Ruslan Kogan

Latest

Australia’s listed technology sector is about to boom

8:02AM | Wednesday, 13 August

In my last article I responded to an interview in Vox with Marc Andreessen. Andreessen lamented that, in spite of a historic gold rush in technology companies, the IPO is dying in the United States due to zealous over regulation in the form of Sarbanes–Oxley, for example.   As a result, the general public is missing out on the incredible gains that were experienced in the listed US technology companies of yesteryear.   Yes, the regulators have gone too far and it is creating serious friction in the IPO pipeline. However I argued that perhaps the real reason that technology companies appear to Marc to be listing later and later is because, not surprisingly, the top venture capitalists are keeping these returns all for themselves.   It's been a relatively recent phenomenon that US technology companies have been waiting longer and longer to go public. In the US, technology IPOs of yesteryear companies went public much earlier, with market capitalisations in the hundreds of millions of dollars instead of the tens of billions.   As a result, the general public had the ability to share in the spectacular returns that technology companies can generate over time as software eats the world and industry after industry is being wholesale remapped and reshaped, with revenue growth at a speed unprecedented in history.   Even though eBay's share price went up a spectacular 163% on opening day, if you bought shares on market after this rise and held on until today you'd have made over 3500%. If you bought Amazon the day after it listed, you'd be up over 27,000%. If you'd bought Microsoft at IPO in 1986, you'd be up 66,500% today and 3000% in the first eight years alone.   Unfortunately for investors in the US, the general public is missing out. You only have to look at Facebook listing at $104 billion and Twitter listing at $24 billion to get a feeling for just how late these companies are going to market.   So who is making all the money as the stocks go from the tens of millions of dollars in market capitalisation to the tens of billions? The answer, not surprisingly, are the venture capitalists. You can't blame them for doing so, because of course their business model is to make as much money as possible for their limited partners.   There is another stock market, however, outside the US that is not subject to Sarbanes–Oxley and where technology listings are about to boom. This market is already quite a large market for equity capital issuances. In fact, as much money was raised there in the last five years as NASDAQ. The only problem from a technology company perspective is that most of the money raised there has been for resources companies.   I am, of course, talking about the Australian Securities Exchange.   Now let me tell you how this has all come about, and why now.   There is a disaster in venture capital in Australia with only around $30 million per annum for the whole of seed stage investments, $40 million in early stage and $20m in late stage. AVCAL reports there were 16 "investments" done with this grand sum of $20 million in late stage venture capital in 2013.   I am quite perplexed about how they defined "late stage" here, because the very definition of a late stage round size is usually greater than $20 million in one single investment, let alone 16. The only conclusion I can make is that these investments were triaged into bleeding zombie companies – hardly a sign of a successful late stage industry. Either that, or AVCAL has now taken up reporting of late stage investments to include lemonade stands.   Atlassian, one of Australia's most successful technology companies, just raised $US150 million in a late stage round. The entire Australian venture capital industry simply isn't big enough to fund that single round.   In addition to the lack of venture financing, a major terraforming of the economy is needed. Although we have $1.5 trillion dollars in the fourth largest pool of retirement funds (superannuation) in the world, these funds don't invest very much in Australian venture capital because none of the VCs to date have demonstrated that they can generate a return.   It's hard to claim that venture capital is even an asset class in this country, as it's missed every single major technology success story this country has produced all the way back from Radiata: Atlassian, Kogan, Big Commerce, RetailMeNot, Campaign Monitor, OzForex. The list goes on and on. For the life of me, I can't think of one they actually invested in.   