Entrepreneurial dynamo Andrew Stead has been named director of new ventures for information technology research centre National ICT Australia (NICTA) and given StartupSmart his top five tips for start-ups.
Before stepping into the role, Stead was the founder of Australia’s first clean-tech seed incubator and business development director at tech accelerator ATP Innovations.
Get daily business news.
The latest stories, funding information, and expert advice. Free to sign up.
He also co-founded early stage investment group Sydney Angels.
In the past six years, Stead has worked with 125 technology start-ups, seven of which have sold for a total of $140 million.
Stead told StartupSmart a good start-up cycle takes time to develop, but there are already a lot of industries ripe for disruption.
“I see a strong start-up cycle starting with the alumni of successful technology businesses becoming investors, founders and providing experienced staff that are ready to create and support the next start-ups,” Stead says.
“There is so much opportunity to disrupt older industries, especially those dominated by big slow moving players.”
Be good crazy
Stead says the best ideas are those that are powerfully unique but in an engaging way. While most start-up operators are strong advocates of their brands, he says the ones that don’t listen to feedback or explore other options end up with limited or no success.
“Good crazy founders make you double take, they surprise you. They can be unsettling, unconventional and have an unnatural enjoyment of the start-up challenge, but their hustle and enthusiasm will help win the day,” Stead says.
Don’t walk alone
Stead says teamwork is not only essential to the sustainability of a start-up, it’s also the first validation test.
“The first test of sales ability is convincing others to be involved in a start-up,” Stead says.
“The benefits of having co-founders will always outweigh the risks. You just need to ensure that if a split occurs the shareholders’ agreement makes it straightforward.”
As the ecosystem develops, Stead says there is an increasing number of successful founders, mentors and start-up share scheme specialists available to assist new founders to do this well.
“Use them, they want to be involved. And there is nothing like the validation of an experienced mentor to help get investors over the line,” Stead says.
This article continues on page 2. Please click below.