FAQ
SYDNEY STARTUP HUB FAQ
Contents
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Background
EoI applications
EoI evaluation process
The Sydney startup hub
About the site
Key performance indicators
Additional information
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BACKGROUND
What is the Sydney startup hub?
The Sydney startup hub is an exciting initiative led by Jobs for NSW which will cement
Sydney’s position as a global innovation destination, and an internationally leading
startup location.
Based in the CBD, it will provide a focal point for the NSW startup community
(including incubators, accelerators and other partnering services) and support a
pipeline of future job-creating businesses. Created in response to the startup
ecosystem’s request for Government support and in collaboration with a broad range
of industry stakeholders, it will provide access to networks, skills, funding and
leadership from one central hub. As a high-density startup cluster, it will be a ‘one
stop shop’ for the metropolitan, regional and international startup community.
What are the main objectives for the Sydney startup hub?
The three main objectives in establishing the hub are to:
 Support the creation of new jobs across NSW
 Increase the diversity of the NSW startup community with more startups from
regional NSW and non-ICT Industries
 Grow the size and strength of the Sydney startup ecosystem
Why is Jobs for NSW leading the development of the Sydney startup hub?
By nurturing and supporting NSW’s startup ecosystem, we can encourage a pipeline
of future job-creating businesses. We know that small to medium enterprises (SMEs)
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are the net creator of all new jobs in NSW. Over the past six years, that these
businesses made up just 6% of NSW firms but created over 1 million new jobs.
By creating a stronger entrepreneurial ecosystem, including opportunities for
collaboration, and providing greater access to early stage funding, we are supporting
more of these businesses to scale. The hub will provide a central location for the NSW
startup sector that will generate a variety of other benefits including a larger talent
pipeline and greater exposure to innovation.
The Sydney startup hub will also help address challenges specific to our innovation
ecosystem such as the limited availability and affordability of office space for
incubators, the need for more diversity in terms of the type of businesses that are
scaling, and the need for more investable ideas.
Experts and industry leaders also recommend that governments at all levels work
with industry to establish a national network of innovation districts in major cities.
What areas are you looking to strengthen through the Sydney startup hub?
NSW has one of the most successful and dynamic economies in the world and Sydney
ranks in the top three startup ecosystems in Asia, a sector worth A$70 billion to the
NSW economy (NSW Innovation Strategy).
Our startup ecosystem has come a long way in the past few years and has
contributed significantly to the innovation, ideas and talent that drive NSW’s economic
growth. But with the right nurturing and support systems we can help entrepreneurs
flourish, making Sydney a startup powerhouse that competes with other
internationally leading cities.
EoI APPLICATIONS
How strong was the response to the Expression of Interest (EoI)?
The response to the request for EoI was very strong – both in the number and calibre
of applications.
Where are you up to in the EoI process?
The process is ongoing. We are working with selected parties to gather further
information that will inform our decision on the location and makeup of the building.
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When will applicants be advised whether their application is successful or
not?
All unsuccessful applicants (e.g. who cannot be considered for shortlisting as their
application did not meet the criteria) are being advised.
We are currently in the process of advising and updating shortlisted applicants on the
status of their application and aim to confirm successful applicants around late May /
early June 2017. Timing is contingent on factors such as the outcome of negotiations
and Board approval.
Why was an application rejected / not successful?
There are a number of reasons why an application may not be successful. It’s
important to note the EoI attracted a large number of applications and the field was
highly competitive. Regrettably, we are unable to offer all interested parties a place in
the Sydney startup hub.
Each application was reviewed closely by an independent advisory committee
featuring representatives from across the public and private sector who assessed
applications against the evaluation criteria. Typically, unsuccessful applicants either
did not meet the criteria or demonstrate alignment with the key objectives outlined in
the EoI for the Sydney startup hub:
 Create jobs
 Increase the diversity of the NSW start-up community with more start-ups for
regional NSW and non-ICT industries
 Grow the size and strength of the Sydney ecosystem.
Can you give me more detail about why applicants were not shortlisted or
unsuccessful?
