Venture Capital funding continues to offer potential for growth in Australia, despite reaching new peaks in aggregate capital in 2018.

Overseas funds continue to maintain their contribution levels to total funding, while local institutions have also joined the fray.

Australia has a thriving startup ecosystem which is driving growth across all parameters such as funds raised, funds deployed, revenue metrices and exits.

Contents

Key Takeaways

Introduction to ANZ Venture Capital ecosystem

Australian VC: Rapid recent growth with room to continue

• Growth in total value and number of funds raised
• Potential for a slowdown in fundraising
• Overseas investors remain a key source of capital in a growing VC market, but have not increased their overall share of VC funding
• Institutional investors begin to engage with local VC
• Growth in funds raised by startups
• Diversification of capital along the startup journey
• Absolute growth and relative decline for the overall ecosystem
• The Australian outlook is strong, but the next five years will prove decisive for key drivers of ecosystem growth like institutional investor participation
• The outlook for the New Zealand market is more uncertain

Leading local VC firms

Key trends

• Post-dotcom bust revival intensifies
• The virtuous cycle begins
• Mid-fund returns look promising, but realised returns will be decisive for the industry’s future

Profiles

• Blackbird Ventures
• Airtree Ventures
• Reinventure
• Square Peg Capital
• Skip Capital
• Grok Ventures
• Equity Venture Partners
• BlueChilli
• Bailador
• SouthernCross
• MacDoch Ventures
• K1W1
• NZVIF

Recent investment activity

Appendix A: Venture Insights map of Australian startup ecosystem

Appendix B: Largest recent raises by industry

• Software
• Commercial Banks
• Commercial Services
• Healthcare Devices & Supplies
• Energy Services

Appendix C: Top 20 recent raises

Appendix D: Highest raising local startups

• Judo Capital (now known as Judo Bank)
• Airwallex
• Deputy
• CultureAmp
• SafetyCulture
• Canva

Appendix E: Detailed statistics on most active VC firms

List of charts/tables

Figure 1. Annual Australia-based VC fundraising, 2007-2018

Figure 2. Australia-based PE & VC assets under management by fund type, as at June 2018

Figure 3. Funds committed to VC in Australia, 2013-17 to 2017-18, by % offshore and onshore sources

Figure 4. Funds committed to late stage PE in Australia, 2013-17 to 2017-18, by % offshore and onshore sources

Figure 5. Largest investors in Australian VC ecosystem, by total AUM (AUD, ), as of April 2019

Figure 6. Venture capital deals in Australia, 2009-2018

Figure 7. Investment in Australian VC, by stage, 2009-2018

Figure 8. Annual Australia-based VC investment, by industry, 2013-2018

Figure 9. Startup Genome Ecosystem rankings, 2019

Figure 10. Cumulative VC investment in New Zealand, 2006-2018

Figure 11. Investments by stage in New Zealand, 2008 versus 2018

Figure 12. Investments by sector in New Zealand VC, 2008 versus 2018

Figure 13. Investments by geography in New Zealand VC, 2008 versus 2018

Figure 14. Funds under management by Australian VC firms, AUD millions

Figure 15. Most active investors over last year, by # deals (April 2018 – March 2019)

Figure 16. Top 20 raises of 2018

Figure 17. Value of funds raised by Australian startups, by stage/source, 2018 onwards

Figure 18. Total # VC financing deals, by industry, 2018 onwards

Figure 19. VC deals in Australia by industry, 2013-2018

Figure 20. Average deal size (AUD, m), by industry, 2018

Figure 21. Deal value (AUD, m), by industry & stage, 2018 onwards

Figure 22. Number of deals, by industry & stage, 2018 onwards

Figure 23. Ecosystem Map of Australian startups

Figure 24. Top 10 raises in software, 2018 to present

Figure 25. Top 10 raises in Commercial Banks 2018 to present

Figure 26. Top 10 raises in Commercial Services, 2018 to present

Figure 27. Top 10 raises by in Healthcare Devices & Supplies, 2018 to present

Figure 28. Top 10 raises in Energy Services, 2018 to present

Figure 29. Company profiles: top 20 raises of 2018-2019

Figure 30. Overview of most active investors, by number of deals in last 12 months

Figure 31. 2018 Australian startup ecosystem map (1 of 2)

Figure 32. 2018 Australian startup ecosystem map (2 of 2)