Image: Kaushalya Gunatilaka, the Head of Partnerships and Community at Boab

Australia's AI Month shines a spotlight on the nation's AI prowess, aligning with the National Artificial Intelligence Centre's mission to pave the way for a responsible and inclusive AI future for Australia. Australia’s AI Month runs from November 15th to December 15th 2023. 

AI adoption is anticipated to generate up to $4 trillion for the Australian economy over the next 15 years. 

Victoria is seizing this opportunity by driving growth in our digital economy and embracing new technology adoption to position Victoria as a leader in AI. 

To help encourage further AI investment and adoption, the Victorian Government backed the establishment of Boab AI in Melbourne, Australia’s first AI start up accelerator. 

The DIF team took the opportunity to chat with Kaushalya Gunatilaka, the Head of Partnerships and Community at Boab, a venture program working with partners such as LaunchVic to accelerate the growth of high-tech AI companies. At present, the company’s portfolio comprises of 20 investments with an aggregated company value of $365m. 

Curious about Boab's mission, we asked Kaushalya what inspired her to become a part of Boab: 

'At the outset of Boab's journey, the focus was set on Artificial Intelligence companies poised for scaleup, predating the release of ChatGPT. Having previously been in the world of commercialising early-stage medtech, biotech, and healthtech companies, I saw this as an exciting new chapter for me. Not only did it present an avenue to delve deeper into the AI landscape, but it also offered an opportunity to use my knowledge and skills to empower later-stage companies as they moved onto their next stage of growth as a company.' 

With a clearer picture of Boab's mission and Kaushalya's motivation, we asked her how Boab selects startup companies for investment: 

'Startup companies are considered on a case-by-case basis. There are several factors that are evaluated, including the value proposition of the product, market opportunity, team, financials, traction to date, as well as identifying the areas that we can support. Relevant experts are consulted during due diligence before a startup is selected.' 

BOAB Launch event in 2021. Image credit: boab.ventures 

Keen to learn more about the impact Boab has had on the AI industry, we asked Kaushalya to share some examples of startups they've supported: 

'Here are some companies that have been supported by the Boab program and where they are now: StrongRoom's software solution is being used in over 50% of Australian Pharmacies and is currently rolling out to over 30% of Australian Aged care facilities and Australian public hospitals. LYRO is one of the world's few robotics companies actively deployed on-farm, working beside humans to pack up to 55 boxes per hour.' 

We also asked her to list common challenges faced by AI startups and how Boab addresses them: 

‘Access to funding: AI development and deployment can be expensive, and securing funding from investors can be challenging for startups. To address this, as a subsidiary of Artesian, we provide venture capital funding to help companies get to their next growth level. 

Resource constraints: Scaleup companies, constrained by limited funds that demand careful allocation, often find themselves unable to acquire all resources necessary for their next growth stage. Equipping scaleups with the right resources is essential to their success. At Boab, we act as catalysts, propelling companies forward by identifying areas of weakness and bridging the expertise gap through the introduction of professionals in relevant fields.  

Talent acquisition: Navigating the talent landscape to secure the right individuals with the requisite skills can be arduous and time-consuming for many AI companies. We at Boab proactively collaborate with our portfolio companies to craft compelling job descriptions, disseminate these descriptions within our extensive network, and simultaneously identify potential candidates, evaluating their suitability and reaching out on behalf of the company. This approach not only gives time back to the companies, allowing them to focus on core business operations, but also exposes them to a broader pool of talent, potentially uncovering hidden gems they may not have discovered through traditional means.’ 

She has plenty of advice for AI entrepreneurs seeking investment and support from organisations like Boab: 

‘Be transparent about your company’s progress to date, financial performance, challenges and future plans. This will create trust with potential investors and partners.    

Craft your pitch to be readily comprehensible by any layperson. Resist the temptation to oversaturate your product with excessive hype or make it appear overly complicated. Investors and partners will conduct thorough due diligence and seek expert consultation. If the experts fail to grasp the intricacies of your explanation, it could raise red flags and hinder your pursuit of investment or partnerships.’ 

Lastly, we asked her what is the most unique aspect about the Victorian AI landscape: 

‘Victoria is fueled by its world-class research capabilities and a wealth of industry-generated data. There is also a growing interest in AI among Victorian businesses, driving a collective pursuit to translate research into tangible commercial solutions.  

This collective drive has united researchers, entrepreneurs, corporates, SMEs and investors to drive innovation. Together, dedicated to transforming groundbreaking AI research into tangible solutions that revolutionise industries and transform society.   

With further funding to fuel AI commercialisation, Victoria is poised to be a global leader in AI innovation.’   

For more information about BOAB, head to boab.ventures 

Learn more about the Cremorne Digital Hub’s Scaleup Program (supported by BOAB), which aims to support tech companies in Victoria.