Startups

Appetiser’s co-founders discuss building client relationships and getting to MVP

Comment

Green men forming a human pyramid and getting greener as they reach the top.
Image Credits: danleap (opens in a new window) / Getty Images

Appetiser‘s site lists three factors for app success: Technology, marketing and design. And while the Australian agency was recommended to TechCrunch via our our survey to identify software development partners for startups, it could just have well have come through our survey to recommend growth marketers, which you can answer here.

With a focus on designing, building and growing mobile and web apps, Appetiser’s co-founders Jamie Shostak and Michael MacRae were endorsed by several clients who worked with them from the earliest days of their projects. “Every startup has to start with an idea. And some of the best startups can come from people who experience the problem firsthand, even if they are not the most technical,” Shostak noted.

TradeNow, an Australian pay-later financing option for trade businesses and their customers, is one such customer. “The Appetiser team has developed great leading applications and also believed in the vision of TradeNow from the very start,” its founder Matt Brennan wrote. “We were able to develop a great working relationship early on and continue this along the journey.”

Fellow entrepreneur Andre Eikmeier praised the flexibility of Appetiser’s model. “We were able to use our CTO to lead a team of six devs from the Appetiser team, with occasional UX/UI, product management and project management as needed. It was properly collaborative, not a blackbox agency arrangement. So we were able to build capability in-house at the same time, rather than dependency.”

To find out more, we interviewed both Shostak and MacRae, in a discussion that went from prototyping to growth, and from MVP to design excellence.

Editor’s note: This interview has been edited for length and clarity.

What’s Appetiser’s origin story?

Jamie Shostak: Back in 2017, I ran into a tall German guy at the coffee machine of a co-working space in Melbourne: Michael. He had apps with millions of users, and I was running a growth marketing agency. After getting to know each other, we discovered a mutual passion for building and growing tech products. We had some healthy debates and identified how we could help others with their own product’s success: Speed to market, data-driven insights, top-level quality and strong teams. And that’s how Appetiser was born.

What size is your team now, and how is it structured?

Michael MacRae: We have a team of 150 in Asia and 30 people in Australia. Our teams are built around efficiency: Small, client-embedded production squads comprising iOS, Android and back-end developers, as well as UX designers, product managers and QA/PM specialists. These squads work together in an agile environment and scale up or down based on the needs of the project. Appetiser itself is relatively flat, with a huge focus on data-driven decision-making via iterative testing.

One of your clients told TechCrunch that Appetiser is “the opposite of a blackbox.” What does that mean?

MacRae: The “Telephone Game” is a popular children’s game to teach us the consequences of messages traveling from person to person. Sadly, agencies love “shielding” their team of developers, testers and designers from clients by introducing layers. Simply put, we do the opposite. When we build your team at Appetiser, it will be your team! Join standups, ideate with your team, discuss challenges or even have one-on-ones. We replicated the structure of successful startups with in-house teams, and then we rebuilt it in an agency form.


Help TechCrunch find the best software consultants for startups.

Provide a recommendation in this quick survey and we’ll share the results with everybody.


Your site mentions that beyond designing and building apps, you are your clients’ “growth machine.” Can you explain?

MacRae: The vision for Appetiser was never to be an app development company. Instead, we think of ourselves as a product success agency. Simply put, we try to maximize the chances of a product becoming a success story. We measure how many of our apps become successful, how many users they’ve got, how much revenue they generate and how much money they raise.

Our entire team is held accountable to these success metrics, which means we do whatever it takes to help our clients get there. This may include design, development and growth, but often it’s also strategy, help with fundraising and more.

Why does your strategy require defining a minimum viable product (MVP)?

Shostak: We’ve spent years refining internal IP based on data to rapidly deliver reliable, high-quality products. We use this to help entrepreneurs get to market fast with an MVP.

MacRae: Defining that MVP comes down to creating real-world value but also emotionally detaching ourselves from nice-to-haves. They can always be added later! As a result, we reduce the amount of time and iteration cycles to find product-market fit. Our clients save time and money, which will be invested into growing their products. Our client Move With Us used this approach to cut development timelines in half, resulting in them gaining huge traction in both Australia and the U.S.

But before that, you do prototyping. Why?

Shostak: Whether you’re someone with an idea or a big business, we always start with a standalone design stage and interactive prototype. It allows us to visually scope out the project whilst building an industry leading front-end experience. In Steve Jobs’ words, we like to start with the user experience and [work backward to the technology].

This also acts as a great starting point to raise capital, get stakeholder buy-in or validate their idea before taking steps into full development. We’re extremely proud of clients like Good Empire and Vello that have been able to raise [funding] even before development.

Why do you value design quality?

MacRae: On the App Store, you’ve got seconds to convince a user to download your app. On the web, if you don’t convert a visitor within seconds, they’re gone forever. So at first, design excellence is a matter of understanding what users desire. This accelerates user acquisition. And once you’ve signed up your user, a strong user experience retains them.

We also believe that product design is not just a creative field; it’s a matter of performance: One design will always outperform the other. We try to centralize the learnings from all of our projects to design based on proven tactics to minimize risky assumptions.

How do you share knowledge internally?

MacRae: Appetiser has created more internal IP than a majority of agencies. This includes our baseplate; our gold standards to unify the team based on best practices, which a large portion of our team ongoingly investigates, tests and iterates upon; and our educational materials and courses.

For the latter, we established the Appetiser University. It has a growing curriculum of production-relevant topics such as standards, best practices and guidelines, and also covers topics like economics, CRO and data analysis. Appetiser employees even have weekly exams that ask them to apply their learnings.

What are some of your plans for the next year?

Shostak: With a remote-first culture, our plan was always to hire the best talent in the world. This started with a focus first on Asia Pacific. So far we’re in Davao, Cebu, Manila, Melbourne and Sydney. In 2022, we are looking to expand this across a few more continents [ … ] and you can expect to see us in the U.S. within the next 12 months.

In addition, starting in 2022 and beyond, we want to build our own startup community and platform, and expand that globally. From partnering with investors, crowdfunding platforms, lawyers and accountants to creating our own educational content. We want to enable startups to conquer international markets. And we’re also currently building an incubator called Appetiser Ventures, where we will help accelerate clients’ startups further and even potentially build some internally.

More TechCrunch

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

7 hours ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

8 hours ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo

Sony Music Group has sent letters to more than 700 tech companies and music streaming services to warn them not to use its music to train AI without explicit permission.…

Sony Music warns tech companies over ‘unauthorized’ use of its content to train AI

Winston Chi, Butter’s founder and CEO, told TechCrunch that “most parties, including our investors and us, are making money” from the exit.

GrubMarket buys Butter to give its food distribution tech an AI boost

The investor lawsuit is related to Bolt securing a $30 million personal loan to Ryan Breslow, which was later defaulted on.

Bolt founder Ryan Breslow wants to settle an investor lawsuit by returning $37 million worth of shares

Meta, the parent company of Facebook, launched an enterprise version of the prominent social network in 2015. It always seemed like a stretch for a company built on a consumer…

With the end of Workplace, it’s fair to wonder if Meta was ever serious about the enterprise

X, formerly Twitter, turned TweetDeck into X Pro and pushed it behind a paywall. But there is a new column-based social media tool in town, and it’s from Instagram Threads.…

Meta Threads is testing pinned columns on the web, similar to the old TweetDeck

As part of 2024’s Accessibility Awareness Day, Google is showing off some updates to Android that should be useful to folks with mobility or vision impairments. Project Gameface allows gamers…

Google expands hands-free and eyes-free interfaces on Android