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Startup Ecosystems and Compound Interest - Australia

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Why is it worth working extra hard to keep successful companies in a local ecosystem?
This presentation shows how keeping companies local increases the size, speed and strength of the industry.
This is evident in Silicon Valley which has done maybe 50 laps of this entrepreneurial block.

Published in: Business
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Startup Ecosystems and Compound Interest - Australia

  1. 1. S Building Technology Ecosystems and the Importance of Compound Interest Mick Liubinskas muru-D, Pollenizer, Startmate 2014
  2. 2. “The most powerful force in the universe is compound interest.” S Albert Einstein
  3. 3. S What is compound interest? Where the returns increases the size of the base, which then increases the size of returns, which increases the size of the base, and so on
  4. 4. What happens when a company gets capital outside Australia or S moves overseas?
  5. 5. Company started in Australia
  6. 6. They need capital and help, but can’t find it in Australia Founders Capital & Help Australia
  7. 7. They find it overseas and often Founders Capital & Help Australia move near the capital Overseas Investors
  8. 8. They find it overseas and often move near the capital Australia Investors Founders Overseas Capital & Help
  9. 9. With the help, they grow and succeed Founders Capital & Help Grow & Succeed Overseas Australia Investors
  10. 10. Through dividends or trade sale, they get cash out Founders Capital & Help Grow & Succeed Cash Out Overseas Australia Investors
  11. 11. They play golf, go to Mexico, get bored, get back in the game https://flic.kr/p/5Re1Bo
  12. 12. Because of connections and experience, they are often likely to become overseas investors, more than Australian investors Founders Capital & Help Grow & Succeed Cash Out Overseas Australia Investors
  13. 13. What happens when a company gets capital S from Australia and stays here?
  14. 14. Company Started In Australia Founders Australia
  15. 15. The start growing and need Founders Capital & Help Australia help and capital
  16. 16. They find an experienced, Founders Capital & Help Smart Investors Australia local investor
  17. 17. Founders Capital & Help Smart Investors Grow & Succeed Australia With help, they grow and succeed
  18. 18. Through dividends or trade sale, they get cash out Founders Capital & Help Grow & Succeed Cash Out Smart Investors Australia
  19. 19. Play golf, go to Croatia, get bored, want the thrill again https://flic.kr/p/6YLTkE Creative Commons
  20. 20. Then they become experienced investors. The ecosystem grows at a Founders Capital & Help Grow & Succeed Cash Out Smart Investors Australia faster rate
  21. 21. Triple Compound Interest 1. Local investors get returns and base grows 2. Founders become local investors and base grows 3. Share options give employees returns and base grows
  22. 22. So what is the priority? S Startups are hard. S The priority of the founders is to succeed. S The priority of the industry is to help them succeed by staying here.
  23. 23. What can you do? S Invest in an Australian Startup. Even $5,000 and one day per month will make a massive difference. S Help connect Australian startups to Australian investors. S Lobby government to change ESVCLP to apply to all startup investing. S If you’re a co-founder, try extra hard to find the right investor in Australia. But, do what you need to do.
  24. 24. How’s my driving? Email me with feedback at mick@liubinskas.com Mick Liubinskas Entrepreneur in Residence at muru-D Co-Founder of Pollenizer Investor at Startmate http://liubinskas.com

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