regional queensland startup ecosystem report

STARTUP ECOSYSTEM REPORTRegional Queensland 2015

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.

A report on the People, Groups and Companies involved in Regional Queensland’s startup sector.

Alan JonesDaniel Peacock

John Thornely

Jesse Gileppa

Narain Ramakrishnan

Andrew Whannell

Anna Daniel

Matthew Schultz

Paul Pisasale

Peta Ellis

David McCallum

Rodney Archdall

Ian Irving

David C. WajsgrasTaylor W. Lawrence

Chris Jenkins

Andrew Beckenhauer

Benjamin Taylor

David Finnish

Frank Pyefinch

Jay Daniells

John McLean

Lorraine Pyefinch

Matthew Drane

Neil McPhillips

Phil Ainsworth

Phil Baker

Rhonda Whiteside

Stephen Baxter

Craig Hodges

Adam Gilmour

James Gilmour

David Withers

Jeffrey Smidt

Alan Brown

Victor Attwood

David Morrison

David Henry

Terry Kearney

Andrew Joy

Daniel Lundh

Darryl PostgateGeorge Corea

John Mlikota

Mark Matthews

Matt Hanson

Matt McKinley

Nicky Jurd

Robert Buhrke

Steven Hambleton

Peta Jamieson

Michael Waters

Stephen Moore

Peter Byrne

Dave Swain

Ian Devenish

Roy Pidgeon

Hilary Winchester

Rodney Stiff

Andrew Bills

Dieter Bohm

Carol Hautot

Brett Bundock

Symon Pritchett

Ji Shen

Troy Haines

Nicole Hambleton

Nathaniel Armer

Elliot Strickland

Simon lenoir

Sam Leo

Dale Edney

Adam Williams

Glen Rice

Elise Wyandra Warring

Tyson ClarkeLisa van den Berg

Kurt Pudniks

Anthony Dukes

Darren Cooke

Jodie Stanley

Kristy Gostelow

Mick Storch

Nicholas Flor

Robert Buhrke

Sandra Harding

Chris Cocklin

Sally Kift

Kaj Haffenden

Damian Zammit

Aaron Pirie

Matt Ewing

Graham Smith

Don Neal

Tony Crowley

Robert Sluggett

Jenny Legge

Peter Watson

Chris Madsen

Garry France

Martin Oates

Mitch Miller

Owen Rippingale

Chris Bosomworth

Jason Spence

Richard Chappell

Terry McCosker

Vince O'Rourke

Peter Milani

Andrew Bate

Mick Scott

Phil Martin

Jamie Armer

Helen Newell

Chris Mills

Joy Taylor

Leanne Griffin

Natasha Wells

Shane Ridley

Stephen Dummett

Tim Neale

David Newby

Greg Skerman

Glenn Skerman

Casey Brown

Barry Knights

Robert Gilmour

Peta Neale

Andrew Whitlock

Darren Smith

Emma Monro

Greg Stamper

Stuart PockneeMark Venz

Dr Larry Marshall

Mr Craig Roy

Glen Garner

Kerry Purcell

Joanna Batstone

Tony Best

Helen Farley

Bronwyn Voyce

Grant Bajema

Greg Bruce

Joe Hoolahan

John Williams

Luke Anear

Stuart King

Aden Tranter

David Cole

David Beitey

Matthew Tebble

Richard Sazima

Patrick Latter

Ashley Walker

John Bruce-Smith

Anton Mazkovoi

Michael Sloggett

Chris Brown

Unity Finn

Jack Milbank

Damian Zammit

Adam Young

Dennis Murphy

Christine Bell

David Masefield

Defence Materiel Organisation

Australian Army

Diggy

Engineers Australia

ASSOB

Startup Weekend

FNQ Apartments

emailancer

hello claims

Startup Cairns

TAFE QLD

BMA

Westpac

ShareBoat Technologies

ABB Industry

QR

Charles Darwin University

University of Wisconsin Madison

University of Queensland

Ecosure

Department of Defence

WR Grace

Queensland Investment Corporation

Royal Australian Navy

Queensland Fire and Rescue Service

Unisys

NQ Innovate

Solidfacts NQ

Insight Creative

GHD

Queensland Health

Ergon Energy

ClinicalHub

Conetix Web Hosting

Eduhealth Plus

My Water Filter

Northrup Grummond

Polaris Data Centre

Raytheon

Thales

Tourback

River City Labs

CurvyDames

Ipswich City Council

Springfield Land Corporation

Supercell Media

Broadband Today Alliance

A Few Extra Bucks

Caked OnGilmour Space Corp

Hortus

Intritec

Microair

Scan2Convert

WebTraf

Bundaberg Brewed Drinks

Bundaberg Region Rising

Bundaberg Regional Council

Green Valley Digital

Innov8

Jabiru

Wide Bay Volunteers

Bargara Brewing Company

Biofilm Crop Protection

Happy Healthy Kidz Australia

Eat Smart B Active

QLD Emergency Medicine Research Foundation

2bit Studios

AUFO

BetsWithFriends

CatchLog

Didgigo

Droner

Dynamic Conversations

ESRI

Focuss

HelloClaims

HoverCam

iAMConnected

Inspection Apps

Insta Connect

Konveen

Koolivoo

Mogtastic

My Footy Boots

nupath

OrbStudio

PakYak

Relocations2go

ResPax

Sakure

SamTheWaiter

ShareStuff

Snipe

TenderHound

Therma Culture

Thought Select

tourstogo.com

UAView

Voista

Why Not Tours

Iceberg Innovation

MyPool Inspection

Precedence

theSpace Cairns

500 Startups

Startup Townsville

mangoesmapping

Get Back 2 Basics

inCapital

RiverPitch

Junta

Acubis

Airmap3D

BigMate

Circuit Wiz

Farmacist

JobFit Systems

Kadence Group

LogiCamms

Procedures Online

QIT Plus

Real Time Instruments

Smart HR Solutions

Strictly Service

Tradiesweb

Startup Mackay

Inmarketing

CloudSpark

Vivia

Digital Physics

Queensland Property Advice

101 Business Group

4tel

BitPlex

Carbon Link

EnviroSource

GamePlan Global Solutions

Rail Innovation Australia

SwarmFarm Robotics

Upson Downs Imaging Services

iAssist

iMeasure

Agri Labour Australia

Global Store Solutions

Hummingbird

Kix Fit

Minstaff Survey Pty Ltd

Otrain

Precision Agriculture

Precision Terrain Solutions

Rent Resume

Sales VA

Scripti

Shedproject

Site Specific Software Solutions

Strategenics

Almost Anything

Canvas Co-Working

Startup Toowoomba


AgData

TedX Rockhampton

BajTech

Comit

DEC-MECH

ExperimentalUnicorns

JESI

NFA

NQ UAV

Osmotion

Oz Apps

Second to none Nutrition

Skydronics

Wow Factor

Insite SJC

yRepublic

University of Southern Queensland

Fierce Ventures

Townsville City Council

Townsville ICT Business Network

Taste Paradise Tropical North Queensland

Townsville Lean Network

SaferData

Wishbone Communications

Australian Digital Futures Institute

Xerospace Australasia

Make it Strategic

IBM Australia

CSIRO

AgData Australia

Code Valley

Best Practice Software

D2K

SafetyCulture

Central Queensland University

James Cook University

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 Report was commissioned by the Queensland Government in partnership with the Cairns Regional Council, Townsville City Council, Mackay Regional Council, Rockhampton Regional Council, Bundaberg Regional Council, Ipswich City Council and Toowoomba Regional Council.

The Queensland Government is investing, through the Advance Queensland initiative, $180 million over four years to create the knowledge based jobs of the future.

Advance Queensland is a comprehensive suite of programs designed to solve global challenges, seize opportunities in growing markets, attract investment dollars and create the jobs of the future. It will help position the state as an attractive investment destination with a strong innovation and entrepreneurial culture.

In support of Advance Queensland, the Regional Queensland Startup Ecosystem Report provides valuable data about the contribution startups make to regional Queensland economies. The report estimates regional Queensland currently has more than 70 startups, employing approximately 450 people and since January 2010 has raised $10.4 million in funds.

This report complements the South East Queensland Startup Ecosystem Report, which was released in July 2014 https://www.qld.gov.au/dsitia/assets/documents/startup-ecosystem-mapping-report.pdf.

Similar to the South East Queensland Startup Ecosystem Report, this report provides an in-depth insight into the diversity and unique aspects of regional Queensland startup ecosystems and associated infrastructure.

The Regional Queensland Startup Ecosystem Report’s findings indicate regional Queensland has a strong foundation on which to position the state as an attractive investment destination with a strong innovation and entrepreneurial culture.

The importance of the startup ecosystems to the growth and diversification of regional Queensland economies cannot be understated.

Regional Queensland, through the support of this report, is embracing the opportunities to broaden regional economies in which their communities operate and are ready to assist in reskilling and retooling the existing workforce to take advantage of the opportunities available through technology startups.

The Queensland Government will work with regions to understand and build their innovation ecosystem.

4

10%

8%

7%

6%

5%

5%

5%

4%

3%

2%

Strategy

Marketing

Project Management

Management

Education & Training

Leadership

Information Technology

Business Development

Stakeholder Management

Finance

d) While the report uses the Australia New Zealand Industrial Classification (ANZIC) to classify the “Market Focus” of companies, this does not represent their industry classification, but rather the target market of a startup company - the primary market they are addressing.e) Based on estimated percentage of people in RQ with “Founder” or “Owner” in their job titles, working in Technology companies identified on Linkedin.

SUMMARYNO. STARTUPS

83+Estimated number of startups within Regional

Queensland (RQ)a

NO. FOUNDERS

150+Estimated number of startup founders within RQ

NO. PEOPLE

~450Estimated number of RQ startup employees

N0. MEETUPS & EVENTS

71Estimated number of startup events per annum

NO. COWORKING SPACES

3NO. SUPPORTING COMPANIES

150+Estimated number of companies involved in the startup ecosystem

NO. ASSOCIATED PEOPLE

~1,500Based on the number of technology meetup groups and employees of startups and supporting entities

TOTAL FUNDING RAISED BY STARTUPS

$10.4MEstimated 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. Excludes bootstrapping (self funding)

AMOUNT OF STARTUP BOOTSTRAPPING

$20MBased on global benchmarking, we estimate that it takes $250,000 to get a startup off the ground

1 2-5 5-10 11-502009 2010 2011 2012 2013 2014 2015

NO. STARTUPS FORMED BY YEARb % OF STARTUPS BY TEAM SIZE

% OF PEOPLE BY AGEe

FEMALE FOUNDERSe% OF PEOPLE BY COMMON SKILLSe

MARKET FOCUS: % STARTUPS BY TOP 10d

22%

50%

24%4%

4

10

46

12

18

24

17%

10%

10%

10%

8%

6%

6%

6%

5%

4%

Agriculture, Forestry, Fishing & Hunting

Arts & Recreation Servicesc

Information Media & Telecommunications

Professional, Scientific & Technical Services

Education & Training

Entertainment, Tourism & Sport

Public Administration & Safety

Retail Trade

Communication

Construction

a) For the purpose of this report, Regional Queensland (RQ) is defined as the following regional areas; Toowoomba; Ipswich; Bundaberg; Rockhampton; Mackay; Townsville; and Cairns.b) Number of Startup companies founded by calendar year in the “No. Startups formed by year” graph does not equal the total “No. Startups” as the founding dates of some startups within RQ were not identified.c) Arts & Recreation Services includes digital game studios, developers and tourism.

Female (13%) Male (87%)

18-24 25-34 35-44 45-54 55+

29

32

9

27

4

5

SUMMARY OVERVIEW

The report was produced by Boundlss in partnership with the Department of Science, Information Technology, and Innovation (DSITI), Toowoomba Regional Council, Ipswich City Council, Bundaberg Regional Council, Rockhampton Regional Council, Mackay Regional Council, Townsville City Council and the Cairns Regional Council.

This report identified 83 technology startups operating throughout Regional Queensland. Information was gathered through seven regional workshops, interviews with founders and from manual research using data from online media.

The report found an estimated 450 people who are working in and building scalable technology startups. The report identifies $10.4 million in funding over 5 years to 12 regionally based startups, resulting in a funding per capita of $1.15.

MARKET / PRODUCT FOCUS

Of these 83 startups, a wide range of market focus was evident, with particular regional clusters beginning to emerge in agriculture, tourism and professional services. Product and technology types were diverse, ranging from Internet of Things sensors to online meetings to eLearning platforms.

ESTABLISHED TECHNOLOGY

This report also identified 36 established technology companies that are operating in the regions. Whilst these are outside the age range of the scope for this report, a number of these companies have developed industry leading software, have large established client bases and are important local employers. Harnessing the experience of these organisations is important for the development of the regional ecosystem.

REGIONAL SUMMARIES

This report was focused around seven Regional Queensland ecosystems. A summary for each participating region is given below, and a more detailed write up provided within this report.

ToowoombaToowoomba’s startup ecosystem has started to take shape, stemming from several community driven initiatives. Toowoomba is also home to a number of large established technology companies, particularly in the AgTech space.

IpswichIpswich is very much in the development stages of a startup ecosystem, but ambitious plans to launch a digital incubator will see real traction in this region in the not too distant future.

BundabergBundaberg has a very small pool of startups and an embryonic ecosystem. However, there are a number of large established technology companies that add weight to the region’s technology output.

RockhamptonRockhampton also has a very small pool of startups. Nevertheless, there are a number of large established technology companies operating in the region, particularly in digital rail technology.

MackayMackay has struggled to establish an ecosystem over the past few years, but a number of community driven initiatives are changing this situation. The city held its first Startup Weekend in October 2015.

TownsvilleTownsville contributes the largest proportion of GDP out of all seven regions mapped. The flagship company SafetyCulture is one of Australia’s fastest growing tech companies and lends weight to the fact that startups can be wildly successful in regional centres.

CairnsCairns was the surprise stand out in this report. Cairns, per capita, has a higher startup density than South East Queensland, with one startup for every 5,300 people.

COMPARATIVE BENCHMARKING

Comparing these regions with nine similar sized regional cities in the USA and Europe that have developed strong technology hubs, we found Regional Queensland has much lower startup formation rates than South East Queensland and is far behind comparable global tech hubs.

TALENT FLOW

The report contains a section on talent flow, as it was a consistent issue raised by all participants. We examine where regionally educated individuals are currently working in technology across the globe.

MEETUPS AND EVENTS

This report found that across Regional Queensland there was a minimal amount of relevant meetups proportional to the population. Some regions suffer from having no technology specific meetup at all, and the majority of others have been launched in the last 12 months. A lack of central collaboration spaces was seen as a key stumbling block to regular interaction, with only three regions having co-working spaces in operation or announced.

AGRICULTURAL TECH

The report identified that Agricultural Technology (AgTech) startups are beginning to emerge across Regional Queensland. All regions showed signs of innovation in AgTech. As this report explains, it seems only natural that Regional Queensland could serve as the epicenter for the development of an innovation ecosystem and entrepreneurial economy around the emerging Australian AgTech sector.

COMMUNITY INSIGHTS

Building, attracting, and retaining talent was seen as a critical factor across all regions. Retaining a critical mass of talent is paramount to the growth of any regional ecosystem. Other identified issues were a lack of networking and collaboration, access to co-working spaces, access to funding and raising awareness of the sector and startups in general.

CONCLUSION

The early stage technology sector in Regional Queensland is in its infancy with a few breakout successes that have managed to overcome regional isolation and sparse support. Nevertheless, the region has a promising level of engagement in some of the most innovative new technologies coming to market, such as autonomous vehicles, drones, advanced internet connected sensors and advanced robotics, for use in industrial and agricultural markets. Being located in rich agricultural land, startups can and are developing innovative solutions for a trillion-dollar market.

THE BOUNDLSS TEAM.

6

ABOUT

PROJECT AIMS

This project aims to benchmark and quantify the ecosystems around early stage high growth digital technology companies (referred to in this report as startups for short) across Regional Queensland. The report aims to measure Regional Queensland’s comparative strengths, and identify critical issues within each ecosystem. This project is the first of its kind in regional Australia.

SCOPE

This report maps the primary people (founders, angels and other participants), organisations (startups, venture capital firms, co-working spaces, incubators and government agencies), groups (angel and community groups) and events (awards, conferences, and programs) involved in or supporting early-stage technology startups across Regional Queensland.

For the purpose of this project, Regional Queensland (RQ) is defined as the following seven regions:• Cairns• Townsville• Mackay / Whitsunday• Central Queensland (Rockhampton and Gladstone)• Wide Bay Burnett (Bundaberg region)• Darling Downs (Toowoomba region)• Ipswich

The report only includes those companies and people that have made a tangible contribution to the development of regional high growth startups – whether that be through mentoring, sponsorship, investment, grants or space, etc. A separate report mapping the South East Queensland startup ecosystem was made publicly available in October 2014.

METHODOLOGY

The report was compiled in partnership with the Department of Science, Information Technology and Innovation (DSITI), Toowoomba Regional Council, Ipswich City Council, Bundaberg Regional Council, Rockhampton Regional Council, Mackay Regional Council, Townsville City Council and Cairns Regional Council.

Information was gathered through seven regional workshops with over 100 participants and from interviews with 35 people across the regions. Information on people, events and companies was also gathered using data from online platforms including LinkedIn, AngelList, ASSOB, CrunchBase, Gust, Twitter, Eventbrite, Kickstarter, Pozible and Meetup, and complemented with internet research.

Combining several data sources gives a more comprehensive view than one in which information is taken from any one individual source.

Tech CompaniesData that encapsulates both startups and established technology companies is referred to as digital technology companies, or Tech Companies for short.

Funding & InvestmentThe report captures information on the money raised by established technology companies and startups to fund company and product development. Startups secure funding in multiple ways: private investment, government grants, crowdfunding, public investment, prizes and loans. The report did not analyse money flowing out of the state into startups in other states or countries. When the report refers to Funding, Investment or Matched Funding it means:

Funding: the report means all types of funding including private investment, government grants, matched funding, crowdfunding, public investment, prizes and loans. This definition excludes the Tax Office’s R&D Tax Incentive.

Investment: the report means private or public equity investment in a company in exchange for shares in the company, including convertible notes, options and other financial tools for purchasing shares.

