A report from Google says that Tech startups will be worth AUS$ 109 billion, will create half a million jobs by 2033.
PrincewatergourseCoopers (PwC) also that there is “no better time to be an entrepreneur in Australia”, as support for the start-up industry is rapidly expanding.
Tapping the sector’s potential would require hard work, including boosting the success rates for start-ups and increasing computer science education, said Google Australia, which commissioned the study,
Some 1,100 of today’s 1,500 start-ups are projected to fail by the end of 2013 and figures of domestic computer science graduates have dropped two-thirds in the previous decade.
Alan Noble, engineering director at Google Australia said “In the short-term it’s estimated we’ll need to have 2,000 more tech entrepreneurs drawn from the existing workforce each year”. [Startup Smart]
When it comes to startup funding there are a lot of ways that a project or an idea gets funded and developed. There are seed funds or seed money, venture capital financing, acquisitions mergers, and strategic alliances.
When you have an idea you have to act on it to get started. You need funding. You need money to start with your project and prove that it works not just in paper, but in the real world.
If you’re going to ask “Do we really need money to start with?” Maybe not initially, but how far can you go without funding? How long can you and your team work for free? Can you really do it given the equipment and/or infrastructure you have is limited? I guess you already have an answer to those questions.
The initial funding that is used to start a project this cause a seed fund. These generally come from friends and families of the entrepreneur and nonprofit organizations. The company at this stage is focused on developing and testing the product and see if customers are interested in what they offer. At this stage, it is important to keep track of the response from customers on what you offer because soon enough, the data gathered will be needed in analysis of the future of your startup, to show evidence that it is sellable.
If the initial product tests seem to be on a positive side, and seem to have potentially high commercial value in the future, the company can be further improved with the help of a bigger funding. Venture capital funding or angel investors. At this stage, the company’s focus will be producing a commercial offering with supporting data from its initial customer response.
In exchange of funds, the investor will be buying a percentage of the company in the form of stocks or shares, or in earlier stages, a convertible debt.
Mike Loftus, an angel investor and also a mentor says that Australian entrepreneurs are selling themselves short if they don’t target America.
Loftus added, “Australia is one of the greatest test markets. It’s a way to prove that what you’re doing has value, customers will buy it, businesses will buy it. Bring that as part of your story to the next step. The next step is to come to America.”
Loftus is a mentor of a business accelerator that works with New Zealand, Australian, Asian, and even American entrepreneurs to comercialise their startups globally.
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