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. 🚀

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In OS news, this week we released the May edition of our separate monthly newsletter, Pulse Check (take a read!). It’s early days, but we think this is our best edition yet! Make sure you’ve subscribed to get the next one. ✉️ 👇️

👀 Headlines 👀 

🏦 The Victorian State Budget for 2025 was released with bated breath for the startup ecosystem.

• For a mini-article summary of the impacts for startups, head here. 

• In positive news, LaunchVic, an agency funded by the state to support the ecosystem with grants and programs, has received $40M to continue operations.

• Breakthrough Victoria, the state-run venture fund that has recently received scrutiny, saw its funding reduced by $90M a year for the next four years. The plan is to increase the investment profile from 10 to 15 years.

And the budget fun doesn’t end there… We’ll be keeping a close eye on this week’s incoming Federal Budget for any startup-relevant announcement too! Watch this space 👀 💰️.

🖋️ Submissions to the parliamentary inquiry into the wholesale investor test close next week, and only 5 submissions sent in so far.

• Recent polling conducted by DemosAU and M8 Ventures shows 53% of Australians favor replacing financial thresholds with educational courses on startup investing. 1087 respondents nationwide were polled between April 15 and May 1.

• The polling also suggested that only 35% support maintaining the current laws as the Albanese government proposes raising asset thresholds for wholesale investors to $4.5 million.

• 56% of respondents support reducing financial barriers for startup investors, with 52% advocating for the removal of all restrictions.

• If you’re looking to make a submission (it’s a single-page letter), there is a handy guide available here.

⚡️Startup Retro⚡️

AgriWebb farms $11M to manage livestock across the globe

Founders: Justin Webb, Kevin Baum and John Fargher

AgriWebb, a SaaS firm specialising in livestock management software, has successfully raised $11 million (USD $7.2 million) through a convertible note. The round was slightly oversubscribed and included new investor Minters Group with follow on investment from Germin8 Ventures, Grosvenor Food & AgTech, and Telus Ventures.

Founded in 2014 by Justin Webb, Kevin Baum and John Fargher, who are fifth-generation farmers, AgriWebb aims to use this funding as a to bridge to profitability. This investment round follows a $30 million Series B round led by Telus Ventures and a $10 million investment in 2022.

AgriWebb now manages over 23 million head of livestock across over 150 million acres in 18 countries, including major markets like Australia, the UK, the US, and Brazil. The software itself can map out an entire farm as well as track inventory like feed, livestock medicine and equipment.

The software is similar to an enterprise resource planning (ERP) tool because it allows farmers to understand their enterprise holistically. For example, a farmer can understand the current weight and projected weight of each animal in their enterprise which can help allocate extra feed resources. The platform then tracks the costs of feed, allowing investment into each herd to be better understood.

Due Diligence: AFR

OS Recommendation 📣 : For an entertaining (i.e. highly edited) insight into what it takes to manage the logistics of a farm, check out Jeremy Clarkson’s hit show, Clarkson’s Farm. Season 3 has just dropped!

Brainfish lands $3.85M Seed round for AI customer support suite of services

Founders: Daniel Kimber and Ajain Vivek Thankaswamy

Sydney-based Brainfish, an AI enabled suite of tools to revolutionise customer support, has secured $3.85 million AUD (USD $2.5M) in Seed funding to fuel its growth and international expansion.

This round, led by Peak XV Partners’ Surge, also saw participation from Macdoch Ventures, Black Sheep Capital, Justus Hammer (CEO of Mad Paws), and other angel investors from Australia and the US, bringing its total amount raised over 12 months to $5 million.

Founded in April 2023 by former SiteMinder product builders Daniel Kimber and Ajain Vivek Thankaswamy, Brainfish aims to streamline how product information is collated, maintained, and communicated, offering real-time resolutions to customer queries. The company, which has shown a remarkable 65% month-on-month growth since its market debut, currently supports over 300,000 users worldwide across various sectors, including prominent ASX-listed firms like Mad Paws and Airtasker.

The startup’s AI-driven platform not only enhances the accuracy and context of responses but also significantly reduces the time businesses spend on customer support. Brainfish’s proprietary AI search function combines a business's knowledge with a contextual understanding of the customer to deliver personalised answers instantaneously. With this technology, companies can efficiently handle large volumes of customer queries, to a high standard of quality.

Due Diligence: Brainfish Announcement

Kite Therapy raises $750K to offer affordable access to therapy services for children

Founders: Rachelle Dunstan, Matthew Morrison and Gregor Whyte

Melbourne-based startup Kite Therapy has raised $750,000 in a pre-Seed funding round led by Flying Fox Ventures with support from LaunchVic's Alice Anderson Fund. Kite Therapy aims to transform support for children with autism and developmental delays. The startup just wrapped up its participation in the Startmate accelerator program.