The funds being invested into Australian VC come roughly equally from corporates, government and high net worth individuals. Corporate investment in VC in Australia is in decline, and with the government recently turning its tap off with the cancellation of the IIF program, I don't see a path to resurrecting a domestic venture capital industry any time within the next decade or two without a serious change in philosophy, which is not going to come from either of the two major political parties.   The incumbent Liberal party is currently implementing a program of austerity, and the previous Labor government was, at best, only interested in trying to win union votes from bailing out the inefficient and dying local manufacturing sectors. The biggest impact Labor had on the sector during their tenure was to change the laws on the taxation of option schemes, which wiped out the primary incentivisation mechanism for the technology industry (and, ironically, the primary means by which wealth is redistributed from owners to workers).   While I personally was not sorry to see the IIF go, I was hopeful that the axing of the program would be replaced with something more effective for financing technology companies down under. A better way would be through taxation reform for investors in qualifying risky technology ventures –front-end relief in the form of tax credits or a reduced rate of tax and back-end relief in the form of capital gains tax reductions or exemptions like the UK's Enterprise and Seed Enterprise Investment Schemes.   At the end of the day, the Australian government only provided $25 million a year into the IIF program, which is paltry when you consider Singapore, with a population of 5.4 million, has committed $SG16 billion ($US12.8 billion) into scientific research and development over a four year period from 2011 to 2015.   So how are Australian companies getting financed? Whilst the big US VC brands like Accel, Sequoia, Spectrum and Insight are actively prospecting down here, they are mostly just looking for cheap deals by value investing in late stage companies outside the hot money Silicon Valley market.   The investments that they have made to date, and which have been trumpeted in the media, have for the most part been majority buyouts or exits (Campaign Monitor, 99designs, RetailMeNot, etc).   A notable exception to this has been Accel's investment in Atlassian.   However, the lack of funding has not deterred Australia's entrepreneurs from building world class technology companies. Instead, they have focused on raising funds from the best source possible: selling something valuable to their customers.   This story continues on page 2. Please click below.  Almost all of Australia's best technology companies have bootstrapped all the way through. Those that did take outside funding, for the most part, didn't take it until they reached quite a late stage. As a result, we have some very well run technology companies, and some world class companies in the making.   Although I am pretty active in the startup community, every second week I am shocked to discover yet another Australian technology company that I have never heard of generating $10 million, $20 million, $50 million or more in revenue per annum. Until recently, I had never heard of companies like RedBubble, Nitro, and Pepperstone. The latter of which has, in just three years, become the 11th biggest forex broker in the world, turning over $70 billion a month through their online platform).   Because the Australian technology industry is mostly bootstrapped, it took longer to get here, but coming down the pipeline are an incredible number of great technology companies.   So if the Australian VC industry is dead, then how are these great companies going to raise funds when they need them? Well, I believe the answer is staring them right in the face. It's called the Australian Securities Exchange (ASX).   After all, what better way to fund a company than by crowdsourcing it? This is what the resources industry already does today, via the ASX. If you have an early stage speculative mining company, you don't go begging down Coal Hill Road pitching to mining VCs and spending six months negotiating a telephone directory thick preferred stock structure. No, you write a prospectus detailing what you're going to do with the money and list it on the ASX.   