The State of Australian Startup Funding 2023

Access to insights collected from over 1,000 ambitious Australian founders and investors in the hope to provide collective access to data on the Australian startup fundraising landscape.


Folklore Ventures

February 6, 2024

Folklore is proud to share the latest State of Australian Startup Funding Report, co-authored for the 3rd time alongside our Report partner, Cut Through Venture.

Featured in the report, you'll find wide-ranging data and commentary on the Australian startup funding landscape, including insights from more than 1,000 founders, investors and angels.

In providing equitable access to funding information from a wide range of perspectives, our goal is a collective understanding of the state of startup funding landscape, to help shape a positive future for Australian startups who continue to showcase their talent on a global stage.

Alister Coleman, Founder and Partner at Folklore Ventures provided commentary on data collected, stating:

"Over the last decade, Australia has seen three generations of talented founders; those who emerged alongside a nascent VC industry; those who scaled with our industry; and teams now emerging from companies created by the first two generations. During this period, Australian startups have participated in foundational technology changes, the rise and demise of tech ‘trends’, a pandemic, and a complete economic cycle.

For these generations, 2023 displayed a recovering funding environment reflective of 2020’s data, with $3.5 billion deployed and ‘just’ 413 deals recorded. Changing investor expectations led to decreased deal volumes, deal sizes, and valuations as markets forced the hand of many, and conservatism and rationalisation took hold. For those who only found venture investment at its peak, this adjustment was chilling.

Across 2023, Seed stage rounds were least impacted by market movements, whereas Series B and later stage companies saw average valuations fall 41%, material layoffs, and concerns around viability that will persist into 2024. Positively, international investors participated in at least 42% of all recorded deals in 2023, and 70% of local investors expect international investors to be more active in 2024. Consequently, 82% of founders believe they’ll successfully raise in the next 2 years alongside an expectation of fundraising by multiple VC firms.

Muted in a sea of more positive results are the modest improvements in gender-diverse startup funding, with participation in deals recovering from 2022 lows to a 5-year peak of 12% and 26% by all-female or mixed-gender teams, respectively. As our industry grapples with strategies to improve funding for gender-diverse startups, every surveyed investor agrees that this funding tide must rise. 

As we enter 2024 with a more positive outlook, it is important to remember that Australia’s startup funding market is resilient, to exercise an elasticity over our expectations, to encourage ambitious goals, and to embrace and empower a more diverse group of founders, builders and investors. There is much to play for, great gains to be made, and a reservoir of talent to be nurtured.

Thank you to the founders and investors who contributed to this year's Report. We hope you find it insightful and valuable."

The Report can be accessed here.

For all media enquiries, please reach out to Rochelle Ritchie via

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