💌 Aussie Startup & VC Summary | 10th May, 2025

G’day and welcome to your weekly edition of Overnight Success - your download on all the important things that have happened in the Aussie startup ecosystem. 🚀 

👀 Headlines 👀 

⏩ Blackbird joins Airwallex with $60M investment ahead of fintech’s IPO plans (AFR)

• Blackbird Ventures is reportedly investing $60 million into Airwallex, marking a late but significant entry into the Aussie-born fintech unicorn ahead of its planned IPO within 12 months.

• The investment comes from Blackbird’s $668M follow-on fund. The use of the follow-on fund does raise an eyebrow. Does Blackbird not see enough high-quality startups in its own portfolio pipeline, so it must look external? Or are we just reading too deeply into it.

• Airwallex, now based in Singapore, last raised US$100M in 2022 at a US$5.5B valuation and has now earned over US$902M (A$1.46B) since launching in 2015.

⛔ ‘Green Macquarie’ Pollination scraps $150M climate venture fund amid tough market (AFR)

• Pollination, a climate investment and advisory firm, has abandoned plans for a $150 million Climate and Nature Impact Venture Fund after failing to raise sufficient capital, despite an early commitment from Queensland’s QIC.

• The fund aimed to back startups in energy, transport, agtech, nature, and the circular economy with $4–12M equity cheques, and was part of QIC’s Queensland Venture Capital Development Fund, which requires matched capital.

• Market headwinds, including a sharp drop in startup valuations, a soft IPO market, and shifting preferences towards more liquid asset classes like private credit, have hampered VC fundraising efforts, particularly for emerging managers or first-time funds.

🏛️ Ed Husic exits Industry portfolio as tech sector eyes major policy reshuffle (ABC, Innovation Aus)

• Ed Husic has been dumped from Cabinet, ending his tenure as Industry and Science Minister, amid internal Labor factional reshuffling following the federal election. His exit marks the end of a rare period of stability in the Industry portfolio, with Husic being the first minister to serve a full term in over a decade.

• The tech sector is pushing for a whole-of-government approach to AI, data centres, and the digital economy, with growing support for these responsibilities to move from Industry to Treasury. The tech sector has been saddened by the loss, with leaders coming out and calling Ed Husic a champion of the sector. (Capital Brief)

• Candidates tipped for elevation include Dan Mulino, Jess Walsh, and Andrew Charlton – all with advanced economics credentials.

❄️ PsiQuantum taps Linde to build ‘critical’ cryoplant to cool the Brisbane quantum computer (Innovation Aus)

• PsiQuantum has commissioned Linde, the German engineering giant, to build one of the largest cryoplants ever made for a quantum computer, marking a major milestone in its Brisbane-based quantum manufacturing project.

• The cryoplant will cool the photonic qubits inside PsiQuantum’s error-corrected quantum computer to 4 Kelvin (-270°C), significantly warmer than matter-based systems, enabling PsiQuantum to scale faster using off-the-shelf cryogenic tech.

• The system will be built and tested in Germany, with delivery to Brisbane scheduled for Q1 2027, according to a PsiQuantum spokesperson.

🚀 Australian defence tech startups eye Europe as $1.4T rearmament drive creates export gold rush (AFR)

• Australian defence startups are targeting Europe’s €800B ($1.4T) ReArm Europe Plan 2030 as rising geopolitical tensions and reduced reliance on the US military create a wave of demand for sovereign defence capability.

• Canberra-based Penten has merged with UK firm Amiosec to form PentenAmio. The company projects revenue of $125m in 2025 from secure comms and AI-driven electronic warfare tools. The merged company is already in talks with the European and Canadian governments.

⚡️ Startup Retro ⚡️

Blinq lands $40M Series A at ~$200M valuation for growth of digital business card platform

Founder: Jarrod Webb

Melbourne-based business card platform Blinq has secured USD $25 million (AUD $40 million) in a Series A round, marking the largest Series A investment in Australia this year. The funding round was led by Touring Capital, a US-based venture capital firm specialising in early-growth AI-powered B2B software startups, with participation from existing backers Blackbird Ventures and Square Peg Capital, along with new investor HubSpot Ventures.

Blinq, founded by Jarrod Webb in Melbourne, aims to revolutionise professional networking through its innovative digital business card platform. With over 2.5 million users across 500,000 companies in 189 countries, Blinq has rapidly grown since its inception. Notably, Blinq is now used by employees at more than 90% of Fortune 500 companies, demonstrating its widespread adoption and utility in modern networking.

