END OF YEAR REPORT | 2016
STONE & CHALK CELEBRATES ITS 1ST BIRTHDAY!
THE CENTRE OF GRAVITY
FOR FINTECH IN
It has been an exciting first year at
Stone & Chalk.
As we celebrate our first anniversary, it is a chance to reflect on the projects and
initiatives that Alex and the team have tackled over the last twelve months.
Our community has grown and our services expanded. We’ve curated a
program of unique Masterclasses and launched a series of Ecosystem Talks.
Stone & Chalk’s corporate partners are now a larger and more engaged group
than ever before, resulting in more industry challenges being addressed and
more benefits being delivered to our community.
We’ve made huge ground on key initiatives, such as our Fintech Asia
Program, and following on from our annual National Fintech Cyber Summit,
held in collaboration with the CSIRO’s Data61, KPMG and the Australia-Israel
Chamber of Commerce, we are now looking for partners to help us launch the
first Cyber Security Innovation Lab.
It is hard to believe that this time last year, Stone & Chalk had just
opened. We’re a startup just like our residents and the many more in the
Fintech ecosystem we support. In the last 12 months, we’ve become a
community. Thank you for continuing to support Stone & Chalk through its
next phase of development and we look forward to sharing new projects,
adventures and successes with you.
CHAIR OF STONE & CHALK
“We’re a startup just like our residents and the many
more in the Fintech ecosystem we support.
In the last 12 months, we’ve become a community.
On behalf of Stone & Chalk, I’d like to say thank you for being a part of this exciting
journey. In our first twelve months, we have packed in a lot more
than we had ever imagined possible. When we opened and rang the bell for the first
time on the 25th August 2015, we had 40 startups and 100 individual residents. Just
one year later, we’re proud to say that we’ve got a mix of 95 full-time and part-time
startup companies and 294 of the brightest minds in fintech who call Stone & Chalk
their home. The growth of our community over the last 6 months has been so strong
that we have expanded to take over an entirely new floor of 70 desks on Level 1.
Many people ask me to explain to them what Stone & Chalk is and admittedly when I
respond with “we are an innovation hub” it still leaves them with a lot of blanks. So the
longer answer is that we are a physical platform that acts as a bridge connecting incredible
startups with corporates, governments, investors and mentors. Our focus is on helping
startups commercialise their propositions and helping those that have already launched to
subsequently scale both locally and internationally. On the other end of the equation, we
also help corporates and governments transform their internal culture, build their internal
innovation capability and assist them to successfully partner with startups to deliver great
outcomes for their customers.
What I’m most proud of is the very direct and tangible
contribution we have made in helping our residents secure
just over $101M of direct investment
during the 12 months they have been here at Stone & Chalk!
This milestone, together with the volume of commercial deals
they have struck and the new high tech jobs they have created
is our ultimate measure of success. This is what all our efforts,
initiatives and programs are designed to help them achieve.
We are grateful for being visited by the Premier for the launch of Jobs for NSW,
as well as the Prime Minister for the launch of the National Innovation and Science
Agenda and the announcement of the H2/First State partnership. The Treasurer
chose Stone & Chalk as the place to announce his plan to ‘Back Australian Fintech’
and on other occasions we’ve welcomed Anthony Roberts, Ed Husic, Jason Clare
and Wyatt Roy to discuss aspects of policy.
We’ve also had the pleasure of welcoming over twenty delegations from around the
world, including countries as diverse as:
• Japan • China • United Kingdom
• Singapore • Malaysia • Israel
• United States • Korea • South Africa
These delegations have comprised of senior executives, fintech companies,
investors, governments, banks and regulators, all wanting to know what Stone
& Chalk is about and get an understanding of how we are helping to build the
ecosystem. We’re so excited to reach this 1st birthday milestone and we show no
sign of slowing down. Thank you for sharing an incredible twelve months with us,
and we look forward to our collective journey ahead.
CEO OF STONE & CHALK
“Our focus is on helping startups commercialise and scale, both locally and
YEAR ONE: THE NUMBERS GAME
TOTAL CAPITAL RAISED
• 40 STARTUPS
• 100 INDIVIDUAL
• 95 STARTUPS
• 294 INDIVIDUAL
+$50M startup fund raised by
THE H2 VENTURES
From the early days of ‘Sweet Spot’ - our weekly community standup where residents share their
successes over sweets, to our popular Masterclass series showcasing thought leadership from
across the globe, to a host of Corporate Partner events such as networking drinks, Office Hours and
Lunch Learns; we have counted well over 500 events in the past year.
