Malcolm Turnbull seems to be taking serious steps towards unlocking the funding that start ups so desperately need to fully leverage the market opportunities they’re chasing.
It’s no secret that we’ve seen start up funding disintegrate during the past decade-and-a-half since the tech bubble of the late-90s. In Australia, it’s inevitably resulted in the banks trapping the wealth, and demanding bricks-and-mortar security from any business seeking funding. This is obviously prudent for the banks, with the inherent governance requirements under which they need to operate. The issue is in the nature of start ups and the agility they need to best leverage market opportunities.
Success for Australian innovators relies on funding. The best ideas often never see the light of day or, potentially worse, are realised offshore due to a lack of investor support.
I am confident the incentives on the table, from investor tax breaks to insolvency law reforms, will stimulate funding for tech start ups from a variety of potential investors, including mums-and-dads.
The innovation statement endeavours to address the fundamentals that will allow us to challenge the marketplace about the funding vacuum and encourage individuals and institutions to take a position and invest, directly or indirectly, in technology ventures and other start ups.
Redchip’s technology and innovation law team is working through the full detail of the innovation statement and will have a more detailed analysis ready for our next Redmail in the New Year. What’s already clear from last week’s announcement, however, is that we have a Federal Government walking the talk, prepared to put the fundamentals in place to drive innovation.