Matched-Funding: a large portion of startup funding in Queensland came from the Australian Government’s Commercialisation Australia (CA) grant program, established in 2009. By matched funding the report refers to the portion provided by the applicant, and the portion provided by the government is referred to as the government grant.

CurrenciesAll currencies used within this report are in $AUD unless otherwise stated.

STEM QualificationsFor the purpose of this analysis, Science, Technology, Engineering & Mathematics (STEM) qualifications refer to any non-school qualifications at the Postgraduate degree level, Master degree level, Graduate diploma and Graduate certificate level and Bachelor degree level in any of the following fields:• Natural & Physical Sciences, • Information Technology,• Engineering & Related Technologies,• Agriculture, Environmental & Related Studies, and• Mathematics.

However, no research project can claim to offer definitive, complete coverage. The digital sector is, quite simply, evolving too rapidly. Whilst all attempts have been made to be comprehensive, some critical people and organisations in this growing sector may have been missed.

DEFINITIONS

StartupsWhilst any type of early-stage business can be called a startup, for the purposes of this project the definition used by StartupAus, Google Australia and PwC Australia was adopted: a ‘startup’ is a company primarily focused on developing innovative digital technology and intellectual property (IP) with a high leverage on labour, an innovative scalable business model, capable of rapid growth, and under five and a half years in age.

DigitalThe project focused on companies that create value primarily around digital technologies such as developing software products or services, scalable hardware based products and services such as drones, sensors, autonomous vehicle technology, Internet of Things (IoT) technology, and robotics.

ExclusionsDigital technologies are being deployed across all industries and permeate all aspects of our society. The reality is that a large proportion of Australian businesses now have digital technology as a core component of their business. To clarify, this report excludes the following:

Consulting: The project excluded companies engaged with digital technology that have a high reliance on manual labour and produce little to no IP of their own, such as digital design studios, digital marketing, software development houses and computer consulting companies. Technology support, networking, and computer repair businesses were also excluded. Similarly excluded were any other organisations providing IP development as a service purely for other firms.

However, many companies build potentially scalable digital products (e.g. iPhone apps) alongside their consulting services, in which case they have been included.

Established Technology: the report excludes digital technology companies established prior to 2009 from the definition of a ‘startup’. However, in some cases the report mentions companies, investment figures or entity numbers for more mature digital technology companies. In these cases, the report refers to these as Established, Mature or Later stage digital technology companies.

7

CONTEXT

Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. 1- Tom Goodwin, SVP Strategy & Innovation, Havas Media

For Regional Queensland to grow a vibrant startup ecosystem it is essential to create an environment that is conducive to creating and retaining startups on local soil. Twenty to thirty years ago, almost all tech startups were created in startup ecosystems like Silicon Valley. Today, technology entrepreneurship is a global phenomenon, with startups rapidly emerging all around the world in both major cities and regional centres.2

The democratisation of entrepreneurship has created plentiful opportunity for any region with the right characteristics to create its own sustainable tech ecosystem.

Technology is no longer a vertical industry, as its been understood by everyone for four decades. Technology is now a horizontal, enabling force throughout the whole economy.3 - John Battelle

ECONOMIC GROWTH

There is no question that software is eating the world, as Marc Andreessen famously wrote.4 Software is now core to producing just about every good or service we consume. It’s embedded in almost every commercial process, and it’s shifting the balance of power in a range of industries.

Information era businesses have become the dominant source of economic growth, significantly automating or altering much of the industrial and service businesses of the previous economic era. In the USA, three technology companies (Apple, Facebook & Google) contribute $1.3T to GDP – higher than the value of the entire ASX. As the saying goes: “The future is already here, it’s just not evenly distributed.”5

By providing a baseline of data this report aims to play a role in the creation of more diversified, competitive and healthy regional economic bases that includes technology entrepreneurs.

At least in the United States, net job growth comes from startup companies, especially the kind that explode from a few employees to several thousand. In technology, those winners have a way of producing more winners. The process reaches critical mass in the web of intertwined companies, resources, advantages, ideas, talent, opportunity, and serendipity that defines a technology cluster.6 Antonio Regalado, MIT

ECONOMIC IMPACT OF TECH

The economic contribution of the internet and digital technologies can be difficult to estimate, particularly given the changes generated by digital disruption within Australian businesses across a variety of industries. In Deloitte’s report The

Connected Continent II: How digital technology is transforming the Australian economy (2015), the digital economy in Australia was estimated to have contributed $78.8 billion to GDP in 2013–14, representing 5.1% of total Australian GDP.7

In our previous report we estimated that the economic impact of digital technology on Queensland’s economy in 2025 would be in the order of $96 billion per annum or roughly 24% of the state’s projected $396 billion economy.

According to IBIS World’s white-paper, A Snapshot of Australia’s Digital Future to 2050, 15 different industry sub-sectors face extinction due to factors such as size, international competitiveness, the potential for displacement, and technology.8

For example, within Australia, Uber has created thousands of low-paying jobs for drivers, whilst capturing 10% of the taxi market. In the USA, Uber has created over 300,000 jobs for drivers, plus thousands more high-value jobs, and a company worth $USD 50 billion which will in time spawn hundreds of new startup founders and investors.

Netflix officially launched its Australian service in March 2015, and is seen as the leader in the streaming category, with an estimated 40% market share. Curiously, Netflix is building its presence in Australia with no local employees and is paying no tax.

REGIONAL GROWTH

Looking back over Regional Queensland’s past, the vast majority of regional growth strategies have focused on attracting established companies looking to expand or open new premises. While it is certainly important for regions to attract established businesses, those deals typically create a small finite number of jobs.

What isn’t evident in most regional growth strategies is the organic growth of an entrepreneurial tech cluster. However, sowing the seeds of entrepreneurship can lead to a more rapid and sustainable job growth strategy for the region.

For example, in Queensland it is estimated that approximately 88% of the 90,000 jobs in agriculture are regionally based. These jobs and the economic contribution they provide are the backbone of many rural and regional communities in Queensland. One in seven Queenslanders are either partially or entirely supported by the Agriculture sector.

AGTECH

Globally, agriculture is in the middle of a digital revolution. The benefits of converging the digital and physical worlds are too valuable to ignore for Regional Queensland. Its proximity to the rapidly expanding Asian middle class offers a startling opportunity for the region to develop a local industry around the emerging global AgTech market.

CLUSTERS

A regional technology cluster represents a geographic concentration of interconnected companies and institutions in a particular field.

Vibrant industry clusters and ecosystems are critical for increasing the productivity of companies, driving innovation, stimulating new business creation and breeding scalable high- growth companies.

The factors that contribute to a flourishing technology ecosystem have been well defined by researchers, policy makers and entrepreneurs: An entrepreneurial culture with a large number of active participants; mentoring from experienced entrepreneurs; a supportive regulatory environment; a culture of collaboration and networking; a steady flow of local university talent; visible successes and role models; risk tolerance; easy access to capital; government policy with a long-term focus; and access to good technical skills.9

Many of these factors are cultural, rather than structural, and in many ways a strong culture comes prior to structural changes (e.g. greater access to capital or supportive regulation). According to PwC’s The Startup Economy:

“Culture is the key to accelerating the growth of a tech community. In the 1970s the tech communities of Silicon Valley and the area around MIT... were similar in size. But by the 1990s Silicon Valley was dominant. The accepted explanation for the difference in growth rates is the open and collaborative culture of the Valley. This same culture is what is driving growth in both Boulder Colorado and Israel.” 10

While it hasn’t yet been proven if a thriving ecosystem improves the success rates of each startup individually, it does act as a giant factory, producing large numbers of startups. Produce enough startups and in principle, many of them are likely to be successful. Several of them even wildly successful.11

Clusters also directly support new business formation. Porter argues that working in a cluster allows individuals to more easily identify gaps in the current market offerings, enables efficient access to talent, institutions, partners, etc., and a home-grown exit market (i.e. established members of the cluster are the likely acquirer).12

Regional tech clusters can impact the trajectory of growth in the region and:• Slow and even reverse migration of tech talent out of the region/state;• Grow successful local tech companies to become primary job creators;• Recycle the wealth that is created by re- investing in the region, versus transferring wealth to major cities; and• Help local successful entrepreneurial and technical talent stay local.

8

THIS REPORT ESTIMATES THE POTENTIAL ECONOMIC IMPACT OF DISRUPTIVE DIGITAL TECHNOLOGIES ON REGIONAL QUEENSLAND’S ECONOMY IN 2025 COULD BE OVER ~$34 BILLION PER ANNUM, APPROXIMATELY 25% OF GROSS REGIONAL PRODUCT.

FUND FLOW

The report’s funding data covers the January 2010 to July 2015 period and includes all digital technology companies in RQ with publicly available information. It includes both investments and government grants (where no equity was exchanged).

This report identified 12 digital technology companies that secured funding, raising a total of $10.4 million, which gives an average of $2.1 million per year, or $1.15 per capita.

SafetyCulture (Townsville) alone contributed more than 55% of the total funding raised in RQ.

Funding levels within RQ are well below the norms across Australia for startup investment - between $4 to $6 per capita per year. Furthermore, they are critically below global startup investment rates which range between $30 to over $3,000 per capita per year.

While only 14% of startups in Regional Queensland raised money, the remaining 71 startups will have required bootstrapped investment. We estimate that roughly $20 million in bootstrapped investment has been provided by founders, family and friends to get these remaining startups up and running - based on an average investment of $250,000 per startup. The actual figure is most probably higher than stated.

When examining the major sources of funding, government funding comes out as one of the largest. Government funding is almost entirely made up of funding from the now defunct Commercialisation Australia (CA) program, ~$3.5 million or 33% of total funding, which attracted matched funding of $2.2 million (21% of all funding) from angels and VCs. It is noteworthy how effective CA was in attracting capital into the sector. The second largest funding source is individual angels - $2.4 million or 23% of all funding.

ilab, an accelerator, has funded four regional startups to participate in its germinate accelerator program. Whilst the dollar amounts are low ($80,000), they provide an important service in incubation and exposure to further capital.

The Advance Queensland13 announcements in July 2015 were warmly received by regional startup participants. With $76 million aimed at encouraging a new wave of startups, supporting proof-of-concept projects, and attracting co-investment through the Business Development Fund, it is promising to see $24 million directly earmarked for Startup Queensland, to directly increase startup formation and attraction.

ORGANISATION SafetyCultureJobFit Systems Intl JESI Management MandraITCatchLog Trading Trinity Software Strictly Service Business Ready Tool Why Not ToursShed ProjectAM ShelfieDynamic ConversationsTOTAL RAISED

YEARS2013, 201420122013, 2015 2012201120122013, 2014 20122014201520152015

FUNDING SOURCECA, Blackbird, Angels CA, UnknownCA, UnknownCA, UnknownCA, Unknown CA. Unknown Not disclosed CA, Unknown ilabilab ilab ilab

REGION AMOUNT RAISEDTownsville $5,700,000 Mackay $900,000 Townsville $900,000 Calliope $830,080 Cairns $745,198 Cairns $601,000 Mackay $500,000 Townsville $100,000 Cairns $20,000 Toowoomba $20,000 Townsville $20,000Cairns $20,000 $10,356,278

TOTAL FUNDING RAISED – ALL TECH

$10.4MBased on total funding raised over five and a half years in Regional Queensland.

FUNDING PER CAPITA – ALL TECH

$1.15Average fund pool per year divided by Regional Queensland’s population.

TOTAL RAISED BY YEAR

2011 2012 2013 2014 2015

$74

5,19

8

$2,

431,

080

$4,

200,

000

$2,

420,

000

$56

0,00

0

$3.8M

$3.5M

$1.9M

$1.6M

$80K

TOTAL FUNDING BY LEAD FUND TYPE

Venture Capital

Government Fund (CA)*

Angel Group

Unkown (Matched Funding)

Accelearator

$69M

$45M

$6.7M

$5.3M

$1.4M

$1.4M

$83K

$20K

$0

$0

$0

TOTAL FUNDING BY REGION

Gold Coast

Brisbane

Townsville

Sunshine Coast

Mackay

Cairns

Other QLD Region

Toowoomba

Ipswich

Bundaberg

Rockhampton

VENTURE CAPITAL PER CAPITA 14 15 16

Silicon ValleyIsraelUSASwitzerlandNorwayMelbourne Cup BetsAustralian Bio-techSwedenFinlandDenmarkFranceBritain2012 Aus Olympic TeamIrelandNetherlandsBelgiumNew ZealandAustriaPerth (incl govt)South East QueenslandAustraliaSouth East Queensland (Excl Govt)Perth (excl Govt)Regional QueenslandRegional Queensland (Excl Govt)

$4,241$183$81$74$54$52$44$40$28$16$15$15$14$14$14$12$11$8$6$5$4$4$3

$1.2$0.8

10

UNLIKE RESOURCES, CREATIVITY IS NON-DEPLETABLE. NOR DOES IT DEGRADE THE ENVIRONMENT. IT THEREFORE UNLOCKS OPPORTUNITIES FOR SUSTAINABLE GROWTH.”

PARK GEUN-HYE, 2013 SOUTH KOREAN PRESIDENT

“

STARTUP ORGANISATIONSCOMPANIES

Startup companies founded after 2010, along with key support organisations based in Regional Queensland. (Multiple) indicates that the organisation operates across regional borders and in some cases companies are located outside Regional Queensland but have actively contributed to the development of the local ecosystem.

STARTUPS101 Business Group (productivity) (Rockhampton)2bit Studios (games) (Cairns)3D Industries (3D printing) (Toowoomba)A Few Extra Bucks (marketplace) (Bundaberg)AgriLabour (marketplace) (Toowoomba)Airmap3D (drones + GIS) (Mackay)AM Shelfie (3D printing) (Townsville)Stealth Startup (communication) (Ipswich)AUFO (drones + GIS) (Cairns)BajTech (3D printing) (Townsville)BetsWithFriends (mobile app) (Cairns)BitPlex (Productivity) (Rockhampton)Caked On (other) (Bundaberg)Carbon Link (hardware) (Rockhampton)CatchLog (infrastructure) (Cairns)Clinical Hub (infrastructure) (Ipswich)Comit Platforms (mobile app) (Townsville)Didgigo (content creation) (Cairns)DrinkTracker (mobile app) (Cairns)Droner (drones) (Cairns)Dynamic Conversations (education) (Cairns)Economy Saver (marketplace) (Gladstone)Eduhealth Plus (hardware) (Ipswich)EnviroSource (marketplace) (Rockhampton)Experimental Unicorns (marketplace) (Townsville)Farmacist (marketplace) (Mackay)Focuss (other) (Cairns)GamePlan (productivity) (Rockhampton)Gilmour Space Corp (infrastructure) (Bundaberg)Global Store Solutions (marketplace) (Toowoomba)HelloClaims (insurance) (Cairns)Hummingbird (drones) (Toowoomba)I Want that Course (marketplace) (Cairns)iAMConnected (collaboration) (Cairns)Inspection Apps (mobile app) (Cairns)InstaConnect (hardware) (Cairns)INTERACTin (communication) (Gladstone)Intritec (desktop app) (Bundaberg)JESI (location) (Townsville)Job Fit Systems (customer relationship) (Mackay)Kadence Group (collaboration) (Mackay)KixFit (mobile app) (Toowoomba)

Konveen (communication) (Cairns)MandraIT (hardware + web) (Calliope)Mogtastic (game) (Cairns)My Footy Boots (marketplace) (Cairns)My Water Filter (ecommerce) (Ipswich)NQ UAV (electronics) (Townsville)Nupath (education) (Cairns)OrbStudio (game) (Cairns)OTrain (education) (Toowoomba)Oz Apps (mobile app) (Townsville)PakYak (transportation) (Cairns)Precision Terrain Solutions (electronics) (Toowoomba)Procedures Online (content creation) (Mackay)QIT Plus (big data) (Mackay)Relocations2go (desktop app) (Cairns)Rent Resume (customer relationship) (Toowoomba)SafetyCulture (mobile app) (Townsville)Sakure (desktop app) (Cairns)Sales VA (marketplace) (Toowoomba)Sam the Waiter (other) (Cairns)Scripti (productivity) (Toowoomba)Second to none Nutrition (ecommerce) (Townsville)ShareStuff (marketplace) (Cairns)ShedProject (infrastructure) (Toowoomba)Site Specific Software Solutions (mobile app) (Toowoomba)Skydronics (drones) (Townsville)SmartHR Solutions (education) (Mackay)Snipe (productivity) (Cairns)Strictly Service (marketplace) (Mackay)Swarm Farm Robotics (robotics) (Rockhampton)TenderHound (collaboration) (Cairns)ThermaCulture (hardware) (Cairns)Thought Select (mobile app) (Cairns)Tourback (other) (Ipswich)UAView (drones) (Cairns)Upson Downs (drones) (Rockhampton)Voista (mobile app) (Cairns)Why Not Tours (recommendations) (Cairns)WotsLocal (marketplace) (Townsville)Wow Factor (video) (Townsville)XY Mapping (drones) (Fraser Coast)

OTHER TECHNOLOGY COMPANIES4TEL (big data) (Rockhampton)Acubis (infrastructure) (Mackay)AgData (analytics) (Toowoomba)AgTech Toowoomba (hardware) (Toowoomba)Almost Anything (software) (Rockhampton)Beeline Technologies (software) (Toowoomba)Best Practice Software (infrastructure) (Bundaberg)BigMate (infrastructure) (Mackay)BizSpark (Support) (Multiple)

Bold Hues (software) (Cairns)Circuit Wiz (hardware) (Mackay)Code Valley (other) (Townsville)Conetix Web Hosting (hosting) (Ipswich)D2K (other) (Bundaberg)DEC-MECH (infrastructure) (Townsville)DHM Software (software) (Toowoomba)Eden Tech (software) (Toowoomba)ESRI (big data) (Cairns)FarmscanAg (hardware) (Toowoomba)Fierce Ventures (software) (Townsville)Hortus (hardware) (Bundaberg)HoverCam (drones) (Cairns)IBM (software) (Townsville)Indigo Web (software) (Toowoomba)Insyte Solutions (software) (Rockhampton)IT Connexions (software) (Townsville)Koolivoo (content creation) (Cairns)LogiCamms (electronics) (Mackay)Microair (electronics) (Bundaberg)Minstaff Survey Pty Ltd (drones) (Toowoomba)NFA (infrastructure) (Townsville)Northrup Grummond (hardware) (Ipswich)Oper8 Springfield (software) (Ipswich)Phoenix (software) (Toowoomba)PiDataConsulting (software) (Cairns)Polaris Data Centre (hosting) (Ipswich)Precedence (software) (Cairns)Precision Agriculture (customer relationship) (Toowoomba)Rail Innovation Australia (big data) (Rockhampton)Real Time Instruments (hardware) (Mackay)ResPax (big data) (Cairns)Scan2Convert (productivity) (Bundaberg)Strategenics (big data) (Toowoomba)The Bullion Group (other) (Mackay)TOL Aerospace (aerospace) (Ipswich)tourstogo.com (software) (Cairns)WebTraf (hosting) (Bundaberg)

