Updated 10:29 Wednesday 11th Jan 2017
Some of the world's top defence technology companies are getting behind a new startup accelerator program launched today in Adelaide.
Techstars has graduated 900 startups in the US with a combined market cap of US$7.5 billion, and its new Asia-Pacific program in Australia will be the first to be focused on commercialising innovation from and with the Defence Industry.
Minister for Defence Industry Christopher Pyne welcomed Techstars’ launch of its first Defence and Security Accelerator in Adelaide.
“Techstars Adelaide is designed to support companies to develop and commercialise state-of-the-art technologies connected to the defence and security sectors,” Minister Pyne said.
This is a welcome and encouraging step for new collaboration across defence industry, which will be critical to meeting the challenges of the future. Initiatives such as these are very welcome and will support the defence market to mature advanced technologies to a level that are ready for Defence consideration, including through the Innovation Hub,” he said.
The Innovation Hub will provide equal opportunity for all participants from small to medium enterprises to prime defence contractors to put forward their ideas.
Techstars Adelaide will work with 10 startups in areas like IOT, Sensors, Robotics and Big Data to help them rapidly develop their tech and go-to-market strategy. On average, each Techstars graduate secures US$2 milion in funding.
Techstars co-founder and co-CEO David Cohen said while scouting the Asia Pacific for potential locations for first accelerator in the region, the company wanted a place that would not only attract terrific founders, but also had all the hallmarks of a successful Techstars host city.
“We started in Boulder, Colorado, and have seen it develop into a major North American startup hub – so we know that Techstars can play a major role in building great startup eco-systems.”
Techstars co-founder and co-CEO David Cohen. Credit: Techstars
Cohen said Adelaide fitted the bill perfectly.
“Not only is it ranked by the Economist Intelligence Unit as the fifth most liveable city in the world, it has been recognised by the G20 for its coordinated support for entrepreneurship,” he said. “It is a tech-forward city that is building sophisticated infrastructure for startups. Last year it became the first international ‘GigCity’, and Cisco’s only ‘Lighthouse City’ for innovation in Australia.”
Successful applicants will receive the equivalent of US$120,000 in funding and relocate to Adelaide to take place in the program, which includes mentoring from Techstars global network of experts, as well support and collaboration from some of the world's top defence technology companies, including BAE, Thales, Austal, Saab, ASC, Rheinmetall and DCNS.
Jim McDowell, former CEO of BAE Systems Australia, non-executive director of Austal and also Codan said it was a great opportunity for the defence industry, Australia and the wider region.
“In fact, it is probably the first opportunity in the history of defence procurement for a broader economy to benefit from private and public defence investment through a proven, world-class system of innovation acceleration and business growth.
“In one year’s time we will have ten new companies operating in the tech space here in South Australia, and in five years’ time at least 50 new companies bringing new technology from the defence industry to the world, and from the world to the defence industry,” he said.
Applications for Techstars Adelaide are open, with submissions closing on 9 April 2017 and the program slated to commence in July.
For more details on the application process and what to expect from a Techstars accelerator, visit their website FAQs.