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. 🚀

An extra special welcome to the 13 new subscribers who’ve joined us since the last edition! 🎉

👀 Headlines 👀 

🏆 Labor shelves overhaul of sophisticated investor test changes, and the startup community breathes a sigh of relief.

• The review considered raising the wealth threshold for "wholesale investors" from $2.5 million in net assets, which has remained unchanged for over two decades. The share of people qualifying as wholesale investors has increased from 2% in 2002 to 16%.

• ASIC and the Financial Services Council recommended increasing the threshold to $4.5-$5 million.

• It's important to note that the proposal has not been cancelled; it has just been shelved. The UK has just returned their sophisticated investor tests to lower levels, having trialled a similar program.

🧑‍💻 New report reveals women in tech are paid 14% less than men and experienced 2x the amount of harassment.

• In slightly positive news for the startup world, the report noted that workers in the 'New Tech' sector at companies like Atlassian, Canva, and Xero, for example, enjoy higher base salaries and pay rises compared to their equivalents in the games industry and the public sector.

🎨 Canva launches enterprise product with a cringey new song.

• If the mission was to get attention, then the mission was accomplished 🚀.

• The launch follows the development of the enterprise business, which is chasing down larger business clients.

  • These clients (and their typically large subscription values) will help investment bankers get excited as Canva prepares for its IPO on the NASDAQ.

  • In separate but relevant news, SVP & GM for Enterprise Javier Soltero, who had been working for around six months at Canva following a few years of advising, has left his role and returned to being an advisor.

🌯 GYG will IPO at a $2.2B valuation on June 20th with no general public offer.

• The IPO will see 11.1M shares sold to raise $242.5M, with $42.5M worth sold by existing shareholders.

• The listing will occur on the ASX, which is a chance for GYG’s biggest shareholders to secure some liquidity. Major investors include TDM Growth Partners and Barrenjoey. Other investors on the journey include Athletic Ventures and Aware Super.

• Following the IPO, GYG plans to open 30 new restaurants in 2025.

• At its core, though, GYG is listed at 38x underlying EBITDA, and some analysts consider it pretty expensive.

 ⚡️ Startup Retro ⚡️ 

UpDoc secures $20M to scale and expand telehealth platform with first external raise

Founders: Dylan Coyne & Clifton Hodgkinson

Sydney-based UpDoc, a digital health platform providing telehealth services, including consultations, online prescriptions, referrals and medical letters, has landed $20 million in funding from ASX-listed VC Bailador Technology Investments.

Founded in 2021 by Dylan Coyne and Clifton Hodgkinson, Updoc offers these services in a one-off or monthly subscription model. The investment is Updoc's first external funding after facilitating over 200,000 consultations.

The funds will enhance Updoc's tech build, accelerate its product roadmap, and support expansion. Updoc, which also operates in the UK and partners with Uber Australia for driver healthcare, was the 2023 Deloitte Rising Star winner with 15,924% growth. What's UpDoc? UpDoc's revenue, apparently.

Bailador, known for its focus on online healthcare, has made this its 15th startup investment. It has previously backed Access Telehealth, Mosh, and InstantScripts.

Coyne and Hodgkinson, former Canva and Uber employees, stated that Bailador's investment will fast-track Updoc's mission to improve healthcare access and lower costs, facilitating its growth and expansion.

Due Diligence: Mobi Health News, Startup Daily, Bailador Investment Note

WeMoney raises $3M to help Australians with their financial wellbeing through Open Banking Solutions

Founders: Daniel Jovevski

Perth-based fintech WeMoney has raised US$3 million to bolster its presence in the regional financial wellness sector. This round, led by existing investors, follows a US$7 million round in 2022 and a US$2 million Seed round in 2020. The raise also coincides with a partnership with Mastercard.

