STARTUP ECOSYSTEM PRELIMINARY REPORT
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Western Australia 2015
STARTUP ECOSYSTEM PRELIMINARY REPORT
Preliminary report on the People, Groups and Companies involved in Western Australia’s early stage digital & internet technology industry.
DECEMBER 2015
Produced by Boundlss in partnership with
StartupWA, the Western Australian Department of
Commerce, and the City of Perth.STARTUPS
INTERNET OR TECHNOLOGY STARTUPS - Booze Droid (Mobile Software/Services) Dusty Dynamics TM (Electronics & Hardware)
ACTIVE & INACTIVE (422) Boundlss (Health-Tech) Easy Trace (Fin-Tech)
Brainchip (Big Data) Eat Cheap (eCommerce/Marketplace)
1-PAGE (HR-Tech) brightpath | Pairwise (Ed-Tech) Ecocentric Energy (Internet-of-Things)
2015 Jobs (HR-Tech) BuildingApprovals.com (Construction-tech) Educaze (Ed-Tech)
3D Graphtech Industries (3D Printing) BusinessZoom (Internet Software/Services) Eggmaps (Mobile Software/Services)
3D Image Automation (Resource-Tech) Buzd (Big Data) Eight Spots (eCommerce/Marketplace)
3D Printing Perth (3D Printing) Buzzy (On-Demand) eKarma (eCommerce/Marketplace)
4DS Inc (Semiconductors) Bytesize (Mobile Software/Services) Electronic Pain Assessment Technologies (ePAT)
6Q (HR-Tech) ByteSprite (Game Studio) (Health-Tech)
7-min.com (Health-Tech) Calico Global (Health-Tech) Engagement Coach (Social)
90 seconds.tv (Media & News) Canteen4Schools (Internet Software/Services) Engineering Institute of Technology (Ed-Tech)
AccessVIP (eCommerce/Marketplace) Cardnap (eCommerce/Marketplace) Epic Delivery (On-Demand)
Accweb (Fin-Tech) CGR (Internet Software/Services) Episafe (HR-Tech)
Activistic (Fin-Tech) ChatStar Mobile Application (Social) Espressoland (eCommerce/Marketplace)
Advanced Oilfield Applications (Resource-Tech) Cheersy (eCommerce/Marketplace) Eternal Eve (Health-Tech)
Adventure Snacks (eCommerce/Marketplace) Cine Surfer (Media & News) eTool (Construction-Tech)
Aegle Life (Health-Tech) Circadyn (Health-Tech) Everythere (Mobile Software/Services)
Aerial Aspects (Resource-Tech) Cirrena IVS (Internet Software/Services) Expenseworks (Fin-Tech)
AgroPy (Ag-Tech) ClassCanary (Ed-Tech) Exploco (Travel & Tourism)
Airing IPTV (Internet Software/Services) Clinical Excellence Technologies (Health-Tech) Fact4Foto (Mobile Software/Services)
Airport Downtime App (Travel & Tourism) Clivir (Ed-Tech) Fans2Cash (Internet Software/Services)
Airscope (Robotics-Drones-AV) Clock-E (Electronics & Hardware) Farugi (Music-Tech)
ALLK (Game Studio) ClockItEQ (Mobile Software/Services) Fast Brick Robotics (Robotics-Drones-AV)
Altitude Imaging (GIS) ClothesLine (eCommerce/Marketplace) FastIQ (Fin-Tech)
Amaroo (Unknown) Cloudmine (Resource-Tech) Fastvue (Internet Software/Services)
APE Mobile (Construction-Tech) CoachSource (Health-Tech) FIFO House Mate (eCommerce/Marketplace)
Apeshift (HR-Tech) Cointainer (Fin-Tech) Fifo RNR (Resource-Tech)
Aponomy (Transportation-Tech) colourcolorgame (Game Studio) Fiink.com (Internet Software/Services)
Appbot (Internet Software/Services) Community2Go (Internet Software/Services) Filter Squad (Music-Tech)
Appcircl (eCommerce/Marketplace) Coptercam (Robotics-Drones-AV) Fit Jak (Health-Tech)
Appdroid Technologies (Unknown) Cosmic Games (Game Studio) Flashtax (Fin-Tech)
Artemis Technologies (Resource-Tech) Cost Compare (eCommerce/Marketplace) Fleetsu (Transportation-Tech)
Arvista (Resource-Tech) Covocate (HR-Tech) Floq (Internet Software/Services)
Asset Farm (Resource-Tech) Crisp Brake MTB (Transportation-Tech) Fly Like a Bird (Robotics-Drones-AV)
Astirian-Rae Games (Game Studio) Crowded.In (Fin-Tech) Focalyz (Mobile Software/Services)
Aura (Mobile Software/Services) Crowdfunding Blueprint (Ed-Tech) foodloggr (Health-Tech)
Aurora Labs (3D Printing) Crowdfundup (Fin-Tech) Fr33Bay for Aussies (eCommerce/Marketplace)
Australian GeoTomography (Resource-Tech) Crunchy Frog (Game Studio) Freewheeler (Health-Tech)
Autronics (Robotics-Drones-AV) Cruxcee (eCommerce/Marketplace) Friendly Phonics (Ed-Tech)
Axieos Technologies (Internet Software/Services) Cycliq (Electronics & Hardware) Fundifest (Music-tech)
Barrta (Fin-Tech) Dataresource (Resource-Tech) Gadget Games (Game Studio)
Batex (Health-Tech) Databee Business System (Ed-Tech) Generic Vending (Fin-Tech)
BBCOnline (Game Studio) Datagami (Big Data) Geo Oceans (Robotics-Drones-AV)
Bear-Tooth Studios (Game Studio) Deal Slammer (eCommerce/Marketplace) Geolify (Internet Software/Services)
Beeloyal (eCommerce/Marketplace) Deceasedestatesharesales.com.au (Fin-Tech) GeoMoby (Mobile Software/Services)
Bet your mate (Game Studio) Delivery Engine (eCommerce/Marketplace) Get Trakka (Resource-Tech)
Big Help Mob (Internet Software/Services) Devisd (eCommerce/Marketplace) Get your Coffee (On-Demand)
Bigforest (Internet Software/Services) Digital World Ventures Exchange (Fin-Tech) Gigger (Music-tech)
Bikebookings (Transportation-Tech) Diji (Internet Software/Services) Gilmo Password Manager (Electronics)
Binary Space Games (Game Studio) Dinner Twist (eCommerce/Marketplace) Glass Terra (Resource-Tech)
Bingybongy (Game Studio) DishyLooks (eCommerce/Marketplace) Glasses Online (eCommerce/Marketplace)
Binkd (Game Studio) Docmosis (Internet Software/Services) Global Empowerment Portal (HR-Tech)
Bird Software t/a Team Ahoy (HR-Tech) Drenalina (Internet Software/Services) Global Unmanned Systems (Resource-Tech)
Birds Eye Media (Internet Software/Services) Dressed (Mobile Software/Services) Glyma.co (Internet Software/Services)
Blank-IT (Transportation-Tech) duinoPRO (Electronics & Hardware) Golf Great Real Estate (Property-Tech)
Blix Co. (Internet Software/Services) DuJour Technologies (Media & News) GordianTec (Health-Tech)
Blu (Suspended) (Electronics & Hardware) Dukbill (Fin-Tech) Gotapp (eCommerce/Marketplace)
2Green Unity (Construction-Tech) Launch Mii (Fin-Tech) Practice Insight (Big Data)
Grit Centre (Unknown) Letzbookit (Internet Software/Services) PressSnap (Internet Software/Services)
GroPrint (Mobile Software/Services) Livehire (HR-Tech) Prezentt (Ed-Tech)
GroupMap (Mobile Software/Services) LodgeiT (Fin-Tech) Privvi (Internet Software/Services)
GTH (eCommerce/Marketplace) Luckey (Social) Processworx (HR-Tech)
Guestplus App (Mobile Software/Services) MA Ideas (Unknown) Professional Development Online (Ed-Tech)
