- Melbourne’s startup ecosystem exceeds growth predictions, now valued at US$4.8 Billion (USD) / $7 billion (AUD) and ranking in the Top 15 APAC ecosystems for Talent and Performance.
- Regional sub-sector strengths are Life Sciences and Fintech
Results from the Global Startup Ecosystem Report (GSER), released last week, have revealed that Melbourne’s startup ecosystem value has grown by over US$2 billion in the past 12-months alone.
Value increases year on year
- 2018 – US $1.6 billion
- 2019 – US $2.24 billion
- 2020 – US $4.8 billion
With steady growth from US$1.6 billion in 2018 to US$2.24 billion in 2019 and US$4.8 billion in 2020, the results demonstrate just how much the Victorian startup ecosystem is growing, and how Melbourne has the opportunity to create more high skilled jobs.
Modelling released earlier this month from LaunchVic (Victorian startup investor agency), in partnership Deloitte Access Economics, found that the Victorian startup ecosystem had the potential to add on average an additional 15,000 jobs each year to the broader Victorian economy over the next 20 years.
“In 2018, Start Genome predicted the Melbourne ecosystem would be worth over $4 billion in a few years but have achieved this in just two years. These results show how fast our sector is developing and that it is a key contributor to the Victorian economy,” said LaunchVic CEO, Dr Kate Cornick.
Melbourne was recognised for talent and performance, ranking in the top 15 startup ecosystems for these indicators. Life Sciences and Fintech sub-sectors were particularly strong areas.
Life Sciences is currently Victoria’s largest in terms of density accounting for 18% of all startups. Fintechs, while accounting for just 7% of startups, are raising significant capital to support very high growth rates. In the last financial year, almost 80 per cent of the $2 billion allocated to Australian startups was for funding rounds led by Victorian fintech companies.
“The report highlights the importance of the startups to the broader economy. With continued support, we expect the sector to continue to grow, create next-generation jobs and generate economic returns locally and for Australia,” said Dr Cornick.