Cicada’s Liza Noonan on R&D’s new valley of death & the ‘missing middle’ for deep tech

Cicada’s Liza Noonan on R&D’s new valley of death & the ‘missing middle’ for deep tech R&D investment and commercialisation can't be treated as separate issues, says Liza Noonan, CEO of Sydney deep-tech hub Cicada Innovations, on episode 61 of Startup 360. Liza unpacks deep tech — think quantum computing, medical devices and advanced manufacturing — and the unique challenges the sector faces with Simon and Majella on this week's show. Unlike software startups, where founders identify a customer problem and build a solution, deep-tech startups often begin with a breakthrough invention and then work to find its commercial application. The result is longer development cycles, greater capital requirements, and a need for different founder skills, investors and support structures. It's not the Silicon Valley SaaS playbook. Australia's research engine is stronger than many people realise, but there remains a bottleneck in turning ideas from the lab into large, globally competitive companies. Government procurement, infrastructure and scale-up support can matter just as much as venture capital. Simon describes the Budget's proposed changes to the R&D Tax Incentive as creating a new "valley of death" for deep-tech startups. Liza argues the challenge isn't simply funding research. It's helping companies move from "0 to 1" (proving the technology), then from "1 to 10" and "10 to 100" (building a business around it) so the productivity gains, jobs and economic returns are realised in Australia rather than ending up offshore. Liza also shares the experience of losing her father while raising three children, as Startup 360 once again explores the human side of tech. Simon also discusses his submission to the Senate Economics Committee examining the Federal Budget's proposed capital gains tax changes and their potential impact on startups, founders, investors and employees receiving equity. Startup 360 is a SmartCompany production, produced and edited by Matt Jackson with Ciarán Harte, and supported by Deel. Hire, manage and pay anyone, anywhere. Subscribe on Apple, Spotify and YouTube, and read StartupDaily.net for the latest ANZ tech news.