New data shows early signs that the tech funding winter is thawing, as the amount of capital raised by Australian start-ups this year is up 30 per cent on the same period last year. However, fewer deals are being done, suggesting a two-speed tech sector is emerging.

Local start-ups banked $1.7 billion in the first five months of 2024, outpacing the $1.3 billion raised in the same period last year. The amount is less than half of the $4.1 billion raised in the corresponding period in 2022, the peak of the pandemic-era tech boom.