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Australia and New<\/span> Zealand are a far cry from Silicon Valley, yet the problems and circumstances of their venture environments tend to be similar in nature.<\/p>\n Megadeals are rarer today, early-stage funding is up, valuations have come back to earth, and investors are encouraging their portfolio companies to demonstrate a sustainable business with a clear path to revenue. The difference is that the geographic isolation of Australia and New Zealand<\/a> creates a sense of hustle, if not urgency, around raising funds and building a global product.<\/p>\n The Aussie and Kiwi startup ecosystems are newer and less robust, and their markets are generally smaller than their U.S., Asian and European counterparts. As such, startups here have a greater need to access not only international markets, but also foreign funds, particularly if they\u2019re operating in capital-intensive industries like deep tech, and for later-stage rounds.<\/p>\n \u201cFor the large majority of Aussie and Kiwi businesses, their main markets are typically offshore,\u201d Dan Krasnostein, partner at Square Peg Capital, told TechCrunch+. \u201cHaving investors on the cap table from these markets can be helpful for growing and building local teams in those markets, or for finding customers.\u201d<\/p>\n Rather than a weakness, startups from these countries have turned this set of circumstances into a strength. They know how to punch above their weight<\/a>, and they know that they have to build a global product<\/a> from Day 1.<\/p>\n<\/p><\/div>\n