| This is a great post. I'd like to add: > You can get even better value if you can build your team outside of Sydney/Melbourne. So much this, but talent outside the big cities is rare. I lived in Queensland for a while and would have taken a massive pay cut for any tech work... but there just isn't any. I knew more people working in Sydney (fly-in-fly-out) than working in local companies. You can pick up uni students cheaply. They're grateful for relevant work. I knew a few founders living cheap but pretty much all knew that moving to the US was an inevitability. > focused on building a good business first This is a massive plus of starting in Australia. The business has to make sense. Local funding sources aren't as willing to build perceived value and flip the company -- it's important to have a genuine sustainable business with customers and cashflow. > 43.5% of your development cost back through the R&D Tax Incentive Probably half of my lifetime earnings have been paid for with the R&D Tax Incentive and other grants. It's such a good deal that every incorporated company with a tech component should be trying to claim it. I'm not grumpy or anything, but in Queensland, claiming government grants for tech companies is probably more lucrative than working in a tech company. There's an abundance of funding and a shortage of people able to use it. > don't limit yourself to selling or developing in only one location I forget who gave the talk, but it was from Muru-D at Co Spaces in the Gold Coast, and guy said (paraphrasing): "New Zealanders have an advantage over Australians because they know from day one that they will have to sell overseas to make their company a success. Australia is big enough that you can fool yourself for a while, but it won't take long before you reach saturation and need to move anyway. Better to get it done sooner." |
This is what playing the long game is for. Take a lesson from Texas Instruments. The founders decided to start a tech company in North Texas, where there wasn't much talent. So they decided to grow their own: they started their own university with a strong focus on STEM subjects, located not too far from the corporate headquarters, and once it grew large enough, they turned it over to the state. To this day, the University of Texas at Dallas supplies TI with a lot of fresh grads, and Richardson, TX has grown up to be a large tech hub.
Of course, this takes a lot of time and a lot of money, but a particularly ambitious and rich team of founders can open a university on the outskirts of, say, Brisbane or the Gold Coast, and given enough time, they'll have people to feed their tech company and turn the area into a tech hub.