Australian Startup Statistics 2024

In 2024, Australian startups are navigating a dynamic landscape, and their financial and business confidence is a key indicator of the sector's future prospects.

At Airwallex, we’re deeply invested in the success of Aussie startups (as a former startup ourselves!). It’s a big reason why our Business Account is designed to be adopted and scaled at speed. It’s also a driver behind our landmark 2024 research, the Australian Startup Financial Confidence Report. From this, we’ve pulled out the top 23 statistics that tell the story of the Aussie startup ecosystem. 

1. 92% of Australian business founders have concerns about their business' financial operations.

Nothing plays on a founder's mind quite like business finances. Generally, the most obvious problem is that there’s not enough capital, but just as important is how to manage it when it does fall into your lap. A complex and demanding part of growing a business, there’s a scope of considerations when it comes to financial operations.

The biggest concerns that founders shared involved maintaining compliance; with their top worry being managing local regulations, closely followed by managing international regulations, and employee expenses and budgets. 

2. 44% of founders don’t believe their bank/financial provider has products designed for their needs

Startup founders may be creating the future of the Aussie business landscape, but they’re still generally considered a minority customer base when it comes to banking clientele. 

It makes sense, then, that founders are frustrated that their bank or financial provider doesn’t have products designed specifically for their needs. This was the most common complaint from founders, followed by high fees (37%) and a lack of or poor understanding of startup requirements (37%). 

Additionally, 35% of founders cited a lack of or inadequate flexibility in accessing funds, while 34% were dissatisfied with unattractive rates and returns. Poor customer support (33%) further compounded these issues, highlighting the need for more startup-friendly financial solutions. 

These findings underscore the importance of an offering that’s digital-first, intuitive for global operations, and can rapidly scale with founder needs. Some founders have identified Airwallex’s Business Account as a possible solution.

3. 87% of founders identified a concern about their bank or financial provider

Interestingly, the younger a business is, the more likely the founder was to have encountered significant pain points with their bank or provider. According to our data, 89% of founders of businesses established in the past five years have experienced these issues, compared to 82% of founders of older, more established businesses. 

This discrepancy suggests that newer businesses require more flexible and agile financial services to keep up with their rapid growth and evolving needs.

4. 79% of founders surveyed are using business bank accounts with traditional banks

Founders are often the first to embrace new technologies to support their flexible needs, but there may be a gap in thinking when it comes to financial services.

Despite the widespread uptake of things like task management software, eCommerce tools, and accounting programs, 79% of founders are still looking to classic banking solutions for their financial management. 

5. 44% of founders don’t believe their bank/financial provider has products designed for their needs

Startups today couldn’t look more different from legacy businesses when it comes to their financial needs. 

Younger companies often face unique challenges, such as scaling quickly, managing international transactions, and integrating with modern tools – so it’s not surprising to hear that almost half are feeling frustrated that many financial products are still designed for more traditional businesses. 

6. 37% of founders reported high fees as one of their biggest frustrations with their business bank/provider

When you’re trying to accelerate your startup, every dollar is precious. Money spent on fees is money that can't be used for product development, marketing, or hiring. High fees can also hinder cash flow, making it difficult to manage day-to-day operations and respond to unexpected expenses.

Additionally, many startups operate globally (or have ambitions to!), and international transaction fees can quickly add up, eating into profit margins. At Airwallex, we believe that international operations should be accessible to every business, no matter the size. Our advanced global transfer method network means that businesses get the fastest and most cost-effective solution when it comes to international money transfers.

7. 37% said that having the flexibility to access funds was important to them

Flexibility was another common theme throughout our research. Today’s market can be a rollercoaster, so it’s unsurprising that startups’ needs can turn on a dime. 

Flexible banking solutions enable founders to manage cash flow more effectively, access various financial tools as needed, and scale their operations without being constrained by rigid, services. This agility helps them stay competitive, make timely decisions, and seize new opportunities.