INCUBATION

BlueChilli (seed accelerator) (Sydney)ilab (seed accelerator) (Brisbane)QUT Creative Enterprise Australia (Incubation) (Brisbane)

FUNDING

Auswide Bank (bank) (Bundaberg)Blackbird Ventures (vc) (Sydney)Commercialisation Australia (Govt Grant) (Ipswich)Future Now (vc) (Townsville)Go fund me (crowdfunding) (Mackay)Iceberg Innovation (vc) (Cairns)Kickstarter (crowdfunding) (Multiple)NAB Business Banking (bank) (Bundaberg)

12

Pozible (crowdfunding) (Toowoomba)Sister City Partners (vc) (Townsville)Techfundr (crowdfunding) (Bundaberg)TNQ20 (award) (Cairns) CO-WORKING & HACKERSPACES

Canvas Co-Working (co-working) (Toowoomba)Hackerspace Toowoomba (Hackerspace) Hacking and Coding Club JCU (Hackerspace) (Cairns)Mackay Maker Space (Hackerspace) (Mackay)Firestation101 Digital Incubator (Ipswich)theSpace (co-working) (Cairns)

MEETUPS & EVENTSa

ACRV Robotics Seminar (event) (Mackay)AGRI Innovation Conference (event) (Mackay)Agriculture Futures Conference (event) (Mackay)Australian Computer Society (meetup) (Rockhampton)Bundaberg Business Expo (event)Bundaberg Digital Boardroom (meetup) Bundaberg Digital Enterprise Program (event) Cairns Startup & Entrepreneurs Meetup (meetup) CoCollaborate (event) (Mackay)Codeathon (event) (Townsville)CoderDojo (event) (Ipswich)Crypto Party (event) (Cairns)Digital Business Week (event) (Bundaberg)Digital World Futures (event) (Toowoomba)Dive into digital (event) (Cairns)Emerging Entrepreneurs (event) (Cairns)FunGIS (event) (Cairns)GovHack (event) (Ipswich)GovHack FNQ (event) (Cairns)ICT Network Meeting (meetup) (Rockhampton)Ideas after dark (event) (Cairns)ilab Regional Roadshow (event) (Mackay)Innovation Awards (event) (Cairns)Innovation Festival (event) (Rockhampton)Innovations Expo (event) (Townsville)Ipswich Digital Expo (event) (Ipswich)JCU Robo Club (meetup) (Townsville)Mackay IT Network (meetup) (Mackay)MakerSpace (event) (Ipswich)Meetup Mackay Maker Space (meetup) (Mackay)Meetup Mackay Start Up (meetup) (Mackay)Mentor Blaze (event) (Multiple)Moodle Meet (event) (Bundaberg)NQ IT Conference (event) (Townsville)Pitch night (meetup) (Cairns)

a Note many of these groups and events are not directly focused on startups, but rather support activities around digital technology. They are included as an indication of the level of interest in digital technology, and are often feeders to people taking the leap into joining or launching their own startup

Robocup (event) (Multiple)Robogals (event) (Multiple)Rowes Bay Sensory Sprint Day (Townsville)Silicon Beach Cairns (meetup) (Cairns)Silicon Coast Extracurricular Code School (event) (Bundaberg)Software Carpentry (event) (Cairns)Startup Apprentice (event) (Townsville)Startup Basecamp (event) (Cairns)Startup Ipswich Meetup (meetup) (Ipswich)Startup Lab (event) (Cairns)Startup Weekend (event) (Multiple)Tablelands Innovation Expo (event) (Cairns)TEDX Events (event) (Bundaberg)TEDX Rockhampton (event) (Rockhampton)Toowoomba IT Community Group (event) Toowoomba Startup Group (meetup) Townsville ICT Business Network (meetup) Townsville Linux Users Group (meetup) Townsville Smart City Collaborative Workshops (event)Townsville Startup Meetup (meetup) (Townsville)Tropical Innovation Forum (event) (Cairns)TSBE Events (event) (Toowoomba)Young ICT Explorers (event) (Townsville)Young Professionals Mackay (meetup) (Mackay)

EDUCATION & SUPPORT

1300WebPro (support) (Toowoomba)Aus. Industry (Govt) (Multiple)Biztopia (support) (Ipswich)Bundaberg Regional Council (Govt) (Bundaberg)Burnett Heads Business Group (support) (Bundaberg)Cairns Regional Council (Govt) (Cairns)Capricorn Enterprise (support) (Rockhampton)Capricorn ICT Network (support) (Rockhampton)Central Queensland University (University) (Multiple)ClubTT (support) (Cairns)Datazell Systems (Govt) (Rockhampton)Department of State Development (Govt) (Multiple)Digital Cairns (support) (Cairns)Department of Science, Information Technology, and Innovation (Govt) (Multiple)e-flux (support) (Bundaberg)Entrepreneurs Association (support) (Toowoomba)Fox & Buoy Marketing (support) (Mackay)Grains Research Development Centre (Govt) (Toowoomba)Green Valley Digital (support) (Bundaberg)Hurlock’s IP Group (support) (Townsville)iAssist (support) (Rockhampton)Inventions Pathways (support) (Townsville)Ipswich City Council (Govt) (Ipswich)James Cook University (University) (Multiple)

Mackay Creatives (support) (Mackay)Mackay Regional Council (Govt) (Mackay)Managed Solutions (support) (Ipswich)Micomm (support) (Rockhampton)NBN (support) (Multiple)Pioneer Valley Business Group (support) (Mackay)Queensland University of Technology (University) (Brisbane)Rail Manufacturing CRC (support) (Rockhampton)Regional Development Australia (Govt) (Multiple)Resource Industry Network (support) (Mackay)Roboclub JCU (education) (Cairns)Rockhampton Regional Council (Govt) (Rockhampton)Smart City College (education) (Bundaberg)Social Motion (support) (Mackay)Splash Ads (support) (Bundaberg)Startup Mackay (support) (Mackay)Startup Toowoomba (support) (Toowoomba)Startup Townsville (support) (Townsville)TAFE S.W. (education) (Toowoomba)TJ Micro (support) (Cairns)Toowoomba Regional Council (Govt) Townsville City Council (Govt) (Townsville)UniSA (University) (Adelaide)University of Queensland (Brisbane)UTAS (university) (Hobart)Wide Bay Kids Community Inc. (education) (Bundaberg)Wide Reach Social Media (support) (Bundaberg)

13

The map below shows an overview of all tech startups located in Regional Queensland. They have been positioned based on the latitude and longitude of their headquarters, and are sized by current staff level estimates owing to a lack of market cap data.

REGIONAL SHOWCASE

Cairns

Townsville

Mackay

Emerald

Toowoomba

Ipswich

Hervey Bay

Bundaberg

Gladstone

Rockhampton

Calliope

Staff Size

30-50

11-30

5-10

2-5

1

14

REGIONAL COMPARISONThe table below offers benchmarked summary statistics for each of the seven regions participating in this report.

REGION NO.STARTUPS

TOTAL FUNDING

POPULATION STARTUPDENSITYa

NO. ESTABLISHED

TECH

COWORKINGSPACES

TOTAL EMPLOYED IN

STARTUPS

Toowoomba

Ipswich

Bundaberg

Rockhampton

Mackay

Townsville

Cairns

Regional Queensland Summary*

12

5

4

7

8

12

31

83

6

6

6

2

6

4

6

36

$20K

$0

$0

$0

$1.4M

$6.7M

$1.4M

$10.4M

60+

20+

15+

15+

20+

80+

120+

~450

162K

190K

95K

85K

123K

190K

159K

1.8M

1/16K

1/38K

1/24K

1/12K

1/15K

1/16K

1/5K

1/20K

1

1b

-

-

-

-

1

3

*Number of Regional Queensland Startups is greater than the total of the seven regions (79) as we identified several startups just outside the regions. a Startup Density refers to the number of people per startup. Boulder, Colorado for example, has a Startup Density of 1 startup per 235 people.b The Ipswich Fire Station101 Digital Incubator was announced in November 2015 and is not yet open.

15

TOOWOOMBA

SALESVA Startup

SalesVA is a one-year-old productivity startup. They provide an online productivity tool that enables sales professionals to cut Customer Relationship Management (CRM) administration time, enabling sales teams to be more productive. A team of virtual CRM assistants handles the necessary administrative requirements, provide post appointment follow up assistance and send training podcasts following each appointment. SalesVA integrates with all major CRM packages.

OTRAINStartup

oTrain is a four-year-old online training startup. They provide the infrastructure and backend support to enable people to build and create and maintain an online training presence. With five products, 10 staff and a growing global client list, oTrain is on track to disrupt global training.

Toowoomba startups [white], established tech companies [yellow] and related companies [pink], along with their founders and employees [red]. Links show professional relationships via Linkedin.

AgData Australia

Minstaff Survey

Strategenics


Andreas Bollinger

viana provoft

Timothy Duffield

Francis Gacenga

Shane Aldridge

Alison Bengough

Faeka El Sayed

Gavin Henningsen

Brendan McCann

Ben Blanch

Joan Callan

Jazzmin Donald

Brendan SkermanMichael Peterson

Mark Rohde

Lance Skerman

Geoff Tyrrell

Nathan Ashton

Annie McKeiver

Grace Halligan

Mike Wagstaff

Lincoln Hahn

Lucas Flumm

Heidi Dargusch

Simon DennisDave Lewis

Carl Baxter

Nick Darvey

Liam Dawson

Jacinta Crothers

Pawel Pohorski

Toby O'Brien

Nathan Ashton

John Bowden

Kerrie-Lyn Rae

Matt Williams

Jake Laing

Ezzy Haensch

Sam Faulkner

Laura Fealy

Emma Monro

Natasha Wells

Noel Kelly

Mark Jocumsen

Leanne Griffin

Stephen Dummett

William McHugh

Leanne Griffin Engagement

Multicultural Development Association

Procare

Science Foundation Ireland

Department of Communities, Child Safety and Disability Services (Qld)

Startup Weekend"Steel Sheds in Australia"

online magazine

Australian Steel Institute

Shed Products Direct

Kempsey Sheds and Carports

JTA Australia

Startup Toowoomba

Cirrosonic

Noel KellyCGI Australia

Lush Hair and Beauty

The VTS IT Group

BSI Learning

Parnngurr Aboriginal

Corporation

Genesis Entertainment

ToowoombaFleet Direct

Len Patti Motors

Toowoomba Holden

Armstrong Auto Group

Wagstaff Group

Canvas Co-Working

Bank of Queensland

Hudson

Thiess

LKA Consulting

Bechtel Corporation

Xstrata Zinc

CBH Resources

FKG Civil Contractors

Kagara Limited

Evolution Mining

Goldfields3D Mine

Surveying International

AngloGold Ashanti

Anglo American



Smorgon Steel

PricewaterhouseCoopers

Accenture

Officeworks

Amber Group

Coopers & Lybrand

Toowoomba Regional Council

Grand Domain

Education Queensland

FarmscanAG

Ajilon

Thales

Temando

Department of Agriculture and Fisheries (Queensland)

Insight Informatics

OGroup Mgmt

OStaff CPE Rural

Working Holidays Down Under

Diamond Recruitment

Outsource Personnel

Civica Limited

Long Shadows

Cascade Australia

Contract Software Development

Ambush Security Services

Gen3Media

Pratical Computer Services

Golf Computer Systems

Auran Start

Brisbane City Council

Tri-Soft

Christian Outreach College Toowoomba

The Pipeline Authority

Grundys Agtronics

Strategic AirlinesEasternwell Group

Rabobank

NTT DATA Business Solutions

Murray Grey Beef Cattle Society Ltd

RollCall GlobalIT Works


Unisys Australia

Migration

Royal SundayInternational AG,

Switzerland

solve gmbh, Switzerland

Queensland Health


Genesis Investments Group

National Australia Bank

DEEDI



Redjet Aviation

Newlands Civil Construction

OAQ Group

Austrek Air Charter


Sales VA

Shedproject


Otrain

Kix Fit


Robert Gilmour

Hummingbird

Scripti


Rent Resume

Shane Ridley

Casey Brown

Brown Managing

Emma Monro

Stuart Pocknee

Mark Venz

Greg Skerman

Barry Knights

Joy Taylor

David Masefield

James Deck

Andrew Whitlock

Tim Neale

Peta Neale

Chris Mills

Greg Stamper

Darren Smith

16

TOOWOOMBA

TECH ECOSYSTEM SUMMARY

As Queensland’s largest inland city, Toowoomba is the hub of the fertile Darling Downs region that has resulted in a city with extensive manufacturing, education, health, retail and professional services. Toowoomba offers easy access to Brisbane and the Gold and Sunshine Coasts. The recent opening of the Brisbane West Wellcamp Airport is the first major greenfield public airport development in Australia since Melbourne Airport opened in 1970. It is also the only privately funded major airport in the country.

Still in its relative tech ecosystem infancy, a number of grass roots community driven activities have boosted community engagement and participation throughout the startup ecosystem. With the Canvas co-working space opening in August 2015, a local Hackerspace opened in 2013, having held the first Startup Weekend in 2014, GovHack program, and the regular Startup Toowoomba organised tech specific meetups, the outlook is bright if current initiatives are maintained and supported by all members of the tech community.

Toowoomba has the added benefit of having the headquarters of the University of Southern Queensland, resulting in strong STEM talent flow into the region. Its relative proximity to Brisbane was identified as a core enabler for future growth.

It is estimated that the 12 startups operating out of Toowoomba were employing 60+ people. A selection of notable persons identified are as follows; David Masefield (Founder, Co-Working, Meetup), Leanne Griffin (meetup), Shane Ridley (Founder), Chris Mills (Established Tech Founder), Emma Monro (Founder), Joy Taylor (Co-Working), Tim Neale (Established Tech Founder) and Natasha Wells (Founder).

Established technology companies and supporting entities that play an important role in the Toowoomba ecosystem include; Precision Agriculture (AgTech), Strategenics (Big Data), ilab (Incubator), FarmscanAg (AgTech), and AgData (Australia’s largest agricultural software company). Harnessing the experience of these established organisations to grow and expand the ecosystem is a natural path. Developing a strong agricultural base is also a natural path for Toowoomba to develop regional expertise.

The following technology related events and meetups were identified, and are presented according to their importance to the ecosystem: Toowoomba Startup Group Open, Toowoomba Startup Group Meetup, Startup Weekend GovHack and AgWorld.

ISSUES AND ACTIONS

Toowoomba participants clearly identified that the lack of consistency with the National Broadband Network (NBN) was a major inhibitor to growth with sporadic rollout missing key sectors of the region. The lack of an established Angel network in the region meant founders had to look to Brisbane for funding. Participants also identified issues with attracting talent to move.

3D Industries (3D Printing)

AgriLabour (marketplace)

Global Store Solutions (marketplace)

Hummingbird (drones)

KixFit (mobile app)

oTrain (education)

STARTUPS

12POPULATION

162K3.4% of Queensland57

GROSS REGIONAL PRODUCT

$8.1B2.8% of Queensland50

TOTAL FUNDING

$20K0.2% of Regional Queensland

Agriculture Education & Training Construction Manufacturing Information Media Other

STARTUPS BY MARKET FOCUS:TOP 5 MARKETS

Precision Terrain Solutions (AgTech)

Rent Resume (rental)

SalesVA (productivity)

Scripti (education)

ShedProject (marketplace)

Site Specific Software Solutions (mobile app)

Collaboration & Networking

Infrastructure

Funding

Raise Awareness

Education

Hub / Coworking Space


Govt Incentive - Accelerators

Highlight Success Stories

Education Program

31%

31%

13%

13%

13%

38%

19%

19%

13%

6%

ISSUES TOP 5

ACTIONS TOP 5

17

FIRESTATION101 DIGITAL INCUBATORIncubator

To provide a platform for the future, Ipswich City Council (ICC) is delivering Australia’s first fully funded start-up incubator and accelerator. ICC is currently building the FireStation101 venue in the Ipswich CBD and has started engaging the start-up community in preparation for a March 2016 launch. The hub is seen as the key step in the digital transformation of Ipswich & the Western Corridor, and aims to catalyse the formation of tech startups in Ipswich and assist with the development of a robust local ecoystem.

EDUHEALTH PLUSStartup

EduHealth Plus is a for-profit social enterprise that is dedicated to delivering innovative evidence-based preventative health interventions and better solutions to social problems and unmet community needs. EduHealth Plus released the worlds first nutrition pedometer in spring of 2015 and has secured a pending patent for the hardware.

IPSWICHIpswich startups [yellow], established tech companies [white], and related companies [pink], along with their founders and employees [blue]. Links show professional relationships via Linkedin.

Andrew Whannell

Matthew Schultz

Tim Butler

Paul Wyatt

Lisa New

David McCallum

Rodney Archdall

David C. Wajsgras

Taylor W. Lawrence

Chris Jenkins

Peta Ellis

Jamin Andrews

Paul Pisasale

Anna Daniel

Ian Irving

Northrup Grummond

Thales

Raytheon

Conetix Web Hosting

Polaris Data Centre


Australian Army

NextEd

CurvyDames


Supercell Media

Hawaiki of Oceania


River City Labs


ClinicalHub

My Water Filter

Tourback

Eduhealth Plus

18

IPSWICH


Ipswich is one of the fastest growing cities in Australia, with population growth rates (23% since 2007) outpacing the majority of Queensland. Recently Ipswich was named as one of the Top 7 most intelligent global communities for 2015 by the Intelligent Community Forum (ICF) in New York17, in part due to its digital training programs in the community and its acceleration of the NBN rollout.

