north queensland innovation and entrepreneurial …€¦ · townsvilles’ startup scene has been...

NORTH QUEENSLAND INNOVATION AND

ENTREPRENEURIAL ECOLOGY

AN OVERVIEW NOVEMBER 2015

ACKNOWLEDGEMENTS

The iNQ team would like to acknowledge the work of Townsville Start Ups and the assistance of the Townsville North Queensland Emerging Leaders.

A project team from the Townsville North Queensland Emerging Leaders group an initiative of Townsville Enterprise has played a pivotal roll over the last 6 months in the planning and search for a location for the Townsville Innovation Hub.

Spokesperson for the EL Innovation Group Brian Miller said “An Innovation Hub in Townsville is and exciting opportunity and vital to the development of new industries in the technology, manufacturing and agribusiness sectors”.

Townsvilles’ Startup Scene has been accelerating over the last few years as a number of local startups have been successful, raising awareness of the opportunities of such ventures in the public sphere. Combine this with the right mix of entrepreneurs, business people and Startup activities and you have a maturing Startup ecosystem developing collaborative business models that combine to improve viability of new ventures and support innovative solutions across the entire community.

Our members are entrepreneurs and like-minded individuals with a passion for technology, business, social causes and empowering people.

Startup Townsville promotes events such as the Townsville Startup Weekend, monthly Startup meet-ups, as well as teaching startup techniques, helping entrepreneurs tap into embedded investment and business knowledge and fostering the development of all facets of the local startup ecosystem. All on a shoestring budget, using lean business development techniques.

CONTENTSFROM THE TEAM ..........................................................................................5

ABOUT iNQ ...................................................................................................6

HOW WE INNOVATE .....................................................................................7

HOW WE NURTURE, SUPPORT AND GROW .................................................8

COLLABORATE ............................................................................................10

CREATE ........................................................................................................11

ADVOCATE ..................................................................................................11

TRACTION + IMPACTS .................................................................................12

WHO’S BEHIND iNQ ....................................................................................14

HANDS + HEADS .........................................................................................14

THE MUTUAL FOUNDATIONS .....................................................................16

ALLIED FUNDING MODELS .........................................................................18

iNQ CHARTER ..............................................................................................19

NORTH QUEENSLAND INNOVATION AND ENTREPRENEURIAL ECOLOGY 3

The conscious bringing together of imagination on the one hand, and Factory on the other speaks of a process and a journey by which communities of like-minded people can transform their “imagineerings” into tangible transformative things that will make our communities stronger, healthier, cleaner, safer, more resilient and more prosperous.

“

“

CAN YOU IMAGINE THE POWER OF A TWO-LETTER WORD?

We are referring to “if”. In two letters, we capture both the inescapable uncertainty of the world in which we live, but also its open-ended possibilities. If only... What if…?

It can also be an acronym; in our case a reference to Imagination – the dynamic creative processes that continually probe the questions if only and what if, and Factory – the image of a place and processes by which imaginations are made tangible and real. Factories are where things are made; where we turn ideas into stuff.

The conscious bringing together of imagination on the one hand, and Factory on the other speaks of a process and a journey by which communities of like-minded people can transform their “imagineerings” into tangible transformative things that will make our communities stronger, healthier, cleaner, safer, more resilient and more prosperous.

iNQ is about all of this. It is both an institution and a culture of practice. It builds on the work of so many in the community, many of whom are acknowledged in these pages. It is a place – real and metaphoric – in which imagination can be fostered. It is a framework in which the risks and rewards of imagining new possibilities can be shared fairly, because at the end of the day, we know that effective and successful innovation happens when people find ways – indeed, are “incentivised” – to meaningfully collaborate.

At the heart of it, we are talking about the village that nurtures imagination and aspiration. If for Hillary Clinton it takes a village to raise a child, then it is also true that it takes a village to nurture an innovator.

As a village of creative and innovative collaborators, the principles of mutualism can take on a meaningful and practical life. We don’t know which new idea will break ground and find value in the world. What we do know though is that by collaboratively pursuing these ideas within a structure founded on mutuality principles, the challenges and risks of the innovative process and the benefits, wherever they appear, can be shared. That way, we all pitch in.

Join us in the work of imagining and making a resilient and prosperous future.

