Australia’s leading VCs have defiantly rejected suggestions they aren't backing later-stage companies with the same risk appetite of previous years, despite data showing that such deals continue to lag behind 2023 levels.
The latest Cut Through Venture quarterly report, released Monday, shows a market recovery concentrated at the extremes of the funding spectrum, with the flow of early-stage funding returning and six mega-deals (over $100 million) closed this quarter.
However, later-stage growth companies, reflected by deals between $5 million and $20 million, have remained relatively stable since the market pullback in late 2022, and deals in the $20-50 million range continue to lag behind 2023 levels.
Australia’s largest VC funds including Square Peg, Blackbird and Airtree told Capital Brief they are continuing to invest in growth-stage companies and have signalled a potential resurgence in Series B funding rounds — and beyond — in the latter half of the year.
