Black Tie has published a report on Australian investor sentiment towards innovation-led investments, finding that 66% of investors already back innovation-driven businesses and startups.
A further 24% are considering such investments, while 27% said they would commit more than $100,000 to a single opportunity. Technology, healthcare, biotech, and clean energy ranked as the most attractive sectors.
The report surveyed 100 Australian investors and included interviews with industry figures. It found a strong appetite for risk, with nine in 10 reporting a moderate-to-high risk tolerance.
Several obstacles tempered that willingness to invest. The most commonly cited barriers were a lack of reliable and transparent information (26% of respondents), high perceived risk (24%), and insufficient capital (19%).
Caroline Macdonald, Founder and Chief Executive Officer of Black Tie Holdings Group, said the findings pointed to a gap between investor demand and access to suitable opportunities.
"Australian investors are ready to deploy capital into innovation right now. The appetite and risk tolerance is there, and the sectors are clear, with technology, health and biotech, clean energy, and FinTech top of mind. What's missing is the infrastructure to connect investors with the right opportunities at the right time," Macdonald said.
Black Tie is a Sydney-based digital capital markets business focused on the tokenisation and management of real-world assets. Its report examined how funding channels and market structure affect investment in innovation.
Barriers to funding
The findings suggest investor interest is not the main constraint on innovation funding in Australia. Instead, market access, information quality, and regulatory settings are limiting the flow of capital.
Macdonald said digital marketplaces and tokenisation could help address those issues.
"Digital marketplaces and tokenisation are a direct solution to this problem, as they reduce information asymmetry and broaden access to high-quality investment opportunities," Macdonald said.
The report also raised concerns about Australia's research and development performance compared with other OECD countries. It pointed to a gap between the public support available and the extent to which businesses use it.
According to the study, the federal R&D Tax Incentive supports about 14,000 companies each year for AUD $4 billion. Yet many eligible businesses remain unaware of what they can claim.
Marty Gauvin, Principal Advisor at R&D Certainty, was among the industry experts featured in the report. He said the issue went beyond simple awareness.
"A comfortable life can lead to complacency. Businesses are often receiving very conservative advice and missing out on the government-led support that's consistent with their goals. We need to elevate the R&D conversation at every level: government, business, and advisory," Gauvin said.
Tokenisation focus
Another theme in the report was the potential role of tokenisation in widening investor access to assets that have traditionally been harder to trade. It described the tokenisation of real-world assets as a significant near-term opportunity for both investors and businesses.
The model could support fractional investment and secondary trading, opening up assets that have generally been illiquid. That is particularly relevant for smaller investors or those seeking broader exposure across alternative asset classes.
Karan Bhai, Vice President of Products and Delivery at Antier Solutions, outlined how he sees that market developing.
"Over the next three to five years, tokenisation will move from being a blockchain narrative to becoming a financial markets standard," Bhai said.
The figures point to substantial interest in backing newer businesses, especially in technology-related fields, but also to a market still constrained by uneven information and access. For founders and early-stage companies, the challenge may lie as much in presenting credible, transparent opportunities as in finding willing investors.
The sector preferences identified in the study also reflect where investors believe structural growth is most likely to emerge. Technology led the list, followed by healthcare, biotech and clean energy, placing innovation-focused sectors at the centre of current investor attention.
More than one in four investors willing to put over $100,000 into a single opportunity suggests a pool of capital that could be material for startups and scale-ups if barriers to deal flow and disclosure are reduced. The report's central finding is that investor appetite exists, but the systems linking capital to innovation remain incomplete.