Adrian Di Marco
organised for beer on tap in the TechnologyOne common area after seeing it at Atlassin.
TechnologyOne founder Adrian Di Marco says start-ups most often fail because they become complacent.
However, those that fail because of a lack of cash should be helped by abolishing research and development tax credits, and redirecting the savings to encourage investment in early-stage companies.
"They start off with an idea, with passion and vision, and using new technology to conquer the world, then they become successful and start to become bureaucratic, slow and resistant to change," Mr Di Marco
"It was change that allowed them to build their start-up but then they become resistant to it and locked into technology, and the world passes them by."
Mr Di Marco
enterprise software firm is in the business of buying start-ups that run out of steam.
"We acquire these businesses, give the founders an exit so they make some money.
They're happy to go because it all got too hard and for us, we pick up some IP and bring it across to a new technology platform," Mr Di Marco
"I see this as a regular cycle."
comments before TechnologyOne's
acquisition of infrastructure management specialist Jeff Roorda and Associates
for about $10 million last week.
When asked if his observations applied to the JRA
acquisition, Mr Di Marco
said it was a strategic deal, and Mr Roorda and his staff would join TechnologyOne
Mr Di Marco
had been in business for about 30 years, doubling in size about every five years or so.
said the secret to his
longevity in business was a strategy to reinvent the business approximately every seven years, rebuilding technology from the ground up, and restructuring the organisation and business model.
In the current reinvention, TechnologyOne
is transferring software to the cloud, while still allowing its large enterprise and government clients to have a customised user experience.
"What we'll do for a tenth of a second is we'll look at your unique world.
You'll have a configuration with your policies, your procedures, your colours and themes, your delegations, what screens and fields you want, what validations," Mr Di Marco
Mr Di Marco
is also "pretty religious" about spending about 20 per cent of revenue on research and development.
This year the R&D run rate is about $45 million.
believes R&D tax credits are pointless.
Companies such as his
are too big to need them, while start-ups are generally not profitable enough to need them.
"We're a big company, we're successful, we're going to do the R&D irrespective - it's wasted on us, to be honest," Mr Di Marco