QLD startup funding hits post-market correction high

The Queensland startup sector completed a record number of deals in FY25 with capital deployed reaching its highest level since the post-COVID market correction in 2022, led in particular by enterprise software and climate tech companies.

The Queensland Venture Capital Report released today by Cut Through Venture and the Queensland Investment Corporation (QIC) shows startups in the Sunshine State raised $417 million across 109 deals for the financial year.

Queensland startups also boast the distinction of having the highest share of capital directed to startups with at least one woman founder at 22 per cent. Examples including a $20 million Series C for Gold Coast-based fitness technology group Evolt and a $14.5 million investment for Brisbane-based environmental engineering company The Water and Carbon Group.

SafetyCulture - which is now headquartered in Sydney but was founded in Townsville - notched Queensland's highest raise at $75 million, followed by health-tech company VALD and user experience (UX) services and insights group Askable.

"Queensland’s venture market is moving from emerging to established. Founders can now raise meaningful cheques without leaving the State, and repeat entrepreneurs are choosing Brisbane as their HQ," says Cut Through Venture founder Chris Gillings.

"There is unprecedented energy in the local ecosystem. We’ve completed three Queensland-based investments out of our current fund and see a deep bench of capital-efficient, globally minded founders coming through," adds Five V Capital managing director Ed Bigazzi.

The report authors found that rounds under $5 million posted the largest uplift as a broader pool of early-stage investors entered the market, while median seed and Series A cheque sizes rose above national averages, signalling a strong appetite to back early-growth ventures.

"While the progress is impressive, the green shoots we see suggest the best is still ahead," says QIC Private Equity head of Asia Pacific, Crystal Russell.

"Queensland is the best place in Australia to build a tech company today. Dedicated early-stage capital, a tight-knit founder community and strong research partnerships make it a genuine launch-pad for innovation," adds Tidal Ventures principal Fee Barry. 

ProcurePro co-founder and CEO Alastair Blenkin says Queensland’s ecosystem gives his company the talent, support and grit to win on the world stage.

"You don’t have to be in Sydney, Melbourne or Silicon Valley to build something extraordinary," says Blenkin, who last year won the Technology category at the Brisbane Young Entrepreneur Awards.

Blenkin is one of many founders in the ecosystem to have gained recognition within the broader Australian Young Entrepreneur Awards initiative, which traces its origins over more than a decade to the Gold Coast and Brisbane before it went national in 2018.

Queensland is still underfunded relative to its potential however. Within the aforementioned initiative, Queensland companies have a tendency to be more profitable on average than their southern counterparts, reflecting a greater sense of self-reliance and less access to the capital necessary for rapid scaling.

TEN13 partner Sophie Robertson points to a marked acceleration over the past 12 months, claiming the Queensland Venture Capital Development Fund (QVCDF) has been a catalyst but "what we're seeing goes beyond just the matched funding".

"There are more VCs circling - some establishing permanent bases here, others visiting with increasing frequency," she says.

"There are more events and community interaction, not just in Brisbane but with notable presences on the Sunshine Coast and Gold Coast.

"Top-calibre founders are choosing to domicile themselves in Queensland, backed by a growing and passionate LP (limit partner) base keen to support the next category-defining company."

For those who are active in the region this optimism would come as no surprise. In late 2023 a report compiled by OnDeck revealed the Gold Coast had the highest number of founders in Australia per capita.

Top 20 raises for Queensland startups in FY25

1. SafetyCulture ($75 million)
2. VALD ($32 million)
3. Askable ($22 million)
4. Evolt ($20 million)
5. Sunshine Hydro ($20 million)
6. EatClub ($18 million)
7. Reshop ($17 million)
8. EcoJoule Energy ($15 million)
9. The Water and Carbon Group ($15 million)
10. FairSupply ($12 million)
11. Field Orthopaedics ($12 million)
12. Squizify ($10 million)
13. Securely Group ($9 million)
14. WearOptimo ($8 million)
15. Inform Ag ($7 million)
16. Earthodic ($6 million)
17. Zeligate ($6 million)
18. Attekus ($5 million)
19. Convergence Medical ($5 million)
20. Skyborne Technologies ($5 million)