A fortnight ago a staggering 870 industry leaders packed into Centrepiece at Melbourne Park for an annual gala hosted by LaunchVic, the State Government’s startup agency.
With stakeholders from across industry, investment, university and ecosystem the room was a buzz with the sound of deals being done and of problems being solved.
And it couldn’t have come at a better time.
As debate rages over the future of the city’s innovation economy, and rightly so, the evening was a stark reminder of why Melbourne is one of the best cities in the world to live. Although far from perfect, it also still a great place to build and grow a business.
Here are three things that I love about ‘starting up’ in Melbourne:
1. The role of government in enabling our ecosystem
Government funding for startups is akin to taxes. Find me someone who is happy with either and I’ll find you a liar.
There could always be more funding, though in a country where startups and innovation is often a footnote in government policy, I propose that Melbourne and Victoria are leading the way.
In my opinion, our Government’s role in innovation is to act as an enabler, not an initiator.
The work that the aforementioned LaunchVic is doing is a great example of this:
- By seeding 16 Venture Capital funds to set up in Melbourne to invest into startups (including seven new funds awarded $300k each just just last month).
- By actively investing in 42 women-led startups through its $10 million sidecar Alice Anderson Fund to close the appalling gap that exists for women founder funding.
- With their own targeted programs including 30×30, Basecamp and CivVic Labs that seek to enable and grow Startups from idea to scaleup stage
Then there’s Breakthrough Victoria, the government’s venture capital fund, initially $2b over 10 years (now reported as $1.68b over 15 years). Despite its teething problems, which are well publicised, they’ve still invested in over 30 startups and the seeded various incubation and acceleration programs.
Money which I’d rather have in the funding ecosystem than not at all. Especially given that seed funding, particularly in areas like DeepTech – where BV look to invest, is becoming increasingly harder to come by in this economic climate.
As for the City of Melbourne and the state’s Trade and Investment departments, their programs to connect our city with global markets, such as China and India which I’ve recently participated in, are integral to enabling how we connect overseas.
That Melbourne Government institutions are doing the right things to enable innovation is an opinion often shared by the international counterparts I work with regularly.
2. That Melbourne’s innovation ecosystem doesn’t have one singular home
I get asked by a lot of out-of-towners, “What’s the centre of innovation in Melbourne?” Sydney has Tech Central, Brisbane the Precinct and Adelaide Lot 14. Where is Melbournes’?
The answer is we don’t have one and that’s our superpower.
Dickie Currer
Melbourne’s startup ecosystem reflects the culture of the city. It’s transient. It’s community-focussed. It’s open and inclusive.
It’s why we have some of the leading digital communities in the country.
It’s why we have the most active startup events scene, because we don’t have that one third space, but many.
It’s why our government can invest in programs and initiatives that enable innovation, as less money is spent on physical infrastructure.
Whether it’s the emerging Tech Hub of Cremorne, Carlton’s University Quarter or our creative capital Collingwood, Melbourne’s innovation isn’t defined by one place by many.
And In a world where our ways of working are adapting to be more remote and less stationery, why would we want to be so binary?
3. That we’re growing in spite of a challenging economic environment
I sometimes catch myself thinking, “that the Melbourne Startup ecosystem isn’t what it used
to be…”
It’s true. It’s actually a lot better.
According to recent figures published by the aforementioned LaunchVic, Melbourne’s ‘early-stage ecosystem value’ has increased to $38.4 billion – up from $23.6 billion in 2022.
With a staggering 26x ecosystem growth since 2016.
The state is now home to more than 3,500 startups with over 63,90 new jobs created since 2004.
Yes the halcyon days of 2021 and 2022 where investment into startups in Australia peaked, and funding across the board was easier to come by, have passed (hopefully momentarily).
Though we’re still growing in spite of this. And that’s not just an Australia problem, but a macro global trend that has challenged even the most lucrative startup ecosystems worldwide.
We’re also now moving into our next stage of ecosystem maturity, where we’re no longer talking about startups generically, but have enough depth to be industry specific.
Playing host to some of the leading industry specific events across the region, such as the Digital Health Festival, Intersekt (FinTech) and the Climate Investor Forum is great evidence of this.
A city of growth
While there’s plenty of work still to be done, Melbourne is growing in the right direction and the work that is being done deserves to be acknowledged and celebrated.
As do the people that toil everyday to contribute to Melbourne’s economy, global and national brand identity and the impact that our little corner of the globe has in solving society’s problems.
They are, after all, what make this city and its innovation ecosystem very much alive and kicking – and makes me proud to say that I’m a Melburnian.
- Dickie Currer is the founder of the founder of Hype Man Media and the Victorian Startup Ecosystem Hero of the Year 2025 at the Governor of Startups Awards.
