×

Turnbull tackles the start up funding vacuum

crowdfunding

While the devil might be in the detail as we process the full implications of the Federal Government’s National Innovation and Science Agenda, there’s one clear takeout that has me genuinely energised.


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.

Gavin

Back to Articles
Redchip

Recent Articles

The Bull
What to do when the ATO comes knocking

Experts from our Tax and Insolvency teams recently spoke to a close group of accountants from our network about proactively dealing with the ATO and how to respond if the ATO escalates to recovery action.

Read more
Happy Family
If everyone needs a plan, why don’t they?

This market study uncovered the the obstacles preventing so many people from participating in the Estate Planning process, despite showing that most people had an understanding of how important it is.

Read more
jean-gerber-266628-unsplash
Client Story | Hold Fast avoids fast growth whiplash

While rapid growth is the goal for many businesses, it can come attached to high stakes. Hold Fast Industries was in this position when introduced to Redchip.

Read more