Likewise if you're BHP or Rio Tinto, you can go to the ASX and the market is deep enough to raise billions. Crowd sourcing equity from the public has been done successfully for decades in resources. The ASX is in the top five globally for the total amount of money raised for equity issuances from 2009-13. There is no Sarbanes–Oxley in Australia, and listing costs are quite low. (In Freelancer's IPO, the underwriting fees were $450,000, legal fees were around $100,000, and investigating accountants cost about $50,000.)   Why go to a venture capital middleman unless they are a rockstar with solid operating experience that can add demonstrable value in some way?   I believe that Malcolm Turnbull will bring in legislation to allow the general public to crowdfund early stage ventures without a registered offering document, as is starting to happen elsewhere around the world. This will generate further interest and appetite in investing in technology companies from the general public which already actively takes a punt on speculative, early-stage mining companies (not to mention the Melbourne Cup).   At the moment, to invest in companies without a registered offering document you need to be a "sophisticated investor", which is curiously defined as a person having income of $250,000 per annum in each of the last two years, or net assets of $2.5 million.   I don't know why being rich makes you automatically sophisticated, and being poor means you’re incompetent with your money, but I'm sure that something sensible will happen here. If, by miracle, we see some taxation relief for technology investments, then this will be accelerated.   But I'm not holding my breath, even though the Australian government used to provide some form of taxation relief for investors in the mining industry.   When we were considering listing Freelancer on the ASX, many people gave us the usual regurgitated responses as to why it wouldn't work; investors here don't understand technology and that we would trade at a discount compared to US markets.   Professor George Foster from Stanford Graduate School of Business showed some time ago that country specific factors were a lot less important than company-specific financial statement-based information in explaining valuation multiples in an international setting.   Markets are increasingly globalised. It's almost as easy for a US investor to buy Australian shares as US ones. Money flows to where it gets the greatest return for a given risk profile; basically if arbitrage exists, someone will take it. Our stock going to $2.50 from a 50 cent issue price in the biggest opening in the last 14 years and third biggest opening ever on the ASX for an issuance larger than seed size is testament to the amount of pent up interest amongst the general public to invest in technology.   We took a calculated risk – nobody wants to be the first to try something new. But so far it has paid off.   It’s great to see the sector now heating up with recent listings from companies like Ozforex, iSelect, iBuy and MigMe (up 95% yesterday on their IPO, and like I did, broke the bell), and with WiseTech Global, Vista Group, 1-page, Covata, BPS Technology, Grays Australia imminently coming down the pipeline.   I suspect Ruslan Kogan will also be considering his options given the tremendous effort he has done bootstrapping Kogan to date. What surprised me is that the process was significantly easier, quicker and resulted in a more equitable and transparent capital structure than what I have experienced in any of the dozen venture capital financings I have been involved with in the past.   Projecting forward, I think that the ASX will be the primary way in which technology companies raise equity in this country in the future. The ASX realises this as well, and is moving to position itself as a regional hub for the Asian technology sector.   If it is successful—and I think there is a good chance it will be—it will cover a massive market. There are significantly more people in Asia (with dramatically rising incomes), significantly more micro, small, and medium enterprises (MSMEs). It’s a much bigger market for many industries, and there are a lot more mobile phones than the US, to draw comparison to just a few metrics.   The ASX is in a fantastic position to capture this opportunity. In the second half of 2013 a total of 14 technology companies listed on the ASX. Since January 2014 there has been 55. In the entirety of 2013, a total of 59 companies were financed by Australian venture capital.   This is the future for financing technology companies in Australia.   Matt Barrie is chief executive at Freelancer.com

