An excellent write up Camden55 - your comments are well made and I will keep some of these for my future reference as they are hard to fault and show a great deal of thought.
In continuing the discussion as I'd be interested in hearing more of your (and others) thoughts, I would like to perhaps re-direct the focus away from established organisations and more toward the new start-up. There doesn't really exist a "venture capital" industry to speak of in Oz (to the extent that such exists in Europe, the Americas or certain key hubs in Asia).
I wholeheartedly agree with your point that in the decade running up to the GFC, the investing frenzy gave way to truck-loads of cash being thrown at any and every new business. Every company (seemingly) experienced temporary greatness, regardless of business model, service offering or value proposition.
Such negligence was always likely to end in tears... and who knows what further tears are left to be shed until normality returns (if such is to return - at least in my lifetime).
But back to the new start-ups - life is pretty difficult for these companies right now because their only option is to issue shares. No bank is lending. So they either issue new stock or they shut down.
From such companies - the next Ramsay Health (or Monadelphous) success story could arise, but I agree that the probability of success is very low even if what the company has to sell may be groundbreaking.
We would all love to have in our portfolio the next Sirius but we are (at least) ten times more likely to hold the next Marion Energy (or Bluescope).
It would appear that Australia's position (as a general observation) is to give these companies a wide berth - a self-fulfilling prophecy of doom it could be argued. And where does this leave the future of innovation in our homeland?
I'm glad I touched a nerve with you on this subject for it has brought out words of wisdom and some food for thought, so thanks.
