If you have a start-up looking to superpower innovation with community, you’ve arrived at the right place. So what is a community? It’s far more than just a buzzword or a concept. Communities in general, or start-up communities more specifically, offer valuable resources, connections and networks to help founders succeed. At one time, start-up communities were only associated with Silicon Valley. But ever since entrepreneur Brad Feld published his best-seller, Startup Communities: Building an Entrepreneurial Ecosystem in Your City, start-up communities have grown in importance all over the world.[1] Back in 1985, management guru Peter Drucker famously said, “Innovate or Die”.[2] Almost 40 years later, things have changed. In today’s increasingly fast-paced complex world, innovation is the new baseline and, on its own, is no longer enough. Now businesses must “Collaborate or Die”and find the right communities where they can thrive.
Not only does this blog delve into that topic, but as Australia’s leading R&D financier, we’ve also long recognised the need for start-up ecosystems. From day one — when Radium Capital began in 2017 — we focused on building trusted networks. Then we committed to participating in and nurturing communities that support our clients and any Australian innovation businesses conducting research and development (R&D). So, in this blog, we’re exploring why there’s more to collaboration than meets the eye. And why and how you should superpower your innovation with community to maximise your growth potential in today’s fast-changing world.
Collaborate to innovate
When we think of collaboration what often springs to mind is a high-performing start-up team kicking goals.[3] But that notion of collaboration has become outmoded. Arguably, socioeconomic changes, specifically the peer-to-peer economic model of the sharing economy, that underpinned many new early 21st century products and services, are behind the shift. Expanding collaboration beyond your founding team or business creates a multiplier effect. Meaningful collaboration with stakeholders outside of your start-up, scale-up or established business opens the door to enhanced performance at a whole new level. It immediately catapults your organisation into the big league, without the need for big-league capital outlays. Taking a peer-to-peer approach to innovation lets you collaborate by accessing the skill sets, knowledge and experience of entire innovation ecosystems and communities. And, it lets you do so in ways that will likely put your R&D and capacity to innovate successfully on steroids.
Leverage communities and your R&D
So, where do you get started in this brave new world of ‘big collaboration’? And will your attempts to join and collaborate with an innovation community pay off? The short answer is yes. For a more in depth answer check out our article, How to find a start-up ecosystem and why it’s important. It explores this topic and explains what an effective start-up ecosystem looks like and how start-up incubators nurture early-stage innovations. But in a nutshell, start-ups that belong to an ecosystem community are better placed to adapt their innovation, so they succeed. Indeed, the five-year survival rate is 87% for start-ups that joined an incubator compared to 44% for those that didn’t. [4]
Getting started
Sobering statistics but rather than fretting about how you’ll find an innovation community, start with some baby steps. Consider who you already engage with outside of your business, for example, your accountant, business adviser or R&D lender. Connections like these mean you’re already part of a community. Tell your adviser, accountant or R&D lender about your plans to find out more about innovation communities. And you may uncover a goldmine of valuable insights and information that could help your innovation and your business more broadly.
Finding your innovation community
With collaboration the new normal for innovation, if you’re not onboard, there’s a real danger that it could be a case of collaborate or die for your business. While your company may be foregoing the structured support, helpful information and other resources of innovation ecosystems, chances are your competitors probably aren’t. And they’re likely using communities to get to market first. Supporting Australian innovation businesses is in our DNA. It has been a keystone of our business and our culture since the beginning. So we have a few useful tips and insights that will help your venture leverage the power of community and collaboration to thrive.
What to look for in an innovation community
There are a myriad of innovation communities and ecosystems out there. Start-ups are spoilt for choice but too much choice can feel overwhelming. To avoid being like a rabbit caught in the headlights, start by considering your business location, stage and sector.
Location, stage and sector
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Location
Location, location, location is what any real estate agent worth their salt will tell you. But it’s a crucial factor when it comes to businesses too. Which state or territory does your start-up, scale-up or established innovation-business call home? Is your venture located in a metropolitan or rural area? The crucial question to ask is: does your current location work well for your business? Or should you move to a better location within your home state, for example, an incubator or up sticks and shift interstate?
