High-growth startups:Ingredients for success       Colin Kinner      QUT Business School        23 August 2012
Topics• What is a high-growth startup?• Why are they important?• Ingredients for success• The local startup ecosystem
Types of Startups                                                                  Extreme growth potential, born         ...
High-growth Startup• Globally scalable business model• Typically not cash-flow positive• Growth fuelled by via external in...
BUT. . . Most startups fail
So why do it?
Web businesses are cheap to start      Software     Hardware     Marketing  Customer service    Tech supportSoftware devel...
Huge growing markets
Kauffman Foundation• Existing firms are net job destroyers,  collectively losing 1 million jobs net per year• By contrast,...
What are the ingredients for success?1.    A world-class team2.    A real problem that many people would pay money to solv...
A real problem that needs to be solved
A compelling solution
Disruptive Innovation
Transition from “old economy”   businesses to disruptive startupsOld economy               Disruptive startups   Internati...
A large global market
A large global marketConsumer       Business
A sound business model
A sound business model
Competitive advantage
Competitive advantage
Competitive advantage
Access to capital
Local investorsNon-affiliated HNWs
Investors invest in <1% of businesses        that approach them
Venture Capital in AustraliaVC $ per capita                             Australia   $5.45 ($120m total)                  M...
Access to experienced mentors
Exit strategy
Brisbane’s startup ecosystem  IdeationNetworking   Funding                                                                ...
Incubators• Owned by QUT                  • Owned by University of Queensland• Supported by Qld Govt         • Funded by Q...
Incubators (cont)• Owned by Griffith University        • Owned by University of Sunshine• Supported by Qld Govt           ...
What companies do incubators support?                            Unproven concepts /                   Mature             ...
Grants / government fundingCommercialisation grants       R&D Tax Incentive       Export Market                           ...
Trend 1: Co-working spaces• Space and basic facilities for startup teams• Mentoring and events• Objective is to build a co...
Trend 2: Crowd-funding
Thank youColin Kinneremail colin@spikeinnovation.com.auwww.spikeinnovation.com.au  @colinkinner  http://au.linkedin.com/in...
CK slides - QUT Business School - 23 Aug 2012
CK slides - QUT Business School - 23 Aug 2012
CK slides - QUT Business School - 23 Aug 2012
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CK slides - QUT Business School - 23 Aug 2012

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Transcript of "CK slides - QUT Business School - 23 Aug 2012"

  1. 1. High-growth startups:Ingredients for success Colin Kinner QUT Business School 23 August 2012
  2. 2. Topics• What is a high-growth startup?• Why are they important?• Ingredients for success• The local startup ecosystem
  3. 3. Types of Startups Extreme growth potential, born >$100m global $5-100m High growth, national / globalPotential value of company focus $1-5m Modest growth (SMEs), Talent migration domestic focus Lifestyle business / small <$1m business Number of companies
  4. 4. High-growth Startup• Globally scalable business model• Typically not cash-flow positive• Growth fuelled by via external investment• Financial gains via an exit / liquidity event• Generally not a source of income for the founder(s)• Different to a “small business” or “lifestyle business” or SME
  5. 5. BUT. . . Most startups fail
  6. 6. So why do it?
  7. 7. Web businesses are cheap to start Software Hardware Marketing Customer service Tech supportSoftware development $$$$ $
  8. 8. Huge growing markets
  9. 9. Kauffman Foundation• Existing firms are net job destroyers, collectively losing 1 million jobs net per year• By contrast, new firms collectively add 3 million jobs in their first year
  10. 10. What are the ingredients for success?1. A world-class team2. A real problem that many people would pay money to solve3. A compelling solution that is superior to competitors4. Disruptive innovation5. A large global market6. A sound business model7. Competitive advantage8. Access to capital9. Access to advice and expertise10. Exit strategy
  11. 11. A real problem that needs to be solved
  12. 12. A compelling solution
  13. 13. Disruptive Innovation
  14. 14. Transition from “old economy” businesses to disruptive startupsOld economy Disruptive startups International clones businesses $14bn $40m $2bn $200m
  15. 15. A large global market
  16. 16. A large global marketConsumer Business
  17. 17. A sound business model
  18. 18. A sound business model
  19. 19. Competitive advantage
  20. 20. Competitive advantage
  21. 21. Competitive advantage
  22. 22. Access to capital
  23. 23. Local investorsNon-affiliated HNWs
  24. 24. Investors invest in <1% of businesses that approach them
  25. 25. Venture Capital in AustraliaVC $ per capita Australia $5.45 ($120m total) Melbourne Cup bets $7.27 ($160m total) Australia’s Olympic Games preparation $14.10 ($310m total)
  26. 26. Access to experienced mentors
  27. 27. Exit strategy
  28. 28. Brisbane’s startup ecosystem IdeationNetworking Funding Blackbird Fund Non-affiliated HNWs Support Mentoring for Growth Innovation Start-Up Scheme Discontinued
  29. 29. Incubators• Owned by QUT • Owned by University of Queensland• Supported by Qld Govt • Funded by Qld Govt• Focus on creative sectors: • Space at Long Pocket fashion, design, new media, • $20k grant program – for for product film, TV, music development and/or business• Space at Kelvin Grove consulting• Interest free loans to $15k • Mentoring program• Commercial support programs • Events and bootcamps• Events
  30. 30. Incubators (cont)• Owned by Griffith University • Owned by University of Sunshine• Supported by Qld Govt Coast• Office space at Griffith Uni Gold • Supported by Qld Govt Coast campus • Office space at USC (Sippy Downs)• Experienced team • Structured mentoring program• Mentoring program • Events
  31. 31. What companies do incubators support? Unproven concepts / Mature ideas businesses High  Capacity to scale Low-growth businesses Low Concept Mature business Stage of company’s development
  32. 32. Grants / government fundingCommercialisation grants R&D Tax Incentive Export Market Development GrantsSkills and Knowledge • 45% refundable tax• $50k [80:20] for specialist offset (equivalent • Reimburses up to 50% advice and services to a 150 per cent of eligible exportProof of Concept deduction) promotion expenses• $250k [50:50] to prove • Activity must above $10,000 commercial viability qualify as eligibleExperienced Executive R&D• $350k [50:50] to engage CEO / senior execEarly Stage Commercialisation• $2m [50:50] to take a new product / service to market
  33. 33. Trend 1: Co-working spaces• Space and basic facilities for startup teams• Mentoring and events• Objective is to build a community
  34. 34. Trend 2: Crowd-funding
  35. 35. Thank youColin Kinneremail colin@spikeinnovation.com.auwww.spikeinnovation.com.au @colinkinner http://au.linkedin.com/in/colinkinner

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