However, the startup ecosystem in Ipswich is still at its very beginning, with a number of initiatives recently announced seeking to change this situation. Ambitious plans to build a new Digital Incubator modelled on the well known Chicago entrepreneurial hub 1871, have recently been announced with strong industry and government support. Proactive support from the Ipswich City Council in facilitating this project represents a bold move to claim a piece of Queensland’s digital future.

While Ipswich is well connected to Brisbane, the local university’s strong and growing reputation in technology needs to translate into attracting established talent to stay in the region. Masterplanned communities like Springfield Lakes have been ambitiously designed to facilitate the capture of young technologically savvy individuals to the region. An established technology base of aerospace companies offers distinct possibilities, yet no aerospace startups were identified in our research. This is possibly due to the relationships required to engage with the Department of Defence (RAAF Amberley). Harnessing this local source of talent is a vital opportunity for Ipswich to develop a robust tech ecosystem.

It is estimated that Startups operating out of

Ipswich were employing over 20 people in total. A selection of notable persons identified in a centrality ranking are as follows; Matthew Schultz (Local Govt), Paul Pisasale (Mayor), Peta Ellis (meetup), Anna Daniels (Founder), David McCallum (Founder), Andrew Whannell (Founder), Simon Victory (Founder) and Jamin Andrews (Founder).

Ipswich has a lack of tech related meetups, with its proximity to Brisbane being both a help and a hindrance in the matter. Despite still being in its infancy, the Startup Ipswich Meetup group already has more than 45 members. For future growth it is important to leverage this and continue to support and facilitate its continuation.

It is noted that Ipswich’s close proximity to Brisbane may influence the data collected, as there is evidence of Ipswich residents who are founders or involved in startups based in Brisbane and other parts of South East Queensland.

Supporting entities that play an important role in the Ipswich ecosystem include; Polaris Data Centre, Conetix Web Hosting, Ipswich City Council and University of Southern Queensland (USQ). USQ campuses in Ipswich and Springfield provide a large flow of talent into the region. Harnessing this and convincing talent to stay and found companies was viewed as a major issue facing the growth of the local ecosystem.

ISSUES AND ACTIONS

Ipswich participants identified that attracting and retaining local STEM talent was a priority issue hampering the ecosystem owing to the proximity to Brisbane. A lack of clear pathways for local startup funding was evident. The lack of local mentors in the area for tech startups was also seen as an inhibiting factor.

Clinical Hub (health app)

EduHealth+ (wearable + big data)

MyWaterFilter (marketplace)

Tourback (unknown)

1 x Stealth Startup (not disclosed)

STARTUPS

5POPULATION




TOTAL FUNDING

$0K0% of Regional Queensland

Talent & Skills


Funding

Raise Awareness

Infrastructure


Education Program

Govt Provide Supportive Role

Local Angel / VC Group

Brand / Culture

33%

19%

19%

14%

5%

33%

24%

14%

10%

10%

ISSUES TOP 5

ACTIONS TOP 5


Health Care Communication Retail Trade Entertainment

The opening of the Ipswich Fire Station101 digital incubator was viewed as vital to the establishment of the ecosystem that would assist with networking, funding, collaboration and identification. The continuation of Ipswich’s community education programs was also seen to help boost talent inflow to the region and start to increase the rate of entrepreneurship in the area.

19

INTRITEC Startup

Intritec is a software development company that has been providing customised filemaker solutions for businesses for 5 years. Intritec has developed a number of flagship products such as Packit, a customised management system for large fruit and vegetable processing factories and TrackEd, an application built specifically for schools to help collate and track student progress and provide software to help schools make use of big data. Intritec specialises in innovative systems that bridge the divide between traditional logistical problems and modern mobile based solutions.

BEST PRACTICE SOFTWAREEstablished Technology Company

Best Practice Software is an established technology company employing over 85 people with 50 staff at its headquarters in Bundaberg, and other staff located in Sydney, Brisbane and Hamilton (NZ). It develops, markets and supports quality software products for Australasian medical practices.

Bp Clinical is an SQL application that is designed to improve efficiencies within the medical practice. Bp Management is a billing and appointment book module that syncs with the Clinical software application. Bp SMS automates doctors appointment reminders.

BUNDABERG

Bundaberg startups [pink], established tech companies [light blue], and related companies [red], along with their founders and employees [blue]. Links show professional relationships via Linkedin.

Scan2ConvertWebTraf

Microair

Hortus


D2K

Chris Batchler

Alexander Dooley

Kate McCloskey

Clint Lester

Cameron Ellacott

Dale Foster

Dr. Melinda McHenry

Joshua Hicks

Jamie Zapp

Rebecca Doe

Anthony Dove

Tammy Street

Kevin Rasmussen

Tiran Irani

Sharon Tolley

Val Burbano

Jeanette Nock

Nur Dean

Brittany Duncan

Paul Fox

Jordan Maultby

John Russell

Matthew Whitehead

Bradley Thomas

Tony Pisani

William Durnford

Mark Briggs

Brendan MacphersonEddy Dunn

Steven Greenslade

Mitchell Grotherr

David Finnish

Shane Hannant

Simon de Bomford

Rhonda Whiteside

Daniel Reeves

Benjamin Taylor

A Few Extra Bucks

Caked On

Gilmour Space Corp

Intritec

Craig Hodges

Adam Gilmour

James Gilmour

David Withers

Yale Morgan

Frank Pyefinch

Lorraine Pyefinch

Phil Baker

Jeffrey Smidt

John McLean

Phil Ainsworth

Matthew Drane

Jay Daniells

Neil McPhillips

Jack Milbank

Bundaberg Region Rising Foundation

Business Bundaberg

iTEL Community TelcoCity of Ipswich


Engineers Australia

Faculty of Engineering and Surveying, USQ

Australian Centre for Sustainable Catchments, USQ

Salmat

Aeon IT

Stanzah ITSP Exports

Conrad Jupiters

Divi Resorts

SynerGeTech

Buzz Broadband

Engineers Without Borders Australia

Australian Digital Futures Institute, USQ

GHD

e-flux

Pyefinch Software..

Bank of Queensland

Century Yuasa Batteries

The BPA Group

Hewlett Packard

Data#3

FNQ Security

Synerty

HCN - (Health Communication Network)

O'Neil Software

Riverina Stockfeeds

Unisys Australia

ManpowerGroup

St Luke's Anglican School

Wide Bay Australia

Burnett Shire Council

EDS Australia

Suncorp

Telstra Business Center

Bundaberg Regional CouncilPhibak Versatiles

Webtraf..

Gymfinity Gymnastics

Shalom College

Wide Bay Volunteers

Friendly Society Private Hospital

IVF Bundaberg

SP Exports

QI Limited Innov8


Wiley-VCH

University of Erlangen

National Centre for Rural Greenhouse Gas Research

University of New England

New England Weeds Authority

Deep Woods Estate

AHA Viticulture

QBuild Burnett Office

Bundaberg South Early Learning Centre


Hybrid Synergy Production Systems

Saipem

Villarica

Global Fresh Connect

Nuffield Farming Scholarships Trust

Growcom

CropTech

amajuba



Diggy

Pro-Cam Post

The Reporter

Michael O'Brien Catering

Architectural Models

Greenwood Signs

Gunther Village


Jay Daniells Web

Microair Avionics

Jabiru

20

BUNDABERG

TECH ECOSYSTEM SUMMARYBundaberg is situated approximately four hours drive or a 45-minute flight north of Brisbane. Major industry clusters include healthcare, agriculture, construction and manufacturing, along with major campuses of Central Queensland University and Institute of Technical and Further Education (TAFE). The city’s population is approximately 100,000 people.

The Bundaberg startup ecosystem is at an embryonic stage. As of July 2015, there are no startup specific meetups. Previous efforts to launch a Bundaberg technology expo were merged to a wider business expo in light of low demand. The Bundaberg Digital Boardroom, and supporting “Switched on Bundaberg” initiative, provide a forum for businesses to highlight the importance of high quality broadband access and promoting digital productivity throughout the region. Bundaberg Regional Council has also been proactive in driving digital engagement and in hosting numerous technology related events and forums.

These initiatives have not had a particular focus on promoting the regional startup culture, and there is currently no central space available for startups to co-work, network and collaborate.

Of pressing concern is that of Central Queensland University closing its ICT course in Bundaberg. Research suggests that almost every successful tech cluster has a local technical university to organically generate and retain talent within the region.18 It is extremely difficult to import enough talent to fuel a rapidly growing tech cluster. It is estimated that the 4 startups operating out of Bundaberg were employing 15+ people. A selection of notable persons identified in a

centrality ranking are as follows; Phil Baker (Founder), Andrew Beckenhauer (Local Govt), Matthew Drane (Founder), Jack Millbank (Established AgTech), Frank Pyefinch (Established Founder), Ann Moffat (Education), and Ben Taylor (Education).

There is a strong base of established technology companies operating out of the Bundaberg region.

Best Practice Software, founded by Frank Pyefinch is one of Australia’s largest medical software organisations with over 50 employees alone in Bundaberg. Hortus, founded by Jack Millbank, is an innovative AgTech company employing over 25 people in the region. Matthew Drane is an accomplished serial entrepreneur, and his businesses in the technology industry based in Bundaberg have created an estimated 100+ jobs.

Other supporting entities include Wide Bay Volunteers (Education), Bundaberg Regional Council (Local Govt), AusIndustry (Federal Govt), WebTraf (Software), and Central Queensland University.

ISSUES & ACTIONS

Bundaberg participants identified that raising awareness of technology startups was a critical factor to increase participation in the startup sector. It was perceived that a lack of understanding of technology in the region was driving talent away. The low number of students studying technology related subjects in the region, combined with the pull of mature startup ecosystems in major cities, presents a challenge for retaining regional talent. Participants identified the lack of local STEM talent as a critical issue preventing the establishment of a

A Few Extra Bucks (marketplace)

Caked On (marketplace)

Gilmour Space Corp (aerospace)

Intritec (software)

STARTUPS

4POPULATION




TOTAL FUNDING


Raise Awareness

Education

Infrastructure

Funding

Talent & Skills

Govt Incentive - Infrastructure

Education Program


Form Leadership Group


22%

20%

18%

18%

12%

24%

13%

13%

11%

11%

ISSUES TOP 5

ACTIONS TOP 5

STARTUPS BY MARKET FOCUS: TOP 4 MARKETS

Agriculture Accommodation & Food Transport Education

strong startup ecosystem. Poor NBN coverage was also impacting the speed of uptake of new technology and therefore turning potential entrepreneurs away.

Participants suggested that highlighting the success stories of established tech companies, in conjunction with a collaborative, entrepreneurial culture, would drive significant interest in the region and the startup sector. A central resource for funding options for tech companies was seen as a quick win that would bring immediate value.

21

ROCKHAMPTON

SWARMFARM ROBOTICSStartup

Innovative grain and cattle farmer Andrew Bate is passionate about developing robotic farming technology that ensures future generations of farmers have a vibrant, economic, and sustainable future in the cropping industry. Mr. Bate’s AgBot19 development company, SwarmFarm Robotics has partnered with the Queensland University of Technology and the University of Sydney’s Australian Centre for Field Robotics to develop swarms of agbots conducting plant and soil maintenance and improvement tasks such as bug and weed removal, at any hour of the day or night and in any weather conditions.

CARBON LINKStartup

Carbon Link enables farmers to put carbon on their bottom line and improve sustainability. Carbon Link has completed the first large scale accurate measurement of soil carbon in the world, down to one metre. This Internet of Things sensor technology is 100 times more accurate than conventional methods. Carbon Link is a leader in carbon farming markets providing; sensor technology to measure carbon stocks; training and guidance to implement practices that restore the landscape and store carbon; and support with implementing carbon trading.

Rockhampton startups and thier founders [yellow], established tech companies [white], and related companies [blue], along with their founders and employees [red]. Links show relationships via Linkedin.

QAL

C.T. Harris and Company

Harris Financial Planning

Oaky North

University of Agricultural Science, Bangalore, India

CRC for Rail Innovation

QR

CQ Region DETE

Department Education and Training Queensland

YouthInvest

Australian Institute for Commercialisation Department of Employment, Economic Development and Innovation

Agrifood Skills International Fellowship

St Ursula's College

Department of Primary Industries & Fisheries

St Ursula's College

Queensland Police Service

ABB Industry

Farmers Centre


Joyful Communications

Generate PR

APN News & Media

exceler8

Stage & Audio

WIN Corporation

Curtin University of Technology



Colin Greensill and Associates

EDS

Defence Science and Technology Organisation

Chemarkets Limited

CQ TAFE

Department of Education and Training

Kerr Solutions

I-view

CQUniversity English Language Centre

Pointon and Howard Racing

Flomat Pty Ltd

Atlas Copco

YourTutor

ETSA Utilities

CQ University

Australasia ScalesFiji Sugar Corporation Ltd

AFL Capricornia Umpires Association

Androgogic PeopleSoft Wiki

Lincoln University New Zealand

Royal Melbourne Institute of Technology

University of the Sunshine Coast

Mango 4 Office TechnologyEducation Queensland

NSW Department of Education and Communities

HeartKids QLD

Swanwick Murray Roche

Ian Weigh Toyota

Canonical

HUMBUG

Canonical Ltd.

Linux.conf.au 2002

Debian

Qld Chapter of SAGE-AU

Plugged In Software

Queensland Ambulance Service

Stanwell Corporation Limited

BHP Australia Coal


Coles

Proposal Catalyst

Ecosure

Resource Consulting Services

WR Grace

BMA

Queensland Investment CorporationIT Consultancy

GamePlan

Flexco

MineSched Software International

Gemcom Software International

Queensland University of Technology

North Rockhampton State High School

Consulting One

CQ University

Data#3

Rockhampton Regional Council

Centre for Railway Engineering

SPARQ Solutions

Ergon Energy



CSIRO

IBM

Insyte Solutions

iAssist

Katherine ChristopherRonald Kumar

Jason Cooper

Peter Milani

Tanya SpenceJason Iassist-

Sam Beahan

Callan Kucharski

Mark Clifford

Tammy Knobel

Katrina Mitchener

Matthew Bright

Jordan Brown

Peter Pledger

Derel Wust

Chris Bosomworth

Colin Cole

Chris Harris

Prue Howard

Fiona Marshall

Davina Roberts

Bruce Young

Craig Stewart

Simon Attwell

Praj Basnet

Nanjappa Ashwath

Colleen Cooling

Mackenzie Hansler

Cindy Van De Wetering

Brad Marshall

Dave Swain

Kylie Radel PhD

Colin Greensill

Helen Newell

David Patterson

Gerard Ilott

Jeni Richardson

Peter Vanheck

Cindy WittmannIan Devenish

Peter WolfsSarah-Joy Pierce

Kieren Jamieson

BitPlex

Carbon Link

SwarmFarm Robotics


EnviroSource

101 Business Group

Vince O'Rourke

Andrew Bate

Mick Scott

Terry McCosker

Phil Martin

Roy Pidgeon

Christine Bell

Richard ChappellJason Spence


Dialog

4tel

22

ROCKHAMPTON


Rockhampton hosts a significant number of government, community and major business administrative offices for Central Queensland. Rockhampton is often referred to as the beef capital of Australia. Rockhampton has the added benefit of having the headquarters of the Central Queensland University (CQU), resulting in strong STEM talent flow into the region. The CQU School of Engineering and Technology has over 90 staff and nearly 1,000 students currently enrolled.

The Rockhampton Startup ecosystem is at an embryonic stage. As of July 2015 there are no startup specific meetups. A wider ICT group does have informal meetings, but this lacks a startup specific focus. Rockhampton has a small but dispersed group of tech startups, with little interaction between them. There is no central space available to co-work, network and collaborate however the local council has established an innovative library space that can be further utilised.

There is a small network of angel investors with an interest to invest in local tech talent, but they lack the formal structure to facilitate this. They also raised the issue of not enough dealflow to warrant local investment. It is estimated that the 7 startups operating out of Rockhampton were employing 15+ people. A selection of notable persons identified in a centrality ranking are as follows; Terry McCosker (Founder), Derel Wurst (Established Founder) Andrew Bate (Founder), Richard Chappell (Founder), Mick Scott (Founder), Chris Harris (angel), Jason Foss (Support) and Christine Bell (Founder).

There is a base of established technology companies operating out of the Rockhampton region. 4Tel founded by Derel Wurst, specialises in the fields of train control systems, large radio and satellite systems, SCADA networks, IP networking, and software for real-time command and control networks. Insyte Solutions develops industry leading software for rail innovation across Australia. Rail Innovation Australia is commercialising new technologies and educational solutions for the railway industry via customer-driven cooperative business ventures. A number of other professional web design and marketing agencies are indirectly contributing to the ecosystem.

With Rockhampton being the beef capital of Australia, it was surprising not to find any software related to the beef industry, however, outside the immediate region, MandraIT in Calliope, Queensland developed iHerd, a livestock management app with over 40,000 global users.

ISSUES & ACTIONS

Participants identified STEM talent flow leaving the region to seek opportunity in capital cities as a major issue. Participants identified a lack of networking and collaboration as being major hurdles for an ecosystem to take root. The lack of NBN was a large impediment, with some areas lacking basic ADSL2 services. A common theme was a lack of local government support for the sector. It was perceived that the local government needed to do more to facilitate networking events, yet global comparisons point to community driven models as those with the most success.

101 Business group (Software)

BitPlex (Productivity)

Carbon Link (AgTech Sensors)

EnviroSource (Marketplace)

STARTUPS

7POPULATION




TOTAL FUNDING


GamePlan (Productivity)

Swarm Farm Robotics (Robotics)

Upson Downs (Drones)

Talent & Skills


Funding

Infrastructure

Raise Awareness


Skills Directory

Communication Network



22%

19%

15%

11%

11%

43%

24%

14%

14%

5%

ISSUES TOP 5

ACTIONS TOP 5

Participants expressed the most interest in the creation of a local angel group to connect angel investors to entrepreneurs. The generation of a local tech directory to better discover local talent was seen as a vital initiative to boost connectivity, and a quick win that would drive immediate value.


Professional Services Agriculture Mining & Resources Arts & Recreation

23

MACKAY

STRICTLY SERVICEStartup

Strictly Service helps people connect with trusted mechanics and compare the price of car services online. It connects car owners to multiple vehicle service workshops simultaneously, enabling workshops to display accurate real time pricing and availability for 1000’s of vehicles, and giving car owners the ability to receive quotes or book a service from multiple preferred workshops knowing the service requirements, service duration, service price and workshop availability.

