There is a lack of ‘creative space’ and natural, affordable centres for start-ups to build their ventures, says Barouch.
Local Measure CEO and founder Jonathon Barouch has labelled Sydney the home of ‘pretty average city-fringe spaces’, a far cry from the utopic inner city environment techpreneurs need to flourish.
Barouch has called into question the real estate motive of snatching commercial space for residential use, terming it a major urban planning challenge that will increase in line with the innovation boom.
The ideal model Barouch has his sights set on is Silicon Valley, featuring access to educational institutions, close airport proximity, affordable rent, good transport and a vibrant culture.
“If there is one thing that Australia lacks right now in relation to its various start-ups hotspots, it is a spiritual home for the start-up sector,” Barouch said.
“In London, Singapore, San Francisco and even New York you can ‘feel’ when you’ve entered the city’s spiritual start-up centre simply by looking in the windows.”
Despite the federal government working to drive growth in the innovation sector, Barouch is certain the industry will remain stumped until real estate release their hold on available space.
“It will be several years before his space becomes online,” he said.
“If the ideas boom is going to be successful, we’re going to need space to house and network these companies together.”