How Incubators are Leading the Startup Revolution in Australia

by Subhan Alam  February 7, 2018

Australia is all set for a promising startup future. Owing to the country’s year-on-year GDP growth, an efficient public education system, and a business culture rooted in embracing change and innovation, it has the conditions conducive for a robust startup economy.

startup incubator In Australia

Nonetheless, a major factor contributing to the enterprising economy is Australian startup incubators. These organizations provide collaborative programs and support to help startups acquire the much-needed expertise and experience to take the business into the real world.

In this post, I will look at how incubators are leading the change in the Australian startup industry and what it means for getting your own small business off the ground.

Australia Startup Industry Insights

Although the Australian startup industry shows signs of growth, it is grappling with many challenges. Firstly, there is a polarization of startup growth. According to the 2017 Startup Muster survey, startups are predominantly located in Sydney (41%). On the other hand, Victoria has witnessed a dramatic decline of more than 4 percent in the previous year.

Secondly, startup owners face the challenge of setting up their business with minimum of hassles and roadblocks. The survey found the average owner was in the 36-38 age range. These owners faced three main challenges: difficulty in raising funds, lack of technical skills, and high financial risk.

Funding remains an issue owing to the unpopularity (an unavailability) of government grants that increased the financial risk. Technical skills are a much needed resource due to the popularity of Fintech, Edutech, and IoT as the three most popular startup sectors. Most startups owners do not have the relevant education background and have difficulty leveraging technical competences and resources.

How Incubators Help Startups

Incubators provide a wide range of programs and services to address the startups’ most pressing challenges. In particular, the impact of incubators is felt in the following five areas:

Invest in Startups

Incubators offer considerable financial support and help raise funds either through grants or investing directly into the business in exchange for equity. This way, both the startup and incubator share a common goal of achieving financial success and return on the investment.

Connect With Investors

Incubators are well connected with investors and venture capitalists. This offers a unique edge to startups that partner with these incubators. Startup owners often get to network with people that would be otherwise inaccessible for various reasons.

Co-working Spaces

Startups usually lack the capital to invest in office space. Incubators fill the gap by providing shared or co-working spaces that help eliminate or minimize overheads such as office rent and utilities.

Expert Training and Feedback

Many incubators hire business coaches and consultants who are often owners of successful companies and startups. These coaches bring in the breadth of experience that enhance the startup’s knowledge and experience and offer insightful opinions as per the requirements of specific industries.

International exposure

In many instances, startups couldn’t afford to visit domestic and foreign startups that are working on similar ideas. Many incubators arrange trips to Silicon Valley and Europe to provide the much-needed exposure. Startup owners get a first-hand glimpse of what works and what they need to gain a competitive advantage.

Popular Australian Startup Incubator Success Stories

Undoubtedly, the role incubators play in providing startups the necessary environment to develop and leverage their resources is significant.

But what does this mean in practical terms?

Here are three popular Australian startups that have grown through the support of incubators.

Syntropy

Syntopy is pioneering Artificial Intelligence for business process automation. This startup incubated at Startmate.

Flirtey

A drone-delivery startup business, Flirtey has successfully raised $16 million dollars, also through Startmate. Flirtey has successfully tested and launched its drone delivery system and is expected to become a major UPS provider/partner in the coming years.

Data Republic

Data Republic offers specialized analytics insights covering a wide range of industries including retail, automotive, and insurance. Data Republic is a graduate of incubator program of Stone and Chalk.

List of Australian incubators

If you’re keen on enrolling in a quality Australian incubator program for your startup, the following are a number of incubators that you can enlist the support and expertise.

Atomic Sky BTP IAccelerate Innovation Centre Innovyz MKT Place Ventures MURU nvi flinders Pollenizer Push Start qutcea Slings hotters spacecubed Startup Tasmania Stone and Choke YBF River City Start Mate

Conclusion

As you can see, startup incubators in Australia are paving the way for startup growth in a myriad of ways. From providing expert training to research funding, they are serving a key role as change agents.
This leaves you with one question: ‘How do you intend to make use of incubators for your own startup idea?’ Let us know in the comments below.

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About Subhan Alam

Subhan Alam is a Digital Marketing Manager at Cloudways, a Managed Cloud Hosting Platform. He works on different regions and is passionate about implementing new approaches in Digital Marketing. He likes to stay fit and meditates daily.

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