Australian Startup Ecosystem 2025: Sydney vs. Melbourne and the Rise of Deep Tech Investment
Australia’s startup ecosystem is flourishing in 2025, gaining global recognition for capital efficiency and innovation. As per Forbes Australia , the country is now the most capital-efficient startup nation worldwide, with a robust valuation of US$360 billion, six home-grown decacorns, and over $4 billion in VC investments in 2024 alone. Among key drivers is a supportive regulatory environment and initiatives like the National Reconstruction Fund. These efforts attract international capital and boost institutional and superannuation funding, strengthening Australia's startup pipeline. Sydney: The Powerhouse of Innovation Sydney leads with nearly $55 billion in ecosystem value, capturing two-thirds of national VC funding. The Tech Central district, proximity to top universities, and institutions like the Quantum Academy and Cicada Innovations drive breakthroughs in AI, digital health, and cybersecurity. The city's connection to Asia-Pacific and high-end engineering talent furthe...