MAP Master Class - Intro to Startup Ecosystem

Introduction to Australian Startup Ecosystem

@Roh_WorkmanMarch 2014

Melbourne Accelerator Program

Support for entrepreneurs of all

stages:•Public Forums•Master Class Series•Startup Velocity•Escape Velocity

MAP Startup Accelerator:•$20,000•structured mentoring•co-working space

Info Night - Tuesday 25 March – 6.30pm

Sidney Myer Asia Centre

Contents

1. What is a startup?

2. What is a startup ecosystem?

3. Life cycle of a startup

4. Types of funding

5. Accelerators

6. Angel networks

7. Venture capitalists

8. Crowd Funding

9. Co-working spaces

10. Government support

11. Not-for-profit support

12. Questions

What is a startup?

According to Dave McClure, a

'startup' is a company that is

confused about:

•what its product is;

•who its customers are; and

•how to make money.

As soon as it figures out all 3 things,

it ceases being a startup and

becomes a real business.

What is a startup ecosystem?

• Entrepreneurs• Government• Universities• Investors• Mentors• Service Providers• Large companies

Startup lifecycle

Funding – Seed

Characteristics:•Very early stage•Risky•Friends, Fools, Family•Accelerator•Potentially crowd funding

Image courtesy www.enko.co.za

Accelerators

Funding - FFF

Phase 1:•Friends•Fools•Family

Funding - Angel

Characteristics:•HNW Individual•Likely has startup experience

Image courtesy www.treverimarket.com

Funding – Angel networks

Characteristics:•Collection of angels•Review / evaluate deals together•Decision to invest is made

individually

Funding – Venture Capital

Capital invested in a project

in which there is a

substantial element of risk,

typically a new or

expanding business.

Funding – Venture Capital

Startup lifecycle

Funding – Crowd Funding

The practice of funding a project or

venture by raising many small

amounts of money from a large

number of people, typically via the

Internet.

Funding – Equity Crowd Funding

The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

Co-working spaces

Government Support

Commercialisation Australia

• Skills & Knowledge – up to $50k;• Experienced Executives to up to

$350k;• Proof of Concept - $50k to $250k;• Early Stage Commercialisation -

$50k to $2m

R&D Tax Incentive

The two core components are:

•a 45 per cent refundable tax offset

(equivalent to a 150 per cent

deduction) to eligible entities with an

aggregated turnover of less than $20

million per annum

•a non-refundable 40 per cent tax

offset (equivalent to 133 per cent

deduction) to all other eligible

entities.

• Minimum $20k• Basically 150% deduction• Lodge registration application

with AusIndustry by 30 April

2014.

Business Victoria

• TRIP – ICT ($2.5k to $10k);

• TRIP – Biotechnology & Small

Technology;

• Technology Voucher Program ($10k

to $50k);

Invest Victoria

UK Trade & Investment

Not-for-Profits

Not-for-Profits

Questions?