Appster Explained

Appster
Type:Private
Foundation:2011
Area Served:Worldwide
Industry:App development

Appster was an Australian mobile app development company, founded in 2011 by Josiah Humphrey and Mark McDonald. Appster developed mobile apps and websites for startup companies, and enterprises. The company was once touted as the "next Apple" by analysts due to its fast growth.[1] However Appster later collapsed and went into liquidation,[2] on 7 December 2018. [3]

History

Appster was launched in June 2011 by 19-year-olds Mark McDonald and Josiah Humphrey, with $50,000 originally as a digital agency consulting to online e-commerce companies on conversion rate optimization.[4] 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.[5]

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.[6] [4] [7] [8]

By 2015 the partners appeared on the AFR Young Rich List[9] with a combined net worth of $58 million. They were also included in Forbes' "30 Under 30" list.[10]

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.[11] [12]

When the company failed, it had over $19 million in revenue yearly with 400 employees 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 [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 was rallying creditors to pursue legal action against founders McDonald and Humphrey, alleging they traded while insolvent.[16]

Awards

External links

  1. Web site: Lim. Jason. Aussie Startup Appster Adds Former Founding PayPal CFO And Virgin Australia Executive To Its Board. 2020-12-10. Forbes. en.
  2. Web site: Powell . Dominic . 2018-12-06 . Multimillion-dollar app development company Appster collapses into liquidation, leaving businesses stranded . 2023-10-03 . SmartCompany . en-AU.
  3. Web site: "Where did the money go?": How Appster went from riches to ruin. Dominic. Powell. February 15, 2019. SmartCompany.
  4. Web site: Appster cashes in on modern gold rush . 2020-12-10. www.theaustralian.com.au. subscription.
  5. Web site: 2018-12-12. Elegant Media makes bid for Appster assets. 2020-12-10. Australian Financial Review. en. subscription.
  6. Web site: Why a Melbourne app company is moving to New York with plans for over 40 offices. 27 February 2014. smartcompany.com.au. 13 August 2014.
  7. Web site: The truth about Appster and how they attracted the man that helped grow iSelect to join the company. startupdaily.com.au. 13 August 2014. https://web.archive.org/web/20140804225051/http://www.startupdaily.com.au/2014/03/truth-appster-attracted-man-helped-grow-iselect-join-company/. 4 August 2014. dead.
  8. Web site: Two Teenage Dropouts With $3,000 and No Business Training Could Be Building the Next Apple. 7 July 2015. Inc. 7 July 2015.
  9. Web site: Appster's owners to debut on BRW Young Rich list. 2015-10-25. Australian Financial Review. en. 2019-08-21. subscription.
  10. Web site: 2019-02-15. "Where did the money go?": How Appster went from riches to ruin. 2019-08-21. SmartCompany. en-US.
  11. Web site: Australian startup Appster is teaching schoolkids how to code. https://web.archive.org/web/20150302090715/http://www.businessinsider.com.au/australian-mobile-development-startup-appster-has-created-a-school-curriculum-to-teach-kids-how-to-code-2015-2. dead. March 2, 2015. Business Insider Australia. 24 February 2015.
  12. Web site: High school teaches app creation. Financial Review. 26 February 2015. en-US.
  13. News: Hobbs . Chris . Council Post: The Hidden Perils Of Rapid Growth . Forbes . en.
  14. Web site: Young Rich Listers tech start-up Appster collapses after tough four months. 6 December 2018. subscription.
  15. Web site: 2018-12-06. Multimillion-dollar app development company Appster collapses into liquidation, leaving businesses stranded. 2019-08-21. SmartCompany. en-US.
  16. Web site: 2019-03-05. Appster may have traded while insolvent and made $750,000 in "concerning" payments, liquidator claims. 2020-11-17. SmartCompany. en-US.
  17. Web site: BRW Most Innovative Companies 2014: 27. Appster. BRW. 2015-12-22. https://web.archive.org/web/20151222232445/http://www.brw.com.au/p/lists/50-most-innovative-companies/2014/brw_most_innovative_companies_appster_DCyI8rJ3g78DQIvcanP2dL. 2015-12-22. dead.
  18. Web site: 50 Most Innovative Companies 2014. BRW. 3 March 2016.
  19. Web site: 2015 Finalists - Telstra Business Awards . Telstra Business Awards . en-US . dead. https://web.archive.org/web/20160405030207/https://www.telstrabusinessawards.com/brilliant-businesses/2015-finalists/ . 2016-04-05 .

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