Guusebump (Mobile Software/Services) Matrix Formula Group (Social) Progolfme (Health-Tech)
Halo Medical Devices (Health-Tech) Meteorite Games (Game Studio) Project 52 CRM (Internet Software/Services)
Handi Shark (eCommerce/Marketplace) Meterly (Fin-Tech) PropertyMyWay (Property-Tech)
Happy App (Mobile Software/Services) MiBand (Music-tech) Prosthetic Knee Joint (Health-Tech)
Hard Hat Bookkeeper (Fin-Tech) MiKastle (Fin-Tech) Psyx (Unknown)
Harvey Energy Group (Resource-Tech) Mineler (Resource-Tech) Publicate (Internet Software/Services)
Hazer Group (Resource-Tech) MiningSpares (Resource-Tech) PuggleFM (Internet Software/Services)
Healthiris (Health-Tech) Minnovare (Resource-Tech) pumpkynHead (Internet Software/Services)
Hedventures (Ed-Tech) MiPlan (Resource-Tech) Qualitem (Internet Software/Services)
HEDventures (Ed-Tech) Mobi Safe (Mobile Software/Services) Quantify Technology (Internet-of-Things)
Hello Directories (eCommerce/Marketplace) Mobilyser | JKP Tech (Fin-Tech) QuoteSeek (On-Demand)
Hey Mate (Mobile Software/Services) MobiRoam (Mobile Software/Services) rdrct.it (Internet Software/Services)
Hipflask (Music-tech) Momble (Social) Reach Out (Health-Tech)
Hiresquare (Property-Tech) Mulpin Research Laboratories (Electronics & Realtailers (eCommerce/Marketplace)
HiSeis (Resource-Tech) Hardware) ReferMatch (Unknown)
Hitch a Ride (Transportation-Tech) My Fitness File (Health-Tech) Remote POS (Fin-Tech)
HiVE interactive (Game Studio) My Footy Hub (Health-Tech) Rentify (Property-Tech)
Hivint (Internet Software/Services) My Local Savings (Internet Software/Services) Resapp Health (Health-Tech)
Hiya (HR-Tech) My Makeup Collection (Social) Resource Governance International (Resrc-Tech)
Homecamp (Travel & Tourism) Myfiziq (Health-Tech) Rewardle (eCommerce/Marketplace)
Hydralert (Resource-Tech) MyGuru (Ed-Tech) Robot Gear (Robotics-Drones-AV)
iCollege (Ed-Tech) mypreorder (Internet Software/Services) Rubbers (eCommerce/Marketplace)
Icomics (Media & News) Nano Solutions (Resource-Tech) SafeWorks Matrixx (HR-Tech)
id4Football (eCommerce/Marketplace) Newton Labs (Resource-Tech) Saybubble (Social)
iiSnap Corp (eCommerce/Marketplace) NORWOOD SYSTEMS (Big Data) ScanCam Industries (Fin-Tech)
Image Correction (Internet Software/Services) Notis (Ed-Tech) Schrole (Ed-Tech)
iMaker 3D (3D Printing) Nuheara (Health-Tech) Sciosity (Ed-Tech)
IMR Technologies (Transportation-Tech) Offpeak Games (Game Studio) Seafasten (Resource-Tech)
Induxion Intelligence (Big Data) oneVR (Virtual & Augmented Reality) Seek Local (eCommerce/Marketplace)
Insite Systems (Internet Software/Services) OpenLab (Electronics & Hardware) Sensorem (Resource-Tech)
Inspection Toolbox (Internet Software/Services) OpRock (eCommerce/Marketplace) Sharperlight (Internet Software/Services)
Instatruck (On-Demand) Orowa (Internet Software/Services) Shift Geophysics (Robotics-Drones-AV)
InventX (Health-Tech) OVASS (Ag-Tech) Shifthub (HR-Tech)
INXSoftware (HR-Tech) OZeating (eCommerce/Marketplace) Shneebs (eCommerce/Marketplace)
iPrint3D (3D Printing) Paleo Paddock (eCommerce/Marketplace) ShockWiz (Electronics & Hardware)
iSOL8 (Resource-Tech) Paradigm (Game Studio) Simply Wall Street (Fin-Tech)
iSpyConnect (Internet Software/Services) ParkUp App (eCommerce/Marketplace) Sketchmen (Fin-Tech)
Jaksta Technologies (Music-tech) Passcard (Mobile Software/Services) Skill Social (Ed-Tech)
Jam Jar (Media & News) Payconomy (Fin-Tech) Skrydata (Big Data)
Jaytraxx (Music-tech) Paytradie (Fin-Tech) Sky Vision Photographic Solutions (Drones-AV)
Jobbed (HR-Tech) Peepable (Internet Software/Services) Snappy Recruit (HR-Tech)
Jobs and Services (eCommerce/Marketplace) PieHire (HR-Tech) Snaptch (Mobile Software/Services)
Jumpstartz (eCommerce/Marketplace) PinPayments (Fin-Tech) Solais (Geospatial-Information-Systems (GIS))
Jungle Juniors (On-Demand) Pigeonhole (eCommerce/Marketplace) Spookfish (Geospatial-Information-Systems (GIS))
justgraph.it (Internet Software/Services) Pitches for Stitches (Game Studio) Standout App (HR-Tech)
Kickertape (Game Studio) PixelPrint Studio (3D Printing) Start Kit | Start Digital (Internet Software/Services)
Kikka Capital (Fin-Tech) Platform News (Mobile Software/Services) Startup News (Media & News)
Kinchip Systems (Health-Tech) PlayAR (Virtual & Augmented Reality) Stirfire Studios (Game Studio)
Klaimed (Mobile Software/Services) Pointerra (Big Data) Stockbo (Internet Software/Services)
Koalabox (Transportation-Tech) Positiv Flo (Health-Tech) Stockphoto.com (eCommerce/Marketplace)
Koffee Order (Internet Software/Services) Power Pedals (Electronics & Hardware) Stonehenge Metals (Resource-Tech)
Kojai (Social) PozWorx (Fin-Tech) Storage Seeker (eCommerce/Marketplace)
3STARTUPS Stratus Solutions (Internet Software/Services) Wealth Tank (Fin-Tech) Inspired Entrepreneurial Women of Perth (B) StrykeTax (Fin-Tech) Welcome To Country App (Ed-Tech) Internet Marketing for Perth Businesses (Tech) Subcool (Resource-Tech) Whats Next (Music-Tech) Internet of Everything Perth (Tech) Sun Heels (eCommerce/Marketplace) Where’s Lois (Mobile Software/Services) Joondalup Women in Business (Business) Sunny Beach Labs (Internet Software/Services) WhereItsAt (Mobile Software/Services) League of Extraordinary Women (Business) Switch My Loan (Fin-Tech) Whisk Mobile Development (Mobile Software/ Lean Perth (Tech) Swytchy (eCommerce/Marketplace) Services) Lean Startup Perth (Tech) Synaptor (Resource-Tech) Who Said app (Social) Learn About Technology - Perth (Tech) Tagroom (Media & News) Who threw the goo (Game Studio) Magento WA (Tech) Take 5 Apps (HR-Tech) WordTapper (Internet Software/Services) Makers and Changemakers (Tech) Tales from Electric Eve (Game Studio) World Skies Holidays (Travel & Tourism) Meteor Perth (Tech) Tap into Safety (Ed-Tech) x-cite digital (Game Studio) Morning Startup - Perth (Tech) Teacheria (Ed-Tech) XOcamm (Electronics & Hardware) Mumpreneurs WA (Business) Techboard (Media & News) XTV Networks (Ad-Tech) NServiceBus User Group WA (Tech) techPOTTSs (Ag-Tech) Yabble (Social) Online Marketing Professionals Perth (Business) Tek Tools (Mobile Software/Services) Yellowbanana (Ed-Tech) Perth .Net (Tech) TestScreening (Internet Software/Services) You Plate It (Internet Software/Services) Perth 3D Printers Meetup (Tech) Textie (Social) Your Social