BRW Rich List revealed: tech entrepreneurs fresh faces among the usual crowd

6:04PM | Sunday, 29 June

Miners and property developers are among Australia’s wealthiest people, but young technology entrepreneurs are snapping at their heels, according to the 31st BRW Rich 200 released Friday.   Gina Rinehart once again topped the BRW Rich List with an estimated worth of $20.01 billion, down from $22.02 billion the previous year.   Anthony Pratt, chairman and chief executive of paper and packaging company Visy Industries, came in at number two and is Australia’s richest man, with a net worth of $7.64 billion. James Packer came in at third place with $7.19 billion.   Despite the usual pack of miners, property investors and those born into wealthy families dominating the list, people who have made their fortunes from striking it out alone in the IT industry are quick on their heels.   Former Smart50 winners and Atlassian founders Mike Cannon-Brookes and Scott Farquhar have surged ahead in this year’s rankings, coming in at number 35 and 36 respectively. Between them, the pair is worth $2.14 billion. Last year the entrepreneurs were worth $250 million each.   Atlassian, a software development company founded in 2002, has averaged 40% on year growth for the last five years.   Cannon-Brooks and Farquhar have been hailed as examples of how Australian tech companies can thrive on the international stage. However, the pair also has their priorities set on other things besides profit.   In April, they pledged $35 million to community-building after setting aside 1% of the company’s equity to charity when starting the business. Farquhar told SmartCompany Atlassian has a passion for investing in charity for the long-term, especially when it comes to giving people the skills to help others.   “It’s really about education,” he said. “Ideally in 50 years’ time we want to say we have really achieved fixing something rather than just patching over something.”   Another entrepreneur, Ruslan Kogan, also fared well and came in at number 162 – his first time making it onto the list with a net worth of $320 million. Kogan’s business is going from strength to strength, and launched in New Zealand in March.   “Our goal is to deliver the latest technology at market leading prices,” he toldSmartCompany. “Whether it is manufacturing our own Kogan products, or sourcing the world’s biggest brands, we can cut out all the middlemen to guarantee the best prices.”   Mining magnate turned politician Clive Palmer didn’t fare too well in comparison to previous years, falling a massive $980 million in comparison to last year. However, fellow miner Andrew Forrest had the opposite fate – his wealth jumping from $3.66 billion to $5.86 billion this year.   The average age of those on the BRW Rich 200 is 64, and of the 200 people on the list 39 of them are billionaires. Only 7% of the rich-listers are women.   The richest people in Australia: 1. Gina Rinehart - $20.01 billion 2. Anthony Pratt & family - $7.64 billion 3. James Packer - $7.19 billion 4. Frank Lowy - $7.16 billion 5. Ivan Glasenberg - $6.63 billion 6. Hui Wing Mau - $6.35 billion 7. Andrew Forrest - $5.86 billion 8. Harry Triguboff - $5.5 billion 9. John Gandel - $4.08 billion 10. Kerr Neilson - $3.35 billion   This article originally appeared on SmartCompany.

April Fools’ startup PR pranks: The good, the bad and the downright silly

4:09AM | Tuesday, 1 April

April Fools’ Day is a rallying call for the PR industry, which has whipped out would-be ideas for their clients. Here’s our pick of the five almost-stories that stood out.   Kogan Drone Broadband Network takes flight     The idea serial entrepreneur Ruslan Kogan has (allegedly) launched a Wi-Fi broadband network via drones, which are already in the air around you, is quite fun.   From the release: “The current Australian NBN rollout is going to cost an estimated $73 billion. Frustrated by the delays and cost blow-out associated with the NBN, our team of engineers decided to take matters into their own hands.”   With the ongoing angst about the withering NBN, and Google’s actual ambitions to spread internet via hot air balloon last year, this idea is the perfect combo of political statement meets market demand meets crazy. We actually wished this one was true.   OneShift launches JobSwap   Employment platform for retail and hospitality staff OneShift has launched JobSwap, a service to enable employees to swap employers and responsibilities for a couple of weeks.   From the release: “[Founder Gen] George said that although OneShift was focusing mainly on employer registrations at this stage, staff of participating businesses would be able to sign up via the website in a matter of weeks.”   This one goes into our April Fools’ lemon basket. In a business promoting themselves as pairing people with the right job, surely the idea of interchangeable staff-company fit is a bad one to promote? It’s also low on humour.   iiNet launches Pet-Fi: Wi-Fi-enabled pet collars     Another internet-related prank, iiNet has announced the launch of Pet-Fi to turn your pet into a mobile hot spot.   From the release: “Bringing you the latest advancement in Wi-Fi technology, we give you Pet-Fi, the world's first pet-powered mobile broadband solution. We know you love your pets and you love having them close-by, so why not take advantage of that? Use Pet-Fi to transform your pet into the ultimate – yet cuddly – Wi-Fi hotspot and mobile broadband modem.”   Water resistant, shock proof and almost definitely a joke, this April Fools’ prank is adorable with a hint of animal use that makes it uncomfortable enough to spur the conversation on. Though it loses points for being easily unbelievable.   Swiftly launches Fool your Friends offering     More of an enabler than a prankster in its own right, 99designs' new service Swiftly has launched a series of pictures demonstrating how the software can be used to doctor photos to fool your friends.   Unfortunately for Swiftly, which is fundamentally a design business, the images aren’t remotely convincing or aesthetically compelling. Again, an April Fools’ dud.   Google Maps launched Pokemon challenge     With ample resources and a history of fun gimmicks and Easter eggs, startup folk were quick to check the Google platforms for April Fool pranks.   This year, Google Maps released a video announcing a new position within their team: Pokemon Master.   {qtube vid:=4YMD6xELI_k}   To find the Pokemons, head to Google Maps and hit “start” without writing in anything. Quite frankly, we think the Pokemons should stay.

