Australia and New Zealand is a long way from Silicon Valley, but the problems and conditions of their venture environments are probably similar in nature.
Megadeals are rarer now, early-stage funding is done, valuations are back on the ground, and investors are encouraging their portfolio companies to demonstrate a sustainable business with a clear path. of income. The difference is that the geographic isolation of Australia and New Zealand creates a sense of urgency, if not urgency, around raising funds and building a global product.
The Aussie and Kiwi startup ecosystems are newer and less established, and their markets are often smaller than their US, Asian and European counterparts. As such, startups here have a greater need to access not only international markets, but also foreign funds, especially if they operate in capital-intensive industries such as deep technology, and for later stage phases.
“For most Aussie and Kiwi businesses, their primary markets are often offshore,” Dan Krasnostein, partner at Square Peg Capital, told TechCrunch+. “Having investors on the cap table from these markets can help to grow and build local teams in those markets, or to find customers.”
Instead of being a weakness, startups from these countries have turned this set of circumstances into a strength. They know how to punch above their weight, and they know they need to build a global product from Day 1.