Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Australia

Australia

Australia is expected to reach a Total Capital Raised of US$1,060.0m in the Venture Capital market market by 2024.
In the same year, Later Stage is set to dominate the market with a projected market volume of US$491.1m.
When compared globally, the United States is forecasted to generate the most Capital Raised in 2024, amounting to US$264,500.0m.
Australia's VC market is on the rise, attracting global investors due to its innovative startups and government support for entrepreneurship.

Key regions: China, Australia, India, Europe, Israel

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Analyst Opinion

The Venture Capital market in Australia has been experiencing significant growth and development in recent years.

Customer preferences: Investors in the Australian Venture Capital market have shown a strong preference for technology and innovation-focused startups. This is due to the increasing demand for cutting-edge solutions and the potential for high returns in these sectors. Additionally, investors in Australia have also shown a preference for startups that have a clear and scalable business model, as well as a strong management team.

Trends in the market: One of the key trends in the Australian Venture Capital market is the increasing amount of capital being invested. This can be attributed to several factors. Firstly, there has been an influx of foreign investors into the market, attracted by the country's stable political and economic environment. Secondly, the Australian government has implemented various initiatives and tax incentives to encourage investment in startups, which has further fueled the growth of the Venture Capital market. Lastly, there has been a rise in the number of successful exits and IPOs in the Australian startup ecosystem, which has generated positive returns for investors and increased confidence in the market.

Local special circumstances: Australia's proximity to the Asia-Pacific region has also played a significant role in the development of its Venture Capital market. The country serves as a gateway for foreign investors looking to tap into the fast-growing markets in the region. Additionally, Australia has a strong culture of entrepreneurship and innovation, with a high number of startups being founded each year. This has created a vibrant ecosystem that attracts both local and international investors.

Underlying macroeconomic factors: The Australian economy has been performing well in recent years, with steady GDP growth and low unemployment rates. This has created a favorable environment for investment, as investors are more willing to take risks and allocate capital to high-growth sectors such as Venture Capital. Additionally, the country's strong financial services sector and well-developed capital markets provide a solid foundation for the Venture Capital market to thrive. In conclusion, the Venture Capital market in Australia is experiencing significant growth and development, driven by customer preferences for technology and innovation-focused startups, increasing capital investment, favorable government initiatives, and a strong entrepreneurial ecosystem. The country's proximity to the Asia-Pacific region and its robust macroeconomic factors further contribute to the growth of the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.