Vision : Adelaide As Next IT Hub

[PeFe]

Adelaide the next Aussie start-up hub?
By Mahesh Sharma, ZDNet.com.au on April 17th, 2012

America's TechStars has long been recognised as one of the world's pre-eminent organisations supporting entrepreneurs via its accelerator program, so, like many others in the local start-up ecosystem, I was confused to discover that its migration to Australia would bypass our two largest cities of Sydney and Melbourne.

Instead, the TechStars-inspired ANZ Innovyz Start program selected Adelaide, an economy built on churches, wineries and arts events.

Innovyz program founder and Kauffman Foundation fellow Jana Matthews is relocating from Boulder, Colorado, to lead the program in Adelaide, and aims to break down this perception by laying the foundations for a viable, thriving technological economy.

Adelaide is not dissimilar to Boulder, she said, which has grown to become one of the top start-up cities in US, along with the likes of New York, Boston, Washington DC and Austin, Texas.

"What are the elements that I saw in Boulder that I see in Adelaide around which you build a tech-based economy?" Matthews said. "One is some kind of power, it could be tax-based, population-based; it could be politicians.

"[In Adelaide] you have a very nice place, good quality of life, three universities producing some great technology, three wine areas, which are an hour's drive, which contributes to the quality of life."

Matthews played a part in establishing the ATP Innovation Park in Redfern, Sydney, in the 1980s, and she said that Adelaide's selling point is the quality of life that is crucial to securing people for the long term, and is a different proposition to the immediate financial returns on offer in Silicon Valley.

"When people are saying, 'where do I want to go in terms of building up tech economy' ... it's [about] the quality of life; affordable housing; universities producing great research and a steady flow of students that are coming out; industries that are innovative, or looking to innovation, or have R&D and leadership, people who are leading in terms of vision of what this could be.

"If you have all those elements, it could create an interesting move to a tech-based economy."

If she's successful in achieving her goal, Adelaide could leapfrog its way to the top of Australia's start-up pile, and add a new generation of players to its colourful entrepreneurial history.

Innovyz is one of 35 accelerators that are part of the of the Global Accelerator Network (formerly the TechStars Network), and is patterned on the TechStars model, but it is not a franchise, according to Matthews.

She said that it replicates particular elements of the TechStars program, including investing $18,000 in cash to the founders, providing free rent and "tuition" during the three-month program and the ambition that over half of the companies will get some form of follow-up funding.

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She said that over 150 applications would exceed their expectations, and they have already taken applications internationally, including from the Ukraine, the UK, Canada, Romania, South America, South Africa, India, Thailand and even the United States.

The program is sponsored by ANZ Bank, and applications close on 20 April. The winners will be announced on 14 May.

SWOT analysis
Strengths
It has access to the knowledge and resources of a proven American model, and Matthews is very experienced in laying the foundations of start-up industries. Adelaide is a blank canvas, rich in resources, with little start-up legacy or competition.

Weaknesses
There's no guarantee that the American model will easily translate to the local context. Lack of start-up competition is also a double-edged sword, as Adelaide entrepreneurs haven't proved themselves in the same way as their counterparts from Sydney and Melbourne.

Opportunities
The goal is to build a long-term, sustainable economy, not just churn out successful entrepreneurs/businesses like other accelerators, and as such it could be the foundation of a genuine tech economy.

Threats
It will be interesting to see up how the tie-in with ANZ plays out; whether this will encourage or stifle entrepreneurship. As always, accelerators live and die by the drive of the entrepreneur.

Conclusion
Initially, I was very sceptical about another Yankee coming "down under mate" and showing us simpletons how it's done, an approach that is doomed to failure. However, that is definitely not Matthews' intention.

She really wants to build a sustainable technology economy; an ambitious goal, but a positive one, in contrast to local accelerators, which largely focus on furthering the interests of entrepreneurs and mentors before considering the impact on the local ecosystem.

Matthews prioritises quality of life as a way to build a solid foundation for sustainable long-term growth, which in turn will deliver the best result for entrepreneurs, mentors, investors and the Australian economy.

Verdict: BOOM

http://www.zdnet.com.au/adelaide-the-ne ... 336093.htm

[mattblack]

Adelaide the next Aussie start-up hub?
By Mahesh Sharma, ZDNet.com.au on April 17th, 2012

Adelaide, an economy built on churches, wineries and arts events.

What an uneducated dickhead.

[Will]

Adelaide, an economy built on churches, wineries and arts events.

It's comments like this that make me long for the wank emoticon to make a return.

But for the emantime, this will do:

[metro]

Adelaide the next Aussie start-up hub?
By Mahesh Sharma, ZDNet.com.au on April 17th, 2012

Adelaide, an economy built on churches, wineries and arts events.

Melbourne, an economy built on trams, ford and footy

Sydney, an economy built on beaches, tourists and the opera

[Splashmo]

Gee, touchy much? The journalist could have wrote "Adelaide, an economy built on stagnating manufacturing, retail and agricultural sectors". What they've said is just a nice way to draw people in and nobody would seriously believe that.

[Nort]

That bits obviously written from the authors perspective, as a way of showing how they would have initially overlooked Adelaide.

People need to stop being so bloody sensitive. You think someone in Melbourne or Sydney cares what Adelaide thinks of them? No, they do their thing and forge their identity and let that speak for them. Substance is more important than style, so lets work on building that.

[Will]

Seriously, every article, feature, news story or even travel features on shows like getaway about Adelaide always begin with a put down. I'm sorry, but I'm sick of it.

We have to tell the people that do this, that it's not OK to bully us. Bullies only win when their victims do not stand up to them.

