Why the Australian Startup Ecosystem is becoming an attractive market for growth stage investing.
As a venture capital fund with a global investment strategy across Europe, the U.S. and South East Asia (SEA), we at Burda Principal Investments are always excited to explore new markets with relevant opportunities. Recently, our attention has turned to Australia, which we believe has much more to offer then pristine beaches and vibrant cities. Below are the key reasons why we believe the startup landscape in Australia is interesting for growth stage investing right now.
Firstly, the Australian startup ecosystem has been a flurry of activity in recent years and following the deployment of significant early-stage capital, the market is ripening and maturing now for later stages of growth and the capital to support it. With more than 650 closed deals, venture capital funds have invested a total of AUD $5.8 billion into the ecosystem in 2022, more than doubling AUD $2.4 billion in 2020. We see this as a great opportunity for BPI as a growth stage investor.
What also appeals to us as international investors, is the inherently global mindset of entrepreneurs in Australia. Given it’s landmass, the 26 million population of Australia is relatively small and as such, super-scaling capacities in the domestic market are somewhat limited. Ambitious Australian entrepreneurs are thus pushed to develop globally viable solutions early on. Examples of great Oz businesses who have followed and succeeded in this expansion model are Canva, Atlassian, or Afterpay.
BPI has had a presence in Singapore since 2016 and so Australia’s geographic proximity to our local South-East Asian hub, makes it a strategic stepping-stone in the region. Local presence allows us to easily monitor and support portfolio companies, as well as tap into the talent and resources of the region. BPI’s cross-regional expertise and knowledge of adjacent key markets we believe also makes as an appealing partner for these ambitious growth start-ups mentioned above.
„Overall, we believe that the Australian startup ecosystem presents an interesting opportunity for growth stage investing. The maturing ecosystem, global ambition of startups, and proximity to BPI‘s key markets make it a compelling market for us to explore.“, says Christian Teichmann, CEO of Burda Principal Investments. We are excited about the potential for growth and success of the later-stage startups in this region and look forward to supporting their expansion.
If you are or know any exciting businesses in the region we should be looking at, reach out to us at investments@burda.com