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 special welcome to our new subscribers - it’s great to have you here! 👋 

👀 Headlines 👀 

🤦 The Tech Council of Australia hosted the National Tech Summit in Port Melbourne this week, launching a few headlines and facepalms. A snapshot of the action….

• The summit was hosted under a cloud of scrutiny following Richard White's belated resignation from its board. Robyn Denholm, chair of the council and Tesla chair, was likely in a good mood since the Trump victory had graced her with a $200M uplift in her Tesla equity. 

• Bronwyn Halfpenny, Victoria’s parliamentary secretary for jobs, gave the opening address, which focused on the sweeping changes of a new technology called “A1.”

  • Giving Halfpenny the benefit of the doubt, the opening speech several times referenced what was likely a typo on the teleprompter for artificial intelligence/A.I.. Regardless, it seems strange to be in a role like that and not realise something was amiss.

• Craig Blair, co-founder and partner of Airtree, said on a panel that great founders were often “deeply flawed characters” when asked if the tech sector had a culture of protecting “geniuses” who behaved badly. He went on to say that “we shouldn’t be looking for some accountant or consulting (types), we need to be looking for these problem children who we can build incredible cultures around.” (AFR) 

  • There was a wave of conversation online following Blair’s comments, and a response from Craig on LinkedIn - we’ve captured the key parts of the conversation in “Vibe Check” below 👀.

• The Tech Council did make some progress, however, by unveiling the T-EDI Standards to boost diversity. Learn more about the T-EDI standards here. (Startup Daily)

  • The T-EDI is a certification framework to improve equity, diversity, and inclusion in tech, targeting Australia's goal of 1.2 million tech jobs by 2030. 

  • TCA members Atlassian, Telstra, CyberCX, Accenture, PEXA, and Culture Amp endorse the standards, aiming to make tech roles more inclusive and attractive to diverse talent.

⏰ The $15B National Reconstruction Fund (NRFC) will start making its first investments after requesting a $300M drawdown from the Government. (SMH)

• The fund is targeting a return greater than the 5-year Australian Government bond rate plus 2-3% and will invest with debt and equity, focusing on early stage, growth stage and mature businesses. For the sake of comparison, as of Dec 2023, Blackbird has a net IRR of 38%.

• The Coalition also scrutinised the $1B PsiQuantum deal after the Labor Government revealed that $275M in Federal loans for the project had yet to be drawn down, with the opposition suggesting that this was due to the US-based quantum company missing milestones. PsiQuantum have emphatically denied this claim. (AFR)

☀️ Plans for the world’s largest renewable energy plant - bigger than entire countries - have been lodged in Western Australia. (Recharge News)

• The Western Green Energy Hub (WGEH) project, which includes InterContinental Energy and CWP Global, is slated to have a capacity of 70GW and is similar to Australia’s current total power generation. 

• The project will cover 22,700 square kilometres of coastal desert land and include a mix of solar panels and 3,000 wind turbines. 

• Construction on the project is expected to take three decades. This article has a great illustration of the scale. 

😔 Hivery, the retail AI start-up backed by Blackbird Ventures and Tiger Global, has entered voluntary administration. (AFR)

• Hivery’s platform offered retailers an AI-powered analytics platform to optimise merchandise and products. 

• $61M had been invested, including a $30M Series B round led by Tiger Global. Other investors in that round include AS1 Growth Partners, Blackbird and OneVentures. (TechCrunch)

⚡️ Startup Retro ⚡️

NZ-based Auror raises $74.3M Series C for retail crime intelligence platform

Founders: James Corbett, Phil Thomson & Tom Batterbury

New Zealand-based retail crime intelligence platform Auror has raised NZ$82 million (A$74.3 million) in a Series C round, valuing the company at over A$500 million. The funding, co-led by Woolworths-backed W23 Global, Axon Enterprise, and Reinventure, will fuel R&D, expand headcount, and drive growth in the US and UK. Other backers include Movac, GD1, K1W1, New Zealand Growth Capital Partners (NZGCP), and Folklore Ventures.

The raise follows the resolution of a privacy investigation by the Australian Information Commissioner, which was sparked by concerns over the Australian Federal Police's use of Auror. 