WeMoney aims to leverage this funding to capitalise on expansion opportunities and enhance its standing in Australia's Open Banking landscape. The platform connects to users' financial accounts, providing a comprehensive view of their financial health. The app offers read-only access to track balances, transactions, bills, bank accounts, and credit scores, helping users discover ways to save and pay down debt faster.

The partnership with Mastercard allows WeMoney to integrate into Mastercard's Open Banking solutions. The partnership includes entrance into the Start Path Open Banking program, which gives access to a combination of co-innovation opportunities and engagement with Mastercard's global network of banks, merchants, partners, and digital players.

The company also plans to raise a larger US$10 million round to further develop its products and services.

Due Diligence: FinTech Global

Humii raises $300,000 pre-Seed to scale mystery shopper platform

Founders: Andy Evans & Mareile Osthus

Sydney-based startup Humii has secured a $300,000 pre-Seed round from Melbourne's early-stage VC Skalata. Co-founded by former Deloitte director Andy Evans and ex-CCO of The Iconic, Mareile Osthus, Humii aims to revolutionise customer experience (CX) tracking in the online retail sector by reintroducing mystery shoppers in a scalable, data-driven manner.

Humii's platform enlists mystery shoppers to evaluate brands across eight dimensions, from discovery to purchase, and retention, covering over 200 data points. This qualitative feedback provides valuable insights, such as necessary website improvements, that traditional analytics tools often miss.

Leading brands like New Balance, Pet Barn, BCF, and Lorna Jane are already using Humii's insights to better understand customer perceptions and improve their online CX. The goal is to establish a standardised global CX score that integrates into retail operations, allowing companies to access multi-market data comprehensively and act on it effectively.

As e-commerce faces challenges like rising marketing costs and competition from low-cost disruptors, Humii helps brands focus on converting existing site visitors rather than solely attracting new ones.

Investment Notes: Skalata

Due Diligence: Startup Daily

Zeta Markets secures US$5M to develop crypto trading platform built on Solana for super fast and cheap trades

Founders: Tristan Fizza

Zeta Markets, a decentralised exchange (DEX) for crypto trading, has secured US$5 million (~A$7.5M) in funding led by Electric Capital, with participation from DACM, Selini Capital, Airtree Ventures, and notable angels, including Solana's Anatoly Yakovenko. This investment aims to develop Solana's first layer-2 solution focused on decentralised finance (DeFi), integrating central limit order books and enabling seamless bridging from Solana. Zeta is now based in Singapore, but its founder, Tristan, was originally from Sydney.

The company aims to build a comprehensive trading platform that offers DeFi transparency without sacrificing convenience and speed. This funding boosts Zeta Markets' total funding to US$13.5 million and will accelerate their platform's redesign. AirTree co-led that previous round.

What is a decentralised crypto derivatives platform? In short, it's aiming to offer efficient, low-cost options trading for both retail and institutional traders. By leveraging the Solana blockchain and Serum's orderbook engine, Zeta provides a high-speed, low-fee trading experience with features like under-collateralised trading, portfolio cross-margin, and instant settlement.

Their platform targets the currently underserved crypto derivatives market, initially focusing on European options for SOL/USDC and expanding to other popular cryptocurrencies. With strong technical expertise and community support, Zeta is poised to transform the DeFi landscape.

Zeta Markets has already achieved significant milestones, surpassing $6 billion in trading volume and attracting over 100,000 monthly active users.

Investment Notes: AirTree

Due Diligence: Crypto Briefing

Phonely enters YC with $750K investment for AI-driven phone answering service

Founders: Will Bodewes & Nisal Ranasinghe

Melbourne-based Phonely has secured a US$500,000 investment from Y Combinator. Founded by PhD researchers Will Bodewes and Nisal Ranasinghe from the University of Melbourne, Phonely's AI receptionist can handle up to one million calls simultaneously, offering businesses a lifelike phone support system at-scale. Joining the elite group of less than 20 Australian startups that have entered Y Combinator, Phonely has quickly become one of the accelerator's most viewed and shared launches. In just three days, Phonely's user base grew by over 500%.

