Tech start-ups share their wish lists ahead of Federal Government's Innovation Statement

Updated

The Turnbull Government has been urged to make bold reforms in order to invigorate the nation's start-up and innovation sectors.

Next week, the Government will release its highly anticipated Innovation Statement.

The document aims to overhaul Australia's innovation ecosystem, covering science and research, financing, government procurement, commercialisation and talent.

Ahead of the release of the statement on Monday, 7.30 spoke to key players in the tech start-up industry about what they think is needed.

It's something that can enable these early stage ideas to get some community support. Mark Tanner from Qwilr

Qwilr is a start-up company based in Sydney, founded by former Google employee Mark Tanner.

It allows users to turn traditional documents such as quotes, pitches, and resumes into interactive webpages.

Mr Tanner said there were many ways the Government could encourage this sector.

Allow superannuation funds to invest in start-up companies

"It's amazing that we have this 2-trillion-dollar pool of capital ... but it is very hard for that pool of capital to be invested in start-ups or venture capital firms," Mr Tanner said.

"Generally speaking, the way that super has been legislated is that it has to have strong liquidity requirements and strong reporting requirements.

"Now this is hard with a start-up ... [but] there is a few things that can be done to make it a little bit more lenient and simpler to allow some per cent, and obviously you wouldn't encourage a great per cent, but some per cent of that 2 trillion dollars to be invested in the local scene."

Simplify the existing Research & Development tax offset

"The R&D Grant is a wonderful thing. The only thing within that space is that it is incredibly complex," Mr Tanner said.

"Invariably you have to hire an outside accounting firm to help you with this process who can take $5,000, $10,000, $20,000 for the process of just handling the application.

"Making that system easier, more straightforward and a little bit more geared towards technology start-ups ... would be a very powerful thing."

Relax equity crowdfunding regulation

"It's something that can enable these early stage ideas to get some community support, get that early little bit of money that enables them to quit their job, start working on it full time and try to make it a proper business."

The more money that goes into tech, the more VCs, the more start-ups there are going to be. James MacGregor from Biteable

Biteable is a start-up technology company based in Hobart that was founded by three friends.

It enables users to create simple videos online.

Chief executive James MacGregor said the product had 90,000 users across the globe.

Attract more Venture Capital (VC) into Australia

"In Australia there's a handful of VCs. There's probably only realistically three or four that actually invest at the seed stage, which is the stage we're at so it makes your options quite limited," Mr MacGregor said.

"Whereas in the US, there's hundreds, hundreds and hundreds of VCs that invest in really early high-risk seed stage investments.

"The more money that goes into tech, the more VCs, the more start-ups there are going to be."

Tax incentives and matched funding from government for start-up companies

"The core in Australia compared to Silicon Valley, is there just isn't that much investment around."

"That's a big hole and as soon as that's fixed, it's really going to help the industry."

We do need to upskill, increase our talent, and what is really needed, is to ensure our start-ups are being global from day one. Serafina Maiorano from Advance

Advance is a non-profit organisation that represents the 1 million Australians living overseas.

New York-based chief executive, Serafina Maiorano, met with the Industry Minister Christopher Pyne to urge him to include a diaspora strategy in the innovation statement.

Harness successful Australian talent overseas

"What Advance represents is an incredible global network of individuals who are truly punching above their weight across every industry that we want to excel in, and they want to give back," Ms Maiorano said.

"It really is a smart grid of knowledge. What's important is we find a way to bring that skill set back to mentor young Australians and start-ups".

Connect Australian start-ups with opportunities overseas

"We do need to upskill, increase our talent, and what is really needed is to ensure our start-ups are being global from day one, the marketplace is global. And to do that you need access to talent, you need access to capital, you need access to skills and technology."

Where we lack a focus is then taking those ideas and commercialising, building a prototype and product. Sebastien Eckersley-Maslin from Blue Chilli

Blue Chilli is a start-up incubator in Sydney.

Founder Sebastien Eckersley-Maslin said he received about 200 pitches from would-be start-up companies every month.

He invests in some and provides office space and expertise as they launch their businesses.

He aims to build a billion-dollar start-up portfolio by 2020.

In four years, Blue Chilli has built 70 start-ups with a combined value of $200 million.

Improve the commercialisation of new ideas

"We're very good in this country at coming up with ideas. We have some of the best inventors in the world. Our universities are very, very strong," Mr Eckersley-Maslin said.

"Where we lack a focus is then taking those ideas and commercialising, building a prototype and product which is where 95 per cent of all small businesses fail.

"There's various reasons for that. One of them is a lack of risk capital, another is a lack of infrastructure to support those ideas, and that's where the Government has a role to play to encourage that level of activity".

Provide matched funding through start-up incubators

"Companies like Blue Chilli exist to help entrepreneurs with ideas build the first one or two versions of those ideas and commercialise them in a risk-mitigated way."

Topics: business-economics-and-finance, science-and-technology, government-and-politics, information-and-communication, australia

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