[Nort]

Seriously, every article, feature, news story or even travel features on shows like getaway about Adelaide always begin with a put down. I'm sorry, but I'm sick of it.

We have to tell the people that do this, that it's not OK to bully us. Bullies only win when their victims do not stand up to them.

Yes, because in a schoolyard fight bullies stop picking on kids when they keep complaining for them to stop.

[Waewick]

Seriously, every article, feature, news story or even travel features on shows like getaway about Adelaide always begin with a put down. I'm sorry, but I'm sick of it.

We have to tell the people that do this, that it's not OK to bully us. Bullies only win when their victims do not stand up to them.

it is weird but what you are saying about those shows is right.

the saddest part is that it must reflect reality in the Eastern States.

On the tram the other day I overheard a conversation between two foreign tourists who had driven 8 hrs from Melbourne to see Adelaide.

The drive itself isn’t the thing, it is the fact that they did it despite everyone telling them not to waste their time coming to Adelaide, this includes eastern state people and their fellow travellers (who I assume haven’t been here) – they only got 48hrs in Adelaide outside the 16 it took to get here.

That kind of story I have heard countless times and every time I hear it I am disappointed – the utter ignorance of people saddens me especially when the actively discourage people to venture outside the typical “Australian route”.

[Wayno]

So on to the main point of the article - Adelaide as an IT innovation startup hub. A quick search yielded these 2 sites:

http://www.techstars.com/: TechStars provides seed funding from over 75 top venture capital firms and angel investors who are vested in the success of your startup, as well as intense mentorship from hundreds of the best entrepreneurs in the world.

The Techstars model is seen as THE approach to kick start new IT companies. The local Adelaide ANZ / Innovyz approach obviously uses a similar approach:

http://www.innovyzstart.com/: ANZ Innovyz START is a result of the partnership between Innovyz and ANZ. The program is a demonstration of their commitment to growth and innovation in small business, and accelerating the development of start-up companies. Patterned after TechStars, ANZ Innovyz START has a proven formula to supercharge the smartest and brightest startups in the world. Hard to get into, with cash, perks and course delivery equal to $185,000, and mentoring by people you couldn’t get access to on your own, this program will jump-start the growth of your company. We are attracting some of the smartest and most successful entrepreneurs from around the world to mentor companies in ANZ Innovyz START - the who’s who in the entrepreneurial world. If you have experience growing and exiting a company and a passion for helping entrepreneurs grow companies trying to commercialize break-through innovations, please check out our program and contact us.

The Person leading the Innovyz program is Jana Metthews. She has her own company (http://janamatthewsgroup.com/) and is moving (has moved?) from Boulder To Adelaide. Here's the blurb from her website:

What does it take to become a successful growth company?

More revenue? More productivity? Stronger team? Better execution? If your company is not meeting expectations, if obstacles are getting in the way of maximizing your growth potential, you are not alone. CEOs and company owners all over the world are wondering what it takes — and are searching for answers.

Jana Matthews, recognized as one of 18 Women Business Gurus in the World, knows what it takes. She and her team teach and mentor CEOs to build companies that enable people to perform at their best, deliver products and services that customers want, and become profitable and increasingly valuable. We’re pleased you found us and encourage you to use the resources on this site to learn more about what it takes to become a successful growth company.

Sounds like Innovyz itself would be an interesting place to work.

From http://www.innovyzstart.com/news/applications-now-open it says:

Applications open February 24 and close April 20. Companies selected will be announced May 14. Each founder (up to three founders) of the ten companies selected will receive $6,000 in cash to participate in the program and will co-locate in one space, at no charge. In exchange for all this support, ANZ Innovyz-START will take 8% equity in each company. We, like the founders, will be totally vested and committed to the success of each company.

I'll be interested to hear who won and how many are local SA companies. Also where the Innovyz offices are located (probably within the local ANZ offices)

Fingers crossed the result is good for SA! That's the best way to shut up the bullies.

[Splashmo]

Seriously, every article, feature, news story or even travel features on shows like getaway about Adelaide always begin with a put down. I'm sorry, but I'm sick of it.

Is it a put down to say we're known for churches, wineries and arts events? I don't think so.

[Will]

Seriously, every article, feature, news story or even travel features on shows like getaway about Adelaide always begin with a put down. I'm sorry, but I'm sick of it.

Is it a put down to say we're known for churches, wineries and arts events? I don't think so.

The chuches bit is.

[[Shuz]]

The churches thing only came about because Adelaide, or South Australia, rather was well known for embracing religious diversity and was open to accepting new faiths. (Lutheran, Methodist, Uniting, etc.) faiths which were 'frowned upon' from the traditional Roman Catholic sects in Sydney and Melbourne of the early settlement years.

Multicultural and religious advocates would see this as a strength, rather than a weakness.

[Will]

The churches thing only came about because Adelaide, or South Australia, rather was well known for embracing religious diversity and was open to accepting new faiths. (Lutheran, Methodist, Uniting, etc.) faiths which were 'frowned upon' from the traditional Roman Catholic sects in Sydney and Melbourne of the early settlement years.

Multicultural and religious advocates would see this as a strength, rather than a weakness.

Shuz, you have it the wrong way around; actually the Catholics were frowned upon by the traditional British protestant sects (i.e. the Anglicans). Indeed, I recall reading that a vote to ban the Catholic faith was only lost by 1 vote in the NSW upper house in the early 1920s.

Returning to the "city of churches" moniker, if people actually knew the reason why we are called it, then it would not be a problem. The problem is that most do not know the story behind it, and believe we got the moniker because we are so boring that there is nothing else to do than go to church.

[Wayno]

I'm fascinated the focus on this thread is on a sideline comment by the journalist, albeit inaccurate & frustrating.