💌 Aussie Startup & VC Summary | 12th April, 2025

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

This week, we have three new venture funds entering Australia, a monster $127M Series D in CleanTech announced, and Canva Create 2025 hosted in a Los Angeles stadium. Plus, my KaaS of the week is the best quantum explainer for Australia for simpletons like me. Worth a read!

Some quick housekeeping!

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👀 Headlines 👀 

🦈 StrongRoom AI has ten buyers circling the troubled startup amid fraud claims (AFR, Capital Brief)

• Collapsed pharma software startup StrongRoom AI has attracted interest from ten prospective buyers, even as it's embroiled in legal action and layoffs.

• To quickly recap, major backer EVP accused founders Max Mito and Christopher Durre of fraud, alleging the company was losing $800K/month despite claiming 200% YoY growth and $8M ARR, just weeks after investing $10M into the company. (Capital Brief)

• The business is now under the control of administrator HLB Mann Judd, who has confirmed 50% of staff were let go to stem losses. EVP’s court action froze assets, leaving employees unpaid and payouts delayed.

• StrongRoom reportedly spent $1.25M in March and has under $1M in cash, despite raising $17M in February. Over half its $14M in listed assets are tied to a $7.5M stake in Members Benefits Australia. 

✂️ Dutton eyes cutting the $15B National Reconstruction Fund (AFR, Innovation Aus)

• A Dutton-led government would divert Labor’s $15B National Reconstruction Fund (NRF)'s unspent allocation to pay down debt and fund regional infrastructure. While existing NRF investments in mining, quantum, AI health, and renewables would be honoured, the fund would cease backing new projects under the Coalition.

• Previous investments include Harrison.AI ($32M), Quantum Brilliance ($13M), Myriota ($25M) and Vault Cloud ($22.5M). 

• Two new initiatives are being proposed. These are the Regional Australia Future Fund (RAFF) and the Future Generations Fund, which will be funded by windfall tax revenues from resource booms rather than through debt.

• Dutton also plans to axe the $20B Rewiring the Nation Fund and the Future Made in Australia tax credits for green hydrogen and critical minerals.

🎨📊 Canva hosts “Canva Create 2025” and doubles down on AI, releases Excel competitor and hits $3B USD revenue 🤯 (TechCrunch, AFR)

• At the SoFi Stadium in Los Angeles, Canva released AI-powered features, including Canva AI Assistant, Canva Code (for app creation), AI-enhanced photo editing tools, and spreadsheet platform Canva Sheets.

• In partnership with Anthropic, users can prompt the assistant to generate images, write copy, suggest designs, or even build interactive apps (like calculators and maps) via Canva Code.

• To further target enterprises, Canva’s new spreadsheet product features ‘Magic Insights’ (data analysis) and' Magic Charts' (auto-generated branded graphs) with better collaborate table construction. These also integration directly with HubSpot, Google Analytics, and Statista.

• You can watch the keynote here! 

🤖 A16z announces massive $20B USD fund to invest in US-baked artificial intelligence companies (Reuters)

• The fund is being marketed as a way for International LPs to invest more easily in American AI companies without restrictions.

• If successfully raised, the new megafund would be surpassed only by SoftBank's two Vision funds, which were an experiment of deploying unprecedented amounts of capital into the tech sector that have yielded mixed results. 

• A16z's largest fund to date is a $5 billion growth-stage fund it raised as part of a $9 billion fundraise it announced in early 2022.

• For anyone wondering, a 2% management fee on this fund would be 400,000,000M USD a year. Not bad!!

📍 Google Cloud to "swarm" early-stage startups across Australia and APAC. (SmartCompany)

• After acknowledging a “late” start, Google Cloud is aggressively expanding its startup ecosystem efforts in Australia and Asia-Pacific, aiming to win over early-stage founders before they commit to competitors like AWS.

• Plans include hiring locally, deepening relationships with incubators and accelerators, and offering hands-on engineering support, not just credits, to help startups make better early technical decisions.

⚡️ Startup Retro ⚡️

Hola Health raises $10M Series A to expand its on-demand telehealth platform

Founders: Lenin Rajendran, Thiru Rajendran and Dr Vishnu Gopalan

Perth-based telehealth startup Hola Health has closed a $10 million Series A round to accelerate growth. Healthylife, a wholly owned subsidiary of Woolworths Group, led the latest $6 million extension. The fresh capital tops up a $4.5 million raise from 2024 and brings on board a strategic partner aiming to deepen digital healthcare access for Australians.

