Tech investor Steve Baxter says Australia is vulnerable and needs to prioritise defence

Former Shark Tank judge and serial tech investor Steve Baxter believes Australia is as vulnerable as it was in the 1940s and must upgrade its defence capabilities.

The Chinese navy’s Zunyi destroyer was one of the ships belonging to a naval task force spotted off the northeast coast of Australia.

Former Shark Tank judge and serial tech investor Steve Baxter believes Australia is as vulnerable as it was in the 1940s and he expects the regions will play a vital role in upgrading defence capabilities.

Mr Baxter, who is behind Brisbane-based specialist defence technology venture capital firm, Beaten Zone, will start a week-long roadshow across Queensland on Monday talking to regional investors and businesses.

The former army officer, who made his fortune in the tech sector, raised $10m in the first funding round for Beaten Zone, which already has a pipeline spanning advanced computing, autonomous systems, space technology and orbital capabilities.

Mr Baxter said the world has changed and the risks were clear while Australian’s defence spend was low compared to world standards.

“Australia is arguably more vulnerable than we’ve been since the 1940s because of escalating geopolitical tensions that have highlighted the gaps in our nation’s defence capabilities,” he said.

“Look at China’s live-fire naval exercises, just 500km off the coast of Tasmania, the war in Ukraine, and the tensions of the traditional NATO alliance.”

Steve Baxter will start a week-long roadshow across Queensland on Monday, talking to regional investors and businesses.

However, he said that at the same time new tech was reshaping the battlefield with technology like drones, loitering munitions, sensors, and resilient communications are proving to be decisive in Ukraine and the Middle East.

Mr Baxter said regional Australia had a unique opportunity to play a vital role in Australia’ s defence preparedness.

“Regional Queensland is the heartland for testing our military technology, from The Queensland Flight Test Range in Cloncurry to the Shoalwater Bay Training Area,” he said.

“There are strong capabilities in terms of technology development across the regions, and an understanding that we need to do more to build Australian sovereign defence tech capabilities.

“That’s why I’m spending this week speaking to founders and investors across Goondiwindi, St George, Roma and Toowoomba.

“There’s a real opportunity for Australian nous and ingenuity in this sector. Beyond creating an industry to secure our future, we can also build global leading businesses that export defence tech to our allied partners overseas.”

An Australian Army M1A1 Abrams Tank from the 2nd/14th Light Horse Regiment (Queensland Mounted Infantry), 7th Combat Brigade fires its main gun during a live fire practice at Shoalwater Bay Training Area as part of Exercise Diamond Run 2017. Picture: Department of Defence

Mr Baxter said Beaten Zone has received strong support from investors and he aimed to raise $60m for the fund over the next 18 months.

He said Australia needed to create a defence industry base that sells to the world, that the Australian Defence Force can then use as a supplier.

“My focus is on providing the capital defence start-ups need to grow, and helping them to sell their tech into Europe and US, through Beaten Zone Ventures,” Mr Baxter said.

“We’re already deploying capital, as well as raising further funds to help build the next generation of Australian defence capabilities.

“It wasn’t too long ago that defence was a dirty word among investors in Australia, but in today’s environment we’re seeing a lot more openness to the sector.”

Originally published as Tech investor Steve Baxter says Australia is vulnerable and needs to prioritise defence