JOE HOOLAHAN | WARWICK POWELL | DAVID COLE

FROM THE TEAM


ABOUT iNQiNQ1 is a community-anchored ecology dedicated to nurturing, enabling and growing innovations and entrepreneurial pursuits in our communities – simply put, to nurture and accelerate new forms of prosperity and resilience in regional communities. It has come together through the organic coalition that has been formed by a cross-section of the North Queensland community that is seeking better ways of doing business.

It brings together the threads of the work that have been undertaken by a diverse cross-section of the community – from initiatives such as the StartUp Weekend, Townsville StartUps Meetup through to the contributions of the Emerging Leaders Program and the Townsville Creativity and Innovation Festival amongst others. It also secures the participation of a range of businesses, enterprises and organisations, at various stages of emergence and maturity, across diverse sectors, to anchor the next phase of development of the regional ecology.

iNQ is a community effort and a channel for creative energy. Being involved requires participants to embrace the ethos of this community, and willingly contribute to a process that is larger than one individual. (See the draft Charter towards the back of this document.)

It is more than an “innovation centre”, though it does deliver much of what more conventional innovation centres seek to do. Similarly, it is more than an incubator and an accelerator, though it will also do much of what these kinds of models seek to do.

The iNQ village comprises all those who are committed to the nurturing of creativity and innovation across our communities. Whether we are talking about the possibilities of creating new value through the possibilities of digitalisation and automation, or the ability to transform chemical and engineering know-how into valuable things and ways of doing stuff; whether we think of innovation as creating a new “app” or a “disruptive” business model or as novel ways of achieving a conventional goal... this can only be effectively achieved when like-minded people, aligned to a common ethos and committed to the mutuality of their work and work processes, come together.

1 iNQ is a working name only. We’re not wedded to it at all. In fact, one of the first things we’ll do is “crowd source” our future identity.

iNQ is committed to enabling the flourishing of creativity, innovation and entrepreneurialship across all walks of life, and in all domains of business and community activity. We do this in three main ways:

1. Nurture new business models, innovations in mainstream businesses and supply chains and new forms of sociability;

2. Accelerating the capacity of participants to create transformations; and

3. Enabling the broader conditions necessary for transformation by raising awareness, creating supportive communities and advocating for change where appropriate and necessary.

6 iNQ //

HOW WE INNOVATECreating better systems, institutions, policies, business models, and business practices requires a willingness to openly explore the foundations upon which these have all been founded. To make positive, meaningful transformations in any of these areas requires a certain level of clarity about the types of systems, institutions, policies, models and practices that we as a community would value. This is innovation “community style”.

Connect, Education and Illuminate We link like-minded people together, regardless of whether they have the same industry exposure or experience. In fact, it is often the case that bringing disparate competences and experiences together can catalyse a transformative process.

We do this through events and other activities that will not only educate participants but also build trust and relationships between them to create the conditions in which collaborative innovation can take place.

iNQ is uniquely positioned to have a bird’s eye view of the creative work within its ecology so as to be able to promote collective intelligence (we learn from what everyone else is doing), lead research and spot emerging trends.

Demonstrate We will operate three streams specifically designed

to turn ideas into impact.

1. Create – we collectively support each participant’s efforts to develop new business models or

practices that are aligned to the broad values of regional resilience. As

these innovations mature, a commercialization pathway is mapped with the support of

expert advisors in relevant technical and market

spheres.

2. Collaborate – we work with each other to drive the creative

impulses, and also with those in conventional

businesses and industries to achieve realistic

changes that matter.

3. Advocate – we will stand up for what we believe and support

those who are seeking to achieve more resilient regional communities.

Influence We harness the wisdom and strength of

champions and advisors for our work and the work of all those participating in iNQ.

Build and TransformiNQ is anchored by a core team of dedicated individuals from diverse backgrounds committed to designing and evolving the strategy and architecture of the ecology and to cultivating the purpose and the culture that is needed.