Community events empower, enable and uplift the broader Fintech ecosystem. We’re proud to
have delivered, sponsored and supported a number of these important events, to name a handful:
Govhack Hackathon 2016, Spark Festival (Sydney StartUp Week), HackerX speed dating for Devs,
Startup Weekend powered by H2 Ventures (Australia’s only Fintech Accelerator based here
at SC), and a host of ‘Meetups’ such as Women In Fintech, Sydney Fintech, Blockchain and
We have become a preferred venue for many of Sydney’s leading Financial Services firms,
looking to spice up their team offsites and expose their clients to money can’t buy experiences.
In June this year we launched our Ecosystem Talks, which aim to draw from the wealth of
expertise that exists amongst our resident base, and share that knowledge with the wider
Our Community has seen 20 companies launch this year,
most being held onsite with media in attendance. We had
our first Stone Chalk alumni grow up and leave the nest.
Congratulations to Venture Crowd, Ordermentum, Full
Profile Rain Check!
The calibre of our first birthday celebration, which was coordinated by our FUNtech Committee,
suggests our that we have come such a long way and there is so much to celebrate. Not only
did we rock the theme Go For Gold, but we’re pretty sure we’ve set a new record for most
champagne corks popped simultaneously in a Sydney hub. We can’t wait to see what next year
IF YOU’RE INTERESTED IN HOSTING AN EVENT AT SC, WE’RE ALWAYS KEEN TO HOST OTHERS IN THE FINTECH ECOSYSTEM.
GET IN TOUCH WITH EVENTS@STONEANDCHALK.COM.AU FOR MORE DETAILS!
COMMUNITY EVENTS UPDATE
“We have built a vibrant and diverse community that is the lynchpin for Australia’s fintech ecosystem -- something we’re all very proud of.” - Annie Le Cavalier, Community Manager
FINTECH ASIA PROGRAM
The Fintech Asia Program has taken off, with the launch of our Incubation Exchange
in July. The three selected Chinese startups have commenced their residency at
Stone Chalk, and after an exciting launch, have been hard at work bringing their
businesses into the Australian market. In the months to come, along with a curated
series of events and engagements, there will be opportunities for our resident to
collaborate with these startups. Welcome to the community, S.Capitol, RoyalPay
MEGI Software (Shanghai) Co. Ltd
As the “Xero for China”, MEGI are providing cloud-based
accounting software for entrepreneurs and companies in Asia.
The purpose of the software is to reduce time spent on data entry,
as well as automating complex, repetitive tasks and improving
collaboration between people within the business. With a well-
rounded team from China, Singapore, Hong Kong and Australia,
they are well placed to take advantage of the market.
Best described as the “QR-code-POS for SMEs”, RoyalPay has built
Australia’s first one-stop mobile payment and payment-collection
platform. It can be connected with current mainstream mobile
payment terminals in the market. Their current focus is on providing
mobile payment services to Chinese tourists’ outbound consumption.
S Capitol are ‘a bank for entrepreneurs’, founded in February
2015. As a market pioneer, they are taking advantage of the
thousand-billion scale corporate cash financial market in China.
They aim to streamline cash management for startups and make
the process more enjoyable. They are currently taking care of
over 1.2 billion RMB cash for young companies, and have provided
financial services for over 1,000 startups.
BECOMING STARTUP READY
Stone Chalk and FusionLabs have been collaborating
to develop a Startup Ready program to assist corporate
Australia maximise the benefit of working with startups.
Co-creation sessions have been held with entrepreneurs from Fishburners and Stone Chalk and
representatives from our corporate partners to brainstorm what they wanted to learn from the
program. Our new Head of Innovation, Andrew Purchas, has been hard at work developing materials
our corporate partners will need in order to help them collaborate with startups. We are in the final
stages of building the curriculum and look forward to sharing the outcome of months of preparation,
consultation and collaborations. Watch this space!
CORPORATE PARTNER UPDATE
This year, we’ve built an impressive portfolio of twenty-three engaged corporate partners. In some
cases, corporates have taken on our startups as suppliers, while in other instances they have
become customers of startups that offer a solution to a problem within their business. We even
had one corporate partner, CMCRC, invest in one of our startups, Ordermentum.
