Successful Australian Startups

 by Richard Hayes

 

What is a Startup?

 

How do you define 'success?'

 

Who are they?

 

Why are they successful?

 

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If we are trying to showcase successful startups we should start with a definition.

 

A "Startup" is a new company with  limited operating history. 

 

All ventures are startups at some stage but the term is normally used to describe a new company using advance technology. The aim is to grow from quickly and become a large enough for purchase by another company (trade sale) or list the firm upon the stock market (Initial Public Offer).  Trade sales outnumber the IPOs about 10 to 1.

 

What is Success?

 

Browning descibes success as:

"To laugh often and hard

to win the respect of honest critics and the affection of children

to leave the world a better place through a healthy garden or a health child"

 

But in the world of  venture captalist, success is defined by Return on Investment.

The bigger the better. VCs want at least 40% pa

 

 

Richard's list of Successful Startups in no particular order

 

1. Fortescue Metals Group

 

FMG is a startup due to the fact that the company has yet to ship any product.

 

The company listed on the ASX in 1987 and has a market capitisation of about $14 Billion.

Andrew Forrest the founder CEO owns about $5 Billion worth of shares.

 

2. Remember the Milk

 

RTH is consistantly rated in the top 20 webapps globally. 

 

They have approximately 300,000 registered accounts and if you value an active account at

$80 per account  RTM is worth several hundred million.

 

Emily is a former young Australian of the Year and both were finalist in BusinessWeek Asia's Best Young Entrepreneurs 2007.

 

3. Radiata Communications

 

"Radiata was founded by two adjunct professors of the Electronics Department in 1998, Neil Weste and David Skellern who successfully commercialised their wireless LAN technology. The company developed a broadband modem chip compatible with the 802.11a 54Mb/s wireless LAN standard, descended from the DMT-50. It also developed a 5GHz RF chip in CMOS. The company grew rapidly to a work force of 60 by the end of 2000 and was bought shortly after by communications giant Cisco Systems for $567 million as part of their strategic plan move into the enterprise wireless networking market."

iWCS MQ

 

This is one of the few times Australian academics got to keep substancial rewards for the success of their discoveries.

 

4. Suntech Power

 

Shi Zhengrong is the richest person in China and is an Australian citzen.  He has a PhD from UNSW and return to China to establish 

a solar photovoltaic cell manufacturing in 2001.  He acquired equipment cheap from a company that failed.  Also, the Wuxi local government offered  cheap land and other assistance.

 

In December 2005, Suntech listed on the NYSE making Dr Shi the world first envirometal billionaire.

 

 

 

 

Interesting Links

 

Seattle Saturday House

 

Start a company in 8 hours

 

 

Startup Weekend

 

Have you ever wondered what a group of highly talented and motivated people could accomplish in a weekend?