G’day, and welcome to this week’s edition of Overnight Success! A special welcome to the 25 new subs who joined since last week. 👋 Here’s your weekly download on all the important things that happened in the Aussie startup ecosystem.

Fun fact 👀 from a report by OnDeck this week - apparently the Gold Coast has the highest number of founders per capita in Australia…! ☀️

An even funner fact 💃🏻 Gemma will be just a hop skip and a jump away from all the emerging QLD startup action next year as she’s now locked in a move from Adelaide to the Sunshine Coast! If you’re based in Brisbane, the Gold Coast or the Sunshine Coast, she’d love to meet you!

Housekeeping 🧹 We will be taking a 3-week break over the Xmas and NY period to recharge, reset, and remember what normal Friday nights look like 🤣.

Thank you so much to all of our readers - old and new - who have been along the ride with us this year. We can’t thank you enough for your support and look forward to being back in your inboxes soon for an even bigger and better 2024! 🚀 

Does your OS newsletter get cut off by Gmail’s pesky mobile app? You can read the full version without interruption here.

Headlines

🍇 Two wins for championing diversity and inclusion across the tech industry

• Grapevine hit the ecosystem with a splash, providing a platform to bring to light the stories of women who have experienced sexism, harassment and other inappropriate behaviour from colleagues, bosses and investors. With already ~2,000 followers on LinkedIn (within just days of launching!), it’s safe to say there is a strong appetite from the ecosystem to support this initiative.

• Also this week, Equity Clear was announced as the name for the newly created group of VCs who have collectively committed to publicly reporting the diversity metrics of their investment portfolios. The group includes the likes of Blackbird, Airtree, Climate Salad and Scale Investors. Read more about it from Smart Company.

🛩️ Migration policy changes receive a positive reception from founders trying to hire top talent (AFR, Startup Daily, Capital Brief)

• The Federal government this week released the details of its migration policy amendments, which included the ability to ‘fast track’ visas for talent paid over $135k.

• In practice, this means innovative companies can attract high quality, specialised talent from around the world and compete on a more level playing field with other countries seeking the same talent, powering the growth of our tech sector.

🥓 OneVentures brings home the bacon thanks to Employment Hero (AFR, Capital Brief)

• The VC firm was this week revealed to have delivered a ~13x return after completing a major secondary transaction in the HR tech unicorn, repaying more than its entire fund.

PLUS - we’re closing out the year with a huge week of raise announcements as 9 startups announced closed rounds this week - enjoy! 💰️

⚡️Startup Retro⚡️

Koala Eco sparkles with $3M Series A for natural essential oil cleaning products to take on US

Founders: Jessica Bragdon & Paul Davidson

Koala Eco, a Sydney-based natural cleaning product brand, has raised $3 millino in a Series A funding round from US and Australian investors to fuel its expansion in the US market. The round was led by Alice Wells at Lempriere Wells with contributions from the Cohen Family and Arcadia Capital.

Currently available in 1,500 stores, the brand plans to double its US presence in six months. The business model centres around affordable pricing and attributes a subscription model as key to its success. The brand separates itself as a high-quality product at a reasonable price. For example, the popular Multi-Purpose Kitchen Cleaner is priced at $14.95, with subscriptions offering a 30% discount.

Strong brand awareness has come from coverage in Gwyneth Paltrow's Goop and Oprah Winfrey's O magazine. The company has also formed a strong advisory board including Goop, True Botanicals, and Unilever industry experts. This move marks Koala Eco's determined push to establish a significant footprint in the US market, building on its product quality and market appeal.

Due Diligence: AFR

Vitruvian pumps out $21.8M Series A extension to expand "all-in-one" home gym solution

Founders: Jon Gregory

Perth-based home fitness platform Vitruvian has raised an additional $21.8 million in a follow-up to its 2022 Series A round, bringing its total funding to over $43 million. This latest funding round included previous investors like Larsen Ventures and Ten13, aimed to bolster Vitruvian's growth and product development.

Vitruvian offers the Trainer+ product, a portable home gym system. The Trainer+ and its accompanying app use AI to provide a range of exercises with resistance up to 200kg, adapting workouts to individual user performance. The performance adjusts to the user's fitness plan and performance in the sessions. The platform costs $4,190 AUD and has an additional $49 per month subscription.