Throughout the year we’ve hosted fortnightly Office Hours with specialists from our corporate partners,
providing our residents with access to industry expertise. A number of executive teams have also
attended our Executive Education Sessions, which aim to help corporates better understand the fintech
ecosystem and hear from our startups. In the last three months, we’ve seen 2 new corporate partners
join our community (shout out to our new friends at CUA and EY !) join our community and existing
partners renewing their commitment and ramping up their engagement with our residents. A number
of our partners have also held events and offsite training sessions, fintech-focused cocktail events and
boardroom sessions. Foundation partners, whose joint financial and professional contributions of more
than $2million have made the operation of SC possible are: Allens, American Express, AMP, ANZ,
Australian Stock Exchange (ASX), Capital Markets CRC, CUA, EY, FINSIA, Finzsoft (NZ), HSBC, IAG,
IBM, KPMG, Macquarie Group, Optus, Oracle, Suncorp Bank, TAL, Thomson Reuters, Veda, Westpac and
At any one time, 15 of our startups are looking to recruit top talent to
help them grow their businesses, and who better to provide an injection
of fresh ideas than the best and brightest university students from all
This year we hosted two rounds of the “Fintern Fever” Program, which resulted in the
placement of over 30 university students in roles within our startups, with 7 of them
moving into full-time paid employment. Our events space was twice transformed into a
series of interviewing stations, and university students and entrepreneurs swarmed in
the hope that they would recruit the perfect match for their startup. Fintern Fever is a
collaboration between CSIRO and Data61’s career service, Ribit, FINSIA and Stone Chalk.
WOMEN IN FINTECH
One of our earliest initiatives has been to build a program designed to increase
female representation in the fintech sector.
Only 4% of global banking CEOs are women
The objective of the Women in Fintech initiative is to, as a technology and business community, address
this gender imbalance. We want 50% of startups at Stone Chalk to include a female founder by 2020,
which we’re calling our ‘50/20 goal’. A more inclusive, diverse and collaborative sector that is designing
services for all of the market will be of significant commercial benefit, and we are preparing to launch a
Design Challenge to bring the ideas of female fintech founders to the fore. With our Women in Fintech
partners, we will support startups through 3 key areas; funding, customers and expertise.
NO. OF FEMALE RESIDENTS AT SC
The first round of the Mentor Program has closed and the feedback
was fantastic. We received 350 applications to become a mentor,
and 61 matches were made between our residents and top calibre
mentors, with the formal relationship lasting 4-months.
This resulted in over 250 face-to-face meetings and hundreds of emails. Our residents told
us that they were encouraged to think laterally and explore different ways of approaching
issues and challenges, as well as gaining media coverage and being introduced to potential
commercial investors. Our mentors agreed that the experience had been particularly rewarding,
saying that despite bringing experience and insight to the relationship, they were also
constantly learning. We had one mentor invest in their mentee’s business while another became
the Chair as a result of the mentorship! Given the great results of the first round, we’ve just
launched Round #2 and can’t wait to hear what’s achieved.
1000+ MENTORSHIP INTERACTIONS
MATCHES BETWEEN STARTUPS MENTORS
APPLICATIONS TO BE A MENTOR
44 QUALIFIED LEAD MENTORS FINISHED THE
Thank you to our incredible lead mentors!
WE LOOK FORWARD TO ACKNOWLEDGING MORE PEOPLE AS OFFICIAL SC LEAD MENTORS DURING THE
NEXT MENTOR PROGRAM DUE TO START IN OCTOBER 2016
“STRONG CYBER SECURITY IS A FUNDAMENTAL ELEMENT OF OUR GROWTH AND PROSPERITY IN A GLOBAL ECONOMY... IT REQUIRES PARTNERSHIP
INVOLVING GOVERNMENTS, THE PRIVATE SECTOR AND THE COMMUNITY.” - AUSTRALIAN GOVERNMENT, CYBERSECURITY STRATEGY
This year, we launched our National Cybersecurity Innovation
Program, looking to develop our cybersecurity capabilities
and give Australian fintech businesses a competitive
advantage in the global marketplace. We have all the
ingredients to succeed, given that Australia is home to top
universities, has access to excellent local and global talent,
has a digitally advanced financial services industry and a
supportive set of government policies.
Announced in February, the three components of the
• Firstly, the National Cybersecurity Summit (which was
held in May 2016)
• Secondly, the Cybersecurity Design Challenge which
will commence in the second half of 2016
• Followed by the launch of the Cybersecurity Innovation
Lab ( phases two and three are currently accepting
Expressions of Interest to become a partner/sponsor).
In May, we engaged with the Prime Minister’s Cyber
Security Task Force, and partnered with CSIRO’s Data61,
KPMG and the Australia-Israel Chamber of Commerce
(AICC). Our aim was to convene international experts
with key stakeholders to discuss local cybersecurity
capabilities and opportunities, as well as enabling
collaboration between academics, startups, government
and the private sector. Speakers included Dr Alan Finkel
(Australia’s Chief Scientist), David Thodey (Chair, CSIRO
and JobsNSW) and Lynwen Connick (Cyber Policy and
Intelligence, Department of Prime Minister and Cabinet).
