Startups in Australia - statistics & facts
Australia has developed a flourishing startup environment. Startup hubs in metropolitan cities, such as Sydney and Melbourne, have contributed to a melting pot of ideas and innovation as the startup scene continues to evolve. While the North American region has the highest number of unicorns worldwide, the Oceania region is also host to a few billion-dollar startups. Unicorn companies such as Canva, Judo Bank, and Airwallex are some of Australia’s most successful startup companies, with a strong presence globally. Australia ranks among the leading countries for startups worldwide, with venture capital investments supporting expansion of the nation's new businesses.
Australian investors are excited about Climate Tech, Clean Tech, AI, and Big Data startups in the country. In terms of the future of startups, artificial intelligence can already perform many job functions and improve efficiency, and will likely continue to support rapid development of startups across all sectors.
The Australian startup landscape
Like most companies in Australia, startups had to adopt new business practices during the COVID-19 pandemic, and many of these practices continue today. While co-working spaces were common for startups pre-pandemic, the work location for most startups is now a home office. Most Australian startups are headquartered in New South Wales, the country’s most populous state. The industry makeup of startups in Australia has shifted over the years, with more Green Tech, clean energy, and decarbonization startups entering the market each year. While Australia has high-quality talent within the country, many tasks are outsourced by startups.Startup investment and future developments
Starting a business requires an idea, a plan, and money. The leading funding sources used by startups included using their own cash and borrowing from friends and family. Furthermore, venture capital investment has a significant role in the funding of startups. The total value of capital raised by startups in Australia saw a substantial increase in 2021, exceeding 10 billion Australian dollars. That level of funding has not been repeated since, with venture capital funding expected to decline in 2023.Australian investors are excited about Climate Tech, Clean Tech, AI, and Big Data startups in the country. In terms of the future of startups, artificial intelligence can already perform many job functions and improve efficiency, and will likely continue to support rapid development of startups across all sectors.
