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

Featured Article

DEI backlash: Stay up-to-date on the latest legal and corporate challenges

It’s clear that this year will be a turning point for DEI.

3 hours ago
DEI backlash: Stay up-to-date on the latest legal and corporate challenges

The keynote will be focused on Apple’s software offerings and the developers that power them, including the latest versions of iOS, iPadOS, macOS, tvOS, visionOS and watchOS.

Watch Apple kick off WWDC 2024 right here

Hello and welcome back to TechCrunch Space. Unfortunately, Boeing’s Starliner launch was delayed yet again, this time due to issues with one of the three redundant computers used by United…

TechCrunch Space: China’s victory

The court ruling said that Fearless Fund’s Strivers Grant likely violates the Civil Rights Act of 1866, which bans the use of race in contracts.

An appeals court rules that VC Fearless Fund cannot issue grants to Black women, but the fight continues

Instagram Threads is rolling out the ability for users to signal which sort of posts they wanted to see more or less of by swiping.

You can now customize your For You feed on Threads using swipes

The Japanese billionaire who commissioned SpaceX for a private mission around the moon on a Starship rocket has abruptly canceled the project, citing ongoing uncertainties around when the launch vehicle…

Japanese billionaire pulls plug on private ‘dearMoon’ lunar Starship mission

Malicious actors are abusing generative AI music tools to create homophobic, racist, and propagandic songs — and publishing guides instructing others how to do so. According to ActiveFence, a service…

People are using AI music generators to create hateful songs

As WWDC 2024 nears, all sorts of rumors and leaks have emerged about what iOS 18 and its AI-powered apps and features have in store.

What to expect from Apple’s AI-powered iOS 18 at WWDC

Dallas is the second city that Cruise is easing its way back into after pulling its entire U.S. fleet late last year.

GM’s Cruise is testing robotaxis in Dallas again

Featured Article

After raising $100M, AI fintech LoanSnap is being sued, fined, evicted

The company has been sued by at least seven creditors, including Wells Fargo.

8 hours ago
After raising $100M, AI fintech LoanSnap is being sued, fined, evicted

Featured Article

Sonos Ace review: A high-priced contender

The Ace are a contender in a crowded market, but they’re still in search of that magic bullet to truly let them stand out from the pack.

8 hours ago
Sonos Ace review: A high-priced contender

The change would see Instagram becoming more like the free version of YouTube, which requires users to view ads before and in the middle of watching videos.

Instagram confirms test of ‘unskippable’ ads

Commerce platform Shopify has acquired Checkout Blocks, allowing Shopify Plus merchants to make no-code customizations in their checkout to enhance customer experience and potentially boost sales.  Checkout Blocks, which debuted…

Shopify acquires Checkout Blocks, a checkout customization app

After the Digital Markets Act (DMA) forced Apple to allow third-party app stores for iOS in Europe, several developers have launched alternative stores, like the AltStore and MacPaw’s Setapp (currently…

Aptoide launches its alternative iOS game store in the EU

Time is relentless and, right now, it’s no friend to procrastination-prone early-stage startup founders. The application window for Startup Battlefield 200 (SB 200) at TechCrunch Disrupt 2024 slams shut in…

One week left: Apply to TC Disrupt Startup Battlefield 200

Cloudera, the once high-flying Hadoop startup, raised $1 billion and went public in 2018 before being acquired by private equity for $5.3 billion in 2021. Today, the company announced that…

Cloudera acquires Verta to bring some AI chops to its data platform

The global spend management sector is experiencing a tailwind of sorts. North America is arguably the biggest market in this space, but spend management companies have seen demand rise across…

Spend management startup SiFi raises $10M to grow further in Saudi Arabia

Neural Concept lets designers model how components will perform before they can be manufactured.

Swiss startup Neural Concept raises $27M to cut EV design time to 18 months

The StrictlyVC roadtrip continues! Coming off of sold-out events in London, Los Angeles, and San Francisco, we’re heading to Washington, D.C. for a cozy-vc-packed, evening at the Woolly Mammoth Theatre…

Don’t miss StrictlyVC in DC next week

X will now allow users to post consensually produced NSFW content as long as it is prominently labeled as such.

X tweaks rules to formally allow adult content

Ashby consolidates existing talent acquisition tools and leans heavily on AI to automate the more repetitive steps in the recruitment pipeline.

Ashby injects recruiting with a dose of AI

Spotify has announced it’s hiking subscriptions for customers in the U.S., the second such price increase in the space of a year. The music-streaming giant reports that premium pricing will…

Spotify to increase premium pricing in the US to $11.99 per month

Monzo has announced its 2024 financial results, revealing its first full-year pre-tax profit. The company also confirmed that it’s in the early stages of expanding into the broader European market…

UK neobank Monzo reports first full (pre-tax) profit, prepares for EU expansion with Dublin hub

Featured Article

Inside Apple’s efforts to build a better recycling robot

Last week, TechCrunch paid a visit to Apple’s Austin, Texas, manufacturing facilities. Since 2013, the company has built its Mac Pro desktop about 20 minutes north of downtown. The 400,000-square-foot facility sits in a maze of industry parks, a quick trip south from the company’s in-progress corporate campus. In recent years, the capital city has…

17 hours ago
Inside Apple’s efforts to build a better recycling robot

Early attempts at making dedicated hardware to house artificial intelligence smarts have been criticized as, well, a bit rubbish. But here’s an AI gadget-in-the-making that’s all about rubbish, literally: Finnish…

Binit is bringing AI to trash

Temasek has previously invested in Lenskart, and this new funding follows a $500 million investment by the Abu Dhabi Investment Authority last year.

Temasek, Fidelity buy $200M stake in Lenskart at $5B valuation

Less than one year after its iOS launch, French startup ten ten has gone viral with a walkie talkie app that allows teens to send voice messages to their close…

French startup ten ten reinvents the walkie-talkie

Featured Article

Unicorn-rich VC Wesley Chan owes his success to a Craigslist job washing lab beakers

While all of Wesley Chan’s success has been well-documented over the years, his personal journey…not so much. Chan spoke to TechCrunch about the ways his life impacts how he invests in startups.

1 day ago
Unicorn-rich VC Wesley Chan owes his success to a Craigslist job washing lab beakers

Presumptive Republican presidential nominee Donald Trump now has an account on the short-form video app that he once tried to ban. Trump’s TikTok account, which launched on Saturday night, features…

Trump takes off on TikTok

With fewer than 400,000 inhabitants, Iceland receives more than its fair share of tourists — and of venture capital.

Iceland’s startup scene is all about making the most of the country’s resources