[matthewsinclair]

At least part of the problem is AUS is that we really don't have VCs. We have companies masquerading as VCs, but they're more like mezzanine financiers than VCs. They want an established market, established customers, protected IP, massive sweat and real-equity from founders, and they want a controlling interest for their investment.

They generally have no capacity for risk whatsoever, and unless you're digging stuff out of the ground and razing the environment, there's very little on offer from the Government, either.

So I can see why a lot of tech startups kick-off here and then go offshore because the economic environment is just not conducive to startups (at least in general).

Given how many people small business employs in this country (from memory, its the single largest employer, unlike mining, which only directly employes a low, single digit % of workers despite the mindshare it has) we should be doing everything we can to give people a leg up to start a business.

For example, something like Jon Stewart's proposal for a 'softer cushion for failure' would be a great start. We could do a lot worse here in Australia that institute something like this: http://boss.blogs.nytimes.com/2012/10/18/jon-stewart-propose...

[mattbarrie]

There are only a few that have managed to get funds off the ground. The core problem is that VCs have trouble getting a second fund off the ground because they can't show a good return on the first.