Reasons for applications not being shortlisted include:
 Other applicants scoring higher against the criteria. For example, other applicants
had a superior track record in startup community engagement
 Not meeting minimum eligibility criteria (e.g. experience, insufficient ROI, or
suitability i.e. they may be better suited to locating within an incubator)
 An application did not sufficiently consider or was not aligned with the key priorities
(i.e. job creation, diversity and size and strength of the ecosystem)
 Funding expectations / requests did not align with or suggest a likely or appropriate
return on investment
 Insufficient detail around how applicants would meet the criteria or help fulfil our
specific objectives
 Value propositions were not sufficiently clear
 Track record (e.g. lack of demonstrated or relevant experience)
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 Low demand for services
If the submission we propose is not successful can we re-submit a different
solution?
The EoI is now closed and we do not expect to reissue a call for EoIs.
If an organisation’s application is unsuccessful will it still be eligible for
other support from Jobs for NSW?
Jobs for NSW is committed to supporting NSW based entrepreneurial businesses that
create new jobs. We provide help in a number of ways including the provision of
financial support via a suite of products such as grants, loans and loan guarantees.
For information on available support from Jobs for NSW visit www.jobsfornsw.gov.au.
How will the Sydney startup hub complement existing Government programs
and initiatives?
The hub is designed to complement a number of existing NSW and Australian
Government programs. Together, these programs work to stimulate all stages of
business development, including R&D, commercialisation, starting a business and
growing a business. For example, the hub will work closely with the Sydney School of
Entrepreneurship, which will skill-up our future entrepreneurs and grow the talent
pipeline.
EoI EVALUATION PROCESS
How robust is the evaluation process?
The evaluation process is comprehensive, robust and transparent. The evaluation
process featured three multi-stakeholder committees that reviewed all applications
using weighted evaluation criteria; plus a probity advisor and note taker was present
throughout the process.
Further, EoI applicants were asked to address a range of criteria and to provide
additional evidence (such as a three-year business plan) to assess their applications.
The final recommendations were then presented to the Independent Advisory
Committee and approved for shortlisting (i.e. which proceed to direct negotiations).
These recommendations were put forward based on the guiding principles for the
determination of funding support as set by the Management Committee.
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Further direct clarification will also be conducted one on one through direct outreach
with shortlisted applicants.
What were the evaluation criteria for EoI applications?
EoI applications which met the initial brief of being an incubator, accelerator or
related service were then assessed against the criteria listed below (not indicated in
any order of significance or weighting).
 job creation potential
 experience and demonstrated track record of supporting the startup community
 evidence of pipeline of demand for startups seeking to enter incubator space or
accelerator program
 quality of business plan
 gross floor area required and area utilisation rate
 funding support requested
 risk assessment.
What will be the final cost of the hub?
This opportunity will be a significant investment for the NSW Government but will be
in line with the job creation objectives of the Jobs for NSW Fund and the existing
incubator and accelerator program.
As we move through the EoI process we will gain a deeper understanding of what
assistance organisations require to be part of the Sydney startup hub, as well as what
investment they will make.
As always, value-for-money will be a key factor in any decision, with the ultimate aim
to strengthen the NSW economic position and grow new jobs across the state.
THE SYDNEY STARTUP HUB
When will Sydney startup hub members be announced?
Subject to final approvals, it is our intention to announce the members around late
May / early June.
As the EoI process is ongoing, we are unable to comment on specific applicants
What happens as successful startups grow? Will they need to exit the hub?
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We are primarily focused on job growth in NSW and therefore it is likely that a
measure of success would be startups growing and exiting the hub to continue their
expansion, and to allow other emerging businesses to come in.
Is there a cap on the number of employees per start up allowed in the hub?
For the first year, there will no cap on maximum employees per startup within an
incubator’s space. However there will be a cap a maximum of 20 employees per
startup in year two and thereafter. The cap is to enable throughput and ongoing
access to new startups – and this will provide further support for new and smaller
players to grow / join the hub.
Are there similar initiatives in other parts of the world? Can you provide
some examples?
Yes. A number of global peers already have startup hubs. For example, the
Cambridge Innovation Center (CIC) in Boston has been in operation for almost 20
years, supporting high-growth companies through a network of startup partners,
including investors and service providers. Since inception, CIC companies have added
an estimated 40,000 jobs to the economy and the four largest venture capital funds in
Massachusetts have relocated their offices into CIC, further encouraging growth. CIC
has demonstrated that a large scale hub located within a CBD can create the critical
volume of meetings, events, access to mentors and talent that enable startups to
thrive.
Another example is Station F in Paris. Based in a former railway depot, it aims to be
the largest startup campus in the world. It has around 34,000m2 of space, covering
eight event spaces and 3,000 workstations. Opening in April 2017, Station F will
house up to 1,000 startups alongside incubators, accelerators, investors, and leading
companies such as Facebook.
