💌 Aussie Startup & VC Summary | 15th March 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 🚀 .

Do you want to be more involved in the Overnight Success community this year as a supporter, sponsor or partner? We’d love to hear from you! Just hit reply to this email and say hi, or reach out to us on LinkedIn 👋.

Housekeeping 🧹 An important correction

Last week, we published the news of GonGlobal’s raise announcement, which, unfortunately, contained some errors. It’s really important to us that we get the details right, so we’re grateful to the GonGlobal team for reaching out to help us make some corrections. We’ve included the write-up again in this week’s edition, with the corrections implemented. Please give it a read! 🙏 

👀 Headlines 👀 

🤝 Billionaire Atlassian co-founder Scott Farquhar will replace Robyn Denholm as chair of the Tech Council of Australia (TCA), following tensions around Denholm’s dual role as Tesla’s chair. (Capital Brief, Tech Council of Australia)

• Farquhar aims to strengthen TCA's advocacy of digital infrastructure and consumer energy technology, having stepped down as Atlassian’s co-CEO in 2024.

• Denholm, who has led TCA since its 2021 inception amidst rising tensions around data sovereignty and international tech influence, will remain on the TCA board.

• Denholm will also exit her operating partner role at Blackbird Ventures. (Innovation Aus)

🤔 Confusion sparks over changes to Buy Now, Pay Later (BNPL) credit reporting and how it is reflected in consumer credit histories. (Capital Brief)

• The legislation change to regulate BNPL, the National Consumer Credit Protection Act 2009 (Cth), taking effect in June, may include BNPL in personal credit reporting, which can affect borrowing capaitlies. 

• The confusion comes from placing both short-term BNPLs (like Afterpay) and long-term personal loans (e.g., for purchasing solar panels on low interest repayments) in the same bucket.

• Arca, Australia’s retail credit industry association, is pushing for clear ASIC guidance to standardise credit reporting, ensuring that short-term BNPL debts don’t disproportionately affect credit assessments.

💲 ASX-listed Scalare Partners acquires startup marketplace Inhouse Ventures (IHV) with a mix of cash and stock grants, strengthening its support ecosystem for tech founders. (Startup Daily)

• The acquisition includes upfront and deferred payments, with Scalare expecting positive EBITDA and cash flow despite recently reporting an EBITDA loss of $307,186 due to listing costs.

• This marks Scalare’s third recent acquisition, reinforcing its commitment to supporting startups across all growth stages.

⚡️ Startup Retro ⚡️

Sonder secures $40M to expand workplace well-being platform internationally

Founders: Peter Burnheim, Craig Cowdrey and Chris Marr

Sydney-based wellness app Sonder has secured $40 million in funding from Blackbird Ventures, Seek, and Hostplus, gearing up for international expansion. Sonder's platform, which provides workplace well-being solutions covering personal safety, medical, and mental health support, recently reached a milestone of one million users.

The latest round follows a $16 million raise a year ago, with CEO Craig Cowdrey indicating a significant increase in valuation from the previous $150 million. Returning investors include MA Growth Ventures, Perpetual, Perennial, Tidal Ventures, and Woolworths’ venture arm W23.

Sonder serves prominent Australian clients such as David Jones, Mirvac, IAG, Hoyts, McDonald's, and Nine Entertainment and is seeing rapid growth in Britain, driven partly by NHS access challenges.

The platform offers comprehensive, 24/7 support across personal safety, medical, and mental health. Key features include a holistic well-being resource hub, personalised mental health and medical assistance, critical incident and trauma response, proactive injury management, dedicated manager support, and personal safety tools. These services are integrated into the Sonder app, providing employees a single, accessible entry point for all their well-being needs.

Sonder targets the importance companies now place on employee wellness, which is crucial for retention and productivity rather than merely corporate responsibility. The fresh capital will support the development of new AI-driven features, predictive analytics, and products targeting workplace psychosocial hazards.

Due Diligence: AFR

Breaker lands $2M pre-Seed to make AI-powered software that helps robots behave like humans

Founders: Michael Irwin, Matthew Buffa, Vanja Videnovic

Sydney-based Breaker has secured $2M in pre-Seed funding led by Main Sequence to revolutionise how robots think, not just how they're built. The company aims to triple its team and expand its US presence over the next six months.

Unlike hardware-focused competitors, Breaker is developing AI agents that enable machines to communicate and collaborate like humans. Their technology allows a single operator to control up to 100 systems simultaneously, functioning effectively even in disconnected environments through on-device AI.

By embedding AI agents directly on-device, Breaker’s first-of-its-kind platform eliminates reliance on external servers, ensuring robots remain reliable, responsive and resilient. Even in disconnected, high-risk environments.

