Venture capital firms invested over $4 billion in Australian startups like FleetSpace, BetaShares, and Bugcrowd in 2024, marking the third-highest funding year on record. However, the landscape may be shifting; 2025 could pose significant challenges for local venture firms, particularly smaller funds that emerged during the pandemic’s boom. A recent report indicates that only 23% of investors successfully completed fundraising, with 37% raising less than expected. This mixed recovery highlights the difficulties faced by new firms in a competitive environment, despite the impressive funding figures reflecting a strong startup ecosystem overall.