JOBFIT SYSTEMSStartup

JobFit Systems developed an online database that objectively compares worker capabilities to job demands. It assists employers, health providers and consultants make decisions about job placement, suitable duties, programs, health surveillance and risk management strategies. A recipient of Commercialisation Australia funding in 2012, and Queensland Government Business & Industry Transformation Incentive Funding, the startup’s standardised tools and processes aim to provide a ‘one-stop-shop’ for the holistic management of a worker’s health and wellness at their place of work.

Mackay startups [yellow], established tech companies [white], and related companies [pink], along with their founders and employees [blue]. Links show professional relationships via Linkedin.

Strictly Service

Sharon Messer

Margot Reeves

Gavin Liston

Yvonne Mc Keown

Jessica Frater

Janet Cawte

Shaun Abbott

Bill Corbett

Steven Cheyne

Brett Fratus

Andrew Clews

Neill Thompson

Michelle Elvy

Justine Price

Sampath Howpe Liyanage

Shaun Young

John Tindale

Steve Dansie

Stephen Gard

Daniel Leppien

Gareth Zillmann

Hamish McAlpine

Gareth Zillmann

Paul Edwards

Kelly Egan

Samuel Moohin

Alan Jones

Jaime Rea Ian Broadfoot

Greg Thompson

Jan Teale

Mervyn Archer

Brad McKinlay

Patrick Cunningham

Clinton Evans

Matthew McKenzie

Vinay Kumar

Steve McFarlane

Mike NyakurebaBrian Tulloch

Bryan Lavarack

Glen Barnard

Kevin Moore

Mark Ellwood

Alastair Carnell

Andrew Saxelby

John Markley

Greg Thompson

Bronwyn Grannall

Chris Bradly

Joel Wright

Annabel Dolphin

Tim Stevenson

Owen Rippingale

Jade McAuley

Justin Bachmann

Darren Thompson

Peter Goodworth

Nathan Payne

John Vella Peter Everitt

Stewart McKinnon

Aiden Payne

Stephen Clarkson

Louise Clare

Jody-lee Euler

Mark Lalor

Joe Zarb

CQQS

Fired Up Central

Get It Done

Central Queensland Quantity Surveying

ZONTA WOMEN IN BUSINESS Wilde and Woolard

Mackay Sugar

Sunstate Garages and Sheds

McGair Enterprises

Austbelt

Eungella Carriers

Big Wheels

BHP - Groote Eylandt Mining Company - NT

R & J McTaggart & Co

Hills Fruit & Vege

Angurugu Community Government Council

BUSY At Work

Pioneer Valley Country Music Assoc. Inc

Regional Social Development Centre

Independent Agricultural Resources

BMA

Chandler Macleod Group

Flor Hanly & Associates

JL Rehab & Consulting

Mackay Christian College

GEMYDU

JobFit Systems

NEPEAN Power

Thiess DegremontGippsland Water

Gippsland Water

Omya

John Holland

BHP Billiton

REB Engineering

Transfield ServicesMortgage House Mackay

Westpac

Conservation Volunteers Australia

Hamiltech

WMC Fertilizers

Highlands Machinery

ELMSST Olive & Sons

Orion Ag

CONSYS Engineering

MI Power QLD Pty Ltd

WorleyParsons

WDM communications


Grant Broadcasting

Southern Cross AustereoFoodco

Subway

Cell Engineering

Rio Tinto Coal Australia

Peabody Energy

Cook This

Mercedes Benz | Daimler Chrysler

Flightship Ground Effect

Startup Mackay

Bowen Basin Coal Mines, Ports & Construction

Co-Collaborate

Cape York Air Services


ABB Industry

Repco

Synengco

Princess Alexandra Hospital

Cairns Base Hospital

Electrical Drawing Service

Norske Skog - Tasman Pulp and Paper

Tait Electronics

SEOS Displays

South Eastern Electricity Board

Downer

Queensland Rail

Rio Tinto

Regional Development Australia Mackay Whitsunday Inc.

X-Yachts Australia

2MT Mining Products

TEAM Engineering Services

Mack Permanent Building Society

Pioneer Permanent Building Society

G&S Engineering Services

Telstra Business Centre

Department of Industry, Tourism and Resources

Taffy's Typing Service

CJD Equipment

Workpac Industrial

Intov8

Whitsunday Software

CQ TAFE

RCS

Silcar Telepower

QR

Ergon Energy

CQ Rescue

Nebo NewsMater Foundation

Nielsen TAM

Nortel Networks

Realtime Group Ltd

CORE Magazine

Stephen Vassallo

Annette Camilleri

Reece Ramsay

Mackay Permanent Building Society

McKays Solicitors

redhotblue

iScape

QIT Plus

Airmap3D

Kadence Group

Engineers Australia

Paterson Flood Engineers

Smart HR Solutions

Circuit Wiz

Real Time InstrumentsThe Bullion Group

Acubis

BigMate

LogiCammsFarmacist

Matt Ewing

Don Neal

Chris Madsen

Garry France

Aaron Pirie

Tony Crowley

Jenny Legge

Geoff Fleming

Nicholas Flor

Graham Smith

Jodie Stanley

Darren Cooke

Mick Storch

Peter Watson Robert Sluggett

Dennis Murphy

24

MACKAY


Mackay is widely recognised as the Sugar Capital of Australia, producing a third of all sugar in Australia. Mackay is also the gateway to the Bowen Basin coal mining reserves of Central Queensland. It is the single largest coal reserve in Australia, with 34 operational coal mines extracting more than 100 million tonnes annually.

With the recent (2015) launch of a community group Startup Mackay; the town held its first Startup Weekend in October 2015 and ilab’s Mentor Blaze20 in September 2015, the ecosystem is beginning to take root. Regular meetups have been lacking in the past, but a series of regular tech specific networking sessions have been run throughout 2015. The Mackay IT Network also organises regular meetups but these lack a specific startup focus. A lack of a shared space or Coworking hub means people are dispersed across the city and meetups don’t yet have a set venue.

It is estimated that startups operating out of Mackay were employing 20+ people. A selection of notable persons identified in a centrality ranking are as follows; Jodie Stanley (Startup Mackay), Dennis Murphy (Startup Mackay), Darren Cooke (Founder), Chris Madsen (Founder), John Williams (State Govt), Jenny Legge (Founder), Nicholas Flor (Founder), Ben Wearmouth (Support) and Mick Storch (Founder).

Established technology companies and supporting entities that play an important role in the Mackay Ecosystem include; Big Mate (GPS), Acubis (Wireless), LogiCamms, Circuit Wiz (software), Real Time Instruments (sensors), Central Queensland University (education) and Resource Industry Network (support).

The following technology related events and meetups were identified, and are presented according to their importance to the ecosystem: Startup Mackay Meetup, ilab roadshow, AGRI innovation conference and Mackay Maker Space Meetup. ISSUES & ACTIONS

A major issue highlighted by participants was the lack of established networks, mentors and educators to help build the ecosystem from the ground up. Participants stated that the lack of a collaborative space to work from and hold central events had resulted in a number of silos developing. A lack of available local talent was also seen as a hurdle for growing large local startups without having to move to a capital city, and this was compounded by the mining industry drawing talent away from local startups.

Participants highlighted a major desired action was the set up of a local hub in the CBD to enable collaboration and networking. The identification of a local angel investor network was also seen as a priority action to localise investments. Securing a Startup Weekend and Mentor Blaze was seen as a core enabler to the establishment of a grassroots ecosystem.

Airmap3D (drones)

Farmacist (marketplace)

Job Fit Systems (software)

Kadence Group (collaboration)

STARTUPS

8POPULATION




TOTAL FUNDING

$1.4M1.4% of Regional Queensland

Procedures Online & 4P Systems (productivity)

QIT Plus (big data)

SmartHR Solutions (education)

Strictly Service (marketplace)


Infrastructure

Talent & Skills

Raise Awareness

Funding



Startup Apprentice


Communication Hub

23%

23%

20%

17%

10%

30%

23%

20%

10%

10%

ISSUES TOP 5

ACTIONS TOP 5


Public Administraiton Agriculture Arts & Recreation Mining & Energy Information Media Other

25

TOWNSVILLE

JESIStartup

JESI is a web based multi-platform journey management software solution that enables organisations to control the risks associated with a mobile workforce. JESI incorporates automated reminders and emergency alerts, all from the convenience of your mobile and other telecommunication devices.

JESI provides peace of mind that if emergency assistance is required, an incident response team would be alerted in a short period of time. JESI has a rapidly growing team, with four staff in Townsville, one in Houston and a team of three in Brisbane.

NQ UAVStartup

NQ UAV is Townsville’s first drone business. They provide complete service for companies, research bodies or government organisations wishing to utilise unmanned aerial vehicles (UAV). NQ UAV provides all the necessary project management, approvals, pilots, craft and data processing for either simple or complex UAV applications. NQ UAV offers drone development services to cover everything from research, sourcing, procurement, modification and integration of unmanned systems for new and innovative UAV applications. This includes after-market upgrades and modifications as well as building spares and/or replacements.

Townsville startups [pink], established tech companies [white], and related companies [yellow], along with their founders and employees [red or light blue]. Links show professional relationships via Linkedin.

DEC-MECH

Osmotion

Code Valley

South32 Cannington Mine

BHPB Cannington Mine

Carpentaria Gold Ravenswood

WorldVentures

Mining & Civil Recruitment

yRepublic

Fierce Ventures

RPL Solutions

Bronwyn Voyce Consulting


Crowe Howarth

PJ & EM Latter

TrenchNorth

Kyam

Industry Capability Network - Queensland

QMI Solutions

Manufacturing Dynamics

MAVLAB P/L

Applied Chemicals (Australia)

Pascoe's

Natures' Organics

Trace Scientific

Albright & Wilson (Surfactants)

Schmidt + Clemens GmbH + Co. KG

Tropic Tech

Hamilton Island Air

Helireef Whitsunday

Hayman Island

Aurecon

BAE Systems

My Little Genius

Lilone Photography

Townsville Cleveland Detention Center

Grants Enterprises

Williams Graham Carman Lawyers

Pointons Lawyers

Comit Pty Ltd

NFA

Solidfacts NQ

Pacific Integrated Project Delivery Pty Ltd

Jimmy's PTY LTD

Target


NQ Innovate

Kathy Wilson Consulting

Kelly Services

eMerge Learning Productions

JB Hifi

Puma Energy

SKILLED Group

Australian Army

Woolworths

GSK

Hatch

616 Digital LLC (Pokie Magic)

mildsurprise.com Parasyn Controls

Websense

BMC SoftwareAustralian Computer Society

Department of Science, Information Technology and Innovation

Mojito Solutions

Dept of Justice and Attorney general

WMC Resources

Qld Health

Bonnell Technology

Oracle

Dick Smith Electronics

Country Craft Junction

Apress

MYER

Australian Festival of Chamber Music

McDonald's Corporation

Tec-NQ

North Queensland Cowboys

Talk to the Mac


SaferData


TechCompServices

Ergon Energy

Telstra Business Centre


Proccess Control Engineers

CB Programming

eResearch JCU

Australian Institute of Marine Science

Process Control Engineers

Sister City Partners Limited

Creative Industries Faculty

Townsville Enterprise

Blake Pelling

Bronwyn Voyce

David Cole

Greg BruceIan Atkinson

Russell Savage

Stuart King

Joanne Walter

Anton Mazkovoi

Dylan Furnell

Peter RiddMark Robinson

Alexander Scott

Lindsay Ward

Anthony Wilson

Chris Woods

Joe Hoolahan

John Williams

David Cole

Ashley Walker

Chris Brown

Grant Bajema

Luke Anear

Noel Lovisa

Patrick Latter

John Bruce-Smith

Michael Sloggett

Unity Finn

David Beitey

Matthew Tebble

Richard Sazima

Aden Tranter

Comit

Experimental Unicorns

JESI

Oz Apps

Second to None Nutrition

Skydronics

Wow Factor

SafetyCulture

NQ UAV

BajTech

26

TOWNSVILLE


Townsville hosts a significant number of government, community and major business offices, and its economy has displayed strong and stable performance over the past decade. It has a diverse industry base in which no one sector contributes more than 17.6% to GRP.

Still in its relative infancy, a number of community driven activities have boosted community engagement and participation throughout the startup ecosystem. Townsville Startups Meetup has over 130 members, and have run 10 events over the past year, including a Startup Weekend, a Mentor Blaze session, and guest talks from Steve Baxter (River City Labs) and Wayne Gerard (Red Eye Apps). Townsville has the added benefit of having the headquarters of James Cook University (JCU), the second oldest university in Queensland and recognised in the top 4% of universities worldwide. In particular, the eResearch Centre is leading the way in mining open tropical data, web collaboration, sensor networking, high performance computing, and software development.

It is estimated that the 12 startups operating out of Townsville were employing 80+ people. A selection of notable persons identified in a centrality ranking are as follows; Luke Anear (Founder), Joe Hoolahan (Founder), John Williams (State Govt) Ian Atkinson (University), Richard Sazima (meetup), Stuart King (Founder), David Beitey (Founder), David Cole (Founder), Greg Bruce (Local Govt) and Jayant Varma (Founder).

Established technology companies and supporting entities that play an important role in the Townsville ecosystem include; Code Valley

(Established Tech), Sister City Partners (Funding), DEC-MECH (Established Tech), Blackbird Ventures (Funding), NFA Innovation (Established Tech), Department of Science, Information Technology and Innovation (State Govt), Townsville ICT Business Network (Support), James Cook University (Education), CSIRO (Support) and Startup Townsville (Support).

The following technology related events and meetups were identified, and are presented according to their importance to the ecosystem: Townsville Startup Meetup, Startup Weekend, Mentor Blaze, RoboCup, Townsville ICT Business Network, NQ IT Conference and Startup Apprentice. ISSUES & ACTIONS

Townsville participants expressed a major issue with the lack of funding options available in the local area, with the majority of funding coming from major cities. Access to talent was a large impediment to the growth of the ecosystem, with talent attraction proving especially difficult. Increasing collaboration and networking was especially hard without a central venue for the startup community to co-exist. The poor local perception of technology and lack of education of the community was seen as a hurdle to future success.

Participants outlined that the NBN rollout was a critical factor to the success of local companies, and being one of the first regional cities to get NBN coverage was a drawcard for tech talent. The creation of a local angel network was seen as key to increase the number of tech startups in the region. The identification and opening of a co-working hub was a vital action that was needed to build the ecosystem.

AM Shelfie (3D Printing)

BajTech (3D Printing)

Comit Platforms (Mobile App)

Experimental Unicorns (Software)

JESI (Mobile App)

NQ UAV (Drones)

STARTUPS

12POPULATION




TOTAL FUNDING

$6.7M65% of Regional Queensland

OzApps (Mobile App)

SafetyCulture (Mobile App)

Second to none Nutrition (eCommerce)

Skydronics (Drones)

WotsLocal (Marketplace)

Wow Factor (Mobile App)

Talent & Skills

Funding


Raise Awareness

Culture



Education Program

Brand / Culture


23%

23%

18%

18%

18%

33%

24%

22%

18%

4%

ISSUES TOP 5

ACTIONS TOP 5


Information MediaSafetyManufacturingAgricultureArts & RecreationOther

27

Precedence

APRA Amcos


SamTheWaiterAdvance Cairns

Iceberg Innovation

MyPool Inspection

theSpace Cairns

Cairns Regional Investment Group

The Australian SmallScale Offerings Board

Get Back 2 Basics

inCapital

Thomas Wright

Andrew Bills

Brett Bundock

Symon Pritchett

Nathaniel Armer

Elliot Strickland

Simon lenoir

Sam Leo

George Corea

Adam Williams

Glen Rice

Tyson Clarke

Mark Matthews

Matt Hanson

Matt McKinley

Robert Buhrke

Steven Hambleton

Dieter Bohm

Carol Hautot

Nicole Hambleton Darryl Postgate

George Chandeep Corea

Dale Edney

Kim Kelly

Troy Haines

Daniel Lundh

Ji Shen

I Want that Course


2bit Studios

AUFO

Bets WithFriends

Didgigo

Droner

Focuss

HelloClaims

iAMConnected

Insta Connect

Mogtastic

My Footy Boots

nupath

OrbStudio

Relocations2go

Sakure

ShareStuff

Snipe

TenderHound

Therma Culture

Thought Select

UAView

Voista

Why Not Tours

CatchLog

Konveen

Inspection Apps

Joyce Mar

Nathan Brittain

Julia Stark

Benjamin NorrisSheridan Lindée

Emma Walker

Quentin Miller

Emma Geerlings

Layla Valinoti

Rebecca Moss

Pete Burns

Mr Cameron Jeffrey

Richard Burns

Erick Zegeer

Peppi Iovannella

Isabelle Fabio

Todd Evans

Kelly Maclellan

Lynne-Maree Fitzpatrick

Krystal King

Anthony Mirotsos

Jess Rea

Nick Loukas

Zach Lockhard

Tim Osmond

Renee Cassels

Dani BrewsterJo Jones Laifoo

Mark Glann

Adam Wolfs

Rebecca Silcock

Emmy Kerrigan

Stefan Aeberhard

Andrew Hayes

John Hamilton

Jane Polak Scowcroft

Shilpa Pahuja

mangoesmapping

Takor Group

Leah Stevenson

Brad McCulloch

Rhonda ArndtJessica Conway

Morag Goodinson

Lee Bain

Gray Bowen

Alistair Hart

Michael Abdoo

Kaj Haffenden

Nicky Jurd

Matthew Joy

Sidney de Vries

Leonie O'Connor

Abhi Beckert

Andrew Joy

Luke Bermingham

Adam Young

Simon Frost

Darren Barden

Cassie Horsley

Stevie Rollinson

Jillian Dean

Brian Dean

Sally Vaughan

Hongbin Liu

Damian Zammit

Anthony Dukes

John Mlikota

Natalie Kerslake

Cassie Horsley

Christine Reizner

Werner Sandner

Tom Watson

Chris McKinley

Dean Matejcek

The Ultimate To Do List

Kristie Partington

Elise Warring

Jordan Murphy

Andrew Johnston

Varun Chauhan

Karen Ross

Roy Wybrow

Chris McKinley

Sam Dorahy

ESRI

tourstogo.com

ResPax

Koolivoo

HoverCam

CAIRNS

INSPECTION APPSStartup

Inspection Apps is a Multi-Award winning software product that provides a software solution for business, government, councils, real estate, building inspectors, mining, OH&S inspectors and many more.