Voice (Ad-Tech) Perth 3D World Meetup (Business) The Local Grocer (eCommerce/Marketplace) Your Tunes World (Music-tech) Perth Agile IM, SM and Coaching Guild (Tech) The Mining Hub (Resource-Tech) YourButler (On-Demand) Perth Agile Meetup (Tech) Thiv (Internet Software/Services) Yurn.it (eCommerce/Marketplace) Perth Agile Scrum User Group (Tech) Thrillseeker Adventures (Travel & Tourism) ZAP Bikes (Electronics & Hardware) Perth Agile Testing (Tech) TicketBooth (Fin-Tech) ZettaGrid (Internet Software/Services) Perth Appreneurs MasterMind Group (Tech) tiing (Internet Software/Services) Perth Atlassian User Group (Tech) Tiinkk (Social) GROUPS (109) Perth BizTalk User Group (Tech) SwipeMeNot.com | HookUpHero (Social) Perth Business Club (Business) Today We Learned (Ed-Tech) 21st Century Thinking (Business) Perth Business Sundowners (Business) Touchgram (Social) Agile Perth (Tech) Perth Code Dojo (Tech) Touchline Connect (Ed-Tech) Amazon Web Services User Group (Tech) Perth Django Users Group (Tech) Trackem (Resource-Tech) Australian Equity Crowdfunding (Business) Perth Dynamics CRM User Group (Tech) Trade Platforn (Construction-tech) Big Data Perth (Tech) Perth Entrepreneurs (Business) Trades Cloud (Internet Software/Services) Bitcoin Perth (Business) Perth Entrepreneurship Meetup (Business) Tradiepoint (eCommerce/Marketplace) Blogging, Social Media & Online Marketing Perth Ethereum Meetup (Tech) Trading Roo (eCommerce/Marketplace) Business Analysis Meetup (Tech) Perth Functional Programmers (Tech) Tradr (eCommerce/Marketplace) Business Bootcamp & Networking Group (Career Perth Growth Hackers Community (Business) Travel Eggs (Travel & Tourism) & Business) Perth Infusionsoft Meetup (Business) TravelBug (Travel & Tourism) Business Networking & Referral Group Perth Inventors+Product Developers+Idea Triplify (Travel & Tourism) Business Reboot (Business) MakersMeetup (Tech) Tuggle (eCommerce/Marketplace) Crowd Funding Institute of Australia (Business) Perth iOS Developers (Tech) Typed Clojure (Internet Software/Services) DevOps Perth (Tech) Perth Java & JVM Community (Tech) Udaly (Internet Software/Services) District32 Business Reboot (Business) Perth Linux Users’ Group (Tech) UniteMe (Virtual & Augmented Reality) Docker Perth (Tech) Perth Lync User Group (Tech) Uranium Mobile (Mobile Software/Services) Drupal WA (Tech) Perth MS Cloud Computing User Group (Tech) Urban Locavore (eCommerce/Marketplace) eGroup WA (Tech) Perth Mumtrepreneurs (Business) urbansocialz (Social) Enterprise Clubs of Australia (Business) Perth Network Marketing Meetup (Business) VentureCast (Fin-Tech) Entrepreneur Club (Business) Perth Networking Group (Business) Venue Menu (eCommerce/Marketplace) Entrepreneurs in Perth (Business) Perth Project Crowd Fund (Business) Verbivoregame (Game Studio) Entrepreneurs In Perth Australia (Business) Perth Rapid Startups (Business) Verist (Fin-Tech) Entrepreneursville (Business) Perth Sitecore Meetup Group (Tech) Vibeguide (Mobile Software/Services) Expand Your Business in China (Business) Perth Small Business meetup (Business) Vine Collective (eCommerce/Marketplace) Experience Design Perth (Tech) Perth Small Business Networking (Business) Viracocha Enterprises (Fin-Tech) FBA Amazon Pro-Sellers Meetup (Business) Perth Solo and Small Business Owners (Business) Virtual Gaming Worlds VGW Holdings (Game FinTech Perth (Business) Perth Sports Analytics Meetup (Tech) Studio) Fremantle Entrepreneurship Meetup (Business) Perth Startup Founder 101 (Business) Virtual Gsale (eCommerce/Marketplace) Front End Web Developers Perth (Tech) Perth Web Accessibility & Inclusive Design Virtualiis (Virtual & Augmented Reality) Graphic Designers Perth (Business) Perth Women Entrepreneurs Network (Business) Visionball (Virtual & Augmented Reality) Grow Your Small Business Online (Business) Perth Women in Business Southern Suburbs WAMart (Media & News) Improve your Public Speaking (Business) Perth.js (Tech) 4
ORGANISATIONS
Port80 Perth (Tech) EBL The Entourage
Positive Women’s Movement (Business) Just StartIT UKTI FinTech Mission
Product Hunt Perth (Tech) LESANZ West Tech Fest
Rockingham Business Sundowners (Business) Logicus Training Solutions World Wide Web Conference 2017
Ruby on Rails Oceania (Tech) Mustard Seed
SAGE-AU WA (Tech) PhDo GOVERNMENT (12)
SecTalks Perth (Tech) Robogals Australian Spatial Data Directory
Silicon Beach Perth (Tech) Springboard Enterprises City of Perth
Software Architecture and Project Design Perth Startup Brand School Department of Commerce
Spotfire Perth (Tech) Start Something
Department of Industry, Innovation and Science
Startup Agile Group - Perth (Tech) Startup Weekend
Department of Premier and Cabinet
Startup Grind Perth (Tech)
TechTalks WA (Tech) HACKATHONS (4) Innovation Centre WA
The Australian Institute for Senior Entrepreneurs Govhack International Centre for Radio Astronomy Research
The Perth Data Science Meetup (Tech) Hack the Festival Landgate
The Perth Investor’s Business Daily (Business) Health Hack Minerals Research Institute of WA
The Pulse (Business) Unearthed Office of the Government Information Officer
The Startup Sessions (Business) Technology Park (Bentley)
This Week in Tech (Tech) MAKER SPACES (3) UK Trade and Investment Australia (UKTI)
West Coast Makers (Tech) The Artifactory
Western Australian Centre of Excellence for 3D-
Western Australia R Group (Tech) SW Makers
Mineral Mapping
Vic Park MiniLab by Enkel & the Vic Park
INCUBATORS (2) Collective
VENTURE CAPITAL -LOCAL (3+)
Atomic Sky
Brandon Capital (mainly Biotech, HQ in Vic)
Innovation Centre WA ASSOCIATIONS & NFP (9)
Eve Investments (recently launched)
Mustard Seed Australian Information Industries Association (AIIA)
Stoneridge Ventures
Enkel
Yuuwa Capital (allocated all digital funds)
ACCELERATORS (7) Open Government Network WA
Curtin Accelerate Resources Innovation through Information
FUNDS (OUTSIDE BUT PARTICIPATE IN WA)
Founder Institute Technology (RIIT)
Adventure Capital (Melbourne)
KPMG Energise Society of Precision Agriculture Australia (Vic)
Artesian Capital (New York/Sydney)
Orange Fab StartupAus
AWI Ventures (Sydney)
Unearthed StartupWA
Blackbird Ventures (Sydney)
Fusion Founders (Atomic Sky) Vic Park Collective
Blumberg Capital
Stump Jump Women in Technology WA
CVC Capital Partners (Sydney)
