01 INTERNATIONAL TECH HUB | BDO LLP
AUSTRALIA
THE TECH LANDSCAPE Australia benefits from straddling both the Asian and Western markets. It is effectively the Western landing point for businesses looking to set up in Asia and particularly appeals to tech companies not confident enough to immediately establish themselves in Asian hubs such as Singapore, Hong Kong or Japan due to cultural challenges and differences in the way business is done. Australia acts as a launching pad into the Asian market and, as a result, Sydney has become the financial capital of Australia where large multinationals congregate. Australia has become a testing ground for companies looking for safe landing points, where they can take advantage of Australia’s English-language operations but also proximity to the Asian market. Likewise, for Asian companies, it is easier to connect with the West by using Australia as a conduit. The stock exchange is also appealing. Australia has one of the most active and vibrant stock exchanges in the world. This has led many companies to expand out of the US to be listed on the Australian stock exchange, particularly tech companies. It gives them a profile on a listed exchange, but also gives them access to Australian, Asian and Western investors. That, along with deep capital pockets, has led tech to become one of the leading sectors in Australia. THE TECH BUSINESS ECOSYSTEM Like in other global cities, all the significant tech players are already established in the Australian market. Where Australia differs to other nations is that there tends to be greater specificity in the tech businesses that congregate in each city, largely depending on the type of sectors that are prominent in that region. Brisbane, for example, is very strong in the agriculture and mining sectors; Perth attracts mining tech in particular. Melbourne is home to retail technology. As Sydney houses the majority of financial institutions fintech companies can often find their natural home there. Australian cities operate almost as entirely different markets, because of the enormous distances (1,000km+) between each locale. The tech businesses that do well in each location depend on what works generally in the area. However, Sydney due to its financial focus, is usually the first landing point for businesses expanding into Australia. There are successful software, proptech, retail technology, manufacturing technology firms and more, though the main type of tech is still financial in nature. However, there is a growing focus on manufacturing technology across Australia as a whole. Given world events, companies want greater control over their supply chain, and to make costs comparable with China, technology is necessary.
With expert input from Sebastian Stevens, National Leader - Private Equity and Partner in Charge - Corporate Finance,
BDO Sydney. Sebastian has 25 years of experience providing international and cross-border services growing private and publicly-listed companies with a focus on Technology, Media and Telecommunications.
OVERVIEW: A BRIDGE MARKET WITH DEEP CAPITAL POTENTIAL The perception of Australia as remote has led to significant untapped capital in a location with unrivalled access to both the Asian and Western markets. Though the population may be small in comparison to its Western competition, Australia’s support for technology companies and its stable stock exchange make it an appealing prospect for tech businesses and investors alike.
AUSTRALIA HAS THE FOURTH MOST TRADED STOCK EXCHANGE IN THE WORLD
AUSTRALIA HAS BECOME A TESTING GROUND FOR COMPANIES LOOKING FOR SAFE LANDING POINTS
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