Auror’s software, used by 150,000 users across 45,000 stores globally, enables retailers and police to report theft, profile offenders, and share intelligence. Major clients include Coles, Woolworths, Bunnings, and global retailers like Marks & Spencer and Boots. Law enforcement agencies in over 3,000 jurisdictions also use the platform.

The product suite has several main products. The Intel product empowers a frontline worker to report incidents and capture essential details and evidence. This is then shared across the retailer's entire network. An AI program then uses these assets to identify patterns and link individuals involved in multiple events, based on the insight that retail crime is often committed by repeat offenders.

Due Diligence: Press Release, AFR, Retail World, Startup Daily

CitoPlus secures investment from 1835i (ANZ) to make commercial broking faster and more efficient

Founders: Graham Strain and Richard Winkett

CitoPlus, a Melbourne-based brokerage platform, has secured an investment from the venture fund backed by ANZ Bank, 1835i. CitoPlus is a digital platform streamlining loan applications for brokers serving small to medium enterprises (SMEs).

CitoPlus put itself on ANZ's radar after winning a fintech award at an ANZ-sponsored event. While financial details remain under wraps, the investment includes a broader collaboration featuring funding and commercial ties, set to launch in 2025.

By automating data collection from over 15 leading information providers, the platform pre-fills key deal components, including financials, business structures, and serviceability metrics. This automation reduces manual tasks, allowing brokers to focus on client relationships and deal structuring. Additionally, CitoPlus provides secure document management, digital ID capture, and consent management, ensuring a seamless and efficient experience for both brokers and their customers. 

CitoPlus can work with lenders offering equipment finance, commercial property lending, working capital and term loans. 

Due Diligence: Capital Brief

Matched secures angel round for advisor matching platform

Founders: Susan Hion-Jarvis and Jessica Box

Matched, a matching platform founded by former Linktree executives Jessica Box and Susan Hion-Jarvis has raised nearly $500,000 in an angel round. Backers include Modibodi founder Kirsty Chong, Bree Johnson of frank body, and the Alice Anderson Fund by LaunchVic. Matched connects users with trainers and advisors to help achieve personal and professional goals, from career transitions to fitness milestones.

The platform facilitates learning through 1:1 sessions, group interactions, and curated content. It fosters reciprocal learning by allowing participants to act as learners and trainers. To celebrate its launch, Matched offers 100 free training sessions with prominent advisors, including Kic co-founder Laura Henshaw and Culture Amp’s Rod Hamilton.

CEO Jessica Box describes Matched as a “virtuous circle” aimed at empowering users to achieve their aspirations. The platform removes barriers to mentorship by streamlining access to credible advisors without requiring warm introductions or networking events.

Due Diligence: Startup Daily, Smart Company

New Fund, Who’s this?

Scalare Partners, a startup advisory and investment firm, has secured $4.3 million in its backdoor listing on the ASX, falling short of its $8 million target. (Startup Daily)

• The raise, valued at $0.25 per share, issued 17.2 million shares, valuing the business at $23.7 million. The ticker symbol is now SCP, trading live as of 14 November.

• The listing hit regulatory hurdles when ASIC flagged Scalare's prospectus for lacking disclosure on US expansion plans and asset valuations, temporarily halting the process. However, they ultimately proceeded, with funds earmarked for startup investments ($1.3 million) and working capital ($2 million).

• Scalare operates as an accelerator that provides commercialisation, finance, and more services to startups so they don’t have to hire in-house. This year, it acquired the Tech Ready Women Academy.

🎆 Wins 🎆 

Quadrant Private Equity sold its majority stake in Quad Lock, a Melbourne-based outdoor phone mount manufacturer, to Thule for $500 million. (AFR)

• The deal includes an 80% cash payment and 20% Thule shares, giving Quadrant a 1% stake in Thule.

• Quad Lock founders Rob Ward and Chris Peters retain shares in Thule, aiming to leverage Thule’s expertise to expand into new product categories. 

• Initially a Kickstarter project with 666 backers that pledged $41K, Quad Lock has grown to millions of users and around 100 employees.

• Under Quadrant’s ownership, Quad Lock’s sales surged from $48 million to over $200 million, with earnings increasing from $10 million to $50 million.