Georgetown Angels
SEED ACCELERATORS (3) UNIVERSITIES (4)
Jolimont Global Mining Systems (Melbourne)
Amcom Upstart Curtin University
Muru-D
Unearthed Edith Cowan University
PLUS Ventures (Ramat Gan, Israel)
RAC SeedSpark Murdoch University
Reed Elsevier Ventures
University of Western Australia (UWA)
Summit Partners (Boston)
CO-WORKING SPACES (12)
Syngenta Ventures (Basel-Stadt)
Bloom Labs AWARDS, GRANTS & GOVERNMENT FUNDS (11)
Talent Equity Ventures
F-space Accelerating Commercialisation (AC)
Telstra Ventures (Sydney)
Flux by Spacecubed Commercialisation Australia (CA)
TMT Investments
Innovation Centre WA City of Joondalup Innovation Fund
Vix Investments
MineSpace City of Perth Matched Funding Business Grants
Western Technology Investment
Pollinators Inc City of Perth Small Business Grants
sixty27 Innovation Vouchers Program
SELECTED ANGEL OR FAMILY FUNDS (3+)
SK Games Innovator of the Year Award
Fat Hen
Spacecubed The New Enterprise Initiative Scheme
Future Health
St George Bank Perth Business Hub OzApp Awards
Larsen Ventures
Sync Labs Research & Development Tax Credit
Western Australian Angel Investors
Tech Hub by Atomic Sky Spacecubed Intensify Scholarship
EDUCATION PROGRAMS (12) SELECTED EVENTS & CONFERENCES
CoderDojo Innovation Bay
Curtin Ignition Perth Web Girls
5CONTENTS
Startups 2
Organisations 5
Foreword 7
StartupWA Letter 6
Executive Summary 10
Angel & Startup Density 12
Key Statistics 13
Growth Stages 14
Technology Revolutions & Disruptive Technology 16
Capturing Disruption & Growing Unicorns 18
Stage 1: Education & Skills 20
Stage 2: Groups, Hubs & Programs 22
Stage 3: Incubation & Acceleration 24
Stage 4: Venture Capital 26
Stage 5: Australian Stock Exchange 28
Stage 6: Unicorns 30
Funding 32
Market Focus 36
Industry Spotlight - Mining Tech 38
Industry Spotlight - Case Studies 40
Location, Location, Location 42
Asian Opportunity 44
Notable Startups 48
Agtech & Agworld 49
Community Insights 50
References 52
Definitions 53
Key People 54
6FOREWORD
“ NEW TECHNOLOGIES ARE
A FUNDAMENTAL SOURCE
FOR THE CREATION OF NEW
JOBS, NEW BUSINESSES,
NEW INDUSTRIES AND
ECONOMIC GROWTH.”
FOREWORD FROM THE MINISTER As an in-depth insight into the diversity and
unique aspects of the Western Australian startup
Western Australia has a long and proud history ecosystem, the report identifies key participants
of achievement in research and development, and quantifies participation rates, business
driving technology innovation and efficiencies formation, investment rates and fund flows.
in our economy, the better understanding In a climate of reduced growth from traditional
and management of our environment, and approaches, innovation is vital to driving
improvements to its health, safety and security. increased productivity and economic growth as
new technologies are a fundamental source for
I am pleased to present the Western Australian the creation of new jobs, new businesses, new
Startup Ecosystem Report which the Department industries and economic growth.
of Commerce has commissioned in partnership
with StartupWA, Spacecubed and the City of I would like to thank all those who supported
Perth. and contributed to this valuable report.
The findings in this report highlight the
important role played by our Western Australian
startup ecosystem and how it will continue to
build a vibrant sector creating innovative new
technologies for the benefit of the State.
Hon. Michael Mischin MLC
The report estimates the State currently has Attorney General;
more than 335 active startups, employing near Minister of Commerce
3,000 people and, since 2011, local startups have
raised more than $100 million in funds.
The purpose of the report is to map connectivity,
linkages and interdependencies, and identify
critical issues and opportunities for collaboration
within the local sector such as access to capital
and the participation of universities in realizing
commercialisation.
This will result in the ability to identify
opportunities for development and facilitate
competitive advantages, such as clusters of
innovative companies in agricultural technology,
resources technology, games development,
advanced robotics or Internet of Things
technology.
7STARTUP WA LETTER
Deloitte forecasts that “one-third of the
Australian economy is facing imminent and
substantial disruption by digital technologies
and business models by 2025”.1
In 2013, the City of Perth commissioned the With Gross State Product forecast to reach
inaugural Startup Ecosystem Report. ~$300 billion in 10 years, up to ~$100 billion
is therefore ‘at risk’ of digital disruption - how
This data mining exercise painted an invaluable much of the value of this disruption will be
picture of the state of Perth’s then-nascent captured by WA companies?
startup community, the growth of which
was centered around Spacecubed, the CBD Clearly we must act now to seize these
coworking space which had just celebrated opportunities and to assist local entrepreneurs.
its first birthday, Meetups and events such as
Startup Weekend, and entrepreneur-focused StartupWA would like to thank Department of
education programs like Founder Institute. Commerce - Industry and Innovation and the
City of Perth for their support of the startup
The report was designed to quantify and report ecosystem as a key driver of economic growth,
on the startup ecosystem, providing a platform jobs and prosperity across WA. We look forward
to monitor progress and inform policy. Having to their continued support and to the rapid
jointly funded the WA Startup Ecosystem evolution of the startup sector over the months
Report 2015, the Department of Commerce - and years ahead.
Industry and Innovation and the City of Perth
now provide us with another chance to reflect on
the growth of the startup ecosystem to date, and
provide deeper insights as to the opportunities
and challenges that lie ahead if we are to unlock
the potential of digital technology and disruptive
innovation as a creator of new jobs and wealth in Sheryl Frame
the years to come.
The 2013 report identified a core of 100
digital and internet-based early-stage startups
businesses in Perth. As you will see from the
pages that follow, we have already seen this Justin Strharsky
number balloon to 335 active startups - a 235%
increase in just over two years.
