\ Latest research from the Financial Services Knowledge Hub – Committee For Sydney

Media Release

Latest research from the Financial Services Knowledge Hub

October 12, 2015

[spb_row wrap_type=”content-width” parallax_image_height=”content-height” parallax_image_movement=”fixed” parallax_image_speed=”0.5″ bg_video_loop=”yes” parallax_video_height=”window-height” parallax_video_overlay=”none” row_overlay_opacity=”0″ vertical_center=”true” width=”1/1″ el_position=”first last”] [spb_blank_spacer height=”30px” width=”1/4″ el_position=”first”] [spb_image image=”1981″ image_size=”full” frame=”borderframe” intro_animation=”none” animation_delay=”200″ fullwidth=”no” lightbox=”yes” image_link=”http://localhost:8888/sites/CFS-custom/wp-content/uploads/2015/10/Building-on-the-start-up-ecosystem-in-NSW-from-grants-to-collaboration-Sydney-Issues-Paper-No.-9-1.pdf” link_target=”_blank” caption_pos=”hover” width=”1/2″] [spb_blank_spacer height=”30px” width=”1/4″ el_position=”last”] [spb_text_block animation=”none” animation_delay=”0″ padding_vertical=”0″ padding_horizontal=”0″ width=”1/1″ el_position=”first last”]

MEDIA RELEASE

Monday 12th October, 2015

The Committee for Sydney has today released the latest research from the Financial Services Knowledge Hub, exploring the start-up ecosystem in NSW and making a number of recommendations, including consideration of an angel investment scheme to stimulate the availability of capital and provide tax-relief for investors.

Following the success of the Committee’s October 2014 Fintech report, the Committee has again collaborated with KPMG to explore the current start-up environment in NSW.

“We are pleased to release this report today and in doing so also applaud the NSW Government’s efforts to work with the private sector to develop other forms of support,” commented Dr Williams, CEO of the Committee for Sydney, on the release of the report.

“This research serves to highlight the breadth of interventions that are possible and examines specific models successfully being implemented in other global cities, that, if introduced in Sydney could enhance the pool of capital and talent supporting the thriving start-up ecosystem we already have,” Dr Williams continued, referring to the recommendation to further explore the UK’s SEIS and EIS tax incentives for investors.

The NSW Government programs are designed with an eye to reducing complexity for applicants, and providing transparency, and our research reinforces that these efforts are important and valued. However, the research also suggests that direct financial support in the form of grants is fundamentally challenging for both start-ups and government because of the requirements to demonstrate probity and appropriate use of taxpayer funds.

James Mabbott, Head of Innovation Services at KPMG, who led the research, commented on the opportunities available to start-ups looking for support in Sydney.

“There is still much debate to be had about the overall benefits of direct grants to start-ups compared to other government support mechanisms. What is clear is that for those grants and initiatives already existing, there is a big opportunity to improve how they are delivered to the start-up ecosystem, and raise awareness of what options are out there for Australian ventures.

“The R&D Tax incentive is both the most easily accessible and widely used government support mechanism for start-ups in Australia. It is a great example of how government can support our start-up ecosystem without picking favourites. In fact, the only area for improvement noted by start-ups themselves would be to allow it be claimed in shorter intervals than yearly, in order to help them better manage cashflow,” Mr Mabbott concluded.

The Minister for Industry, Resources and Energy, the Hon. Anthony Roberts, noted that this latest piece of research demonstrates the insight that is emerging from the NSW Government supported Knowledge Hub initiative.

“The Knowledge Hubs are providing a platform for collaboration between the private and public sector,” Minister Roberts commented.

“The latest research from the Financial Services Knowledge Hub challenges Sydney to do better, as it did with the Fintech report. It also provides both the public and private sector with an evidence base to enable improvements in the way start-ups are supported, ensuring Sydney continues to compete on the world stage,” he concluded in response to the findings of the report.

The report is timely, with knowledge jobs becoming an increasingly significant driver of the economy as Australia moves away from a resources based economy. This reality demands a reassessment of the policy levers available to support the new economy, and specifically the best forms of support for the start-up ecosystem. Through research such as this, the Committee for Sydney is focused on securing Sydney’s position as a globally recognised start-up hub.

The full report can be viewed and downloaded from our website here.

The Financial Services Knowledge Hub is one of 5 Industry led Hubs initiated by the NSW Government. This Knowledge Hub will work to make the business environment more attractive and Sydney’s financial services sector more innovative and competitive through industry based projects, and in conjunction with the NSW and Australian Governments.

For more information on the Financial Services Knowledge Hub visit the Committee for Sydney website.

[/spb_text_block] [spb_divider type=”standard” text=”Go to top” top_margin=”0px” bottom_margin=”30px” fullwidth=”no” width=”1/1″ el_position=”first last”] [spb_text_block animation=”none” animation_delay=”0″ padding_vertical=”0″ padding_horizontal=”0″ width=”1/1″ el_position=”first last”]

The Financial Services Knowledge Hub is one of 5 Industry led Hubs initiated by the NSW Government. This Knowledge Hub will work to make the business environment more attractive and Sydney’s financial services sector more innovative and competitive through industry based projects, and in conjunction with the NSW and Australian Governments.

For more information on the Financial Services Knowledge Hub visit the Committee for Sydney website.

[/spb_text_block] [/spb_row]

Subscribe for the latest news