Winning the annual Croc Pitch contest is rewarded with the opportunity for up to $1 million in investment, but sometimes you can win even if you lose, as long as you stand out.
That is what happened to US-based logistics drone specialist Blueflite, when the company secured more than $1 million in venture capital investment shortly after losing the contest in 2023.
The 6th Croc Pitch contest, sponsored by Paspalis and the Darwin Innovation Hub, will take place in October 2024, and contestants can receive up to $1 million in venture capital investment.
It’s open to both domestic and international entries but the innovation, product, or technology pitched, must positively impact Northern Australia.
At the contest last year, Blueflite chief executive Frank Noppel pitched an idea for using his company’s drones to solve logistical delivery issues in Northern Australia.
Blueflite made it to the final stages of the competition but Brisbane-based Agricultural Robotics’ Orion, an automated mango-harvesting system, took the top spot.
Once the competition ended, Mr Noppel spent a few more days in Darwin, visiting the, and forging closer ties with the North Australia Centre for Autonomous Systems (NACAS), which provides an ecosystem to help develop the drone industry in North Australia, and operates a drone testing facility in Katherine, NT.
Entering the competition resulted in more productive meetings because potential investors, partners, and customers, were already familiar with Blueflite and its technology.
“The biggest effect from entering Croc Pitch was the exposure — we’d been able to demonstrate that our company isn’t just a Powerpoint deck. We’re not just hype — we have valuable ideas and technology, and are willing to work hard,” he said.
These meetings resulted in Blueflite entering into due diligence and subsequently receiving venture capital investment worth over $1m from Croc Pitch’s principal investor – Paspalis Innovation Investment Fund (PIIF), to develop its North Australian drone solution.
“We now have an office in Darwin and an employee — this makes it much easier for us because we’re in a similar time zone to all our potential customers and partners,” said Mr Noppel.
He advises companies looking for investment to do plenty of research and find an area where there is the potential for exponential growth.
“Growth happens when your company is using technology to solve difficult problems. Investors want to see the growth potential, and our pitch was attractive because drones can solve many logistical problems, and the drone space is still relatively young and promising.”
Mr Noppel explains that he developed the pitch after spending months researching the potential market in Northern Australia for Blueflite drones and taking note of possible partners and competitors.
“Our drones are designed to transport packages between 2kg-5kg in weight, with a range up to 145KMs. Australia is a huge country with a sparse population which creates logistical challenges around speed and cost of delivery, and drones are a natural solution.
“We don’t just want to build drones in the US and sell them in Australia, that doesn’t make sense,” he continued.
“We want to find local partners that can work with us to build a manufacturing ecosystem using local resources and talent.
“At Croc Pitch we found people who understand the opportunity, and challenges, and want to work with us to solve them.”
As important as having an innovative idea and the right technology, is a passion for the subject — whatever it may be, said Mr Noppel.
“I’m an aerospace engineer and an entrepreneur, and very passionate about drones. This is hard work so if you’re not passionate, my advice would be don’t even try.”
Companies that do attract investment don’t just receive a large cheque — investors release pre-agreed sums of money depending on the achievement of predefined goals.
“Funded companies need to prove themselves on both a macro and micro level. Different companies raise capital in different ways but usually, investors require certain milestones to be reached before further funding is released,” said Mr Noppel.
Entering Croc Pitch last year accelerated the development of Blueflite.
“The profile of this company has increased in Australia and beyond — and not just in the drone world. Traction gained from Croc Pitch has exceeded all my expectations.
“We partnered with a US company earlier this year and have also had conversations with drone companies in Sydney, so it’s all happening,” Mr Noppel said.
Croc Pitch is open to both startups and young businesses, and Mr Noppel says there are advantages to entering the competition regardless of how long you have been around.
“We had already been operating for 5 years, so we had a product with revenue, projections, and a business plan,” he explained.
“Croc Pitch is a special event and if you are serious about doing business in NT, Australia and APAC, it would be stupid to not apply — even if you do it just for the networking.”
This article was produced by InnovationAus.com in partnership with Paspalis.
Do you know more? Contact James Riley via Email.