Episode Summary:
Cheryl Mack and Maxine Minter reflect on the year 2023 and discuss the challenges and trends in the startup ecosystem. They talk about the tough environment for founders and investors, with many companies struggling to raise funds and facing down rounds. However, they also highlight the resilience and determination of founders who were able to survive and even thrive in the face of adversity. The hosts discuss the increase in funding for female founders, although there is still a long way to go in achieving gender parity in the industry. They also touch on the growth of climate tech and AI as key areas of investment, with these sectors propping up the funding ecosystem. Cheryl and Maxine express cautious optimism for the year 2024, noting the need for continued creativity and resilience in the face of challenges. They also highlight the importance of addressing issues of behaviour and inclusivity in the startup ecosystem.
Episode Sponsors:
Chapters:
00:05 – Introduction to the podcast
00:25 – Reflecting on the year and the challenges faced
02:02 – Difficulty of raising funds and the resilience of founders
04:32 – Founders’ determination to survive and adapt
05:08 – Employment Hero becoming a unicorn
06:31 – Tentative re-entry of international investors into the Australian ecosystem
07:38 – Gap between top founders and average deals narrowing
08:49 – Overpaying in the early stages of funding
09:05 – Australian tech facing criticism from the media
10:46 – Turning point in sentiment with SVB collapse and Milk Run
11:18 – Discussion about the impact of FTX and Sam Bankman-Fried’s sentencing
12:13 – AI and climate tech propping up the funding industry in
2023 13:56 – AI adoption curve and its impact on the legal tech industry
15:01 – Tight capital environment in Q1 and Q2 of 2023
15:32 – Increase in interest and funding for climate tech
17:10 – Rise of climate tech-focused funds in Australia
18:19 – Lack of AI-focused funds in Australia
20:06 – Creativity in funding and rise of professionalized fund management
21:30 – Optimism about more fund raising in 2024
21:52 – Increase in funding for female founders, but still low overall
22:33 – Matching population demographics
22:48 – Lack of data on women-led funds in Australia
23:16 – Optimism and creativity in investing
23:53 – Early-stage startups cushioned from headwinds
24:23 – Emotional roller coaster in 2021
25:08 – Goal to surpass 2020 funding levels
25:51 – Cautiously optimistic about 2024
26:45 – Focus on behavior standards in the ecosystem
27:30 – Serious conversation on behavior in Australia
28:04 – Cautiously optimistic for the future
