acs young it group - 24 sept 2013

HIGH-GROWTH STARTUPS(AND WHY YOU SHOULD START ONE TODAY!)

Young IT Group25 Sept 2013

Colin Kinner

@ColinKinner

Background

@ColinKinner

WHAT IS A STARTUP?

@ColinKinner

Startup = young, high growth company

Technology startup = startup in which technology is central to the product or service being provided

@ColinKinner

Global growth potential

High growth potential, national / global focus

Modest growth, domestic focus

Lifestyle / micro-business

Pote

ntial

val

ue o

f com

pany

<$1m

$1-5m

$5-100m

>$100m

Number of companies

Scalable startups

@ColinKinner

NOT Scalable

Costs

Revenues

$

time

@ColinKinner

Scalable

$

Costs

Revenues

time

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WHY DO A STARTUP?

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Disruption

@ColinKinner

Massive global markets

April 2012

700 million registered users

40 million concurrent users

8 million paying users

$860 million annual revenues

@ColinKinner

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Low barrier to entry

“Heavy” software

“Light” software/ apps

1980’s 1990 2000 2010

Networking infrastructure

Computer hardware

Processors

$20m <$100k$50m$50m$100mCapital required

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WHY DO A STARTUP NOW?

@ColinKinner

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HOW TO COME UP WITH A KILLER STARTUP IDEA

@ColinKinner

1. Notice things that suck, and think of ways to make them better.

2. If something bugs you, it might also bug 100 million other people.

3. Some of those people might pay for a better solution.

@ColinKinner

What makes a good startup idea?

• You understand the problem• You can think of a better solution• You can build the solution• Few others have realised it’s worth doing

Live in the future, then build what's missing.Paul Graham, Y Combinator

@ColinKinner

Startup idea #9:

- Online community for neighbourly interactions

- Peer-to-peer sharing of resources- Discounts on travel-intensive service

providers tradies- Monetise via subscription and

advertising

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Startup idea #16:

- Crowdsource professional photography

- Unlock the millions of images sitting on pro photographers’ hard drives (ie. not searchable)

- Advertisers Corporates post briefs to photographers who can submit existing images

@ColinKinner

NDAs

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THE BRISBANE STARTUP ECOSYSTEM

@ColinKinner

Education

Incubators

Angelinvestors

Venture capital

Corporates

Serviceproviders

Government

Co-founders

STARTUPS

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Incubators and co-working spaces

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FUNDING FOR STARTUPS

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Where do startups raise money?

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Crowd-funding

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STARTUP CHALLENGES

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7%

@ColinKinner

Australian startup founders by educational backgroundUniversity of New South Wales

University of Technology Sydney

University of Sydney

University of Melbourne

Macquarie University

Monash University

Australian Graduate School of Management

University of Wollongong

RMIT University

Swinburne University of Technology

Queensland University of Technology

Australian National University

Curtin University of Technology

University of Western Australia

University of Adelaide

Index: University of New South Wales = 100

@ColinKinner

No, I will NOT

be your technical

co-founder

@ColinKinner

Angel investment activity per capita

968

$84

Number of angel investors per million of

population

Amount invested by angels nationally

(A$ per capita per annum)

Sources: HALO Report, Angel Resource Institute, Angel Capital Association, Angel Investment Network, AAAI members

14

$0.95

91

$5.70

AU NZ

AU NZ

@ColinKinner

Availability of venture capital

Australia $4.09 ($90m total in 2012)

Australia 2012 Olympic Games preparation $14.10 ($310m total)

Melbourne Cup bets $9.09 ($200m total)

$ VC invested per capita

$3,945Silicon Valley

Sources: US National Venture Capital Association, European Private Equity and Venture Capital Association, Israel Venture Capital Research Centre, AVCAL, NZVCA, UN

New Zealand

This is a big problem

This is a big opportunity

@ColinKinner

Just do it

@ColinKinner

Thank you

Colin Kinner

email colin@spikeinnovation.com.au

www.spikeinnovation.com.au

@ColinKinner

http://au.linkedin.com/in/colinkinner

@ColinKinner

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