 👀 Vibe Check 👀 

💁 How the “brilliant jerk” conversation unfolded this week

• After Craig Blair’s initial comments at the TCA event (see: Headlines), quite the discussion kicked off online…

• Craig Blair went straight to LinkedIn to clarify his meaning of “deeply flawed,” which he said was more akin to an obsession with solving problems rather than tolerating brilliant jerks. The AFR Rear Window column was quick to respond to his response…

• Meanwhile, prominent founder (Normal & Fuzzy) Lucy Wark highlighted on LinkedIn that brilliant leaders aren’t brilliant if they lead through harassment and bullying.

• VC (Main Sequence) Elaine Stead took to her blog to ask - when is the brilliant jerk, just a jerk?

• StartupDaily’s Editor Simon Thomsen wrote a poignant piece connecting the dots between this and the ‘bigger picture’, including the recent US Election and subsequent political appointment of Elon Musk.

💸 Airwallex joins the Pledge 1% initiative, pledging 1% of its equity, valued at $84M, to support charity and initiatives fostering the next generation of entrepreneurs and innovators. (The Australian)

• The funds will support programs like Airwallex's $3M partnership with the University of Melbourne to increase Australia’s tech talent pool and fund scholarships and education costs for students.

• The initiative aligns with younger workers’ demands for purpose-driven employers, offering staff opportunities to engage in philanthropy and volunteerism.

• Read more about the initiative on the Airwallex newsroom here.  

Aussie Raisins 🚀 

NexLaw, a Sydney-based AI assistant for lawyers, has initiated a $5 million capital raise to support its expansion in Australia. 

• NeXa, Nexlaw's flagship product, streamlines trial preparation, legal research, and case analysis for law firms.

• Their other tool, the ‘AI Trial Co-Pilot’ enables secure case file uploads, jurisdictional analysis, and predictive reporting, culminating in a comprehensive brief ready for court.

• Reach out directly to the founder, Francis, for more information on the raise here.

Are you a startup currently raising capital and looking for more coverage? Reply to this email, and we could include you next week.

📍 Notice Board 📍 

Our friends at ClimateSalad are hosting the Australian Climate Tech Connect & Awards 2024 in Paddington Town Hall.

• This event is a one-of-a-kind opportunity to connect with investors, founders and industry leaders while celebrating the achievements of the Australian climate tech industry in 2024. This inspiring evening will feature a keynote from multiple Walkley Award-winning journalist Tracey Spicer and the 2024 Australian Climate Tech Award presentation.

• The list of investors and amazing founders attending is too long for this newsletter and promises to be an excellent night for climate tech entrepreneurs, operators, investors, mentors, stakeholders, and advocates.

• Wednesday 27th November 2024, 5pm at the Paddington Town Hall, Sydney. Grab your tickets here!

Press Play Ventures is on the hunt for Australia’s best women startup founders for its third cohort!

• They've helped 85 women founders in just ONE year - that's 85% of their two-year goal!

• Founders can test-drive startup ideas for just 4-5 hours a week and keep a day job while progressing their ideas.

• Participants keep 100% equity - Press Play is all about founder success.

• Full or partial scholarships worth $4,700 for each participant.

Applications close on 30 November 2024. Learn more and apply here.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♀️ Unsolicited Feedback (Podcast), hosted by Brian Balfour & Fareed Mosavat

• I discovered this podcast last week and dug back into the archives a little to find a conversation with Kieran Flanagan (Zapier, Hubspot) on “The New AI Marketing Playbook”. I’ve been following Kieran on LinkedIn for a while now - he has consistently great takes on B2B marketing. This ep offers a fascinating insight into how AI is completely changing the way marketers think about their roles and how it can be used to scale personalised content execution.

Will’s Pick 💁‍♂️ Zero to $9m in 4 years: How Chris Peters & Rob Ward Built the Quad Lock from a Kickstarter Project (YouTube)

• In researching the Quad Lock deal this week, I discovered this awesome interview from 6 years ago with the founders. The interview focuses how they kickstarted the project and scaled it with a bootstrapping mindset. They focused on being global from day one, a task a little harder when the likes of Shopify weren’t around.

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‘Til next time,

👋 Will & Gem

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