G’day and welcome to this week’s edition of Overnight Success! Your weekly download on all the important things that happened in the Aussie startup ecosystem. 🇦🇺 🚀 

A very special welcome to the 42 new subscribers who joined us this week. It’s great to have you here!

The August edition of Pulse Check is out now! 💗 

Our monthly newsletter, collated with the help of some of the Aussie startup ecosystem’s most interesting subject-matter experts and networkers. Check it out! 👇️ 

👀 Headlines 👀 

💰 OneVentures announces raise of 7th fund, aiming for $200M under management. (AFR)

• The Sydney-based venture fund has been active since 2010 and is now ready to launch its seventh fund. This is the first fund that will target superannuation capital as limited partners.

• This raise follows a streak of commentary that the funding environment is challenging for both startups and venture capital. Hostplus, one of the most active super funds in the startup ecosystem said it will continue to invest in venture capital but focus on a smaller number of venture funds.

  • Hostplus currently backs funds like Blackbird, Artesian, Square Peg Capital, Airtree Ventures, Carthona Capital, Brandon Capital, Main Sequence Ventures, Titanium Ventures and occasionally makes direct investments in startups. 

• The ability for venture funds to secure capital commitments often relies on the performance of previous investments. The first fund, Fund I, closed earlier in 2024, with a 10x multiple for OneVentures’ private investors.

• Fund II has an impressive current multiple of 5x, including a 13x return on the investment in Employment Hero at the end of 2023, which returned 1.5x the fund.

🛍️ Hivery, the AI-powered retail shelf optimisation startup, has been marked down to zero by investors Blackbird and Tiger Global.

• Hivery took on $30M USD from Tiger in 2022 and more recently took on $3.8 million in April this year. 

• The startup is transitioning to a SaaS model, which will be heavily reliant on AI and data. 

🚀 Victoria will see eight new venture funds following LaunchVic support (Startup Daily)

The funds are a mix between existing interstate VCs setting up a Victorian presence or local angel and other ecosystem players starting funds. 

• Australian Medical Angels, 'led by Dr Amandeep Hansra and Dr Bi Mian, will focus on investing in early-stage healthcare startups from pre-Seed to Series A.

• Ecotone Partners led by Nicole Kleid-Small and Amanda Goodman, will launch a fund focusing on investing in early-stage climate tech startups via both equity and debt.

• Era Ventures will focus on investing in early-stage transformative startups in the consumer products and associated technology ecosystem.

• Flying Fox Ventures, led by Rachael Neumann and Kylie Frazer, will invest across different stages and sectors.

• Mandalay Ventures will invest in high-potential Australian agrifood technology ventures across Seed to Series A.

• Pacific Channel (NZ-based) will create and invest into deep-tech pre-Seed and early stage companies within the future of food, health and the environment in Victoria. (Full article here)

• SBE Australia, led by Kerri Lee Sinclair and Nicole Cook, will focus on investing in women-led startups.

• Synthesis Capital Management, a spin-out of the MedTech Actuator, will focus on investing in early stage, deep tech medical, health and wellbeing-related ventures, from pre-Seed to series A+.

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⚡️ Startup Retro ⚡️

Rich Data Co raises $37M Series B for AI-powered credit assessment technology

Founders: Ada Guan, Charles Guan, Gordon Campbell and Michael Coome

Sydney-based fintech Rich Data Co has completed a $37m Series B capital raise, securing $9m from Acorn Capital to bolster its AI-driven credit assessment technology. The raise, initiated by Westpac and nCino with a $28 million contribution, will fuel the company’s expansion into the US market, where it has already partnered with M&T Bank.

Rich Data Co, co-founded 2016, aims to revolutionise business lending by offering a dynamic, continuous view of a borrower’s financial health, contrasting traditional static assessments. AI technology provides a more accurate and holistic view of a business's performance, aiding banks in regulatory compliance and more informed lending decisions. For example, the Early Warnings solution can help businesses and commercial lenders proactively support customers exhibiting early signs of credit risk deterioration. The business partners with universities across Australia for research, including UNSW, University of Sydney and UTS. 

