“In Silicon Valley companies are not so dependent on the market economy,” Mr Hawthorn said. “They have just entered a new business cycle after lots of company attrition. People are now more focussed on capital efficiency, rather the spending effusively, thinking about where their next $1 million will come from.”

Mr Hawthorn said now is a great time for Australian companies to take advantage and build products that customers really want in the US market.

 

“If a company can get in early at that part of the cycle the momentum of the cycle will take them with it,” he said.

Mr Hawthorn said the US market was still very tough in areas like the Mid-West.

He said an infrastructure of Australian companies based there meant the US technology market was easy to access for domestic companies looking to build value into their balance sheet.

“You are no longer seen as the outsider, you are seen as another Aussie who has some really good ideas. It’s analogous to the Israeli expat community that embedded itself there years ago.”

“If they can develop a market in the US, Australian compainies can build value more quickly and increase their profile in the mergers and acquisitions market if or when they choose to exit.”

Mr Hawthorn said despite 2009 being a tough year for start-ups, it had the unexpected benefit of forcing companies to evaluate and raise products rather than seek out capital.

Mr Hawthorn’s company, ATP Innovations, works with 50 resident companies in the National Innovation centre helping them to expand their business with advice, capital and network and peer facilitation.