7 Reasons Startups are expanding to Sydney

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We love Sydney (so we may be a little biased), but if you are wanting to expand your startup business then we think you need to make the move to Sydney. 

Sydney is ranked among the world’s top 20 startup ecosystems alongside Beijing, Shanghai and Singapore, and NSW’s proportion of startup founders is
growing (from 41% to 48.8% since 2016 according to Startup Muster 2018 report) with Sydney named the top location in the Asia Pacific and one of the world’s top ten locations for ‘local connectedness’.

Here is why we believe that Sydney offers huge potential for startups...

1. Retail is booming

At a time when retail is struggling across Australia we are seeing huge International brands opening retail stores in Sydney. Melbourne may claim to be the fashion capital but here in Sydney we have seen Dolce & Gabbana; French luxury giant Kering (who owns brands such as Alexander McQueen and Gucci); and the Swiss watchmaker Breitling all looking for retail space in Sydney. Not to mention Tesla!

2. Fintech Startups and Investors

In 2015 Australia raised 14% of all the money raised worldwide for fintech startups. Fintech startups and investors such as Robinhood and Macrovue are heading to Sydney because this is where the action is. It is the gateway to the Asia-Pacific region making it the perfect location for expanding a fintech operation.

Sydney is a vibrant city which actively supports the startup community with co-working spaces and international hubs for creators, entrepreneurs and startups. There are agencies, universities and government incentives to help fund and develop your startup.

3. Capital Raising opportunities

Sydney is an incredible city not only bursting with innovative startups, but also with an amazing startup culture. Sydney has a strong angel investment and VC environment, with over $182 million combined investment funding raised by startups within the four coworking spaces/incubators at the Sydney Startup Hub in the past 12 months.

The Sydney Startup Hub Regional Landing Pad has had a significant impact in connecting regional startups to the Sydney ecosystem to expand their networks and target business opportunities. The landing pad has hosted over 1,072 meetings for regional entrepreneurs.

The Sydney Startup Hub has become the go-to destination for startup events, hosting 295 events since opening in February 2018, and attracting over 14,000 attendees. Events such as INCUBATE Demo Day are held on a regular basis where startups can pitch for capital. The last demo day at Sydney University had over 20 VCs and investors attend, representing over $1.5 billion in funds under management. 

4. Startups Accelerators and Incubators in Sydney

There are over 25 accelerators and incubators in Australia, from which most of them are located in Sydney. Well-established business accelerators and incubators are available to support a broad range of startups in their early stages. According to Australian Fintech these are some of the best accelerators and incubators you'll find in Sydney:

1. Slingshot
2. BlueChilli
3. Cicada Innovations
4. Fishburners
5. The Founder Institute
6. Incubate
7. muru-D
8. Lakeba
9. Startmate
10. Springboard

Related: Are the Corporate Accelerators better for Startups than Traditional ones?

5. Talent

Sydney has over 300,000 students enrolling in university each year, and Sydney Universities are among some of the most prestigious in the world. So there is some phenomenal talent coming out of the education system with incredible innovations ready to hit the market in Sydney.

6. Government Support

The NSW Government is invested in bringing more business to Sydney and is offering incentives to new business migrants who set up operations in Sydney and wider NSW. This makes it easier for businesses to set up in Sydney.

7. Sydney Lifestyle

Sydney is not only beautiful, but a lot of fun. It has very temperate weather year round, so it isn’t as hot as other Australian cities and doesn’t get as cold in winter, making it the perfect location.

Life in Sydney is built around the harbour, with the Opera House and Sydney Harbour Bridge being only two of the stunning harbour attractions. There are some of Australia’s best beaches just a ferry ride away.

So with all of this in mind we think that Sydney is the perfect location to move your start up to. Oh, and we live here too! So contact us today and we are happy to help you move your operation here and show you around town!

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About Author

Michael Derin
Michael Derin

Michael Derin, Azure Group's Founding Partner and Chairman has over 28 years’ experience as a qualified Chartered Accountant within the business and commercial sectors. Michael works across our Technology, Corporate Advisory and CFO operations, managing highly complex projects to success.

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