The platform enables users to instantly share personalised digital cards via QR codes, NFC taps, short links, and email signatures, seamlessly integrating into leading CRM systems like HubSpot and Salesforce. The startup uniquely addresses the critical initial moments of professional connections, focusing on capturing interactions immediately and accurately.

Founder Jarrod Webb, a former senior operator at Uber Eats, started Blinq after experiencing frustration with outdated paper business cards. Initially a weekend project, Blinq quickly gained traction, prompting Webb to dedicate himself full-time to the venture by 2021.

Blinq operates a freemium model for individuals and charges businesses per seat, supporting organic growth and low acquisition costs. The company plans to leverage the Series A funding to accelerate global expansion, particularly targeting growth in North America and Europe, and to enhance its technology stack.

Priya Saiprasad, co-founder and general partner at Touring Capital, joins Blinq’s board, bringing significant experience from her previous roles at SoftBank Vision Fund and M12, Microsoft’s venture fund.

Due Diligence: AFR, TechCrunch

Haast raises $6M to grow AI-powered marketing and content compliance platform internationally

Founders: Kunal Vankadara, Jason Watling, Liam King

Sydney-based Haast has raised AUD $6 million in a seed funding round led by Airtree, with participation from US-based defy.vc, Aura Ventures, and Black Sheep Capital. The funding will support Haast's mission to transform compliance processes for regulated businesses globally.

Haast's innovative AI compliance platform automates and enhances risk management tasks, initially focusing on marketing and public content. Already adopted by Telstra, Future Super, Zurich Australia & New Zealand, and UK insurer Aviva, Haast ensures that content published maintains compliance, which is especially useful in highly regulated environments. 

The technology reduces manual review efforts by up to 80%, accelerates the deployment of compliant content threefold, and continuously monitors risk across internal, external, and third-party channels.

With the fresh funding, Haast plans to accelerate its US expansion, expand its team, and further develop its technology to cover additional compliance areas, including contract review and anti-money laundering.

Due Diligence: Capital Brief, Business News Australia

Levur raises $1.2M to brew palm oil alternatives in the lab

Founder: Tom Collier

Sydney-based startup Levur has raised $1.2 million in pre-seed funding to commercialise its lab-grown alternative to palm oil—a product found in over 50% of Western consumer goods and a key driver of deforestation and orangutan extinction. The round was led by Main Sequence, backed by CSIRO, and GrainCorp Ventures, with support from SparkLabs Cultiv8 and UNSW Founders.

Levur utilises a fermentation process similar to beer brewing to engineer yeast strains that produce high-performance, nature-identical oils, aimed at replacing unsustainable plant and animal oils. By supplying essential raw materials to cosmetic, food, and nutraceutical manufacturers, Levur plays a crucial role in the supply chain, contributing specialised ingredients vital for product formulation. This involvement supports innovation and sustainability within these industries, leveraging advanced biotechnological processes like precision fermentation.

The startup recently won KPMG’s $100K Nature Positive Challenge and previously participated in the SparkLabs Cultiv8 agri-tech accelerator. GrainCorp Ventures, which also backs agtech firms Calice and BioScout, sees Levur’s platform as a scalable, traceable, and environmentally sound solution for global supply chains.

With palm oil linked to widespread environmental damage, Levur’s synthetic approach could mark a turning point in how ingredients are sourced, without the ecological cost.

Due Diligence: Startup Daily

Advanced raises $2.3M equity round to help Australian startup access R&D Tax Incentives refunds early

Founder: Alex Knight

Sunshine Coast fintech Advanced has secured $2.3 million in equity as part of a broader $25 million lending fund aimed at helping Australian startups access their R&D Tax Incentive refunds early, without giving up equity.

Founded by former VentureCrowd and Tractor Ventures exec Alex Knight, Advanced offers fast, non-dilutive loans to startups in biotech, deep tech, software, and manufacturing. The $25 million pool is 90% debt and backed by investors including Adrian Bunter (Employment Hero), Alan Hegerty, and ex-Queensland Chief Entrepreneur Wayne Gerard. Phil Cummins from QIC will join the board.

