Hey Jeromy,

Here's my 2cents worth (used to be only 2 paisa worth till 3 weeks ago :)

I've been in the startup space for a while, particularly in India for the
last 3.5 years (and just came back home to Sydney).

Dealt with some VC's there, and all the rage about developing nations, but
having a lot of on-the-ground experience over there, i realise, you pay
peanuts, but you do indeed get only monkeys!

* Sydney/Australia is one the very few "developed" nations that is doing
economically well and has *very very good quality people willing to take
chances*
* Developing nations come with a whole set of challenges, and unless you
know *exactly* how to navigate those, being a startup there is nearly
impossible! The red tape itself kills you! *Some* people there are
fantastic, but you can't be a one man band, context does change
everything...

Probably won't come as a surprise to people, but the good people there (be
they few and far between) in some cases charge so much, that when i
got outsourced work from Aus to India, i used it further outsource it to the
US :) (especially for iPhone development).

On another note, the context in developing nations is so different, that you
need totally different solutions... so if someone (from the west) is
investing in a startup to come up with solutions to problems that they
understand, they must do it "in the west; or so far east that it's in
australia :)" - in developing nations, the same issues just don't exist, and
them problems will not lend themselves to being solved there.

As every apple product says: "designed in california" - the design to
solutions, the thinking work, must be in the context of where the problem
is... the dogs work can be outsourced... and hence i suspect, the money
raised by startups here, some of it will flow to other countries for
execution anyway.

simran.



simran.


On Wed, Oct 5, 2011 at 10:15 PM, Jeromy Evans <[email protected]> wrote:

> More than ever before (I think), new angel funds and incubators are
> appearing for tech startups in Aus.
>
> This is awesome, but what's the underlying reason for this?  Most
> industries are pretty low, consumer sentiment is pretty low and until
> recently the Australian dollar was unattractively high. Despite the
> high risk of failure, funding several tech startups with smaller
> investments must be more attractive than other ways to use that money,
> at the moment.
>
> Is this a side effect of The Social Network and the recent high
> profile high valuations in the US, or is there something else going on
> here? Is there a groundswell?
>
> cheers,
> Jeromy Evans
>
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