FUND FLOW ORGANISATION SafetyCulture JobFit Systems Intl JESI Management MandraIT CatchLog Trading Trinity Software Strictly Service Business Ready Tool Why Not Tours Shed Project AM Shelfie Dynamic Conversations TOTAL RAISED REGION AMOUNT RAISED Townsville $5,700,000 Mackay $900,000 Townsville $900,000 Calliope $830,080 Cairns $745,198 Cairns $601,000 Mackay $500,000 Townsville $100,000 Cairns $20,000 Toowoomba $20,000 Townsville $20,000 Cairns $20,000 $10,356,278 YEARS 2013, 2014 2012 2013, 2015 2012 2011 2012 2013, 2014 2012 2014 2015 2015 2015 FUNDING SOURCE CA, Blackbird, Angels CA, Unknown CA, Unknown CA, Unknown CA, Unknown CA. Unknown Not disclosed CA, Unknown ilab ilab ilab ilab TOTAL FUNDING RAISED – ALL TECH $10.4M Based on total funding raised over five and a half years in Regional Queensland. FUNDING PER CAPITA – ALL TECH $1.15 Average fund pool per year divided by Regional Queensland’s population. VENTURE CAPITAL PER CAPITA Silicon Valley Israel USA Switzerland Norway Melbourne Cup Bets Australian Bio-tech Sweden Finland Denmark France Britain 2012 Aus Olympic Team Ireland Netherlands Belgium New Zealand Austria Perth (incl govt) South East Queensland Australia South East Queensland (Excl Govt) Perth (excl Govt) Regional Queensland Regional Queensland (Excl Govt) 14 15 16 $4,241 $183 $81 $74 $54 $52 $44 $40 $28 $16 $15 $15 $14 $14 $14 $12 $11 $8 $6 $5 $4 $4 $3 $1.2 $0.8 The report’s funding data covers the January 2010 to July 2015 period and includes all digital technology companies in RQ with publicly available information. It includes both investments and government grants (where no equity was exchanged). This report identified 12 digital technology companies that secured funding, raising a total of $10.4 million, which gives an average of $2.1 million per year, or $1.15 per capita. SafetyCulture (Townsville) alone contributed more than 55% of the total funding raised in RQ. TOTAL FUNDING BY REGION Gold Coast Brisbane Townsville Sunshine Coast Mackay Cairns Other QLD Region Toowoomba Ipswich Bundaberg Rockhampton TOTAL FUNDING BY LEAD FUND TYPE Venture Capital Government Fund (CA) * Angel Group Unkown (Matched Funding) Accelearator $69M $45M $6.7M $5.3M $1.4M $1.4M $83K $20K $3.8M $3.5M $1.9M $1.6M $80K Funding levels within RQ are well below the norms across Australia for startup investment - between $4 to $6 per capita per year. Furthermore, they are critically below global startup investment rates which range between $30 to over $3,000 per capita per year. While only 14% of startups in Regional Queensland raised money, the remaining 71 startups will have required bootstrapped investment. We estimate that roughly $20 million in bootstrapped investment has been provided by founders, family and friends to get these remaining startups up and running - based on an average investment of $250,000 per startup. The actual figure is most probably higher than stated. $0 $0 $0 TOTAL RAISED BY YEAR $745,198 $2,431,080 $4,200,000 $2,420,000 $560,000 2011 2012 2013 2014 2015 When examining the major sources of funding, government funding comes out as one of the largest. Government funding is almost entirely made up of funding from the now defunct Commercialisation Australia (CA) program, ~$3.5 million or 33% of total funding, which attracted matched funding of $2.2 million (21% of all funding) from angels and VCs. It is noteworthy how effective CA was in attracting capital into the sector. The second largest funding source is individual angels - $2.4 million or 23% of all funding. ilab, an accelerator, has funded four regional startups to participate in its germinate accelerator program. Whilst the dollar amounts are low ($80,000), they provide an important service in incubation and exposure to further capital. The Advance Queensland 13 announcements in July 2015 were warmly received by regional startup participants. With $76 million aimed at encouraging a new wave of startups, supporting proof-of-concept projects, and attracting coinvestment through the Business Development Fund, it is promising to see $24 million directly earmarked for Startup Queensland, to directly increase startup formation and attraction. 10
“ UNLIKE RESOURCES, CREATIVITY IS NON-DEPLETABLE. NOR DOES IT DEGRADE THE ENVIRONMENT. IT THEREFORE UNLOCKS OPPORTUNITIES FOR SUSTAINABLE GROWTH.” PARK GEUN-HYE, 2013 SOUTH KOREAN PRESIDENT
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