Australia’s pattern-matching mindset leaves money on the table
While global investors back sectors like deep tech and women’s health, Australia’s narrow focus risks missing the next wave of high-impact, high-return opportunities.
While Australian investors debate the merits of another fintech or marketing automation platform and bet on another pattern-matched founder, international competitors are building the infrastructure for climate solutions, space technology and health.
The biggest returns and most impact now lie in sectors long dismissed as 'too hard', like deep tech and women's health.
The numbers tell the story. Deep tech exits in Europe jumped from $8.3 billion in 2022 to $59.9 billion in 2023, according to Dealroom. McKinsey found deep tech funds delivered a net internal rate of return (IRR) of 16% since 2003, 60% higher than traditional tech funds. Yet Australia's pattern-matching approach risks missing this transition entirely.
Australia is home to world-class science, pioneering researchers and globally relevant IP. Much of that innovation fails to cross the commercialisation chasm, because capital, risk appetite and investor support systems haven't evolved to match.
