For those living in apartments or regional communities, Allume Energy is making solar power more accessible, offering shared solar technology that allows multiple households to benefit from a single rooftop solar system. This reduces electricity costs while making renewable energy more widely available, demonstrating that sustainability solutions don’ t have to be reserved for those with standalone homes and large rooftops.
At the same time, Mad Paws is creating grassroots opportunities for thousands of Australians by enabling people to earn money as pet sitters. The company has built a thriving platform that supports local employment while making pet care services more accessible and trusted across the country.
THE FUNDING GAP: WHY IMPACT STARTUPS STRUGGLE TO GET SUPPORT Here’ s where it gets tricky: the VC funding model often doesn’ t work for impact startups. Traditional venture capital is all about the exit strategy, operating on a strict 10-year timeline that pushes for rapid growth followed by a quick sale. For many founders, it’ s a bit like being on a treadmill where someone’ s constantly pressing the speed-up button. Sure, they’ re moving fast, but it’ s exhausting, and in the end, they might not even be in control of where they’ re going.
In contrast, impact startups tend to grow more organically. They’ re the local bakeries or family-run businesses of the startup world— deeply embedded in their communities and designed to serve them sustainably, not just in the short term but over decades. STREAT, for example, runs cafes and catering businesses that provide hospitality training and employment opportunities for disadvantaged youth. They are not only creating jobs but also breaking cycles of homelessness and unemployment. Unlike a typical food startup seeking rapid expansion and a public listing, STREAT prioritises social outcomes over profit margins.
Yet in Australia, VC-backed startups— those working on SaaS, fintech, blockchain, and machine learning— are winning the lion’ s share of support, from government incentives to grants. It’ s largely because the venture capital industry has learned how to speak in a language policymakers understand, lobbying effectively for the support they need. Meanwhile, impact startups, often focused on low-waste, biodiversity, and community-based solutions, are only just finding their voice in the public policy space.
A CALL TO ACTION: BACKING THE WORKHORSES Imagine if we supported the impact startup sector the way we do VC-backed startups. This is where the real work of Australia’ s transition to a clean, low-waste society could happen. Impact startups could harness the talents of everyday Australians— not just engineers or coders, but people on the ground tackling the challenges we all face. They could be the bridge between the big picture and everyday change— helping facilitate Australia’ s transition to a more sustainable, resilient country.
For Australia to fully realise its potential as a global leader in sustainability, government and investors must dig deeper into the impact sector. This means supporting impact startups not as side projects but as central players in our economic and social futures. It’ s time to stop betting on every racehorse in the VC stable and give the workhorses in the impact sector the backing they deserve. With the right support, they’ ll carry us all to a better future.
ABOUT THE AUTHOR
PIERS GROVE Piers Grove is an Australian entrepreneur, investor, and advocate for impact-driven businesses. As the Executive Director of StartSomeGood and Rocket Seeder, and the cofounder of EnergyLab and
Boomerang Labs, he has been instrumental in fostering social enterprises and sustainable startups. With a background spanning clean energy, media, and venture capital, Piers is committed to supporting initiatives that drive positive social and environmental change.
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