Melbourne’s startup ecosystem exceeds growth predictions, valued at US$4.8 Billion

Melbourne startup ecosystem exceeds predictions, valued at $4.8 Billion
Dr Kate Cornick, CEO of LaunchVic

Results from the Global Startup Ecosystem Report (GSER) released today have revealed that Melbourne’s startup ecosystem value has grown by over US$2 billion in just the past 12-months.

With steady growth from US$1.6 billion in 2018 to US$2.24 billion in 2019 and US$4.8 billion in 2020, the results demonstrate just how much the Victorian startup ecosystem is growing, and how Melbourne has the opportunity to create more high skilled jobs.

Modelling released from LaunchVic in partnership Deloitte Access Economics earlier this month found that the Victorian startup ecosystem had the potential to add on average an additional 15,000 jobs each year to the broader Victorian economy over the next 20 years.

“In 2018, Start Genome predicted the Melbourne ecosystem would be worth over $4 billion in a few years but it has achieved this in just two years.

These results show how fast our sector is developing and that it is a key contributor to the Victorian economy,” said LaunchVic CEO, Dr Kate Cornick.

What areas have realized the most growth?

Melbourne has also made substantial inroads for talent and performance, ranking in the top 15 startup ecosystems for these indicators. Melbourne was also recognised as a strong performer in the Life Sciences and Fintech sub-sectors.

Life Sciences is currently Victoria’s largest in terms of density accounting for 18% of all startups. Fintechs, while accounting for just 7% of startups, are raising significant capital to support very high growth rates.

In the last financial year, almost 80 per cent of the $2 billion allocated to Australian startups was for funding rounds led by Victorian fintech companies.

“The report highlights the importance of the startups to the broader economy. With continued support, we expect the sector to continue to grow, create next-generation jobs and generate economic returns locally and for Australia” said Dr Cornick.