2025 was a year when Australia’s startup ecosystem stopped pretending it was still “early”.

Capital grew larger, institutions were reshuffled, and vibes were generally pretty good.

Some of the year’s defining moments were triumphant, record-breaking raises, billion-dollar valuations and historic firsts. Others exposed uncomfortable truths about governance, inclusion, policy, female funding, and what happens when the scaffolding around founders starts to shift.

From government-backed agencies being dismantled to the rise of secondaries and emerging fund managers to literal and figurative rockets lifting off (and not quite making it), these were the moments that shaped how founders, investors, and operators experienced 2025

Here are the ten most iconic moments of Aussie startups for 2025, as judged by me.

10. LaunchVic Dismantled and Merged with Breakthrough Victoria

In a controversial move announced late in the year, the Victorian Government revealed plans to dismantle LaunchVic as a standalone agency, following the long-awaited Silver Review.

The state’s dedicated startup champion is set to be merged with the larger investment body, Breakthrough Victoria. The decision sparked immediate concern from the local community, who fear the loss of LaunchVic’s specialised advocacy, angel networks, and ecosystem-building programs in favour of a purely investment-focused mandate.

9. Airwallex’s rapid rise to an $8B valuation

Fintech giant Airwallex capped off the year with a massive US$330 million Series G raise, valuing the company at roughly US$8 billion. The raise came after significant revenue growth, cementing its status as one of Australia’s most valuable tech exports.

Airwallex was so tantalising that Blackbird tipped in $60M into it from a follow-on fund that was established to invest in its own portfolio.

8. The End of the Sydney Startup Hub

An era ended for the NSW startup community with the closure of the iconic Sydney Startup Hub at Wynyard. The government announced the hub’s services would transition to the new "Tech Central" district near Central Station.

While the move promises a denser, world-class precinct, the closure of the Wynyard space, which had been the beating heart of the city's ecosystem since 2018, left many nostalgic and uncertain about the loss of affordable, central coworking density.

7. Startup and VC Secondaries Market continues to grow

Liquidity became the buzzword of 2025 as startups remain private for longer, and SecondQuarter Ventures was at the centre of it. The firm announced the launch of its third fund, which deals exclusively in "secondaries" (buying shares from employees and early investors).

Additionally, the ecosystem welcomed Advance VC, a fund that exclusively deals in fund secondaries, as it entered the market.

6. Firmus Technologies’ Rise to ~$7B on the rising tide of AI infrastructure spend

Tasmanian-based Firmus Technologies proved that AI infrastructure is the new gold.

The data centre startup saw its valuation surge to approximately $7 billion following several large equity raises.

Driven by the voracious global appetite for "sovereign AI" compute power, Firmus’s "Project Southgate" and its sustainable, immersion-cooled data centres have rapidly become one of Australia's most valuable tech assets.

5. The Rise of the Emerging Fund Manager

2025 saw a changing of the guard in capital allocation, with a wave of "emerging fund managers" stepping up to challenge the incumbents.

As the "OG" firms grew larger, a new generation of boutique, specialist, and operator-led funds emerged to fill gaps in specific niches.

Here are a few that launched this year:

4. Tim Doyle’s "Dildo Mountain" and the need for more operators

In a moment of peak "Startup Theatre" levity, Eucalyptus co-founder Tim Doyle brought the house down at Blackbird’s Sunrise conference with a major problem with silicon.

While discussing the challenges of returns for his sex-toy brand, Normal, he revealed the existence of a "dildo mountain" of used products sitting in a warehouse, unable to be recycled. He jokingly offered a job to anyone who could profess to solve the problem.

3. The StrongRoom AI Saga

In one of the year’s messiest capitulations, formerly high-flying health-tech startup StrongRoom AI collapsed into voluntary administration.

The fallout was public and ugly, featuring allegations of financial irregularities, lawsuits from investors, and frozen assets. The drama served as a stark cautionary tale for the ecosystem about the importance of governance, due diligence, and the dangers of growth-at-all-costs mentalities.

The fallout from the saga continues, with lawsuits still pending.

2. Australian startup funding for women hits record low in 2025

In Q2 Cut Through Venture report, we saw that women-only founding teams secured less than 0.5% of all capital raised this year, a new low for a sector that has long struggled to deliver on its promises of diversity and inclusion.

In 2024, just 2% of all capital went to all-women founding teams, down from 4% in 2023.

Significant work to be done in 2026.

1. Gilmour Space’s Launch Eris Rocket Launch

The long-awaited debut of Australia's first homegrown orbital rocket, Eris, finally took place this year.

After years of regulatory hurdles and scrubbed attempts, the rocket lifted off from the Bowen Orbital Spaceport in Queensland.

While the launch marked a historic milestone for the local space industry, it wasn't without heartbreak. The vehicle successfully cleared the tower, flew for 14 seconds, but failed to reach orbit.

Nevertheless, it proved that Australian commercial spaceflight is real, earning it the top spot for sheer ambition and historic significance.