Founded by brothers Lenin and Thiru Rajendran and Dr Vishnu Gopalan, Hola Health (formerly Packapill) has positioned itself as a go-to platform for on-demand medical services. Users can access a GP online within 15 minutes, 24/7, and receive prescriptions, medical certificates, and referrals via a seamless digital experience. Since launching its telehealth offering in 2022, Hola has facilitated over 1 million consultations for nearly 600,000 users across all Australian states and territories.

The Series A also saw participation from existing investors M8 Ventures, FundWA, and a major health and care services provider. Healthylife’s investment cements Hola as its exclusive telehealth partner, integrating virtual consultations into its broader health ecosystem. Customers will gain access to same-day telehealth consults, free prescription delivery via Healthylife Pharmacy, and Woolworths Everyday Rewards points.

Hola’s platform allows customers to connect with a GP within 15 minutes for general medical advice, request online medical certificates, obtain new or repeat prescriptions, and access mental health care plans. The platform also provides specialist referrals, blood tests and imaging requests, and rapid pharmacy delivery, with some medications arriving within two hours. With bulk-billed options for eligible users. 

The fresh funding will help expand its national footprint, hire across its clinical and tech teams, and continue building infrastructure to scale both locally and potentially overseas.

Due Diligence: AFR, Startup Daily

RayGen raises $127M Series D investment for global rollout of its solar-plus-storage technology

CEO: Richard Payne

Melbourne-based cleantech company RayGen has closed a massive $127 million Series D round, one of the largest in the country’s clean energy history. This fresh capital will be used to accelerate the global rollout of its solar-plus-storage technology. The round was led by global energy tech firm SLB, which also signed a strategic deployment agreement to fast-track international expansion.

New investors include Quanta Services, Oxy Technology Ventures, and Breakthrough Victoria, joining returning backers Equinor Ventures, AGL Energy, and Photon Energy Group. Government agency ARENA doubled its support, adding $17 million to its previous $10 million commitment.

RayGen’s solution uniquely combines concentrated solar with thermal hydro storage. Mirrors focus sunlight onto high-efficiency solar modules, generating electricity and capturing heat, which is stored in water reservoirs for flexible, on-demand power delivery. Its flagship project in Carwarp, Victoria, is already one of the world’s largest long-duration energy storage plants and operates under an offtake deal with AGL.

With global interest growing, RayGen and Photon Energy are pursuing projects in South Australia and South Africa, while a new 170MW solar module manufacturing facility in Melbourne positions the company for serious scale. CEO Richard Payne calls it “an Australian success story poised to go global.”

Due Diligence: ESDnews, Renew Economy, Business News Australia

Gridsight lands $7.5M Series A to help energy grid managers optimise 

Founders: Dr Brendan Banfield, Kurt Walkom, and Hugh Chan

Sydney-based startup Gridsight has raised $7.5 million in a Series A round led by Airtree Ventures, with participation from Energy Transition Ventures, Aera VC, and Australian cricket captain Pat Cummins. Founded by Dr Brendan Banfield, Kurt Walkom, and Hugh Chan, Gridsight builds AI-powered software that helps grid operators optimise energy resources, improve reliability, and manage growing decentralised energy demands that include rooftop solar to EVs and batteries.

Currently working with 50% of Australia’s grid operators, including Endeavour Energy, Horizon Power, and Essential Energy, Gridsight analyses 4.2GW of distributed energy resources. The platform delivers real-time grid visibility and orchestration tools to reduce reliance on fossil fuels and lower household energy bills.

The platform leverages smart meter data and advanced modelling to dynamically adjust import/export limits based on real-time conditions, facilitating a more efficient use of existing grid assets. Gridsight also streamlines DER (Distributed Energy Resources) connection approvals, enforces compliance, and simulates future network scenarios, making it a critical ally for utilities navigating the decentralised, decarbonised energy transition.

The new capital will fuel international expansion, scale the team, and accelerate product development. A recent deployment with Endeavour Energy doubled solar export capacity for homes and is projected to add $100M in value for solar owners while offsetting usage from 75,000 homes.