This was the first Summit of its type in Australia, bringing
together industry, startups, government, universities
and thought leaders. It was followed up by a Masterclass
presented by Ron Moritz, Consigliere on Cyber Technical
Due Diligence, who is usually based in Israel but was in
town for the Summit.
In early September, we will be releasing our Cyber
Security Report, which will outline the critical issues and
key themes stemming from the Summit.
CPDone has secured additional funding,
signed up corporate customers and added
new partners to their network. They have
secured a large sale in Indonesia, enabling
access to a market of 40,000 financial services
professionals, along with new customers in
Australia and Singapore.
Commencing their residency this quarter,
Ezidox have met a wide array of other Stone
Chalk startups who have been willing to help
and support them on their journey. They have
also met with an amazing selection of
corporates that are actively seeking innovative
ideas, and say that they have benefited from
increased credibility as a result of the
association with Stone Chalk.
Edstart have been granted a credit licence
from ASIC, launched their first product into
the market, experienced early traction to
confirm product/market fit, received their
first revenue and graduated from the H2
Map My Plan have raised additional seed
funding and launched their white label
solutions for advisory firms, industry super-
funds and employers. They have focused on
improving the functionality of their site and
announced Hon Bernie Ripoll as a Director of
Map My Plan.
QuietGrowth, the Automated Investment
Manager (AIM), has introduced a new
automated feature that allows clients to
modify their personal circumstances, receive
an updated Statement of Advice, and change
the risk tolerances of their portfolios at no
PayNow have significantly advanced their SME
finance digital marketing and asset origination
web-based platform. They have developed
their P2P strategy, scoped out and developed
a handheld invoice finance generator and
launched their PayNow Card in gift-card pilot.
IUNGO have closed two pilots and have signed
up a strategic corporate partner. Most
importantly, they have finalised their
technology and are able to showcase it and
run product demonstrations of their complete
Brighte successfully closed their seed funding
round. They have written their first loan and
started their pilot program. Staff numbers are
growing daily and they’ve now got an
experienced team that is ready for business.
WordFlow have signed three government
clients and opened POC negotiations with
three financial services companies. They have
engaged with ASIC, joined the Fintech
Association and attended more than 10 events
Mafematica have had serious interest from
wholesale distributors in the financial services
industry. They’ve raised $70,000 cash, secured
a Business Development Manager, and
attended the Money Management conference
as a speaker, organised by Stone and Chalk.
RESIDENT NEWS: THE LAST 3 MONTHS
Macrovue have been granted an AFSL license, won pitches at
Afiniation in Melbourne and the Money Management
conference, raised a bridge round of capital, expanded the
team and are readying up for their launch!
CapitalPitch have launched CapitalPitch Ventures Fund 1, an
active lead investor for $250k - $3m into high growth startups.
They have secured a partnership with the Tulla Group (Maloney
Family office) and conducted Bootcamps for 40 high potential
DSYNC are preparing for their launch at TechCrunch Disrupt in
San Francisco. They will also be attending shop.org and Oracle
Open World. DSYNC has been selected by KPMG for the
exclusive mLabs program and are currently in negotiations with
a bank for services.
EPG continued to grow their business, developing their
understanding of their target market and the consumers they
set out to help. In the next quarter, they will continue to
innovate and find new revenue opportunities.
FCS have secured a regional distribution deal with a global
consulting firm, undertaken commercial pilots and increased
shareholder value by 4 times. They have improved their
solutions as a direct result of extensive peer reviews with Stone
Chalk’s corporate partners and have a diverse sales pipeline
which they are actively pursuing.
Onecheck have built their demonstration app for iPhone,
complete with mobile SMS authentication, Optical Character
Recognition of ID documents and a ‘selfie’ with liveness
detector for facial recognition against ID. They have also
developed patent-pending Script Validated Video Identity,
linking a “real” person to the transaction.
Ripple have signed up the biggest bank in the Middle East
(National Bank of Abu Dhabi) and commenced
implementation. They will sign a global bank by the end of
August and are looking to be working with Asian banks by the
end of September.
RESIDENT NEWS: THE LAST 3 MONTHS
LEVEL 2, 50 BRIDGE STREET
SYDNEY NSW 2000
SOME THINGS ARE SET IN STONE.
THE REST IS WRITTEN IN CHALK.