What sectors is the hub focusing on?
Currently we are in the process of determining which organisations will join the hub
however diversity was a key consideration from the outset. We have commenced
direct negotiations with the prioritised applicants (starting with incubators and
accelerators).
How will you ensure diversity within the Sydney startup hub?
We are looking at applications from a wide variety of organisations within the
ecosystem. This includes smaller and larger firms; newer and more experienced
firms; organisations representing both the profit and not-for-profit sector; regional
and metropolitan organisations; and firms across a range of sectors (e.g. beyond
ICT); and those supporting underrepresented groups (e.g. women, disability sector).
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We will also actively manage the number of representatives from different firms to
enable throughput and ongoing access to new startups. For example, we have
determined that for the first year, there will be no cap on maximum employees per
startup within an incubator’s space. However there will be a cap a maximum of 20
employees per startup in year two and thereafter. The cap will facilitate access for
new and smaller organisations to join the hub.
Why does the startup ecosystem need government help?
While Australia has a startup rate that compares well with other similar countries,
fewer of our startups survive to go on to scale. We intend for the Sydney startup hub
to be a magnet for the startup ecosystem - not only bringing talent and investment
here but also being a globally relevant focal point, placing Sydney as a global
innovation destination and in turn creating jobs for the future.
With 100 per cent of all new jobs came from small to medium enterprises in the last
six years – this underpins the call to action for government to invest in strengthening
the startup and small to medium enterprise (SME) community as the powerhouse of
job creation.
Does the Sydney startup hub compete with other locations?
The Sydney startup hub will work collaboratively with other organisations across the
startup ecosystem, ensuring that the needs of the entire NSW startup community are
being met.
For example, rather than being a site for a single incubator, the Sydney startup hub
will assist multiple incubators, accelerators and facilitate access to related services.
How do incubators and accelerators benefit startups?
Incubators and accelerators support startup and fledgling companies by providing
entrepreneurs with an array of targeted resources and services to successfully
develop their business. In addition to providing dedicated space to work from, they
facilitate more opportunities for introductions to networks, mentors, suppliers,
customers, investors, linked businesses and people with similar aspirations – helping
provide a more accessible pipeline of talent.
With an estimated 80 – 90 per cent of startups failing, high-quality incubators and
accelerators significantly improve their chance of success, and according to the 2016
Crossroads Report, are integral to successful startup ecosystems.
Incubators and accelerators both encourage a cycle of investment in growing
businesses, however accelerators also provide financial support, such as early stage
funding and have equity in the business. When these businesses go onto succeed, this
enables further investment in other startups.
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ABOUT THE SITE
When is the hub expected to open?
We anticipate the hub will be opened in Q4 2017.
Where will the site be?
A number of potential sites are currently being considered all of which are in the
Sydney CBD. This will ensure that the startup community remains well connected with
itself, clients, mentors, investors and other members of the ecosystem.
The preferred site will be chosen based on size, amenities, location and affordability.
It will have the space to bring together large and small entrepreneurial businesses
from across the NSW startup community and will have the amenities needed to
ensure people and their organisations prosper.
When will the site be available for inspection?
Shortlisted EoI applicants will be able to inspect the site prior to the finalisation of any
agreements.
When will the space be accessible for use?
We anticipate operations to commence in Q4 2017. An exact date has not yet been
nominated as we will need to secure the site and complete the fitout.
How will the site be branded?
There will be determined in consultation with stakeholders including successful
applicants and Government partners.
What types of industries or sectors are suited to the Sydney startup hub?
The hub is directed at organisations such as incubators, accelerators and related
organisations (such as industry groups, research institutes, capital partners and
others) who provide support to the startup community. Particular industries or sectors
were not one of the EoI criteria as we are looking to ensure that there is a diversity in
the offering.
Why is the startup hub located in Sydney and not a regional location?
Sydney is the innovation entry point for entrepreneurs and startups to access
opportunities across NSW. It is also the landing pad for essential foreign investment,
technology and talent.
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The hub will also help startups throughout NSW with regional support via a regional
landing pad. We envisage a space where people from regional NSW connect with the
metropolitan startup ecosystem and vice versa (either remotely or physically) with
people learning from each other, leveraging skills, ideas, networks and investment.
Why is a CBD location necessary?
