Sydney's startup hub could be hit by government funding cuts
The Australian startup sector is becoming the latest victim of belt tightening by state governments, raising questions about the long term support for the industry.
Over the weekend, and just one week out before the NSW government budget is announced, a press release hinted at startup sector funding cuts, including a withdrawal of support for the much-lauded Sydney Startup Hub.
The joint release by Innovation, Science and Technology Minister Anoulack Chanthivong and Arts, Jobs and Tourism Minister John Graham blamed the previous government for funding gaps and said that cuts were inevitable.
Across the border in Victoria, the Andrew’s government quietly shelved LaunchVic’s Fund of Funds initiative, a $60 million cornerstone investment in the Victorian Startup Capital Fund, which was announced in February last year, redirecting budget allocated for it elsewhere.
The cuts have left many in the community questioning whether state governments remain committed to growing their respective startup sectors after falling over themselves to support the industry in the not-too-distant past.
The Sydney Startup Hub was originally a $35 million commitment over five years, with a gradual reduction in funding as it became more viable, and it's viewed by many as a prime example of the government getting it right when it comes to startups.
It’s a sprawling 17,000 square metre, 11-floor building that is heritage-listed in parts and located in Sydney's Wynyard Green. It’s home to Australia’s longest-serving startup community Fishburners, emerging tech community Stone & Chalk and Tank Stream Labs and has a large co-working space as well as a regional landing pad.
According to its own underwriters, Investment NSW, the hub has created nearly 6000 jobs since launching in 2018.
