Crossroads report highlights strong startup growth in NSW
Media release | 30 November 2017
A new report into startup businesses and has found NSW has more startups than any other state, and more successful startups in multiple industries, thanks to strong and growing government support in the sector.
Deputy Premier, Minister for Regional NSW, Skills and Small Business John Barilaro said the 2017 StartupAus Crossroads report, released today, highlights significant growth in NSW’s startup sector since 2011.
Mr Barilaro said that the growth has been amplified by recent NSW Government initiatives including the launch of Jobs for NSW and the $35 million Sydney Startup Hub.
“The highly regarded StartupAus Crossroads report in 2017 includes a deep-dive into NSW strengths and our opportunities for growth, as we move closer towards our goal to become a world leading centre for innovation,” Mr Barilaro said.
“The sector is worth $70 billion to the NSW economy, so as a government we want to be doing everything we can to create the right environment for people to have the confidence to launch a startup, and the support they need to make sure it succeeds.
“Sydney ranks in the top three startup ecosystems in Asia and 17th in the world (2017 Startup Genome Report), but we want it to be in the top 10 in the world.
“NSW’s startup sector also extends substantially beyond metropolitan Sydney with more than 1 in 10 NSW startups based outside the city.
“The NSW Government, through Jobs for NSW, has committed $190 million to support fast-growth businesses at every stage of their lifecycle.
“On top of that, we’ve also launched the new $150 million GO NSW Equity Fund, a partnership with First State Super, which will see the NSW Government take an equity stake in high-growth companies.
“We are further supporting innovation in the sector through initiatives like the creation of the Sydney School of Entrepreneurship and our Boosting Business Innovation Program that allows businesses to link up with our universities, and make the most of their research and knowledge base,” he said.
Mr Barilaro said the Crossroads Report notes the particular strength of NSW fintechs, which have received 25 per cent of capital raised by NSW startups since 2015.
“In a sign of the strength of our startup sector, the report highlights that more than $900 million has been invested in NSW startups since 2015, including significant investment in Health and Life Sciences (18%), Software as a Service (17%), and Sharing Economy (8%) businesses,” Mr Barilaro said.
StartupAUS CEO Alex McCauley said this is the first year the Crossroads Report has featured a State In Focus section with a deep dive on NSW.
“The NSW startup ecosystem has grown rapidly in recent years and it’s great to see the NSW Government proactively supporting focused future growth,” Mr McCauley said.
“The support of Jobs for NSW along with significant precinct development activities such as the Sydney Startup Hub and the Sydney School of Entrepreneurship will contribute enormously to this future growth.
“Sydney’s rising status in the global startup ecosystem rankings will help Australia to elevate its overall status as a potential top 10 startup ecosystem player. As we have addressed more broadly in the report, talent constraints are currently the greatest barrier to this growth,” he said.
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