NewsBite

Unis invest in accelerators for rising entrepreneurs

Monash and University of Technology Sydney are the first two universities to invest in Galileo, a venture fund and accelerator set up specifically to invest in student entrepreneurs.

Galileo co-founder James Alexander
Galileo co-founder James Alexander

Monash and University of Technology Sydney are the first two universities to invest in Galileo, a venture fund and accelerator set up specifically to invest in student entrepreneurs.

The fund is billed as the next step for student entrepreneurs who have been through university accelerator programs for students, and whose business is ready for further investment.

Galileo’s co-founders James Alexander and Hugh Stephens say they will invest up to $200,000 into each of 50 start-ups the fund accepts. In return, Galileo will take ­equity in the start-ups.

Their plan is that Galileo will also operate as an accelerator, with each cohort of 10-20 start-ups doing a six month structured program and sharing a co-working space in Sydney in this period.

Because they will be together, they will be able to share learning and mentors, Mr Stephens said.

Monash University has invested $500,000 in Galileo, with UTS putting in what is believed to be a similar amount.

Mr Alexander believes the Galileo fund will break new ground in Australia by focusing their investments on student ­entrepreneurship rather than ­investing in the IP that comes from university research programs. He brings to Galileo his ­experience as co-founder and ­program manager of the University of Sydney student accelerator Incubate.

Mr Stephens was co-founder of the Instagram scheduling start-up Schedugram.

He said Galileo would offer funding to start-ups that successfully came through the “funnel” of university start-up accelerators, which have proliferated since the University of Sydney’s Incubate was set up six years ago.

UTS has just expanded its ­accelerator program, hiring former Fishburners chief executive Murray Hurps to establish UTS Startups this year.

After launching in July, UTS Startups is already assisting 68 start-up teams and plans to have 100 soon.

Each team has to have at least one UTS student or someone who has been a student in the past 12 months.

The teams don’t have to submit a formal business plan to be ­accepted by UTS Startups, but they have to demonstrate they have identified a target market and have a plan to scale their business. The university does not give them any capital but offers them mentoring and access to co-working space, and does a monthly check-in with each team.

Within five years, UTS plans that half of its students will have an entrepreneurship experience.

Monash University’s student accelerator, The Generator, offers a three-month accelerator program to nine start-up teams each year, and once a year offers $10,000 and other support to a small number of start-ups that come through the program.

Alastair Hick, senior director of Monash Innovation, said 186 teams had applied this year.

“We are looking for people who are coachable.

“We want them to come out of this much better equipped,” he said.

Tim Dodd
Tim DoddHigher Education Editor

Tim Dodd is The Australian's higher education editor. He has over 25 years experience as a journalist covering a wide variety of areas in public policy, economics, politics and foreign policy, including reporting from the Canberra press gallery and four years based in Jakarta as South East Asia correspondent for The Australian Financial Review. He was named 2014 Higher Education Journalist of the Year by the National Press Club.

Original URL: https://www.theaustralian.com.au/higher-education/unis-invest-in-accelerators-for-rising-entrepreneurs/news-story/214f886c733520917acad22fe65a3a3a