Kogan expanding to New Zealand: Watch our exclusive Q&A video with him here

3:46AM | Thursday, 27 March

Electronics startup superpower Kogan is setting up shop in New Zealand. Not literally though, as Kogan operates entirely online and the founder has told StartupSmart he doesn’t believe in omni-channel retailing.   At a recent pitching competition run by this publication, founder and chief executive Ruslan Kogan outlined his growth strategy, advocating ruthless focus on a unique selling point: in his team’s case, price.    You can watch him field questions and share his insights in the video below:

So You Think You Can Start-up winners urge other start-ups to get involved in pitching competitions

2:13AM | Friday, 7 February

A system that automates basic bookkeeping and paperwork for small businesses has won StartupSmart’s So You Think You Can Start-up pitching competition.   Bocastle took out first prize after founder Tim Stroh pitched his business in front of a panel of distinguished judges and nine other finalists and their supporters.   The competition – sponsored by serviced office provider Servcorp and held in their Sydney offices – was live streamed on the internet around the world.   Stroh won office space from Servcorp anywhere around the world valued at $250,000, as well as six months of public relations services with PR expert Sam Dybac, and mentoring sessions with Sydney Seed Fund and StartupSmart’s publisher Private Media.   Stroh says winning came at a great time for Bocastle and he’ll now stop looking for office space.   “The value of a $250,000 credit for office space and serviced office services almost has more value than cash because it’s an office that will scale with you,” he says.   Servcorp also offered on the night the two runners up its virtual office package for six months for free and the remaining seven finalists a two-month virtual office package for free.   Stroh says the number one priority now for Bocastle is to finish raising $1.5 million to $2 million from investors to deliver a fully commercial system.   He urged other start-ups to get involved in pitching competitions, saying the more they did, the more people they’ll meet and receive feedback and become more comfortable doing them.   Second place in the competition went to education course community marketplace WeTeachMe.   Co-founder Kym Huynh, told StartupSmart he hasn’t had a chance to fully reflect on the evening but thought it was a positive experience.   He says he would encourage any other start-ups to get involved in pitch events.   “It was great exposure and it was great to mingle and see what everyone’s doing.”   Third place went to curated legal services marketplace LegalVision.   Co-founder Lachlan McKnight says the feedback he received would go towards changing their pitch for the future.   “We should have given more information on our actual numbers,” he says.   He also encouraged other start-ups to enter pitching competitions, saying they provided exposure and “doing a three minute pitch is a good way of sitting down and having a think about the strengths of your business”.   McKnight also welcomed advice given by judge and founder of Kogan Technologies, Ruslan Kogan, who urged people thinking of starting up businesses to “just do it”.   Image: So You Think You Can Start-up winner Tim Stroh, right, with Servcorp chief operating officer Marcus Moufarrige

So You Think You Can Start-up pitching competition finalists out to impress

2:35AM | Wednesday, 5 February

StartupSmart’s first ever pitching competition, So You Think You Can Start-up, is on tomorrow night. The 10 finalists are competing for a raft of great prizes, including a year’s office space anywhere in the world with sponsor Servcorp valued at $250,000.   The business-to-business start-ups will be pitching in front of a distinguished panel of judges including entrepreneur and founder of Kogan Technologies, Ruslan Kogan, Sydney Seed Fund partner Garry Visontay and start-up expert Dr Jana Matthews.   The event will be webcast live from 6.30pm, Thursday, February 6 and can be seen by registering here and the list of finalists can be viewed here.   StartupSmart received over 100 entries to the competition from a range of industries including enterprise software, consulting, agriculture and outsourcing.   The majority of start-ups were one or two years old, with 40% launching in 2013 and 36% in 2012.

