Tuesday 23 June, 2026
New research released by LaunchVic today confirms Victoria’s startup sector is emerging as a powerful driver of economic growth, investment and productivity.
The 2025 Victorian Startup Ecosystem Mapping Report, produced in partnership with Dandolo Partners, has tracked the size, growth and performance of Victoria’s startup ecosystem over the past decade.
The report found Melbourne ranked third among cities for its startup creation rate (124 per cent), ahead of Sydney, Singapore and Berlin.
More than 68,000 people now work in Victorian startups, up 86 per cent since 2020.
Investment has also accelerated. Over the past decade, capital raised by Victorian startups has increased by more than 1,000 per cent, from $214.9 million to $2.4 billion in 2025. Average deal size has nearly tripled, increasing by 178 per cent from $4.5 million to $12.5 million.
LaunchVic Chair Leigh Jasper said startups were becoming an increasingly important part of Victoria’s economy.
“Startups are no longer a niche part of the economy. Victorian startups are creating jobs, attracting investment, paying higher wages and selling into global markets,” Mr Jasper said.
“These are the foundations of a stronger, more self-sustaining economy.”
Minister for Economic Growth and Jobs Steve Dimopoulos said sustained government investment in Victoria’s startup ecosystem is paying significant dividends and this momentum is set to continue.
“Building on this success, we are making it easier than ever for great Victorian ideas to become world-class products and services, through Innovation Victoria cement Victoria as the best place in Australia to start and grow a business.”
Employment
Employment in the sector is growing much faster than the broader economy, with average annual headcount growth of 12.9 per cent between 2015 and 2025, compared with 2.5 per cent across Victoria.
Founders and diversity
Founders are typically experienced, with an average of 13 years’ experience before starting a company. Most founders remain with their first venture, with only 18 per cent returning to traditional employment.
The share of startups with at least one woman founder has grown from 28 per cent in 2018 to 45 per cent in 2025.
Thirty-nine per cent of startups have at least one founder from a culturally and linguistically diverse background.
Global reach and technology
Victorian startups are more likely to sell overseas than other small businesses. Forty-four per cent of startups export, compared with 8 per cent of SMEs.
Software and AI are central to the sector. Seventy-one per cent of startups are built on software or AI-enabled software, and 44 per cent use AI broadly across their operations, compared with around 5 per cent of Australian SMEs.
Productivity
The report finds that high-performing startups contribute to productivity by growing quickly and scaling efficiently. The most productive firms enter the economy above industry benchmarks and, within five years, reach productivity levels around 45 per cent higher than the industry average.
For media enquiries, please contact holly.clark@launchvic.org.
