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

Copilot, Microsoft’s brand of generative AI, will soon be far more deeply integrated into the Windows 11 experience.

Microsoft Build 2024: All the AI and hardware products Microsoft announced

Hello and welcome back to TechCrunch Space. For those who haven’t heard, the first crewed launch of Boeing’s Starliner capsule has been pushed back yet again to no earlier than…

TechCrunch Space: Star(side)liner

When I attended Automate in Chicago a few weeks back, multiple people thanked me for TechCrunch’s semi-regular robotics job report. It’s always edifying to get that feedback in person. While…

These 81 robotics companies are hiring

The top vehicle safety regulator in the U.S. has launched a formal probe into an April crash involving the all-electric VinFast VF8 SUV that claimed the lives of a family…

VinFast crash that killed family of four now under federal investigation

When putting a video portal in a public park in the middle of New York City, some inappropriate behavior will likely occur. The Portal, the vision of Lithuanian artist and…

NYC-Dublin real-time video portal reopens with some fixes to prevent inappropriate behavior

Longtime New York-based seed investor, Contour Venture Partners, is making progress on its latest flagship fund after lowering its target. The firm closed on $42 million, raised from 64 backers,…

Contour Venture Partners, an early investor in Datadog and Movable Ink, lowers the target for its fifth fund

Meta’s Oversight Board has now extended its scope to include the company’s newest platform, Instagram Threads, and has begun hearing cases from Threads.

Meta’s Oversight Board takes its first Threads case

The company says it’s refocusing and prioritizing fewer initiatives that will have the biggest impact on customers and add value to the business.

SeekOut, a recruiting startup last valued at $1.2 billion, lays off 30% of its workforce

The U.K.’s self-proclaimed “world-leading” regulations for self-driving cars are now official, after the Automated Vehicles (AV) Act received royal assent — the final rubber stamp any legislation must go through…

UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026

ChatGPT, OpenAI’s text-generating AI chatbot, has taken the world by storm. What started as a tool to hyper-charge productivity through writing essays and code with short text prompts has evolved…

ChatGPT: Everything you need to know about the AI-powered chatbot

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender SoLo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google is launching a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

OpenAI is removing one of the voices used by ChatGPT after users found that it sounded similar to Scarlett Johansson, the company announced on Monday. The voice, called Sky, is…

OpenAI to remove ChatGPT’s Scarlett Johansson-like voice

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days.

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

1 day ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

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