State spends up to for start-up accelerator

Premier Roger Cook hopes a $7.2 million spend to attract a UK startup accelerator to Perth will help the state diversify its economy by fostering expertise in biodiversity technology.

Announced at Kings Park this morning, the government's tie-up with Founders Factory includes an investment of $2.4 million annually over three years in the UK venture studio to help it build a presence in Western Australia.

The Founders Factory local team will run four-month programs supporting local startups with product development, operations, commercialisation, data science, partnerships and fundraising in the nature and biodiversity technology area.

Mr Cook said the move was part of a broader push for economic diversification in WA.   

“This is about creating the jobs of the future for Western Australians to really make sure that we pivot out of our great strengths, in oil and gas, mining, biosecurity and the medical and life sciences, to really take forward our economy in a diversified way and continue to create jobs for the future,” he said.

Founders Factory’s government-funded work will focus on areas including reforestation and protection, land management, regenerative agriculture, water and coastal regions, sustainable infrastructure and the circular economy.

The government hopes its presence will attract international founders to WA to invest and scale up locally produced technology.

Innovation and Digital Economy minister Stephen Dawson said the government hoped Founders Factory would assist in retaining some of the WA talent lost abroad or interstate.

“We have many smart people here, but up until recently people have had to go over east or overseas in order to make it,” he said.

“We’ve had companies like Canva start in WA, only to have to move to make it.”

Founders Factory will work with 12 companies each year to assist in scale up and acceleration, with the hopes of uncovering WA unicorn businesses.

“They will hopefully allow our smart people locally to make it big from WA,” Mr Dawson said.

While the government’s portion of the spend is focused on diversifying the state economy, mining will to loom large in Founder Factory’s work.  

The firm will also be supported by Rio Tinto, with an investment in the development of technologies in decarbonisation, exploration processing and remediation work.

“Technology has always been at the forefront of our industry and WA can be the Silicon Valley of the global mining industry,” Rio chief executive Simon Trott said.

“Our iron ore operations in the Pilbara are among the most technologically advanced in the world.

“This exciting new partnership gives us the opportunity to build on our innovative legacy to unlock new technologies and help our business find better ways to provide the materials the world needs.”

Founders Factory has supported more than 300 startups across four continents, and its Perth office will be its first in WA.

“We absolutely believe there’s an opportunity for WA to become a global hub for innovation across the heavy industries in technology, and to uncover great innovators who are able to protect this biodiversity, setting a new standard across the world,” Founders Factory chief executive Henry Lane Fox said.

The Chamber of Commerce and Industry of WA praised the move to secure Founders Factory's work in WA, with chief economist Aaron Morey backing the state to become a key innovation hub in the Asia Pacific region. 

Mr Morey said at present, only 2 per cent of the nation's venture capital investment came to WA. 

 “Our state has the technical know-how to develop new opportunities in areas like automation, biotech, defence, agriculture and decarbonisation technologies,” Mr Morey said.

“The challenge for WA startups is getting the capital and guidance they need in the early stages of development to get these ideas off the ground, and this initiative will help them to do just that.

“The skills and ideas are here and with the right support, WA entrepreneurs can compete on a global scale.”