The Tech Council of Australia (TCA) as well as Science & Technology Australia have both expressed warm approval for the Government's newly launched $392 million Industry Growth Program.

The initiative is designed to aid startups and SMEs in commercialising their ideas and scaling their businesses, a move that could potentially bridge the gap in Australia's tech sector. TCA CEO, Kate Pounder, acknowledged that while Australia has been successful in birthing tech companies, scaling remains a significant hurdle for many.

"The Industry Growth Program will provide much-needed support to help translate great ideas into more jobs," she said.

The Industry Growth Program aligns with the TCA's 'Shots on Goal' research, which highlighted a lower survival rate for Australian startups at the scaling stage compared to their US counterparts. The research also projected a $53 billion scaleup funding gap by 2030 if the investment environment remains unchanged. The Tech Council of Australia, the peak industry body for Australia’s tech sector, represents over 160 members across the full spectrum of tech companies.

Australia's tech ecosystem, boasting 28 unicorn companies, is robust. However, Pounder noted scaling a tech startup, particularly in capital-intensive sectors like quantum, AI and robotics, is challenging due to limited funding availability.

The 'Shots on Goal' report emphasises the role of medium to larger size firms in driving substantial economic benefits, including job creation. Pounder asserted initiatives like the Industry Growth Program are crucial for Australia to improve its commercialisation and scaling record and emerge as a global tech leader.

"Past government funding programs have been credited as a key factor in the growth of some of Australia’s most successful tech firms, such as Canva and Atlassian," she said.

The TCA welcomed the commitment to the Industry Growth Program from the Government in the May Budget, which forms part of a broader suite of initiatives focused on industry commercialisation and innovation.

Alongside the $15 billion National Reconstruction Fund, Pounder sees a significant opportunity for the Government to collaborate with the private sector to create the next wave of successful Australian tech companies. She urges the Government to implement these initiatives urgently, given the challenging funding and economic environment facing tech companies

The nation’s peak body for the science and technology sectors also warmly welcomed the opening of the Industry Growth Program as “a powerful accelerator for more R&D” in Australia.

“The new Industry Growth Program will be a powerful spur for more and better R&D in Australia – and has been designed to help more of our country’s remarkable innovative small businesses to become medium-sized businesses,” Science & Technology Australia CEO, Misha Schubert said.“It can turn more great Australian ideas and innovations into the products, services, and jobs of tomorrow - strengthening complexity in our economy and securing tomorrow’s prosperity.

“STA has long advocated for greater support to help outstanding Australian research to bridge the ‘valley of death’ to commercialisation and to connect up existing programs to deliver mass and momentum. This program will powerfully advance that goal – and be a powerful complement to Science & Technology Australia’s bold vision of training Australia’s first entire generation at scale of ‘bench-to-boardroom' scientist-entrepreneurs.”