There is a global gold rush at the moment that is generating intense international competition to attract the best tech startups in Australia.
Starting a company is like throwing yourself off the cliff and assembling an airplane on the way down – Reid Hoffman.
In less than 10 years Australia’s technology startups sector has gone from very little activity to an explosion of people and investment — the ecosystem is now one of the fastest-growing startup sectors globally.
Startups in Australia 5 years back & today
5 years 
in Australia:
- VC funds raised $155 million — and there were only three active funds (one of the lowest in OECD countries).
- The biggest software startup, Atlassian, raised $60 million the year before at a $460 million post-money valuation
- The biggest exit in tech was a software company, Distra, at $46 million. (all 2012—13 divestment value for VC-backed firms was less than $100 million!)
In 
:
- Over $1.5 billion was raised by VC funds in the last two years, including the first $200-million-plus funds. (There are now five funds over 200 million)
- Atlassian is currently valued at around $US13 billion and is listed on the NASDAQ, followed more recently by WiseTech on the ASX ($3 billion market cap).
- Investment in startups is growing faster than in Europe or the US — over 65% between CY16 and CY17
Stuff is hot. And getting hotter.
However, great companies always find inefficiencies in the market they operate in, and create products that fit snugly into the market need.
Crossroads 2017 highlights, attracting talent is now the single biggest barrier facing Australian tech startups.
Launching tech startups in Australia
Launching tech startups can be an exciting and challenging experience. There are several positives and negatives involved, and the best sectors to launch a tech startup in Australia depend on various factors.
Positives:
Strong economy: Australia has a robust economy that supports startups and entrepreneurs. The country has a stable political environment, favourable tax policies, and access to capital, making it an attractive destination for launching a startup.
Supportive government policies: The Australian government has implemented various policies and programs to support startups and entrepreneurs, including tax incentives, grants, and funding programs.
Skilled workforce: Australia has a highly skilled workforce with expertise in various fields, including technology, engineering, and business.
Negatives:
High cost of living: Australia has a high cost of living, which can make it challenging for startups to attract and retain talent.
Limited market: The Australian market is relatively small, which means startups may need to expand overseas to achieve significant growth.
Competition: Australia has a highly competitive startup ecosystem, which can make it challenging for startups to stand out and secure funding.
Best sectors to launch a tech startup in Australia
Launching a tech startup in Australia can be a rewarding experience, with access to a supportive ecosystem, skilled workforce, and a stable economy.
Fintech
Australia has a thriving fintech sector, with a supportive regulatory environment and a strong banking system.
Healthtech
Australia has a robust healthcare system, and there is growing demand for innovative healthtech solutions.
Edtech
The Australian education system is highly regarded, and there is growing demand for innovative edtech solutions.
Agtech
Australia has a strong agricultural industry, and there is increasing demand for technology solutions to improve efficiency and sustainability.
Cybersecurity
With the increasing importance of cybersecurity, there is growing demand for cybersecurity solutions in Australia.
The Starting Line Of Tech Startups In Australia
So if you want startups idea, here is how we can think about it for a B2B tech startup. It’s not a single day workout process but a recursive one, more specifically a continuous hit & trial method until you hit on the bush.
1. Find an Australian market that excites you 
Most successful entrepreneurs I’m aware of either explored their choice market carefully or have toyed with a side project that happened to show massive and unexpected early promise and only then evolved formally into a company in Australia. Otherwise, you’ll be bored to death while doing your market research.
2. Research the heck out of this market 
Once you have decided your target market, the next step is a through 3-6months market research. Put a foot in the door of anyone who will open it for you, and learn from them. Try to diversify as much as you can in terms of company size and business verticals.
You also need to consider geographical regions you are targeting, Australia in these, & churn out as much information as you can for the market. To know the major reasons why you should consider Australia for your startups, refer here.
3. Start building your take-to-market product 
The nice thing about doing a thorough market research is that you may have created your first five real customers there itself. So this is the time you need to start building your MVP(Minimum Variable Product).
MVP as that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort – Eric Ries
The idea of MVP is that you produce an actual product that you can offer to customers and observe their actual behavior with the product/service. Seeing what people actually do with respect to a product is much more reliable than asking people what they would do.
4. Align your “idea” with the market trend 
The market is quite dynamic today. It shifts and changes under your feet, competition emerges, the customer today is more demanding than ever. You understand much more about the market while actually trying to sell something.
Most of the ideas for modification & product diversification is generated from the market itself where the scope for a better, improved product is always open.
5. Share your idea to as many people as you can 
Australia is a vibrant country with an exciting energy. According to a survey by Startupmuster, Ultimo has Australia’s highest concentration of startups, with 52 startups per kilometer followed by Melbourne with 16.5 startups/ km and Sydney with 15.4 startups/ km.
As you progress in the market, try to solve niche specific problems & share your ideas with others for receiving their suggestions to expand your business.
However, startups in Australia need to consider the high cost of living, limited market, and competition. The best sectors to launch a tech startup in Australia depend on various factors, including market demand and regulatory environment.
