Stone & Chalk boss Chris Kirk’s AI warning to entrepreneurs
The new head of start-up incubator Stone & Chalk says entrepreneurs shouldn’t be distracted by the buzz around AI.
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The new head of start-up incubator Stone & Chalk has urged founders to not get caught up in the buzz about artificial intelligence amid the economic uncertainty that has crimped venture capital investment in Australia’s start-up ecosystem.
After four years heading up Stone & Chalk’s innovation hub in Adelaide, Chris Kirk replaced Michael Bromley as chief executive last month, overseeing the not-for-profit’s four sites in Sydney, Melbourne and Adelaide.
He has already signed off on a partnership with New Zealand’s GridAKL, which will enable local start-ups to secure short-term residencies at GridAKL’s innovation hub in Auckland, and is encouraging entrepreneurs to have a similar global mindset as they look to scale up their businesses.
“For start-ups building fast-growing emerging technologies, access to capital, customers, expertise and talent is required, however these are rarely available and accessible in the founder’s home market,” he said.
“Having a global mindset from day one is crucial to ensuring you remain on track and are growing with intention.”
While AI has emerged as the next big trend in tech, Mr Kirk said entrepreneurs should not get distracted by the “buzz”.
“The rapid advancement of AI has garnered a lot of attention for start-ups, creating an incredible opportunity for founders to launch and scale up effectively,” he said.
“However, it is imperative that founders don’t get caught up in the buzz of AI and instead continue to manage their business goals according to their original plans and objectives.
“Not many people realise that it takes nine years on average for an Australian start-up to scale into an established business.
“While the focus placed on helping companies to launch has been immense, there is a real opportunity and need to ensure scale-ups are also receiving the support required to grow beyond launch so they can achieve their long term goals.”
Stone & Chalk launched a scale-up hub at its Tech Central site in Sydney last year, designed specifically to support the expansion of businesses as they move beyond the initial start-up phase.
Dr Tim Mahlberg Sie, who has taken over as head of Stone & Chalk’s Adelaide hub at the Lot Fourteen innovation precinct, said there was a need to expand that tailored support into the South Australian ecosystem.
“Once you get to what we call that scale-up, where they’re growing outside of the building that we have here, their needs change,” he said.
“There’s still a gap there and I think that’s where the potential and opportunity is, for a scale-up hub similar to what we have in Sydney.
“If there was going to be an area that we could work on as a state it would be how do we take the ones that have become so successful, and they’re really at their hockey stick growth, to be able to continue to nurture them to have a greater impact and a greater global footprint from here.”
According to the latest KPMG Private Enterprise Venture Pulse report, venture capital investment in Australian start-ups over the first six months of 2023 fell to $US1.11bn, compared to $US3.64bn over the corresponding period in 2022.
But Mr Mahlberg Sie said Stone & Chalk residents in Adelaide weren’t feeling the “doom and gloom” and continued to field interest from high net worth investors and venture capital funds on the east coast.
Since Stone & Chalk’s launch in Adelaide in 2019, its residents have raised more than $140m in funding, valuing those companies at more than $250m.
Dr Mahlberg said there were currently 60 businesses based at the hub, with several clusters emerging around industries where South Australia had a competitive advantage.
“We’re not here to create a start-up community the same as a Sydney or Melbourne, or Silicon Valley,” he said.
“We’re looking to do things in a uniquely South Australian way. So what are our areas of strength that can become a real competitive advantage in a global market?
“We’re definitely seeing those around emerging technology and agriculture, so ag-tech, we’re seeing that around climate tech, renewable energies – these are ones where we’ve got wins on the board already.
“What we’re doing is bringing them together and saying this is something that we’re famous for globally.”
Last week Stone & Chalk launched its third Future Technology Program with partner KPMG, offering start-ups the chance to secure a 12-month residency at one of its hubs.
This year’s program is targeted at start-ups that are developing technology to support employers grappling with workforce challenges in the aftermath of Covid-19.
Originally published as Stone & Chalk boss Chris Kirk’s AI warning to entrepreneurs
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