This is the second article in a week where I've read the complaint that banks don't loan money to Aussie startups. However I think you'll find banks don't lend money to startups pretty much anywhere in the world. Banks aren't the place to secure funding for high risk ventures - VCs, Angels and crowdsourcing are.
I think the bigger issue in Australia is that the VCs here have a terrible investment track record, so banks and other investors are less likely to given them funds to invest.
There are a couple of things that could change here to improve things. The first is that it's currently easier to bet $15K on Melbourne FC to win the AFL Grand Final than to invest the same amount of money in an Aussie startup. That's completely crazy - it makes becoming an Angel in Australia a burden.
The second potential is Australia's vast pool of super funds (401Ks in US terminology). They can't invest in either startups or VCs because it's "too risky". However they should be allowed to invest a portion of the fund - say 10%. That would make a huge difference to the funding available to startups here.
Given that Australians have the highest per capita gambling losses in the world (http://www.economist.com/blogs/graphicdetail/2014/02/daily-c...), I'm surprised that the regulations around funding startups are so risk averse. Also ironic that angel investing from super funds is deemed "too risky" but using your super to get an interest only mortgage to buy an "investment" property with negative cash flow is just fine. Clearly there are powerful established interests at work...
EDIT: Given that Melbourne are currently 15th on the AFL ladder anyone would be crazy to bet on them winning on the Grand Final. Port Adelaide, on the other hand... ;)
I think the bigger issue in Australia is that the VCs here have a terrible investment track record, so banks and other investors are less likely to given them funds to invest.
There are a couple of things that could change here to improve things. The first is that it's currently easier to bet $15K on Melbourne FC to win the AFL Grand Final than to invest the same amount of money in an Aussie startup. That's completely crazy - it makes becoming an Angel in Australia a burden.
The second potential is Australia's vast pool of super funds (401Ks in US terminology). They can't invest in either startups or VCs because it's "too risky". However they should be allowed to invest a portion of the fund - say 10%. That would make a huge difference to the funding available to startups here.