Sydney Startup Hub shuts down right now, after seven years, due to the NSW authorities.
And proper now it’s clear that in relation to startups, the federal government couldn’t organise a piss-up in a brewery, to make use of one of many extra well mannered variations of the idiom.
One other method of explaining it’s that they’ve bombed the Sydney Startup Hub to “reserve it”.
When NSW science, innovation and expertise minister Anoulack Chanthivong revealed the transfer in December 2024 he had no particulars past ‘someplace in Tech Central’.
Eight months on, the Startup Hub’s future continues to be unclear.
The minister, who appears busier than a Round Quay busker, can also be in control of the higher regulation, honest buying and selling, business, commerce, constructing and corrections portfolios.
Minister Anoulack Chanthivong on the NSW Finances Estimates committee listening to this week. Screenshot
So you could possibly forgive him if startups aren’t on the prime of his precedence record. The sector extra broadly, and this author, have picked up that vibe since Labor got here to energy in 2023 and kicked off by reducing funding to the Sydney Startup Hub.
The Hub has been residence to Stone & Chalk, Tank Stream Labs, Fishburners, Antler, the incapacity accelerator Exceptional and Microsoft Reactor, and others, in addition to the Regional Touchdown Pad and Worldwide Pad, with room for 1800 individuals and round 500 startups. Shared desks began at round $100 per week.
Its significance to the sector ought to be remembered in Tim Fung, chair and CEO of ASX-listed Airtasker turning as much as assist construct the Tank Stream Labs web site there.
Since Chanthivong introduced the transfer, the brand new location felt like a state secret for many of 2025.
However we now know, due to the Funding NSW web site that it’s the Sydney Scaleup Hub at 477 Pitt St, Sydney, 2km down the highway, which is being rebranded as Tech Central Innovation Hub.
Deal not carried out
The one factor is, simply days earlier than the closure, Funding NSW had not but finalised a deal for a possible operator, as InnovationAus reported on Wednesday. And who’s going there’s additionally up within the air.
And the one tenant, other than Stone & Chalk, which operates the Scaleup Hub on behalf of the federal government, hoping to relocate there from the present web site, is Fishburners, which even because the doorways are supposed to shut, awaiting a inexperienced gentle for its transfer, is staying put till at the very least mid-September.
Within the meantime, the opposite tenants have scattered to the winds, ending the collaboration that embodied the Startup Hub because it opened in 2018.
Coworking area Tank Stream Labs and accelerator and investor Antler gained’t be a part of the brand new web site and made different preparations. The Microsoft Reactor has gone.
Stone & Chalk, which operates in Sydney, Melbourne and Adelaide, bailed from York Road early, and has been a vocal supporter of Tech Central, with a vigorous social media advertising and marketing marketing campaign backing the idea.
But it surely’s value remembering that they misplaced $6.95 million within the 12 months to June 2023, on prime of a $1.5 million loss within the earlier 12 months.
Stone & Chalk CEO Chris Kirk
CEO Chris Kirk spent appreciable time righting the ship, telling Startup Every day in March 2024 that: “Over the previous six months, we’ve applied a complete motion plan to fortify our monetary place and safe long-term sustainability. We’ve efficiently labored with our companions to safe extra funding, and on the similar time, seen vital progress in our nationwide startup and scaleup group.”
Stone & Chalk’s consolidation from previous web site is sensible in that gentle, particularly given the repeated assertion that York Road was “not commercially viable”.
The Covid pandemic remodeled how individuals work and whereas the federal government subsidised the Startup Hub web site, it’s clear that Stone & Chalk, in addition to Tank Stream Labs and Fishburners struggled below a brand new monetary dynamic.
However the query stays within the context of early-stage startups: what does industrial viability appear like and what’s one of the simplest ways to help corporations with little money and sometimes pre-revenue if you’d like them to return to town?
In any case, premier Chris Minns is the one who known as for staff to get again to their CBD places of work to help the financial system.
An absence of desks
There was additionally a telling second in the course of the NSW Finances Estimates committee hearings on Monday, when the Funding NSW management was requested in regards to the change and the maths didn’t add up.
Liberal MLC Jacqui Munro, the shadow assistant minister for innovation, stated her understanding was that “Wynyard had about 600 desks accessible, and now there may be 250 desks accessible”.
Funding NSW head of innovation and entrepreneurship Liza Noonan stated that speaking to the tenants, they’d “been working at one thing like 50% occupancy on the startup hub”, whereas three-and-a-half flooring have been vacant for a while – “we misplaced anchor tenants in company phrases like Optus and Caltex years in the past,” she stated – and “the product that the Sydney Startup Hub is providing was now not aggressive” amid “a really aggressive co-working market within the Sydney CBD”.
