Question 1

Is the Australian startup market actually growing, or is the activity just noise?

Accepted Answer

The market is experiencing substantial expansion, with total investment reaching US$672.2 million across 139 completed deals in FY17. This growth is underpinned by a strong capital pipeline, as VC firms raised US$797 million in new funds during the same period.

Question 2

Which specific technology areas are attracting the most capital right now?

Accepted Answer

The Information Technology sector is the primary driver of activity, securing US$383.9 million in investment during FY17. Capital is specifically concentrating in Business/Productivity and Social/Platform Software sub-sectors, which currently lead in investor interest.

Question 3

Are investors focusing on established players or new entrants?

Accepted Answer

There is a significant pivot toward the earlier stages of the lifecycle, with 40% of all deals now occurring at the Seed, Angel, or Early stage. This shift indicates a high risk appetite for nascent businesses and a robust pipeline of new digital platforms entering the market.

Question 4

Where is the geographic center of this investment activity?

Accepted Answer

New South Wales is the dominant hub for venture activity, attracting US$340.0 million in investment value in FY17. This represents over 50% of the total US$672.2 million deployed across the entire Australian startup ecosystem.

Follow the money

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Key Takeaways

Frequently Asked Questions

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Key Takeaways

Frequently Asked Questions

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