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.

1. S
Building Technology
Ecosystems and the
Importance of Compound
Interest
Mick Liubinskas
muru-D, Pollenizer, Startmate
2014

2. “The most powerful force in the
universe is compound interest.”
S
Albert Einstein

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. What happens when a
company gets capital
outside Australia or
S
moves overseas?

5. Company started in Australia

6. They need capital and help,
but can’t find it in Australia
Founders
Capital & Help
Australia

7. They find it overseas and often
Founders
Capital & Help
Australia
move near the capital
Overseas
Investors

8. They find it overseas and often
move near the capital
Australia Investors
Founders
Overseas
Capital & Help

9. With the help, they grow
and succeed
Founders
Capital & Help
Grow &
Succeed
Overseas
Australia Investors

10. Through dividends or trade
sale, they get cash out
Founders
Capital & Help
Grow &
Succeed
Cash Out
Overseas
Australia Investors

11. They play golf, go to Mexico,
get bored, get back in the
game
https://flic.kr/p/5Re1Bo

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. What happens when a
company gets capital
S
from Australia
and stays here?

14. Company Started In Australia
Founders
Australia

15. The start growing and need
Founders
Capital & Help
Australia
help and capital

16. They find an experienced,
Founders
Capital & Help
Smart Investors
Australia
local investor

17. Founders
Capital & Help
Smart Investors
Grow &
Succeed
Australia
With help, they grow
and succeed

18. Through dividends or trade
sale, they get cash out
Founders
Capital & Help
Grow &
Succeed
Cash Out
Smart Investors
Australia

19. Play golf, go to Croatia,
get bored, want the thrill again
https://flic.kr/p/6YLTkE Creative Commons

20. Then they become experienced
investors. The ecosystem grows at a
Founders
Capital & Help
Grow &
Succeed
Cash Out
Smart Investors
Australia
faster rate

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. 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. 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. 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