Operating in a space occupied by Radium Capital and R&D Capital Partners, Advanced aims to stand out with rapid approvals (within 48 hours) and same-day funding post-signing. Knight's goal: unlock $1 billion in economic impact over five years by helping founders turn R&D credits into compounding growth.

The lender says it can assess applications within 48 hours and start lending within 24 hours of approval. Advanced takes an upfront application fee and charges a monthly interest rate depending on the term of the loan, typically around 16 per cent to 17 per cent.

With over 50 deals already closed—including with Rainstick, Sicona Battery Technologies, and HowToo Advanced is already helping startups unlock working capital. Advanced has also joined Pledge 1%, committing funds to social and environmental causes tied to each loan issued.

Due Diligence: Startup Daily, AFR

Relevance AI lands $37M Series B for AI agent platform

Founder: Daniel Vassilev

Sydney- and San Francisco-based Relevance AI has raised $37 million (US$24M) in Series B funding, led by Bessemer Venture Partners with backing from King River Capital, Insight Partners, and Peak XV. The raise positions the startup at the forefront of a fast-growing market for AI agents, which Boston Consulting Group predicts will grow at 45% CAGR over the next five years.

Relevance offers a no-code platform to help businesses design and deploy specialised AI agents that function like human employees. These agents learn tasks, integrate into workflows, and improve over time. Two new features, “Workforce” (a visual multi-agent builder) and “Invent” (text-to-agent generation), enable both domain experts and engineers to build agent teams tailored to specific processes rapidly.

Co-founder Daniel Vassilev, now based in San Francisco, says the company’s technology is tool and model-agnostic, allowing agents to integrate into existing tech stacks, unlike rivals tied to single-vendor ecosystems. With 40,000 agents created in January alone, clients like Qualified, Activision, and SafetyCulture already see meaningful returns.

The company now employs 80 people, up from 19 in 2023, and sees competition from emerging players like Retell, SmythOS, and even Salesforce. Relevance aims to be the go-to AI operating system for enterprise automation.

The raise coincides with the release of “Agent Drop,” which allows you to turn ideas into custom agents using simple language.

Due Diligence: TechCrunch, Startup Daily, SmartCompany

1Breadcrumb acquires rival SignOnSite and raises $4.5M SAFE note to consolidate construction tech 

1Breadcrumb CEO: Simon Elliot

Australian construction tech scaleup 1Breadcrumb has acquired long-time competitor SignOnSite in a strategic merger to dominate the global construction safety software market. The deal combines two of the region’s most recognised platforms and boosts 1Breadcrumb’s headcount from 48 to 64, with SignOnSite’s former CEO Alexandria Garlan, joining as Chief Commercial Officer.

Founded in 2020, 1Breadcrumb has grown rapidly by digitising safety check-ins, permits, and compliance documents—a critical need in an industry where 65% of sites still rely on paper. SignOnSite, launched in 2013, brings a decade of market experience and a modern web portal that fills a key product gap for 1Breadcrumb.

The acquisition, structured as a mix of equity and cash, simplifies cap tables and includes a fresh $4.5M raise via safe note, with backing from Five V Capital, Tribe Global Ventures, and a U.S. family office. Previous SignOnSite investors like Black Nova and Ghost VC now hold equity in the merged entity.

With over 1.5 million workers on its platform and clients like AGL, Buildcorp, and Fletcher, the new entity is eyeing global expansion, especially into the US, UK, and Ireland, to capitalise on growing international demand for compliance-driven construction SaaS.

💰️ New Fund, Who’s This?💰️ 

🥝 Phase One Ventures wraps NZ$2.1M early-stage fund backing 14 Kiwi startups (Startup Daily) 

• New Zealand VC firm Phase One Ventures has fully deployed its NZ$2.1 million (A$1.94M) early-stage fund across 14 startups, with over one-third led by female founders.

• Launched in 2021 by Canva and Airtasker alum Mahesh Muralidhar, the fund evolved from a 2020 incubator community, with GD1 as anchor investor and backing from early Canva and Kami team members.

• The portfolio has collectively raised NZ$80–100 million in follow-on capital and created 100–150+ tech sector jobs. Managing partner Simon Young confirmed the fund will now focus on portfolio support only, with no second fund planned.

• Notable companies include Aquila Earth (wireless power), Cotiss, Ivo, VXT, and edtech startups with cross-Pacific VC support. Two companies, Venu and Ross, are pre-institutional.

