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Startup Ecosystem Report Regional Queensland 2015 STARTUP ECOSYSTEM REPORT A report on the People, Groups and Companies involved in Regional Queensland’s startup sector. JANUARY 2016 Commissioned by the Department of Science, Information Technology, and Innovation; the Toowoomba Regional Council; Ipswich City Council; Bundaberg Regional Council; Rockhampton Regional Council; Mackay Regional Council; Townsville City Council and the Cairns Regional Council. Produced by Boundlss. 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Dae Ede Naaa We Pa Lae D Nea Tba Site Specific Software Solutions Aa Dae SaTeWae Va Dd A Lab Aaa NFA Pe Tea S C W Da Cea CDae Cae B K Dad C. Waa Ta W. Laee Ca Ha M F B S Pa Daa Cee Aa Pe Rae W N T Ab Sa Le Gba Se S De Ma E Sae Ia Ce E Sad BPe Aa3D Reb Ne Habe Ba K P Ma A De Ma a B Ve Iae GaePa Gba S Mae Se Naae Ae Bdabe Beed D Tae Paade Ta N Qeead Dae Ld Sed e N Ada Wa CdSa Jae Ae Rea2 Ia I ObSd TedeHd 4e Te C C J MLea Ge Sae Dae S N Gd Ge Be Re Ree A Fe Ea B CONTENTS Foreword 4 Summary 5 About 7 Context 8 Fundflow 10 Organisations 12 Regional Showcase 14 Regional Comparisons 15 Toowoomba 16 Ipswich 18 Bundaberg 20 Rockhampton 22 Mackay 24 Townsville 26 Cairns 28 Company Stages 30 Angel & Startup Density 31 Global Comparisons 32 STEM Talent Flow 34 STEM Talent Flow Map 36 Meetups & Events 38 Network Centrality 39 Market Focus 40 Technology Strengths 41 Spotlight – AgTech 42 Spotlight – SafetyCulture 44 Community Insights 46 Thank You 48 References 50 3 FOREWORD The Regional Queensland Startup Ecosystem In support of Advance Queensland, the Regional The Regional Queensland Startup Ecosystem Report was commissioned by the Queensland Queensland Startup Ecosystem Report provides Report’s findings indicate regional Queensland Government in partnership with the Cairns valuable data about the contribution startups make has a strong foundation on which to position the Regional Council, Townsville City Council, to regional Queensland economies. The report state as an attractive investment destination with a Mackay Regional Council, Rockhampton estimates regional Queensland currently has more strong innovation and entrepreneurial culture. Regional Council, Bundaberg Regional Council, than 70 startups, employing approximately 450 Ipswich City Council and Toowoomba Regional people and since January 2010 has raised $10.4 The importance of the startup ecosystems to the Council. million in funds. growth and diversification of regional Queensland economies cannot be understated. The Queensland Government is investing, This report complements the South East through the Advance Queensland initiative, $180 Queensland Startup Ecosystem Report, which Regional Queensland, through the support of this million over four years to create the knowledge was released in July 2014 https://www.qld.gov. report, is embracing the opportunities to broaden based jobs of the future. au/dsitia/assets/documents/startup-ecosystem- regional economies in which their communities mapping-report.pdf. operate and are ready to assist in reskilling and Advance Queensland is a comprehensive suite retooling the existing workforce to take advantage of programs designed to solve global challenges, Similar to the South East Queensland Startup of the opportunities available through technology seize opportunities in growing markets, attract Ecosystem Report, this report provides an in- startups. investment dollars and create the jobs of the depth insight into the diversity and unique aspects future. It will help position the state as an of regional Queensland startup ecosystems and The Queensland Government will work with attractive investment destination with a strong associated infrastructure. regions to understand and build their innovation innovation and entrepreneurial culture. ecosystem. 4 SUMMARY NO. STARTUPS NO. STARTUPS FORMED BY YEARb % OF STARTUPS BY TEAM SIZE 83+ 24 Estimated number of startups within Regional Queensland (RQ)a 18 50% 12 NO. FOUNDERS 10 6 4 4 22% 24% 150+ 4% Estimated number of startup founders within RQ 2009 2010 2011 2012 2013 2014 2015 1 2-5 5-10 11-50 NO. PEOPLE ~450 MARKET FOCUS: % STARTUPS BY TOP 10d % OF PEOPLE BY AGEe Estimated number of RQ startup employees Agriculture, Forestry, Fishing & Hunting 17% Arts & Recreation Servicesc 10% 32 N0. MEETUPS & EVENTS 29 Information Media & Telecommunications 10% 27 71 Professional, Scientific & Technical Services 10% Education & Training 8% Estimated number of startup events per annum Entertainment, Tourism & Sport 6% NO. COWORKING SPACES Public Administration & Safety 6% 9 Retail Trade 6% 4 3 Communication 5% 18-24 25-34 35-44 45-54 55+ Construction 4% NO. SUPPORTING COMPANIES 150+ e e Estimated number of companies involved in the % OF PEOPLE BY COMMON SKILLS FEMALE FOUNDERS startup ecosystem Strategy 10% Female (13%) Marketing 8% Male (87%) NO. ASSOCIATED PEOPLE Project Management 7% Management 6% ~1,500 Education & Training 5% Based on the number of technology meetup groups 5% and employees of startups and supporting entities Leadership Information Technology 5% TOTAL FUNDING RAISED BY STARTUPS Business Development 4% Stakeholder Management 3% $10.4M Finance 2% Estimated total amount of funding raised by RQ startups between January 2010 and July 2015. Funding sources include venture capital, angel investment, government grants and awards. a) For the purpose of this report, Regional Queensland d) While the report uses the Australia New Zealand Excludes bootstrapping (self funding) (RQ) is defined as the following regional areas; Industrial Classification (ANZIC) to classify the Toowoomba; Ipswich; Bundaberg; Rockhampton; “Market Focus” of companies, this does not represent Mackay; Townsville; and Cairns. their industry classification, but rather the target AMOUNT OF STARTUP BOOTSTRAPPING b) Number of Startup companies founded by calendar market of a startup company - the primary market they year in the “No. Startups formed by year” graph does are addressing. not equal the total “No. Startups” as the founding dates e) Based on estimated percentage of people in RQ with $20M of some startups within RQ were not identified. “Founder” or “Owner” in their job titles, working in Based on global benchmarking, we estimate that it c) Arts & Recreation Services includes digital game Technology companies identified on Linkedin. takes $250,000 to get a startup off the ground studios, developers and tourism. 5 SUMMARY OVERVIEW The report was produced by Boundlss in Bundaberg AGRICULTURAL TECH partnership with the Department of Science, Bundaberg has a very small pool of startups The report identified that Agricultural Information Technology, and Innovation and an embryonic ecosystem.
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