ICT innovation is easy
-
commercialisation is hard
Dr Silvia Pfeiffer
Vquence Pty Ltd
For Public Sphere #3

ICT Innovation in Australia
 Good education system
 Many creative minds
 Many innovators
 Many innovations

Where do the innovators go
 CSIRO / NICTA / DSTO
 Overseas (US / UK)
 Google
 Join Startup

Very few create startups
why?

“Crossing the chasm”
from an idea to a product

Why not to start up
 No co-founder(s)
 Financial risk
 No sound business idea
 Lack of funding
 Lack of good programmers
 Management requirements
 Sales requirements
 No fertile market grounds

Take out ppl and idea risk
 No co-founder(s)
 Financial risk
 No sound business idea
 Lack of funding
 Lack of good programmers
 Management requirements
 Sales requirements
 No fertile market grounds

Australia: Bad Market
 Size of the Australian market
 “Invented-here” syndrome
 Competitive thinking rather than
collaborative thinking

Australia: Bad Location
 Lack of access to large ICT
organisations and their research
 Risk-aversity in investors and
customers
 Lack of appreciation of
investment needs in ICT

Aust. VC ICT investment
5 yrs ago: 25+ VCs
Now: 10 firms, longer funding cycle
In ICT:
 Starfish Ventures (2008, $185M)
 Southern Cross (2006: $200M)
 Innovation Capital (2006: $90M)

Aust. Government Grants
 grants previously:
 $200M/yr Commercial Ready (<May08)
 $10M/yr COMET (at $64K matched)
 $150M/yr Export grant (max $150K
matched)
 grants now:
 [$64M IIFF to 35 comp over 4-6 yrs]
 $150M/yr Export grant (max $200K
matched)
 $10M/year COMET (at $64K)

Other investment sources
 Angels
 Corporate Investment
 Yourself

Weak Government Support
 Funding dwindles
 R&D Tax concession (post
spending)
 …?

Ideas: “crossing the chasm”
 ICT precinct for start-ups
 Infrastructure
 Connectivity
 Mentoring
 Exposure to investors
 Exposure to clients
 Collaboration
 Exposure to Uni talent

Ideas: “crossing the chasm”
 Market place for biz ideas
 CSIRO / NICTA / Unis projects
 Entrepreneurs
 Investors
 Customers (large organisations)
 aiming to create an incubator

A reminder
 Australia developed the fourth
computer in the world (CSIRAC)
 1947: project start
 1949: CSIR Mark 1
 1949-1954: continuous innovation
 1954: project close down - not core
competency of Radiophysics Lab