\u201cSince 1991, the Israeli government has deployed $660m in funding to incubators with a five to one matched funding program in eligible startups in incubators. The money is offered as a limited recourse loan, payable out of revenues (4%) with no penalty on early repayment. Since 1991 (as at August 2015), 24 incubators had been created and 1,600 startups funded with a 50% success rate. (Success is defined if the startup later raised funds greater than the government contribution.) $220 million has been recovered by the royalty and repayments (so net $440 million) and there is an additional recovery through the tax on salaries from the people employed through those startups. Importantly however, $5.1B of foreign investment has gone into those successful companies.\u201d<\/em><\/p>\n<\/blockquote>\nThe real kicker regarding the government is that, instead of throwing the bulk of the investment into the programs that have proven some level of success in Australia already, they are going to instead going to invest a significant proportion of the $8 million taxpayer\u2019s money into bringing new, flashy, international programs to Australia with the support of international companies such as Microsoft (which in 2014 paid only $31.2m tax on $567.7 million revenue).<\/p>\n
The announcement that minister Pyne made recently around $280,000 in funding for MassChallenge, whilst being a quality program that we are eager to engage with, seems to be timed as an opportunity for a media release and public image campaign leading up to the election.<\/p>\n
Companies like Microsoft, and our government, should be focusing on finding the highest impact incubators and accelerators in Australia and scaling them up. The ROI will be significantly higher and the long term impact for Australian jobs, productivity and our future industries significantly better.<\/p>\n
The platform CapitalPitch has created accelerates startup investment with a series of software, tools, systems and methodologies that are provided to startup investment stakeholders such as accelerators and incubators to help them create more investor-ready startups; thereby raising more money and creating more jobs.<\/p>\n
Many incubators and accelerators struggle to create a sustainable economic model for themselves which has in the past led to poor decisions at the expense of some startups; with this in mind, we have also created a revenue sharing model to help these programs become financially sustainable independent of Government funding or sponsorship. Ultimately these programs must become financially sustainable and we are here to help them.<\/p>\n
Our first formal accelerator partnership, which we are extremely excited to announce, is with Springboard Enterprises Australia, founded 14 years ago and chaired by Topaz Conway.<\/p>\n
Springboard is a highly-vetted expert network of innovators, investors and influencers who are dedicated to building high-growth technology-oriented companies led by women.<\/p>\n
I\u2019m personally very excited by this partnership because it is such an amazing program with great success already, for which we can provide an improved capital raising platform and sustainable financial model so they can scale up and positively impact even more amazing women.<\/p>\n
Follow StartupSmart on Facebook, Twitter, LinkedIn and SoundCloud.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"This is the second article in a series where CapitalPitch co-founder Jeremy Liddle will explore different aspects of the government\u2019s innovation<\/p>\n","protected":false},"author":1,"featured_media":58574,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,11,6,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/45810"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=45810"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/45810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/58574"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=45810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=45810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=45810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}