Founded in 2023 by former Anduril, DroneShield, and Hargrave Technologies executives, Breaker has already secured multiple US defense contracts and established strategic partnerships with SensorOps, Airvolute, and the Australian Institute of Machine Learning.

While initially focusing on defense applications, the company plans to expand into critical infrastructure, search and rescue, farming, and mining.

Due Diligence: Press Release, Defence Connect, Business News Australia, The Australian

StrongRoom AI secures $17M at $70M valuation to streamline medication management and boost patient adherence

Founders: Max Mito, Christopher Durre, and Kieran Start

StrongRoom AI, an Australian pharmacy platform founded as a university side hustle, has secured a $17 million investment led by EVP, valuing the company at nearly $70 million.

Founded in 2017 by Melbourne-based friends Max Mito, Christopher Durre, and Kieran Start, StrongRoom AI initially aimed to link medical records to patients using facial recognition. However, the trio pivoted to digital solutions for pharmacy operations, replacing traditional paper-based medication tracking with subscription software.

Today, StrongRoom AI serves more than 1,500 pharmacies across Australia, the US, and the UK, generating $13 million in annual revenue. Its software features a digital logbook for managing controlled medications and an AI-powered platform that enhances medication adherence through SMS reminders.

The software is specifically designed to assist healthcare providers, such as pharmacies and hospitals, in managing medications more safely and efficiently. It can be customised for various settings, including pharmacies, hospital wards, or operating theatres, and provides detailed reports to ensure staff remain well-informed. 

Funds from the latest round, supported by existing investors Artesian Capital and InterValley Ventures, will partly finance StrongRoom AI's acquisition of Members Benefits Australia and expand global operations. EVP's Misha Saul will join StrongRoom’s board.

Due Diligence: AFR 

Harmony Intelligence raises $3M to combat AI cyberattacks

Founders: Soroush Pour and Alex Browne 

Harmony Intelligence, an Australian-American cybersecurity startup, has secured $3 million in Seed funding led by Airtree Ventures to build advanced AI-powered cybersecurity defenses. The capital raise follows the trend of AI-driven cyberattacks surging globally. Cyberattacks that include deepfakes of key individuals are impacting over half of businesses in the US and UK. Harmony aims to develop automated solutions capable of outpacing evolving threats.

Co-founders Soroush Pour and Alex Browne, former early employees at fintech unicorn Plaid, launched Harmony to counter sophisticated AI-enabled attacks that traditional cybersecurity can't effectively manage. The company already collaborates closely with global AI labs and government bodies, including the International Network of AI Safety Institutes, evaluating frontier AI models for cybersecurity risks.

Harmony's core product will leverage AI for continuous automated penetration testing, identifying and addressing vulnerabilities proactively rather than reactively. 

The Seed round also attracted prominent angel investors, including Eric Ries (author of "The Lean Startup") and executives from Canva, Adept AI, and Plaid, underscoring significant industry confidence in Harmony's innovative cybersecurity approach.

Due Diligence: Startup Daily

Thanks lands $4.1M Seed round to build a retail media ad network in companies check-out

Founders: Steve Tesoriero, Cayley Ostrin, and Doron Ostrin

Aussie-founded retail media startup Thanks has secured US$2.6 million (AUD $4.1 million) in seed funding from Peak XV Partners, Founder Collective, and Side Stage Ventures. Launched in 2023 by former Zip Co executives Steve Tesoriero, Cayley Ostrin, and Doron Ostrin, Thanks aims to redefine digital advertising by curating personalised offers that enhance rather than disrupt user experiences.

Thanks’ ad network integrates into merchants' checkout processes to deliver curated, relevant offers to customers upon completing a purchase. This innovative approach significantly boosts partners’ click-through rates—up to 660%—and unlocks new revenue streams.

By partnering with various brands, Thanks ensures that each offer aligns with the customer's interests, leading to increased engagement and satisfaction. For merchants, this model unlocks new revenue streams and fosters customer loyalty by presenting timely and appealing promotions at the point of sale.

Now headquartered in New York but maintaining its engineering and product teams in Sydney, Thanks is experiencing rapid global expansion, with monthly revenue growth of 20%. The company has secured significant partnerships with multinational brands including eBay, Zip, Sezzle, and Humanitix, serving around 20 million customers monthly across the US, UK, Australia, and New Zealand.

Due Diligence: Business News Australia 

PHNXX raises $1.8M Seed round to expand its powergrid-in-a-box solution

Founders: Wei-Chi Lee and Joel Tay

Victorian climate-tech, PHNXX, has secured $1.8 million in Seed funding to expand its innovative modular grid-in-a-box solution across Asia Pacific. The company also announced a strategic partnership with ASX-listed Synertec to bolster sales and commercialisation efforts. Investors in this round include Synertec, ENGIE Factory, Pacific Channel, LaunchVic's Hugh Victor McKay Fund, and climate-focused angels.

