Australian startups are increasingly looking to move overseas

Australian startups are looking overseas. Getty

The latest survey of the Australian startup sector, Startup Muster, shows an increasing number are looking to go overseas.

The survey of more than 600 startups asked 71 questions across a variety of subjects, including whether the companies expected to “continue to operate in Australia” and whether they were planning to relocate after 2015.

There was a drop in respondents who said their plans included operating in Australia, and an increase in those wanting to relocate.

Monica Wulff, co-founder and incoming CEO of Startup Muster, says there is no data on exactly why there has been an increase in Australian startups looking overseas, but she notes that Australians have a tendency to travel and expand internationally.

The survey also showed an increase in plans to access foreign capital, either through a capital raising, being purchased or listing on a foreign stock exchange.

The data comes shortly after Atlassian filed for an IPO in the United States.

The CEO of another Australian tech business listed in New York recently told Business Insider that the Australian stock exchange isn’t mature enough, especially when it comes to the software industry.

“One of the problems with the ASX is that all technology businesses get bundled into one. We have had some successes but they are either online marketplaces or IT-managed services” Nitro CEO Sam Chandler said.

Crowdfunding is a potential solution to this maturity problem, and could encourage more local capital raisings, as it would allow more startups to get to the stage where they can list.

But legislation unveiled yesterday has been met with criticism in the startup sector.

Startup executives say restrictions within the law mean it is not adequate for their needs.

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