I’ve just returned from Spacecubed a co-working space in Perth, Australia. I was helping to run the GovHack competition which was a great success all over our country. I had a number of excellent conversations throughout the course of the weekend with a wide variety of people. But most interesting was the general commentary about the Perth startup scene.
Here in Perth we have little exposure to the rest of Australia, the rest of the world or their investors. While we have a mining boom which is sheltering the rest of Australia from an economic downturn the money is being thrown at holes in the ground rather than tech startups. The immediate feeling is frustration, annoyance and sadness about the lost opportunities. Right?
If the experience that Spacecubed has witnessed over the last 12 months since opening is anything to go by maybe we are looking at this all wrong? What they’re witnessing is a number of businesses that aren’t even looking for extra funding, don’t care about the lack of VC’s or being bought out by some big conglomerate. Rather they are effectively being forced into producing businesses that generate income from day one. They literally cannot afford to do anything else.
So whilst many of us in the community often find ourselves pining over more investors, more exposure, more money maybe the better incubation environment is in fact the opposite. Hotter the fire, Stronger the steel.