PHNXX’s containerised battery and solar system offers a clean alternative to diesel generators, promising 34 times fewer emissions and five times lower costs per kilowatt-hour. Targeting remote and rural industrial sectors like construction, mining, agriculture, and farming, the solution can be rapidly deployed within days, significantly quicker than traditional energy setups.

Additionally, PHNXX has introduced the Mini PHNXX, which appears to fit in the back of a ute. The compact system generates 1 kW of power through solar and omnidirectional wind turbines, storing 120Ah in its battery. Its onboard Energy Management System optimises power generation and consumption, fine-tuning the full-scale pilot ahead of deployment. 

With an active sales pipeline exceeding US$20 million (A$31.4 million), PHNXX plans its first international installations in Singapore and Malaysia by Q2 2025. The startup aims to abate 100 megatonnes of carbon emissions by 2035.

Due Diligence: Capital Brief

AMP raises $20M to grow e-commerce growth and insights platform

Founders: Cameron Priest and Patrick Barnes

AI-driven e-commerce platform AMP has raised $20 million in a funding round led by Openspace Ventures and OneVentures. The raise accompanies AMP's acquisition of the Shopify app Back in Stock, which alerts customers about restocked items. This strategic buyout provides AMP access to significant buyer intent data, enhancing merchants' personalised shopping experiences and driving revenue growth. Back in Stock boasts high-profile customers, including UGG, SKIMS, Red Bull, and Steve Madden.

AMP is experiencing rapid momentum, recently achieving a 150% year-over-year ARR growth and more than doubling its customer base to 45,000 businesses since its last funding round.

So far, AMP’s portfolio has included its Shopify apps Lifetimely and Upsell. Lifetimely analyses purchase data, tracks customer journeys, and offers detailed profit and loss reporting to optimise store performance. Upsell leverages Lifetimely's analytics to automatically recommend relevant products at each stage of the buying process, increasing average order value and revenue. 

The platform has already generated $1.8 billion in incremental sales for over 45,000 global brands. AMP emphasises straightforward pricing and all-inclusive features, aiming to enhance merchant profitability through smarter upselling and customer insights without additional revenue fees.

In the coming year, AMP plans significant upgrades to its software suite, deepening integrations and forming strategic partnerships, thereby further cementing its position in the global e-commerce landscape.

Due Diligence: SmartCompany

EcoJoule Energy secures $15M to make energy grids and homes more integrated

CEO: Dr Mike Wishart

Brisbane-based EcoJoule Energy has secured $15 million from Ellerston Capital and Fifth Estate Asset Management, marking the company's first institutional funding round since its launch in 2014.

EcoJoule initially gained traction with its EcoVAR™ static compensator technology, designed to regulate voltage on existing power grids, enhancing efficiency and stability. Expanding its scope, the company developed home energy management solutions, helping solar-equipped households seamlessly integrate with the grid, and introduced its EcoSTORE™ battery inverter to improve power quality for both traditional and renewable energy users.

The opportunity for EcoJoule in the household is clear as Australia’s Department of Climate Change estimates there are now four million rooftop solar installations across the country, with about 300,000 new systems installed annually. Each of these homes needs to be responsibly connected to the grid. 

EcoJoule counts Endeavour Energy, Essential Energy, Ausgrid, and AusNet Services among its customers and aims to leverage the investment to scale manufacturing and respond to increasing global demand for smart energy tech.

The fresh capital positions EcoJoule to expand its footprint significantly as the smart energy sector accelerates.

Due Diligence: EcoJoule Announcement, SmartCompany

GonGlobal lands a $1.6M pre-Seed round to develop non-invasive IVF medication system

Founders: Ellen Gonda and Igor Gonda

GonGlobal has secured $1.6 million in pre-Seed funding to develop non-invasive IVF medication delivery, eliminating the need for painful daily injections. Founded by father-daughter duo Ellen and Igor Gonda, the company’s mission is to improve the IVF patient experience and treatment success rates.

The round was led by doctor and entrepreneur Peter Cronin, with support from Flying Fox Ventures, UNSW Founders, The George Institute for Global Health, LaunchVic’s Alice Anderson Fund, and Australian Medical Angels.

GonGlobal’s breakthrough is part of a larger multi-billion dollar opportunity in women’s health innovation. Despite women comprising half the population, the sector receives just 2% of healthcare venture funding. However, Australia is emerging as a global leader, with $333 million in government investment, a strong clinical trial ecosystem, and pioneering advancements in IVM, endometriosis research, and cervical cancer elimination.

GonGlobal was a member of the Health 10x program run by UNSW Founders. Along the way, it’s been keen to demonstrate that women’s health isn’t a niche; it’s an economic and healthcare priority.