Due Diligence: Business News Australia, The Australian 

MyNu energy lands $500K investment to recycle EV batteries into energy storage

Founders: Shaun Nugent and John Myler

Brisbane-based cleantech startup MyNu Energy has secured a strategic investment from Melt Ventures to accelerate its mission of turning used EV batteries into scalable energy storage solutions. This marks the company’s first external funding round and brings not just capital but also a partner with deep experience in manufacturing and scaling hardware-led businesses.

MyNu Energy specialises in repurposing electric vehicle batteries to create portable and large-scale storage systems, catering to industries such as mining, emergency response, government infrastructure, and remote communities. From trailer-mounted power units to shipping container-scale energy hubs, the startup sits at the intersection of cleantech, circular economy, and energy resilience.

MyNu Energy's approach not only addresses the growing issue of EV battery disposal but also contributes to the circular economy by extending the lifecycle of these batteries by up to 10 years. Their solutions are available for purchase or lease, providing flexibility for businesses and communities seeking sustainable energy alternatives.

As demand surges for low-impact energy alternatives and battery waste management solutions, MyNu Energy’s circular, second-life approach positions the company as a key player in the transition to a greener, more resilient energy future.

Due Diligence: Press Release

InsightWise raises $1M pre-Seed to automate strategic consulting with AI

Founders: Katherine Tobias and Matthew Bailey

InsightWise, an AI-powered platform reinventing the consulting model, has secured $1 million in an oversubscribed pre-seed round led by Aliavia Ventures and Ari Klinger’s No Brand Holdings. The raise also attracted backing from Wollemi Capital (Robyn Denholm), angel syndicate FB10X, and strategic investors across Australia and the US.

Founded by former KPMG smart cities lead Katherine Tobias and software developer Matthew Bailey, InsightWise targets the pain points of traditional consulting: manual workflows and sluggish strategy turnarounds. Its platform rapidly transforms raw data into decision-ready insights, promising to slash time spent on stakeholder engagement and strategy work.

The startup already counts the NSW government and several global consultancies as early adopters, positioning itself as a workflow enhancer when the consulting industry is wrestling with whether to build AI tools in-house or buy in.

Tobias, who previously led growth at me&u, and Bailey, InsightWise’s technical architect, launched the company last year. With this funding, they aim to scale globally and accelerate the shift toward AI-driven consulting. Aliavia’s Marisa Warren will take a board seat as InsightWise builds out its vision for faster, smarter strategy delivery.

Due Diligence: AFR

💰️ New Fund, Who’s this? 💰️

🎓 Gen Z VC Fund NextGen Ventures secures backing from VC heavyweights in $1.5M Raise (Overnight Success)

• The student-led VC, co-founded by 23-year-old Mitchell Hughes and 22-year-old Jerry X’Lingson, has raised $1.5 million of its targeted $2.5 million fund to support startups led by student founders across Australia.

• Its high-profile backers include Blackbird’s Rick Baker and Niki Scevak, Airtree Ventures’ Craig Blair, and entrepreneur Andrew J. Nash. The fund plans to write ~$70,000 cheques, targeting around 36 startups, with a preference for being the first investor.

• The fund is already being deployed. It has invested in the AI process automation startup Fluency, founded by Swinburne and RMIT students.

✈️ Qantas and Airbus back Climate Tech Partners with $15M to decarbonise aviation (Startup Daily)

• Qantas and Airbus have jointly invested $15 million into Australian VC firm Climate Tech Partners (CTP) to accelerate the development of sustainable aviation fuel (SAF) and other decarbonisation technologies.

• The investment is part of a broader US$200 million global fund established by the two aviation giants in 2022. CTP was selected for its hands-on approach with corporates and its focus on bridging the gap between early-stage climate tech and commercial deployment.

• The partnership will target startups working on SAF production, feedstock development, and adjacent technologies, with Qantas and Airbus having the option to make follow-on investments directly. 

🏥 Sydney Uni launches NSW’s first $25M pre-seed fund to back up to 50 spinouts (Innovation Aus)

• The University of Sydney has unveiled a $25 million Pre-Seed Launch Fund, the first of its kind in NSW. The fund will invest up to $500,000 in health and tech startups founded by staff, students, or alumni.