Tinkler out but most made a killing: Secrets of the Young Rich

9:01AM | Thursday, 19 September

It often surprises casual observers that the annual BRW Young Rich edition counts the 100 youngest self-made entrepreneurs under 40.   After all, in most industries, awards for ‘rising stars’ and the like cut out at 25 or 30.   The reason BRW has to give people 40 years to shine is simple: hardly any businesspeople make a killing by 30. A list cutting off there would be dominated by sports stars and celebrities. And for a business publication, that wouldn’t interest its readers as much.   Almost all of the Young Rich 2013, unveiled in the magazine’s flagship edition out this morning, are aged from 30 to 40. The youngest person on the list, MotoGP rider Casey Stoner, is aged 27.   SmartCompany spent a fascinating morning dissecting the latest list. Here’s what Australia’s youngest millionaires have in common.   Life’s work   Most of the Young Rich are entrepreneurs, who started companies and over years helped grow them.   Apart from the sports stars and celebrities, there are few employees on the Young Rich.   Thanks to Nathan Tinkler dropping off the list this year, there are now two more. Todd Hannigan and Tom Todd made their $84 million joint fortune by leading Nathan Tinkler’s Aston Resources before it listed. In 2011 they lost their jobs, but were given six months’ pay and a whole lot of stock in the process. They sold their stock before things got rocky for the sector.   This must be especially galling for Tinkler. BRW doesn’t think his assets exceed his debts. He didn’t make the $18 million cut-off, leaving him entirely off this year’s list. Around this time in 2011, Tinkler was valued at $1.13 billion.   Most of the Young Rich have had a good year. Exactly half increased their wealth this year, while only 16 lost wealth. The rest were more or less steady.   Tech tricks   The full Rich 200 list, for which there is no age limit, is dominated by property developers. But the Young Rich has few of those.   Over one in three (34) of the Young Rich made their money in technology, of which 22 were web entrepreneurs. In the top 10, eight started technology companies.   These include Atlassian founders Mike Cannon-Brookes and Scott Farquhar, steady at number one with a joint fortune of $550 million. They were pegged at $480 million a year ago.   The fastest-rising names in the top 10 are Ruslan Kogan, of Kogan.com, who more than doubled his fortune to $315 million, and Freelancer.com chief Matt Barrie, who’s risen into the top 10 with $185 million (he was pegged at $50 million last year). Both companies are looking at listing on the ASX in the near future, which could see their founders get a lot richer if all goes well.   Reinvesting the profits   If so, they’d be some of the few Young Rich-listers to turn their business success into serious disposable income. For most of the Young Rich, their wealth is ‘paper money’. They own large stakes in highly successful businesses. If those businesses list or are sold, they can cash in some of that ownership.   Until then though, many of the Young Rich are fanatical enough to keep most of their wealth tied up in the one thing.   For example, at Kogan.com, the online electronics retailer, shareholders Kogan and David Shafer reinvest the profits every year. Shafer told BRW their remuneration was on an “as needs” basis.   “Building something is much more exciting,” he said.   Perhaps this need to reinvest profits is driven by Australia’s low venture capital spend. According to a recent PwC report, there is less venture capital available in Australia, relative to our population, than in Israel, the US, Norway, Switzerland, Demark,  Britain, or France.   When capital to expand isn’t readily available, revenue can be the best source of funds.   Slim pickings for women   As always with Australian rich lists, there are few women wealthy enough to make the cut-off.   Only seven women make the Young Rich, of which the wealthiest is Carolyn Creswell ($55 million), of Carman’s Fine Foods. The next wealthiest is Erica Baxter ($40 million), who is in the process of finalising her divorce from rich list-fixture James Packer, which could see her secure another $100 million according to recent reports.   Other women on the list are Lilly Haikin ($40 million held jointly), who bought chocolate café chain Max Brenner to Australia, PageUp People founder Karen Cariss ($25 million held jointly), golfer Karrie Webb ($22 million), MyBudget founder Tammy May ($20 million), and model Miranda Kerr ($18 million).   This story first appeared on SmartCompany.