Phonely's AI system is designed to ensure accurate and rapid responses; the service operates 70% cheaper than traditional answering services, addressing the critical issue of missed calls in small and mid-sized businesses, which often miss 37% of business calls.

Large language models (LLMs) have to be carefully trained on client data. Phonely combines its own data with the client's website to extract relevant information automatically. The software then connects to other platforms like Google Calendar and Zapier to make it easier to manage appointments.

The goal is to enhance customer support without replacing human receptionists, ensuring businesses can provide better service without the hassle of being put on hold.

Investment Notes: Y Combinator

Due Diligence: Business News Australia

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

🥳️ Wins 🥳

💸 X-TEND WA has announced the 6 recipients of ~$550k worth of grants. Here’s the list 👇️ 

• Horizons by Atomic Sky

  • Supporting Indigenous female leaders and entrepreneurs in regional WA, including the Pilbara. Funding: $100,000

• Jarndu Garra by Enterprise Partnerships WA

  • Bringing together First Nations female entrepreneurs to drive innovation in the bush foods and botanical industry. Funding: $97,300

• IDEAcademy Regional Development

  • Expanding a successful Perth-based program for young entrepreneurs into the Peel region. Funding: $100,000

• Connecting the City of Karratha to WA’s Innovation Ecosystem by SEED Innovation Foundation

  • Developing entrepreneurial education within the City of Karratha. Funding: $100,000

• VentureX HQ

  • Enhancing investment capabilities within the innovation ecosystem. Funding: $100,000

• Women Inspiring Better Business Female Entrepreneur Education by WIBB Network

  • Empowering female entrepreneurs and founders in Geraldton through education, mentorship, and community support. Funding: $50,000

📌 Notice Board 📌 

🎤 Pitch Opps | 🚀 Accelerator | 🏆️ Competition/Award | 💰Grant | 📅 Event | 🎓️ Course

📆 New Angel AMA with Cheryl Mack 📍 Online, 4th June

• Curious about becoming an angel investor? Join Cheryl Mack (Aussie Angels) for this quick fire AMA session, with ongoing events held on a monthly basis, on the first Tuesday of each month. Register here.

🏆️ Startup Daily 'Best in Tech' Awards - get your nominations in!

• There are 15 award categories, for both individuals and companies/ organisations, all designed to celebrate the best of Australia's startup community.

• Nominations close at midnight on Monday 10 June 2024, with finalists announced on the 15th of July and a Gala dinner on the 4th of September to announce the winners!

🚀 Macquarie Incubator membership applications now open

• The MQ Incubator (run by Macquarie University) provides startups with access to a supportive community, co-working desks, offices and laboratories, regular workshops, a network of over 50 experts for on-demand mentoring and support, and links to leading university research networks. Interested? Memberships are $300+GST per month. Apply here.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♂️ VC firms rarely take their own advice, by Alan Jones

• I found this article by proud OS reader and Aussie startup ecosystem stalwart, Alan Jones, a fascinating thought-starter.

• What I found most enjoyable about this read was that it vocalised a bunch of questions I’ve had for a while about the way VCs operate, but probably been too scared to ask out aloud as someone who’s never worked in VC or been an investor (what would I know, right!?). It was refreshing to hear someone as respected and experienced in the space share his thoughts and make me feel not so silly after all! 😂

Will’s Pick 💁‍♂️ The GTM guide to building SaaS channel partnerships

• This week, OpenAI inked a deal with PwC to allow the consulting firm to use the platform and resell the software to its clients. It got me thinking about how someone would structure a deal like that, and I found this neat little article on channel partnerships for SaaS businesses. It covers how they’re generally set up and how everyone is paid.

  • As a channel partner, PwC is probably acting as a mix of value-added resellers and a service partners who will implement and train the end users.

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‘Til next time,

👋 Will & Gem