Techboard is pleased to deliver our fourth Annual Funding Report on Australian Startups and Young Technology Companies for the 2021 Financial Year. This report is being published as companion Report to Techboard's first Report on Female Founder Funding covering FY 2018-2021.
The 2021 financial year saw strong overall growth in startup and tech funding with total funding breaking $10b AUD, up 64% from FY20 $6.184b. Private/VC investment in FY21 grew to $4.263b, which was up 26.6% from FY20 $3,368b. The funding type making the biggest contributor to the high rate of growth of funding was debt which grew 149% from $1.092b in FY20 to $2.72b in FY21. This was mostly in the form of fintech lending, much of which was government backed and due to COVID 19.
Public funding via the ASX also saw strong growth increasing by $1b from $1.613 in FY20 to $2614b in FY21 with IPOs jumping from 8 in FY20 to 25 in FY21. Grants/Awards and Equity crowdfunding also showed strong growth.
Most states recorded growth in overall funding levels, led by the largest states New South Wales and Victoria. New South Wales recorded the highest level of funding at $4.664b (a massive 77% jump from FY20) across 437 funding events, Victoria saw 39% growth to $3.821b spread across 264 funding events.
Highlights from Techboard’s Annual Funding Report FY21
- Total funding exceed $10b AUD for the first time, up 64% from FY20 ($6.184b)
- Private/VC investment in FY21 grew to $4.263b, which was up 26.6% from FY20 $3,368b
- Debt grew from 149% from $1.092b in FY20 to $2.72b in FY21
- Public funding via the ASX saw strong growth increasing by $1b from $1.613 in FY20 to $2614b in FY21
- IPOs jumpied from 8 in FY20 to 25 in FY21
- New South Wales recorded the highest level of funding at $4.664b (a massive 77% jump from FY20) across 437 funding events
- Victoria saw 39% growth to $3.821b spread across 264 funding events.
- The proportion of private investment going to female founded companies from a combined 44.4% to 29%. This represented a drop in their proportion of private funding for mixed teams of -16.2% and solely female founded teams of -23.1%.
- The dominant categories for the year were Fintech (up 26% to $2.659b) and Health & biotech which grew 144% to $1.364.
- The average size of private investment or VC round has jumped 58.9% to $11.19m
- The number of deals in the sub $1m and $1-$5m ranges relatively static from FY20 to FY21.
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