The 2024 Startup Muster report, Australia’s largest survey of startups, highlights the progress, challenges, and opportunities in the startup ecosystem, with a special focus on the deep tech sector in collaboration with Main Sequence.
As we say goodbye to 2024, Australia’s startup scene is buzzing like never before. From uni grads with big ideas to seasoned entrepreneurs who’ve learned from the trenches, there’s a new wave of Aussie founders ready to shake things up.
They’re tackling everything from tech and AI to sustainability, all while juggling the highs and lows that come with launching a business. Curious about who’s behind the next big thing? Let’s dive into the real stories of who’s making moves, why they’re doing it, and what’s keeping them up at night.
Who’s Behind the Startup Boom?
The founders driving today’s startups come from some of Australia’s top universities, including the University of Technology Sydney, the University of New South Wales, and the University of Sydney. These schools are breeding grounds for future innovators. But the story doesn’t end with academic credentials. Around 45% of founders are still involved in previous ventures, either running them or pivoting to something new. This shows a strong entrepreneurial spirit, with many balancing full-time startup work alongside part-time jobs.
When it comes to education, it’s clear that degrees matter. Many founders hold advanced degrees, with a notable number from Monash University and the University of Queensland. A Master’s or Bachelor’s degree provides a solid foundation, but it’s the specialized knowledge and entrepreneurial mindset that seem to fuel success. These degrees help founders tap into networks and gain the technical expertise needed to navigate the complex world of startups.
While many are thriving, the path to success isn’t always smooth. A surprising 42% of founders report challenges in co-founder dynamics, which can make or break a business. Funding hurdles and user acquisition issues are also common struggles. Yet, despite these obstacles, many founders report positive experiences, including selling their startups for amounts they’re happy with. These successes provide a glimmer of hope for those still working to break through. What’s the driving force behind all these new ventures? For many, it’s personal—solving problems they’ve faced themselves or turning research ideas into marketable products. Others are driven by dissatisfaction with their previous jobs or the thrill of building something from the ground up. The COVID-19 pandemic also pushed many people to rethink their careers and explore entrepreneurship as a viable option. Whether it’s a deep-rooted need for change or a spontaneous idea that turned into a business, the reasons for starting up are as varied as the founders themselves.
While some are still working from their home offices, many founders are seeking community and collaboration in coworking spaces like Stone & Chalk, Fishburners, and UTS Startups. These spaces aren’t just places to work—they’re ecosystems of innovation, where founders can network, share ideas, and find support. However, the shift from home offices to dynamic workspaces is growing, with many planning to move to better locations as they scale.
What are they creating?
The industries startups are focusing on in 2024 are cutting-edge, with a heavy emphasis on technology and sustainability. Artificial intelligence, software development, medtech, and fintech are leading the charge, reflecting the global demand for solutions that tackle complex, real-world problems. From greentech and cybersecurity to healthtech and education, the breadth of industries being impacted is impressive. It’s a clear sign that innovation is happening everywhere—and it’s accelerating. When it comes to revenue, most founders are betting on B2B sales and subscription-based models to generate income. As for growth, the focus is not just on Australia—many are eyeing global expansion, with the USA and the UK topping the list of target markets. On average, it’s expected that it will take about six years to reach $10 million in annual revenue, which highlights the patience and long-term vision required to succeed in the startup world.
In conclusion, the startup landscape in 2024 is thriving with energy, creativity, and resilience. Founders are pushing boundaries, solving problems, and making bold moves to grow their businesses. With the right mix of education, motivation, and strategy, the future looks bright for the next generation of entrepreneurs.
Team Skills and Hiring Trends
In 2024, startups are focusing on building well-rounded teams with strong technical and business development skills. The most commonly sought skills include software development, sales/business development, and product management.
- Skills startups wish were in their teams: Many founders highlighted gaps in AI skills, data science/analysis, and legal expertise.
- Employee growth: Startups averaged 10 paid employees and 5.5 outsourced workers over the past year, with plans to hire more in the coming year. There is a significant increase in demand for AI expertise, which is now integral in key functions such as content creation, marketing, and customer service.
Despite the growing need for specialized talent, 33% of founders reported struggles with finding candidates who possess the necessary skills. In particular, technical competencies, real-world experience, and communication skills are in high demand.
- Outsourcing: Many startups continue to rely on outsourced workers, especially in areas like accounting, marketing, and legal. Australia remains the top destination for outsourcing, but a growing number of startups are also working with teams in India and the Philippines.
The role of AI
AI continues to gain traction, with 70% of startups using AI to assist in various business functions. The most common areas for AI application include content creation, software development, and marketing. AI is also driving operational efficiencies, although some startups are still not monetizing their AI capabilities directly.
