LaunchVic says Melbourne startup ecosystem value has hit $10.5 billion

Dr Kate Cornick, Chief Executive Officer at LaunchVic

The Global Startup Ecosystem Report (GSER) 2021 revealed that Melbourne’s startup ecosystem value has grown by more than AUD $3 billion in the past year to more than AUD$10 billion.

This is a follow up from previous ecosystem valuations of AUD$2.21 billion in 2018, $3 billion in 2019 and $7 billion in 2020, representing a growth rate of 475% in four years.

The Global Startup Ecosystem Report findings

LaunchVic Chief Executive Officer, Dr Kate Cornick said that the report demonstrates the strength and ongoing economic opportunities for Victoria from the startup sector.

“The steady rise of technology companies amid the course of a global COVID-19 pandemic has reinforced the resilience of startups in Victoria and the growing maturity of the sector.” 

“We are gaining strength and last year we had the largest exits and acquisitions on record including Square’s commitment to acquire Afterpay for a record $39 billion,” Dr Cornick said.  

In the past year, Melbourne had a record number of exits between $50 million and $1 billion which is on par compared with other cities like Sydney, Amsterdam and Stockholm.

Inroads are also being made to improve total early-stage funding in Victoria, which increased by 35% from $363 millions to $529 millions in the previous year.

“LaunchVic focused on addressing the early-stage funding gap and we see promising results with our new angel investor networks pumping millions into Victorian startups.”

“I expect early-stage investment funding will be more impressive when the Victorian Startup Capital Fund and Alice Anderson Fund really start to get underway,” Dr Cornick said.

LaunchVic’s partners welcome startup ecosystem growth

Minister for Employment, Small Business and the Digital Economy Jaala Pulford said, “It is fantastic to see the rise in value of the Melbourne startup ecosystem.”

“This is testament to the powerhouse of founders, talent, investors and the startup community being cultivated in Victoria to create startups with global reach and currency.”

Melbourne ranked in the Top 25 for subcategories of Connectedness and Talent.

This was possible with a well-connected network of startups and scaleups as well as a high percentage of experienced founders and people with tech and life sciences.

The city was also identified for its strengths in Life Sciences – attracting approximately AUD $511 million in Life Sciences funding each year, or 40% of the national total.

Fintech success, with more than five unicorns headquartered in Melbourne collectively valued at more than $30 billion like Afterpay, Airwallex, Judo Bank, MYOB and PEXA.

Globally, Melbourne ranks equal 36th with Geneva/Bern, Delhi and Dublin.