With a presence in over 20 countries and particular popularity in the US, Vitruvian's products have also favoured US and Australian sports teams, especially during travel. The fresh capital infusion will advance Vitruvian's hardware, software and content.

Due Diligence: Smart Company

Clove raises $4.15M Seed for AI-powered recipe app from ex-Canva employees

Founders: Sam Killin and Anna Guerrero

Clove, an AI-driven recipe platform co-founded by former Canva employees Anna Guerrero and Sam Killin, has secured $4.15 million in Seed funding led by Blackbird Ventures, with participation from US-based SHAKTI and other employees from Canva. The platform, designed to simplify meal planning and use leftover food items, operates as a two-sided marketplace. It personalises recipe discovery for users and offers recipe creators a global platform for their content with video and text recipes.

The platform prioritises recipe engagement over traditional engagement optimisation that other social products use, aiming to revolutionise how home cooks access and utilise cooking information. Clove will offer free access to recipes, with premium options for additional features and cooking tools, providing revenue opportunities for creators.

Guerrero and Killin's expertise from Canva is central to Clove's strategy, focusing on user experience and community. Guerrero's inspiration came from her culinary journey in Italy, aiming to make recipe discovery and cooking as seamless as Canva-made design. The funding will accelerate Clove's beta launch and expand its team, with an ambitious goal to facilitate one billion recipes cooked worldwide. Clove's approach is poised to create a new standard in the culinary digital space, reflecting its founders' vision of an intuitive and community-driven platform.

Due Diligence: Business News Australia, Forbes

Relevance AI raises $10M Series A to build AI agents via a low-code platform

Founders: Daniel Vassilev, Jacky Koh and Daniel Palmer

Relevance AI has secured $10 million in a Series A funding round led by returning investor King River Capital. This investment boosts its total funding to $13.2 million. Co-founded by Daniel Vassilev, Jacky Koh, and Daniel Palmer in 2020, the company offers a low-code SaaS platform for businesses to build custom AI agents across various industries. Also investing in the round was Peak XV's Surge (former Sequoia Capital India) and existing backers Galileo Ventures and Insight Partners.

The platform has significant traction, with around 6,000 companies signing up in just three months and running over 250,000 tasks in that time. The initial offering by Relevance AI focuses on sales and support teams, offering two main products: AI tools for automating tasks and AI agents for managing complete workflows. A standout product is their business development representative (BDR) agent, which aids sales teams in managing routine tasks. You can watch a slick demo of the agents in action here.

Relevance AI's approach differs from traditional chat interfaces by emphasising task-based outcomes and work delegation. The company is also exploring multi-modal applications, including image and audio, with plans to expand its team to 30 by mid-2024 and establish a presence in San Francisco. The funding will scale the team and enhance the platform, envisioning a future where AI agents are integral to every team's operations by 2030.

Due Diligence: Tech Crunch, Startup Daily

Blockbuilder snags $2M to help buyers utilise equity in their current assets to make new purchases

Founders: Mark Macduffie, Damian Morgan and Michael Kelly

Blockbuilder, a Sydney-based platform optimising the downsizing process for empty nesters, has secured $2M in funding. The raise is part of a larger $4 million round set to close by January. This investment, led by Correlation Australia Holdings, follows a previous $3.75 million round.

Founded in March last year by Mark Macduffie, Damian Morgan, and Michael Kelly, Blockbuilder's platform, Downsizer.com, enables buyers to use home equity as a deposit on new properties, averaging $2.6 million in value.

The platform generates revenue through developer commissions and property sales, averaging $18,000 per transaction. The new capital will fuel expansion into the UK and US markets, increase staff, and enhance technology. The platform is well placed to capitalise on an initial user base of ~1,700 who have a combined portfolio of $3B.

Blockbuilder has been recognised as a high-potential tech export by Austrade and is planning a UK launch by May next year, initially partnering with up to 10 developers. Additionally, they are exploring boatdeposits.com, a similar equity deposit model for boat purchases.

