Australia has returned to the world’s top 10 startup ecosystems for the first time in three years, with new data showing the local sector grew more than twice as fast as the global average in 2025.
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The latest StartupBlink Startup Ecosystem Report ranked Australia ninth globally, up three places from last year.
The report analyses data from more than 270,000 startups worldwide and ranks countries based on factors including investment activity, exits, unicorns and ecosystem infrastructure.
According to the latest findings, Australia’s startup ecosystem grew 22.9% over the past year, compared to a global average of 10.3%, and the nation ranked fifth globally for return on investment.
Australia also ranked sixth for overall attractiveness as a startup destination, measuring its ability to attract talent, investment and innovation.
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At a city level, Melbourne recorded the strongest growth among Australia’s major startup hubs, expanding 37.8% over the year compared to Sydney’s 11.7% growth.
However, Sydney retained its lead in the global city rankings, placing 30th internationally compared to Melbourne’s 34th position.
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Outside the two largest startup centres, several smaller ecosystems saw a large jump. The Gold Coast recorded growth of 45%, while Adelaide and Perth each grew by more than 31%.
E-commerce and retail remained Australia’s strongest startup sector, ranking fifth globally, followed by foodtech, agritech and manufacturing.
Despite the strong performance, StartupBlink said Australia could benefit from policies that more directly support entrepreneurship.
The Innovators Business Environment Index ranked Australia 17th globally, citing access to investment capital and credit, along with corporate and capital gains tax (CGT) settings, as areas for improvement.
While the index praised Australia’s governance standards and economic stability, it identified those as particular areas where we lagged behind competing startup ecosystems.
The report has landed as startup founders, investors and industry groups continue lobbying against the Albanese government’s proposed CGT reforms, warning the changes could make it harder to attract investment and retain talent.