Only one IT entrepreneur makes Young Rich top ten

Stephen Withers
Thursday, 25 September 2008 10:10

Opinion and Analysis

Of the ten richest self-made Australians under 40, only one made their money in IT. What does that say about us as a nation?

Business Review Weekly magazine is well known for its annual Rich List of the wealthiest Australians. That issue garners exceptional sales figures.

But BRW also also compiles the Young Rich List, restricted to those aged under 40 that made their own fortunes as opposed to inheriting wealth. Consequently, a common reason for being dropped from the list is the accumulation of years rather than the loss of assets.

This year, there's only one person in the Young Rich List top ten that made their money in IT. Simon Clausen was formerly part-owner of software business PC Tools, which was sold to Symantec earlier this year for a reported $300 million.

BRW estimates Clausen's wealth at $170 million.

This underlines an ongoing problem with Australia's IT sector. The usual exit strategy for the founders of IT businesses is an acquisition by another company in the field, and that typically means selling out to overseas interests.

And when that happens, what do they do with the money? It's hard to think of any serial entrepreneurs who start again and build another IT business of an appreciable size.

What's Clausen doing next? See page two.