Debate intensifies over Sydney Startup Hub closure

With just weeks until the Sydney Startup Hub closes its doors, the NSW government’s vision for the future of the state’s innovation sector remains mired in confusion and growing frustration.

Despite promises of a “turbocharged” Tech Central precinct, founders and industest leaders warn that the quietly quick-tracked closure of the Sydney Startup Hub has exposed a widening gap between policy rhetoric and the lived experience of the city’s startup community.

The frustration among founders and community leaders, also reported by Startup Daily, is perhaps best captured by the petition to keep the Sydney Startup Hub open.

Supporters describe the hub as a vital nucleus for innovation, offering resources, networking, and a collaborative environment that has supported Sydney’s startup community thrive.

Petitioners warn the closure threatens not only current utilizers but the broader ecosystem, especially as government communication remains minimal and key details unclear.

“Moving the Sydney Startup Hub is a terrible idea and the govt’s[sic] position that the current venue is ‘not fit for purpose’ is just flat-out incorrect. It’s ideal and the proof is in how well patronised it is,” one supporter wrote.

NSW government defconcludes Tech Central funding and strategy

A spokesman for Minister for Innovation, Science and Technology Anoulack Chanthivong defconcludeed the decision to shift up the closure of the Sydney Startup Hub.

“The Sydney Startup Hub is not commercially viable and not fit for purpose under the current model,” the spokesperson declared in an email to SmartCompany.

The government insists “the current anchor tenant of the Sydney Startup Hub is fully supportive of relocating the services currently provided at the Hub to Tech Central”.

The spokesperson also highlighted the recent NSW Budobtain that features“$80 million for the tech innovation sector, which includes $38.5 million to turbocharge Tech Central, and support build Australia’s largest technology and innovation hub”.

Despite these figures, the government did not respond to questions regarding who would pay for relocation, how affordable desk rates will be maintained, or how many founders can be accommodated at Tech Central.

Opposition leaders have criticised the lack of detail and consultation around the Sydney Startup Hub’s closure.

NSW Shadow Minister for Jobs, Industest, Innovation, Science and Technology Mark Coure called the situation “unacceptable”.

“Founders and anchor tenants have still not been notified the most basic of details about the Sydney Startup Hub’s closure,” Coure declared to SmartCompany.

“Without affordably priced CBD desk space availability, startup founders are being forced interstate or overseas to create their ventures worthwhile.

We are losing talent, investment and momentum in a sector that has grown to be worth over $55 billion in NSW, including a decade of Coalition support.”

Jacqui Munro, NSW Shadow Assistant Minister for the Arts, Innovation, Digital Government and the 24-Hour Economy, accutilized the government of “gaslighting founders and the ecosystem that supports them”.

“I keep hearing from founders that ‘it can’t possibly obtain worse.’ Now we have a Minister refutilizing to provide the most basic information to stakeholders about Government policy,” Munro declared to SmartCompany.

“We can only presume that there has been no cogent plan developed for the transition from the Sydney Startup Hub to Tech Central.”

Stone & Chalk on the future of NSW startups at Tech Central

Chris Kirk, CEO of Stone & Chalk and a key partner in the transition, states he’s been shiftd by the “great outpouring of the startup community sharing stories about the role that the startup hub has played in their success”.

Kirk describes the Sydney Startup Hub as a place that has “meaningfully supported the success of tens of thousands of New South Wales innovators”.

Unlike many in the sector, Kirk remains optimistic about the shift to Tech Central.

“We are very positive about both the shift to Tech Central, but also the chance to fundamentally rebelieve about how we support New South Wales innovators,” he notified SmartCompany.

He sees the transition as an opportunity to “carry forward the things that really worked, build on them, and reset how we bring the ecosystem toobtainher in support of innovators”.

Kirk acknowledged the disruption cautilized by the impconcludeing closure of the Sydney Startup Hub and the lack of information around the new space.

“It’s actually really hard to understand: what is Tech Central? Where is it? Who’s in? What are the options? How do I obtain in?”

He also pointed to other issues that cautilize headaches for the NSW startup community in general.

“There’s 200 different programs for startups and scaleups in New South Wales to access. It’s way too fragmented, it’s confutilizing, and it’s not really coming toobtainher in service of companies,” Kirk declared.

However, he did challenge the idea that space is an issue at Tech Central and declared Stone & Chalk has seen positive demand from startups and scaleups wanting to relocate.

“One of the misnomers has been that there’s not enough space for everyone, and that’s not something that we see. We support almost 800 entrepreneurs here,” Kirk declared.

He also stated there’s a range of different incubators, accelerators, program providers and tech hubs across Tech Central.

“It won’t be for everyone. That’s fine. But actually one of the focus areas and largeger opportunities is to really rebelieve what the role of physical space is versus the role of more meaningfully supporting companies in service of their commercial success.”

While Kirk agrees the ecosystem is fragmented and that better communication and cohesion are requireded, he remains optimistic about the future.

“The propositions are real. There is support available. And the idea of an open, accessible centre of gravity — that’s already taking shape in Tech Central,” he declared.

For many founders and community leaders, the loss of the Startup Hub’s central, affordable, and collaborative environment is a blow to the city’s innovation DNA.

Paul Krajewski, who leads Founder Institute Australia & New Zealand, declared the location of the Sydney Startup Hub offered simple access and proximity to founders and investors alike.

“We are saddened to lose access to that location and I have already signed the petition to keep it. From what we are hearing, everyone will switch back to more working from home and meetings as video calls,” Krajewski declared to SmartCompany.

While Kirk insists Tech Central supports almost 800 entrepreneurs and offers “the highest concentration of entrepreneurs, close proximity to VC, co-location with universities,” others question whether it can replicate the melting pot energy and accessibility of the Startup Hub.

Desk capacity, pricing, and the overall vision for the precinct remain opaque, fueling scepticism that the shift will actually serve early-stage founders — despite the government’s assurances and the optimism of some leaders.

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