Inspection Apps provides cloud-based inspection management software, which replicates paper-based checklists, and helps users to use iPhones, iPads or iPad Minis to record inspection data, capture defects and take photographs. Inspection Apps allows users to have multiple inspection types within the one app, and each inspection type can have a unique combination of checklist questions.

KONVEENStartup

Konveen is an enterprise meeting platform that brings consistency and structure to the way organisations plan and document their meetings. Konveen aims to prevent unproductive meetings by helping employees achieve their goals sooner by giving them the framework to run better meetings. Konveen offers a consistent and measurable approach to running and recording meetings, leading to less wasted time, and actionable insights into the cost and outcomes of meetings. Konveen was a recipient of funding from Cairns Regional Council as winners of a pitch competition in 2014.

Cairns startups [white], established tech companies [pink], related companies [red], along with their founders and employees [blue]. Links show professional relationships via Linkedin.

28

CAIRNS


Cairns and the Great Barrier Reef are a unique environment, renowned nationally and internationally as a premier tourism destination. The region attracts more than 2 million domestic and international visitors each year, contributing over $2.6 billion dollars to the local economy. As a result, Cairns has a large transient population that adds to the complexity of the establishment of a robust tech ecosystem.

Cairns is emerging as a strong digital technology hub. Cairns has a higher density of startups per capita than South East Queensland. Yet local startups haven’t raised anywhere near as much money. Most technology startups are based out of the CBD, and a number benefit from support from centres like theSpace co-working hub. The startup scene in Cairns spans multiple sectors, including education and agriculture. A number of tourism and construction startups exist in Cairns, alongside a growing professional services sector. The Cairns Regional Investment Group is currently developing a network of angel investors with a focus on Cairns and regional opportunities.

It is estimated that the 31 startups operating out of Cairns were employing 120+ people. A selection of notable persons identified in a centrality ranking are as follows; Troy Haines (Coworking), Damian Zammit (Coworking), Steven Hambleton (Founder), Andrew Joy (Founder), Daniel Lundh (Founder), Nathaniel Armer (Founder), John Milkota (Funding), Matthew Hanson (Founder), Daryl Postgate (Founder), Matt McKinley

(Founder), Robert Buhrke (Funding) and Roy Wybrow (University).

Established technology companies and supporting entities that play an important role in the Cairns ecosystem include; ResPax (Software), Koolivoo (Software), Iceberg Innovation (Funding), Cairns Regional Investment Group (Funding), James Cook University (Education), Digital Cairns (Support), Dive into Digital (Support) and PiDataConsulting (App Development).

The following technology related events and meetups were identified, and are presented according to their importance to the ecosystem: Cairns Startup & Entrepreneurs Meetup, Startup Weekend, Mentor Blaze, Dive into Digital, Startup Lab, Silicon Beach Cairns, Pitch Night and FunGIS.

ISSUES & ACTIONS

Cairns participants expressed a major issue with the lack of a large physical space being a hurdle for startups, in addition to a low risk appetite among entrepreneurs, legislators and investors. The attraction of talent to the region was also seen as a problem, and retaining talent in an area with a large transient population was seen as a major barrier to the growth of the ecosystem.

Participants suggested that the development of a local tech campus including coworking spaces supported by levels of government would provide the infrastructure needed to firmly establish a robust tech ecosystem. The Cairns Innovation

2 bit Studios (Game Studio)AUFO (Drones)Bets With Friends (Mobile App)Catch Log Trading (Analytics)Didgigo (Content Creation)Drink Tracker (Mobile App)Droner (Drones)Dynamic Conversations (Marketplace)Focuss (unknown)HelloClaims (Insurance)I Want That Course (Marketplace)iAMConnected (Collaboration)Inspection Apps (Mobile App)InstaConnect (IOT)Konveen (Communication)Mogtastic (Game Studio)

STARTUPS

31

POPULATION




TOTAL FUNDING

$1.4M13% Regional Queensland

My Footy Boots (Marketplace)Nupath (Education)Orb Studio (Game Studio)Pak Yak (Mobile App)Relocations to Go (Marketplace)Sakure (Desktop App)Sam the Waiter (Mobile App)ShareStuff (Marketplace)Snipe (Productivity)TenderHound (Collaboration)ThermaCulture (IOT)ThoughtSelect (Mobile App)UAVIEW (Drones)Voista (Software)Why Not Tours (Marketplace)

Infrastructure

Culture

Talent & Skills

Raise Awareness

Funding


Brand / Culture

Startup Apprentice


Education Program

29%

29%

16%

11%

10%

25%

21.67%

16.67%

13.33%

10%

ISSUES TOP 5

ACTIONS TOP 5

Centre, announced in July 2015 and expected to launch in 2017 could address some of these needs.

Engaging early with local graduate software developers was seen as a way to retain local talent. A highly innovative solution was to enter into negotiation with one of Cairns’ seven global sister cities for a seamless flow of tech talent.


Professional ServicesAgricultureEducation & TrainingTourismInformation MediaOther

29

COMPANY STAGESThis diagram compares the progressive distribution of startups by estimated staff size between Regional Queensland, South East Queensland (as of 2014) and Tallinn, Estonia (home of Skype). The diagram shows people ‘interested’ in entrepreneurship, those that actually found Startups, and through to growing and mature technology companies.

Developing high growth technology companies is a high risk endeavour with only a small proportion of companies achieving the growth required to move to the next stage. Approximately 90% of bootstrapped or angel-funded companies fail, and between 30% to 40% of venture backed companies fail. Even fewer technology companies grow beyond $1 billion in revenue, or reach a $1 billion valuation - less than 0.1% for either. 21 22

15001000400

POTENTIAL FOUNDERS

20% Portion of people interested in entrepreneurship who start a company.

431 22065

SEED STAGE STARTUP

Staff size 1-5

2bit Studios

1543011

EARLY STAGESTARTUP

Staff size5-30

oTrain

23151

GROWTH STAGETECH CO

Staff size30-100

SafetyCulture

310

LATER STAGETECH CO

Staff size 100-500

210

UNICORNS

Staff size 500+

Regional Queensland

South East Queensland

Tallinn, Estonia

30

ANGEL & STARTUP DENSITY

This diagram examines Startup Density (the number of people in a region per startup), and Angel Density (the number of people in a region per angel investor). Note that smaller ratios are better, such as Bend Oregon which has approximately 1 angel investor per 5,000 people, compared to the Regional Queensland Average which is approximately 1 angel investor per 150,000 people. The diagram compares the seven regions in this report with nine comparatively sized regional cities in the US and Europe that have developed strong technology hubs.

In 2015, entrepreneurs in smaller cities across the world have plenty of opportunity thanks to advances in technology that weren’t readily available five years ago. The proliferation of open-source tools and cloud computing has made it possible to start a fast-growth company from virtually anywhere. In todays economy, innovation is critical and operating within a cluster shortens the time required to identify, resource, and realise areas of need and opportunity. 23

ANGEL DENSITY STARTUP DENSITY

75K100K175K200K 25K 30K 35K 40K0 5K 10K 15K 20K

Boulder Colorado (105,000)

Bend, Oregon (79,000)

Burlington, Vermont (43,000)

Tallinn, Estonia (400,000)

Lehi, Utah (49,000)

Brighton, UK (155,000)

Cairns (158,000)

Eindhoven, Netherlands (216,000)

Oulu, Finland (190,000)

Reykjavik, Iceland (400,000)

SEQ Average (2,500,000)

RQ Average (1,006,000)

Rockhampton (85,000)

Toowoomba (162,000)

Mackay (123,000)

Townsville (192,000)

Bundaberg (94,000)

Ipswich (190,000)

Number of people per angel investor Number of people per startup

CITY (POPULATION)

25K

Source: AngelList, CrunchBase and Boundlss research. Note smaller ratios are better.

125K

31

GLOBAL COMPARISONS

Estonia is the 132nd smallest country in the world by land mass yet it produces more startups per head of population than any other country in Europe. It has a population the size of Copenhagen but has one of the world’s most advanced e-governments.24

Within Estonia all children are taught to code until 16. In 2000, its government deemed internet access a basic human right and free Wi-Fi became the norm throughout the land.

It was the first country to offer voting for general elections online and most Estonians file their taxes within minutes on their mobile phones. Their health records are stored in a digital cloud. Estonia is said to have the world’s most digitised government.25

Oulu was selected in the list of Fortune’s ‘7 Best New Global Cities for Startups’ in 2012. The Oulu region creates the most innovations per capita in Finland based on statistics from the Foundation for Finnish Inventions. 27

In total, there are about 400 internationally scalable startup-companies founded in the Oulu region. The years 1995-2010 were extremely successful for sowing the seeds of a startup ecosystem in Oulu as Nokia invested heavily into the region through R&D investments to create a truly world-class engineering talent pool. 28

TALLINN, ESTONIAPopulation: 400,000

ACTIVE USERS

300M+

VALUATION

$1B+

EMPLOYEES

96

OULU, FINLANDPopulation: 190,000

RAISED

$10.2M

RAISED

$17.5M

INSTALLS

400M+

In August 2003, six people from Estonia, Sweden and Denmark launched a new product in Tallinn. On its first day, 10,000 people downloaded it. A few months later, it had a million users. Ten years later, it is used by 300 million people around the world. The product is called Skype.

It is difficult to overestimate the snowball effect Skype has had on Tallinn. “You need a local success story to legitimise creating startups as a viable business,” said Taavet Hinrikus, founder of TransferWise, a currency-exchange service.26

Skype also provided many young Estonian programmers and software developers with share options from the start — which meant that when Skype was sold to eBay in 2005 for $USD 2.5 billion, many gained seed capital to start on their own companies. According to Sten Tamkivi, early employee with Skype, 36 people from Skype have since founded their own business since leaving the company26, most notable TransferWise, currently valued at over $USD 1 billion.

32

Well known as a global tech hub, in 2010, Boulder had six times more high-tech startups per capita than the nation’s average, according to an August 2013 study by the Kauffman Foundation and twice as many per capita as runner-up San Jose-Sunnyvale in California.29

This vibrant culture has given Boulder a prosperous economy. Without the help of oil, natural gas, or any monolithic industry, Boulder ranks among the top 20 most productive metro areas in the USA in terms of GDP. It is the home to three startup incubators including Techstars, and a healthy angel investor and venture capital community.30

Eindhoven is hands-down the most inventive city in the world based on one of the most commonly used metrics for mapping the geography of innovation- “patent intensity.”

Eindhoven produces patents at the rate of 22 for every 10,000 residents, which far outpaces the second place for most inventive city, San Diego (8.9 patents per 10,000 residents).31

Its High Tech Campus houses more than 10,000 researchers, developers, and engineers from around 125 companies, all working to develop new technologies and products. Its most popular startup accelerator, the Startupbootcamp, is the biggest in Europe with a fund size of €100 million.31

A real world example of kickstarting a cluster is underway in Bend, Oregon. Dino Vendetti, a former Bay Partners general partner (a venture capital firm), moved up to Bend on a mission to consciously engineer an entrepreneurial cluster in a regional city to spur economic development and job creation.

Steve Blank eloquently summarises Dino’s strategy to encourage and engineer entrepreneurial density.18

• Leverage the local university to produce STEM talent and in particular computer science• Lobby for direct flights to major markets• Develop local early stage risk capital• Invest in connection via local entrepreneur events and startup schools• Harness local business community support

BOULDER, COLORADOPopulation: 105,000

RAISED

$4.7M

INVESTMENTS

497+

RAISED

$110M

BEND, OREGONPopulation: 79,000

RAISED

$91M

RAISED

$24M

EINDHOVEN, NETHERLANDSPopulation: 216,000

GLOBAL PROGRAMS

11

RAISED

$20M

33

TALENT RETENTION & ACQUISITION

Regional Queensland is currently suffering from a chicken and egg challenge. Without a critical mass of established and startup technology companies, there is little draw for talent to move there, and without enough talent moving into the region, it is hard to build scalable tech companies.

Research suggests that almost every successful global tech cluster has a local technical university.18 This provides a continued source of local technical talent and research. It’s extremely difficult to import enough talent to fuel a rapidly growing tech cluster, so a university is critical to organically generate and retain talent within the region. STEM degrees are particularly critical as they train the pool of technical talent needed to drive the formation of local technology clusters.

Queensland holds roughly 20% of the jobs in Australia, but only 13% (12,000) of the Software and Applications Programmers, with 40% (35,000) of Australia’s programming talent being found in New South Wales. There are currently 88,200 Software and Applications Programmers employed across Australia.32

Internationally, the Australian Consulate-General in San Francisco has estimated that more than 22,000 Australians are currently working in tech centres along the west coast of the US.33

Whilst this figure can be portrayed as alarming and severely impacting the growth of the local tech ecosystems, it is worth noting that the exodus of Australian tech talent is also being trained and learning from some of the best organisations and entrepreneurs globally.

The key is to get them to eventually return and start businesses in Australia.

A continued theme arising from regional workshops and interviews was the issue of talent flow: talent acquisition, talent retention and talent inflow (rated as the number one issue in four of the seven regions).

STEM TALENT FLOW

20%

RQ UNI. PORTION OF ALL QLD’S CURRENT STEM STUDENTS


0% 5% 10% 15%

Natural & Physical SciencesAgriculture, Environmental & Related StudiesEngineering & Related Technologies Information Technology


James CookUniversity

Attracting talent to move back into the region after a time away may represent the very best chance of building a sustainable regional startup ecosystem.

UNIVERSITY TALENTBased on 2014 figures on all students at higher education institutions, Queensland has approximately 50,000 students studying a STEM degree, 18% of the Australian STEM student numbers (consistent with Queensland’s portion of the Australian population).

Of these 50,000 Queensland students, the three major regional Universities*, had 15,256 (29%) students enrolled in STEM degrees, or 5% of Australia’s STEM total in 2014.

Drilling down further, these same three universities produce roughly 40% of Queensland’s ICT graduates, 32% of Engineering graduates and 22% of Natural and Physical Science graduates.34

Yet the figures do not add up when we compare startup formation rates, venture capital fund flow, and total number employed in the industry.

While STEM graduates from RQ universities are high compared to national figures, this has not led to a comparably high number of technology companies being formed. This leads to the assumption that local STEM graduates are leaving Regional Queensland for capital cities or are international students returning home. The analysis of the location of STEM graduates on page 36 of the report seems to support this assumption.

STEM

The importance of STEM disciplines for the future economic and social well-being of Regional Queensland cannot be underestimated.

International research indicates that 75% of the fastest growing occupations require STEM skills and knowledge and yet, Australia trains fewer people with IT skills today than it did 10 years ago. IT enrolments have dropped about 55% in that time.35

The 2011 Australian Census reported that 47% of all workers who studied information technology courses work in other occupations. These span a range of positions including advertisers, marketers, engineers, accountants, bookkeepers and other professionals.36

Modelling by PwC shows that if Australia were to develop a STEM workforce in line with other leading STEM countries, it would generate, in present value terms, an additional $57.4 billion in GDP over the next 20 years.37

*The three major regional universities are:James Cook University (JCU)Central Queensland University (CQU)University of Southern Queensland (USQ)

STATE PORTIONS OF AUS STEM STUDENTS

Victoria

New South Wales

Queensland

Western Australia

South Australia

Australian Capital Territory

Tasmania

Northern Territory

29%

29%

18%

12%

6%

3%

2%

1%

34

STARTUPS BEGET STARTUPS. PEOPLE WHO WORK FOR STARTUPS START THEIR OWN. PEOPLE WHO GET RICH FROM STARTUPS FUND NEW ONES.

I SUSPECT THIS KIND OF ORGANIC GROWTH IS THE ONLY WAY TO PRODUCE A STARTUP HUB, BECAUSE IT’S THE ONLY WAY TO GROW THE EXPERTISE YOU NEED.”38

PAUL GRAHAMFOUNDER, YCOMBINATOR

“

To track the flow of technology talent leaving Regional Queensland, we used Linkedin to identify the current location of individuals that had studied a STEM degree at one of the three regional universities in Queensland.

STEM TALENT FLOW MAP

36

STEM Graduates From

James Cook University (~8k)

University of Central Queensland (~4k)

University of Southern Queensland (~2k)

37

MEETUPS & EVENTS

Meetup Groups & Community EventsOur research identifed approximately 16 meetup or community groups across Regional Queensland related to startups, technology and entrepreneurship. These are informal groups that generally meet on a monthly basis. By way of comparison we identified a total of 110 startup related meetup groups in South East Queensland in the 2009 to 2014 period.

A common theme emanating from participants in the project was that a lack of networking and collaboration opportunities was a major inhibitor to the growth of a local ecosystem, with many silos developing as a result.

Any regional entrepreneurial community must be active and involved in supporting the growth of new startups in the region. Part of this activity must include events geared towards entrepreneurial education to help build local entrepreneurial expertise.

Local events like ilab’s Mentor Blaze and Startup Weekend help train and motivate entrepreneurs. Other important community events, including networking sessions, informal meetups, and events like Hackathons and RoboCups help entrepreneurs connect with each other and develop new collaborations.

Startup WeekendToowoomba, Cairns, Tablelands, Townsville

Startup Weekends are 54-hour events where tech talent come together to share ideas, form teams, build products and launch startups. Startup Weekends have been held in Toowoomba, Townsville, Cairns (x2), Atherton Tablelands (Cairns) and Mackay.

Startup Weekends were perceived by participants involved in this project as critical events to help establish and build tech ecosystems.

“The amount of interest that’s been generated as a result of just doing that one weekend is astounding. There’s a lot more people who are now interested in tapping into it, not just from a startup perspective, but also from the business development and the mentoring and the investment side of the ecosystem.”John Williams, DSITI, Townsville

Rowes Bay Sensory Sprint DayTownsville

The Rowes Bay Sensor Network Sprint sees four teams tackle separate physical environments at the Rowes Bay Sustainability Education Centre.

The JCU Robo Club teamed up with JCU eResearch and the Townsville City Council to form this challenge.

Four teams are assigned a separate environment, with each expected to develop an Internet of Things (IoT) solution to monitor that environment. Teams must develop a solution that gathers data, pushes it to the web, processes it, and aesthetically displays the results to a web page, all within one day.

