The start-up scene in Australia has not had the smoothest run in recent times. The biggest difficulty for a start-up is balancing the development and commercialisation of an idea within their financial means. A recent article has claimed that Blue Chilli, one of Australia’s leading key venture capital and incubators, has under delivered in its services to its startup clients. The article highlights the fundamental issue in the start-up sphere of the lack of funding for the technological development of start-ups.
The article also raises the conflict of interest pitfalls faced by any start-up undergoing venture capital and incubation processes, where the VC and incubator body has a vested interest in both their own company, as well as the start-up. In order to effectively assist the start-up, the interests of the venture capitalist and incubator may be significantly different to those of the start-up.
The outcome of this is that there is little regulation in the venture capital and incubator fields, which muddies the obligations of the respective parties. Without road map for commercialisation and success, be it regulated or advised, start-ups are completely dependent upon the assistance provided by its advisors, venture capitalists and incubators.
Good advice is invaluable.
Here is a link to the recent article – http://www.startupdaily.com.au/2014/10/venture-tech-firm-bluechilli-accused-delivering-promise-startups-bluechilli-responds/