Focus on trust critical as tech start-ups enter funding sweet spot
Getting conduct right is increasingly critical
30 July 2018: There’s never been a better time for Australian tech start-ups and growth stage businesses to access funding, as venture capital, superannuation funds and crowd funders jostle for a piece of their success.
But with funding in place, getting conduct right is also increasingly critical as emerging businesses execute their rapid growth strategies.
Launching nominations for the Deloitte Technology Fast 50 2018 Australia program – which has been associated with the likes of Atlassian, Prospa, Vocus Communications, Vinomofo, Siteminder, NextDC – Deloitte Private partner and Technology Fast 50 program leader, Josh Tanchel, said: “Our local technology start-up market has delivered some outstanding world-leaders and continues to thrive, and evolve, at a rapid pace.
“Driven by a combination of innovation and entrepreneurship, customer-centric tech start-ups here in Australia, as well as globally, clearly continue to transform the way business is being disrupted, reimagined and being done, and their success is making them increasingly attractive to multiple sources of capital.
“The funding market, so important to start-ups is, in fact, entering something of a sweet spot. Venture capital and crowd-source equity funding remain vital for the early stages. And for those more mature businesses, successful public listings – think of the likes of WiseTech Global, Appen, Audinate, Elmo and Zipmoney – also demonstrate investor appetite for the right growth businesses.”
Tanchel said however, that rapid growth businesses must maintain a focus on trust as they executed their growth strategy.
“Trust absolutely needs to be top of mind in today’s rapidly changing environment, where a number of established and successful businesses – in Australia, and globally – have been confronted by what can happen when things go wrong and culture fails to align with community expectations.
“Just as big businesses have big responsibilities when it comes to conduct as an invaluable commodity, so do growing businesses. They should certainly learn from the experiences of the financial services and technology sectors. Trust is, today, a non-negotiable obligation as a business grows.
“They might have great ideas, products and services, but social licence has to be earned, and then maintained as they scale their operations.”
For close to 20 years, we have championed Australia’s gazelles through the Technology Fast 50 program, and the maturity of the market can be seen by improvements in the calibre and diversity of entries.
“Last year’s Technology Fast 50 had the highest average revenue growth rate ever seen, at 664%, and more than seven nominees had experienced over 1000% growth,” Tanchel said.
Last year’s Technology Fast 50 winner – Hireup
The 2017 Technology Fast 50 overall winner was online disability support operation Hireup, which achieved more than 7700% revenue growth over the three years to FY17.
Tanchel said: “Hireup represented a number of firsts for the Technology Fast 50. Firstly, it operates in the healthcare sector and, secondly, it’s a profit–for-purpose led business, harnessing technology to bring the peer-to-peer economy to the National Disability Scheme.
“It’s growth and success just demonstrates again the value real technological innovation and ambition can play in addressing societal challenges in new and more effective ways.”
About the Deloitte Technology Fast 50
The Deloitte Technology Fast 50 Australia is a unique platform that recognises and profiles fast growing technology companies – in any sector. Now in its 18th year, the program ranks the 50 fastest growing public or private technology companies, based on percentage revenue growth over three years.
Sponsored by ASX and DLA Piper, the program not only celebrates the success of Australia’s fastest growing technology companies, but provides ongoing support, opportunities to connect with potential investors, and helps put them on the map – both domestically and globally. And by making Australia’s top 50, companies are automatically nominated for the Deloitte’s Asia Pacific Technology Fast 500.
Award categories are:
- Overall – highest ranking growth company based on more than $8 million in revenues over the last three reporting years
- Leadership – for companies with more than $50 million in revenues in the last reporting year
- Rising Star – for fast growth businesses that have been in operation for less than three years