Employee share scheme warning from start-up mentor, as Ollo Mobile takes out pitching prize

8:19PM | Tuesday, 6 August

Ollo Mobile has won a trip to Silicon Valley after beating nine other start-ups in the Small Team, Big Impact competition in Sydney last night.   The pitching competition was coordinated by cloud technology computing company RackSpace. Ten start-ups with fewer than 10 team members were selected to compete.   Ollo Mobile is a new device and system for panic buttons, which elderly or unwell people can use to alert family members and health authorities when they need help.   The other finalists were OpenLearning, Food Orbit, Projectia, Annexium, AuthoPay, Revolutionise, Clipp, Digital Sorbet and Geepers.   The start-ups pitched to a judging panel of Mick Liubinskas from incubator Pollenizer, Kim Heras from start-up network PushStart, Ruslan Kogan from Kogan Electronics, Chris Ridd, the country manager from Xero, and Robert Scoble, Rackspace’s international start-up liaison.   Scoble told StartupSmart he was excited to see an ecosystem beginning in Sydney, but Australia needed to do more to support entrepreneurs.   “San Francisco and New York have ecosystems, as do Tel Aviv, Beijing and Seattle. London kind of has one and Los Angeles is being built. It looks like Sydney has a good one underway. These ecosystems need to keep the geeks in town, or they leave and go somewhere else,” Scoble says.   Despite the growing ecosystem, Scoble cautions Australian struggles with employee share schemes (ESS) are a fundamental issue that needed to be overcome quickly.   “The laws here aren’t letting start-ups use their stock options and equity to motivate people to shelve their jobs at big companies and come and join start-ups,” Scoble says. “Australia needs to deal with this quickly to support your entrepreneurial talent, or they’re going to leave and take their value with them.”   The federal government announced a review of ESS opportunities in June.   Scoble adds start-ups need access to money, talent, public relations and business expertise to get their companies to the point they’re turning over billions.   “When you’re in San Francisco there is such a strong future culture, you can see it in the streets with people trying new things,” he says. “You need access to the idea that your plans are possible and a city with a great culture that encourages that.”

Kogan wins Supreme Court case against ispONE

5:55AM | Thursday, 2 May

Tech retailer Kogan has won its case against ispONE, following several weeks of tense argument in the Victorian Supreme Court.   Kogan’s counsel Norman O'Bryan told SmartCompany this morning the case was, “won comprehensively on every issue”.   The Victorian Supreme Court has said ispONE breached its obligations under the Master Wholesale Agreement to refusing to permit customers to to recharge their services, and must now pay all of Kogan's costs.   The Court order mandates ispONE must be damages in respect of any losses, with that amount to be determined by the two parties. ispONE must also pay Kogan's costs, including those relating to its abandoned counter-claim.   ispONE – which is a former entrant on the SmartCompany Smart50 - was contacted by SmartCompany this morning, but no response was available prior to publication.   In a statement, Kogan Mobile said the victory means customers can “rest assured that their services will not be unlawfully interfered with by the wholesaler”.   “Today is a win for Australians fed up with paying too much for their mobile phone access,” Kogan said in a statement.   “The migration to Kogan Mobile has been one of the largest in Australian telecommunications history, and with today's result we can only see this migration gathering further momentum."   The case began last month when Kogan took ispONE to court, alleging the company had breached the wholesale agreement because it was refusing to recharge the services of some customers. ispONE argued these customers were using too much data.   Although Kogan had advertised the prepaid mobile plans as providing 6GB of data, some users were judged by ispONE to be using too much in a short space of time, in breach of the company’s acceptable use policy.   ispONE responded to the case by alleging Kogan had engaged in “misleading and deceptive conduct”.   The case heated up two weeks ago when Justice James Judd said he was troubled by the case due to the “distraction it causes to business management’s time and effort”.   Ruslan Kogan, founder of the eponymous business, said on Twitter that although the company has won, the case could harm the business’ reputation.   This story first appeared on SmartCompany.