The Series B investment marks a significant milestone, recognising Rich Data Co as a leader in commercialising AI within financial services. Despite challenges in the funding process, the company is set to regain its international momentum post-Covid-19, with plans to expand further into the US, New Zealand, and Asia-Pacific markets while maintaining its base operations in Australia.

Due Diligence: The Australian 

Splend secures $20M for EV fleet subscription for rideshare drivers

Founder: Chris King  

Sydney-based Splend has secured $20 million from the Albanese government’s Clean Energy Finance Corporation (CEFC) to expand its electric vehicle (EV) fleet for rideshare and delivery drivers. In 2022, the company secured $150M in funding from the UK-based Pollen Street Capital. 

Founded in 2015, Splend provides resources and community services for on-demand drivers. In short, Splend provides all-inclusive vehicle subscriptions to rideshare drivers. The new funding will help Splend increase its EV portfolio to 2,000 by the end of 2024, leveraging the growing demand for sustainable transport options such as Uber’s Green service.

The company has received a total of $40 million from the CEFC since June last year, enabling it to quadruple its EV offerings. Splend's rent-to-own and rental services target rideshare drivers for platforms like Uber and Didi, with rental prices starting at $389 per week. 

With an ambitious goal of transitioning 15,000 additional rideshare vehicles to EVs over the next five years, Splend's expansion is set to significantly cut emissions, estimating a reduction of over 15,000 tonnes annually.

Due Diligence: The Australian, Company Announcement

Noveco Surfaces enters a new stone age with $7.75M of debt for a patented tiling solution that uses recycled glass

CEO: Ryan Fritsch 

Noveco Surfaces, a Nowra-based startup, has secured $7.75 million in debt funding from NAB to expand its production of high-end recycled glass tiles. Using technology developed by the University of New South Wales, Noveco manufactures tiles from 80% recycled glass, mainly sourced from residential recycling bins. 

The company’s innovative process allows different types of glass to be combined, overcoming a common recycling challenge. Noveco's design team creates custom-coloured and patterned tiles, making its products versatile for various applications including floor tiles, kitchen benchtops and wall tiles. 

The funding will help significantly boost production capacity from 20,000 to 250,000 square metres annually by year-end. With economies of scale, production costs will be reduced enough to make Noveco's tiles competitive with ceramic options. The tiles, which can be handled similarly to ceramic tiles but are best cut with wet-saw or water jet methods to reduce dust, have passed rigorous air quality tests. Recently, the Victorian Government banned the sale of engineered stone to protect workers from the devastating lung disease silicosis.

Noveco's market appeal is expanding beyond eco-conscious consumers as prices drop. The company also plans to partner with demolition businesses to recycle glass from old buildings for new construction projects.

Due Diligence: The Australian 

Graceview raises $1.5M Seed for AI platform focused on compliance

Founders: Simon Quirk, Jules Ioannidis and Dan Hunter 

Melbourne-based AI compliance startup Graceview has secured $1.5 million in a Seed round, with contributions from Patrick Linton and a consortium of unnamed tech founders. Founded in 2023 by lawyers and a computer scientist frustrated with existing compliance solutions, Graceview leverages AI, machine learning, and data analytics to provide real-time insights into compliance threats and opportunities.

The new funding will be used to enhance the platform and expand sales and marketing efforts both in Australia and globally. The platform focuses on making regulatory compliance effortless through advanced technology, complemented by human oversight where necessary. The platform targets customers like financial fund managers, insurers, financial advisors, and companies that focus on ESG compliance. 

Graceview’s platform offers granular coverage, monitoring even obscure obligations with a combination of generative AI and lawyer reviews. It checks regulations every 30 minutes and automatically updates registers of obligations. 

Having recently won an iAward in the startup category under its former name, Gracenote, Graceview plans to expand its presence in Europe and Asia over the next year. Currently, with 11 employees, the startup is looking to hire additional tech and sales staff, aiming for fully automatic compliance solutions in the future.

