Melbourne’s startup ecosystem has exploded, growing 23 times larger since 2016 and creating thousands of jobs. The impressive growth has positioned Melbourne to compete with international tech hubs like Tel Aviv and Stockholm.
LaunchVic, Victoria’s startup agency, revealed the state now hosts more than 3,500 startups – technology-driven companies using innovative business models to grow quickly and service global markets. The enterprise value of Victoria’s entire startup ecosystem, including scaleups and unicorns, has reached $130 billion, up from just $5 billion in 2016.
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Melbourne’s explosive growth
The report highlights that Melbourne’s early-stage Ecosystem Value alone has increased to $38.4 billion, up from $23.6 billion in 2022. This phenomenal growth outpaces key global hubs including Singapore, Sydney, Tel Aviv, Stockholm, Amsterdam and Berlin.
Job creation has been equally impressive, with the sector generating more than 67,280 jobs globally – a 12.5 per cent increase since 2020. Investment is also thriving with $841 million poured into Victorian startups over the past year, 7.5 times higher than in 2014 and outpacing the global average.
The unicorn factory
A “unicorn” in the startup world refers to a privately-held startup company that has reached a valuation of $1 billion or more. These rare and highly sought-after companies have flourished in Victoria, with the state producing 18 so far including Seek, Linktree and MYOB among others:
- A Cloud Guru
- Aconex
- Airwallex
- Carsales
- Clinuvel
- Culture Amp
- Judo Capital (now Judo Bank)
- Linktree
- Mesoblast
- Message Media
- MYOB
- PEXA
- PolyNovo
- REA Group
- Redbubble
- SEEK
- Telix Pharmaceuticals
- Zeller
These success stories span diverse sectors, with HealthTech and B2B/SaaS enterprise software emerging as Victoria’s strongest sub-sectors.
“The report highlights the incredible growth of Victoria’s startup ecosystem since 2016,” LaunchVic CEO Kate Cornick said. “If we continue this trajectory for the next five years, we will be on par with some of the world’s leading startup hubs.”
Melbourne’s flagship startup programs
Victorian government initiative LaunchVic has directly supported nearly one-third of Victorian startups through funded programs. The government’s Economic Growth Statement outlines plans to turbocharge international investment and drive highly skilled local jobs.
LaunchVic operates several flagship programs including 30X30, an executive education program for leaders at Victoria’s top scaleups, and CivVic Labs, which connects startups with the public sector to solve real-world challenges. The agency also provides free mentoring sessions with industry experts through Office Hours.
For aspiring founders wondering how to break into this booming ecosystem, LaunchVic’s Programs Directory connects entrepreneurs to a wide variety of funded activities, including accelerators, incubators, workshops and events.
For more information, head here.
