Fintech startups are flourishingOver the past decade, Australia’s technology startup sector has developed from an inconspicuous branch with minimal activity to a thriving hub of people and investment. Australian investors are excited about the future of fintech startups in the country, possibly contributing to the success of fintech startups in raising venture capital. Australians have embraced fintech in their everyday lives, with online apps and services developing and digitalizing how we bank, shop, pay bills, and invest, to name a few. The sector is forecasted to continue expanding on a global scale in the coming years.
Who’s funding Australia’s startups?Starting a business often requires an idea, a plan, and money. Approximately one-quarter of Australian startup founders have borrowed money from family or friends to fund their startup. At the same time, around 40 percent claim they haven’t borrowed money for their startup at all. Investors also play an important role in the success of startups in Australia. Startup founders could try cold-calling angel investors to gain their support, given over three-quarters of angel investors in the country source new investments this way. While angel investors, personal savings, and loans from family and friends are important, venture capital investment maintains a significant role in the funding of startups.
Australia has become a thriving startup economy. As an English-speaking country near Southeast Asia, it is a magnet for high-quality talent from abroad. Startup hubs in metropolitan cities, such as Sydney and Melbourne, have developed a melting pot of ideas and innovation in Oceania as the startup scene continues to evolve.