The Ascendancy of Victoria's Start-Up Sphere: Insights from Allied Legal
The perspectives shared in this article are based on the recent piece "Victorian startups are going gangbusters – and that’s a big win for the local economy" by STARTUP DAILY, published on 25 August 2023.
Deloitte Access Economics’ August 2023 report raised auspicious tidings for the start-up milieu in Melbourne and Victoria broadly. Those closely monitoring these developments, including firms like Allied Legal, view this as a noteworthy sign of the rapidly growing sector.
Victoria's Growth Exceeds Forecasts
The study, entitled "Scaling up: Growing the economic opportunity for Victoria’s startup ecosystem" and initiated by the start-up body, LaunchVic, illuminates the extraordinary trajectory of the Victorian start-up landscape. Impressively, it has doubled its valuation from an already significant $50 billion in 2020 to an astonishing $91 billion at present. Achieving this milestone, despite the global pandemic, illustrates the resilience of Melbourne’s entrepreneurial zeal.
Start-Ups: The New Dynamo of Melbourne's Economy
Contrary to expectations that Victoria's first population dip in nearly three decades might impede economic progress, Melbourne’s start-ups have experienced the reverse. The local start-up workforce has surged by nearly 50% in two years, ascending from 37,000 in 2020 to 52,000 FTE positions in 2022.
As Dr. Kate Cornick, CEO of LaunchVic, accurately observes, start-ups are now a significant contributor to productivity growth and are crucial for the state’s fiscal health. She notes, “The fundamentals are set for robust ecosystem growth in Victoria, yet sustained investment is essential to maintain and accelerate this swift expansion."
This era is thrilling for start-up lawyers in Melbourne, such as Allied legal, heralding a surge in demand for legal consultancy and advisory services.
Global Comparisons and Future Prospects
Deloitte’s review benchmarks Victoria's rapidly growing start-up ecosystem against global titans such as Singapore. The findings? An optimistic forecast that a rise in start-up density and successful expansions could have a profound effect on the state’s productivity, employment, and wider economic landscape over the next two decades.
Victoria proudly hosts technology behemoths like Airwallex, CultureAmp, and Afterpay. These belong to a cadre of almost 20 firms, each with valuations exceeding $1 billion. With schemes like LaunchVic’s 30x30 mentorship program, the ambition is to nearly double this figure by 2030.
Should Victoria emulate Singapore’s start-up density by 2042, Deloitte predicts that the local economy could gain an additional value of $6.9 billion.
This time is riveting for those engaged in Victoria’s start-up sphere. The future has arrived, brimming with possibilities.
Allied Legal acknowledges the surge and potential within Victoria's and Australia's start-up sectors. As commercial lawyers specialising in start-ups, we are intimately aware of the legal complexities entrepreneur’s encounter. Our experienced team is committed to providing essential legal support and expertise to assist these innovative firms in tackling sector-specific hurdles, securing investments, and prospering within Australia’s start up scene.