The first report identified nine key opportunities
for development within the ecosystem, a number
of which have already borne fruit. Although still Samuel Birmingham
in their early stages, we have seen the handful
of accelerator programs, university programs
and corporate partnerships launch in the past 18
months - including Bloom and Start Something.
at UWA; Amcom Upstart (from which the first
cohort of companies graduated earlier this year), Brodie McCulloch
RAC SeedSpark, and the Unearthed program -
which launched from Perth with a mandate to
drive innovation in the resources sector, and has
already expanded to a national hackathon series
and accelerator program.
Andrew Outhwaite
As the WA Startup Ecosystem Report 2015
makes abundantly clear, countless growth
opportunities remain - particularly in the context
of partnerships with government, universities,
and industry, helping to deepen capital pools and
develop infrastructure to support entrepreneurs’ Mark Shelton
continued development.
Zane Prickett
8THIS REPORT ESTIMATES THE POTENTIAL ECONOMIC IMPACT OF DISRUPTIVE DIGITAL AND INTERNET TECHNOLOGIES ON WESTERN AUSTRALIA’S ECONOMY IN 2025 COULD BE OVER $76 BILLION PER ANNUM. APPROXIMATELY 25% OF GROSS STATE PRODUCT.
EXECUTIVE SUMMARY
We are delighted to present the second of our MEETUPS, EVENTS, CO-WORKING SPACES This shift in economic value provides a
reports on the early stage digital and internet & UNIVERSITIES tremendous opportunity for new and established
technology sector in Western Australia. This This report found that across Western Australia companies to rapidly create substantial value. If
report builds on the 2013 Perth Startup Ecosystem there was a substantive number of meetups, Western Australia is to do this successfully taking
Report and demonstrates that the ecosystem has hackathons and community driven educational advantage of our proximity to the worlds largest
grown substantially since then. The report is activity in the ecosystem. Co-working spaces and fastest growing consumer markets in Asia is
a preliminary report with the final report to be have arisen in the past 6 years in the Perth CBD, almost certainly necessary.
published in February 2016 with the addition of Leederville, Joondalup, Fremantle, Geraldton
recommendations and later stage numbers. in the Mid West, and as far south as Pollenators THANK YOU
in Bunbury. These places serve as a vibrant The report was produced by Boundlss in
This preliminary report focuses on early stage catalyst for innovation and entrepreneurship and partnership with StartupWA, and generously
digital and internet technology operating are increasingly moving up the innovation value supported by the Department of Commerce and
throughout Western Australia established since chain from offering sharing office space to formal the City of Perth. Information was gathered
January 2010. By digital and internet technologies startup accelerators providing seed capital for through community workshops, interviews
we mean those companies developing their own early stage commercialisation. Spacecubed in and extensive research. We thank all those that
intellectual property in technologies such as Perth’s CBD now hosts 5 accelerators and seed contributed to the production of the report.
computing, software, mobile applications, internet accelerators, along with multiple hackathons Given the nature of the early stage ecosystem
focused companies, electronics & hardware; throughout the year. and private company records it is challenging
particularly those that incorporate software to identify all activities taking place within the
such as wearables, sensors, drones, robotics and WA Universities have a history of state. We apologise in advance for any errors
autonomous vehicles. We call these Startups for commercialising innovation, out performing or omissions. Please contact us so we can make
short throughout the report. east coast universities when viewed through amendments before the final release in early 2016.
the lense of company formation and university
The report identified over 420 digital and internet spinouts. There is also an increasing number of CONCLUSION
technology startups operating throughout Western student led programs, hackathons and incubators The early stage technology industry in Western
Australia (WA) since January 2010, of which 335 arising out of universities, such as UWA’s Australia is still in it’s infancy with a few
remain active. The report found approximately Bloom Labs. However compared to US and UK breakout successes that have managed to
3,000 people who are working in and building university company formation rates there is still overcome regional isolation and sparse support.
early stage scalable technology startups. much Western Australia can do to develop more Nevertheless, Western Australia has a promising
innovative startups. As former Chief Scientist Ian level of engagement in some of the most
The report identifies over $101 million in Chubb states: innovative new technologies coming to market,
total funding over the past 6 year period to 77 such as Fin-tech, Health-tech, Resource-tech
startups, ten of which raised funding by listing “We can wait for the one in a million natural- and the Industrial Internet. Given a substantive
on the Australian Stock Exchange (ASX). Total born entrepreneur to successfully seize the once effort by all participants in the ecosystem
funding results in an average per capita funding in a lifetime opportunity to create change. Or we – entrepreneurs, investors, educators and
ratio of $6.61, one of the highest levels seen can make our own luck by using the education government – the state can almost certainly take
nationally, however still substantially lower than system to give people the skills and knowledge advantage of its deep entrepreneurial roots to ride
international ratios which go up to $183 in Israel that will make them entrepreneurs.” the next great economic revolution.
and $4,341 in Silicon Valley.
GLOBAL COMPARISONS
PRODUCT MARKET FOCUS Comparing this region with mature technology
Of these 420 startups, a wide range of market clusters in the US and Europe we found Western
focus was evident, with particular clusters Australia underperforms on a range of measures
emerging in eCommerce, Fin-tech, Health- including lower startup formation rates and lower Jonah Cacioppe
tech, Resource-tech, Education-tech and more funding ratios than comparable global tech hubs,
unexpectedly in areas such as Gaming and Human however the industries growth over the last 6
Resources. Product and technology types were years provides encouragement that Western
diverse, ranging from mobile applications and Australia can develop a strong technology sector
machine learning to 3D printing. Technologies over the coming decade.
did however seem inclined to less complex Tamryn Barker
technologies rather than more complex emerging FUTURE GROWTH
technologies such as drones, advanced robotics Technology is increasingly restructuring the
and machine learning. global economy, with technology companies
increasingly entering traditional industries
We were particularly disappointed to not identify such as mining, transportation, insurance and
a single startup working on autonomous vehicle accommodation. Foreign companies are taking Nicholas Markham
technology despite the adoption of autonomous market share at a rapid pace, with a case in
vehicles by all large three large resource point being Uber which is estimated to have
companies. secured near 8.8% of the Australian taxi market
in under three years, as of early 2015.2 Based
This could be due to both the relatively small on current economic and technology trends this
number of computer science graduates and report estimates the potential economic impact
electronic engineers completing university of disruptive digital technologies on Western
courses in Western Australia. And the scarcity of Australia’s economy in 2025 could be over $76
available capital to fund more resource intensive billion per annum, approximately 25% of Gross
technology development. State Product (GSP).
10WA STARTUP BY TYPE
Internet Software/Services 55
eCommerce/Marketplace 53
Fin-Tech 35
Mobile Software/Services 28
Health-Tech 27
Resource-Tech 26
Game Studio 25
Ed-Tech 24
HR-Tech 19
Social 15
Electronics & Hardware 12
Music-Tech 10
Media & News 9
Robotics-Drones-AV 9
Big Data 8
Transportation-Tech 8
Travel & Tourism 8
On-Demand 7
Unknown 6
3D Printing 6
Virtual & Augmented Reality 5
Construction-tech 5
Property-Tech 4
Ag-Tech 3
Geospatial-Information-Systems (GIS) 3
Internet-of-Things 2
Ad-Tech 2
Semiconductors & Semiconductor Equipment 1
11ANGEL & STARTUP DENSITY
CITY (POPULATION) STARTUP DENSITY ANGEL DENSITY
This diagram compares the data on startup
Tel Aviv (410,000) companies in Western Australia presented in this
report with 19 comparatively sized cities in the US,
Asia, and Europe that have developed technology
Vancouver (603,000) ecosystems. The diagram compares startup density
(number of people per Startup), and angel density
(number of people per Angel). All information
Amsterdam (780,000) is sourced from manual research, AngelList and
CrunchBase.
