Startup employment in
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About this report.
The purpose of this report is to provide a detailed picture of the jobs being created by the Victorian startup
sector in Australia. While we recognise LaunchVic has commissioned other reports into the impact of startup
jobs on the Victorian economy, to the best of our knowledge, this report is the first attempt to capture the role of
Victorian startups through the lens of employment, using both curated data and human expertise.
In this report you will find fascinating new insights with a spotlight specifically on Victorian startups.
Find out how Victorian startup jobsЀ growth measures up against the Victorian economy; the impact on jobs
growth during COVID-19; where the most jobs are being created in the startup lifecycle; which startups are
creating jobs vs employing people; the sectors with most startup growth; how startup job creation stacks up
against traditional industry; and the growth of VC-backed vs non-VC backed startups.
While it is widely accepted that innovation drives the creation of high-skill quality jobs, it is difficult to
quantify where startups sit in this mix. Startups are often seen as investments instead of job creators –
when in fact they are both. It is also difficult tracking employment data for startups on a fast growth
trajectory where this ever-changing metric requires constant monitoring and careful analysis. Startups, as
private companies, are also largely exempt from reporting requirements otherwise imposed on public
companies, Universities and research facilities.
As a result, the social dimension of startups is often overlooked. Startups not only help create value to
economies, but they are also job multipliers, creating high-skill, high quality jobs in their own communities
and beyond. In the US, the National Venture Capital Association estimates that VC-backed companies
generated as many as 2.27 million jobs in 2019. In the Netherlands, Dealroom research found that the