KPMG: VC investment hits $230m and Australian startups are reaping the benefits

Elizabeth Barry 18 July 2017

startup capital

KPMG says the near-record numbers indicate a maturing startup ecosystem.

Venture capital (VC) investment has hit a near-record of $230 million in Australia in the second quarter of 2017, according to the quarterly VC trends report published by KPMG. The number of deals has also increased from 25 last quarter to 36.

Head of KPMG Australia's High Growth Ventures, Amanda Price, said this quarter's data shows investment in Australian startups is growing significantly, with fewer but larger deals.

"This indicates a maturation in our startup ecosystem, with more early-stage ventures achieving success and seeking funds to super charge their growth, often in international markets,” she said.

Startups closed a number of funding rounds this quarter. There was also a surge in corporate financing, with $109.1 million invested in Australian startups by corporate venture funds.

“Founders are seeing increasing interest from corporates, media and government in Australia and this reflects the fact that VC funds raised over AUD$1 billion for the first time last year, almost double the $568 million raised in 2015-16."

"With more capital available and deal flow up strongly on previous years, I expect investment to continue to be strong over the year."

Australia's upward swing in VC investment is following a global trend, with VC deal value increasing by 55.3% globally to $40.07 billion in Q2 2017. The US led VC investment ($21.8 billion), followed by Asia ($12.7 billion) and Europe ($4.1 billion).

Looking for an alternative source of funding for your startup? Consider a startup business loan.

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