Australia could have the best tech startup sector: TCA

Australia has the potential to become the best place in the world to start and scale a technology business, according to a new report from the Tech Council of Australia.

The report found that in the past decade Australia’s tech startup sector has become increasingly more successful. Comparing the number of startups founded between 2013 and 2015 to the number founded between 2019 and 2022, there has been a 78% increase over this time.

Australia has produced more than 20 tech unicorns — with a value of over $1 billion — over this time period, the report states. Meanwhile the nation has also made progress in addressing funding for early-stage companies, with Australia on track to achieve the same per capita levels of funding for early stage companies as the US by 2030.

But structural funding gaps remain, which must be addressed to ensure Australia can lift high-potential scale-up survival rates to the same level as competitor markets, according to TCA CEO Kate Pounder.

“Australia is now a great place to start a tech company. We urgently need to ensure it is also a competitive and supportive place to scale it too,” she said.

“This report identifies policy changes required by government across all levels. There is already good work underway to improve Australia’s competitiveness — from skills and migration reforms to the establishment of the National Reconstruction Fund and state-based funds.”

The report lays out a number of policy recommendations for both state and federal governments aimed at ensuring Australia can continue to punch above its weight in terms of the size and performance of its technology sector.

National recommendations include setting the strategic direction for the tech sector, while expanding investment into scale-ups. The report also recommends actions to enable more Australians to move into tech jobs and to ensure existing regulatory frameworks and processes support the growth of the tech sector.

State and territory governments can also assist by supporting local strengths in tech and encouraging greater adoption of technology in the delivery of public services, the report adds.

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