💌 Aussie Startup & VC Summary | 22nd 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. 🚀

We have some news!! Overnight Success has made it as a finalist of Pitchapalooza with a secret project we’ve been building!

Our pitch will be included in the elimination round 1 this Monday, 24th of March, at 4 pm. If you want to get involved, please sign up for the livestream here and vote for us during the public vote!

👀 Headlines 👀 

👤 The Shadow Treasurer Angus Taylor slams PsiQuantum's investment, calling it a poor use of taxpayer funds during a cost-of-living crisis and pledges to divert funding into Defence and nuclear energy. (Innovation Aus)

• If elected, the Coalition plans to wind back the $22.7 billion Future Made in Australia (FMiA) agenda, including cutting the PsiQuantum deal, citing inflation and spending concerns.

• The Coalition pledges to axe $100 billion in spending, including the $15B National Reconstruction Fund, $10B Housing Fund, and $20B Rewiring the Nation program.

💭 Australia’s VCs give their thoughts on the year ahead (AFR)

• We highly recommend reading the full article by the AFR for all the nuances, but here are the high-level topics and opinions.

• The funding winter is over: Most leading Australian VCs believe the “funding winter” is over, with capital deployment rising and many start-ups expected to return to the market in 2025. Valuations have normalised to pre-pandemic or 2016 levels, creating favourable investor conditions.

• AI is driving the market: Strong demand continues for AI-native businesses; investors say there's no AI bubble, though some predict a shakeout of companies without sustainable models. AI is seen as a real technological shift, particularly in applications like robotics (i.e. "physical AI").

• The public markets are reopening: VCs expect IPO windows to reopen in 2025 for Australia and the US but the ASX is viewed as less favourable for tech listings due to low volume, poor analyst coverage, and valuation discounts.

  • Canva’s upcoming IPO is seen as a major moment for Australian VC, with the potential to boost global investor confidence and recycle capital into the local ecosystem.

• The political climate and trump factor: Trump’s pro-tech stance, deregulation and space agenda are broadly positive for Australian start-ups. Local views on Australian political parties are split, but Labor has a slight edge in perceived support for the ecosystem.

• Increased foreign interest: US-based capital is returning to Australia, drawn by favourable valuations and Australia's track record in creating unicorns. Canva’s roadshow and AUKUS-related cooperation are expected to drive further international interest. 

🤝 Swyftx, Australia’s second-largest crypto exchange, buys NZ rival Easy Crypto. (AFR)

• Swyftx was founded in 2018 by Alex Harper and Angus Goldman. The company is 70% founder-owned and has been led by CEO Jason Titman since June 2024.

• Easy Crypto was founded in 2017 by Janine and Alan Grainger and serves 350,000 users across Australia, New Zealand, and South Africa.

• Swyftx previously acquired Superhero (share trading and Superannuation platform) in 2022 but reversed the deal in six months. 

📈 Immutable, the crypto gaming developer founded in 2018 by brothers Robbie and James Ferguson, reports a $79M loss for FY23 but achieves a 50% revenue increase with its new blockchain platform. (AFR)

• The new blockchain, ImmutableX, enables other game developers to facilitate in-game asset transactions and monetize by taking a fee on sales. Ubisoft has now adopted the technology. 

• Immutable maintains a strong balance sheet with $140M in cash and digital asset reserves.

⚡️ Startup Retro ⚡️

BetterFleet raises $24M Series A for sustainable fleet planning and operational management platform

Founders: Dan Hilson & Nick Butlin

BetterFleet, a US-based transport management platform founded in Sydney, has raised $24 million (US$15M) in a Series A to accelerate its AI-driven fleet optimisation software. The round was led by Aligned Climate Capital, Ecosystem Integrity Fund (EIF), and Remarkable Ventures Climate (RVC).

Founded in 2016 as EVenergi by Dan Hilson and Nick Butlin, BetterFleet started by managing electric bus fleets in Australia and the UK before Hilson relocated to the US in 2021. The platform now serves 200+ customers across Europe, APAC, and North America, including major transit, government, utilities, and logistics operators.

The platform offers advanced fleet transition planning tools and smart charge management systems. By utilising data analytics and creating digital twins of fleet operations, BetterFleet enables operators to make informed decisions about vehicle selection, charging infrastructure, and route optimisation. This approach helps minimise infrastructure costs, optimise energy consumption, and ensure seamless integration of EVs into existing operations.

BetterFleet now serves a diverse clientele, including transit bus fleets, government fleets, school bus fleets, and logistics companies. Its mission is to make zero-emission fleet transitions faster, more cost-effective, more straightforward, and lower risk for complex fleets.

Due Diligence: Startup Daily

BetterX lands $2.3M pre-Series A to make crypto trading easier for financial advisers

Founders: Calvin Ng, Adam Switzer and Eric Chau

Digital currency exchange BetterX has secured $2.3 million in a pre-Series A round to scale its B2B platform, allowing financial advisers to trade and securely manage digital assets for clients. The raise was supported by existing investors Aura Group and Tibra co-founder Kinsey Cotton, joined by newcomers such as Grand Prix Capital, Aument Capital, Sabrina Tachdjian from HBAR Foundation, and Crypto Knights' Riaz Mehta.