The Tech Central Scaleup Hub at 477 Pitt Road, designed for extra mature corporations, gives suites and different amenities for 60 scaleups, in addition to shared workplace area throughout two flooring, with round 150 desks. It was developed by the previous Coalition authorities.
Noonan stated there’s at the very least 100 extra desks accessible on the Pitt St web site for the transfer.
I’m not Sir Isaac Newton, however could I counsel that if “round half” of 600 desks had been getting used, and the brand new provide is “at the very least” 100, and apparently 60 startups have already put their hand up for area, even when you assume the 150 scaleup hub desks are additionally accessible, you’re nonetheless providing much less area than the Startup Hub’s present utilization ranges.
As a result of the price of a desk can’t be disclosed, one thing that puzzled Munro in a chicken-before-the-egg method, it’s onerous to determine whether or not it’s a problem in comparison with the previous web site. Are founders being priced out of Sydney? We don’t know.
Noonan advised Finances Estimates “we do imagine there’s emptiness. I’d must tackle discover the precise quantity of emptiness inside the Stone and Chalk flooring”.
Followers of Sir Humphrey in Sure Minister would respect the genius of this: there are vacancies on the web site the place we haven’t sorted out who’s working the place and nor a deal to relocate the organisation needs to maneuver in. There ought to be a podcast on how detectives solved the thriller of the empty desks.
Antler started life on the Sydney Startup Hub in 2019. It’s moved elsewhere with the shutdown
Greater than 1,800 startups have been residents on the 11-floor constructing above Wynyard prepare station. Collectively they’ve created round 6000 jobs and attracted practically $1 billion in funding, whereas one other 50,000 individuals have been to greater than 1000 occasions there, and one other 4000+ entrepreneurs from regional NSW have dropped in to make use of free desks and assembly rooms there.
That’s in line with Funding NSW. That determine appears like an inexpensive ROI for taxpayers, particularly when you evaluate to dimension, scale and returns of different authorities business help.
The Minns authorities broke the York St lease. How a lot doing that has value taxpayers is one thing Funding NSW stated it needed to “tackle discover” – a shocking choice since this debate is all in regards to the enterprise case and its value to taxpayers.
Noonan stated they’d been actively making an attempt to fill that area, there wasn’t market demand.
“So I feel we return to the purpose, and the rationale the choice was made was that the industrial fashions of the anchor operators within the Sydney Startup Hub was now not viable based mostly on post-Covid working habits of startups,” she stated.
A historical past of value reducing
In the meantime, please keep in mind is that the NSW authorities gutted Funding NSW in April 2024, with 1 / 4 of its workforce lower, and positioned it below the management of premier Chris Minns, the person who can discover $16 million for cage fights staged by a verbally abusive promoter, but lower startup funding, together with to the Sydney Startup Hub, when Labor got here to energy in 2023.
The federal government is spending $5 million in capital expenditure on the relocation, together with making the scaleup hub extra appropriate for startups, with a refurbishment of stage 13.
Again at York St, 3.5 ranges on the CBD hub have been empty for “a while”, Noonan stated, and there has not been a “market demand” to exchange departed company tenants like Optus and Caltex.
“We regarded on the market demand on the [startup] hub, and we regarded on the present occupancy of the Scaleup Hub. We thought there was an actual alternative to consolidate providers and programming for startups in any respect phases of their journey inside Tech Central,” she stated.
“So our view and our modelling was that that was the very best plan of action.”
Munro requested what was taking place with Fishburners saying “they’ve began partnering with WeWork – is that as a result of they haven’t been in a position to come to an settlement that permits them to maneuver into Tech Central?”
“We’ve been partaking carefully with fish burners all through this whole course of. My understanding with Fishburners is that they’ve had a reasonably vital have a look at their enterprise mannequin and looking out on the wants of startups that they serve,” Noonan replied.
“They usually’ve really had suggestions from residents that they’d choose a extra networked strategy, together with residency right here in Sydney, but in addition in places around the globe which the partnership with WeWork.”
She didn’t need to touch upon what’s taking place or the price of desks on the new location as a result of “we’re in negotiations at the moment with the anchor operator [at the Scaleup Hub]… so I wouldn’t need the assertion I make right here to affect the end result of these negotiations for each Fishburners, different operators within the ecosystem, and clearly for startups themselves will accommodate.”
“Negotiations” is actually gobsmacking. Eight. Months. On.