Co-founded by Rachelle Dunstan, Matthew Morrison, and Gregor Whyte, Kite Therapy targets children aged one to six, providing weekly telehealth consultations with therapist-coaches. The service focuses on enhancing communication, social, motor, and behavioural skills through tailored plans for each child.

An integral part of their offering is a parent-friendly app that facilitates ongoing communication with therapists and delivers personalised content modules. The product is available on NDIS plans and is focused on solving challenges faced by families, particularly in regional areas, where waitlists are long and therapy costs can surpass $200,000 annually.

The scarcity of allied health professionals exacerbates these issues, often leaving essential developmental windows unaddressed. Kite Therapy intends to use the newly secured funds to expand its team of therapists and reach more families. By providing timely, holistic, and affordable access to therapy services, Kite Therapy will ensure that children can develop to their fullest potential despite existing barriers in the healthcare system.

Due Diligence: Smart Company

Genero raises $5M to connect creative teams with film production professionals

Founders: Mick Entwisle and Andrew Lane

Melbourne-based creative technology platform Genero has successfully raised an additional $5 million, boosting its total investment to $15 million, in a funding round led by Acorn Capital. This capital injection is aimed at accelerating Genero's global expansion and enhancing its proprietary video production technology.

Founded in 2009 by university friends Mick Entwisle and Andrew Lane, Genero serves as a comprehensive platform that connects users with a network of film production professionals including directors, editors, and animators. It also simplifies the financial and legal complexities involved in video production.

The platform is highly regarded in the industry, with a client roster of 150 major brands and tech giants such as L’Oreal, Procter & Gamble, Google, and TikTok. Genero has also collaborated with top record labels on music videos for well-known artists like Alicia Keys and Muse.

While the broader media and marketing sectors face budget cuts and economic pressures, the demand for video content continues to surge, particularly on platforms like TikTok and Instagram where vertical video consumption is growing rapidly. This trend underscores Genero's strategic value proposition in the evolving digital advertising landscape. With 30% of its sales deriving from both the U.S. and Europe, Genero is strategically positioned in key global markets.

Due Diligence: AFR

Disco dances with $15M round to further develop AI tooling for music management

Founder: Karl Richter

Melbourne-based Disco has successfully raised $10 million USD ($15 million AUD) in a funding round aimed at enhancing music file management amidst the industry's pressing challenges. Led by Mushroom Group CEO Matt Gudinski, alongside investors from Richmond Hill Investment Co, Bridford Group, and notable individuals like Future Classic's Nathan McLay, Disco aims to improve operational efficiencies within the music sector.

Founded by Karl Richter of Level Two Music, Disco addresses the inefficiencies of traditional file-sharing systems like Dropbox and iTunes for handling extensive music collections. It has become the industry standard, boasting 300,000 monthly users and nearly 100 million files managed. Major clients include Amazon and Netflix, which rely on Disco for streamlined music selection and management to accomodate their films and TV shows.

The platform has now added a suite of AI-based tools that reduce labour-intensive workloads like tagging and discovery. This move towards AI has been part of Disco's strategy well before it became a mainstream focus, aiming to enhance feature sets in its platform and support its users' creative processes. Another feature of the platform is the auto-generation of instrumental versions of songs. Like Google Image Search, users can also upload music or search via a track for similar songs.

The platform charges with a SaaS model that increases as the number of songs increases, for catalogues of less than 250 tracks, users pay $10 a month, but up to $200 a month for over 20,000. The additional funds will be directed towards expanding Disco’s AI capabilities and its suite of services.

Due Diligence: Sydney Morning Herald

Hysata secures record-breaking $172M Series B for the development of Green Hydrogen

Founders: Gerry Swiegers, Paul Barrett and Tom Campey

Wollongong-based green hydrogen electrolyser startup Hysata has secured a record $172 million (US$111.3 million) in Series B funding, marking the largest clean tech raise in Australia to date. The Wollongong-based company, known for its advanced electrolyser technology, attracted a co-led investment from bp Ventures arm and Templewater, an Investec-affiliated alternative investment firm based in Hong Kong, both invested USD $10M. The round also saw participation from previous investors, such as IP Group Australia, and new stakeholders, including POSCO Holdings and the Oman Investment Authority.

Hysata, founded in 2021 by Dr. Paul Barrett, Gerry Swiegers, and Tom Campey, has developed an electrolyser that is 20% more efficient than current models. This breakthrough technology facilitates a quicker and more cost-effective transition to renewable energy sources and has broad applications across various industries, including steel, chemicals, and transport.

To go deeper into the tech, Hysata's breakthrough electrolysis technology features an ultra-low resistance separator and bubble-free operation, drastically enhancing energy efficiency and significantly reducing electricity usage and associated costs in green hydrogen production. This efficiency leap not only lowers overall production costs but also simplifies operational demands, accelerating the adoption of green hydrogen in sectors traditionally difficult to decarbonise.

