NEW VIEW: The federal innovation incentive is good news for startups. Photo: Stockphoto

Back door closes as another opens

The political and regulatory climates appear to have synergised, making increased private investment in the startup sector more likely.


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Great analysis Marcus. Looking forward to see the State Government step in to help out the local startup scene a little more too :)

Its certainly better in many instances to have private investment - if it exists. And I agree that the incentives are getting better, helped also by the synchronicity you describe. It will be great to see a shift in the risk investment patterns of Australians maturing beyond speculative, short term, "liquid" securities. But will it happen? Lets hope so. Assuming that private investment will now experience strong growth, you will still find that some startups with potentially global scale will simply not make it by relying on private funding or by building up their business for years and then proceeding with an IPO. Depending on the technology, the startup may not have the luxury of developing the Australian market first and then going to larger markets offshore. By that time, their window of opportunity may be closed. There is certainly a role for access to listed capital early in the lifecycle of some businesses and this should be done "eyes wide open" with full awareness of the downsides. "Backdoor listing" should not be a pejorative and the practice should be employed for the right reasons. In implementing the recent changes to Chapter 11 of the listing rules, let's assume the ASX wanted to catch the cowboys associated with "backdoor" listings. However these changes have punished everybody, and caused a raft of (possibly) unintended consequences. "Ready fire, aim, adjust, fire again" is not the ideal way to make and implement policy.

Agree with the comments 100%, and another excellent piece from Marcus. It is interesting that yesterday, (as written here by Mark Beyer: there was the first announcement of a tech listed business converting to a mining business ... a reversal of the 60 or more mining companies that have recently announced/completed the move from mining to tech. Is this a 'moment' I wonder?

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