8. 89% of business founders say they trust their business bank or provider 

While many startups take issue with their bank or provider, they do ultimately trust them with their funds. 

Australian banks and financial services providers are heavily regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). These regulatory bodies ensure that providers maintain high standards of security and compliance, which may contribute to an overall feeling of trust.

9. 34% of founders said that transparency around pricing was one of their most important features of financial products

We’ve already covered why cost efficiency is key for founders, so the need for transparency around services pricing compliments this frugal ethos. 

Transparent pricing helps founders accurately budget and plan their financial strategies. Knowing exactly what they will pay for services allows them to manage cash flow more effectively and avoid unexpected costs.

10. 27% value a dedicated customer support team

Digital help centres are becoming more advanced all the time, but there will always be a place for one-on-one customer support, especially in financial services. 

Financial issues can arise at any time, especially during rounds of international investment, and having a dedicated support team means that founders can get help when they need it. This can be crucial for resolving problems quickly and maintaining business operations.

11. 35% of Australian business founders say the management of employee expenses are a concern

Employee expenses can quickly snowball into a major concern for founders if they aren’t managed properly. Although internal spending might seem simple initially – an expense report there, a spreadsheet here – decentralisation and a lack of processes around team spending can quickly lead to blowout costs. 

Efficient expense management systems can streamline processes, reduce administrative burdens, and provide real-time insights into spending, enabling better financial decisions. Moreover, fair and clear expense policies can boost employee morale and trust, which is crucial for a tight-knit startup team.

12. 35% of founders say that the cost of living pressures for their customer base was their biggest growth challenge

The cost of living crisis has been a dominant thread through the public consciousness in 2024. With the Consumer Price Index (CPI) rising by 4.5%, one of the most notable inflationary increases in recent history, discretionary spending has been sluggish for most of the year. 

When consumers feel the pinch, founders feel the pinch. The slow activity in their customer base was the biggest barrier to growth for startups this year.

13. 31% of founders said that financial operations are also a major growth challenge

Financial operations also posed a problem for founders. Managing finances effectively is crucial for the sustainability and expansion of any business, but founders often struggle with limited resources. 

The democratisation of advanced finance tech tools will hopefully go some way in levelling the playing field for smaller businesses. What was once only available to large enterprises is trickling down to startups with big ambitions. 

14. 27% said attracting and retaining top talent was the biggest growth challenge

Being a smaller market at the bottom of the world has meant that the talent supply in Australia has often been tight, especially for not-yet-established businesses. 

The stats can be alarming. According to the Human Resources Management Institute, the average time to hire in Australia can be up to 40 days, and the cost of onboarding can be around $5500 for each new team member. For cash-strapped startups in a competitive market, finding and keeping the right people can be a major challenge. 

15. 78% of founders said they are likely to expand their business globally in the next 12 months

If Aussie founders are looking for true meteoric rise, the simple truth is that they have to look beyond an ANZ customer base. Australians provide a great, but limited, market – and the chance of hitting unicorn status without tapping customer bases abroad is slim to none. It should be no surprise that the majority of founders are interested in going global, and soon. 

78% expect to expand operations globally within the next 12 months, with many already doing so and looking to branch further afield. Even if international expansion isn’t immediately on the agenda, raising capital from overseas 78% investors is likely to be, with 74% believing this will occur over the next year.

16. Older founders have more concerns around going global

Out of the founder cohort surveyed, there was a clear difference in the global mindset between older and younger founders – with older founders showing particular concern for the financial operations side of global expansion. 

More than half (52%) were concerned about establishing financial operations in a new market, compared to 39% of Gen Z and Millennial founders. Meanwhile, 40% of them were concerned 
 about cross-border payment solutions, compared with 30% of younger founders.

It’s a common misconception that setting up international accounts and payment systems is difficult or takes some kind of particular tech savvy. Many fintech tools, like Airwallex, are designed for ease of use and implementation; opening businesses to international operations with minimal friction. 

