Australian investors keen on tech, but funding lags

Black Tie has published a report showing strong Australian investor interest in technology and startup investment, while gaps in funding infrastructure are limiting access to those opportunities.

Based on a survey of more than 100 Australian investors and interviews with industry figures, the report found technology was the top sector for investors at 30%. Healthcare and biotech followed at 20%, while clean energy accounted for 14%.

Appetite for innovation-led businesses was also pronounced. The findings show 86% of respondents were interested in backing local innovation-focused companies, while 90% reported a moderate-to-high tolerance for risk.

That interest sits alongside limits in the current market structure. Only 27% of investors said they would commit more than AUD $100,000 to a single deal, highlighting a constraint for startups seeking larger pools of capital.

Access to information also emerged as a problem. The report found 26% of investors viewed a lack of reliable and transparent information as a main barrier to innovation-led investment in Australia, while 24% cited high perceived risk and 19% pointed to insufficient capital.

Funding gap

The findings point to a mismatch between demand for technology exposure and the channels available to fund younger companies. Black Tie argued that fragmented market infrastructure and information asymmetry are preventing investors and businesses from connecting efficiently.

Caroline Macdonald, Founder and Chief Executive Officer, Black Tie Holdings Group, said the results showed a gap in the market.

"Australian investors are ready to deploy capital into innovation. The appetite and risk tolerance are there, and the sector is ready to go with AI and startups, health and biotech, clean energy, and FinTech, among other priorities. What's missing is avenues for investors to connect with the right opportunities," Macdonald said.

The report identifies digital marketplaces and tokenisation as possible ways to widen access to early-stage investment opportunities. It argues tokenisation could support fractional investment and secondary trading, potentially opening private market deals to a broader investor base.

Macdonald said those tools could address some of the structural issues described in the study.

"Digital marketplaces and tokenisation are a direct solution to this problem, as they reduce information asymmetry and broaden access to high-quality investment opportunities," Macdonald said.

Tokenisation focus

Black Tie describes itself as a digital capital markets business focused on the tokenisation and management of real-world assets. The report is its first dedicated study of sentiment across Australia's funding and innovation market.

The document places tokenisation at the centre of its proposed response to the funding gap. In practical terms, tokenisation refers to representing ownership interests in assets digitally, with the aim of making investment parcels smaller and easier to trade.

Karan Bhai, Vice President of Products and Delivery, Antier Solutions, outlined in the report how that market may develop.

"Over the next three to five years, tokenisation will move from being a blockchain narrative to becoming a financial markets standard," Bhai said.

The report also highlights broader concerns around support for research and development, suggesting these issues affect the pipeline of investable companies. For startups and technology businesses, access to government support can help extend runway and improve investor confidence.

Marty Gauvin, Principal Advisor, R&D Certainty, said the current approach was too cautious.

"Businesses are receiving conservative advice and missing out on government-led support. We need to elevate the R&D conversation at every level," Gauvin said.

Overall, the survey depicts a market where investor willingness to back AI, software, automation, digital platforms and other emerging technologies is ahead of the systems used to channel capital into those sectors. With most respondents signalling comfort with higher-risk investments, but far fewer prepared to write larger cheques, the challenge for founders appears to be less about demand than about market access, trust and deal structure.

Among the clearest findings in the report, technology ranked first among sectors targeted by Australian investors at 30%.