The startup ecosystem in Australia and New Zealand (ANZ) has been rapidly evolving. In December, the funding and investment deals hit $1.3 billion, marking December as the fourth ‘unicorn month’ of 2021. With deals in Q4 edged above $3.3 billion, ANZ had the second-biggest quarter of startup funding. 

The majority of the local funding came in the last months of the year. In the first quarter, 2021 saw $1.5 billion invested and in the second quarter that increased to $1.8 billion.

In the next quarter, it further doubled, with $3.6 billion invested. In September, more than $1 billion was announced in Aussie startups in one eight-day period alone. Despite the pandemic and harsh lockdowns, venture and early-stage investment in ANZ could be seen reaching record highs.

Some of the large deals in the last months of the year include SimPRO’s $487 million raise and Rokt’s $458 million Series E. Canva’s $273 million raise, Go1’s unicorn-making $272 million Series D, and Octopus Deploy’s $223 million round, were some of the other notable fundings from 2021. 

The year was also good for the HR and work tech startups. Employment Hero secured $140 million AUD (about $103 million USD) in funding. Culture Amp, an Australia-based employee analytics platform, raised $100 million. 

As more and more organisations adopt digital ways of working and doing business, the startup ecosystem in the two countries is poised for more growth.