How Australian Startups Can Access Asian Venture Capital
Synopsis
Asian venture capital offers Australian startups access to a much larger pool of capital, but each market requires a different approach. China, India, Japan and Singapore have distinct investor priorities, regulations and commercial opportunities. This guide examines funding trends, government-backed market entry programs, R&D support and practical steps Australian founders can take before approaching Asian investors.
Australia is on track to raise more capital for startups, but there's a bigger opportunity elsewhere in the world.
Australian startups raised a total A$1.7 billion in 64 venture rounds during the second quarter of 2026, bringing the fundings for the first half of the year to approximately A$3.5 billion. However, there were fewer deals as compared to the previous quarter, with smaller deals dropping off significantly.
The numbers reveal that investors are still making big investments, albeit on a more selective basis in the market.
Asia has a bigger deal flow, with a sum of $50.8 billion allocated to 2,676 deals in Q2 2026, of which $35.1 billion in China, $4.1 billion in India and $1.2 billion in Japan.
For Australian founders, it's not about thinking of Asia as a single funding market. A more beneficial way is to determine where the company's sector, technology and growth strategies fit into the Asian markets of individual investors, customers and strategic partners.
The funding opportunity is already moving east
Instead of a widespread acceleration in startup funding, the recent pick-up in Asia is being fuelled by a focus on big technology investments.
AI continues to lead the way: Investors are ploughing money into large language models, AI infrastructure, robotics and industry-specific technologies. Several large transactions pushed the total number of deals in the region higher, with China comprising a large portion of the total.
This opens up a market for Australia's companies to have technology that can cross other markets. Australian startups may have a better chance of resonating with Asian investors than with a more generic overseas fundraising process in the field of AI infrastructure, robotics, fintech, climate technology and in specialised enterprise software.
Venture capital activity in selected Asian markets, Q2 2026
| Market | Q2 2026 VC investment |
| China | US$35.1B |
| India | US$4.1B |
| Japan | US$1.2B |
| Australia | US$1.2B |
| Asia total | US$50.8B |
Source: KPMG, Q2 2026 data.
The comparison is helpful but not to be interpreted as a ranking of the top markets for Australian startups. China, for instance, has a far greater volume of funding, but a more complicated
Australia can be the starting point, not the entire market
Australia's startup funding market shows few signs of slowdown with over $1.7 billion invested in Australian businesses in the last quarter alone, and on track to over A$3.5 billion in the first half of 2026. But the number of deals that were done for under A$5 million was at its lowest level and funding was concentrated in fewer deals.
That focus makes it more and more important that international investors are involved in larger rounds of companies.
There seems to be signs that overseas institutions are becoming more at ease with Australian VC. Blackbird Ventures closed its A$1.05 billion fund, which attracted international investors such as Morgan Stanley Investment Management, Schroders and Adams Street Partners as well as Australian institutional investors.
Founders are interested in this because that doesn't start with going out to a foreign VC. Another way for overseas institutions to invest is by investing in local venture funds first.Local startups can also attract global capital by investing through local venture funds.
Australia's 2026 startup funding picture
| Indicator | Latest 2026 figure |
| Q2 startup funding | A$1.7B |
| Q2 venture rounds | 64 |
| Q2 accelerator rounds | 5 |
| H1 startup funding | ~A$3.5B |
| Change in deal count from Q1 | -21% |
Source: Cut Through Venture, Q2 2026.
India, China and Japan need different pitches
The most critical choice is where to start searching.
In terms of the volume of VC funding, China is currently the biggest VC market in Asia. It has also recorded its highest investment in the past 18 quarters thanks to significant funding rounds and a new uptick in investment in areas such as AI.
If it's an Australian AI, robotics or advanced tech company, then Chinese investors are the ones to look into. However, founders must consider the regulations they can expect to come across, data regulations, ownership and restrictions on sensitive technologies before proceeding with a deal.
