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Appster goes broke

More than 400 jobs are at risk as software startup Appster collapses. The early tech success built apps for companies, and was created in 2011 with both founders, Mark McDonald and Josiah Humphrey, entering the AFR Young Rich List four years later. The company was on track to reaching $100m in revenue in 2018 but lack of sales and a series of issues had the chance mpany spiralling out of control

The liquidation has seen 23 employees in Melbourne out of a job – and some 400 staff in four offices across the world are facing a possibly grim future. These humans have been through a gruelling 22-hour job interview, featuring eight stages, four interviews, up to 10 reference checks and even a body language assessment.

This is clearly a massive asset that a smart app dev have the opportunity of acquiring .

How and Why did this happen ? 

Lack of sales

“The collapse was due to a “sharp drop” in work available over the last six months, leading to the business missing targets and losing revenue.”

Poor Service

“What they designed didn’t work, it was kindergarten stuff, So we terminated the contract and asked for a refund, but they were unable to repay it and put us on a payment plan instead.” 

More money going out than coming in 

Employing 400 people without regular revenue can be dangerous 

“We missed forecasted sales targets by around 50 per cent four months in a row. With expenses of roughly $1 million a month our cash reserves were depleted very rapidly despite attempting cost reductions.”

Lack of management  and technical  capability 

Competitor and potential acquisitor Anushka Bandara, founder of rival app development company Elegant Media said “When you are a tech business just marketing is not enough, you have to have that management and technical background to be successful.”

Great opportunity for another App developer

“We are willing do a free assessment for all existing Appster customers and provide a report on where the project is at, what stage it has been delivered, how long it’s going to take and the cost to complete.”

Despite the liquidation, the founders of the business are still active on LinkedIn, with Humphrey Posting 

 “Remember that no matter what situation you’re in, you have the power to change your reality,” 

 

 

Posted on December 16, 2018

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