December 2016 - Tank Stream Labs
Australia is undergoing a seismic transformation.
The digital economy will so fundamentally change how we work and live that the Australia of tomorrow will likely bear little resemblance to that we now know.
And as any good management consultant will tell you, a successful transformation comprises two parts: a well-designed and executed plan, and outstanding communication.
In terms of Australia’s journey, so far communication has been sorely missing.
Take as evidence Tony Abbott, who has a remarkably good read on the Australian public, congratulating Malcolm Turnbull for abandoning talk of innovation and agility.
Tank Stream Labs has today released its ‘Leadership in Innovation’ report, surveying startups around the country, which shows that our startup sector is growing and providing an outsized contribution to economic growth.
The report, Leadership in Innovation Report 2016, shows that although almost three quarters of respondents have been operating for less than three years, almost half are already selling to markets around the world.
The report also provides an insight into the startup sector’s contribution to economic growth. More than 60 per cent of respondents said they employ three or more people, with 46 per cent of companies having grown their revenue by more than 20 per cent in the past 12 months.
The report also focussed on take-up within the startup community of Government grants and programs.
While the report showed relatively low levels of collaboration between the startup sector and research organisations such as universities and the CSIRO, around one in four startups said they have a significant Government client or end user.
As noted recently, there are a number of initiatives launched by both the Federal and State Governments to help bridge the gap for early stage startups who find Government programs and procurement guidelines too complex and daunting. This will be a major focus for the sector in 2017.
The report also shows that Government policy matters. Although 40 per cent of respondents said it has become easier to raise capital in Australia during the past 12 months, there is much demand for Crowd Sourced Equity Funding rules to be passed, after having been delayed in Parliament.
Although almost one in four respondents said they disagree that Australia has a capable and educated workforce from which to find new employees, policies to help retain employees are working. One in five respondents said they have used changes to Employee Share Ownership Schemes to retain employees.
Thanks again for everyone who took part in this year’s survey – it’s an important basis for engaging with and lobbying for the policies that will help the sector continue to grow.
CEO, Tank Stream Labs
The Australian start-up sector is looking to build on the flurry of incentives being thrown its way from federal and state governments, with new research released by venture capital firm Tank Stream Ventures highlighting a distinct optimism from the sector as it enters 2017.
The industry-wide survey, launched in November, was designed to provide an ongoing snapshot of business conditions for the start-up sector and Tank Stream’s CEO Bradley Delamare said that while the results paint a positive picture there are few areas that could do with some fine tuning.
At a time when there’s so much focus on the start-up system, Mr Delamare said that the survey highlights that start-ups are making a significant contribution to the economy, are already taking a global perspective; and gaining traction in government circles.
“The capital flow is better and the greater visibility is also encouraging aspiring entrepreneurs to take more risks,” he told The Australian.
According to survey, 60 per cent of the respondents said that business conditions are favourable vastly outweighing the 17.8 per cent that said things were less than ideal.
“A strong majority of companies (62 per cent) said that their revenue has grown in the past year, with almost half of total respondents (46.8 per cent) saying that they have seen revenue grow by more than 20 per cent,” the survey said.