Here's what you need to know about Australia's startup scene

Photo: iStock

2016 was another record year for Australia startups.

With the support from the $1.1 billion National Innovation and Science Agenda from the Turnbull government, new tax incentives for early stage investors, the launch of the Incubator Support initiative, and the creation of landing pads in San Francisco, Shanghai, Singapore, Tel Aviv and Berlin, Australian founders and the startup ecosystem were given more opportunities than ever to get their ideas to market and see them flourish.

Startup Muster, co-founded by Monica Wulff and Murray Hurps, talked to founders, aspiring founders, and people and organisations who support Australian startups, to produce its annual deep dive report on the local industry.

So, here’s what they discovered about Australia’s startup scene:

Here’s who is launching startups…

Startup Muster
Startup Muster

*Key: Orange is future founders. Yellow is founders.

What industry they are in…

Startup Muster

*Key: Green is supporters. Yellow is founders.

And where they are

Startup Muster

*Key: Green is supporters. Yellow is founders.

Here’s the skill sets and experience they had to do it

Startup Muster

*Key: Yellow is founders.

Startup Muster

*Key: Orange is future founders. Yellow is founders.

The support they received from incubators and accelerators

Startup Muster

*Key: Green is supporters.

And why they started

Startup Muster

*Key: Yellow is founders.

Of those startups nearly half, 45.5%, made zero revenue in the last 12 months. Of those who did, 92% generated export revenue.

The largest source of revenue for startups came from subscriptions (36.4%) and website purchases (14.3%).

When it came to funding, despite 72% of startups needing funding in order to continue growth, 53.9% admitted to never having tried it and only 2.4% were currently raising.

Of the reasons why founders didn’t attempt to raise fund, almost half said they planned to but weren’t ready.

While there has been more support offered from the government, only 33% of startups applied for grants, and among those applications, 22% were successful.

Perhaps that, in part, explains why 38.7% of founders had poor sentiment towards the government grants on offer.

So what’s next?

Here’s what startups say they need in the next six months

Startup Muster

*Key: Orange is future founders. Yellow is founders.

And their plans for the next 12 months

Startup Muster

*Key: Yellow is founders.

When launching a startup the number one piece of advice these founders had was to validate your idea and your business model. From there they said it is important to just go for it and be financially prepared.

*The survey was completed between July 1 to August 15, 2016.

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