• The fund aims to bridge the gap between proof-of-concept and private capital, offering equity investments via SAFE notes or priced rounds. Spinouts already backed include EndoAxiom (oral insulin), DAC Labs (direct air carbon capture), and ASK Scientia (drug delivery tech).

• It will target innovations across biotech, medtech, clean energy, robotics, cybersecurity, software, AI, and quantum, providing capital alongside support from the university’s commercialisation team and Sydney Knowledge Hub.

🔦 Inhouse Ventures Community Spotlight 🔦

• Connect with Danielle in fundraising mode at Threadicated

• Connect with Olly in fundraising mode at Fingertip

• Connect with Allen in investing mode at EVP

🔍️ Curated Opinions 🔍️ 

Venture capital firm EVP was right to call the cops on StrongRoom by Jessy Wu (AFR)

• Despite industry backlash, venture firm EVP showed rare moral courage by reporting alleged fraud at portfolio company StrongRoom AI to the police.

• A move that risked reputation and fundraising but prioritised integrity and fiduciary duty. In a VC world incentivised to bury failures, EVP's decision stands out as a principled stand against the unspoken norms of silence.

Why banning non-compete clauses is a great idea for around 3 million Australian workers by William van Caenegem, Professor of Law at Bond University (Startup Daily)

• Prof Caenegem argues that the federal government's plan to ban non-compete clauses for workers earning under $175,000 is expected to boost wages and job mobility for 3 million Australians, addressing longstanding legal uncertainty that favours employers. He suggests that the move aims to reduce barriers to switching jobs while still allowing protection of genuine trade secrets.

Written an op-ed or have a spicy take on Aussie startup news? Let us know by replying to this email.

💰️ Wins 💰️ 

🌳 Sumday, the carbon accounting software has strategically partnered Xero giving Sumday exposure to 4.2 million global small business users.

• The partnership gives Xero users 12 months free access to Sumday’s carbon accounting tools, empowering accountants to take the lead on carbon reporting.

• This enables small businesses to understand their emissions data easily and, if desired, report it to larger clients and stakeholders.

• Sumday has received capital from Blackbird, Planeteer Capital and Wedgetail. 

💽 Quantum computing startups Diraq and Silicon Quantum Computing (SQC) have been selected for the US government’s Quantum Benchmarking Initiative (QBI). Led by the US’ Defense Advanced Research Projects Agency (DARPA) (Smart Company)

• QBI is organised as a staged research and development roadmap, with increasing levels of scrutiny, aiming to evaluate the feasibility of current quantum technologies in delivering practical systems within the next decade.

• Diraq was founded in 2022. Diraq is a Sydney-based startup specializing in building quantum processors using silicon 'quantum dot' technology. This approach leverages existing semiconductor manufacturing techniques to create scalable quantum computing solutions. Diraq aims to develop quantum computers with billions of qubits integrated on a single chip, facilitating practical commercial applications. ​

• Silicon Quantum Computing (SQC) was established in 2017, SQC is an Australian private company focused on constructing commercial-scale, silicon-based quantum computers. SQC is notable for its ability to manufacture quantum electronic devices in silicon with atomic precision, a technology pioneered by founder Michelle Simmons. 

🧑‍🏭 Portable secures $1.1M federal funding grant to enhance wage compliance tool 'Sweep'

• The grant was awarded under the Business Research and Innovation Initiative (BRII) and supports the next phase of Sweep's development.​ With intentional underpayment becoming a criminal offence from January 1, 2025, Sweep aims to foster transparency and trust in workplaces.

• Sweep assists workers in understanding their entitlements and aids businesses in navigating Australia's complex industrial relations system.​

📆 Notice Board 📆 

The best place to find upcoming events to attend, and promote any events you’re hosting in the ANZ Startup Events Calendar.

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 💁‍♂️  Quantum Thesis by Main Sequence Associate Alejandra Romero

• Australia is having a quantum moment. Money from government-backed funds is pouring into the sector, and local VCs are slowly getting their hands in the pie as well. I’ve been writing about startups for ~3 years now, and quantum write-ups are consistently the hardest. This thesis document, prepared by Main Sequence (one of the most active quantum investors in Australia), is a very approachable read and gives plenty of context on the status of quantum at the moment and where it’s heading.

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‘Til next time,

👋 Will

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