The problem with Silicon Valley Startups

I was recently reading a newsletter by Angel List, I really enjoy their newsletters as they curate lists of new startups working on innovative solutions to problems, who has raised money and who is hiring in a very concise manner.

As I scrolled through the startups for some reason I was reminded of an insightful and honest conversation I had with Emerson Tan CEO of Mautinoa Technologies (A fin-tech startup), at Deakin Downtown during the Centre for Humanitarian Leadership's Conference.

We talked about startups in places like Silicon Valley, how they provide solutions that will only ever be Silicon Valley solutions - affluent areas with first world problems.

I noticed in the last email from Angel List, looked a little like this:

So much capital invested in in companies that add very little value to society. Of course these products sell. But are they improving our society? Is this what we want to back? You've probably already heard about the infamous $400 juicer by Juicero that raised $100 million from Venture Capitalists and it turned out the 'packets' of juice made for the juicer could be squeezed by hand.

I reflected on SPARK Deakin, and the startups we have selected for our accelerator program in the past at Deakin University. A really good case study is a startup we backed that made face masks for women. We saw Michael and Lucy's ambition, their resourcefulness of taking the business from 0-10 000 paying customers in very short period of time using Instagram and very little marketing budget.

Yet I recall our judging panels' conversation over 'face masks' - it really didn't interest them but they couldn't deny Lucy and Michael's work ethic, ambition and resourcefulness. Nower days Lucy has closed her startup, as she realised it didn't align with her values and consults other companies like Aus Post on their digital marketing strategies, she only works with "businesses who do good"- she recently authentically shared her journey with our current teams and highlighted the importance of working on something you actually care about.

At SPARK Deakin we try to back in founders with a values driven approach to the business. What does this mean? We want to empower students and alumni to be great founders, but we also want them to solve problems that make society a better place. What is the point of innovation if it doesn't make society a better place? If it doesn't improve the communities we live in?

For instance this year we're backing Vollie, who are you to go place for online volunteering. Founded by the dedicated duo Matthew Boyd and Tanya Dontas they work tirelessly in building a financially sustainable and scalable platform that meets a need for not for profits. They match skilled volunteers with work that can be done online. We're also backing Josh Baila, Founder of Weights for Mates,  who focus on breaking down the stigma surrounding masculinity by using physical training concepts that guys are comfortable with, to aid them in tackling issues they are not. Both of these social enterprises are driven by their values, it makes their work meaningful, it also makes us super proud of the people we back.

SPARK Deakin applications are currently open and close on the 10th April, if you or someone you know could use $10k, free legal advice, co-working space in Melbourne CBD, mentorship and other perks feel free to send me a message. We also have our upcoming Accelerator Showcase on 9th April, where you can hear the founders of Vollie, Weights for Mates & the other 4 teams we funded share what the last 6 months has been about - their highs and lows and what's next.