17. 60% of founders use a multi-currency account or money transfer service to manage FX risks from overseas investment

International funding will continue to be a key source of funds for Aussie startups, so it’s encouraging to see there is uptake of multi-currency accounts and transfer services when it comes to managing FX risks. 

60% of those receiving international funds would use a multi-currency account or money transfer service like Airwallex, while 58% would rely on investor conversion upon disbursement of funds (some opting to do both). 47% of the same group would lock-in exchange rates to leverage positive rate positions, and only 8% wouldn’t manage FX risk at all. 

Strategic international money transfer using next-generation tools is always an option, with features like FX lock, global accounts and batch transfers all helping with seamless and cost-effective money movement.

18. 1 in 3 founders (33%) are supported by the ‘Bank of Mum and Dad'

Over the last couple of decades, ‘The Bank of Mum and Dad’ has exploded as a concept, and we have some very real world data to see its influence in property sales. Towards the end of 2023, Jarden economists found that 15% of mortgage borrowers turn to their parents to help them get on the ladder; funnelling more than $2.7 billion into the market.

But it’s not just property ownership that families are supporting. Our research found that parents are also bankrolling businesses, with 33% of founders saying that they had looked to parents and family members for financial support. This suggests the Bank of Mum and Dad is even more influential in the business sphere than it is in the property market.

19. 29% of startups are funded by government grants

Government grants are another common source of funding, with 29% of founders leveraging these.

Interestingly, founders running a business with a yearly turnover of $50 million or more are the most likely to have received or be receiving financial support from the government; with 44% using government support compared to only 21% of businesses with a less than $1 million turnover.

20. The most popular source of funding are loans and similar services from business banking providers

Despite the rise of the bank of Mum and Dad and government grants, a good old business banking loan and similar services still reigns supreme when it comes to funding, with 52% of founders relying on this source. 

21. Only 11% of Aussie founders are ‘bootstrapping’, with significantly more women following this path

‘Bootstrapping’ refers to the process of starting and growing a business with minimal external financial assistance. Instead of relying on venture capital, angel investors, or loans, bootstrapped startups use personal funds, revenue from early sales, and cost-saving measures to finance their operations and growth. 

This can be a more challenging route, as it can require more personal investment and consequently, risk. It can also be a necessity, if founders struggle to source funding. 

Only 11% 
of our survey respondents are pursuing this model, making it the least popular option by a significant margin – although women were more likely to be taking this route. 
21% of women surveyed said they were ‘bootstrapping’ compared to 7% of men.

22. Almost all founders (98%) are seeking financial advice for their business

We don’t think that it’s unreasonable to say that most founders get into the biz because they have a big, game-changing idea – not because they’re financial experts.

It makes sense then, that essentially all founders (98%) are seeking financial advice to drive their business forwards. The most common source of financial advice was from experts, with 41% seeking an external consultant to guide them. 

23. 40% are turning to their networks for advice

Surprisingly, the second most turned-to source of financial advice were professional networks. This suggests that a competitive startup environment in Australia is out, making way for knowledge sharing and community.

An anonymous surveyed founder elaborated about their experience; “What excites me most about being an Australian startup is the vibrant and supportive entrepreneurial ecosystem that fosters innovation and growth. The collaborative community of fellow startups, incubators, and investors provides invaluable resources and networking opportunities, driving us to continuously improve and push boundaries.”

Keen to expand your Aussie startup knowledge? 

We know a great place to start! Download our Australian Startup Financial Confidence Report to find out more about all things Aussie startups and finance. Unlock illuminating statistics, and read exclusive commentary from experts from across the startup ecosystem. 

And if you’re a founder looking to expand your community and unlock exclusive startup-only benefits, join our free Airwallex for Startups community. You’ll access industry-first research, unique networking, incredible offers on a range of tools and services and grant opportunities. It’s Australia’s latest and greatest community supporting founders just like you. 

Disclaimer: This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) read the Product Disclosure Statement (PDS) for the Direct Services available here.