Australia startups turn to Silicon Valley as local investors shun risk

Sydney

FOR the cost of a Sydney home, Paul Evans would be able to market an electric-car engine that could help put Aussie innovation back on the map. In risk-averse Australia, most investors would prefer to buy a house.

The entrepreneur has been shunned by local venture capital funds in attempts to raise A$3 million (S$3.2 million) for a product that's been a decade in the works, despite what he describes as strong interest from some global carmakers. Now, after a series of fruitless investor meetings, he's heading down the inevitable path: straight to the US.