Toronto (2,600,000)
Paris (2,200,000)
Bangalore (4,300,000)
Montreal (1,700,000)
Barcelona (1,600,000)
Stockholm (1,300,000)
Phoenix (1,500,000)
Sydney (4,300,000)
Munich (1,400,000)
Singapore (5,400,000)
Perth (1,900,000)
Melbourne (4,000,000)
Prague (1,300,000)
Warsaw (1,700,000)
Vienna (1,700,000)
Hamburg (1,700,000)
South East Queensland (2,500,000)
10,000 8,000 6,000 4,000 2,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
Number of People per Startup Number of People per Angel Investor
12KEY STATS
NO. STARTUPS NO. MEETUP GROUPS FORMED BY YEAR NO. STARTUPS BY STAFF SIZE
335/420+
Estimated number of active & total (active &
44
167
inactive) WA tech startups born since 1st Jan 2010. 126
26
NO. FOUNDERS 19
75
830+
Estimated number of people that have founded a WA 1 2 4
7
11
39
tech startups since 2010.
2009 2010 2011 2012 2013 2014 2015 4
NO. STARTUP EMPLOYEES 1 2 to 5 5 to 10 11 to 50 50+
2,974
Estimated number of people that have worked in
NO. STARTUP MEETUP GROUPS BY SIZE DEAD OR ALIVE: #STARTUPS BY YEAR
(TOP 10 ONLY) ESTABLISHED
WA tech startups since 2010. 1
Morning Startup - Perth 1586 Active 17
N0. MEETUPS GROUPS Agile Perth 1328 In-active
109
103
Acquired
Perth Small Business Meetup 910
6 11
Perth Startup Founder 101 902 6
Number of startup and entrepreneurship related Port80 Perth 879 53 58
groups in WA since 2010. 1 6 53
Silicon Beach Perth 854
7
Perth Solo & Small Business Owners’ Hangout 849 32
NO. COWORKING SPACES 26
12
Perth Rapid Startups 788
Perth Agile Meetup 698 2010 2011 2012 2013 2014 2015
Estimated number of co-working spaces in WA. Perth iOS Developers 670
PEOPLE: AGE %
NO. OF ACCELERATORS & INCUBATORS
140
3/12
Estimated number of Seed Accelerators in WA, and
PEOPLE: COMMON SKILLS*
Web & Mobile Software Development 36%
total seed accelerators, accelerators and incubators. Marketing, SEO & Social Media 10% 73 70
Leadership & Management 10%
NO. OF PEOPLE IN ICT
Strategy & Planning 6%
44,925
Total number of people involved in Information
Other
Design, Animation, UX, UI
6%
5%
14
22
3
Sales & Business Development 5% 60-75 50-60 40-50 30-40 20-30 17-20
Computer Technology (ICT) in WA in 2013.3
Consulting & Advisory 4%
NUMBER OF ICT GRADUATES Entrepreneurship & Startups 3% GENDER: TECH INDUSTRY FOUNDERS*
355
Business Analysis & Modelling 3%
Finance, VC, PE & Accounting 2%
Domestic tertiary ICT completions in WA in 2014. 3 Product Development & Management 2%
Advertising 1% Female (14.73%)
TOTAL FUNDING RAISED BY STARTUPS Public Relations & Stakeholder Mngmt 1% Male (85.27%)
$101.7M+
Estimated total amount of funding raised by WA
Electronics, Hardware & Semiconductors
Education & Training
Digital Games
1%
1%
1% *
Percentages based on analysing people on Linkedin in
startups between January 2010 and November 2015. Ecommerce 1% Perth or Mandurah with “Founder” or “Owner” in their
job titles, working in digital technology companies.
13GROWTH STAGES
FROM SEEDS TO KARRI TREES By comparison to more advanced technology
Companies like trees grow through different industries such as those seen in the USA and
stages of development, from seeds and saplings Korea, and the mature resource sector in Western
to giant Karri trees. At each stage different Australian, the WA digital technology industry
challenges face young companies and different is still in a relatively youthful phase. This is
support, regulation and funding is needed to help both a function of the technology industry
them grow to the next stage. being relatively new when compared to older
industries and the State’s focus on the resources
Company stages are often conceptualised as a sector. However with the increasing impact of
combination of product maturity, market fit, risk, technology on the global economy this is certain
staff size, customer engagement rates, revenue to shift, as our estimates show.
levels, culture, company structure and market
trends. COMPANY GROWTH STAGES
To understand the needs, challenges and
At early stages founding teams often need opportunities for the industry we examined the
education and mentoring along with relatively industry through the lens of this stage model -
small amounts of investment. At later stages mapping the lifecycle of technology companies
access to large numbers of talented staff is from: being interested in entrepreneurship to
essential and greater amounts of capital. starting a company and breading a unicorn (a term
commonly used to describe technology companies
Additionally at each stage young companies that have achieved a $1 billion plus valuation).
provide different value to the ecosystem
surrounding them. Small early stage companies We assumed several stages/states based around
are often more efficient at developing innovative estimated revenue brackets. Given revenue is
technologies and business models and testing new challenging to identify for private companies in
markets, unburdened by corporate legacies. most cases we have used staff size as a proxy for
revenue:
On the other hand large mature companies can
deliver high quality sustaining technologies to 1. Potential Founders: a portion of whom
large numbers of people and employee large (~20%) would actually form a startup.
numbers of people. As companies mature 2. Seed Stage Startup: $0 to $1M in revenue,
increasing opportunities arise for early investors, 3. Early Stage Startup: $1M to $10M
employees and founders to realise the inherent 4. Growth Stage Tech Co: $10M to $100M
value captured in the company, through 5. Later Stage Tech Co: $100M to $1B, and
acquisition, dividends and listing on public 6. Unicorn Stage: $1B+
markets.
The graph on the following page shows our
At each stage risk and failure rates generally estimated numbers for startups and later stage
decrease, unless of course the market has technology companies in Western Australia as
radically shifted. of 2015, along with projections for potential
numbers in 2025 given appropriate support. By
Infrastructure at each stage also varies. At early way of comparison we have included estimated
stage skills training, education and research is numbers for Tallin, a small Estonian town with a
supported by the likes of universities, courses population of 400,000 that gave birth to Skype in
and community groups. At the seed and company 2003.
formation stage pre-accelerator programs such
as Founder Institute, and accelerators like
Amcom Upstart helps small teams develop
innovative technologies and business models,
often supported by relatively small amounts
of seed investment from Angel investors, and/
or government grants like the Department of
Commerce’s Innovation Vouchers Program.
As companies mature large amounts of capital
and more experienced mentors can be sourced
from entities such as the Federal Government’s
accelerating Commercialisation program, or
Venture Capital firms (of which there are virtually
none active in Western Australia). Beyond this
the public markets traditionally provide access
to larger funding pools, however given Western
Australia’s history with listing small cap resource
companies and the dearth of funding opportunities
across most stages the ASX has increasingly
become a viable option for relatively young
technology companies.