Due Diligence: Smart Company

Eyeonic eye’s up $2.6M Seed round for glaucoma screening testing technology

Founder: Simon Skalicky

Melbourne-based AI startup Eyeonic has raised $2.6 million in an oversubscribed Seed round to advance its home glaucoma testing technology. Founded by Associate Professor Simon Skalicky, Eyeonic aims to revolutionise glaucoma screening by enabling online visual tests on laptops and tablets, bypassing the need for specialised equipment.

Glaucoma, a leading cause of irreversible blindness, often goes undetected, especially in underserved regions. Eyeonic's AI-driven technology promises early detection, enhancing accessibility and affordability of diagnostic tests. Skalicky, an ophthalmologist, emphasises the importance of early detection, noting that 50% of glaucoma cases in Australia are undetected.

The Seed round, led by Martin Goodrich in collaboration with Haines Consulting Group and Kirschner Private Wealth, was catalysed by Eyeonic's win at SmartCompany's The Pitch event. Martin helped put together the cohort of investors in the round. The funds will bolster Eyeonic's global expansion, particularly in India, Vietnam, and other parts of Asia, complementing its existing presence in Africa.

Since its launch, Eyeonic's technology has been adopted in 18 countries, conducting over 5,000 tests. The startup’s mission is to provide accessible, reliable glaucoma screening worldwide, leveraging advanced AI and innovative design to redefine medical diagnostics. The fresh capital will accelerate Eyeonic's growth, technology enhancement, and international reach.

Due Diligence: Smart Company 

Morfless raises $2.6M pre-seed to reduce costs of cloud computing 

Founders: Ian Corbally and Domagoj Filipovic

Morfless, an AI-powered startup, has raised $2.6 million in a pre-Seed round led by Antler Australia. Founded in August 2023 by Ian Corbally (CEO) and Domagoj Filipovic (CTO), Morfless aims to tackle the growing challenge of cloud cost management. The global cloud computing market projected to hit $1.44 trillion by 2029, providing fertile ground for the company’s growth plans.

Morfless’s platform utilises advanced machine learning algorithms to automate and optimise cloud spend, helping businesses reduce unnecessary costs and improve efficiency. Their autonomous financial operations agents provide insights through cloud intelligence dashboards, usage optimisation, and waste detection, enabling companies to manage their cloud infrastructure more effectively.

The funds will be used to expand sales, increase marketing, and enhance product development. Morfless has already gained traction in Australia and New Zealand, with notable clients, including Digivizer, CryptoTax Calculator, and Mad Mex, all who have reported substantial savings.

Due Diligence: Startup Daily

Funding the Balance | Weekly Edition

*Note: We’ve chosen not to include Noveco Surfaces in the above data due to the raise being 100% debt funding.

Want to learn more about why we’re reporting these figures? Read about the ‘Funding the Balance’ initiative here.

🥳️ Accelerator News🥳

⭐ Startmate Winter 24 cohort has been announced!

Here’s a look at the 11 startups taking on the 12-week program:

Borne: Australia’s first mother-centric postpartum hotel and wellness platform, ensuring every mother’s health is well-supported, deeply understood, and expertly navigated following childbirth.

• Location: Sydney, Australia | Founder: Avalon Nethery

Bugster: Automatically tests software products using AI, catching bugs before your users do, with 80% faster end-to-end tests.

• Location: Sydney, Australia | Founders: Facundo Lopez Scala, Ignacio Solorzano, Bautista Roberts

Fairgo.AI: AI-powered live video interview platform that cuts hiring time by 50%, eliminates bias, and provides in-depth insights for efficient hiring decisions.

• Location: Melbourne, Australia | Founder: Julian Bright

Hurtec: Enhances firefighting safety and efficiency through automated software, powerful electric pumps, and data-driven decisions.

• Location: Nerang, Queensland | Founders: Justin Hurcom, Jeffery Summers, Andrew Newton

NE Tech: Develops food oil extraction technology producing additive-free oils 85% cheaper, using cutting-edge green technology.

