Australian company Peeractive has just been accepted into the DreamIt Ventures accelerator in the United States; the first time an Australian company has been accepted into the accelerator; rated number three in the US by Forbes.com, following Y-Combinator and TechStars.
Peerative describes its social commerce platform as changing the way pricing is determined on the web, using live consumer demand analytics to find the right price for shoppers. While we haven’t seen a demonstration on a live retailer site, as we understand it, the technology varies the price of a product on the retailer page so that as more people view the product, the lower the price becomes.
The team plan to use the US accelerator opportunity to launch their innovative online retail pricing technology.
Nick Rosenthal, CEO and co-founder of Peeractive, said the team were looking to extend their network and leverage the support of mentors at DreamIt; who include executives from companies like Amazon and Walmart.
“It’s all about extending our network and getting in front of the right people – both clients and investors,” said Rosenthal.
“The first meeting or call,” says Rosenthal, “should not be a pitch as such, it’s all about learning what they do; where’re they’re at; what their challenges are.”
The platform, which Rosenthal says will launch by the end of the program, could be used to get you that book on Amazon, or designer shirt on ASOS.com, at a better price.
Peeractive went through an initial funding round in 2011 which helped get the business established. The $50,000 secured at the time allowed Peeractive to apply for the necessary patents.
Peerative’s social commerce technology changes the way retail pricing is determined on the web (image: Peeractive)
“We were mainly interested in partnering with people who believed strongly in our idea and who had experience in international business.”
Around the same time Peeractive brought onboard US based Nir Golan, to head up their US operations. The choice was an “easy one”, according to Rosenthal, because of Golan’s skill set and belief in the concept.
“With Dave (Peeractive co-founder), and I focused on pursuing opportunities within Australia, we decided that in our case there was no reason not to simultaneously explore opportunities in the US.”
Rosenthal says that while they weren’t actively recruiting at the time, the decision to resource particular markets is a decision that suited their situation.
The team has recently been negotiating with a number of online retailers and say the response has been positive.
“Some of the features we are integrating into the technology are quite disruptive.”
Rosenthal’s advice for other startups looking to get in the door with retailers is to make sure what you’re offering is “actually relevant to their needs.”
“The first meeting or call,” says Rosenthal, “should not be a pitch as such, it’s all about learning what they do; where’re they’re at; what their challenges are.”
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