Melbourne and Brisbane are making their mark in the global startup ecosystem, with Melbourne moving up the ranks and Brisbane being recognized as an emerging ecosystem. While Sydney still holds the top spot in Oceania, Melbourne’s continued growth has seen it rise to number 32 in the world, with over 3,400 startups in the city. The Victorian state budget has allocated $40 million to support local startups, showing a commitment to driving growth in the startup sector.
Brisbane, although not in the top 40 ecosystems ranking, has been listed as an emerging ecosystem for the first time. This recognition is a testament to the city’s efforts in fostering innovation and creating a conducive environment for startups to thrive. Adelaide has also made it to the list of the top 100 emerging ecosystems, highlighting its strengths in sectors such as renewable energy, health, agriculture, defense, and space.
On a global scale, Silicon Valley, New York City, and London continue to hold the top three spots in the startup ecosystem rankings. Tel Aviv in Israel has risen to tie with Los Angeles at number 4, while Tokyo has entered the top 10 for the first time. The report also notes a decline in the rankings of the top Chinese ecosystems, with Beijing and Shanghai dropping a few places. However, Shenzhen has shown significant growth, moving up seven spots to rank 28.
The report authors suggest that while the tech industry may not see the same level of funding as in 2021, there are signs of stabilization and improvement post-COVID. The acquisition of generative artificial intelligence startups by large public companies and improving investor sentiment indicate a positive trend. However, there is also a growing concentration in the GenAI sector, with US-based startups increasing their share of all VC deals. The extent of this concentration will be a key question for the startup world in the coming years.