Little Tokyo Two abandons Brisbane startup incubator The Capital

One of the Queensland’s biggest business incubators, which boasts of “inspiring and growing” startups, has abandoned its Brisbane CBD office amid concerns about its future.

Little Tokyo Two founder Jock Fairweather in Brisbane last year. Picture: AAP image, John Gass

ONE of Queensland’s biggest business incubators, which boasts of “inspiring and growing” startups, has abandoned its Brisbane and Gold Coast campuses amid concerns about its future.

Little Tokyo Two, which claims it is one of the fastest growing coworking spaces in Australia, has moved out of Brisbane’s The Capital startup hub where it was an anchor tenant.

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Its Gold Coast operation is now being managed by GC Hub, a not-for profit community organisation and its Springfield office is also under a cloud.

Brisbane Marketing, a subsidiary of the Brisbane City Council which has invested $5 million in The Capital over the past five years, said it would provide managerial support for the Little Tokyo Brisbane office until a new operator could be found.

“The founder of Little Tokyo Two has advised Brisbane Marketing that it will not be continuing as the manager of the facility,” a Brisbane Marketing spokesperson said. “Brisbane Marketing’s primary focus is to secure a new operator to provide certainty for tenants.”

Founded by Jock Fairweather in 2014, Little Tokyo Two also operates locations at Spring Hill, Petrie Terrace, Springfield and the Gold Coast.

Springfield City Group deputy chairman Bob Sharpless said the developer was talking with Little Tokyo Two about the future of the Springfield office after it fell behind in its rent. Mr Sharpless said it was likely Springfield City Group would take over the running of the incubator there.

Little Tokyo Two claims to have helped more than 70 companies grow into “scaleable enterprises.”

But in recent years it has faced growing competition from other business incubators such as River City Labs, WeWork and The Precinct. As well as co-working spaces, Little Tokyo Two offered workshops, mentorship programmes and business advice.

The office on the fourth floor of The Capital was open for business yesterday but Mr Fairweather was not there and did not return phone messages.

Mr Fairweather’s out of office email reply said he would be away until May. Brisbane City Council chief digital office Cat Mason declined to comment.

Both Little Tokyo Two and Fishburner, another incubator, have operated out of The Capital since its opened in October 2016. A Brisbane Marketing spokesman said Fishburners had doubled its presence in Brisbane, with demand fuelling the need to increase capacity.

The Capital claims to have helped more than 320 startups with a shared working environment in the CBD designed to nurture and connect startups with government, corporates and investors.