STARTUP WEEKENDS

6Number of Startup Weekends across Regional Queensland.

EVENTS

55+Estimated number of startup related events per annum.

Cairns Townsville Mackay Bundaberg ToowoombaRockhampton Ipswich

25

20

15

10

5

0

Meetups Events

MEETUP GROUPS

16+Estimated number of regular startup related Meetup Groups.

38

CENTRALITY

METHODOLOGY

Network centrality is a measure of the density of a person or organisation’s interconnectedness with a network and its relationships. It is a strong factor in entrepreneurial success.

As part of the project, we held seven workshops, one in each region, with 100+ key members of the ecosystem. Participants were asked to map the local community and vote on the key people, organisations and events in the ecosystem. The two columns above, labelled Votes, display the community votes ranked accordingly across the seven regions.

In addition, the relationships between people within the startup ecosystem on LinkedIn were aggregated and analysed using an algorithm to calculate a network centrality score for all the nodes in the network. There are several measures of centrality. This report uses a common measure of network centrality - Eigenvector - to identify the top 30 people and organisations.

Rank Votes Eigenvector Votes Eigenvector

1 Chris Harris (Rockhampton) John Williams theSpace (Cairns) Code Valley

2 Luke Anear (Townsville) Roy Wybrow CQU (Rockhampton) SafetyCulture

3 Joe Hoolahan (Townsville) Andrew Joy JCU (Townsville) IBM Australia

4 Andrew Beckenhauer (Bundaberg) Ian Atkinson Best Practice Software (Bundaberg) 2bit Studios

5 Richard Chappell (Rockhampton) Anna Daniel Fire Station101 (Ipswich) Osmotion

6 Neil McPhillips (Bundaberg) Derel Wust Sister City Partners (Townsville) JESI

7 Warwick Powell (Brisbane) Alistair Hart 2bit Studios (Cairns) I Want that Course

8 Matthew Schultz (Ipswich) Chris Woods Carbon Link (Rockhampton) CatchLog

9 David Masefield (Toowoomba) Greg Bruce Iceberg Innovation (Cairns) Experimental Unicorns

10 Greg Bruce (Townsville) Benjamin Taylor Microair (Bundaberg) Oz Apps

11 Damian Zammit (Cairns) Bronwyn Voyce Wide Bay Volunteers (Bundaberg) SaferData

12 Ben Taylor (Bundaberg) Russell Savage iLab (Brisbane) LogiCamms

13 Frank Pyefinch (Bundaberg) Christine Bell Koolivoo (Cairns) ESRI

14 Jason Foss (Rockhampton) Blake Pelling BigMate (Mackay) D2K

15 John McClean (Bundaberg) Luke Anear Gilmour Space Corp (Bundaberg) Thales

16 Steve Baxter (Brisbane) Mark Matthews Kadence Group (Mackay) Strategenics

17 Dale Edney (Cairns) Stephen Dummett Startup Toowoomba (Toowoomba) Raytheon

18 Darren Cooke (Mackay) Kristy Gostelow Startup Townsville (Townsville) Department of Health

19 Daryl Postgate (Cairns) Joe Hoolahan Dive into Digital (Cairns) ThomsonAdsett

21 Jack Millbank (Bundaberg) Damian Zammit Commercialisation Australia Best Practice Software

21 Paul Pisasale (Ipswich) Leanne Griffin Inspection Apps (Cairns) Minstaff Survey

22 Robert Buhrke (Cairns) Ricardo (Richard) Sazima Konveen (Cairns) Koolivoo

23 Russell Savage (Townsville) Matthew Schultz SafetyCulture (Townsville) 4tel

24 Steven Hambleton (Cairns) Darryl Postgate JESI (Townsville) BigMate

25 Troy Haines (Cairns) Terry McCosker River City Labs (Brisbane) AgData Australia

26 David Cole (Townsville) Paul Wyatt MacDonnells Law (Cairns) Hortus

27 Ian Atkinson (Townsville) Dennis Murphy Startup Mackay (Mackay) Acubis

28 Jodie Stanley (Mackay) John Mlikota Future Now (Townsville) Agri Labour Australia

29 Leanne Griffin (Toowoomba) Chris Mills ThermaCulture (Cairns) Polaris Data Centre

30 Richard Sazima (Townsville) Joy Taylor Strictly Service (Mackay) Microair

PEOPLE30 Most Central People Ranked by >

ORGANISATIONS & EVENTS30 Most Central Organisations & Events Ranked by >

39

MARKET FOCUS

TARGET MARKET OF STARTUPS COMPARED TO TOP 20 QUEENSLAND INDUSTRIES

Percentage of Startups targeting industry 2015

Approx. Percentage of Qld GSP from industry 2013-2014 39

2% 4% 6% 8% 10% 12%0

Construction

Mining

Ownership of Dwellings

Health Care and Social Assistance

Manufacturing

Finance and Insurance Services

Public Adminstration and Safety

Professional, Scientific and Technical Services

Transport, Postal and Warehousing

Retail Trade

Education and Training

Wholesale Trade

Electricity, Gas, Water and Waste Services

Rental and Real Estate Services

Agriculture

Administrative Services

Accommodation and Food Services

Other Services

Communication

Art and Recreational Services

12% 10% 8% 6% 4% 2%14%

40

TECHNOLOGY STRENGTHS

NUMBER OF STARTUPS BY TARGET MARKET AND PRODUCT TYPE A

GR

ICU

LTU

RE,

FO

RES

TRY,

FIS

HIN

G A

ND

HU

NTI

NG

INFO

RM

ATI

ON

MED

IA A

ND

TEL

ECO

MM

UN

ICA

TIO

NS

AR

TS A

ND

REC

REA

TIO

N S

ERVI

CES

EDU

CATI

ON

AN

D T

RA

ININ

G

ENTE

RTA

INM

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& S

PO

RT

PR

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TIFI

C A

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TEC

HN

ICA

L SE

RVI

CES

PU

BLI

C A

DM

INIS

TRA

TIO

N A

ND

SA

FETY

RET

AIL

TR

AD

E

COM

MU

NIC

ATI

ON

CON

STR

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ION

MA

NU

FACT

UR

ING

ACC

OM

MO

DA

TIO

N A

ND

FO

OD

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VICE

S

AD

MIN

ISTR

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VE A

ND

SU

PP

OR

T SE

RVI

CES

ENER

GY,

MIN

ING

& R

ESO

UR

CES

HEA

LTH

CA

RE

AN

D S

OCI

AL

ASS

ISTA

NCE

TRA

NSP

OR

T, P

OST

AL

AN

D W

AR

EHO

USI

NG

FIN

AN

CE A

ND

INSU

RA

NCE

SER

VICE

S

HEA

LTH

& M

EDIC

AL

INFR

AST

RU

CTU

RE

& B

UIL

DIN

G

REN

TAL,

HIR

ING

AN

D R

EAL

ESTA

TE S

ERVI

CES

TOTA

L (C

OU

NT)

TOTA

L (%

)

marketplace 2 3 1 1 1 3 1 1 13 15%

mobile app 1 2 3 2 1 1 10 12%

drones + gis 4 1 2 1 8 10%

hardware + web 4 1 1 6 7%

desktop app 2 1 1 4 5%

infrastructure 1 1 1 1 1 5 6%

other 1 1 2 4 5%

3D printing 3 3 4%

collaboration 1 2 3 4%

communication 3 3 4%

content creation 1 1 1 3 4%

education 2 2 4 5%

game 2 1 3 4%

productivity 1 1 2 1 5 6%

customer relationship 1 1 2 2%

ecommerce 1 1 2 2%

big data 1 1 1%

electronics 1 1 1%

location 1 1 1%

recommendations 1 1 1%

transportation 1 1 1%

video 1 1 1%

TOTAL (Count) 13 8 8 7 5 8 5 5 4 3 3 2 2 2 2 2 1 1 1 2

Total (%) 15% 10% 10% 8% 6% 10% 6% 6% 5% 4% 4% 2% 2% 2% 2% 2% 1% 1% 1% 2%

41

SPOTLIGHT - AGTECH

NO. AGTECH STARTUPS

19+Queensland’s Agriculture SectorQueensland’s agriculture, fisheries and forestry industries have an estimated production value of $14.7 billion, Queensland’s second biggest export earner. The sector directly employs over 90,000 people and earns over $8.9 billion in exports. 40 More than 90% of Queensland’s footprint is under some form of primary production.

In Queensland, it is estimated that approximately 88% of the jobs in agriculture and 53% of the jobs in food processing industries are regionally based. These jobs and the economic contribution they provide are the backbone of many rural and regional communities in Queensland. An estimated 320,000 Queenslanders are employed across the whole food supply chain. This means that one in seven Queenslanders are either partially or entirely supported by the Agriculture sector.41

QLD AG EXPORTS BREAKDOWN

Unless agriculture providers have a distinct export focus, a national problem is that there is very limited scope for growth. The population of Australia simply doesn’t support exponential growth - Jack Millbank, CEO, Hortus

INCREASING DEMAND

The global population is projected to reach 9 billion by 2050. The increase in demand for agricultural produce is expected to rise by 70%, with the majority of this coming from the emerging middle class in Asia. Current growth rates in agriculture are simply not sufficient to meet these challenges.39

CEREAL CROP PRODUCTION (tonnes) Source: Farming First Green Economy 41

Total slaughterings46%

Sugar cane 11%

Cereals for grain 7%

Other 1%

Vegetables 9%

Cotton 7%Crops for hay 1%

Nurseries, flowers & turf 3%Peanuts & oil seeds 0%

Fruit & nuts 10%

Livestock products 5%

12

8

5

1

1

NO. QLD FARMS

28,000+Queensland’s AgTechRegional Queensland has developed world-class AgTech research capabilities with its universities and city-level clusters of agricultural expertise, such as robotics in Toowoomba, beef in Rockhampton or sugar in Mackay.

Given the overall entrepreneurial AgTech activity in the region and the large number of significant multinational players, Regional Queensland can be a powerful influence in driving the growth of an Australian AgTech ecosystem and is ideally placed to supply growing demand and contribute to global food security.

QLD AG TECH TYPES

Across Regional Queensland, advances in drones, robotics, and the Internet of Things, are helping regional entrepreneurs establish innovative new companies. Cloud computing and big data analysis are being utilised to help make sense of the vast amounts of agricultural data now able to be collected by these sensors.

Organisations such as CSIRO and James Cook University are running a Digital Homestead44 project near Townsville that aims to evaluate and demonstrate technologies that enable better decision making on farms, leading to improved productivity and profitability.

Nevertheless, there does not exist a strong regional AgTech identity. Various regions claim sole ownership of the “regional” or “tropical” identity and competition between regions and a narrowness of vision (only looking within the immediate region’s borders for beneficial economic opportunities) prevent larger inter-regional projects. Regional collaboration is needed to build a truly global AgTech brand.

It is interesting to note that Sydney based accelerator BlueChilli is partnering with Westpac to encourage local entrepreneurs to develop new ideas and solutions for the agricultural sector, awarding $40,000 to the entrepreneur who develops the “most useful and innovative” digital solution for the bank’s agribusiness customers. Whilst this program is open to all Australians, there is no such program in Queensland.45

Drones

Sensors

Big Data

Robotics

Labour Hire

NO. AGTECH COMPANIES

29+Digital Farms & FundingAgriculture is in the middle of a digital revolution. The benefits of converging the digital and physical worlds are too valuable to ignore. In the not-so-distant future, constant connection between people, companies and products, in real-time, will be the norm.42

A rising tide of Australian and international reports have identified advances in agricultural technology as the key to long-term productivity gains.

According to AgFunder’s AgTech Investing report, 2014 AgTech funding had a record breaking year in the USA with $USD 2.36 billion raised across 264 financing deals.43 This figure surpassed well-known sectors like fintech ($2.1 billion) and cleantech ($2 billion) and was 40% higher than the entire Australian venture and private equity investments over the same period across all industries. 2015 funding is expected to be $USD 4.1 billion.

GLOBAL AGTECH FUNDING 2010-2015

From precision agriculture to biotech and drones, venture capitalists are actively investing in companies set on revolutionising how we grow, produce, and distribute food around the world. 43

Notably absent from the AgFunder’s data is Australia. AgFunder states that “whilst Australia has a large agriculture industry, we are not seeing much AgTech activity at all.”42

Source: AgFunder Mid Year Report 44

Source: AgFunder Mid Year Report 44

$2.4

$0.9$0.5$0.5$0.4

2010 2012 20142011 2013 2015

$4.1

United States

Israel

China

India

United Kingdom

Canada

Sweden

France

Germany

Switzerland

$1028M

$510M

$155M

$111M

$85M

$35M

$27M

$24M

$23M

$22M

5bn

4bn

Oceania

Europe

Asia

Latin America

North America

Africa

3bn

2bn

1961 70 80 90 09 20502000

predicted

1bn

Funding ($USD billions)Projected Funding

42

DRONES

A growing ecosystem of Regional Queensland drone operators is already catering to a long list of clients in agriculture, land management, energy, and construction. Commercial drones have leapt far ahead of regulators and are already entrenched in a handful of massive industries. Many are small private companies and startups — although some large companies are beginning to invest in drone technology too.

QLD SHARE OF DRONE CERTIFICATES

There are currently 269 registered UAS (Unmanned Aerial Service) Operator Certificate Holders in Australia, with 72 (27%) registered across Queensland. Drone Technology is now proliferating at an extraordinary rate, with capability and performance doubling every 18 months, and price continuing to plummet. Nevertheless, to become a CASA (Civil Aviation Safety Authority) certified holder, the approvals process can take months and costs thousands of dollars, with applicants required to complete about 90% of a conventional private pilot’s course.

CASE STUDY: DESERT CHANNELS

Desert Channels Queensland has begun using an unmanned drone helicopter to control the spread of weeds in western Queensland. The drone is vital in the battle to manage massive prickly acacia infestations in areas of Queensland that have previously been inaccessible, as it can deploy more weed spray and pellets on an affected area in five hours than a landholder could in five days.

PRECISION FARMING

Precision agriculture is broadly defined as the group of hardware and software technologies that help farmers improve decision-making with data-driven analytics, including drones, robots and sensors.35

According to a report from the Boston Consulting Group, the use of precision farming technology will be the major trend reshaping farming worldwide by 2030. Precision farming uses data at the level of the square meter or decimeter, or even of a single plant, to optimise the consumption of inputs and make adjustments to accommodate variable characteristics within and among fields. Its spread will be enabled by the increased use of sensors, software and wireless connectivity on farming implements.47

ROBOTICS

The global agricultural industry is quickly moving towards full automation. Agricultural robots automate business processes, meet stringent hygiene and safety regulations, work 24 hours a day, and relieve human workers of physically arduous tasks. Robotics and automation can play a significant role in Regional Queensland meeting projected 2040 agricultural production needs.

WinterGreen research in a 2014 report, projects the global agricultural robot market size to grow from $817 million in 2013 to $16.3 billion by 2020.48

PROJECTED GROWTH AGROBOTIC MARKET

A few local initiatives are integrating robotics into the Regional Queensland ecosystem. The JCU Robotics club organises regular meetups, and events like RoboCup and Robogals are leading the way in driving up local interest.

“Now, the faraway labourer – or intelligent machine – is available for hire and may be better endowed than the local labourer in skill or price or speed of work, or with the efficiency of organisation, or whatever is required to win the customer.” - McKinsey Compete to Prosper49

CASE STUDY: SWARMFARM ROBOTICS

Andrew Bate’s AgBot19 development company, SwarmFarm Robotics, in partnership with QUT has developed the AgBot, a light-weight, driverless buggy that can self navigate around a 4000-hectare wheat farm using low-cost sensors, eradicating small weeds and causing minimal damage to soil.

GLOBAL AGTECH FUNDING 2014

$2.36BPRECISIONAG STARTUP FUNDING 2014

$276M RQ DRONE COMPANIES

12+ RQ ROBOTIC COMPANIES

1+

NSW - 26%

WA - 15%

VIC - 22%

NT - 1%

SA- 5%

ACT - 2%

RQ IOT COMPANIES

13+INTERNET OF THINGS

More and more Regional Queensland organisations are building hardware and web based platforms for farmers to optimise resource management.

Despite global investor interest in agriculture technology, it’s a little known fact that farming has been, and continues to be, among the most fertile laboratories for Internet of Things (IoT) innovation and large-scale adoption.42

The rise of sensor based technology is promising and represents an innovative way for Regional Queensland to become a global IP leader.

Soil carbon sensors, soil sensors and analytics that help make sense of the sheer vastness of data generated by these systems are strong emerging regional themes, with IP being held in the region, and sold across Australia.

CASE STUDY: THERMACULTURE

ThermaCulture is a Cairns based solar energy based system that assists agricultural growers to achieve optimal growing conditions using soil temperature regulation.

ThermaCulture was established in 2015. ThermaCulture uses sensors and electronic devices to regulate temperatures of the subsoil region of horticultural crops to improve crop viability as well as provide a reduced chemical method to combat soil-borne pests. It also has the ability to encourage crop production in non-traditional regions, and to diversify crops in normally crop specific areas.

QLD - 27%TAS - 2%

$18B

$16B

$14B

$12B

$10B

$8B

$6B

$4B

$2B

0

2013

2014

2015

2016

2017

2018

2019

2020

43

ABOUT IAUDITOR

In 2012, SafetyCulture released iAuditor, the world’s most used app for conducting safety inspections, and in 2014 iAuditor won the international Tabby Awards for best Data Collection App, and best Business App. iAuditor is used in 209 countries and is part of the SafetyCulture safety and quality management system.

iAuditor builds checklists, conducts inspections and files reports from a mobile phone or tablet. The app transforms a typically paper based industry to a digital one, where individuals can do 7-8 times the inspections they used to. Checklists can easily be created with drag and drop editing interface or they can download one of 50,000 templates from the public library.

The iAuditor community now creates, curates and manages the world’s largest collection of inspection checklists.

Using the iAuditor app, a US company with 8,000 wind turbines saves over $USD 1 million a year in inspection costs.

iAuditor was recently promoted across Apple globally and listed in the Next-Gen Apps section of the App Store. It was the main image on the iPhone apps for business page on Apple.com and listed on the iPad apps for business page alongside the likes of Evernote and Box.

