Appster

Appster was an Australian app development company, founded in 2011. It developed mobile, web and wearable apps for startups, public figures and enterprises. The company was once touted as the "next Apple" by analysts due to its fast growth.[1] The company stated their ambition was to be the world's first ideas company. Appster stopped functioning as a company on 7 December 2018 due to collapse.

Appster
TypePrivate
IndustryApp development
Founded2011
Area served
Worldwide
Websitewww.appster.com.au

History

Appster was launched in June 2011 by 19-year-olds Mark McDonald and Josiah Humphrey, with $3,000, originally as a digital agency consulting to online e-commerce companies on conversion rate optimization.[2] It soon evolved into a software-development and digital product strategy firm.

During 2011 they hired over 15 staff in Melbourne, Australia and completed over 20 apps.[3]

In 2013, Appster hired CTO Martin Halford to expand outside Australia, forming a company in Gurgaon, India, establishing its first international office.

In 2014, Appster had over 100 staff globally. The company opened an office in San Francisco with 5 full-time staff and estimated revenues in the Australian market of $10 million.[4][5][6][7]

By 2015 the partners appeared on the AFR Young Rich List[8] with a combined net worth of $58 million. The also made it to the Forbes' 30 Under 30 list.[9]

In February 2015, Appster partnered with Hobart's New Town High school in Tasmania to give students a hands-on experience coding and designing gaming apps.[10][11] The company also attracted widespread media attention over its gruelling job interview process.[12]

Right before the company failed, it had over $19 million in revenue yearly with 400 employees located in four international offices. [13]

On 7 December 2018, Appster announced that it collapsed because of failed projects and entered liquidation proceedings. Several business owners were owed hundreds of thousands of dollars at the time of the collapse. More than 200 people were unemployed and the company failed to honor its employment contract with its employees. No employee was paid any salaries or dues and the founders were unable to face its employees while conveying that the company had closed[14] The administrator of the liquidation, Paul Vartelas of BK Taylor & Co. liquidators said that the main reason for the collapse of Appster was a "sharp drop" in available work during the prior 6 months before the collapse, which led to lost revenue and missed targets.[15]

In 2019, it was reported that the liquidator is rallying creditors to pursue legal action against founders Mark McDonald and Josiah Humphrey, alleging they traded while insolvent.[16]

Awards

References
  1. Lim, Jason. "Aussie Startup Appster Adds Former Founding PayPal CFO And Virgin Australia Executive To Its Board". Forbes. Retrieved 2020-12-10.
  2. "Subscribe to The Australian | Newspaper home delivery, website, iPad, iPhone & Android apps". www.theaustralian.com.au. Retrieved 2020-12-10.
  3. "Elegant Media makes bid for Appster assets". Australian Financial Review. 2018-12-12. Retrieved 2020-12-10.
  4. "Why a Melbourne app company is moving to New York with plans for over 40 offices". smartcompany.com.au. Retrieved 13 August 2014.
  5. "Appster cashes in on modern gold rush". theaustralian.com.au. Retrieved 13 August 2014.
  6. "The truth about Appster and how they attracted the man that helped grow iSelect to join the company". startupdaily.com.au. Archived from the original on 4 August 2014. Retrieved 13 August 2014.
  7. "Two Teenage Dropouts With $3,000 and No Business Training Could Be Building the Next Apple". Inc. Retrieved 7 July 2015.
  8. "Appster's owners to debut on BRW Young Rich list". Australian Financial Review. 2015-10-25. Retrieved 2019-08-21.
  9. ""Where did the money go?": How Appster went from riches to ruin". SmartCompany. 2019-02-15. Retrieved 2019-08-21.
  10. "Australian startup Appster is teaching schoolkids how to code". Business Insider Australia.
  11. "High school teaches app creation". Financial Review.
  12. "Could you survive this 22-hour job interview?". NewsComAu. 2015-02-19. Retrieved 2020-11-17.
  13. Hobbs, Chris. "Council Post: The Hidden Perils Of Rapid Growth". Forbes.
  14. https://www.afr.com/technology/young-rich-listers-tech-startup-appster-collapses-after-tough-four-months-20181207-h18ul9
  15. "Multimillion-dollar app development company Appster collapses into liquidation, leaving businesses stranded". SmartCompany. 2018-12-06. Retrieved 2019-08-21.
  16. "Appster may have traded while insolvent and made $750,000 in "concerning" payments, liquidator claims". SmartCompany. 2019-03-05. Retrieved 2020-11-17.
  17. "BRW Most Innovative Companies 2014: 27. Appster". BRW. Archived from the original on 2015-12-22. Retrieved 2015-12-22.
  18. "50 Most Innovative Companies 2014". BRW.
  19. "2015 Finalists - Telstra Business Awards". Telstra Business Awards. Archived from the original on 2016-04-05.
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