Despite the GFC and the on-going debt crisis in Europe, the Australian economy has remained surprisingly resilient. Growth has remained positive and unemployment is at historical lows. Many commentators have attributed this success largely to the mining and resources boom and the continued demand for resources in China.
However, one sector of the economy which has largely been ignored by the popular press but which is quietly enjoying a resurgence is the IT sector. In particular, start-up companies at the cutting edge of IT are enjoying unparalleled levels of interest from local and overseas investors and institutions.
A review of the past year reveals that venture capital firms have funded Australian IT companies to the tune of several hundred million dollars.
For example, DesignCrowd, a crowd-sourced graphic design company, recently received a $3 million investment from Venture capital firm StarFish Ventures. It has also been reported that other Australian technology companies have also received large amounts of funding, including BigCommerce ($15 million in August), 99designs ($35 million in April), OzForex ($110 million in November last year) and Atlassian ($US60 million in July last year)1.
Institutions have also become active in supporting new IT start-ups. The University of New South Wales has recently announced their intention to set up an on-campus incubator, offering subsidised premises, plus free Internet access and commercialisation advice to IT Start-up companies.
Australia appears to be in the grip of a mini IT boom and the main beneficiaries appear to be start-up companies that are developing innovative products. Now is the time for all IT start-up companies to reassess their value proposition, their business plan and their Intellectual Property portfolio, with a view to gearing themselves up for a round of investment. At Wrays, we can help you review your IP portfolio in order to put you in the best position possible for an approach to a venture capital firm, a private equity firm, or angel investors.
Alternatively, if you’ve been kicking around an idea but have been worried about an uncertain world market, now is the time to explore that idea further. We are happy to help you devise a strategy that will assist you in protecting and commercialising your idea.
Contact Joe Seisdedos (joe.seisdedos@wrays.com.au) in our Sydney Office to discuss your requirements.