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Australia's Technology Incubators - # 1

Start-up companies participating in incubator programs are wasting time and money

The state of Australia's technology incubator system, in which new companies can find funding, mentorship, networking opportunities and free or cheap office facilities, seems to be thriving. However, unregulated incubator programs, as well as the results they deliver, are inconsistent, and in the absence of significant change, Australian tech incubators are unlikely to be as successful as those in Silicon Valley. During a trip I took to San Francisco in May, my opinion of the Australian tech incubator ecosystem was only reinforced. In contrast to what's been done in the UK, Singapore and California, Australia's federal government has not established any significant system of regulation or coordination as its incubator system has grown, nor has any direction come from the venture capital community. That has led to a situation where most start-up companies participating in incubator programs are wasting time, money and opportunity. In my work as a business consultant, I often encounter new companies are foregoing a focus on developing their product, market research and relationship building in favor of relying on incubator programs. Australia, too, is without certain economic characteristics that help start-ups to be successful in other economies. The economic model in the tech economies of cities such as New York, Seattle, Austin and Miami, as well as in Silicon Valley, the UK and Singapore, is very simple: risk capital is attracted to brains, and brains are attracted to risk capital. Australia certainly has brains, but it falls behind in terms of risk capital and the start-up skills possessed by its entrepreneurs. Because of that, the Silicon Valley strategy for incubators is unlikely to work well here. I've split my time between San Francisco and Sydney, and I've been able to see that an absence of capital for both mid-stage and late-stage start-ups is a significant problem for new Australian start-ups that have entered an incubator or obtained angel investment. That's leading more and more swiftly developing technology companies to move to Singapore or Silicon Valley in order to have a better chance at success.

About Greg Twemlow:-

Greg Twemlow is a business consultant with more than 25 years experience working internationally and developing an extensive, valuable business network. His skill set combines technical expertise with business savvy and creativity, making him the ideal consultant in challenging situations in which delays or cost overruns are simply out of the question. He has helped the brightest people and the best companies in a broad range of industries to be successful as they dealt with complex, high-value initiatives. Whether you have a greenfield project or one that has lost momentum, Greg Twemlow will take charge and allow you to put your energy into running your business. Greg Twemlow provides wisdom and experience to your project, regardless of whether it's a brand new endeavor, an existing company in need of revitalization, or project that requires an exit strategy. Advising, consulting, strategizing, devising, implementing, managing, mentoring--these are the things that Greg Twemlow does every day.

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