- AI Tools: Popular AI tools among startups include OpenAI, Claude, and Gemini, with many startups integrating these into their products or services.
Certifications: A growing trend
In the realm of certifications 24% of startups currently hold certifications, with 29% planning to acquire them. Certifications like ISO27001, SOC2, and B-Corp are seen as crucial for expanding into regulated industries and improving credibility. Certified startups tend to report higher revenues and are more likely to scale successfully.
- Revenue Impact: Startups with certifications report higher average revenues, averaging $3.9M compared to $800K for those without certifications.
Startups are increasingly outsourcing work, with 80% of startups outsourcing tasks such as software development, graphic design, and content creation. While compliance certifications are important, many startups, especially those in their early stages, prioritize rapid growth and innovation over regulatory compliance.
- Compliance Insights: 72.7% of startups currently operate without formal certifications, reflecting a focus on speed and adaptability over regulatory requirements. However, as startups mature, certifications and compliance are likely to become more critical.
Challenges and triumphs founders faced
Starting a business is a journey that can feel like a thrilling rollercoaster ride—full of ups, downs, and unexpected twists. If you’re thinking of launching your startup, you’re not alone in feeling a mix of excitement and uncertainty. For many founders, the road to success is paved with challenges, and understanding these obstacles can be key to overcoming them.
Let’s break down some of the most common hurdles that entrepreneurs face today, as well as the surprising insights into what’s holding back potential founders.
1. Life’s Big Demands
Life doesn’t stop when you start a business. Whether it’s caring for dependents, dealing with a mortgage, or simply needing to save money before diving into the world of entrepreneurship, many founders find their personal responsibilities competing with their business ambitions. Almost 27% of founders say personal life circumstances are a major barrier, while others struggle with a lack of time, confidence, or even childcare support. It’s a balancing act!
2. Financial Hurdles
Money is always a big concern, and for 39% of founders, securing funding remains the most significant challenge. Whether it’s accessing venture capital, finding investors, or managing resources effectively, financial uncertainty can create roadblocks at every stage. Plus, 16% of founders are also bogged down by the need to save money before making a leap into entrepreneurship.
3. Lack of Support
Going solo can be a lonely path, especially when you’re missing key resources like technical skills, mentorship, or even emotional support from a partner. Almost 12% of founders mention the lack of support from loved ones as a critical factor that slows them down. And without the right community or collaboration opportunities, it’s easy to feel stuck.
4. Confidence Crisis
Starting a business requires believing in yourself and your idea. However, a lot of founders struggle with self-doubt. Around 12% of entrepreneurs admit they lack confidence in their abilities, which can hold them back from taking those bold steps that lead to success. If you’re doubting your potential, remember that even the best founders face these fears!
5. Where to Start?
A whopping 20% of would-be founders are simply unsure where to begin. The fear of not knowing the right steps to take can freeze entrepreneurs in their tracks. The key here? Start small, ask questions, and take that first step, no matter how daunting it seems.
Unique challenges for female founders
When it comes to gender, female founders face a distinctive set of challenges. According to recent data, 39% of female entrepreneurs struggle most with securing capital, while male founders tend to focus more on customer acquisition and scaling. There’s also a significant gender gap in accessing networks and support services, which is crucial for growth. As your business grows, so does the temptation to take it global. Founders are increasingly eyeing international markets, but expanding beyond Australia is easier said than done. Many founders face regulatory hurdles, expensive operational costs, or a simple lack of infrastructure in foreign markets. About 41% of founders wish to expand sales outside Australia, but the reality of execution is often much more complicated than the dream.
Where do founders turn for advice? Surprisingly, many rely on trusted books and online platforms. A popular read is The Lean Startup, a bible for those navigating the tricky waters of building a business. In addition, platforms like LinkedIn, Coursera, and even YouTube offer valuable learning opportunities, providing insights and inspiration for entrepreneurs across the globe.
But even with all these resources at hand, 52% of founders still admit that finding the right help and connections is a challenge.
Despite these challenges, many entrepreneurs continue to push forward, spurred on by the belief that success is within reach. The key to overcoming these obstacles is resilience, creativity, and a willingness to learn from others. Whether you’re looking to expand your customer base, raise capital, or simply find your first paying customer, the journey might be tough, but it’s also incredibly rewarding.
So, if you’re ready to take the plunge, know that you’re not alone in facing these struggles. Every founder has been there—facing the fear, doubting their abilities, and wondering if they’re making the right decisions. But with the right mindset and support, those hurdles can be cleared, and the path to entrepreneurial success can be yours.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
