Wangle Results and Observations, page-315

Interesting post here on Wangle over at Whirlpool. Seems to point out some things @john_utah  was mentioning before.

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Wait, so your saying that the app can compress data better than netflix, and it does it encrypted in real time?

How are you doing that across wifi on a mobile platform? Are you streaming netflix to a phone or tablet via wangle's servers across a vpn?

This all reminds me of Media World Broadcasting, a company that tried to float in 2001 with breakthrough data compression technology. The company I worked for, who were basically geniuses for hire (not me) were asked to look at the methodology to determine its bona fides. We were not given sufficient access to make a call, mainly because it was a scam. The "inventors" took the money and the company went bankrupt.
See: http://www.pierpont.com.au/article.php?The-world-s-most-expensive-napkin-509 (for those youngsters, Pierpont was a journalist for the AFR who mostly wrote about mining stocks and dodgy practices). Media World Broadcasting used to be Werrie Gold Ltd so it had both.

Ooh, funnily enough Wangle used to be VTX holdings, a company involved in "Development and commercialisation of pipe lining technology and operation of pipe contracting and distribution businesses". So there is the mining link and back door listing. Nothing wrong with that of course. And the fact that the Managing director sold part his company to the stockholders might be fine as well. And also that the CTO is related to the company that charges Wangle $1m+ per annum of their hard earned cash for software development could also be fine...
Looks like the technology comes from Nexgen, a NZ company. http://www.*.com.au/kiwi-data-flow-optimiser-nexgen-plans-asx-backdoor-listing-2015-6

The technology seems to be this: US patent 9,450,879. It seems to analyse your available bandwidth and your historic bandwidth, then push the data to you at a rate it believes you can accept without buffering. Nothing magical there, and will rely on compressing data and throttling to ensure there is no buffering. Arguably, sending 1gb of incompressible data over this will take longer.

Interesting to see how they continue development given there is no mention of the US based inventor coming on board. Also, this is an area that is subject to lots of patents. Having your own patent is no guarantee that you don't infringe someone else's patent, so you could be paying license fees to someone else.

Of course my view is that a tech company that cannot generate its own tech is going to be scratching for revenue and products once the shareholders cash runs out. And consultants will bleed you dry.

Personally, I would be surprised if this can be scaled. Won't all data needs to go through datacentres controlled by Wangle? Do they have any under contract? Won't they need heaps of grunt to perform monitoring and compression in close to real time, so every time they increase customer base they need to increase capacity.

Also, what is the business model? How much would you pay for this every month? $5 tops surely. If you want to generate $10m p.a then that is around 200,000 subscribers per month once you take Apples 30% cut into account. I wonder what their marketing budget is like....
I am always sceptical of a company that launches based on "patent pending technology", with no revenues, and "interesting" financials.
And no mention whatsoever of their technology's Weissman Score? How can I get excited?

I am going to bookmark their webpage and keep an eye out on how they go. Even if the product is not interesting, the company sure is."