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 33 new subscribers who joined us this week. It’s great to have you here!

👀 Headlines 👀 

🏧 Cut Through Q2 2024 report is out; here are the big takeaways:

• 99 deals were reported in Q2, with $1.5B invested.

• More than half of that $1.5B went to 6 large deals.

• Female founder's participation at the pre-Seed and Seed stages was strong, but the total capital invested was dismal. 

• Stay tuned for an interview with Chris from Cut Through Ventures on Monday morning on our podcast (The Startup Retro), during which we will discuss the report in depth and tell the story of how it got started. 

💃 Girls in Tech closes its doors, but the Australian outpost rises like a phoenix as Her Tech Circle

• The newly-branded organisation already has a range of upcoming events scheduled - check them out here.

🌄 Confusion over the Australian Government's choice not to scale up association with EU innovation program Horizon Europe

• Horizon Europe is the EU’s main funding program for research and innovation, with a budget of €95.5 billion for 2021-2027.

• Canada recently signed an agreement to scale-up it’s involvement in the program, becoming an ‘associate country’, prompting some voices in the innovation ecosystem to ask why the Australian Government is not following suit, despite neighbouring countries like Japan and Singapore looking likely to do so.

• This will leave Australia unable to lead projects under the program, or to be able to guarantee funding.

👼 AngelClass launches with with app to allow anyone with $10K or more to invest in startups (without being “sophisticated”!)

• AngelClass takes advantage of the 20/12 rule, allowing 20 non-sophisticated investors to invest in a startup business every 12 months.

🌱 Hundreds of ClimateTech startups on the brink of collapse

• Climate Salad co-founder Mick Liubinskas warned that more than one-sixth of the 600 companies in the group need to raise capital just to survive the year.

  • According to Cut Through Q2, ClimateTech is still the 6th sector VC investors are excited about. 

• It’s worth noting that there are large concerns about the rise in energy needs and emissions that AI generates so we’re hoping these ClimateTech startups get their funding!

🤔 Who is Damian Kassabji, the new CEO of the Tech Council of Australia?

• He’s got some solid experience; Damian has experience in SaaS startups and enterprises like Afterpay, Block, Uber, and Google 

• Damian also has experience in the offices of Kevin Rudd and Julia Gillard (when they were PMs). We’re excited to see what he does with the Tech Council!

 ⚡️ Startup Retro ⚡️

JigSpace secures $13M for AR app for Apple Vision Pros

Founders: Zac Duff and Numa Bertron

Breakthrough Victoria is injecting $4.4 million into Melbourne-based augmented reality (AR) startup JigSpace, leading a $13 million funding round alongside Aura Ventures and Anorak Ventures, with continued support from Rampersand, Investible, Vulpes, and angel investor Hugh Bickerstaff.

JigSpace, known for transforming CAD models into 3D presentations or "Jigs" for training, sales, and marketing, aims to democratise 3D visualisation. The company expects to create up to 40 jobs by 2028 and employ 80 staff by 2030, including roles in technology, product development, and leadership.

The global AR market, particularly in durable manufacturing valued at USD $1.5 trillion, is projected to grow significantly. JigSpace, featured in four Apple keynotes, including Vision Pro, and pre-installed on iPads and Vision Pro at Apple stores worldwide, underscores its leadership in the AR industry. The app has surpassed 50,000 downloads.

The company was recently mentioned in an interview with Apple CEO, Tim Cook, who said: “Are you familiar with JigSpace? I'm sure you are. They’re doing some incredible work." Watch it here.

Due Diligence: Startup Daily, Breakthrough Victoria Press Release 

KC8 Capture Technologies lands $10M for Carbon Capture 

Founder: Barry Hooper

KC8 Capture Technologies, a Perth-based carbon capture hardware technology, has raised $10 million in a funding round backed by Woodside Energy and Cemex Ventures. Founded in 2021, KC8’s technology captures up to 95% of CO2 emissions from heavy industrial sources, including cement, steel, power generation, and chemical production, at a capital cost up to 50% lower than traditional amine-based solutions and with improved energy efficiency of up to 15%.

