepreneurs were working on the same idea.” What did Lynch learn from this? Entrepreneurship requires speed. “Moving too slowly meant that our competitors, initially, grew more quickly. They raised money more quickly, and they were able to hire staff and grow in key markets like the US,” he says. “One of the solutions to this challenge was raising capital. In 2009, I raised $300,000 from three angel investors, which helped us get our first office and employee, and grow the business 14-fold in two years.” “Then, in 2011, we raised $3 million from Starfish Ventures. “Since then, we’ve grown from three staff to 20 staff, acquired two US websites, launched in the UK, Canada and Asia, and more than tripled the business.” Lynch believes the business is better off as a result of his early experience. “My early experience taught me the importance of speed and the value of capital, which helps you move more quickly. It also trained us, perhaps most importantly, to do more with less. It forced us to develop a better product and make every marketing dollar count,” he says. “For example, we’ve been able to grow in the US, which has become our biggest source of sales, without having any staff there. “We’re now approaching $10 million in projects and the US accounts for about 40% of our business. We’re now planning to open an office in the US this year and make our first hire there.” “Whatever we do, we’re going to move quickly.”
Start-ups highlight lessons learnt at Advance Innovation pitch-fest
2:01AM | Monday, 18 FebruaryEntrepreneurs have spoken of their experiences at the “start-up pitch-fests” held for the Advance Innovation Program, highlighting the importance of preparation and the structure of your pitch.
Is your university on the money?
11:33PM | Monday, 26 NovemberIt’s well known that some universities have a heavier focus on entrepreneurship than others. But when it comes to funding prospects for student start-ups, does the university make a difference?
Start-ups often underestimate fundraising process: Starfish Ventures boss
3:38AM | Monday, 11 MarchStart-ups often underestimate the time required to raise capital, says the co-founder of Starfish Ventures, following a $2 million investment in an email and web communication company.
Crowdsourcing venture DesignCrowd makes first foray into Asia
3:25AM | Tuesday, 12 MarchAustralian crowdsourcing marketplace DesignCrowd has made its first foray into Asia, after launching its service in Singapore, India and the Philippines as part of a global expansion plan.
Melbourne Uni start-up MetaCDN snags $2.3 million investment
3:41AM | Tuesday, 12 MarchMetaCDN, a web start-up born out of the University of Melbourne, has secured $US2.3 million in an investment round led by Australian venture capital firm Starfish Ventures.
Five rising stars of the start-up co-working scene
8:36PM | Thursday, 9 AugustThe co-working concept is spreading its tentacles across Australia, with the past week seeing a series of “first ever” launches – in Newcastle, Adelaide and, most recently, Perth.
Ignition Labs unveils first five clean tech start-ups for accelerator
7:26PM | Wednesday, 25 JulyClean technology accelerator Ignition Labs has selected five teams for its inaugural program, including an online peer-to-peer rental platform to encourage collaborative consumption.
How we raised $1.2 million from Peter Thiel: ScriptRock
7:25AM | Wednesday, 25 JulyHonesty is a virtue often underrated by start-ups seeking investment, according to local start-up ScriptRock, after it raised $1.2 million in a round led by vaunted US serial entrepreneur Peter Thiel.
Westfield evicts online retailer StyleTread after tenant backlash
7:07AM | Tuesday, 24 JulyLocal online shoe retailer StyleTread is remaining tight-lipped about its clash with Westfield, after the start-up’s kiosk was closed at Parramatta following a conflict with existing tenants.
Aussie tech start-up 5th Finger acquired by US giant Merkle
7:11AM | Thursday, 12 JulyAustralian-founded mobile solutions provider 5th Finger has been acquired by customer relationship management firm Merkle, five years after relocating from Sydney to the US.
Bubble Gum bucks gaming industry gloom with $2.5 million funding round
6:10PM | Tuesday, 26 JuneSydney-based games studio Bubble Gum Interactive has bucked the trend of local gaming companies going under, after raising $2.5 million in a second round of funding.
StyleTread bucks Asian gold rush to expand to New Zealand
5:22AM | Wednesday, 16 MayAn online retail expert says New Zealand can be a lucrative market for start-ups as long as they localise their offering, after online shoe store StyleTread announced its New Zealand launch.
Starfish Ventures ploughs $2 million into Aussie gaming start-up Scalify
5:14PM | Sunday, 6 MayMelbourne-based gaming start-up Scalify is set to rapidly ramp up its growth after receiving a $2 million investment from Starfish Ventures.
Start-ups back new co-working space House of Commons
4:41PM | Thursday, 12 AprilThe co-founder of Melbourne-based start-up Paydirt has sung the praises of new co-working space House of Commons, which is also home to Melbourne start-up success story BugHerd.
Making waves in mature Melbourne
4:39AM | Monday, 2 AprilMelbourne Population: 4.07 million Start-up survival rate: 74.3% (2007 to 2009)
StyleTread snags Starfish Ventures in $12 million funding round
3:20AM | Wednesday, 28 MarchSydney-based online shoe store StyleTread has raised $12 million in a Series C funding round, with Starfish Ventures joining the likes of Lakestar and Nine Entertainment Co as an investor.
Revealed: Where Australian start-ups are getting their funding
3:32PM | Tuesday, 20 MarchAccording to research released this week, Australia lags many other major economies when it comes to the extending of credit to small businesses, despite the comparative health of our economy.
Are Australian investors overly conservative?
11:31PM | Monday, 14 NovemberGetting venture capital for any start-up is hard work. Even in the US, the world’s biggest venture capital market and the mecca for start-ups, only two out of every hundred get funded.
Mobile solutions provider 5th Finger targets further US growth
10:22AM | Tuesday, 18 OctoberAustralian-founded mobile solutions provider 5th Finger has set its sights on store-based retailers in the United States, after being named the eighth fastest-growing company in San Francisco by Inc.com.
