These incubators/VCs have the ability to bring more money to the table. They simply choose not to. And let's be honest here. The only reason they are pushing them to the US is so they can make money. They are sycophants.
If they really cared about the industry they would be encouraging these people to stay in Australia, build something to benefit the local market and help them expand into Asia like every country dreams of and which we are uniquely positioned.
And so far every successful Australian startup that I know of mad it in Australia BEFORE expanding to the US. Not when you have nothing more than an idea/prototype.
But I would hope that when many are taking TAXPAYER money that they would think about something more than short term money. After all it is in their best interest to have successful Australian startups.
Wait -- what VCs are funded with tax dollars? Either you guys do things very differently in Australia, or I'm missing your point altogether.
Regardless, it isn't necessarily as black and white as you've stated. They aren't just looking for the 'short term' money, but to give the teams the best opportunities for success.
Per beilabs' argument, it seems that their best chances for success aren't in Australia.
You also seem to be missing the fact that it's a boon to the Australian economy for companies to succeed, even if they succeed elsewhere, unless they completely emigrate. Every Australian success story sparks another entrepreneur in Australia to get motivated.
Yeah, it sucks that the deck is stacked against them at the moment, but that's not a problem the VCs can fix until the government gets cracking to foster startups. That's a long slow process... and as the existing government watches startups leave for those reasons, it should serve to motivate them to fix their laws and better retain local talent.
8 companies from this year's Startmate batch incorporated in the US from day 1 (last year only 2 flipped up post incorporation).
Flightfox is in YC. Happy Inspector is in 500 startups. Scriptrock raised in the US. Ninjablocks went nuts on Kickstarter and also raised in the US. The other 4 I believe are either back in Australia or are heading back here, most of them also raised money in the US.
So why did they incorporate in the US instead of Australia? Because ONE company from Startmate 2011 raised in Australia (that'd be us), and even then most of our first round came from the US.
So the choice is either to run an incubator that results in no companies getting funded, OR you get them to a place where they can raise money and be successful, and last I checked that's the whole point of an incubator.
As far as VC's go, it makes literally no sense for a VC to be pushing their portfolio companies to the US were valuations are higher. All they'd be doing is making it more expensive for themselves to invest in future rounds. They're not that dumb.
There will continue to be no investment in startups in Australia until there is PROOF that investing in Australian startups isn't a dickhead investment. The best way to do that is to do everything you can to get these companies to be successful. These companies are doing great things in the US and it is ALREADY encouraging several (up to 6 that I know of) new funds to get started in Australia WITH substantial incentives from the Aus Govt.
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Bingo.
And the fault lies with the incubators/VCs who are pushing and pushing these startups/entrepreneurs to go to the US so they can exit profitably.
They are basically trading off the long term health of the industry for short term personal gain. They are a disgrace.
Disgrace is too strong of a word.
If I was being offered a multi-million dollar round of funding that I wasn't getting in Australia I would be a fool not to go.
Many who have gone in the past have promised to come back and give back to the startup scene where they came from.
Time will tell if they kept their promise...
How is it too strong of a word ?
These incubators/VCs have the ability to bring more money to the table. They simply choose not to. And let's be honest here. The only reason they are pushing them to the US is so they can make money. They are sycophants.
If they really cared about the industry they would be encouraging these people to stay in Australia, build something to benefit the local market and help them expand into Asia like every country dreams of and which we are uniquely positioned.
And so far every successful Australian startup that I know of mad it in Australia BEFORE expanding to the US. Not when you have nothing more than an idea/prototype.
You are aware that making money is kind of the point of venture capital, right?
True.
But I would hope that when many are taking TAXPAYER money that they would think about something more than short term money. After all it is in their best interest to have successful Australian startups.
Wait -- what VCs are funded with tax dollars? Either you guys do things very differently in Australia, or I'm missing your point altogether.
Regardless, it isn't necessarily as black and white as you've stated. They aren't just looking for the 'short term' money, but to give the teams the best opportunities for success.
Per beilabs' argument, it seems that their best chances for success aren't in Australia.
You also seem to be missing the fact that it's a boon to the Australian economy for companies to succeed, even if they succeed elsewhere, unless they completely emigrate. Every Australian success story sparks another entrepreneur in Australia to get motivated.
Yeah, it sucks that the deck is stacked against them at the moment, but that's not a problem the VCs can fix until the government gets cracking to foster startups. That's a long slow process... and as the existing government watches startups leave for those reasons, it should serve to motivate them to fix their laws and better retain local talent.
What a lot of shit.
8 companies from this year's Startmate batch incorporated in the US from day 1 (last year only 2 flipped up post incorporation).
Flightfox is in YC. Happy Inspector is in 500 startups. Scriptrock raised in the US. Ninjablocks went nuts on Kickstarter and also raised in the US. The other 4 I believe are either back in Australia or are heading back here, most of them also raised money in the US.
So why did they incorporate in the US instead of Australia? Because ONE company from Startmate 2011 raised in Australia (that'd be us), and even then most of our first round came from the US.
So the choice is either to run an incubator that results in no companies getting funded, OR you get them to a place where they can raise money and be successful, and last I checked that's the whole point of an incubator.
As far as VC's go, it makes literally no sense for a VC to be pushing their portfolio companies to the US were valuations are higher. All they'd be doing is making it more expensive for themselves to invest in future rounds. They're not that dumb.
There will continue to be no investment in startups in Australia until there is PROOF that investing in Australian startups isn't a dickhead investment. The best way to do that is to do everything you can to get these companies to be successful. These companies are doing great things in the US and it is ALREADY encouraging several (up to 6 that I know of) new funds to get started in Australia WITH substantial incentives from the Aus Govt.