{"id":35988,"date":"2023-10-20T14:41:32","date_gmt":"2023-10-20T14:41:32","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/the-year-startups-hit-the-mainstream-2015-in-review-startupsmart\/"},"modified":"2023-10-20T14:41:32","modified_gmt":"2023-10-20T14:41:32","slug":"the-year-startups-hit-the-mainstream-2015-in-review-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/the-year-startups-hit-the-mainstream-2015-in-review-startupsmart\/","title":{"rendered":"The year startups hit the mainstream: 2015 in review – StartupSmart"},"content":{"rendered":"
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It was fast-approaching midnight on a Monday night when newly minted<\/a> Prime Minister Malcolm Turnbull strode to the podium in front of a mass of journalists, cleared his throat and proceeded to herald a \u201cnew era\u201d for the Australian tech and startup community.<\/p>\n

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It was as if he\u2019d just been reading a book on startup buzzwords, repeatedly using \u201cagile\u201d, \u201cinnovative\u201d and \u201cdisruptive\u201d as he emphasised the need to embrace new technologies to create the \u201ceconomy of the future\u201d.<\/p>\n

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\u201cWe have to recognise that the disruption we see driven by technology, the volatility in change is our friend if we are agile and smart enough to take advantage of it,\u201d Turnbull said.<\/p>\n

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It would prove to be a turning point and transform 2015 into the \u201cbiggest ever\u201d year for startups.<\/p>\n

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\u201c2015 has to be the year of entrepreneurship, startups and innovation,\u201d startup consultant and speaker Anne-Marie Elias tells StartupSmart<\/i>.<\/p>\n

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\u201cI can\u2019t recall ever having this strong of a narrative about this in the public and political arenas.\u201d<\/p>\n

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Back to the start<\/b><\/p>\n


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But the year didn\u2019t start so promisingly.<\/p>\n

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The then Tony Abbott-led federal government delivered the budget and for the startup community it was just more of the same<\/a>.<\/p>\n

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Startups were grouped in with the small businesses and saw little benefits in the changes.<\/p>\n

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\u201cIt is not a budget for startups,\u201d MoneyPlace co-founder Stuart Stoyan said at the time.<\/p>\n

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It led to rallying cry from the startup community: \u201cwe are not small businesses\u201d and one that Canberra would soon hear loud and clear.<\/p>\n

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The crowning moment<\/b><\/p>\n


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The political landscape is now a different entity entirely \u2013 there\u2019s a new prime minister, a new cabinet, new policies and a newfound emphasis on innovation and startups.<\/p>\n

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These aspects are now front and centre in political rhetoric and Turnbull devoted his first significant policy package to the new technology and entrepreneurship with the $1 billion innovation statement<\/a>.<\/p>\n

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This will be the moment that defines 2015 for the ecosystem, Blackbird Ventures co-founder Rick Baker says.<\/p>\n

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\u201cIt\u2019s been a breath of fresh air for the startup community and it culminated with the statement,\u201d Baker says.<\/p>\n

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After wide consultations with the startup community and experiments with hackathons and roundtables, many leaders in the community say the statement addressed a myriad of concerns that have been lingering for many years.<\/p>\n

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\u201cEvery Australian will benefit from an agenda that puts innovation and science at the heart of government,\u201d the statement proclaimed.<\/p>\n

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Beginning to shift the culture<\/b><\/p>\n


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It also marked an attempt to bolster a culture surrounding innovation, aiming to herald an \u201cideas boom\u201d and embrace the concept of failure as a way to learn and experience.<\/p>\n

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But it wasn\u2019t all positive from the community, with one aspect of the statement proving especially controversial.<\/p>\n

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The government\u2019s legislation to reform equity crowdfunding legislation received large push-back from many in the community, with it immediately labelled a \u201cdead duck\u201d and the opposition quickly withdrawing its long-standing support.<\/p>\n

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It was a moment that marked the end of the government\u2019s innovation honeymoon and proved that for the startup community, it\u2019s about what the government does, not its use of the right terminology.<\/p>\n

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The large statement was also criticised for not addressing the funding gap in Australia \u2013 early-stage rounds are already on the improve, but it\u2019s when growing startups look to raise large Series A or B rounds that they are forced to look offshore.<\/p>\n

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Hitting the mainstream<\/b><\/p>\n


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So long relegated to the fringes of society and media coverage, 2015 was the year that startups and tech companies became mainstream news.<\/p>\n

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\u201cThe wave has been building for a long time but without a doubt startups really hit the mainstream this year,\u201d startup advisor and investor Nicole Williamson says.<\/p>\n

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The innovation statement hit the front page of every major newspaper and startups have rapidly become a fashionable conversation around the country.<\/p>\n

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The shift in culture and debate has been huge, Fishburners general manager Murray Hurps says.<\/p>\n

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\u201cI never thought I\u2019d see the day when the papers in Australia are covering startups,\u201d Hurps says.<\/p>\n

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\u201cPeople are starting to understand what startups actually are and soon they\u2019ll understand the incredible opportunity they present to Australia.\u201d<\/p>\n

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Australia\u2019s first global success<\/b><\/p>\n


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It was a year that also saw Australia\u2019s own great startup success story make it on the world\u2019s stage.<\/p>\n

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The long-standing poster child of the local community, Atlassian\u2019s overwhelmingly successful listing rocketed into the global spotlight<\/a> and proved that two local entrepreneurs, Mike Cannon-Brookes and Scott Farquhar, can conquer the world.<\/p>\n