Ruslan Kogan: Kickstarter is a "glorified video editing competition"

3:49AM | Friday, 15 March

Outspoken internet entrepreneur Ruslan Kogan has lashed out at the crowdfunding industry, saying in an interview with SmartCompany the market is nothing more than a "glorified video editing competition".

Cashing in on the apocalypse: Five earth shattering marketing tactics

3:23AM | Monday, 11 March

For many people, the Mayan end-of-the-world prophecy is simply a hyped-up event that will come and pass without notice, just like every other prediction of its kind.

Kogan becomes a telco, targets dissatisfied customers with prepaid SIMs

3:36AM | Monday, 11 March

Internet entrepreneur Ruslan Kogan is once again expanding his bulging online empire, this time moving into telecommunications, with his company now selling pre-paid 3G cards for use with smartphones and tablets.

Formal Apple apology over Maps app a lesson for SMEs

3:03AM | Tuesday, 12 March

Small businesses have been urged to follow Apple's lead when it comes to corporate apologies, with experts saying Tim Cook's admission of fault over the company's poor-performing Maps app is an ideal way to address severe customer service issues.

2012 BRW Young Rich List – eight standouts from a tech dominated year

9:05AM | Thursday, 27 September

The 2012 BRW Young Rich List has a strong start-up and tech flavor, with Atlassian founders Mike Cannon-Brookes and Scott Farquhar heading the rankings.

Smirnoff controversy prompts Facebook comments warning

8:55AM | Monday, 6 August

Start-ups are being urged to monitor comments left on their Facebook pages, after the parent company of Smirnoff failed to monitor distasteful comments made by its Facebook “fans”.

Kogan slams “antiquated” browser after introducing Internet Explorer 7 “tax”

6:28AM | Thursday, 14 June

Online entrepreneur Ruslan Kogan has fulminated against “antiquated” web browsers, after introducing the world’s first “Internet Explorer 7 tax”, effective as of today.

How do I make my business partner work his fair share?

3:26AM | Wednesday, 14 March

How can I ensure that my business partner puts his fair share of hours into the business rather than, as he currently does, swan in for an hour or so before ‘working from home’?   Choosing the right business partner can make or break your business, and the majority of business partnerships fail, and some fail spectacularly.

Getting ideas across the border

11:55PM | Wednesday, 23 November

A trip overseas might not sound like an obvious springboard for business ideas, but the rise of holiday-inspired start-ups certainly suggests a link between jet-setting and entrepreneurialism.

Start-ups dominate Deloitte Technology Fast 50

11:29AM | Tuesday, 22 November

Online powerhouses Catch of the Day, Kogan Technologies and RedBalloon are among the companies to appear in this year’s Deloitte Technology Fast 50 list, which also features iiNet, Atlassian and OzForex.

By Dezign named Australian Independent Retailer of the Year

11:54AM | Tuesday, 15 November

Furniture retailer By Dezign has been named Australian Independent Retailer of the Year, while eyewear company eyeclarity has been named Retail Innovator of the Year.

prev
12
loading...
loading...
loading...
loading...