Policy makers got a 400x return on their investment in Cicada Innovations 25 years ago, according to analysis of the incubator’s economic impact commissioned for its quarter century anniversary on Tuesday.
The $20 million initial backing from state and federal governments has translated into $8 billion of impact from capital raised, jobs created and spillover benefits of the residents of the deep tech accelerator.
Cicada alumni include chip maker Morse Micro and cancer treatment pioneer Clarity Pharmaceuticals, and there are high hopes for current residents like hydrogen innovator Rux Energy and chip fabricator Syenta.
Set up in 2000 as part of the Australian Technology Park in Sydney to stem the loss of local innovation to overseas markets, it was a relatively novel concept at the time.
“Commercialising research was a new concept in Australia when this project was first started,” Cicada Innovations chair Katherine Woodthorpe said.
“As Australia’s first true innovation incubator, Cicada was a leap of faith for many of our early supporters; particularly our university shareholders, The University of Sydney, UNSW, UTS, and later ANU, but has resulted in one of the nation’s greatest success stories.”
Cicada offers workspaces and startup support services but is well known for also facilitating connections with policy makers and investors. It has expanded into additional biomedical and health incubators and added sector specific hubs for space and agrifood.
For deep tech founders, the incubator has provided the innovation “rocket fuel” to survive and thrive for years before generating revenue, Rux Energy founder Dr Jehan Kanga said.
It has allowed companies like Rux, which is commercialising advanced hydrogen storage technology, to keep experimenting and developing while connecting them with the right partners and investors, he said.
It is the reason a new wave of Australian companies are on the precipice of disrupting global industries like energy, resources, semiconductors and health, according to the Rux founder.
“Cicada is the most important piece of innovation infrastructure in Australia,” he said.
“I’d ague that in the last five years alone under the leadership of former [Cicada] chief executive Sally-Ann Williams it grew to become the most impactful deep tech hub on the planet.”
Ms Williams departed in June and this month former NSW government innovation lead CEO Liza Noonan takes the reins after architecting much of the state’s new innovation policy.
“… [W]hile momentum for deep tech investment and ecosystem support is accelerating we must recognise that it runs on different timeframes and risk profiles, which is why long-term, consistent support is essential to turn scientific and technological breakthroughs into sovereign industries,” Ms Noonan said.
Original funding for Cicada consisted of $11 million from the federal government’s Building Better Cities program and around $9 million from the NSW government in land contributions and refurbishment of the National Innovation Centre.
According to Cicada’s modelling, the incubator has delivered $8 billion in economic activity, based on $6.5 billion in capital raised, high-skill job creation, and broader innovation spillovers driven by the ventures it has supported.
Do you know more? Contact James Riley via Email.