India is a good one, a smaller pot for funding than China, but with the market size and technology ecosystem that Australian businesses targeting a wider section of the market can exploit. Owners of Australian businesses must be able to show demand, pricing assumptions and a realistic path to distribution in Australia for their ideas to attract Indian investors.
Japan's value lies where a start-up has a need for industrial relationships or corporate partnerships as well as financial investment. It's just as crucial for deep tech, manufacturing, robotics, and enterprise tech firms to find a strategic corporate investor as it is to find a conventional VC.
For Australian start-ups Singapore remains a perfect platform for exploring the Southeast Asian market rather than a large enough market to capture.
Where different Australian startups may look
| Startup type | Asian markets worth investigating |
| AI and AI infrastructure | China, India, Singapore |
| Robotics and advanced technology | China, Japan, Singapore |
| Fintech | India, Singapore, Southeast Asia |
| Climate and energy technology | Singapore, Indonesia, Vietnam, Japan |
| Enterprise software | India, Singapore, Japan |
| Deep tech | Japan, Singapore, China |
While these are some points to begin and not fixed classifications, ideally one should focus on a target market where there’s a business case for the startup.
Government-backed programs can provide the first introduction
Australian founders do not need to create each Asian relationship from scratch.
Austrade's Landing Pads program is intended for technology businesses ready to go to export and offers market entry assistance, local networks and connections with customers, partners and international funding opportunities. The current Asian sites of the program are Indonesia, Singapore and Vietnam.
Austrade conducted Landing Pad programs in Singapore, Thailand and Vietnam in April and May 2026. The participants had the opportunity to learn about the local market and meet with market leaders.
Austrade's July update indicated that 327 Australian scaleups had been supported by 13 programs in the countries that the program has been active for the past 12 months, including Indonesia, Singapore, Vietnam, UK and US.
Singapore is an especially interesting case for those with global aspirations for their businesses. Austrade's Singapore Landing Pad is geared towards companies that are entering Singapore, and businesses that are using Singapore as a gateway to Southeast Asia.
AI startups can also follow BLOCK71's 2026 AI Accelerate program. The 10-week program is available to founders from outside Singapore who are interested in exploring Asia. Eligible and assessed companies are eligible for up to S$400,000 for proof-of-concept projects and up to S$800,000 for proof-of-value projects under Startup SG Tech.
Key pathways into Asian markets
| Pathway | What founders can access |
| Austrade Landing Pads | Local networks, customers, partners and investors |
| BLOCK71 AI Accelerate | Mentors, investors, Asian localisation and potential grant support |
| Australian VC funds | Exposure to international institutional investors |
| Direct Asian VC outreach | Sector-specific capital and regional networks |
| Industry partnerships | Customers, pilots and strategic investors |
R&D support can help extend the runway
The R&D Tax Incentive could also become important before an overseas fundraise, it doesn't provide Asian VC.
In the current rules, the refundable offset for the eligible companies with a turnover of less than A$20 million is the corporate tax rate plus an additional 18.5 percentage points. For companies with greater turnover than A$20 million, a non-repayable offset is applied based on the company's R&D intensity. Eligible R&D expenditure is also subject to a limit of AUD $150 million for the incentive.
New rules take effect in 2026, but changes to the thresholds to A$50 million in turnover and A$200 million in eligible expenditure will occur following Budget 2026-27 (from 1 July 2028).
Properly accounting for eligible R&D support for founder can also lower the capital they require from outside of the new round and will thus be available for hiring, market entry and scaling.
In Australia the ultimate Asian fundraising strategy focuses on pre meeting conversations, Aussie traction, market case, early partner/customer calls and investor list by sector.
Australia's position and understanding of English business culture, along with their existing ties with Asia, can make cross-border engagement more simple. However, the current funding landscape has a trend of specificity: the right market, the right investor and a clear commercial reason for the connection.
Source:
KPMG International, Venture Pulse Q2 2026
Cut Through Venture, Q2 2026
Austrade, Australian Trade and Investment Commission
KPMG Venture Pulse Q1 2026
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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