CONNECT, EDUCATE + ILLUMINATE

DEMONSTRATE

INFLUENCE

BUILD

Create new business models + practicesEvolve existing practices advocate for change

(Capacity Programs)

(Core team)

- Communication- Events


iNQ would deliver a range of Capacity Programs to nurture, support and grow the creative and innovative outputs of the community. These programs include, but are not limited to the following:

1. From Early Stage - Start Up Weekends through to intensive preparation programs design to launch globally significant programs – all from Townsville.

a. Start Up Weekends – we build on existing platforms.

b. Introductory Level – Early engagement around the principles of a Start Up and Ideas to a concept to potentially a market.

c. Mentor Blaze – Programs to connect potential innovators – existing start-ups to mentors – speed dating – to accelerate relationship, gain some feedback and move forward.

d. Accelerator Programs – These can range from 6-8 week programs – to 6-12 months. Several great models already exist and partnerships are already in place with several other centres in Brisbane, Sydney, Toowoomba and Cairns.

2. We would look to partner/license/link in with programs such as:

a. Maru-D – Currently USA based run out of Rivercity Labs.

b. MARS – USA – coming to Australia – looking for links to Regional Centres.

c. Impact Academy – Social Impact solutions.

d. Germinate – iLab Brisbane.

HOW WE NURTURE, SUPPORT AND GROW

8 iNQ //

In addition to this there are some great opportunities to run programs for other sectors –

1. School programs – Such as ‘Start Up Apprentice’.

2. Investor Engagement – New / Re-Education of the Investor.

3. Mentor Search and Development

4. Best Practice –

a. Create opportunities for study tours to successful other eco-systems – both in Australia and Overseas.

b. Create Entrepreneurs in Residence & Visiting Entrepreneur programs.

3. Investment Pitches and Showcase events.

a. Similar to existing model – Pitch to pre-qualified potential investors.

b. Open pitch events.

4. Hackathons - In true start up fashion – Hackathons are designed to provide solutions for real world issues... either locally or globally.

iNQ would deliver a range of Capacity Programs to nurture, support and grow the creative and innovative outputs of the community.


COLLABORATEInnovation is often seen as a lonely life. But in fact, it is a highly

embedded activity of imaginative production. We there aim to connect people who are tackling similar or allied challenges

and opportunities. We do this by hosting projects and events to evolve their ideas. Through this, we can identify areas of potential innovation through cross-fertilisation and assist in the creation of

the relationships and platforms for collaborative innovation between different actors within industrial systems and value chains.

10 iNQ //

CREATEWe nurture specific projects or initiatives, providing support such as events, coaching, access to networks, help with funding, and building business skills and strategies.

ADVOCATEWe support advocates for change in business practices and industry value chain structures that will result in greater community resilience, robustness, sustainability and shared prosperity.


Our culture is to actively explore new possibilities and push boundaries. All participants are encouraged to push themselves and develop their own capabilities. For us, what’s important is how – through active participation in the iNQ ecology – participants can:1. Cultivate our collective expertise to

deliver and build the work of iNQ itself.

2. Develop each person’s ability to understand ourselves, our behaviour and what we need to learn, to

become valuable contributors and partners in the practices of creative production and collaborative innovation.

3. Become more aware of how we relate and connect to others.

WE KNOW WE ARE GETTING TRACTION AND HAVING AN IMPACT WHEN:1. We achieve strong signs of increased

social connectedness and trust building between diverse iNQ participants who previously did not connect.

2. Projects being nurtured are making strong progress, and are benefiting from the contributions of diverse participants and peer support. We also want to see promising new business and community concepts continue to emerge from the iNQ ecology, so that we have a steady stream of project prototypes.

3. We see people become better able to lead, collaborate and create new solutions. That is, we see in them deeper connectedness, sharper strategic senses and an accelerated rate of learning potential.

4. Knowledge is effectively shared so that the experiences and learnings of each diverse participant can be harnessed to save on time and energy (no point reinventing the wheel), explore novel alternatives (the creative coming-together of diverse ideas) and find new needs and opportunities.

5. Our experiences are documented and made transparent so that other communities can learn from and be inspired by our work. Collaboration and creativity knows no bounds.

6. We have created a safe place in which diverse participants can come and explore and express their values and ideas.

TRACTION + IMPACTS

iNQ // 12

WHO’S BEHIND iNQINQ IS A COMMUNITY INITIATIVE.

It is a team effort. We acknowledge the work, encouragement and support of all those who’ve worked tirelessly to cultivate a passion for innovation in regional Australia. Many are here on these pages and it is fair to say that without them the innovation ecology wouldn’t be what it is today.