Due Diligence: The Australian

Straand snags $4M for its microbiome scalp care hair products

Founders: Jeremy Hunt, Sarah Hamilton, Tim Brown, Nick Morris, and Meagan Pate

Melbourne-based Straand, a hair care and scalp brand, has secured $4 million in investment from Gerry Harvey and Katie Page alongside Unilever Ventures. The investment rounds out a strong year for Australian beauty brands following significant acquisitions like those of Bondi Sands and Aesop.

Straand specialises in microbiome scalp care and is already available online through Sephora and Adore Beauty. Straand has now signed a deal that will see it in more than 70 Sephora stores across Australia, southeast Asia and the United Kingdom by March next year. It's also sold in the US via numerous retailers, including Amazon. This move into retail marks a significant step for Straand in a niche but expanding scalp care market.

Hamilton, also the founder of Sand & Sky and Bellabox, sees a considerable opportunity in addressing scalp concerns, a segment with few dominant players like Selsun Blue and Head & Shoulders. Straand's approach focuses on solving specific scalp problems with specific products.

For Gerry Harvey, this marks his first foray into the self-care industry, diverging from his usual investments in property and agriculture.

Due Diligence: Business of Fashion, AFR

Cyban lands $6.2M Series A to develop a Brain Pulse Monitor

Founders: Dr. Barry Dixon

Cyban, a Melbourne-based MedTech developing a non-invasive device to monitor brain oxygen levels continuously, has raised a $6.3 million Series A. Included in the funding was $2 million from the Victorian Government's $2 billion innovation fund with contributions from Significant Early Venture Capital and InterValley Ventures.

The Brain Pulse Monitor is designed for patients with brain injuries and aims to replace invasive surgical probes with external receptors, revolutionising brain injury management.

The Series A funding will play a crucial role in obtaining regulatory approval in Australia and the United States and initiating the device's manufacturing in Victoria. The startup is led by founder Dr. Barry Dixon, a clinician at St Vincent's Hospital. The technology is also undergoing trials in several hospitals across Melbourne and international locations.

Cyban plans to expand its workforce by 50 staff members over the next four years, supported by this recent funding and a grant from the state's MedTech Manufacturing Capability Program. With traumatic brain injuries affecting 27 million people globally each year, Cyban's innovation represents a significant advancement in medical technology.

Due Diligence: Proactive Investors, Innovation Aus

Mist raises $1.6M Seed round for its international student-focused telecommunication and banking app

Founders: Dave Malcolm & John Crutchley

Sydney-based startup Mist has raised $1.6 million in Seed funding for its banking and telecommunication services app, which is designed to ease the relocation process for international students, skilled workers, and migrants. The raise was co-led by Investible and Allectus Capital and had participation from Archangel Ventures, Seedspace, and The Hunter Angels.

Founded in early 2022 by CEO John Crutchley, Mist aims to streamline pre-departure challenges like verification, payments, and communication for international students. The GTM plan includes partnerships with education agents, institutions, and accommodation providers, focusing on the needs of students moving abroad.

Co-founder Dave Malcolm, who joined Mist about a year ago, brings experience from Marley Spoon Australia and Dinnerly. Mist's app is in closed beta and available on iOS and Android. It simplifies bank account opening, cross-border payments, and SIM provisioning. The app integrates KYC verifications through FrankieOne and plans to incorporate overseas health coverage and international student identity cards next year.

Mist, with a team of eight, will onboard its first cohort of international students in January, with a full launch expected later in the year. The app is hoping to become integral to the student relocation process, with student migration to Australia now surpassing pre-COVID levels.

Due Diligence: Business News Australia

Smartlox locks away $600K Seed round to modernise security systems in dangerous industries

Founders: Brent Wijnberg & Steven Fletcher

Smartlox, a digital lock platform, has raised $600,000 in Seed funding to modernise safety in hazardous work environments. Their cloud-based system works with wireless padlocks to improve worker safety, particularly in areas with dangerous energy sources like mining, manufacturing, and logistics. This approach updates traditional lockout tagout (LOTO) practices, which involve using physical locks and tags to secure energy sources (like electricity or gas) and prevent accidental activation during maintenance or repair work.

