A quick Google search for inspiring start-up success stories these days sees a myriad of results returned, from the glamorous and well known like Uber and Facebook to the more obscure coming out of the burgeoning Indian start-up ecosystem.
Whilst no one start-up story is the same, like all great innovators over time a few key themes emerge, namely the presence of a strong entrepreneurial spirit, a desire to find a solution to a problem and an insatiable need to learn and grow. Opinion however seems to be divided when it comes to the role of chance in the success of a start-up.
CrowdfundUP
Founder and Managing Director
Jack Quigley
Launching CrowdfundUP in 2013 as Australia’s first real estate crowdfunding platform, founder and Managing Director Jack Quigley came from a family of lawyers, so perhaps unsurprisingly began his journey undertaking a law degree. Disengaged with his studies, Mr Quigley decided to put law school on hold to run an import/export business, taking the opportunity to build his commercial experience.
At this point Mr Quigley noted that all his friends were finishing their degrees and getting jobs, so decided to finish the law degree he had started.
Upon graduating, he was offered a job with a large law firm where he worked for two years before leaving to start CrowdfundUP.
“My job just wasn’t ticking all the boxes for me,” he explained. “I was itching to start my own company and craved the flexibility and self direction that would come with it.”
It was from this that CrowdfundUP was born.
“I began CrowdfundUP four years ago, before anyone really knew what crowdfunding was. At the time, everyone told me I was crazy, that there were too many regulatory hurdles to overcome and that capital raising for a project like this was difficult.”
Staying fairly true to entrepreneurial lore, Mr Quigley left his corporate law job with no definitive product to take to market, confessing: “It was a big leap of faith.”
By chance, Mr Quigley was introduced to Sherif Andrawes and Peter Toll from BDO in Perth, both of whom worked in the corporate finance space.
Ensuing discussions saw Mr Quigley share his vision for CrowdfundUP with Mr Andrawes and Mr Toll, spurred on by the work that the BDO Netherlands office was undertaking during 2012 in the alternative finance space.
Subsequent meetings and discussions demonstrated the innovative nature of BDO as a firm, its global reach, experience and expertise.
“At the time I was a lone pioneer and was accompanied on this journey by both Sherif and Peter. It was around this time that I heard from them about the ‘Lend It’ conference in the USA, one of the world’s largest shows in lending and fintech. My attendance at this conference further cemented my desire to make CrowdfundUP a reality.
“It took over two years to sort out the requirements for an AFSL with ASIC. Sherif was instrumental in assisting to draft the operating procedures required by ASIC to give them confidence that the companies, on what was to become the CrowdfundUP platform, were credible and that what they were purporting to offer was actually achievable.
“It was at this point that I got to experience firsthand the power of the BDO network,” said Mr Quigley.
“I was introduced to Sebastian Stevens, the head of property and real estate in the BDO Sydney office, and it was through Sebastian I was given the opportunity to present to their clients.
I was also introduced to Hung Tran in the BDO Brisbane office where I was extended the same opportunity. Through these introductions I had genuine opportunities to gather knowledge, share experiences and build my networks.
“Back in WA, Natalie Milne, Research and Development (R&D) Tax Partner for BDO in Perth has been invaluable in the grants, commercialisation and export development space for CrowdfundUP – this particularly being the case now that we are looking to move into China, a region where BDO has a significant market presence.”
When asked about his advice for budding startups, Mr Quigley notes the elusive but critical balance that is needed in the start-up space where things move so quickly – the equilibrium between progress, marketing, human resources, costs, debt, capital raising and regulatory changes. In respect to costs, it can be difficult to find the right professional service organisations when it comes to servicing the start-up community. Early on, costs are a limiting factor for all start-ups, however in the case of BDO and CrowdfundUP, this was far from the case, with CrowdfundUP growing with BDO at its side.
Coming from a professional services background, Mr Quigley highlights the contrast between this and the start-up space where perfection is not the be-all and end-all of delivering product. As he says, ‘Run fast and break things’, a function of the hectic pace of the start-up arena means there is no time for sign-off procedures – simply execute, test and then release.
“Build your product for the best 10% of your customers – they will forgive you for the bumps along the software development road”.
So then, what does the future hold for CrowdfundUP?
According to Mr Quigley, who is still enjoying the high pressure ride four years on, “This is classic disruption of financial services – where old world licensing meets new world technology. I am looking forward to continuing to grow and expand our relationship with BDO and welcome the introduction of equity crowdfunding in Australia.
“This new legislation leads to current early stage IPO’s and reverse takeovers being replaced by capital raisings achieved through equity
crowdfunding. We will see companies going to the ASX later for higher value initial listings. In this way greater value will be retained for founders and early stage investors.”
As for the role of chance? Perhaps the saying ‘it takes a village to raise a child’ can be applied to them start-up space.
