A NEW report has shown that online marketplace startups in Victoria deliver a $1.6 billion boost to the state economy.
EY, in collaboration with Victoria's starup ecosystem development agency LaunchVic, released its report on Wednesday called A Review of Melbourne's Digital Markeplaces which details the wealth that Melbourne's startup community contributes to the state.
In addition to providing a $1.6 billion boost to the economy, online marketplace startups currently employ 13,000 people and create 80,000 jobs across Victoria.
Of this $1.6 billion, the report found that $630 million was generated by online marketplaces while $950 million comes from the platforms' sellers.
According to the report, more than 190 digital marketplaces are currently located in Victoria. The e-startup sector is growing at 11 per cent per annum, which is far above the Victoria's current industry growth rate of three per cent.
LaunchVic CEO, Dr Kate Cornick, says it is encouraging to see these successful startups make such a huge impact to the state's economy and job growth.
"This is a strong endorsement of the entrepreneurial spirit and ability here in this state and more importantly demonstrates the value of having a vibrant startup ecosystem," says Cornick.
Victoria's reputation for bringing to life successful startups precedes it. Digital unicorns like SEEK, REA Group, and Car Sales were all founded in Victoria.
The next generation of digital startups emerging from Victoria is equally impressive, as companies including Redbubble, 99designs and Sidekicker all continue to make a major global splash.
The report also determined that startups are not just delivering a boost to the economy, but are helping Victorians achieve an estimated $135 million in savings.
EY and LaunchVic made a special mention of Envato, a marketplace which sells creative assets for web designers, developers, and entrepreneurs.
Ben Chan, chief commercial officer of Envato, says Victoria is the place to be when it comes to fostering successful online startups.
"It's an exciting time for online marketplaces based here in Victoria," says Chan.
"The saying 'a rising tide lifts all boats' is particularly applicable, as we've seen the local sector go from strength to strength as companies achieve success."
"We're pleased, if a little humbled that we've been able to play a positive role with this."
Envato's reach currently spans 8 million community members with customers in 197 countries, and it has generated around 40 million purchases to date.
Chan says the Melbourne startup landscape has been a real contributor to Envato's success.
"Being located in Victoria has big benefits," says Chan.
"We're part of a thriving and dynamic tech sector, one that is collaborative and growing quickly. Having our HQ in Melbourne has advantages too, especially when it comes to attracting and retaining top tech talent from around the world."
The startup sector is growing by 11 per cent per annum in Victoria, but certain sector segments are performing better than others.
'Transport' startups are the clear standout, growing 82 per cent per annum, followed by 'freelance services' growing 48 per cent per annum.
The breakdown for all sector growth is as follows:
- Transport - 82%
- Freelance Services - 48%
- Health - 17%
- Accommodation & Travel -14%
- Retail/e-commerce - 12%
- Food and Drinks - 7%
- Financial Services - 7%
- Education - 6%
- Art and Entertainment - 5%
- Professional Services - 4%
- Employment - 4%
- Property - 2%
- Technology Services - 2%
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support