Since its inception in March 2022, Smartlox has garnered 40 global clients, including big names like Schneider Electric and Kinross Gold. This first round of external funding comes from notable investors in safety equipment and mining technology, signifying a strategic push for growth as industries increasingly turn to digital solutions for safety.

The funding will be used to enhance Smartlox's sales, customer service, and product development, aiming to expand both in Australia and globally. The popularity of Smartlox Starter Packs has played a vital role in the company's early success, offering customers an easy way to start using their products.

Due Diligence: Startup Daily

Crowdfunding

• Birchal, the crowd-sourced funding platform with an 80% market share of the crowdfunding market, is raising a Pre-Series A round. The pre-money valuation is $22.5 million.

  • Within 24 hours, the campaign raised $1.2M from over 500 investors, aiming for a total of $2.5 million. With six days left in the campaign, funding has hit over $1.6 million.

  • Notable backers include Peter Cameron and Dom Pym, Co-Founder of Up and Pin Payments.

  • The funds will be used to expand and enhance Birchal's platform and services, complementing its core business and diversifying revenue streams. This is Birchal's second self-hosted CSF offer, following a successful $3 million raise in April 2022.

  • Birchal helped 26 businesses raise capital last quarter and hosted 57 successful CSF offers in FY23. They facilitated $194 million in investment and take a 6% fee on money raised.

Aussie Raisins

• Sydney-based Vloggi, specialising in user-generated video (UGV), has initiated a $750,000 equity crowdfunding campaign on the CSF platform OnMarket, offering 250,000 shares at $3 each. The funding will enhance the platform into an enterprise tool and expand its growing international subscriber base.

  • Vloggi, used by over 3,000 companies, including Amazon and Qantas, harnesses AI to manage video submissions. The platform's focus is shifting to employee-generated content for internal communications, tapping into a UGV market growing at 30% annually.

M&A Action

Collabosaurus, a leading platform for brand collaborations founded in 2015, has been acquired in a rare instance of an all-female founder tech exit, marking for a significant and positive industry development.

• Jessica Ruhfus, founder of Collabosaurus and No.2 Co, sold the company, which has seen a yearly growth of over 84% and a profit margin of 46.8%, to Lauren Swidenbank, CEO and Founder of Cali Social.

Linktree has acquired its US-based competitor Koji. This acquisition follows Linktree's earlier purchase of Bento in mid-2023. Koji is an “e-commerce platform” in bio to help influencers sell through social media.

• Linktree will sunset the Koji brand by 31 January 2024, integrating Koji's creators into its platform and offering them three months of free Linktree Pro.

Wins

🐝 HiveIQ, with its innovative beehive that utilises EPS polystyrene insulation and results in up to 35% more honey and better colony survival, is creating a buzz in the US. (Business News Australia)

• These sustainable, insulated hives, made from 100% recyclable materials, replicate natural bee habitats and outperform traditional wooden hives in harsh weather.

🚀 UQ Ventures ilab Accelerator has picked 10 startups, comprising 17 founders, for its newest cohort.

• Now in its 18th iteration, the program is one of the longest-running accelerator programs in Australia and has supported more than 230 startups. Learn more about the newest participants here.

KaaS (Knowledge as a Service)

Gemma’s Pick 💁‍♀️ Breaking The Culture of Silence (aka “Why Grapevine Needs to Exist, and Why You Should Care”), by Elaine Stead

• To summarise Elaine’s article here would never do it justice, but I think in answer to the question (Why does Grapevine need to exist?), this quote starts to explain: “The goal is to use sunlight as the best disinfectant, and education to enable people to do better.” I’m so proud of the women behind this - many of whom I’ve have the privilege of getting to know over the last 12 months thanks to this newsletter. Please read this and do what you can to support this important initiative. We will all be better for it.

Will’s Pick 💁‍♂️  Board Member Handbook by TDM Growth Partners

• This free handbook by TDM isn’t just about effective individual board participation; it dives into what makes an effective board. TDM shares insights on the common attributes of successful boards and directors, making it a crucial read for anyone looking to enhance their organisation's leadership. Or, if you’re an investor on a board, here's a handy resource to review.

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‘Til next time,

👋 Will & Gemma