Episode overview

Steve Grace and Michael Batko had been trying to schedule this episode for over a year. When they finally made it work, the result was one of the more honest conversations about what it actually takes to build a community-driven organisation in the Australian startup ecosystem. Michael covers his Meandering path from UK consulting to piranha fishing in the Amazon to accidentally landing at Startmate, and what the numbers look like after seven years of building the country’s most recognisable startup accelerator.

From consulting to piranha fishing to Startmate

Michael chose his economics and management degree in the UK by eliminating every degree he did not want. His first job was at American Express reconciling balance sheets, then PWC consulting for three to four years before he decided he needed to get his hands dirty. He moved to Australia after meeting his girlfriend (now wife), found his way to Mad Paws as one of the first employees while the founders were wearing dog costumes at the Dog Lover Show to generate buzz, then scaled Expert 360 to 70 people. Before joining Startmate he took six to twelve months off, trekking through the Amazon and fishing for piranhas in a boat of 500 Colombians on a week-long river crossing with no phone reception.

Building Startmate from two people to a movement

When Michael joined Startmate in 2018 it was him and James Tinan. They were running the accelerator program, doing investment docs, helping companies grow, running demo days, and doing the hiring and marketing. Fourteen years after Niki Scevak founded it, the organisation now employs almost 20 people, has invested in over 250 companies worth more than $3.5 billion, helps 1,000 people per year get into startup jobs via fellowship programs, and onboards about 150 new angel investors annually. The team just ran its first international offsite in Bali.

The cash flow problem with accelerators

Michael is candid that accelerator and incubator business models have terrible cash flow. Most organisations in this category rely on universities, corporates, or governments for funding, which typically lasts a few years before needing renewal. Startmate survived by diversifying: running its own venture funds, building fee-based programs for job seekers and angel investors, and building a community that creates its own gravity. He does not recommend the model to anyone, but acknowledges Startmate found a way to make it work.

Making mistakes in people management

Steve and Michael spend time on the question of whether learning from other people’s mistakes is overrated. Michael’s position is that in people management specifically, you only truly change your behaviour after making a painful mistake yourself. Books, advice, and frameworks can tell you what to do. But the scar tissue from hurting yourself or someone else in a people situation is what actually rewires how you operate. He describes this as one of the two hardest lessons at Startmate, alongside the cash flow reality of the accelerator model.