The raise follows a partnership with Cement Australia to build a commercial demonstration plant in Gladstone, Queensland, capable of capturing 15 tonnes per day (TPD) of CO2. In the US, KC8 is developing a pilot plant at the US Department of Energy’s National Carbon Capture Center to capture 10-15 TPD of CO2 from natural gas combustion flue gas.

The strategic partnership with Cemex is for a front-end engineering design (FEED) study at one of its cement plants, aiming to capture over 100 TPD. KC8’s proprietary non-toxic solvent, derived from naturally occurring materials, offers a cost-effective solution for treating low-pressure, high-volume exhaust gases, aiding industries in meeting net-zero targets.

KC8 plans to use the new funding to expand its team, fast-track commercialisation, and deploy its technology across key projects.

Due Diligence: Capital Brief

Fugu Carbon finds $1.67M for carbon dioxide removal platform

Founder: Mac Thompson and Luke Marshall

Sydney-based Fugu Carbon has announced a $1.67 million Seed funding round led by Investible, with participation from Jelix Ventures, Electrifi Ventures, and London-based Counteract. Founded by Mac Thompson and Luke Marshall, both formerly of Sun Cable, Fugu is developing cost-effective and energy-efficient solid direct air capture (S-DAC) systems.

Fugu’s scalable prototype uses affordable components and abundant adsorbents for cost-effective mass production. It uses the low-cost adsorbent Zeolite 13X, to pull CO2 from the atmosphere. 

The new capital will enable Fugu to expand their team, scale up their units, and sell CO2 to their first customer in Sydney. Operating from their Glebe-based R&D facility, Fugu plans to manufacture thousands of machines to capture millions of tonnes of CO2 by the decade’s end.

Fugu aims to produce 2,000 machines annually per manufacturing facility, targeting a gigatonne of CO2 extraction by 2032. Fugu Carbon is aiming to raise a Series A later this year.

Due Diligence: Startup Daily, Investible Investment Notes

Sircel secures $5M for obsolete solar panel recycling system 

CEO: Anthony Karam

Sydney-based e-waste recycler Sircel has secured a $5 million investment from Kilara Capital to pioneer new recycling options for obsolete solar panels. The investment focuses on capturing Australia’s high per capita e-waste, initially focusing on the recycling potential for defunct solar panels nearing the end of their lifespan. Historically, many of these panels ended up in landfills or were sent overseas for recycling.

Sircel is setting up an automated solar panel recycling facility at the Parkes Recycling Special Activation Precinct in NSW, utilising machinery initially commissioned by Scipher Technologies, which Sircel acquired in early 2024. This facility aims to recycle a significant volume of solar panels domestically.

The process includes collection and triage, where e-waste is received and either repurposed and resold or sent to processing. At processing, the main components are broken down into smaller chunks to help separate individual commodities. Finally, precious metals pass through a hydrometallurgy process, which is basically a salt bath to recover metal from a solution.

As part of the investment deal, Kilara Capital's portfolio manager, Irina McCreadie, will join Sircel’s board, marking a significant step in the company’s national expansion and e-waste management initiatives.

Due Diligence: AFR, Smart Company

EVOS snags $4M of a $10M Series B for EV fleet energy management and charging 

Founders: Marcelo Salgado, Seshan Weeratunga & Chris Crossman

Brisbane-based EV charger startup EVOS has secured $4 million from existing investors as part of a planned $10 million Series B round. Founded in 2020 by Marcelo Salgado, Seshan Weeratunga, and Chris Crossman, EVOS focuses on fleet energy management and AC charging, providing solutions for home and workplace use. The company had previously raised $5 million in a Series A round and $1.7 million in a Seed round.

EVOS, which emerged from the troubled fast charger manufacturer Tritium, plans to use the new funds to expand its manufacturing capabilities and bolster its sales and marketing teams. The funding follows the rising demand for EV charging at home, with EV sales up over 30% compared to the previous year. Key products include the Fleet Home 22 AC charger and an energy management platform optimising charging times to reduce costs.

