Australian investment into Asian start-ups has surged over the past decade, totalling AUD23.8 billion from 2013 to 2023, according to a new paper from Asialink Business and the Tech Council of Australia.
Building the Australia-Asia Tech Corridor is the inaugural discussion paper in the Tech Connections Series, which aims to develop a holistic picture of the linkages between Australia and Asia’s tech ecosystems. The paper explores the vital connections between Australia’s and Asia’s tech ecosystems and is based on a unique data analysis of outbound Australian investment in Asian tech start-ups.
The value of Australia-linked investments in Asian startups grew 27-fold between 2016 and 2018, the paper found. However, it reached its lowest point since 2016 in 2023, dropping more than 86% from 2022 to reach just AUD779 million. This mirrored a decline in venture funding from all investors.
“While the amount invested year-to-year has fluctuated in line with global conditions, we expect this relationship is here to stay and shows great potential for mutually beneficial growth,” the paper reads.
Other key findings of the paper include:
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Australian investors have led 40% of the transactions they have engaged in over the last decade;
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77% of Australian investments target seed and early-stage companies in Asia, particularly in the consumer and B2C sectors;
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Over half the value of all Australia-linked investments is directed towards Singapore, making it the premier destination for Australian tech investments in Asia; and
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The value of Indian capital raisings involving an Australian investor grew by 95% over the decade (2013-2023), and the number of transactions doubled between 2015 and 2023.
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The paper proposes establishing a regional dialogue, collaboratively led by both industry and policymakers, to deepen the Australia-Asia tech corridor. The exchange of capital, people and technology would create the conditions for two-way investment to grow and benefit both the Australian and Asian tech ecosystems.
“Success in Asia requires more than just capital,” said AsiaLink Business CEO Leigh Howard. “It demands a deep understanding of local dynamics and the ability to build strong, in-market relationships. Developing Asia-specific capabilities is essential for Australian investors looking to unlock new opportunities in Asia’s tech markets.”
“The mutually beneficial exchange of expertise, via talent, investment or technology, is the foundation of strong economic relationships between Australia and Asia,” said Tech Council of Australia CEO Damian Kassabgi. “These connections can support both regions to grow companies globally.”
The Tech Connections Series is available on the Tech Council of Australia and Asialink Business websites.
