What makes Australia a good fit for Israeli startups?
Updated: Oct 24, 2019
Australia is known for its highly developed market economy, exports of natural resources, and agricultural brand. Recently, Australia topped the global median wealth list mostly thanks to the resources boom and the strength of its services sector. It also punches above its weight in high quality and cutting edge research. Despite its wealth and its strengths in research and financial services, Australia currently lacks the infrastructure and pathways to commercialising its research and hi-tech developments.
Australia is hungry to import technologies to satisfy its high-functioning service industry and financial markets
Thus, Australia’s marketplace is of particular benefit to hi-tech direct-to-export countries. (Israel is a quintessential example in this regard). Still in the infancy of translating its own world-class research into actionable technology, Australia is hungry to import technologies to satisfy its high-functioning service industry and financial markets. Combine this with an early adopter mindset, and here is, per capita, a rich country that eagerly consumes the technology of its trading partners.
Australia's biggest importers China, USA, and Japan total almost $100B USD of Australia’s imports. By comparison, Israel’s exports to Australia was $528M USD. Hence, this is a real opportunity for hi-tech and direct-to-export economies to take advantage and commercialise in an early adopter market with high per capita wealth.
A real opportunity for hi-tech and direct-to-export economies to commercialise in an early adopter market with high per capita wealth
Another benefit of Australia's marketplace to Israel's hi-tech industry is Australia’s market size and cultural demographic. With a population that identifies primarily with the West, and a GDP four times that of Israel, Australia can be viewed as a ‘sandbox’ for beta testing prior to entering larger markets in the USA or Europe.
Like Israel, a nation that is largely influenced by the West in the Middle East, Australia is a Western country that is increasingly becoming influenced by its East Asian neighbours through trade, immigration, and/or cultural awareness. This mix of Eastern and Western cultures also extends to provides market indicators of East Asian markets, which account for >15% of Israel’s exports. In this way, the unique global positioning of Australia presents an opportunity for direct-to-export economies to assess the global success of its products.
Australia can be viewed as a ‘sandbox’ for beta testing prior to entering larger markets in the USA or Europe
Given the sophistication of Israel’s hi-tech innovation and direct-to-export industry, Israel stands to benefit by exporting to Australia. It stands to gain profit from exporting to a hungry and early adopter market and also understanding of global market trends and shifts. To take advantage of the Australian marketplace, Israel must seek out and connect with Australian companies, and specifically to its service industries.
Israel must seek out and connect with Australian companies, and specifically to its service industries
To help foster the partnership between Israel's hi-tech industry and Australian markets, Techbench Capital specialises in connecting Israeli tech startups with Australian investors and corporates. Whether it is establishing a market presence in Australia, acquiring Australian customers, or fundraising support, Techbench Capital values the opportunities and benefits the Australian marketplace holds for Israeli hi-tech startups. The time for direct-to-export industries to expand into Australia is now and ripe for harvesting.