• Location: Christchurch, New Zealand | Founder: Ron Park

PREVE: AI-assisted physio membership platform improving patient treatment programs and clinic revenue through automation and personalised care.

• Location: Byron Bay, Australia | Founders: Adam Beaupeurt, Caelum Trott

Recant.ai: Technology intercepting abusive messages on social media, combating online harassment by holding perpetrators accountable.

• Location: Perth, Australia | Founders: Cam McMaster, Martin Kemka, Chris McLoghlin

Tendl: Simplifies responding to tenders and grants by deep-diving into documents to help organisations pursue more opportunities and reduce submission stress.

• Location: Toowoomba, Queensland, Australia | Founder: Laurie Nicol

TOTEX: Sustainable heating, cooling, and hot water system that halves energy costs and emissions, integrating with solar panels and the dynamic energy grid.

• Location: Melbourne, Australia | Founders: Berlin Raj, Bosco Raj, Mailys Baerg

Trova: Enables rapid global expansion for digital health companies, reducing costs and complexity while ensuring compliance across borders.

• Location: Melbourne, Australia | Founders: Dana Allison, Dr. Truida Botha, Balaji Varanasi

Zello: Reinvents the fitting room experience by using real-time data to enhance shopper experience and improve retailers' decision-making.

• Location: Melbourne, Australia | Founders: Olyvia Munro, Sakina Aliasger

⭐ Remarkable announce its Global Cohort, including Australian startups like…

CareWindow: A video calling device with inbuilt Wi-Fi and 4G for ease of use. 

• Location: South Australia | Founders: Zachary Bailey and Fiona Symons

Peak Medical: A digital arthritis rehabilitation tool to help manage all stages of osteoarthritis

• Location: Sydney, Australia | Founder: Hayley Saddington

SpendAble: A money-handling solution for participants and providers on the NDIS creating accessible finance tools.

• Location: Melbourne | CEO: Reece Miller 

🎉 Wins 🎉 

🍐 Bae Juice secures deal with Coles Express

• Melbourne-based startup Bae Juice, which produces a ‘hangover-prevention’ beverage made from Korean pear juice, has struck a distribution deal with Coles Express that will make the product available across 680 outlets around Australia.

🪱 Goterra a strikes deal with Hyatt

• The Canberra-based sustainability technology scale-up sells modular waste management systems that use insects to process food and organic waste, converting it to sustainable protein and fertiliser.

• This new deal will involve the implementation of Goterra’s food waste management system at the Hyatt Regency Sydney, to more sustainably manage the waste from its 878 rooms and 4,000sqm of meeting and event spaces that can house up to 1,000 guests.

📣 Notice Board 📣 

🚀 Overnight Success is co-hosting a meet-up & panel in Melbourne!

Click on the image below to find out more & register 👇️ Free to attend but spots are already being snapped up, so get in fast!

🎙️ The Startup Playbook by Rohit Bhargava is celebrating their 8-year anniversary and is hosting a live episode of the show with Leigh Jasper

• The pod is hosted in Collingwood on the 13th of August. Register here!

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♀️ How I Built Dis, The Imperfects Podcast (from The Resilience Project)

• This is easily my favourite podcast. Hosted by the founder of The Resilience Project, Hugh van Cuylenburg, his brother Josh and comedian Ryan Shelton, the show usually includes interviews with well known Australians about the ups and downs of their life and how they’ve navigated them, as well as conversations with psychology and mental wellbeing experts from around the world.

• This episode is a little different to their usually programming - inspired by well-known podcast “How I Built This”, which interviews founders about their company-building journey, Hugh speaks in detail about the history of his business, The Resilience Project, and reveals just how long it took to be “successful”. It certainly shows that there’s no such thing as an Overnight Success..! 😉 

Will’s Pick 💁‍♂️ Capital Chronicles by Joshua Boccomazzo

• This newsletter is like KaaS on steroids, each week, Josh shares three articles on venture building, venture investing and upskilling. Each article has a neat explainer on why it’s valuable and why you should read it!

Have we missed something? Got some feedback? We love emails, so send one over!

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‘Til next time,

👋 Will & Gem