Australian venture capital hits record growth as early‑stage funding dries up

Australia’s venture‑capital market is projected to reach US$4.3 billion in 2025, a 48 % increase from the previous year and the strongest annual total since 2022. The sector has outpaced peers in the United States, Europe and China, delivering a pooled return of 20.8 % and producing the highest decacorn‑per‑billion‑dollar ratio worldwide. However, seed and pre‑seed investment is falling; only 18 funds are backing early‑stage Australian startups compared with more than 500 in Europe and nearly 600 in the US. International investors now supply 41 % of capital raised in deals under US$15 million, double the share seen in the US and Europe.

In the same period three Australian startups announced sizable raises. Health‑tech firm Everlab closed a US$65 million Series A led by Airtree Ventures, expanding its preventative‑care platform. New Energy Transport secured US$5 million to accelerate deployment of heavy‑duty electric trucks in New South Wales. Queensland fintech Flyweel raised US$2.41 million pre‑seed to build a finance layer for ad‑spend, with its first product launch slated for the United States.