Founded in 2021, Sydney-based BetterX initially operated as Leonie Hill before rebranding last year. The platform addresses crucial security, asset custody, and compliance challenges, providing institutional-grade infrastructure for tokenisation, trading, and portfolio management. It’s registered with the Australian regulator AUSTRAC.

BetterX provides seamless connectivity to the world's most liquid and regulated digital asset and cryptocurrency venues, enhancing institutions' trading capabilities. Features include dependable connectivity, extensive liquidity access, intelligent order routing, and a single API integration to streamline processes. The platform also offers tailored white-label solutions, allowing institutions to provide their customers with a seamless crypto trading experience, complete with advanced features like sophisticated pricing engines, auto-hedging, and smart order routing.

The funding will fuel BetterX’s expansion into Asia, alongside exploring new opportunities in the Middle East and the US. Having already achieved profitability in Australia, the startup aims to capitalise on growing institutional interest in digital assets.

Due Diligence: Startup Daily

Arkeus raises $5M for defence optics systems across air, sea, land and space

Founders: Simon Olsen and Dr Jonathan Nebauer

Melbourne-based defence tech startup Arkeus has raised $5 million in follow-on funding from existing investors, such as Main Sequence, Salus, and Beaten Zone Venture Partners. The fresh capital follows a $4.5 million seed round in December 2023 and will help the company scale production of its Hyperspectral Optical Radar (HSOR) systems.

Founded in 2020 by defence expert Simon Olsen and aerospace engineer Dr Jonathan Nebauer, Arkeus builds autonomous surveillance platforms that combine advanced optics, AI, and edge processing to detect threats across land, sea, and space. The HSOR system is designed to process complex visual data in real-time, delivering actionable intelligence in contested or low-connectivity environments.

Arkeus has several other products, including DRT, AI software that identifies and tracks objects from EO/IR sensors. ELMO is a disposable imaging sensor for low-cost, real-time surveillance in contested zones. SLICE is an AI compression tool that shrinks imagery data up to 1000x without losing detail, and HeliSAR can operate day or night and is a helicopter-based radar for search and rescue.

Already operational across all three branches of the Australian Defence Force, Arkeus' technology has been deployed on over six platforms, with successful trials both locally and abroad. Use cases range from border security to counter-terrorism and search and rescue.

With a 10x surge in demand, CEO Olsen says the fresh funding will boost manufacturing and meet growing interest from defence partners. The move also reflects investor confidence in Australia’s sovereign tech capabilities as the country sharpens its focus on AUKUS Pillar II initiatives.

Due Diligence: Startup Daily

🎉 Wins 🎉 

🖥️ Simcoa, Australia’s only silicon manufacturer, received a $39.8 million grant to help secure a key input for solar panels and semiconductors. (Innovation Aus)

• The grant comes from the Powering the Regions Fund to replace coal with renewable charcoal at its Wellesley, WA processing plant.

• This will cut emissions by 89% (100,000+ tonnes per year), aligning with Australia’s Future Made in Australia policy to strengthen local solar supply chains.

• The Powering the Regions Fund funds heavy industries to help Australia transition to net zero by 2050. Companies can receive up to $50 million per grant.

📰 Mercurius Media Capital launches Mercurius Bridge, a pathway for Australian startups to expand into the U.S. via media-for-equity investment, strategic mentorship, and access to premium U.S. media platforms. 

• The $90M fund provides local founders guidance, advertising support, and a network to accelerate U.S. market entry. Notable successes include Airtasker, which has leaned heavily on Media for Equity deals to reach consumer audiences.

🧠 Cortical Labs has launched its first product, the CL1, a biological computer that combines living brain cells with silicon. This comes six years of R&D and their viral breakthrough showing the tech could learn to play Pong. (Capital Brief)

• The CL1 debuted at Mobile World Congress and is now available via cloud access and direct hardware sales to academics and R&D labs, with strong early interest but limited manufacturing capacity.

• Founder Hon Weng Chong, in this interview with Capital Brief, highlights challenges in hardware manufacturing, particularly in Australia, leading to the establishment of a Malaysian subsidiary after more support from the Malaysian Government.

• Capital constraints still remain a major hurdle despite raising $10M and generating early revenue.

👀 Curated Opinions 👀 

🎤 Dom Pym, the serial fintech founder (Up Bank, Euphemia, Triple Bubble), argued at Southstart for greater government incentives to boost VC and early-stage startup investment in Australia. (Innovation Aus)

• Pym called for dollar-for-dollar matching for equity crowdfunding to double available funding for startups, similar to the UK’s Enterprise Investment Scheme.

• Pym argues that matching VC funding under specific criteria could grow the VC market from $15B to $30B.

📆 Notice Board 📆 

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)

Will’s Pick 💁‍♂️  The Fundraising Blueprint: The Founder-Approved Guide, Written by a Venture Capitalist - Abhishek Maran

• Long-term readers of this newsletter will know that I often share the newsletters written by Abhi as they offer sage advice on startups, building, and raising capital. So, I’m super excited to share that he’s condensed all that knowledge into a short book. You can buy this book and will also get some Notion resources you can use on your fundraising journey.

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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.