Luke Anear, CEOAs SafetyCulture’s Chief executive officer, Luke Anear is responsible for the day to day management of SafetyCulture. He works closely with the software engineering teams and drives product innovation. Luke was a worker’s compensation investigator and practice manager in Sydney until 2002.

SPOTLIGHT - SAFETYCULTURE

ABOUT SAFETY CULTURE

SafetyCulture is a software development company founded in Townsville. In 2011 the company noticed the penetration of smartphones in everyday life. From that point on Luke Anear, CEO started testing and developing solutions for safety in the workplace, based around a smartphone app platform. The result was iAuditor, the most used safety audit app in the world.

The team has now grown to 48 employees. Over half of those are engineers, supported by a customer support team, a marketing & PR team and a design & user experience team, with offices in Townsville, Sydney and Kansas.

Safety Culture took home the 2015 Best Regional Startup Gong at the national StartupSmart awards. The annual awards recognise the most innovative and fastest growing technology businesses in Australia.

LUKE ON TOWNSVILLE

SafetyCulture is a shining beacon for regional technology startups. CEO Luke Anear offers the following insights from a recent interview:

“Only three years ago it was “We don’t know if we can do this from Townsville. Maybe we’re going to have to go to Sydney, or Silicon Valley.” Now, I know the answer to that. We can do it from here. We have.”

Scaling a global business quickly brings its own challenges. Luke offers some insights into growing his regional team.

“We’re bringing in engineers from Italy, or France, or Sweden and paying for their visas and helping them with accommodation. Townsville, being a regional city has lower accommodation costs, so that’s something that we can help with, but it also has a great lifestyle and climate, so we promote the tropical lifestyle and attract people to it, so I think it’s about using some of those advantages as incentives and using them as strengths”

Luke outlined how important the National Broadband Network was to technology companies based in Townsville.

“To be able to get the high speed internet, where you can build a business is a huge asset to Townsville, and I think going forward it means that they’ve got the infrastructure there to be able to build companies and tech businesses that can reach the world and are not limited by bandwidth.”

As SafetyCulture began to rapidly grow Luke found they needed people with specific key skills that were challenging to find in, or attract to, Townsville. This led SafetyCulture to expand its offices to Sydney and Kansas.

“As we needed more senior people who had families, who were a bit older and had stronger roots in bigger markets like Sydney, you then started to realise it was getting harder to attract those senior people and that’s why we then started on the Sydney team.”

SHARED AUDIT TEMPLATES

54,000+EMPLOYEES

48TOTAL FUNDING

$5.7MCOUNTRIES ACTIVE

209+DAILY INSPECTIONS

32,000+GLOBAL USERS

500,000+

SafetyCulture was initially funded in 2013 by Blackbird Ventures and Commercialisation Australia. A second funding round saw Scott Farquhar, Co-Founder of Atlassian invest in 2014.SafetyCulture’s biggest market is the US with 28.5% of its users based there, followed by the UK with 26%.

John Bruce-Smith, Atlassian’s former chief financial officer, is now CFO on a part-time basis at SafetyCulture. Atlassian’s fourth employee Anton Mazkovoi has joined to head up the Sydney team as VP of Engineering, bringing a wealth of experience from building one of Australia’s most successful tech companies to SafetyCulture.

SafetyCulture now has 500,000+ users, and has racked up over 12 million inspections in 80 countries.

44

ONLY THREE YEARS AGO IT WAS ‘WE DON’T KNOW IF WE CAN DO THIS FROM TOWNSVILLE. MAYBE WE’RE GOING TO HAVE TO GO TO SYDNEY, OR SILICON VALLEY.’

NOW, I KNOW THE ANSWER TO THAT. WE CAN DO IT FROM HERE. WE HAVE.” LUKE ANEAR CEO, SAFETYCULTURE

“

COMMUNITY INSIGHTS

As part of the project, seven regional workshops with 100 participants and 30 interviews were held with key members of each regional ecosystem. Participants were asked to discuss, identify and vote on “which issues were critical to the growth of the regions startup ecosystem”, and discuss the actions which would address these challenges. Votes are weighted proportionately by the relative sizes of each region’s population. The top seven issues in order of total weighted votes from all regions were:

COLLABORATIVE NETWORKS

Collaboration and networking was the second highest issue raised. Participants in Toowoomba (33%), Mackay (23%) and Rockhampton (19%) viewed this as a priority issue.

Increasing the breadth and depth of collaboration, identifying local mentors, creating local skills directories and providing financial support from both state and local government for key nodes was seen as vital to the continued growth of the ecosystem. Establishing both physical and digital hubs was seen as critical in most regions. Startup Toowoomba, Startup Townsville, theSpace Cairns, Mentor Blaze and Startup Weekend events are superb examples of networks that bring the local community together.

INFRASTRUCTURE

For participants within the Cairns (29%), Toowoomba (31%) and Mackay (23%) regions, the most critical infrastructure issue was access to physical space and the isolation that this results in.

With only Cairns and Toowoomba having opened up co-working spaces, participants in other regions lacked a central location to work, meet and network. The sporadic rollout of the NBN was seen as another central issue, with many regions having NBN coverage in residential areas but not in the CBD. Nevertheless, participants in Townsville rated the NBN as being the core enabler to the growth of their startups.

FUNDING INNOVATION

Across all regions, access to early-stage funding ranked as a critical challenge for startups. The shortage of funding was particularly pronounced at the angel and early seed investment stage. Participants in Townsville (23%), Ipswich (19%) and Bundaberg (18%) rated this as a high barrier to growth. The lack of formal angel investment groups across the regions has led to the vast majority of startups bootstrapping growth. Analysis from AngelList, the world’s leading angel investment platform returned no active investors in each region, and very few were identified in our workshop interviews. Significant efforts are needed to form local investment groups, starting initially with informal group meetups to educate angels on the benefits of scalable tech companies.

TALENT AND SKILLS

Building, attracting, and retaining talent was seen as a critical factor across all regions. Participants in the Ipswich workshop (33% of all votes), Rockhampton (22%) and Townsville (23%) viewed this as the priority issue facing the development of a robust local ecosystem.

The region’s ‘brain drain’ is a pressing factor that surfaced continuously. Retaining a critical mass of talent is of paramount importance to the growth of a regional ecosystem.

Whilst this report does not seek to provide solutions to population growth and greater regional development, it is clear that some regions have incredibly thin STEM talent bases, with the vast majority of local graduates moving away from the region in search of better job opportunities.

Participants in Cairns and Townsville mentioned that attracting talent to the region was increasingly becoming a problem and the wage gap for software engineers in the regions was also a large barrier to recruitment. Rarely were we presented with the idea of talent outflow being a positive occurrence, even if that talent was able to move back at a later date.

RAISE AWARENESS

The fifth priority issue identified across all regions was that of raising community awareness of the tech industry. For regional ecosystems to develop and contribute to regional GDP, there needs to be greater effort to build awareness of what startups are and how they differ from small business.

Participants in Bundaberg (22%), Townsville (18%) and Toowoomba (13%) viewed this as a priority issue. Raising awareness was also seen as a critical factor in attracting investment from local high net worths, of which very few had any understanding of technology. Participants also identified celebrating the success of local startups as a key issue for the growth of the startup ecosystem, and leveraging local influencers and media to spread success stories and generate community understanding and awareness of local tech innovation. CULTURE

Participants from all regions said a culture of entrepreneurship and innovation needs to be developed within each local ecosystem if we are to create globally-relevant technology companies. Specific cultural themes that inhibited innovative entrepreneurship included; lack of an appetite for risk; entrepreneurial spirit; global ambition; resistance to change; business confidence; and, investor understanding of the impacts of technology.

While developing a culture of entrepreneurship and innovation comes in highly on the ranking, in many ways it underpins the challenges faced within all the other issues discussed.

EDUCATION

Across all seven regions, education was seen as vital to creating strong ecosystems. Increasing regional participation in STEM courses was seen as a urgent issue. Bundaberg in particular was faced with the problem of having no local graduates in ICT after Central Queensland University dropped the degree from the local campus. Participants highlighted the lack of suitably educated and experienced entrepreneurs in the local region, whilst a strong theme was the lack of coding courses in the current school curriculum. Events like RoboCup and Startup Weekend EDU (Cairns) are trying to bridge this gap. Workshop and interview participants across all regions lamented the low and declining number of Computer Science graduates and identified this as a critical long-term challenge. Access to mentors with experience building global technology companies was also a particular challenge.

TOP COMMUNITY ISSUES: RANKED BY WEIGHTED VOTES

Talent & Skills


Infrastructure

Funding

Raise Awareness

Culture

Education

19%

18%

16%

16%

15%

10%

5%

46

TOP SEVEN COMMUNITY ISSUES BY REGION

Community Issues Ranking by Weighted Votes

Toowoomba Ipswich Bundaberg Rockhampton Mackay Townsville Cairns Weighted Votes Sum

Talent & Skills 1 0% 33% 12% 22% 20% 23% 16% 19%


2 31% 19% 10% 19% 23% 18% 5% 18%

Infrastructure 3 31% 5% 18% 11% 23% 0% 29% 16%

Funding 4 13% 19% 18% 15% 10% 23% 10% 16%

Raise Awareness

5 13% 14% 22% 11% 17% 18% 11% 15%

Culture 6 0% 5% 0% 11% 0% 18% 29% 10%

Education 7 13% 0% 20% 4% 7% 0% 0% 5%

Total 100% 95% 100% 93% 100% 100% 100% 98%

Community Actions Ranking by Weighted Votes

Toowoomba Ipswich Bundaberg Rockhampton Mackay Townsville Cairns Weighted Votes


1 38% 33% 0% 0% 23% 24% 25% 24%


2 6% 10% 4% 14% 30% 33% 0% 14%

Education Program 3 6% 24% 13% 0% 0% 22% 10% 12%

Brand / Culture 4 0% 10% 9% 0% 7% 18% 22% 10%


5 19% 0% 11% 43% 10% 4% 0% 10%


6 0% 14% 4% 0% 0% 0% 13% 5%

Startup Apprentice 7 0% 0% 0% 0% 20% 0% 17% 5%

Skills Directory 8 0% 0% 9% 24% 0% 0% 5% 4%


9 13% 0% 13% 0% 0% 0% 0% 3%

Govt Incentive - Accelerators

10 19% 0% 0% 0% 0% 0% 0% 3%


11 0% 0% 24% 5% 0% 0% 0% 3%

Form Leadership Group

12 0% 0% 11% 0% 0% 0% 8% 2%

Communication Network

13 0% 5% 2% 14% 0% 0% 0% 2%

Communication Hub

14 0% 0% 0% 0% 10% 0% 0% 1%

Total All 100% 100% 100% 100% 100% 100% 100%

Total Top 14 100% 95% 100% 100% 100% 100% 100% 99%

TOP FOURTEEN COMMUNITY ACTIONS BY REGION

47

WORKSHOPSThankyou to the following people for generously providing their time to attend the community workshops:

Aaron YoungAbiy FelekeAdam YoungAdrien LangAmanda SpeltaAmy TurnballAndrew BeckenhauerAndrew BridgesAndrew JoyAndrew KlieseAnn MoffattAnna DanielsBen TaylorBen WearmouthBill HoptonBlake PellingBronwyn VoyceCameron BisleyCarmel HumphriesChris BonannoChris BosomworthChris HarrisChris KeeganChris MillsChristine BellChristine DoanCol GreensillColin ColeColin StrydomColleen CoolingCraig ThammDale EdneyDale HollissDamien ZammitDan WillersdorfDaniel LundhDaniel ReevesDannielle WalzDarren CookeDarryl Posgate David BeiteyDavid ColeDavid FinnisDavid FredericksDavid MasefieldDavid McCalllumDavid NewbyDeborah MeadDebra HoweDeirdre ComerfordDennis MurphyDerel Wust Diana JohnstonDieter BohmDonna KellionDonna PataneDr Terry McCoskerDylan FurnellDzemal SoloEdwina PettifordElliot Strickland

Elvire Callaghan Fiona Bishop-Vuibeqa Fiona Bowden Fred Goodwin Garry Watkins Gemma Ruge Geoff Farr Geoff Fleming Geoff Higgins Grace Keogh Graham Keidge Helen Caruso Helen Newell Ian Atkinson Ian Devenish Jack Milbank Jamie Armer Jane Scowcroft Jane Whyte Jarryd Townson Jason Ephraims Jason Foss Jason Krenske Jason Ramm Jason Rickert Jason Rozycki Jason Spence Jay Daniells Jayne Thorpe Jo Luck Joanne Hall Jodie Stanley Joe Hoolahan John Mlikota John Williams Jordan Murphy Joy Taylor Karl Sheedy Kay Strong Kellie Bowie Kieren Jamieson Kim Kelly Komal Bandi Kristy Gostelow Krystal King Kurt Alexander Kurt Pudniks Kylie Jackson Kylie Radel Lassara Reinke Laura Fealy Leah Harris Leanne Griffin Leanne Rudd Lee Rowlands Lindon Lawn Lisa Christensen Lisa New Luke Brunsman Madonna Iliffe Mark Lalor Mark Matthews mark Robinson Mark Thomas Marlies Hobbs Matt Daniels Matt Drane Matt Hanson

Matt McKinley Matt Templeton Matthew Schultz Michael Jones Michael Kaddatz Michael Kurkowski Michael McGrath Michelle Hoban Mick Storch Mike Goebel Nanjappa Ashwath Naomi Brownless Natasha Wells Nathaniel Armer Neil McPhillips Nick Bennett Nicole Hambleton Nicole Rankin Nigel Wadsworth Nikki Wright Noel Kelly Nola Pontifex Owen Rippingale Patrick Logue Paul Fagg Paul Stewart Paul Wyatt Penny Hall Peter Bender Peter Hockings Peter Peterson Peter Wilson Petros Khalesirad Phil Baker Phil Brown Pierre Viljoen Prashant Murphy Rhonda Whiteside Richard Chappell Rick Palmer Rob Doyle Robert Buhrke Rod Ainsworth Rod Sercombe Rose Swadling Rowena Hardy Roy Pidgeon Roy Wybrow Russell Savage Samuel Costin Samuel Pavin Sarah Palmer Sarah-Joy Pierce Scott Allcott Shaminda de Silva Shane Hannant Shane Ridley Shelley Pisani Simone Dakin Stephen Cheng Stephen Clarkson Stephen Dumment Stephen Moore Stephen Schmidt Steve Howard Steve Knight Steven Hambleton Stuart Elkins

Stuart King Susan MilnerSuzi CarsonSymon PritchettTazman SchmidtTeona CousinTerry HurlockThomas BlockTia Lea AustinTim ButlerTim NealeTim StevensonTracie ReganTrish MearsTroy HainesTroy PettifordWayne StanleyYale Morgan

INTERVIEWSThank you to the following people for generously providing their time to be interviewed for this report:

Andrew BateAndrew BekenhauerCasey Brown Chris Harris Chris MillsDamian Zammit, Daniel ReevesDarren CookeDaryl PostgateDavid MasefieldDavid McCallumDennis MurphyDr Terry McCoskerGarry Ellis Ian AtkinsonJack MillbankJason FossJoe HoolaranJohhny ChengJohn Williams Leanne GriffinLuke Anear Mark MatthewsMat DraneMatt HansonMatt McKinleyMatthew SchultzMick Storch Paul WyattPhil BakerRichard ChappelRoy Wybrow Shane RidleySteven HambletonStuart King Troy Haines

THANK YOU

48

TECHNOLOGY IS NO LONGER A VERTICAL INDUSTRY, AS ITS BEEN UNDERSTOOD BY EVERYONE FOR FOUR DECADES. TECHNOLOGY IS NOW A HORIZONTAL, ENABLING FORCE THROUGHOUT THE WHOLE ECONOMY.”3

JOHN BATTELLETHE ECONOMIST

“

49

1. Goodwin, T, 2015, The Battle is for the Customer Interface. TechCrunch (http://techcrunch.com/2015/03/03/in-the-age-of-disintermediation-the-battle-is-all-for-the-customer-interface)

2. Compass, 2015, The 2015 Global Startup Ecosystem Ranking is live! (http://blog.startupcompass.co/the-2015-global-startup-ecosystem-ranking-is-live)3. Battelle, J, 2015, To fly, to fall, to fly again. The Economist (http://www.economist.com/news/briefing/21659722-

tech-boom-may-get-bumpy-it-will-not-end-repeat-dotcom-crash-fly)4. Andreessen, M, 2011, Why Software is Eating the World. The Wall Street Journal (subscription required) (http://

www.wsj.com/articles/SB10001424053111903480904576512250915629460)5. Broadband Blues, The Economist, 2001 (http://www.economist.com/node/666610)6. Regalado, A, 2013, In Innovation Quest, Regions Seek Critical Mass, MIT Technology Review (http://www.

technologyreview.com/news/516501/in-innovation-quest-regions-seek-critical-mass/)7. The Connected Continent II: How digital technology is transforming the Australian economy, Deloitte, 2015. 8. A Snapshot of Australia’s Digital Future to 2050, IBIS World & IBM, Phil Ruthven9. Kinner, C, 2015, Crossroads: an action plan to develop a vibrant tech startup ecosystem in Australia. StartupAus, Sydney.10. PWC, 2013, The Startup Economy: How to Support Tech Startups and Accelerate Australian Innovation. PWC Sydney11. Marmer, M and Richards, C, 2015, The Startup Revolution Series, Compass, (http://blog.startupcompass.co/

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QR




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THE QUEENSLAND GOVERNMENT IS INVESTING, THROUGH THE ADVANCE QUEENSLAND INITIATIVE, $180 MILLION OVER FOUR YEARS TO CREATE THE KNOWLEDGE BASED JOBS OF THE FUTURE.

52

UNLESS AGRICULTURE PROVIDERS HAVE A DISTINCT EXPORT FOCUS, A NATIONAL PROBLEM IS THAT THERE IS VERY LIMITED SCOPE FOR GROWTH. THE POPULATION OF AUSTRALIA SIMPLY DOESN’T SUPPORT EXPONENTIAL GROWTH.”

JACK MILLBANKCEO, HORTUS

“

53

AUTHORS Nick Markham, Mike Kruger and Jonah Cacioppe from Boundlss. Produced for and in partnership with the Queensland Department of Science, Information Technology & 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. For a copy of the report visit: www.boundlss.com/rq

bn boundlss