Australia-Asia tech dialogue proposed

Researchers propose a formal dialogue channel should be established to encourage the flow of investment, ideas and talent between the Australian tech ecosystem tech ecosystems in Asia.

A paper, on Australian investment in Asian early-stage technology companies, produced jointly by Asialink Business and the Tech Council of Australia, suggests the dialogue should be led tech industry representatives and policymakers.

“Building the Australia-Asia Tech Corridor” explores potential for developing mutually beneficial cooperation based on analysis of Australian investment in Asian early-stage technology businesses.

The paper argues that increased exchange of capital, people and technology would benefit both the Australian and Asian technology ecosystems.

According to the paper, Australian investment in Asian early-stage technology companies has surged in recent years with a total of $23.8 billion invested in the ten years to 2023. The value of investment increased very strongly from 2016 to 2018 but sharply reduced more recently with $779 of outflowing investment in 2023 down more than 86% from the prior year. This, however, reflected an overall reduction in venture investing.

“While the amount invested year-to-year has fluctuated in line with global conditions, we expect this relationship is here to stay and shows great potent for mutually beneficial growth,” the paper said.

Other key findings of the paper include:

• Australian investors have led 40% of the transactions they have engaged in over the last decade. 
• Significantly, 77% of investments of Australian investments target seed and early-stage companies in Asia, particularly in the consumer and business to consumer (B2C) sectors. 
• Over half the value of all Australia-linked investment is directed towards Singapore, making it the premier destination for Australian tech investments in Asia. 
• The value of Indian capital raisings involving an Australian investor grew by 95% over the course of the decade (2013-2023) and the number of transactions doubled between 2015 and 2023. 

Asialink Business director, advisory and insights, Robert Law said: “The development of a robust Australia-Asia tech corridor is critical for fostering innovation, growth and collaboration, connections can drive mutual success across both regions.”

Asialink Business chief executive Leigh Howard said: “Success in Asia requires more than just capital, it demands a deep understanding of local dynamics and the ability to build strong in-market relationships.

“Developing Asia-specific capabilities is essential for Australian investors looking to unlock new opportunities in Asia’s tech markets.”

Tech Council chief executive Damian Kassabgi said: “The mutually beneficial exchange of expertise, via talent, investment or technology, is the foundation of strong economic relationships between Australia and Asia. These connections can support both regions to grow companies globally.”   

Co-founder and managing partner of Sydney-based Taronga Ventures Jonathan Hannam noted: “Asia’s rapid urbanisation creates incredible opportunities for leading emerging technology companies to scale. For Taronga Ventures, we see many investment opportunities across the built environment and real asset sectors and this is a strategic driver for long-term growth.”

Eastablished in 2013, and hosted by the University of Melbourne, Asialink Business provides Australian organisations, and individual professionals, with insights for business success in Asia. The organisation is supported by the federal Department of Industry.

The Tech Council of Australia is the peak body for the technology sector in Australia.

According to the Tech Council, the tech sector contributes around $167 billion a year to the Australian economy and employs 861,000 people. This makes it Australia’s third largest industry behind mining and banking.

Image: Singapore; over half the value of all Australia-linked Asian technology investment is directed towards the city state.