The opportunity in women's health is large, to say the least. Historically, women’s health has been grossly overlooked, focusing primarily on sexual and reproductive systems while neglecting other essential health needs. In nearly every country around the world, non-communicable diseases represent the primary causes of death and disability among women.

Due Diligence: Kylie Frazer (Flying Fox Ventures) LinkedIn Post

🎉 Wins 🎉 

🌳 GreenPay, a green payment processor, has launched with 50% of profits going to the GreenPay Foundation.

• The FinTech was founded by a friend of the newsletter, Maddi Ingham and Glenn Bartlett. Glenn has impact VC experience at Alberts Impact Ventures, and Maddi has previous experience as Chief of Staff at Verve Super. Following the launch, the platform is already processing tens of millions of dollars. 

• The GreenPay Foundation supports charitable organisations taking practical steps to address specific environmental issues today and invests in inspiring entrepreneurs building long-term solutions to climate change, biodiversity loss, sustainable food production, material circularity, and other urgent environmental concerns.

🚴 Point King Capital and Skip Capital partially exit their investment in premium bicycle maker Factor Bikes, selling 21% stake to Chinese manufacturer Zhonglu in a deal valuing Factor at $US70 million ($111 million). (AFR)

• The sale results in a 2x return for the Australian investors; Factor Bikes grew revenue from $US10 million to nearly $US40 million since their 2021 investment.

• Factor Bikes, known for high-end carbon fibre bicycles that have been used in the Olympics and by team OSTRO VAM in the 2024 Tour De France, retains Point King and Skip Capital as minority shareholders with ongoing board involvement.

• The deal is pending Chinese regulatory approval.

LUMOS, the audience intelligence platform, partners with Mastercard, merging audience intelligence with geo-spend data to enhance marketing effectiveness. (LinkedIn)

• Brands in Australia and New Zealand can now target consumers precisely, measure campaign-driven footfall, and accurately track spend uplift. 

• The collaboration promises to unlock deeper consumer insights and drives smarter, omni-channel campaign planning and measurement.

💽 PsiQuantum unveils breakthrough in scalable photonic quantum chips and claims mass production milestone. (Startup Daily)

• New peer-reviewed research demonstrates that PsiQuantum’s hardware solves key photon management hurdles.

• Photonic quantum computing is now positioned as a practical contender against traditional superconducting qubits championed by Google and IBM.

• PsiQuantum’s partnership with GlobalFoundries yields millions of quantum-ready silicon chips, marking a major scalability leap. The success of PsiQuantum’s approach could accelerate quantum computing adoption, offering significant speed, energy, and compatibility advantages.

🎉 Business News Australia released their Top 100 Young Entrepreneurs list for the year.

👀 Curated Opinions 👀 

🧑‍🔬 Elaine Stead, the Principal at Main Sequence, argues that Australia needs to rethink startup failure, especially in deeptech. (Capital Brief)

• Elaine argues that failure, especially in deep tech, is a necessary step toward innovation, not a fatal flaw.

📆 Notice Board 📆 

⚕️ Applications are now open for MedTech Actuator Accelerator – Asia Pacific’s leading 6-month program for early-stage MedTech, BioTech, and HealthTech startups. Since 2018, they’ve supported over 100 startups navigate the complexities of healthcare commercialisation, accelerating their path to market and investment readiness. Apply by 21 March! 

• Take the first step at a free Venture Bootcamp on 19 March!

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)

Gem’s Pick 💁‍♀️ The startups stopping bad weather in its tracks

• Last week, I and many of my Queensland-based peers had our travel plans upended by ex-Tropical Cyclone Alfred. As the realities of the uncontrollable impacts of climate change become scarily more apparent, many innovators around the world are working on solutions to prevent its impacts.

• For example… Norweigan-based startup OceanTherm is aiming to stop cyclones before they make landfall with “bubble curtains” (the science behind this was covered on 7:30 this week). Rainmaker’s precipitation enhancement technology uses the concept of “cloud seeding” to mitigate storms and solve water scarcity issues. Make Sunsets is using balloons to launch reflective clouds into the stratosphere that reflect in an attempt to “cool” the planet. (Can you tell I went down a rabbit hole? 🐇 😆 ).

Will’s Pick 💁‍♂️  SILICON VALLEY INTRO SEQUENCE - Every detail, Easter eggs, and history behind the opening in seasons 1-5, Youtube Video.

• Kudos to Brandon Yell from UNSW for sharing this one. This show is still as funny and relevant as it ever was. I always loved the intro dequences and wondered how what were all the referenes I was no doubt missing. Now we have the answer.

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

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‘Til next time,

👋 Will & Gem

🔨 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.