While AI startups dominate the headlines, a quieter but potentially more consequential wave of Australian deep tech companies is reaching Series A maturity. These are companies working on problems that can’t be solved by software alone — quantum computing hardware, novel biomaterials, advanced semiconductor packaging, and synthetic biology.

The capital requirements are higher, the timelines are longer, and the investor base is more specialised. But the early 2026 activity suggests that both local and international investors are taking Australian deep tech seriously.

Quantum Computing

Australia’s quantum computing sector continues to punch well above its weight relative to the country’s size.

Silicon Quantum Computing (SQC), the company spun out of UNSW under Michelle Simmons’ leadership, isn’t technically raising Series A — they’re beyond that stage — but their continued progress sets the benchmark for the sector. Their recent demonstration of a six-qubit quantum processor fabricated in silicon represents the most advanced quantum chip built in Australia and validates the silicon-based approach that differentiates Australian quantum research from the superconducting approaches favoured by Google and IBM.

More interesting from a funding perspective is Diraq, also a UNSW spinout, which closed a substantial Series A round in late 2025 and is reportedly already exploring Series B discussions. Their pitch is commercial-scale quantum computing built on modified semiconductor manufacturing processes — essentially making quantum chips in existing fabs. If it works, it solves the manufacturing scalability problem that plagues other quantum approaches.

Q-CTRL, founded by Michael Biercuk, has established itself as the infrastructure software layer for quantum computing and continues to attract both government and private investment. Their positioning is clever: regardless of which hardware approach wins, every quantum computer needs error correction and control software.

The Australian quantum sector benefits from deep university research partnerships, particularly with UNSW and the University of Sydney. But these companies face a challenge: their commercial timelines are measured in years, and patient capital is harder to find than it used to be.

Biotech and Synthetic Biology

Australian biotech has historically focused on pharmaceuticals and medical devices, but a new wave of companies is applying biological engineering to industrial problems.

Microba Life Sciences, based in Brisbane, has been expanding its microbiome analysis platform and recently raised additional capital to build out its synthetic biology capabilities. Their technology maps gut microbiome composition and is being applied to personalised nutrition, diagnostics, and drug development. The company’s commercial partnerships with major food and pharmaceutical companies provide revenue while the longer-term platform develops.

Eden Brew, the Melbourne-based precision fermentation company producing animal-free dairy, raised a significant round in late 2025 led by Main Sequence Ventures with participation from international investors. They’re now scaling production and targeting commercial supply agreements with Australian food service companies. The technology is proven; the challenge is getting production costs below conventional dairy at scale.

Nourish Ingredients, another precision fermentation play focused on animal-free fats and oils, has attracted attention from European and American food companies. Their approach targets the flavour compounds that make plant-based meats taste unconvincing — if they can produce animal-identical fats without animals, the implications for the global protein market are significant.

What’s notable about these biotech raises is the increasing involvement of international strategic investors alongside traditional venture capital. Food companies, pharmaceutical firms, and chemical manufacturers are investing directly in Australian biotech startups, not just as financial bets but as strategic pipeline plays.

Advanced Materials

This is where some of the most interesting but least publicised activity is happening.

Talga Group, the graphene and advanced battery materials company listed on the ASX, isn’t a startup anymore, but its progress with its Swedish graphite-graphene processing facility is relevant to the broader advanced materials narrative. The company’s anode materials for lithium-ion batteries represent a genuine Australian innovation in a market dominated by Chinese and Japanese suppliers.

Several earlier-stage materials companies are currently in market for Series A capital.

Imagine Intelligent Materials, based in Geelong, has developed graphene-based sensors for industrial monitoring — detecting moisture, structural stress, and chemical contamination in real time. Their initial applications in mining and infrastructure are generating commercial revenue, and the Series A is intended to scale manufacturing and expand into international markets.

Gelion, the University of Sydney spinout developing zinc-bromide batteries for grid-scale energy storage, is pushing forward with commercialisation after their ASX listing. Their technology offers a non-lithium alternative for stationary energy storage, which becomes increasingly relevant as lithium supply chain concerns intensify.

The advanced materials sector faces a particular challenge in Australia: manufacturing scale-up. The country has strong research capabilities and significant mineral resources, but converting laboratory innovations into commercial-scale manufacturing typically requires moving production overseas. Companies that can maintain Australian manufacturing while reaching commercial volumes have a compelling story for both investors and government, given current critical minerals policy settings.

The Investment Landscape

Several factors are shaping deep tech investment in Australia in early 2026.

CSIRO’s Main Sequence remains the most active deep tech-focused investor in Australia, with a mandate and time horizon suited to companies that need five to ten years to reach commercial maturity. Their portfolio companies have a markedly higher survival rate than the general startup population, partly because Main Sequence brings scientific expertise alongside capital.

Brandon Capital, focused on life sciences, has been active in biotech Series A rounds. Their approach of combining medical and scientific advisory boards with investment decisions gives them an edge in evaluating technical risk that generalist VCs can’t replicate.

International capital is increasingly present. US-based deep tech funds like The Engine (MIT-affiliated) and Breakthrough Energy Ventures have both looked at Australian companies. The exchange rate makes Australian investments attractive on a cost basis, and the quality of Australian research institutions provides a credibility layer that early-stage deep tech needs.

The Australian Government’s National Reconstruction Fund, with its focus on critical technologies and advanced manufacturing, is also beginning to flow. Several deep tech startups report that NRF co-investment has been a factor in closing private capital rounds — government backing de-risks the investment for private investors.

Challenges Ahead

Australian deep tech faces structural challenges that don’t apply to software startups. Manufacturing scale-up requires capital intensity that Australian VC funds struggle to support alone. International partnerships are often necessary but create complexity around IP ownership and strategic alignment. The talent pool for deep tech — physicists, materials scientists, bioprocess engineers — is even smaller than for software engineering.

But the opportunity is substantial. Deep tech companies that succeed create defensible competitive advantages through patents, proprietary processes, and accumulated technical knowledge that software companies can’t replicate. In a market where AI is becoming commoditised, the physical technologies that can’t be copied by downloading a model have increasing strategic value.

Q1 2026 is showing that Australian deep tech is maturing from a collection of university research projects into a genuine sector with commercial ambitions, international interest, and growing institutional support. The question is whether Australia can maintain that momentum as these companies reach the scale-up phase where the capital requirements — and the risks — multiply significantly.