ICT innovation is easy
            -
commercialisation is hard


      Dr Silvia Pfeiffer
      Vquence Pty Ltd
    For Pu...
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 go...
Take out ppl and idea risk

   No co-founder(s)
   Financial risk
   No sound business idea
   Lack of funding
   Lac...
Australia: Bad Market

 Size of the Australian market
 “Invented-here” syndrome
 Competitive thinking rather than
 coll...
Australia: Bad Location

 Lack of access to large ICT
 organisations and their research
 Risk-aversity in investors and
...
Aust. VC ICT investment

5 yrs ago: 25+ VCs
Now: 10 firms, longer funding cycle
In ICT:
 Starfish Ventures (2008, $185M)
...
Aust. Government Grants
 grants previously:
     $200M/yr Commercial Ready (<May08)
      $10M/yr COMET (at $64K matche...
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
     Ex...
Ideas: “crossing the chasm”

 Market place for biz ideas
     CSIRO / NICTA / Unis projects
     Entrepreneurs
     In...
A reminder

 Australia developed the fourth
  computer in the world (CSIRAC)
 1947: project start
 1949: CSIR Mark 1
 ...
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Public Sphere3: ICT innovation is easy - commercialisation is hard

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At the recent Public Sphere #3 organised by Senator Kate Lundy, I gave this presentation to provide a view on what startups go through to turn an innovation into a product and why Australia can be a really hard place to do this.

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Public Sphere3: ICT innovation is easy - commercialisation is hard

  1. 1. ICT innovation is easy - commercialisation is hard Dr Silvia Pfeiffer Vquence Pty Ltd For Public Sphere #3
  2. 2. ICT Innovation in Australia  Good education system  Many creative minds  Many innovators  Many innovations
  3. 3. Where do the innovators go  CSIRO / NICTA / DSTO  Overseas (US / UK)  Google  Join Startup
  4. 4. Very few create startups why?
  5. 5. “Crossing the chasm” from an idea to a product
  6. 6. 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
  7. 7. 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
  8. 8. Australia: Bad Market  Size of the Australian market  “Invented-here” syndrome  Competitive thinking rather than collaborative thinking
  9. 9. 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
  10. 10. 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)
  11. 11. 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)
  12. 12. Other investment sources  Angels  Corporate Investment  Yourself
  13. 13. Weak Government Support  Funding dwindles  R&D Tax concession (post spending)  …?
  14. 14. Ideas: “crossing the chasm”  ICT precinct for start-ups  Infrastructure  Connectivity  Mentoring  Exposure to investors  Exposure to clients  Collaboration  Exposure to Uni talent
  15. 15. Ideas: “crossing the chasm”  Market place for biz ideas  CSIRO / NICTA / Unis projects  Entrepreneurs  Investors  Customers (large organisations)  aiming to create an incubator
  16. 16. 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
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