14WA TECH 2015 VS 2025
Tallinn, Estonia This diagram compares the progressive Developing high growth technology
distribution of startups by estimated staff companies is a high risk endeavour with only
Western Australia - 2015 size between Western Australia (2015); a small proportion of companies achieving
estimates for Western Australia in 2025; and the growth required to move to the next stage.
Western Australia - 2025
Tallin, Estonia in 2015 (home of Skype). Approximately 90% of bootstrapped or angel-
The diagram shows people ‘interested’ in funded companies fail, and between 30% to
entrepreneurship, those who actually found 40% of venture backed companies fail. Even
Startups, and through to growing and mature fewer technology companies grow beyond
technology companies. A small selection of $1 billion in revenue, or reach a $1 billion
example startups are included. valuation - less than 0.1% for either. 4, 5
431 154 23 3 1
242 126 20 1* 1*
3,414 1,221 185 23 2
SEED STAGE EARLY STAGE GROWTH STAGE LATER STAGE UNICORN
STARTUP STARTUP TECH CO. TECH CO. TECH CO.
Staff Size Staff Size Staff Size Staff Size Staff Size
1 to 5 5 to 30 30 to 100 100 to 500 1 to 5,000
Revenue Band Revenue Band Revenue Band Revenue Band Revenue Band
$0 to $1M $1M to $10M $10M to $100M $100M to $1B $1B+
APE Mobile Pin Payments Virtual Gaming World Amcom* iiNet*
Cycliq Rewardle Tagroom
Newton Labs
Sppokfish
2,157
1,210
17,923
POTENTIAL FOUNDERS
*Amcom and iiNet are included as examples of local later tech companies only. They are not early stage startups and are outside the technology scope of this report. 15TECHNOLOGY REVOLUTIONS
APPROXIMATE DATES OF THE INSTALLATION AND DEPLOYMENT PERIODS OF EACH GREAT SURGE OF TECHNOLOGICAL DEVELOPMENT6
GREAT TECHNOLOGY BIG BANG INSTALLATION TURNING DEPLOYMENT
SURGE REVOLUTION POINT
CORE COUNTRY IRRUPTION FRENZY SYNERGY MATURITY
The Industrial 1770s and late 1780s and 1773
1ST 1771 1898 - 1812 1813 -1829
Revolution Britain early 1780’s early 1790s -97
Age of Steam and
Railways Britain
(spreading to 1848
2ND 1829 1830s 1840s -50 1850 - 1857 1857 - 1873
continent and US)
Age of Steel,
Electricity and
Heavy Engineering 1893
3RD 1875 1875 - 1884 1884 - 1893 -95
1895 - 1907 1908 - 1918*
USA and Germany
overtaking Britain
Age of Oil,
Automobiles and
1929 - 33 1943 - 1959 1960 - 1974*
EUROPE
4TH Mass Production 1908 1908 - 1920* 1920 - 1929 1929 - 43
USA (spreading to USA
Europe)
20??
Age of
Information and 1971 - 1987* 1987 - 2001 2001
5TH Telecommunications 1971 -??
USA (spreading to
Europe and Asia)
Note: * Observe phase overlaps between successive surges CRASH INSTITUTIONAL COMPOSITION
FROM INDUSTRIALISATION TO THE technology revolutions - industrial, steam, steel & FULL STACK TECHNOLOGY COMPANIES
INFORMATION AGE electricity, oil & mass production, and the current Computing technologies are being deployed
The largest companies of the last century were information and telecommunications revolution. across all industries, with information technology
born in the industrial revolution in the 1800s: mass- Her research shows all technology revolutions becoming an ever increasing portion of a
production companies such as Ford, Volkswagen, have two main phases, the installation phase and company’s operations. Increasingly the normal
Toyota, GE, Bayer; and the suppliers of raw the deployment phase.6 borders between industries are being eroded
materials such as Exxon, Shell, BP and BHP. making it increasingly difficult to say whether a
Today’s technology sector is a long way from new company like Uber is a transport company
However over recent decades computer, software the dot-com bubble of the late 1990s. The initial or a software company. Much like access to
and internet companies such as Apple, Google, excitement of new technology has subsided and electricity, cars and cheap mass products are
Microsoft and Facebook have been outpacing through this installation phase, from 1970 to considered a given when starting any business,
more traditional companies. PWC’s 2014 2001, the underlying foundations for the growth soon we will consider the application of digital
report on the Global Top 100 Companies by in the technology sector have been progressively technology as equally fundamental. In this
Market Capitalisation shows that Technology laid. Core technology infrastructure has been deployment phase we should expect that people
and Financials are the leading sectors to have installed such as the digitisation of information, will re-imagine existing industries from the ground
grown market cap in the top 100 (+149% and increased computing power, broadband up, formed around the best technology we have
+136% respectively). Apple — the largest by proliferation, wireless networks, near complete today; and that entrepreneurs will use technology
market cap — having almost quadrupled in value adoption of smart mobile devices and cloud to capture an increasing portion of the value chain
during the past five years.7 Digital and internet computing. within a market. To quote, US tech entrepreneur,
companies are increasingly disrupting more and angel investor and partner at a16z Chris Dixon:
more sectors, from finance, media and health to We are now at the beginning of the deployment
more traditional sectors such as transportation, phase a period of productive growth where all “The old approach startups took was to sell or
insurance and energy. sectors are repurposed around the maturing license their new technology to incumbents. The
technology. Some companies are failing to adapt new, “full stack” approach is to build a complete,
TECHNOLOGY REVOLUTIONS & THE quickly enough and are at risk of decline, however, end-to-end product or service that bypasses
DEPLOYMENT PHASE for those companies nimble enough to embrace incumbents and other competitors.”10
To understand the current technology revolution the change and allow it to drive their growth there
and ensuing economic restructuring that is tremendous value to be created. These industry Notable examples of this “full stack” approach are
takes place it is useful to look back at history. structural shifts are sizeable enough to override riding sharing or taxi services such as Uber, health
Carlota Perez in Technological Revolutions underlying economic conditions for companies insurers such as Oscar and car manufacturers like
and Financial Capital looks at the past five taking advantage of them.6,8,9 Tesla (and most probably Google & Apple).
