binarypublishVictoria’s startup ecosystem has surpassed $100 billion in value, growing by $12 billion in the past year, according to a report from LaunchVic. The report, produced in partnership with dealroom.co, found that the combined value of Victoria’s startups and scaleups rose from $91 billion to $103 billion. The ecosystem has grown in value 18 times since 2016 and includes more than 3,200 startups and scaleups, as well as 19 unicorns. The report also identified the top five tech companies in Victoria: REA Group ($20.7 billion), Carsales.com.au ($11.5 billion), Seek ($9.4 billion), Airwallex ($8.5 billion) and Telix Pharmaceuticals ($2.9 billion). In terms of employment, the top five employers in the ecosystem are REA Group, SEEK, MYOB, Carsales and Judo Bank, collectively creating 7,500 jobs.
However, VC investment in Victorian startups has returned to 2018 levels, with $668 billion reported between January and November 2023, compared to $2.4 billion and $2.2 billion in 2021 and 2022 respectively. The report also highlighted some areas where the ecosystem is underperforming against global benchmarks. For example, only 25% of Victorian startups have raised at least $5 million, compared to the global average of 30%, and only 15% have had an exit via strategic sale, buyout, or IPO, compared to more than 30% worldwide.
Despite these challenges, LaunchVic CEO Dr. Kate Cornick stated that the Victorian startup ecosystem continues to grow. She expressed concern about early-stage investment and the need for startups to have access to capital. The report highlights that the number of investors in the ecosystem has increased by 50% since 2019, and the number of jobs in startups has risen by 12.6% since 2020 to 26,400.