EVOS has also entered the Indian and Southeast Asian markets with the support of Trade and Investment Queensland's Go Global Export Program. The company recently launched its Fleet Platform for EV-ready business sites and hired a regional head of sales to boost international sales. The capital raise aims to meet the growing demand for zero-emissions vehicles in Australia and abroad.

Due Diligence: Startup Daily

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

🤑 New Funds, Who’s This? 🤑 

☀️ Co Ventures raises new funds from Dom Pym’s Euphemia fund and syndicate on Aussie Angels 

• The single GP fund is led by Maxine Minter, who straddles the US and Australian VC ecosystem. 

• The original allocation of $200K was oversubscribed by 279.5%, with the total raised by the syndicate to $559K.

• A few interesting stats:

  • Women LPs: 23%

  • Contribution from Women LPs: 25% of total investment

  • Women investor cheques were on average 11% higher than their male counterparts.

🔫 Defence Department opens an EOI for VC partners to support small and emerging defence businesses (Innovation Aus)

• The Defence Department is examining whether private investors would be interested in partnering with ‘dual-use’ companies.

• VCs have been asked for feedback on the proposed $100-200 million joint fund.

• This follows Steve Baxter seeking to raise $60M from ‘patriotic’ investors to back defence startups but getting resistance.

• In other news, defence startups are being given a 3-minute opportunity to win over Defence officials in a pitch session set up by the Advanced Strategic Capabilities Accelerator. Express interest here.

🥳️ Wins 🥳

🚁 AMSL Aero pens partnership to see first hydrogen aviation fuel port offering

• Sydney's Bankstown Airport has become the first in the Southern Hemisphere to offer hydrogen aviation fuel, supporting AMSL Aero's eVTOL aircraft, Vertiia, to extend its range to 1,000 km.

⚽ The Australian Sports Technologies Network (ASTN) released the 2024 'Women in Sports Innovation' report, highlighting over 100 female leaders in sports innovation, aiming to inspire future women leaders in the sector.

⚕️Swoop Aero gets 7 News coverage for delivering urgent medical products via drones.

🏴󠁧󠁢󠁥󠁮󠁧󠁿 Splose, the AI practice management software for Allied Health professionals, is heading to the UK!

🩺 HealthTech-focused newsletter, What the Health, hits 8,000 subscribers.

🤑 Aussie Rasins 🤑 

📈 Grow Inc, backed by ASX and AirTree, is raising a $60 million Series D with Highbury Partners and King & Wood Mallesons to scale operations and integrate new clients, including HESTA, Australian Ethical, and NGS Super. (AFR)

• Grow Inc provides advanced technology and services solutions for superannuation funds and managed funds, utilising distributed ledger technology to enhance security, streamline operations, and improve user experiences for both administrators and members.

• Japanese VC Hitachi Ventures is set to lead the round, with existing backers ASX, Citigroup, AirTree, and Five V Capital supporting. The raise aims to enhance Grow Inc's DLTA platform and secure long-term profitability.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♀️ Calling Operator Podcast (featuring a new host! 👀 )

• Operators (in my opinion) are the unsung heroes of the startup ecosystem. Founders can’t live without great operators and this podcast does a great job of highlighting just how pivotal these key team members can be in a startup’s success, and uncovers the stories behind what makes them who they are.

• Founder of the pod, Paloma Newton, who has hosted 26 episodes over the last 2 years, is handing over the reins to a new host, Laura Nicol, who is Chief of Staff to Maxine Minter at Co Ventures and Co Lab. I listened to the handover episode this week where Laura is introduced and interviewed, and I’m convinced this series is going to continue to be a fantastic resource for the ecosystem. Take a listen here.

Will’s Pick 💁‍♂️  Pop Culture by Edward Zitron

• This is a counterpoint to the hype that’s currently surrounding AI. It is really well-researched and quite compelling. The thrust of the argument focuses on Gen AI being able to solve easy problems but struggling to graduate to solve hard problems.

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‘Til next time,

👋 Will & Gem