Startup investment landscape snapshot for 2019

If you're still in the early stages of your startup or looking to finally launch your startup, 2019 might be the year to cast your net wider for investment capital to start or grow your company.

2018 was a big year for startups around the world. According to KPMG, over US$899 million was raised in Australia alone in 2018.

At Transition Level Investments, we reviewed more than 500 companies and invested in 7 Australian startups. These companies were concentrated across cyber security, voice, machine learning, platform plays and fintech.

Towards the end of 2018, volatile equity markets across the world shook the confidence of even the most seasoned venture investors, including many we co-invest with in Australia.

Shaky equity markets are bad for private markets for a few reasons:

1. Conviction: Declining equity markets can have a negative psychological effect on investors. Plunging public markets cause early stage investors to think twice when placing big bets on startups.

2. Acquisition appetite: Volatile equity markets may limit the appetite and ability of listed companies to strategically acquire fast growing startups. This dampens the potential for investment returns for early stage investors and their ability to subsequently raise further funds to invest into other startups. Read more

An Vo - Business News Australia - 25 Jan 2019