As a community initiative, it can only exist by virtue of the passions, energies and commitment of those who’ve brought it this far. It is truly a village of like-minded people, from diverse backgrounds, who believe that a collaborative environment can nurture and sustain the imaginative powers of our community for the benefit of the community.

HANDS + HEADSINNOVATION IS OFTEN ASSOCIATED WITH INFORMATION AND COMMUNICATIONS TECHNOLOGY, AND THE BIOSCIENCES.

These are the “heads” of the innovation spectrum, if one will. But there’s more to innovation than writing apps for smart devices, or programming software platforms, as potentially important these may be.

Rather, innovation has the potential to cut across all domains of activity. In Northern Australia, we have diverse industries facing many different challenges; and seeking to carve out and exploit new opportunities. Many of these are less “head” and more “hands”... that is, the novelties involved are not just software-driven, but hardware enabled.

Tinkerers, makers, and industrial designers... they are creative and innovative in their own domains. The iNQ ecology can be home to soft and hardware innovators; to those who work with their heads and their hands, as well as those who bring them both together in novel and compelling ways.

The appearance on these pages does not imply that each person endorses every detail within this document. The rich diversity of opinion is something that we all cherish and respect; the common ground is a shared passion for promoting innovation and creativity as a means to regional resilience and prosperity. We thank the people whose names and faces appear here for their encouragement and expressions of interest.

Aaron BirkbyAaron SandersonAdam ConnellAdam PackerAdam SeawrightAdrian ScottAndrew JoyAngelo CocoAysegul KayahanBarton GreenBrian MillerBrian RuddleBronwyn VoyceCarl ValentineCat MatsonCatherine CowanChad RenandoChris RiegerClayton CookClinton BurchatColin FordColin KinnerDale RankineDallas DavisonDarren FinlayDavid ColeDavid CumminsDavid HalbergDean PannellDirk PriceDr Trina MyersDrazen DrazicEleniErin TebbleFrank DallmeyerGarry WatkinsGeoffrey MuldoonGerard ByrneGerry MaguireGlen RichardsGraham BellGrant BajemaIan GoughIan MossIan YesbergImelda AlexopoulosJames DoyleJoe HoolahanJohanna BeningfieldJohn WilliamsJoshua Ryan JustinJustin ReidKathy WilsonKeith NobleKeivnKristen GoldupLauren Heritage-Brand

Leonard WhittakerLes HewittLorraine LiLucas SadlerLuke BerminghamLynn SaundersMark DunworthMartin HomisanMartin LockeMatt SmithMatthew BulatMatthew TebbleMichael DempseyMichael KopittkeMikeMiranda HamiltonNatasha StanfordNeil WhitleyNick BurgePatrick BradyPaul LyonPaul TreloarPeter LauriePeter MilliosProf. Marcus FothRabin TuladharRenee TurnerRicardo SazimaRiley HoolahanRobert BuhrkeRoss HoneymanRowanRoyRussell SavageScott PiperSean CochraneSteve BaxterStuart KingTaleesaTara ParishTony IrelandTony LattinTravis FarleyWarwick PowellWayne GerardYan Yan

THE MUTUAL FOUNDATIONS

2 The precise capital structure of each emerging enterprise may vary. The advisory support of the iNQ ecology will assist entrepreneurs with the most appropriate structure.

The iNQ ecology isn’t just a shared workspace or conventional innovation centre. Our core difference is in the capital structure that forms the basis of how people and enterprises can fully participate in the environment going forward.

An organisation and capital structure has been developed to provide clear opportunities and benefits for joining as full members. The structure provides a robust context to anchor the collaborative culture and ethos that we seek to promote and sustain.

The structure is founded in the age-old principles of mutualism, and provides a means by which:

1. Risks and costs are shared by participants; and

2. Successful projects and entrepreneurs are rewarded, and at the same time, the community that nurtured them to success, is also rewarded.

WHY MUTUALITY?

Mutuality is an age-old principle of private, commercial insurance. In its historical context, it described an approach to the sharing of losses in the event of a risk event. Individuals would enter a pool, and pay according to the best estimate of the risk they bring with them.

We turn this principle of risk/loss sharing on its head, by creating a mutuality structure so that not only are costs/risks shared but successes are also shared. If mutuality has been a successful way by which groups of people share the potential downsides of future uncertainty, then

an innovative community can turn the basic principles into a way of dealing with known costs for members seeking to imagine and create new possibilities. Future uncertainties in this innovation context are not risks, but opportunities. It’s just that no one knows for sure which of the community will ultimately succeed.

