A platform provided by a startup based in Sydney, which enables secure data sharing between companies and the government, has secured a $10.5 million investment from major corporate players.
Data Republic’s Series A funding round includes Qantas, who made their first-ever investment in a startup in their 95-year history, as well as NAB Ventures, who made their first investment in the startup.
Reinventure Group, which led the seed round in the startup, also participated in this latest funding round.
Data Republic offers a highly secure platform with bank-level security that enables the sharing of users’ data between companies. The platform includes a governance framework created by Allens law firm, which provides users with complete control over their data and legal protection.
A STRATEGIC INVESTMENT
According to Paul McCarney, the founder of Data Republic, he has been in talks with major businesses for more than a year, even before the beta service was launched in November of last year. McCarney claims that it is more than just a capital injection, as the businesses are also interested in utilizing the platform to manage privacy restrictions and ensure ethical use of customer records.
McCarney states that companies are already considering sharing customer data but that it usually happens on an ad-hoc basis in private. He believes that if privacy and security are prioritized, the Data Republic platform can lead to more mutually beneficial relationships between companies and customers.
McCarney explains that data governance affects an entire organization and that utilizing the platform enables organizations to scale the exchange of data while centering around consumer rights and law. This framework allows businesses to manage the risks and liabilities associated with exchanging data and offer customers the right product at the right time for the right price.
A CHALLENGING PROBLEM
The startup, Data Republic, has secured a significant amount of funding that will be utilized to accelerate its next phase of growth. According to McCarney, the CEO, the startup is solving a complex problem of creating a well-governed data environment. Although the startup has made progress in governing data exchange, there is still a lot of work to be done to launch the platform fully. Data Republic aims to provide insightful analytics at scale that can be resold, redeveloped and redeployed across various applications. The startup will also be useful for other startups that use big data as an asset to unlock its value and manage its governance.
Data is at the center of a range of decisions that were not possible in the past. McCarney sees many pitch decks that talk about building data assets but do not get valued in the valuation model. Hence, Data Republic is building a mechanism for startups to unlock the value of data and distribute it to the people they want to manage governance. The startup is looking to expand in the US by hiring a former chief solutions strategist at EMC’s emerging technologies division, Ryan Peterson. The core development team will remain in Australia, but the company is hiring specific skillsets in the US to take advantage of the skills available there.
REVEALING EVERYTHING
During a year of discussions with large corporations, McCarney emphasized the importance of transparency regarding key differences in objectives and operations.
He states, “I have been completely transparent with the three individuals I work with, and I have established positive working relationships with all of them. They need to understand the objectives of your future capital structure at a senior level and where they fit into that framework. Communication must be maintained, as the expectations and cadence differ greatly between startups and corporations.”
McCarney believes that startups can partner with corporations successfully if they are clear about the inherent differences between the two.
He says, “I understand why corporations move and operate at their pace, but when running a startup, mistakes must be made quickly, and investors’ expectations must be managed carefully. Corporations cannot afford to make mistakes in the same way I can. This conversation needs to be frank and honest.”
