A new report demonstrates the Victorian startup sector is the State’s new jobs’ growth engine with a 10.75% rise in startup jobs year-on-year between 2018 and 2020.
The pandemic has impacted Victoria’s startup employment growth, declining to 8.1% in 2020 from 13.4% in 2019, but still higher than ABS’s 3.1% pre-Covid estimates.
The Startup Employment in Victoria report from dealroom.co, in collaboration with LaunchVic, used realtime data to provide a detailed picture of startup job creation in Victoria, including the sectors creating the most jobs and the potential growth trajectory.
Victoria’s startup employment report by Dealroom
5,900 direct new local jobs were created by homegrown startups between 2018 and 2020.
Startups less than five years old generated the highest number of new jobs (39%) in this time period, employing 2,300 people. Those startups founded five to 10 years ago contributed a further 2,100 roles (35%), with companies over 10 years old creating 1,500 new jobs (26%).
The data shows that as startups grow to scaleups, job growth accelerates. The 115 scale ups in Victoria created 2,700 jobs since 2018, with 23% of these in the past two years alone.
LaunchVic’s recently established Jobs Board – a dedicated search engine for startups – also shows that more than 500 jobs are currently available in Melbourne alone.
Half of the new jobs were created by HealthTech, FinTech and enterprise software startups.
This is a demonstration of how Victoria’s traditional key sectoral strengths are adapting to changing economic and market conditions that are dictating digital transformation.
Healthtech companies added new jobs 55% faster than the already-over performing healthcare sector (+9.7% growth). Fintech and Energy startups also outpaced their respective industries, despite an annual growth rate more than two times higher than the Victorian average.
The report showed that Victorian startups that had received seed funding scaled four times faster than those that didn’t. Series A+ funded startups scaled six times faster.
LaunchVic’s startup database has tracked a total of 2,100 Victorian startups, responsible for creating more than 40,000k jobs globally, with the bulk of these in Victoria.
Dealroom and LaunchVic’s comments on the report
“Based on current growth rates, dealroom.co has projected that by 2025 Victoria will have 3,000 active startups that employ twice as many people as the sector did in 2018.”
“This exponential growth is something startups are renown for and this report confirms this growth is happening at a local level, which is incredibly exciting,” Dr Cornick added.
“A future where startups represent a major part of the new jobs being created and value to the economy is a lot closer than we think.”
“The global economy is transitioning to digital, making an entrepreneurial and innovative economy vital. Victoria’s ecosystem is one of the fastest growing ecosystems.”