The Series B funding will be directed towards expanding production capacity in Wollongong and scaling the business to gigawatt manufacturing. Hysata plans to increase its workforce from 75 to 200 employees over the next couple of years.

Due Diligence: AFR, Startup Daily, Capital Brief

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

🤑 Aussie Raisins 🤑

⛑️ Headsafe a compact concussion assessment tool that looks like a pair of Apple Vision Pro sets is on the hunt for $5 million to expand it’s NuroCHEK device into the U.S. market.

• The NuroCHEK device, which has been cleared by the FDA, assesses concussion by stimulating the brain’s electrical responses through lights flashed into the patient's eyes, delivering results within two minutes.

• The device has been in development for 7 years and has finished 8 clinical trials in the US, Australia and New Zealand.

• The current cap table includes the likes of Slingshot Investments, angel investor Proto Investment Partners and Investible.

🔍️ Accelerator Watch 🔎 

The Melbourne Accelerator Program (MAP) launched its 2024 accelerator (and boy, did they launch it, with a sold out audience!) this week. Each startup gets $20K in equity-free funding, office space for a year and access to mentorship. Check out the awesome startups that are in the program below. 👇️ 

After - Pioneering a circular economy by recovering, recycling and recirculating unwearable textiles back into the industry.

Care Plan 365 - Making it easier for providers to effectively treat ADHD through collaborative care.

Dark Patterns Lab - Leverages AI to perform dark pattern audits for consumer-facing businesses 1000x faster than manual audits.

Flowing Bee - Using customer and behavioural insights to optimise marketing strategy, execution and measurement.

Mark My Words - Reducing teacher workload, improving feedback quality, and ensuring no student is left behind.

Minikai - Helping to simplify the use of AI for healthcare administrators and people living with disabilities.

Newsit - Unleashing the digital potential of TV news using artificial intelligence and machine learning techniques.

Nexa Robotics - Empowering people with ADHD symptoms through a robotic desk companion named STU.

Skedyul - Empowering service-based businesses seamlessly.

Subbix - Enabling builders to stay compliant and on budget by centralising product information across construction projects.

🥳️ Wins 🥳

📚 InnerSteps, a mobile app that uses artificial intelligence to create personalised, evidence-based stories for children aged 5-12 with mental health challenges, has been awarded a $50,000 NSW Ventures MVP Grant.

• The platform aims to make mental health support universally accessible, stigma-free, and engaging for children worldwide by delivering captivating content tailored to the specific mental health needs of each child, promoting better mental wellness through storytelling.

📌 Notice Board 📌 

🎤 Pitch Opps | 🚀 Accelerator |💰 Competition/Grant | 📅 Event | 🎓️ Course

🎓️ Atlassian Univeristy has made all their learning paths free for anyone!

• The learning paths include education on Jira, Confluence, or Jira Service Management from Atlassian University. The change follows Scott Farquhar leaving the business after 23 years. Who knows, maybe Scott was the bottleneck to free Jira education? 🙈😜 

🎤🎓️ Alan Jones is kicking off a Pitch Club to help train founders to become better at pitching their startup 📍 Sydney, 3rd June

• The first session is significantly discounted, and spots are very limited.

• Alan is a respected stalwart of the startup ecosystem as an investor and adviser (amongst other things!). He’s been a mentor for Startmate founders since its inception in 2010.

📅 Climate Tech Showcase 2024, hosted by Climate Salad 📍 Melbourne, 4th June

• Hosted by Climate Salad and the City of Melbourne, this event offers a unique opportunity to engage with startup solutions, government representatives, investors, and industry leaders in the climate tech ecosystem. Keynote speaker includes Eytan Lenko, the founder of Boundless. Grab a ticket here and use code “OVERNIGHT” for 20% off.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♂️ Immersing yourself into the Australian startup ecosystem, by Solai Valliapan

• The Aussie startup ecosystem can be a bit of a bubble at times, with ‘outsiders’ often feeling unsure of how to break in to this tight-knit community. I know this first hand because not all that long ago I was the outsider, and now (thanks to my work on OS!) I field regular messages from ‘startup curious’ folk wondering how they can get involved too.

• Solai Valliapan (GP @ Scale Investors) has pulled together this great resource of her go-to resources she sends those who ask her about getting involved in Aussie startups - share it, suggest additions and bookmark for future reference!

Will’s Pick 💁‍♂️  Testing Commitment by Christie Jenkins

• I loved this article by Christie about how she helps people who ask for help by often not helping them. That synopsis ruins the article's essence, but I think you’ll get my point. Christie lists a few scenarios where she’s been asked for something, and before saying a yes or no, she probably got a better result for both parties with a commitment test.

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‘Til next time,

👋 Will & Gem