It’s onerous to imagine that anybody within the Startup Hub, given the sector’s mindset, tried to tug out negotiations, so the place ought to blame be apportioned for uncertainty for the lots of of founders and startups searching for a spot to work and unclear about their future within the week when the federal government is shutting down the location?
Munro requested about why it’s shutting now, when the unique launch stated October. Funding NSW appeared unaware of that element. We quoted Minister Chanthivong’s “October” announcement right here final December in the event that they want a reminder.
Not my fault
Earlier in Finances Estimates, minister Chanthivong, who proved to be a grasp of delegation by way of who was liable for choices, blamed the previous Coalition authorities for the demise of the present Startup Hub. The Laboregovernment made the “proper choice”, however Funding NSW is liable for what’s taking place with the relocation.
TL;DR. Wasn’t me gov, trustworthy reality.
“The federal government made the choice to wind up the Sydney Startup Hub based mostly on the truth that the contract that was signed by the previous authorities was so unhealthy that it wanted to be completely revamped,” Chanthivong stated.
“The communication course of with the tenants has been taking place since late final 12 months, the federal government made a really clear choice in winding up the Sydney Startup Hub given its non-commercial viable nature, and the administration strategy of the relocation of tenants, is one thing that I’ve tasked the Funding NSW to handle.”
Munro requested is the minister would meet with the startup sector to listen to their considerations.
He obfuscated and declined.
Minister, I’m asking you on behalf of the startup sector and founders in NSW to decide to holding a public listening to the place individuals can ask you and Funding NSW questions in order that they know what’s coming and what’s taking place from you, because the minister accountable. Will you’ll you try this?” Munro requested, for a second time.
“Look, Stone & Chalk help the transfer and as do the anchor tenants. The federal government, by means of Funding NSW, has tasked the division to supply ongoing help and recommendation for individuals who search to relocate,” Chanthivong replied.
The promise
“New lodging at Tech Central will embody a refreshed service providing extra attuned to supporting various individuals and groups to startup and scale efficiently. It is going to proceed to supply an inexpensive place for each startups and scaleups to fulfill, collaborate, work and develop,” the Funding NSW web site explains.
“This transfer helps guarantee startups and scaleups can collaborate with a whole ecosystem proper on their doorstep. It’s all about giving the help to construct Australia’s subsequent tech unicorn.”
One other option to describe the federal government’s plan – it’s hoping to launch an precise technique for Tech Central at some unnamed time down the observe may finest be described as Covid redux.
It’s hoping that by strolling previous Canva in Surry Hills on the best way to work, startup founders may catch unicorn vibes and turn out to be billion-dollar tech corporations too.
Then the minister can stand beside them in a hit story photograph alternative.
Besides he gained’t get to, nor will future ministers, as a result of proper now, Sydney startups should survive regardless of the NSW authorities, not due to it.
Startup Every day approached the minister’s workplace with an in depth record of questions, however didn’t obtain a response earlier than publication. It has now been included beneath
Stone & Chalk and Fishburners additionally didn’t response to requests for remark.
- Editor’s word: A spokesperson for the minister issuing the next assertion shortly after publication:
“The Sydney Startup Hub is a first-rate instance of the Liberal-Nationwide Authorities’s legacy of waste and mismanagement.
“Once they signed the contract to run the Hub in late 2022, they knew the COVID-19 pandemic had impacted startups and decreased demand for workplace area.
“Since then, the hub has constantly struggled to fill accessible desks, generally sitting at round 50% capability.
“Former Minister Alistair Henskins and the Liberal-Nationwide Authorities locked taxpayers into subsiding workplace area that nobody needed. Their choice has left taxpayers, authorities, startups, and anchor tenants all worse off.
“Funding NSW stays in negotiations with Stone & Chalk, the anchor tenant on the Scale Up Hub, for the transition of start-up providers into a brand new Tech Central Innovation Hub.
“The NSW Labor Authorities tackles points head on to wash up the mess that the Liberals left behind and we’re working to make sure the brand new Tech Central Innovation Hub is sustainable and worth for tax payer cash.
“Transitioning to Tech Central will allow founders, entrepreneurs, traders, and corporates to collaborate extra carefully with universities and analysis institutes, in Australia’s main innovation precinct.
“Within the 2025-26 Finances, the NSW Authorities dedicated round $80 million in help for the innovation sector, together with $38.5 million for Tech Central.”
- Disclosure: Startup Every day hosted common occasions on the Sydney Startup Hub, and sponsored a few of its tenants. Fishburners CEO Majella Campbell cohosts Startup Every day’s weekly podcast, Startup 360, with this author. We additionally utilized for an Funding NSW grant for the Greatest in Tech awards, nevertheless it was declined.
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