Climate tech takes the funding lead as Aussie startups raise $5b
2023 is on track to be the second best on record for Australian startup funding, but is currently well behind the record set in 2021.
The Australian startup scene may feel strapped for cash, but at least it is flush with data. The most recent report from funding database Techboard, provided to Capital Brief ahead of publication, shows that the level of startup funding in Australia fell sharply last financial year, although it remains at historically high levels.
Total announced funding in the 2023 financial year fell 49% to $5.04 billion. That is still the second best year on record, well below the record high of $9.89 billion set in FY22 but ahead of the result for FY21 of $4.395 billion.
And while fintech has traditionally been the lead category for overall funding, climate tech has now claimed the leadership position for the first time.
According to Techboard's data, climate tech startups received $1.1 billion in funding for FY23, ahead of fintech, which recorded just above $1 billion in announced deals. The next strongest category was health and biotech with $874 million.
