Venture capital investment has stabilised at less than $230 million per month in local start-ups, after falling off a second cliff in July and August, driven by a dearth of late-stage deals.

New data show the amount of capital flowing to Australian start-ups is now consistently down about 50 per cent compared to the same month last year, as investors tighten the purse strings and founders look to extend their runways to conserve cash.