Between April and June 2019, $120 million of startup investment was recorded in Australia. The number of deals, at 17, was down on the last quarter (23), when investment totalled $148.4 million.
Globally, overall venture capital (VC) investment held steady over the April to June 2019 quarter, reaching $52.7 billion. VC deal volume declined for the fifth consecutive quarter, reaching only 3,855 deals, as high valuations and fierce competition – particularly at the seed stage − combined to produce an evening in the pace of deal-making.
Amanda Price, Head of KPMG Australia High Growth Ventures commented: “The past 12 months has seen Australia surpass previous milestones when it comes to investment in startups. We continue to see greater amounts raised by later stage startups, with businesses like Airwallex and Canva raising significant later stage rounds.”
“There was some fall off in deal size and volume over the first six months of the year of 2019, something that could be attributed to a pause as investors considered the implications of the Australian federal election. However, we’ve also seen Australian VCs close large funds in the same period which would suggest we can expect to see the growth trend of startup investment continue,” she added.