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In relation to CA and the IIF, the Government's Commission of Audit (CoA) report states: “there is no clear reason for the Commonwealth to provide this assistance in competition with private sector providers.” While it would be wonderful if this was true and Australia's technology sector was highly competitive internationally, and churning out tech startups that were the envy of Silicon Valley VCs. The reality is that our tech sector is young, small and malnourished compared to global norms. Perth's per capita early stage funding is ~$3/person/year compared to Silicon Valley's average of $3,945, Israel $170, USA $75, Norway $50, France & Britain $14, New Zealand $10 and the 2012 Australian Olympic team $14. Investors need good deals, and despite all the hype that you can build a billion dollar company on ramen noodles and a laptop, startups still need funding to build the innovative tech that attracts money - whether that be from a customer or investor. It's a catch-22 situation that in the valley is bridged by experienced super angels that consider early stage funding a hobby. In Australia's case we either need wealthy miners to start taking punts on early tech or government to help bridge the gap. Probably both. One of the strengths of CA (despite the CoA's uninformed comments) was that CA funding didn’t compete with private sector funding sources, rather it was matched funding that facilitated and encouraged private sector funding. If we don't create a healthy local funding market that attracts foreign investment in innovation (like Israel successfully does), founders - whether that be Twiggy from Fortescue or the boys at Atlassian - will continually seek capital from US and European markets.