16DISRUPTIVE TECHNOLOGY
DISRUPTIVE DIGITAL TECHNOLOGIES - POTENTIAL ECONOMIC IMPACT WITHIN WESTERN AUSTRALIA VS NO. STARTUPS11
Automation of Knowledge Work
Mobile Internet
The Internet of Things
Advanced Robotics
Cloud Technology
Autonomous and Near-Autonomous
3D Printing
40% 35% 30% 25% 20% 15% 10% 5% 0 $5B $10B $15B $20B $25B $30B
PERCENTAGE OF STARTUPS DEVELOPING ESTIMATED POTENTIAL ECONOMIC
DISRUPTIVE TECHNOLOGY IMPACT IN BILLIONS*
*Estimated potential economic impact of technologies within Western Australia in 2025
based on the McKinsey Institute’s 2013 report Disruptive Technologies: Advances
That Will Transform Life, Business and the Global Economy. Note these estimates do
not represent GDP or market size (revenue), but rather economic potential, including
consumer surplus. They are not directly additive due to partially overlapping applications
and/or value drivers across technologies.9
ESTIMATED IMPACT OF DISRUPTIVE TECH DIGITAL DISRUPTION: CURRENT INTENSITY AND INCREMENTAL DISRUPTION
ON THE AUSTRALIAN GDP IN 2025 (AUD$B)12 Source: Deloitte - Digital Disruption: Short fuse, big bang?1
100
90
80 40
70 30 36
34 37
60 22 25 31 26
10 26 31
6 6 14 18
50
7
40 22
30
Gross Domestic Product $2,096B 20
51 48 43 55 48 44 52 31 51 46 48 45 58 43 48 49 60 54
Estimated GDP ‘Disrupted’ Digital 10
Technology $524B (@25%)
0
Estimated Revenue for Digital
ELECTRICAL, GAS, WATER
AND WASTE SERVICES
RECRUITMENT AND
CLEANING
MANUFACTURING
ACCOMMODATION AND
FOOD SERVICES
WHOLESALE TRADE
CONSTRUCTION
ESTATE SERVICES
RENTAL, HIRING AND REAL
AGRICULTURE, FORESTRY
AND FISHING
ARTS AND RECREATION
SERVICES
HEALTH CARE AND SOCIAL
ASSISTANCE
PUBLIC ADMINISTRATION
AND SAFETY/DEFENCE
PROFESSIONAL, SCIENTIFIC
AND TECHNICAL SERVICES
TRANSPORT, POSTAL AND
WAREHOUSING
EDUCATION
RETAIL TRADE
INFORMATION MEDIA AND
TELECOMMUNICATION
FINANCIAL AND INSURANCE
SERVICES
MINING
Digital Potential
Technology Companies $115B
(5.5% of GDP)
Non-digital core Additional digital disruption Current use of digital technologies
17CAPTURING DISRUPTION
DISRUPTIVE TECHNOLOGIES Using these two reports as a guide we estimate ESTIMATED TOTAL FUNDING REQUIRED
Within Australia the software and internet an upper and lower range for the impact of digital Based on these company numbers we estimated
technology sector is still relatively youthful. technology on the Western Australian economy the total required funding to seed and develop this
However as information technology is increasingly in 2025 of between 18% to 33% of Gross State number of technology companies by 2025.
deployed throughout industries the composition of Product (GSP), or $55 billion to $101 billion of
the national economy will change. The question is, economic impact per year in 2025. Our mid range Assuming average total lifetime investments per
will this wave of economic and social disruption estimate is that 25% of the Western Australian company ranging from $50,000 for seed stage to
be driven by companies imagined and built on economy is impacted by digital and internet $80 million for unicorns, we estimate the total
Australian soil, or will it be driven by foreign technology in 2025, equating to approximately $76 funding required to develop the industry over the
technology companies? billion of GSP. coming ten year period is approximately $3 to $3.5
billion.16,17,18 With per year funding levels, across
In order to understand the potential impact Based on our mid range we estimate between all sources, increasing from an average of ~$17
of digital disruption on the Australian $5 billion to $25 billion of the ‘disrupted GSP’, million on the trailing six year period to between
economy in 2025 we looked at a range of could be directly captured by digital technology $700 million to $1.5 billion in 2025. Average
estimates. McKinsey’s 2013 report “Disruptive companies in 2025.13 funding per capita over the ten year period of $106
Technologies: Advances That Will Transform to $129 per person, and as high as $266 per person
Life, Business, And The Global Economy”, GROWING UNICORNS in 2025.
identified the top 12 disruptive technologies that With these estimates in mind we examined what
have the greatest potential for economic impact the digital technology sector could look like in By way of comparison average per capita VC
by 2025.11 McKinsey estimated the potential 2025, assuming that all this ‘disrupted GDP’ was investment across the USA is $81, in Israel it is
economic impact that these 12 technologies captured solely by local tech companies. Using our $183 and in Silicon Valley estimates have it as
alone had: “the potential to drive direct economic startup formation model and current formation & high as $4,241 per person (note these numbers
impact on the order of $14 trillion to $33 trillion failure rates at each stage of growth we estimate exclude angel investment, public markets and
per year in 2025.”11 Approximately 11% to 26% the total number of technology companies required government grants).18,20,21
(or a mid range of 19%) of total world GDP, with to capture the disruption in economic value in
higher disruption in developed world economies. 2025 ranges between 4,846 to 6,000 companies, Compared to traditional industries all these
across all stages of development, from potential numbers pale in comparison with $47 billion
Seven of the twelve disruptive technologies founders to mature unicorns. With over 20,000 invested in Mining & Resource projects in WA in
McKinsey identified fall within our definition of people directly employed by high-tech companies 2014FY: $18,319 per capita of investment.
digital technology: Mobile Internet, Automation and an additional 100,000 that provide or extract
of Knowledge Work, The Internet of things, Cloud value from the industry.14
Technology, Advanced Robotics, Autonomous
Vehicles and 3D Printing. Our modelling estimates that startup formation WA RESOURCES VS TECH FUNDING
in 2025 would be 788 companies, or 292 startups
IMPACT OF DISRUPTIVE TECH ON WA formed in 2025 per million people in WA. By
Deloitte’s 2012 report “Digital Disruption: way of comparison US technology hubs such as
Short fuse, big bang?” analyses the impact of Boulder, San Jose, Cambridge and San Francisco
digital technology on Australian industries. It is had yearly startup formation rates per million
more bullish and estimates 33% of the economy people ranging between 97 to 256 in 2010 (the
facing disruption from all digital technologies. last recorded data we could find on the US).
Approximately $732 billion of economic impact in Given the age of US figures and the methodology
2025 on the Australian GDP (assuming Australian the Kaufmann Foundation used to come to these
GDP is approximately $3 trillion).1 figures we think that actual formation rates in the
US are currently higher and are almost certainly
“One-third of the set to increase substantially by 2025. And if tech
startup formation rates approach normal business
Australian economy formation rates we still have along way to go, with
the formation rate across all business types in the
faces imminent and USA at 1,342 per million people.15
substantial disruption by With this in mind a formation rate of 292
digital technologies and
per million people is not unreasonable given
substantive support to grow the WA sector.
business models—what Investment in Resources - 2014FY ($47B)
we call a ‘short fuse, Investment in all Tech - 2025 ($1B)
big bang’ opportunities,
ESTIMATED TOTAL FUNDING REQUIRED Investment in all Tech - 2014 (GROWING UNICORNS
ESTIMATED TOTAL NUMBER OF INTERNET & DIGITAL TECHNOLOGY COMPANIES 2014 TO 2025 BY STAGE
20,000
15,000
10,000
5,000
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Potential Founders Seed Stage Startups Early Stage Startups Growth & Later Stage Co.s Unicorns
ESTIMATED TOTAL FUNDING FOR INTERNET & DIGITAL TECHNOLOGY COMPANIES 2014 TO 2025 BY STAGE (AUD$MILLIONS)
$80M
$160M
$80M
$152M
$140M
$118M
$100M
$34M
$200M
$20M $26M $53M $90M
$100M
$32M $20M $20M $28M $39M $42M $155M
$36M $60M $68M
$25M $17M $20M $20M $32M $60M
$118M
$32M $10M $34M $60M $60M $54M
$15M $91M $125M
$20M $30M $60M $60M $70M
$57M $74M $100M
$44M
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Seed Stage Startups Early Stage Startups Growth Stage Co.s Later Stage Co.s Unicorns
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