Victorian FinTech companies have dominated key funding rounds, accounting for almost 80 per cent of $2 billion allocated to Australian startups in the last financial year.
Techboard’s Australian Startup and Young Technology Company Funding Report found that the most significant funding results were led by Victorian unicorns Property Exchange Australia Ltd (PEXA), which was acquired for $1.6 billion, and Judo Bank, which secured $930 million.
Unicorn companies are startups that have developed to the point where they are valued at more than $1 billion.
Other Victorian companies including Lift, Airwallex, Culture Amp, A Cloud Guru, Afterpay, Paradigm biopharmaceuticals, Moula, Nauticus and Shebah were also listed in the report as having significant funding rounds.
The most significant funding source was private investment including Australian and foreign venture capital, corporate investment and angel investment.
Financial services is the largest sector of the Victorian economy, employing more than 120,000 people and contributing $47 billion annually.
Australian FinTech was responsible for more funding rounds in the 2018/19 financial year than any other sector, accounting for 37 per cent of identified support.
Techboard found that Victoria dominated funding rounds across all startup sectors, with $4.4 billion of funding heading to local companies compared with $1.5 billion to New South Wales outfits.
The Andrews Labor Government has secured Australia’s premier FinTech industry events for Melbourne in 2020 – the national fintech awards known as ‘the Finnies’ in June/July and the Intersekt conference in October.
Two Labor Government supported Fintech Hubs, Stone & Chalk and YBF Ventures (formerly known as York Butter Factory), continue to support startups in Melbourne’s thriving fintech sector.
Quotes attributable to Minister for Jobs, Innovation and Trade Martin Pakula
“A strong and growing financial services sector and a thriving FinTech startup ecosystem make for a powerhouse combination and it’s great that we’re leading the country.”
“The funding wins recognise the innovation and excellence of our startups and further drive growth in these important businesses and the jobs they support.”
Quote attributable to LaunchVic chief executive Dr Kate Cornick
“The rapid growth we have seen in Victoria this past financial year highlights the strength and growing maturity of our growing startup and tech ecosystem and in particular, a maturation of the Fintech sector.”