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\u201cIt really put Australia on the global stage,\u201d Baker says.<\/p>\n

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\u201cIt\u2019s really important not only for giving a big boost in creating a big lighthouse for the Australian startup community and drawing more into it, but just to see what\u2019s actually possible.\u201d<\/p>\n

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Although the listing was in the US, it\u2019s likely to have very positive impacts in Australia, Williamson says.<\/p>\n

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\u201cThe Atlassian founders have already ploughed huge amounts of time, effort and cash into the local tech scene and with any luck we will see some of the newly minted Atlassian millionaires start to build or invest in startups here too,\u201d she says.<\/p>\n

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The VC scene begins to rebuild<\/b><\/p>\n


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A long-standing pain point for founders and entrepreneurs, 2015 also saw the Australian VC landscape begin to \u201crebuild itself\u201d.<\/p>\n

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There are now unprecedented levels of funds on offer for startups, with the country now boasting four $200 million VC funds<\/a>.<\/p>\n

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\u201cIt\u2019s an industry that\u2019s finding its feet again,\u201d Baker says.<\/p>\n

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The re-establishment of a venture capital appetite was reflected in large Series A and B rounds for some of the bigger Australian startups.<\/p>\n

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Back in May design company Canva raised $7.7 million<\/a>, while software startup SafetyCulture closed a $6.1 million Series A round<\/a> later in the year.<\/p>\n

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Shoes of Prey also proved that a homegrown tech company can attract US investors, securing a whopping $21 million funding round<\/a>.<\/p>\n

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The state of affairs<\/b><\/p>\n


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Not content with watching the federal government finally make some moves, many state governments also made some big plays with innovation policies.<\/p>\n

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Victoria and Queensland proved to be the big winners for the year, with Victoria pulling off some especially big coups.<\/p>\n

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Queensland launched a $40 million co-investment fund<\/a> with the aim of kick-starting a \u201cstartup revolution\u201d and also took the front foot on education, introducing compulsory coding and robotics classes to all state schools<\/a>.<\/p>\n

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Victoria took a different approach, investing \u201csignificant\u201d money to entice large international tech companies to set up regional headquarters in the city, including Slack, Zendesk and GoPro. It took nearly the whole year, but the state\u2019s $60 million innovation fund was also launched, in the form of an independent representative body called LaunchVic<\/a>.<\/p>\n

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The country\u2019s largest startup festival also changed hands, when the busy minister for small business, innovation and trade Philip Dalidakis right in front of the Sydney Town Hall cheekily announcing SydStart will be taking place in Melbourne next year<\/a>.<\/p>\n

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Diversity still an issue<\/b><\/p>\n

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Despite the positive improvements in numerous areas, the pervading issue across most tech communities still lingers over the Australia ecosystem, with the annual Startup Muster<\/i> report showing that only 24% of startups are founded by women<\/a>.<\/p>\n

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That\u2019s a small increase from 19% the year before. However, according to Williamson, things are starting to improve more rapidly and next year looks promising for an increase in diversity.<\/p>\n

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\u201cIt\u2019s brilliant to see many more female founders getting attention,\u201d she says.<\/p>\n

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\u201cThe more visibility they get the more young women will be attracted to this world.<\/p>\n

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\u201c2016 will be our year \u2013 women as founders, women as investors and women taking on senior roles in Turnbull\u2019s innovation leadership team.<\/p>\n

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\u201cThere are some kick-ass young female entrepreneurs out there.\u201d<\/p>\n

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The innovation statement was also criticised for providing little focus on improving diversity in the field. However, $13 million was put towards encouraging more women to take STEM subjects and other avenues to promote diversity.<\/p>\n

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The year to come<\/b><\/p>\n


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A common census among the startup community is 2015 was the year when much of the foundation for a world-class ecosystem was created \u2013 the policies, the VC funds, the initial successes \u2013 and 2016 will be the year of action.<\/p>\n

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While the first half of 2016 may seem a dip in funding on offer as investors wait for the taxation changes to come into effect in July, many organisations have already greatly increased their goals and expectations for the year.<\/p>\n

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\u201cAt BlueChilli we have reset our goals from $100 million by 2016 to $1 billion by 2020, we\u2019ve opened in Melbourne and we\u2019ve announced we\u2019re opening in Brisbane. Our portfolio is up 40% year-on-year,\u201d BlueChilli co-founder Sebastian Eckersley-Maslin says.<\/p>\n

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With the foundation laid, it\u2019s time to get moving, Elias says.<\/p>\n

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\u201c2016 has to be the year of action, enough said,\u201d she says.<\/p>\n

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\u201cWe\u2019ve embraced the new narrative and we are on board and in like mind.<\/p>\n

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\u201cNow it\u2019s time to deliver on the hype and the promise.\u201d<\/p>\n

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For Hurps, things are only set to get better.<\/p>\n

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\u201c2015 was the biggest year ever in the history of Australia\u2019s startup sector,\u201d he says.<\/p>\n

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\u201cBut the best part is that all signs point to 2016 being far bigger.\u201d<\/p>\n

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Do you know more on this story or have a tip of your own? Raising capital or launching a startup? Let us know. Follow StartupSmart on <\/i>Facebook<\/i><\/a>, <\/i>Twitter<\/i><\/a>, and <\/i>LinkedIn<\/i><\/a>.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

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