Austrade’s NYC accelerator for Aussie fintechs with an empire state of mind

It was golden hour across the New York skyline. Dozens of floors up in a building on 3rd Avenue, the waning sun set the room ablaze as smartly-dressed people mingled, clinked glasses and hoped to make life-changing connections.

Up here it felt like anything was possible. Regardless of where you started, you were now staring down at one of the great epicentres for business and dream-making. Maybe you could even make the sprawling city below yours someday. It was truly the perfect backdrop for the Aussie fintechs standing in front of those gleaming windows, pitching for their future.

Image: Tegan Jones

This event is the Scale-Up Demo Day, a collaboration between the Australian Trade and Investment Commission (Austrade) and WEVE, an accelerator that specialises in international startups that are expanding into the US market.

It also marks the conclusion of a week-long program where seven Australian fintech companies received mentorship and networking opportunities in collaboration between Austrade and FinTech Australia. They also attended Fintech Nexus, New York’s largest dedicated fintech conference.

The program itself was the result of the Australian government’s commitment to the fintech sector several budgets back. Despite a change of government and current economic precarity, it’s still going strong with a fresh crop of businesses.

And here they were, standing in front of the New York sunset with only three minutes to pitch their business to a room full of human question marks. It was unclear who was in the intimate crowd — competitors, potential investors, networkers with their own hopes and agendas. Perhaps even a nosy journalist.

And the pitches were impressive.

These weren’t green startups with little experience and a ‘fake it till you make it’ attitude. This year’s cohort included well-established companies such as Paypa Plane, Ezypay and Data Zoo. There are also some newer, but quickly growing businesses, like HumanbleHX and DoxAI.

But regardless of how long they have been in business, to be accepted into the program, these fintechs had to meet certain criteria and be ready to take the next step.

Aussie fintechs on the brink of scaling up

Image: Tegan Jones

“For us, the key is that these companies are ready for the US. Five of the seven are already here, and the other two will follow,” Rachel Howard, the Trade and Investment Commissioner for Austrade New York, said in an interview with SmartCompany.

“So this landing pad program is really an opportunity to solidify the network in New York and across the US. And that’s why we have not just the program aspects, but also the conference part with FinTech Nexus, which is really about the business development angle and the customer lead generation.”

One of the common themes of the evening was how sophisticated Australia is when it comes to financial services. As a result, our startups and scale-ups are innovative and robust.

“What we’ve seen in the last week and a half is that the Australian capabilities are really highly regarded,” Howard says.

“The sophistication that we’ve got in the financial markets is a really great launchpad to come across to the US where it’s a very different structure and a lot of different challenges.”

With just six states, two territories and relatively centralised regulation, Aussie fintechs have a lot to learn when it comes to the intricate and confusing web the US presents. To operate here, there are different requirements and regulations across the 50 states.

The red tape runs for miles.

Even those that are well-established, have done the research and perhaps have already moved here can often need a hand. Mistakes can be expensive here.

And that’s where programs like this can step in.

“It’s been really good to understand the way business operates in the US. We do have staff here and we’re looking for the best way to support them from Australia,” Vinnie D’Alessandro, chief product officer at Change Financial, tells SmartCompany.

“We really want to grow in the next 12 to 18 months in the US so it’s that local knowledge we wanted. What’s really interesting is how consistently they talk about the differences per state… but there are some consistent threads that work across payments and banks. But you do have to be mindful when you do land in another state of tax, different laws and regulations.”

D’Alessandro also praises the networking opportunities and the generosity that those in US had when it came to sharing connections and information. After having talked to Bluestone Lane’s Nick Stone just that morning about the ‘Koala Mafia’ in New York, this sounded familiar.

“They’re very open to connections in New York and doing introductions just because they can — they’re open for a little self-promotion, which you need to do in business development,” D’Alessandro says.

“And they’re so supportive and open to have a chat about anything. Even if they can’t help you directly, they usually know someone who can. The second-tier connections I’ve been able to make through the sessions has been amazing.”

What Austrade is looking for in its New York fintech program

Image: Tegan Jones

For Austrade, it looks for businesses that are scaling up, rather than starting up, for this program. Some may already be profitable or already operating in another market outside of Australia. It’s a competitive process to be selected.

“A starting point is the product — it has to be a real product that’s been tested and has a solid customer base, either at home in Australia or somewhere else,” Howard explains.

She also touches on the ability of a product to be adapted if the market fit isn’t quite there, as well as the experience and maturity that tends to be found within the fintech sector.

“In general… a lot of the founders have done other startups or come out of the banking sector. So there’s a lot of experience that they bring to the table as well.”

While the week may be over, the relationships between the businesses, Austrade and FinTech Australia certainly aren’t.

“We want to be working with these businesses over the next few years as they’re growing and fully building out their teams,” Howard says.

“For companies we haven’t worked with before this program, this is the beginning.”