A CBD location is essential for a wide range of reasons, underpinned by the wider
infrastructure the location provides including transport, accommodation and leisure
activities.
It provides a central and dedicated focal point to support, showcase and connect the
local, regional, national and international startup community. All of this is critical to
nurturing NSW’s start up ecosystem and attracting the pipeline of job-creating
businesses.
How will the Sydney hub benefit regional entrepreneurs?
The Sydney startup hub provides a dedicated point of entry for entrepreneurs and
startups to tap into the startup ecosystem and access opportunities across NSW.
It will provide working space and facilities for regional startups needing to visit
Sydney for business, events or investment discussions, and connect regional NSW
with the metropolitan startup community and the wider ecosystem, and vice versa.
Infrastructure that enables regional organisations to be part of the hub – either
remotely or physically – will also available. This means regional entrepreneurial
businesses will no longer need to relocate to Sydney to access this support, ensuring
they can grow their business and drive subsequent job creation that directly enhances
their regional community.
How will the overall building be managed?
This is yet to be determined.
What if my organisation already has a signed lease?
It will be a decision for individual organisations whether or not to partner with the
Sydney startup hub but we expect many will recognise the benefits of co-locating in a
central facility where economies of scale and the benefits of a high-density innovation
cluster will be maximised.
Who pays for the fit-out?
We expect to work with the hub’s occupants to agree fitout costs to ensure best value
for money.
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FAQ
Why have you revised the cap on the maximum number of employees in the
hub?
The revisions were made in the clarification phase based on a number of
considerations including:
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the high demand for space
ensuring a greater diversity of participants
rapid activation of the space
enabling throughput and ongoing access to new startups
optimising use of public funds.
Will there be hot-desking?
No.
Can we use the shared community space for events?
As with any shared space, we will establish a way that it can be accessed fairly
and used flexibly by everyone and we are currently working through how this
space will be run. As a shared community space however, it will not be available
for continuous exclusive use.
At what point will rent be assessed?
Rent will be calculated as we finalise agreements. We will work all members of the
startup hub to decide the form and duration of the assistance.
Who will oversee of the success of the site?
A governance framework will be established to ensure the hub is as dynamic and
responsive as possible. We anticipate an independent advisory team will be appointed
with broad representation, including users of the hub. The panel would:
 contribute to decision making
 act as a collective-voice to ensure mutually-agreed KPIs are upheld
 provide ongoing advice and guidance for issues and barriers as they arise.
Will international startups be part of the end users?
We are seeking a diversity of users, which may include international applicants, and
we expect to announce the members of the hub around late May / early June 2017.
Who will pay for cleaning of the hub?
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We expect that as part of any building lease agreement, the building will provide
auxiliary services such as cleaning.
Will the building have wheelchair access?
Yes.
Do you have a preferred supplier for room booking software?
We are not yet at the stage where we have preferred vendors for support services.
KEY PERFORMANCE INDICATORS (KPIs)
Are there Key Performance Indicators (KPIs) for hub members?
Yes. This site will be a significant investment for NSW and therefore we are looking for
partners who can achieve measurable outcomes.
The KPIs will form part of a legally binding partnership agreement with Jobs for NSW.
KPIs will be relevant, measurable and achievable. They will benefit both partner
organisations, the startup community as a whole, and reflect the outcomes Jobs for
NSW seeks.
What if an organisation does not meet their KPIs?
Applicants who do not meeting their KPIs for two consecutive years may be asked to
leave the hub.
ADDITIONAL INFORMATION
Will the Sydney startup hub have an equity model as one of the options?
No. The EoI is asking potential participants to define their business model to
understand the diversity and implications for NSW Government in establishing the
Sydney startup hub.
What are ‘related organisations’?
Also known as ‘partnering’ organisations, these are organisations that may support
the startup community such as industry groups, research and development
organisations, mentoring organisations, investors, business specialists, or any other
parties that would suit the vision of the hub.
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What other financial support does government offer startups?
For information on available support from Jobs for NSW visit www.jobsfornsw.gov.au
or visit https://www.business.gov.au/ for information on Federal support.
How can I make suggestions regarding the Sydney startup hub?
If you have comments or suggestions please to send them to
[email protected]. While this is appreciated and every email will be read,
we will not be able to respond in every circumstance.
Where do I go for more information?
Jobs for NSW can also be contacted for further information on
[email protected] and by calling 1300 562 679. You can also follow us on
LinkedIn, Facebook and Twitter.
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