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 66 new subscribers who’ve joined us since last edition - you’ve joined us for a big week of milestones!

This week we’re celebrate both…🥁 

• Our 100th edition of OS, 🎉 and

• Officially hitting 3000+ subscribers! 🎉 

To help mark the occasion, in this edition we have 2 exclusive raises not covered anywhere else, we announce the results of our Sunrise ticket competition and launch ANOTHER startup festival ticket competition (see Notice Board 👇️)!

🔥 If your version of the newsletter gets cut short, never fear, you can read the full version without interruption here.

👀 Headlines 👀 

⚒️ The Future Made in Australia Act receives mixed reviews

• Sam Ringwaldt, the co-founder of Conry Tech, a green HVAC innovator, wrote that he fears the funding won’t go to innovative early-stage startups and will instead hit the coffers of big business due to its bond-like investment return of 2-3%. 

🎲 Blackbird’s early cheques are great, but no follow-on investment sends a challenging signal to other VCs

• The AFR astutely pointed out that not every early-stage investment made by Blackbird receives follow-on investment from the fund and may need to seek alternative funders.

• Other investors in the startup can sometimes be a little put out by the lack of follow-on investment from the big fund that may have previously led a round. Talk about a rock and a hard place…🪨

☀️ Indigenous businesses in Australia generate $16 billion annually and employ over 116,000 people

• The study examined 13,693 businesses operating in 2022 which pay $4.2B in wages a year. The full report can be accessed here.

⚡️Startup Retro⚡️

WorkRex lands $220K to develop communication channel management AI tool for SMBs

Founders: Lance Qian, Jing Chen, Myron Liu

WorkRex, a Melbourne-based platform initially focused on the optometry industry, is reshaping how small and medium businesses (SMBs) connect with customers and staff through affordable, integrated communication tools. Co-founded by Lance, Jing, and Myron during the 2020 lockdown, WorkRex began by offering flexible staffing solutions via their platform Locumly, quickly capturing 20% of Australia’s optometry market.

The team pivoted after seeing clearly (optometry pun) the broader challenges SMBs faced in marketing and communications, which were often fragmented across multiple tools. WorkRex now offers a streamlined platform that automates 80% of the manual work involved in running personalised campaigns, dramatically improving efficiency and engagement rates. Their solution integrates communications across various channels like WhatsApp, enabling businesses to maintain more personalised customer interactions.

The funding enables WorkRex to scale its capabilities, targeting multiple high-touch industries outside its core in optometry. The future is bright as Australia has over 2.5 million SMBs, and clients are seeing strong ROI via better information recall and 2x the number of 5-star Google Reviews.

Investment Note: Skalata

Sumday secures $5.3M Seed round for carbon accounting platform

Founders: Jessica Richmond, Danny Hoare and Lindsay Ellis

Tasmanian carbon accounting startup Sumday has secured a $5.3 million Seed investment led by US climate tech investor Planeteer Capital. The funding round also saw participation from previous backers, including Blackbird, Possible Ventures, Wedgetail Ventures, and Canva co-founder Cameron Adams.

Founded in 2021, Sumday specialises in providing subscription-based software that enables accountants and bookkeepers to offer non-financial services, starting with carbon accounting. Originating from Burnie, Tasmania, the startup now supports around 50 accounting firms in managing greenhouse gas emissions across supply chains, particularly focusing on scope three emissions encompassing the entire value chain.

This latest investment, which follows a $2 million pre-Seed round, will fuel Sumday’s expansion into the US, UK, and EU markets while continuing to democratise access to robust, audit-ready greenhouse gas accounting globally. The platform is already used by KPMG, Pitcher Partners and WilliamBuck.

Sumday emphasises the importance of making its tools accessible and affordable, ensuring companies can either delegate this critical function or enhance their in-house capabilities. As Sumday grows, it remains rooted in its Tasmanian origins and its mission to address pervasive issues in environmental accountability.

Due Diligence: Startup Daily

Bygen secures $2.6M Series A to transform agricultural waste into activated carbon

Founders: Dr. Lewis Dunnigan and Ben Morton

Bygen, an agricultural waste conversion startup based in Thomastown, Victoria, has raised $2.6 million in Series A funding. Bygen can transform waste into activated carbon for environmental detoxification. The round includes a $1 million contribution from the government-backed Breakthrough Victoria, alongside investments from Alberts Impact Ventures, Investible, Artesian, and Startmate.

Founded in 2018 by the University of Adelaide researchers Dr Lewis Dunnigan and Ben Morton, Bygen aims to replace coal-based activation methods to reduce CO2 emissions, water use, and costs. The startup initially raised $350,000 and has developed a pilot plant in Melbourne that utilises agricultural byproducts like almond shells and rice husks.

Bygen’s activated carbon has multiple uses, including drinking water treatment, gold recovery, and air filtration in car cabins. Notably, the product effectively removes PFAS—a persistent environmental pollutant—from various mediums.

