Venture capital invested in Australian startups is booming

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Venture capital invested in Australian startups hit a near-record $230 million in the June quarter, according to the Venture Pulse report by KPMG.

Investment was up significantly on the $181 million for the same three months in 2016 and it was the largest quarter for Australian startups since 2014 when Campaign Monitor closed a $250 million round.

The number of deals, at 36, was up on the last quarter (25) when $90.66 million of VC investment was recorded. Corporate venture financing over the there months was more than $100 million.

“This quarter’s data shows that investment in Australian startups is growing significantly,” says Amanda Price, Head of KPMG Australia High Growth Ventures.

“Founders are seeing increasing interest from corporates, media and government in Australia and this reflects the fact that VC funds raised over AU$1 billion for the first time last year, almost double the $568 million raised in the 2015-16.

“With more capital available and deal flow up strongly on previous years, I expect investment to continue to be strong over the year”

Globally, venture capital deal value increased by 55.3% to $40.07 billion in the quarter.

The US led VC investment, accounting for $21.8 billion, followed by Asia with $12.7 billion and Europe $4.1 billion.