Western Australia’s Startup Ecosystem: Why WA Must Back Innovation Before It Leaves
Western Australia has always been known for its strength in mining, resources, property, construction and agriculture. These industries have helped build the state’s economy for generations. But as the world changes, one question becomes more important: how does WA build the next wave of scalable, technology-driven businesses that can diversify the economy and create long-term opportunity?
In this conversation, the focus turns to the startup ecosystem in Western Australia and how it compares with places such as Queensland, New South Wales and Victoria. It also raises an important point for policymakers, investors and business leaders: if WA does not support its startups early, some of its best ideas may leave.
What Makes a Startup Different From a Small Business?
A startup is not just a small business. The key difference is scalability.
A traditional small business may grow steadily over time, taking years to become cash flow positive. A startup, however, is built to scale quickly. Once the product, platform or service is created, the cost of adding new customers can be very low. This is what makes startups so powerful.
For example, a digital platform can serve more customers without needing the same level of extra staff, infrastructure or physical expansion. Once the technology works and the market accepts it, growth can happen fast.
That is why startup ecosystems matter. They are not only about individual founders. They include investors, universities, government, advisors, board members, corporate clients and experienced mentors who can help businesses grow.
Western Australia’s Startup Ecosystem Is Small, But Growing
Western Australia’s startup ecosystem is still relatively small compared with the larger eastern states, but it is emerging quickly.
Perth has a growing number of startups, and regional WA is also beginning to play a role. The ecosystem includes founders working across technology, health, education, defence, space, clean energy and other high-growth areas.
The challenge is that many startups need early support, access to capital, experienced advisors and customers willing to back new ideas. Without that support, founders may be forced to look elsewhere.
This is where WA has a major opportunity. The state has talent, capital, universities, industry knowledge and global connections. What it needs is a stronger culture of backing innovation early.
Watch the complete Podcast
The Canva Lesson: Why WA Cannot Afford to Lose Its Best Ideas
Canva is one of the most powerful examples of what a startup can become. Its early roots were in Western Australia through Fusion Books, the online school yearbook business that came before Canva. The idea grew, evolved and eventually became one of Australia’s most recognised technology success stories.
But Canva did not stay in WA for long. It moved to Sydney after receiving support and investment elsewhere.
For WA, this raises an uncomfortable but important question: how many great ideas are leaving because they are not being supported early enough?
Canva shows what is possible when a startup scales. It also shows why early-stage investment, mentorship and ecosystem support matter. If WA wants to become more than a resources-led economy, it must create the conditions for high-growth businesses to stay, grow and thrive locally.
WA Versus New South Wales, Queensland and Victoria
Compared with New South Wales, WA’s startup ecosystem is much smaller in value. New South Wales has built a powerful startup and technology sector, supported by stronger investor networks, deeper capital markets, larger corporate customers and a more mature innovation culture.
Victoria also has a strong ecosystem, particularly around technology, health, education, research and creative industries. Queensland has been building momentum through startup programmes, innovation hubs and government-backed support for founders.
Western Australia has great potential, but it faces a different challenge. Its economy is heavily concentrated in a small number of sectors. Mining, property, construction, government and agriculture make up a large part of the state’s economic activity. When mining slows down, the broader economy often feels the impact.
Startups can help solve this problem by creating new industries, new jobs and new export opportunities.
Why Startups Matter for Economic Diversification
WA’s reliance on mining has brought wealth, but it has also created vulnerability. Mining cycles rise and fall. When the sector is strong, the economy benefits. When it slows, many other industries feel the pressure.
Startups offer a way to diversify.
They can create new solutions in health, education, aged care, disability support, childcare, artificial intelligence, clean energy, regional services, water technology, space, defence and digital infrastructure.
Not every startup will become a unicorn. Many will fail. Some will become stable small businesses. But a small number can scale rapidly and create major economic value. These are the companies that can change industries, solve real problems and create long-term prosperity.
The Role of Government, Investors and Universities
A strong startup ecosystem does not happen by accident. It needs the right mix of support.
Government can help by reducing unnecessary barriers, supporting innovation programmes and encouraging procurement from emerging companies. Investors can provide early capital and guidance. Universities can help commercialise research and connect talent with industry. Corporates can become first customers, which is often one of the biggest hurdles for a young business.
The most successful ecosystems are not built around one group. They are built through collaboration.
WA has the raw ingredients. The next step is to connect them more effectively.
Supporting Innovation in the Care Economy
The care economy is one of the most important areas where innovation is urgently needed. NDIS, aged care and childcare are all under pressure, with rising demand, workforce challenges, complex regulation and growing community expectations.
Startups and technology-led businesses can help improve service delivery, reduce administrative burden, support carers, improve access and create better experiences for families.
But innovation in care must always remain human-centred. Technology should support people, not replace compassion. The future of care will need both smart systems and deeply human leadership.
Building a Future-Ready Western Australia
Western Australia has a choice. It can continue relying mainly on traditional industries, or it can build a more diverse and resilient economy by backing innovation, startups and scalable businesses.
The state has already produced world-class ideas. The challenge is making sure those ideas have the support they need to stay and grow in WA.
If the next Canva is being built today, the question is simple: will WA recognise it early enough?
Join Us at the National Care Sectors Conference 2026
As we think about innovation, economic diversification and the future of human-centred services, the care sector must be part of the conversation.
Join us for the National Care Sectors Conference: NDIS, Aged Care & Childcare on 28 August 2026. This moving and inspiring event will bring together leaders, providers, policymakers, innovators and community voices to explore the future of care in Australia.
Be part of the conversation shaping better systems, stronger services and more compassionate outcomes for the people who need them most.