acs young it group - 24 sept 2013
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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
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NOT Scalable
Costs
Revenues
$
time
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Scalable
$
Costs
Revenues
time
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WHY DO A STARTUP?
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Disruption
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Massive global markets
April 2012
700 million registered users
40 million concurrent users
8 million paying users
$860 million annual revenues
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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?
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HOW TO COME UP WITH A KILLER STARTUP IDEA
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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
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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
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NDAs
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THE BRISBANE STARTUP ECOSYSTEM
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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%
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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
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Just do it
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Thank you
Colin Kinner
email [email protected]
www.spikeinnovation.com.au
@ColinKinner
http://au.linkedin.com/in/colinkinner
@ColinKinner
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