ICT innovation is easyICT innovation is easy - -

commercialisation is hardcommercialisation is hard

Dr Silvia PfeifferDr Silvia Pfeiffer

Vquence Pty LtdVquence Pty Ltd

For Public Sphere #3For Public Sphere #3

ICT Innovation in AustraliaICT Innovation in Australia

Good education systemGood education system

Many Many creative mindscreative minds

Many innovators Many innovators

Many innovations Many innovations

Where do the innovators goWhere do the innovators go

CSIRO / NICTA / DSTOCSIRO / NICTA / DSTO

Overseas (US / UK)Overseas (US / UK)

GoogleGoogle

Join Join StartupStartup

Very few create Very few create startupsstartups

why?why?

““Crossing the chasmCrossing the chasm””

from an idea to a productfrom an idea to a product

Why not to start upWhy not to start up

No co-founder(s)No co-founder(s) Financial risk Financial risk No sound business idea No sound business idea Lack of fundingLack of funding Lack of good programmers Lack of good programmers Management requirements Management requirements Sales requirements Sales requirements No fertile market groundsNo fertile market grounds

Take out Take out ppl ppl and idea riskand idea risk

No co-founder(s)No co-founder(s) Financial risk Financial risk No sound business idea No sound business idea Lack of fundingLack of funding Lack of good programmers Lack of good programmers Management requirements Management requirements Sales requirements Sales requirements No fertile No fertile market groundsmarket grounds

Australia: Bad MarketAustralia: Bad Market

Size of the Australian marketSize of the Australian market

““Invented-hereInvented-here”” syndrome syndrome

Competitive thinking rather thanCompetitive thinking rather thancollaborative thinkingcollaborative thinking

Australia: Bad LocationAustralia: Bad Location

Lack of access to large ICTLack of access to large ICTorganisations organisations and their researchand their research

Risk-aversity Risk-aversity in investors andin investors andcustomerscustomers

Lack of appreciation ofLack of appreciation ofinvestment needs in ICTinvestment needs in ICT

Aust. VC ICT investmentAust. VC ICT investment

5 yrs ag5 yrs ago: 25+ VCso: 25+ VCs

Now: 10 firms, longer funding cycleNow: 10 firms, longer funding cycle

In ICT:In ICT:

Starfish Ventures (2008, $185M)Starfish Ventures (2008, $185M)

Southern Cross (200Southern Cross (20066: $200M): $200M)

Innovation Capital (2006: $90M) Innovation Capital (2006: $90M)

Aust. Government GrantsAust. Government Grants

grants previously:grants previously: $200M/yr Commercial Ready (<May08)$200M/yr Commercial Ready (<May08) $10M/yr COMET (at $64K $10M/yr COMET (at $64K matchedmatched)) $150M/yr Export grant (max $150K$150M/yr Export grant (max $150K

matchedmatched))

grants now: grants now: [$64M IIFF to 35 comp over 4-6 yrs] [$64M IIFF to 35 comp over 4-6 yrs] $150M/yr Export grant (max $200K$150M/yr Export grant (max $200K

matchedmatched)) $10M/year COMET (at $64K)$10M/year COMET (at $64K)

Other investment sourcesOther investment sources

AngelsAngels

Corporate InvestmentCorporate Investment

YourselfYourself

Weak Government SupportWeak Government Support

Funding dwindlesFunding dwindles

R&D Tax concession (postR&D Tax concession (postspending)spending)

…… ? ?

Ideas: Ideas: ““crossing the chasmcrossing the chasm””

ICT precinct for start-upsICT precinct for start-ups InfrastructureInfrastructure Connectivity Connectivity Mentoring Mentoring Exposure to investorsExposure to investors Exposure to clients Exposure to clients CollaborationCollaboration Exposure to Uni talentExposure to Uni talent

Ideas: Ideas: ““crossing the chasmcrossing the chasm””

Market place for biz ideasMarket place for biz ideas CSIRO / NICTA / Unis projects CSIRO / NICTA / Unis projects Entrepreneurs Entrepreneurs InvestorsInvestors Customers (large Customers (large organisationsorganisations)) aiming to create an incubator aiming to create an incubator

A reminderA reminder

Australia developed the fourthAustralia developed the fourthcomputer in the world (CSIRAC)computer in the world (CSIRAC)

1947: project start1947: project start 1949: CSIR Mark 11949: CSIR Mark 1 1949-1954: continuous innovation1949-1954: continuous innovation 1954: project close down - not core1954: project close down - not core

competency of competency of Radiophysics Radiophysics LabLab