📈 Mighty Partners targets $100M venture debt fund as demand grows for non-dilutive capital (AFR)

• Mighty Partners, the venture debt firm formerly known as Fundabl, is planning to raise a $100 million fund over the next two years, backed by Zip co-founder Larry Diamond and led by new MD Kal Jamshidi, a former Macquarie banker and founder of Letter of Intent.

• Jamshidi will focus on tapping family offices and high-net-worth investors, shifting from a warehouse facility model (via iPartners) to a dedicated fund structure.

• The firm, launched in 2021 by Ethan Singer and David Salkinder, is now backed by major shareholder Matt Leibowitz (founder of Stake), with Singer stepping back to a board role.

• Mighty offers $1–10M debt facilities at 12–17% interest rates, targeting post-Series A startups with at least $1M in recurring revenue and strong tech moats.

🎓 UNSW Founders partners with Luminary to back 18 deeptech startups with $200K each in the 10x accelerator

• UNSW Founders has announced a public-private partnership with Luminary Partners to fund 18 early-stage startups with $200,000 each, making it Australia’s best-funded university accelerator program.

• Luminary Partners, formed from the merger of HappenCo and Banksia, will provide capital, industry expertise, and investor access, extending its previous support of UNSW’s Defence 10x accelerator to two additional programs.

• The $3.6 million fund will be deployed via SAFE notes with a $3.5M valuation cap, allowing founders to delay issuing equity while accessing critical early-stage capital.

• The investment targets deeptech ventures aligned with the National Reconstruction Fund’s priorities, across UNSW Founders’ three flagship accelerators:
  

  • Health 10x: In partnership with The George Institute for Global Health and Virtus Health, accelerating ventures addressing major unmet health needs, with a dedicated stream for Women’s Health innovation.

  • Defence 10x: Backing startups and scaleups building Australia’s national security and sovereign capabilities, in partnership with the Defence Trailblazer initiative.

  • Climate 10x: Supporting startups tackling decarbonisation, clean energy, and circular economy challenges, with the Trailblazer for Recycling and Clean Energy.

🎓 University of Sydney launches $25M pre-Seed fund to back deeptech and health spinouts (Startup Daily)

• The University of Sydney has launched a $25 million Pre-Seed Launch Fund to support early-stage startups emerging from its research ecosystem, offering up to $500,000 per venture via SAFE notes or priced rounds.

• The fund targets the critical gap between proof-of-concept and VC funding, and is open to staff, students, affiliates, and recent alumni (within 5 years of graduation).

• The fund is part of a broader commercialisation strategy, with 259 startups supported to date, raising $1.4B+ in follow-on funding.

📆 Notice Board 📆 

🥪 For those in Melbourne this Wednesday, you’re welcome to join me for a free lunch (and learn) at the best co-working space in Melbourne, Sanders Place. We’ll be chatting about the start of this newsletter, my day job and my upcoming hike of Mt Kilimanjaro for Forever Projects!

• The lunch and learn will be very casual and more of a Q&A. If you’d like to attend, please reply to this email, and I’ll let the team know to add you to catering!

• From 12:30 PM to 11-15 Albert Street, Richmond. See you there! 👋 

Would you like to promote an event or an opportunity? Enquire about a Notice Board promotion here.

🧠 KaaS (Knowledge as a Service)

Will’s Pick 💁‍♂️  The Rule of 40: Balancing Growth and Profit by Ari Klinger

• The Rule of 40 is a performance benchmark used to evaluate the balance between revenue growth and profitability in SaaS and tech businesses. This blog post is a very digestible explainer. For the founder out there, this is one way you can think about growth vs profit and for the investors out there, one way to think about potential investments.

• The principle suggests that a company’s growth rate (%) plus profit margin (%) should equal or exceed 40%. For example:

  • 40% growth and 0% profit meet the rule

  • 20% growth and 20% profit also qualify

  • 50% growth and -10% profit still pass

• This metric helps investors assess whether a company is scaling sustainably. Businesses that meet or exceed the Rule of 40 are typically viewed as better investment opportunities, especially if their growth outweighs profits.

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‘Til next time,

👋 Will

🔨 Tool Box 🔧 

We’re often asked for recommendations for tools, agencies, and evening upskilling opportunities. We’ve contacted a few of our favourite tools and people and secured some discounts for you! Our community.