Australian start-ups located in incubators raise an average $175,379 more in funding than those located in co-working spaces, according to new data from Perth-based research start-up Floq, published by From Little Things.
Floq, founded by Jonah Cacioppe and Mike Kruger, is a web application that allows users to gather feedback via surveys, ratings and polls.
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In May last year, Floq released the first set of findings from its Startup Nation survey, which is ongoing. It initially attracted responses from more than 150 Australian start-ups.
New survey data, which encapsulates almost 400 start-ups, shows the ability of a start-up to raise funds can be influenced by where they work.
For example, start-ups located in an incubator raise an average of $220,008, compared with $44,811 for those in a co-working space.
But of the start-ups surveyed, 57% don’t share an office space. For those that do share an office, co-working spaces appear to be the most popular.
According to Floq’s findings, start-ups can also increase their chances of raising investment by increasing the number of mentors, advisors or investors in their support network.
For each new mentor, advisor or investor, start-ups raise an additional $69,059, the survey shows.
“The median number of mentors, advisors and investors for a startup – those that hadn’t raised money — is seven,” Kruger told FLT.
Encouragingly, more than half of the start-ups surveyed collect some revenue, although 56% of those start-ups are earning less than $100,000 a year.
In the past year, more than a quarter of start-ups made less than $5,000.
The survey shows 30% of start-ups are working on a web application, while 20% are working on a website and 19% are working on a mobile application. Only 10% of respondents said they are building “stuff you can touch”.
Meanwhile, more than 70% of the founders surveyed are aged over 30, while approximately 17% are female.