The Australian Startup Outlook 2026

Author:

The Carta Team

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Read time: 3 minutes

Published date: March 17, 2026

A survey of 500 senior decision-makers at Australian startups reveals that 96% of founders remain committed to an IPO, eyeing dual listings and international exchanges as they prioritize governance and long-term optionality over immediate liquidity.

Highlights

• IPO ambition remains strong, but exit timelines are extending: 96% of Australian startups still see an IPO as part of their strategy, but nearly half (47%) now view it as a long-term outcome (5+ years), signalling more deliberate sequencing rather than urgency.
• Capital pressure is acute, particularly in Victoria: 65% of startups report having less than 12 months of runway remaining, rising to 71% in Victoria, thanks in part to rising spend: 86% of Australian startups report increased burn over the past year.
• Global exit optionality is expanding: The ASX remains the anchor, but more than half of startups planning IPOs are considering dual or offshore listings, with dual listings (32%) the most popular international strategy.
• Australia’s startup map is widening, without losing its centre: Nearly all startups see talent and investor momentum shifting beyond Sydney and Melbourne, yet 86% still say operating in one of the two cities remains important for growth.
• AI adoption is driven as much by pressure as belief: Four in five startups believe there is an AI bubble, yet most feel compelled to integrate AI into their operations to maintain credibility with investors, customers, and the market.

The shift toward long-term liquidity

IPO ambition remains a cornerstone of the Australian ecosystem. An overwhelming 96% of founders say an IPO is part of their exit strategy, and 90% agree that it remains a realistic option.

However, the long game is being redefined, giving way to a striking dichotomy: While founders aim for the public markets, the most significant wins of this cycle are increasingly occurring via M&A. Although going public remains the North Star goal, strategic acquisition has become a powerful and immediate alternative for high-performing companies.

Nearly half of startups (47%) now frame an IPO as a long-term goal more than five years away, compared with just 10% aiming for a listing within the next two years. This aligns with Carta’s 2025 data on VC secondaries, which reveals that companies are staying private for longer due to the availability of private capital and increasingly rigid public market governance standards.

The data also reveals a patience gap between Australia’s two largest startup hubs: 63% of Victorian startups view an IPO as a long-term goal (5+ years), compared to just 49% of their New South Wales counterparts. This shift reflects a move toward quality over speed, investors now require greater operational maturity and clearer paths to profitability before backing liquidity events. As a result, startups are building for the long-term and focusing on fundamentals that will support an eventual IPO—a level of discipline that might make them more attractive to M&A suitors.

Read the full Startup Outlook report

How are Australian startups navigating the trade-offs between runway and growth? Download the Australian Startup Outlook 2026 to access the complete dataset including state-by-state breakdown for runway, exit timelines, and AI strategy against the broader ecosystem.