Award-winning SA business Clevertar in administration after talks with creditor ‘broke down’

An award-winning SA business that received international recognition — including from Apple co-founder Steve Wozniak — and multiple grants has called in administrators.

Digital coaches created by Adelaide artificial intelligence firm Clevertar. "Anna" and "Michael" are used in an app for coaching people to cope with depression and mental illness.

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A Flinders University-backed award-winning SA business that received international recognition — including from Apple co-founder Steve Wozniak — and multiple grants has called in administrators after discussions with a major creditor broke down.

Clevertar, which was developing revolutionary digital avatars for digital healthcare services, is now in voluntary administration with Pitcher Partners’ Michael Basedow.

In documents filed with the Australian Securities and Investment Commission, Mr Basedow said he had been in discussions with Clevertar since December, after he was approached by Clevertar’s solicitors.

Mr Basedow revealed he was informed on March 25 that talks with a major creditor of Clevertar “had broken down” and that the directors would be proceeding with the appointment of an administrator.

A spin-out of Flinders Universtity, Clevertar was co-founded by Tania Newhouse and Martin Leurssen in 2012.

File photo of Clevertar CEO Tanya Newhouse with Apple co-founder Steve Wozniak and Clevertar co-founder Martin Luerssen.

Current company records show it has other multiple shareholders, including Flinders Partners Pty Ltd, the commercialisation arm of the university.

Mark Pitcher is the managing director of the business chaired by Jim Birch, who also chairs the Federal Government’s Australian Digital Health Agency, which is charged with rolling out the My Health Record initiative.

Prominent Australian Julian Burton is a director of the business with Ms Newhouse being chief executive and Mr Luerssen appointed chief technology officer.

International giant Konica Minolta invested $600,000 into Clevertar in 2016 and the business also received a $420,000 Australian commercialisation grant, which has underpinned its Pennsylvania, US, trial.

Digital coaches created by Adelaide artificial intelligence firm Clevertar. "Anna" and "Michael" are used in an app for coaching people to cope with depression and mental illness.

In the same year that Clevertar caught the eye of Konica, it won the global Best Start-Up — Tech Innovation Talent at the Unleashed Awards in Sydney.

Apple co-founder Steve Wozniak, who was one of the judges at the awards, said he wanted the technology for “for every little kid — for education as well as for the elderly”.

Clevertar’s virtual agents — clever avatars — were built to support patients with chronic conditions at a fraction of the cost of human intervention.

Its flagship product is Anna Cares, an online platform designed to motivate patients through mobile and tablet reminders and support.

A Flinders University spokeswoman said Flinders Partners has been working with Clevertar to try to make financial progress in what is a dynamic and highly competitive sector.

“The aim, in continuing this work with the administrator to address Clevertar’s financial challenges, is that this technology can continue to make a difference in the lives of those living with chronic illnesses.”

The Advertiser contacted Ms Newhouse and Mr Basedow on Thursday.

In response, Clevertar late on Thursday uploaded a statement to its website where Ms Newhouse said the company remained optimistic.

“The Administrator is continuing to trade the company’s business with the view of maximising the chances of the company, or its business, to continue in existence beyond the Administration whilst also maximising the return to creditors,” she said.