Australian Tech Startups Still Need Support to See Success
It has been said time and time again that Australia has many of the necessary ingredients to become a leading market for startups – particularly for those in the IT and tech field. A recent report completed by Google and Pricewaterhouse Coopers predicted that this segment of the Oz economy can come to generate some $109 billion in the coming years. At the same time, the startup scene down under seems to be disorganized at the moment. While there are many worthy initiatives on the market, they lack the policy and investment framework that they would need in order to thrive. For this reason, today we take a look at the story of one man who left the corporate creative industry in order to tackle the ‘extreme sports’ world of future business; then, we examine the background of such a life change, by taking a look at the facts and figures of the startup scene in Australia.
Passion, creativity, and risk: The recipe for startup success?
David Field used to work at a creative agency, but at some point he got fed up with managing emails for the owners of a brand of washing machines. He quit that job and started his own business off the ground. He began by writing code and was fueled by a desire to see “what technology is on the horizon”. The place he works at right now somewhat channels the vibe of the first act of The Social Network, but against the backdrop of the typical setting of office rentals in Sydney. They’ve got the Ikea furniture, the ideas, and the non-formal approach to business to show for it too, and they are a not-for-profit startup space for entrepreneurs. Their main mission is to identify the technologies of the future, so they’re keeping an eye out on social networks, big data, collaboration technology, and artificial intelligence.
Field describes several projects developed at the NGO, which runs on cloud-based servers and also provides training for entrepreneurs in the startup field. Some might seem too far-fetched to actually make it off the written page, but others, which mine data from social networks, in order to articulate a strategy, might just become the next big thing. He also provides the example of a startup developed by the same NGO in the United States, founded by some twenty-something UTS and MIT graduates. They are now providing the world with cloud services that are faster than Amazon’s. Field believes the advent of the National Broadband Network, paired with the slowdown of the mining boom is bound to determine some major, ground-changing shifts when it comes to Australia’s attitude toward startups. Time alone will tell whether or not his intuition is correct.
Why aren’t more Aussie startups seeing success?
Given the amount of dedication and enthusiasm currently being poured into Australia’s tech startup scene, one would imagine the future looks positive for entrepreneurs. However, according to the program leader of a technology startup accelerator, Australians still need to hone their understanding of risk capital and make peace with their culturally accumulated fear of failure. During a video panel discussion on this topic, which took place late this summer, Joshua Tanchel explained that both the corporate world and the actors on the governmental scene in Australia need to become more involved in funding new, bold ideas. Another speaker at the same panel, the founder of a technology startup himself, explained that while research and development are being properly funded, with tax incentives from the government also available, venture capital is lacking. The entrepreneur in question made a plea for educating angel investors with respect to the risks they face when placing their money with a tech startup. Yes, some ideas do fail, and this is a pitfall they need to make amends with, he said.
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Category: Business
