Sydney is to get a new startup hub, creating up to 6,500 new jobs, thanks to a $35 million investment from the NSW Government.
Jobs for NSW will fund the hub, which will be spread over more than 17,000 square metres and 11 floors.
The initiative will bring together distinctive disparate startup locations across Sydney under one roof.
Deputy premier and minister for small business, John Barilaro, says: “The NSW Government is pleased to include a fantastic roll call of tenants including; Stone and Chalk, Fishburners, Tank Stream Labs and The Studio. In addition to the 2,500 residents, the hub will welcome regional entrepreneurs from the wider startup ecosystem through the regional landing pad and community and events space.”
Established fintech incubator Stone & Chalk has announced that it will house up to 600 residents across two floors and 4,252 square metres of secure labs, co-working, meeting and collaboration space at the new location, marking an increase in residential capacity of more than 70 per cent compared to its current space.
Alex Scandurra, CEO of Stone & Chalk, says the switch will enable it to provide support to an additional 250 entrepreneurs.
“Affordable space remains the single largest barrier to build sustainable startup ecosystems," he says. "Jobs for NSW have done an incredible job of bringing the entire community together, right in the heart of the CBD in an amazing, high tech space."
Fintech Australia says the hub should help build even stronger links between the Australian fintech industry and global markets. The NSW initiative follows a June announcement by the Victorian Government that it would be establishing a fintech hub at the Goods Shed North in Melbourne’s Docklands. The Victorian Government has also confirmed it will be the presenting partner of Australia’s inaugural fintech festival, known as Intersekt, to be held in Melbourne from late October to early November.
“Both of these announcements clearly prove there is united support for fintech across both Federal and State governments and from both sides of politics. It's great news and will help us accommodate the impressive growth in Australia’s fintech startup ecosystem,” says FinTech Australia CEO Danielle Szetho. “We expect the size and density of this Sydney hub, along with the growing fintech ecosystem in Melbourne, will help elevate Australian fintech’s status within Asia and the world.”
The Sydney Startup Hub is expected to open in late 2017 or early 2018, with the Melbourne fintech hub following a similar timeframe.