Funding & Industry Insights: October 2026 (Innovation Bay)

Summary

• 93% of Q3 venture capital in Australia and New Zealand went to just ten deals, while rounds under $10 million shared $162 million.§1
• Square Peg raised more than $1 billion, the biggest raise in its 14-year history, and has returned more than $1.4 billion to investors since 2012.§1
• Australian startups raised a record $4.2 billion in Q3, but excluding Firmus quarterly funding fell 30% to $1.31 billion.§3
• Female-founded teams won 32% of deals and 2.7% of the capital.§3
• 71% of investors surveyed say their funds have not had a single exit this year.§3
• The median seed round led or joined by top US firms in October was US$32 million.§2
• From July 2027, fund managers' carried interest will be taxed at up to 47%, up from 23.5%.§4

Key insights

1. Metacognition raised a $15 million pre-seed, with Main Sequence investing $10 million and AirTree adding $5 million.§1
2. Cuttable raised a $20 million Series A led by AirTree and already earns 40% of revenue in the US.§1
3. Modal raised a US$750 million Series D at a US$15.75 billion valuation.§2
4. Bedrock Robotics raised US$600 million at a US$4.1 billion valuation.§2
5. Canva's shake-up affects 1,271 people, or 22% of its workforce.§3
6. Stripe says solo founders made up 63% of companies incorporated through its Atlas platform in the second quarter.§3
7. The RBA lifted rates for a fifth straight time.§4