An ecology founded on mutuality principles provides a means of sharing in the common development costs, and a mechanism by which all participants are incentivised to collaborate and provide mutual support.

IN PRACTICAL TERMS

Each person’s success is the success of the community. This provides powerful incentives for active collaboration and, at the same time, overcomes “moral hazard” concerns about free-riders.

All participants, upon admittance, will become full members of the mutual profit-with-purpose company. This company sits at the heart of the iNQ ecology. In return, iNQ Pty Ltd has a right to exercise an option to acquire a foundational (e.g. preference class) shareholding in any enterprise that is created from within the iNQ ecology2.

Confused? This is a learning process, so there’ll be plenty of opportunity to learn about the benefits of mutualism and contribute to the detailed shape of the capital structure in the future.

16 iNQ //

FIGURE: (A) INDICATIVE INQ CAPITAL STRUCTURE (TOP); (B) INDICATIVE INQ MEMBER ENTERPRISE CAPITAL STRUCTURE (BOTTOM)

Class A Public Value Share - Not-for-profit iNQ company

Members’ Preference Shares

iNQ foundational preference share(s)

Ordinary Shares (e.g. founders’ equity)


ALLIED FUNDING MODELSParticipating in the iNQ community enables members to become part of a funding process and set of structures that aligns community capital with the appropriate level of project or enterprise maturity.

Just as the mutuality structures underpins the sharing of costs and potential benefits, the pooled development process also enables the development of risk-mitigated funding methods that are consistent with mature structures such as Early Stage Venture Capital Limited Partnerships and Venture Capital Limited Partnerships.

Diversified pools of innovation activity provide viable “spread” of projects across key dimensions of uncertainty and risk, thereby enabling the design and manufacture of suitable financial instruments. These approaches to early stage capital provisioning are critical to enabling the emergence of viable enterprises from innovative ideas. At appropriate stages of enterprise maturity, more mature financial support can be structured and enabled – whether it takes the form of equity participation or by way of various debt instruments.

Advisory services are available to participating members, to ensure structures are appropriate for the investor profile that is being sought at any given stage of enterprise development.

At appropriate stages of enterprise maturity, more mature financial support can be structured and enabled – whether it takes the form of equity participation or by way of various debt instruments.

““

iNQ // 18

iNQ CHARTERThe iNQ Charter frames members’ intentions, behaviours and interactions. These principles are a living part of our collaborative ethos and conversation and debate about them is welcome so that together, we can co-create an innovation ecology that works for us as a community.

• iNQ has been formed to foster creativity and accelerate the development of innovative approaches and technologies to improve the resilience and prosperity of our community.

• iNQ is more than a co-work space. Members form a community of active, passionate and committed entrepreneurs and thinkers focused on tackling the challenges of today and tomorrow.

• Our individual and collective successes depend on the knowledge, skills, experiences, passions and commitment of all members.

• Together, members are committed to creating and sustaining an imagination ecology that will collaborate, experiment, learn, prosper and thrive together.

• We are guided by our commitment to sustainable business, social and community practice that underpins a passion for creating more resilient and prosperous communities in regional Australia. This public-value purpose anchors our work, and we respect our differences, embrace diversity and promote inclusiveness.

• We organize events and create experiences that encourage members to explore shared interests in and outside of work.

• The iNQ ecology is founded on mutuality principles, and is based on trust. As members, we respect and protect the privacy, confidentiality, safety, property and data of all community members and do not disclose anything that is not ours to share.

• We are proud of our collective efforts and will uphold and amplify the brand values of the iNQ community and reputation in the broader community, and act at all times with the highest levels of professionalism and ethical behaviour.

• We respect our cohabitation and work together to keep our workspace clean and presentable. Any space we use, we will leave it as good as or better than we found it.

• iNQ workspaces will first and foremost be a productive and collaborative working environment. We respect our fellow members and encourage each other to work effectively.

• Honesty, transparency and integrity underpin everything we do.


t o w n s v i l l e north queenslandemergingleaders

SOME EARLY SUPPORTERS INCLUDE:

... with more joining every day.

north queensland innovation and entrepreneurial …€¦ · townsvilles’ startup scene has been...

Documents