The fresh capital will enable Bygen to test and establish a large-scale production facility. The company plans to construct additional commercial plants in Australia and internationally, potentially creating 65 new jobs in Victoria over five years.

Due Diligence: Startup Daily, Business News Australia

Diversity Atlas banks $6M bridge round to develop DEI data analytics platform

Founders: Peter Mousaferiadis

Melbourne-based Diversity Atlas, a Victorian startup specialising in diversity, equity, and inclusion (DEI) data analytics, has raised $6 million in a bridge round from Canadian impact investment platform Gener8 VC.

The funding will be used to double its team of 35 and expand into the EU and North American markets. Currently utilised in 40 countries, Diversity Atlas was developed from initial R&D within Cultural Infusion in 2016 and launched independently in 2019.

The platform, which has collaborated with Amazon to help AWS understand its global workforce, provides organisations with detailed insights into their cultural diversity makeup. This enables leadership teams to drive change, build engagement, and achieve ESG goals. Diversity Atlas is featured as a foundational tool in the AWS Inclusion Playbook.

The analytics powering the platform is backed by over seven years of scientific, peer-reviewed research involving data engineers and anthropologists. The platform’s extensive dataset includes over 45,000 human identity data points, making it a critical resource for organisations of all sizes, from small teams to global giants like Amazon.

Gener8 VC’s founder Kurt Menzies praised Diversity Atlas for possessing the largest dataset of its kind and providing valuable, granular insights that promote a positive and economically productive work environments.

Due Diligence: SmartCompany

SupplyScope snags $300K to streamline product development and compliance for D2C sellers

Founders: Preet Singh and Raman Singh

SupplyScope, the Sydney-based platform revolutionising the supply chain and logistics industry, has raised $300K from Skalata. The product focuses on streamlining seller product development and compliance processes. Preet’s innovative use of a “spreadsheet on steroids” to manage product testing and compliance efficiently inspired the platform, sparking significant interest among businesses.

This comprehensive platform provides a single interface for product developers, facilitating everything from sourcing to compliance management, thereby mitigating risks associated with returns and legal issues. With features like AI assistance, digitised specs, and integrated CRM, SupplyScope sets a new standard for managing product lifecycles in compliance-heavy industries like baby products, where safety and quality are paramount.

The platform connects with a growing network of vetting manufacturers to help users build products from scratch using product templates, a component library, and AI Assistance.

As online marketplaces continue to overflow with low-quality goods due to relaxed regulations (or lack of rigorous enforcement), SupplyScope offers a robust solution for sellers aiming to maintain high standards. The platform significantly reduces time-to-market and compliance costs, as evidenced by users in various industries, from furniture manufacturing to pharmaceuticals, experiencing decreased development times and cost savings.

Investment Note: Skalata

MGA Thermal secures $5.7M to build thermal energy storage system

Founders: Dr. Erich Kisi and Dr. Alexander Post

MGA Thermal, a clean energy startup based in Hunter Valley, has secured an additional $5.7 million to enhance its thermal energy storage (TES) system, bringing its total funding to $28.8 million. The funding round saw participation from existing backers Main Sequence and Melt Ventures, alongside new clean tech investor JEKARA.

MGA Thermal has developed Miscibility Gaps Alloy (MGA) Blocks, which are designed to store thermal energy from renewable sources like solar and wind. This technology enables long-term energy storage and the generation of 24/7 clean steam for industries and retrofitted power plants, functioning similarly to traditional coal-fired power systems.

Last year, MGA Thermal initiated a project to build a shipping container-sized demonstration unit containing 3,700 TES blocks capable of powering over 135 homes for 24 hours. However, development was paused to refine the system based on identified improvements. CEO Mark Croudace emphasised the pause was a learning opportunity that has prepared the team to resume and accelerate their development. It was reported that there was a dangerous heat build-up in the plant which required help from emergency services as the blocks had hit 1200°C.

The additional funding will support the next testing phase to validate the TES system’s scalability and efficiency in producing high-pressure, high-temperature steam. MGA Thermal aims to abate 30 million tonnes of CO2 by 2030 and continues to work with industrial partners to meet their decarbonisation goals through renewable energy solutions.

Due Diligence: Australian Manufacturing, MGA Thermal Announcement

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

👯 People Movements 👯

🪙 Rampersand gains two new partners with Taryn Pieterse promoted from Investment Principal and Andrew Poesaste, a seasoned early-stage investor from UK-based Angular Ventures, joining the team.

🦘 Skip Capital prompted Oliva Grivas to Investment Principal.

😇 Jess Walker moves on from Airtree to and will continue vibing with The Community Collective.

🥝 Phoebe Harrop will take on Blackbird’s footprint in NZ as Samantha Wong returns to Sydney.

