Australian Startup Funding Started Well In 2019 But Investment Is Slowing
More than $2.6 billion was spent by investors and companies in the first three months of 2019, on tech startups in Australia.
However, startup data collection company Techboard, has released its March report today which indicates investment growth may be slowing.
The first quarter of 2019 was great for mature startups as larger businesses turned to M&A deals and grew. This was particularly assisted by CBA’s $1.6 billion acquisition of property exchange network PEXA (Property Exchange Australia Ltd). Other funding still topped $1 billion in the first three months of the year.
The quarter as the largest for funding since Techboard began producing its reports.
Over 150 funding events including accelerator program funding, acquisitions, equity crowdfunding, major debt instruments (venture debt), grants, initial public offerings, ASX placements and private investment (including angel, VC and other large-scale private investment) make up the investment types as identified by Techboard .
One investment used an initial coin offering (ICO) which is a controversial fundraising concept that ASIC has blocked on several occasions in the last 12 months.
A new equity crowdfunding record was set by Victorian-based female ridesharing service Shebah, raising $3m.
Fintech Moula used debt funding to secure $250m, which the report outlines as the third largest on record.
Techboard found private investment (including angel, VC and other large-scale private investment) was second most prominent form of funding at $477m.
Foreign investors played a major role in larger scale investments and private investment was at $476m however, Techboard’s historical data on private investment reveals trends during FY19 has shown a general decline in the number of funding events per quarter.
StartupAus CEO Alex McCauley said, “Looking at the overall levels of private investment for the last three quarters compared them to the same period in the previous year shows that while the overall level of investment was increasing, the rate at which it was increasing had declined over the past three quarters.”
The Report and Interactive Charts are available for free from Techboard here.
2 May 2019