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It seems you can’t dampen an Aussie entrepreneur’s spirit even in a challenging economic and fundraising environment, according to a survey conducted by the Angel Investment Network.
The world’s largest online angel investment platform has found that 80 per cent of startups polled in Australia are optimistic about their prospects in 2025 with 48 per cent “very optimistic” and 31 per cent “quite optimistic”.
This compares with just two thirds of respondents (68 per cent) in a separate survey of UK startups.
"The Australian network is one of our top performing sites with a host of exciting startups securing investment and scaling internationally,” says Mike Lebus, co-founder of Angel Investment Network.
“Our survey reveals a sunnier disposition, particularly in comparison to UK startups. However, it also reveals a gap between expectations and the reality of fundraising.
“A more complex global picture is leading to longer fundraising periods, cash shortages, and valuation reductions."
The survey reveals that the biggest challenge facing most founders, or about 71 per cent of the total, is the ability to secure investment. This is followed by hiring the right talent, at 35 per cent, product innovation and development (31 per cent) and work/life balance (24 per cent).
For those raising capital, the areas of focus for the forthcoming funding round include focusing on core product development (50 per cent), expanding internationally (41 per cent), growing the team by hiring the right talent (34 per cent), and scaling marketing with return on investment in mind (33 per cent).
Among the key findings of the survey is a “gap in fundraising knowledge” for startup founders with the research indicating a need for more support in understanding an increasingly complex early-stage funding process.
Just over half, or 55 per cent, of those surveyed say they have a good understanding of the process to follow when dealing with investors and structuring a deal. However, 24 per cent are neutral and almost a quarter, 24 per cent, have a “quite weak” understanding.
The survey also highlights a big gap in fundraising expectations versus the current reality of the process against the backdrop of more challenging market conditions.
Almost half of respondents say it took longer than they thought, while 33 per cent say it was on track and just 18 per cent say it was quicker than they thought.
Critically, less than half (49 per cent) say the funds lasted as long as expected while 41 per cent say they ran out sooner. Just 10 per cent say the funds lasted longer than expected.
More than six in 10 respondents have seen the funds run out in less than a year, while 20 per cent say it was gone in up to six months. Only 15 per cent say the funds had lasted more than two years.
Among those who had successfully raised funding, profitability has been the top factor that led investors to back them, accounting for 30 per cent of respondents, followed by scalability (26 per cent), the team (14 per cent) and revenues (8 per cent).
“It is vital that startups have a good understanding of a process ahead of them,” says Lebus.
“Over the next few months, we will look to address this knowledge gap, with advice and guidance from investors and startups who have raised successfully.”
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