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Stage
Incubators, accelerators and venture studios are structured innovation ecosystems that are inextricably linked to your business stage. So, if you’re considering ‘formal’ innovation communities like these, you can narrow down your search using your business stage.
Venture studios
Venture studios are a relatively new phenomenon. They have been growing increasingly popular in recent years thanks to their impressive results. Venture studios are for super-early start-ups that either haven’t yet launched or have only recently formed. They specialise in building start-ups from the ground up. By leveraging the skills and experience of multi-disciplinary teams of entrepreneurs, designers, and an array of marketing experts, they take a hands-on approach to transform ground-breaking ideas into successful, profitable businesses. UntilNow in Sydney, BetterLabs in Perth, Ace Venture Studio on the East Coast and Paloma in Sydney are a few examples of venture studios operating in Australia.
Incubators
If your start-up is at an early stage and the venture studio option isn’t for you, maybe a start-up incubator is. It can offer the office space and an array of support and resources you need to finesse your business model or your product-market fit and could provide a great option for your venture. Check out this list of incubators in your state or preferred location in Australia.[5]
Accelerators
Accelerators can be a great option if you’ve already progressed your start-up growth journey to the point that you have your business model, product-market fit and founding team. Take a look at this list of accelerators in Australia.[6]
If you’re not sure about the difference between incubators and accelerators or if either is a good fit for your start-up, see our article Incubators vs accelerators: Which one is best for start-ups.
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Sector
Did you know there are incubators, accelerators, innovation communities, co-working spaces and even entire ecosystems that specialise in particular industry sectors? For example, Cicada Innovations focuses on deep tech but has sector-specific incubators for health and biotech.
Stakeholder mix
Generally speaking, thriving innovation communities comprise two different types of stakeholders: partners and enablers. Having a balanced and complimentary mix of stakeholders in an innovation community is important. Look out for innovation communities with stakeholders that can help plug gaps your business has in terms of skills, resourcing and information.
- Partners include service providers such as Radium Capital, corporations, for example, Research Service Providers and government entities, such as Austrade and AusIndustry and CSIRO.
- Enablers include incubators for example deep-tech incubator Cicada Innovations, accelerators such as CORE Innovation Hub’s WA to USA Market Accelerator Program, venture studios for example leading Australia and New Zealander provider Paloma, investors, such as Rampersand and universities, like University of Melbourne that support and partner with Australian start-ups and innovators.
Pathways to innovation success and growth
The key takeaway when it comes to communities is to stay flexible. While you may find and join a community that can support your start-up from early stage to exit, in reality, your venture may outgrow its initial community. And that’s ok. As your business grows and evolves, be open to seeking out and joining new communities that can help your business reach its goals. Don’t forget Radium Capital can connect you to the stakeholders, approved partners and curated communities that we collaborate with and support — whether your business is a client or not. We’re deeply committed to supporting Australian innovation in all its forms, because we believe that together, we’re stronger.
[1] Feld, B. (2012). Startup Communities. John Wiley & Sons.
[2] Drucker, P.F. (1985). Innovation and Entrepreneurship: Practice and Principles. Holanda: Butterworth-Heinemann.
[3] i95business.com. (2022). Letter From the Publisher – Innovate or Die: I95 Business. [online] Available at: https://i95business.com/articles/content/letter-from-the-publisher-innovate-or-die-1975.
[4] Business News Daily. (n.d.). How Incubators Help Startups Survive. [online] Available at: https://www.businessnewsdaily.com/272-incubators-increase-small-business-success.html.
[5] Elegant Media Blog. (2021). Top 11 Startup Accelerators & Startup Incubators Australia [2022]. [online] Available at: https://www.elegantmedia.com.au/blog/top-startup-accelerators-and-startup-incubators-in-australia/.
[6] www.failory.com. (n.d.). Top 39 Accelerators and Incubators in Australia. [online] Available at: https://www.failory.com/startups/australia-accelerators-incubators.