🤑 Aussie Raisins 🤑

♻️ RecycleSmart, a platform that collects hard-to-recycle things from your doorstep, is running an EOI campaign on Birchal

• The ‘Power Pickup’ can take 100 hard-to-recycle items ranging from soft plastics to e-waste and everything in-between: textile, polystyrene, coffee cups, blister packs, pallet wrap, batteries, and more.

• The platform has done over 200,000 pickups with 60,000 users and is currently live in Sydney, Melbourne, Brisbane and Adelaide.

🤑 Accelerator Watch 🤑 

🧑‍🔬 $65M biotech incubator, Jumar Bioincubator ,based in Melbourne and partnered with CSL, University of Melbourne, WEHI, Cicada Innovations and Breakthrough Victoria, names its first 16 residents.

• Tessara Therapeutics: mimics the human brain to help with drug discovery.

• Symex Labs: developing a bio-sensor patch to track ovulation continuously.

• Denteric: developing a new therapy to neutralise Porphyromonas gingivalis.

• Australian Genome Research Facility: helping innovative genomics capabilities.

• Arovella Therapeutics: developing ‘iNKT cell therapy’ for to target various cancers.

• Centre for Biometrical Excellence: consultants for biopharmaceutical strategy in Asia.

• H3D: building software for custom medical device manufacturers.

• Immunosis: diagnoses immune disorders quickly with genomic tests.

• Inosi Therapeutics: develops therapies for fibrosis and inflammation.

• Novoroo: first-in-class therapies to promote neurological repair.

• Nutromics: continuous diagnostic monitoring with lab-on-patch product.

• Pacalis Therapeutics: serotonin receptor agonist to help mental health.

• Qankorey: Alzheimer's screening device assesses brain health.

• RAGE Biotech: targeting the Receptor for Advanced Glycation End-products (RAGE) for patients with difficult-to-treat inflammatory disease.

• Titan: contact research organisation (CRO) to help manage biopharmaceutical clinical trials.

• 23Strands: using whole genome sequencing will help you better understand your health journey.

🎉 Win of the Week 🎉 

💰️ Blossom App, the millennial-focused investment app that makes investing easier, hits $60 million in funds under management and launches new investment product targeting 7% returns. Read more from the founder here.

📌 Notice Board 📌 

🎤 Pitch Opps | 🚀 Accelerator/ Program |💰 Competition/Grant | 📅 Event

📆 💰️ Tropical Innovation Festival - 17th - 21st June 📍Cairns

• Want to WIN A FREE TICKET to this amazing, one-of-a-kind startup festival? Well you’re in luck! We’ve partnered with the lovely team at TIF to offer 2 tickets (which are almost sold out!) exclusively to our community. You can enter for your chance to win here!

• Don’t want to leave anything to chance? Check out the program & ticket options here.

📆 Startmate Demo Day - 2nd May 📌 Sydney

• Pitch night, networking event and good vibezzzz. This will be their biggest event yet with 1000+ seats at Blackbird’s Sunrise Event - tickets are selling fast - get yours here.

• Want to be part of the next cohort of ambitious founders taking the Demo Day stage? Applications are now open for Startmate’s Winter ‘24 cohort. Apply here.

📆 🎤 SXSW Sydney Session Select - voting closes on the 25th of April!

• SXSW Sydney is on again later this year and those looking for a sacred spot on the program are currently fighting it out in a race to get votes for their session submissions!

• If you want a say on what will make the Startup/Innovation program, you can vote here. Our top panel picks are:

  • You heard it on the Grapevine: Real Stories from SXSW ft. Kirstin Hunter, Sam Garven, Paloma Newton & Emma Earley.

  • How to Pivot Your Career: Lessons From Being Fired & Professional Setbacks to Starting a Sex Toy Company & Coaching Hundreds of People Through Career Transitions, with Lucy Wark and May Samali.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♀️ The Element by Ken Robinson and Lou Aronica

• I’m reading this book at the moment and really enjoying it. An oldie but a goodie, it talks about the importance and process of finding where your natural talent meets personal passion. I actually bought the sequel to this book - Finding Your Element - several years ago, which provides a practical guide to applying the theory in the first book. If you want the cliff notes, you can find it on Blinkist.

• Ken Robinson (who sadly passed away in 2020) was also a successful TED speaker - I love his talk “Do schools kill creativity?”, which starts to scratch the surface of the topics covered in his book.

Will’s Pick 💁‍♂️ Onboarding new team members by The Kool-Aid Factory is a KaaS shared by Polina Nesterova

• This article showed me all the things I haven’t been doing when new team members have joined the ranks! While targeted at larger startups who have established internal teams already, but there are some very scaleable and actionable things like a ‘spin-up buddy’ and ‘spin up project’.

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

• 🦤 Find us on Twitter: Overnight Success, Will, Gem

• 👔 Holler on LinkedIn: Overnight Success, Will, Gem

• 💌 Email

• 🚀 Want to work with us? Check this out or contact us via email to learn about our sponsor & partner opportunities.

‘Til next time,

👋 Will & Gemma