💌 Aussie Startup & VC Summary | 24th May, 2025

G’day and welcome to your weekly edition of Overnight Success - your download on all the important things that have happened in the Aussie startup ecosystem. 🚀 

👀 Headlines 👀 

⚒️ More than 100 employees at Canva and Atlassian have joined the Professionals Australia union since December, driven by fears that AI will replace their roles. (AFR)

• The shift reflects growing tension between employees and tech giants over the deployment of AI, particularly as both companies introduce AI tools across workflows.

• Canva recently introduced formal AI usage guidelines, after cutting most of its technical writing team and encouraging engineers to use AI tools for daily tasks.

• Historically, unionisation in Australia’s tech sector has been rare due to high pay and generous benefits, but economic tightening and IPO pressures are shifting attitudes.

🥧 ANZ Startups lead globally in ESOP participation according to Carta’s 2025 startup equity report

• Australian & New Zealand (ANZ) startups set aside a median of 12.6% of their total equity in employee stock option pools (higher than the APAC median of 10.0%). 

• According to the report, ESOPs in APAC and the middle east expand from 7% of fully diluted equity at the pre-seed stage to 11% at seed, but remain in the 11-13% range at later fundraising stages. ANZ startups have larger ESOPs than those in ESEA or MESA.

• In 2024, 51.8% of employee stock options in ANZ were exercised by employees, exceeding the US rate of 32.2%, more than double the rate in East and Southeast Asia (22.8%), and over triple that of the Middle East and South Asia (14.5%).

🏛️ New Industry and Innovation Minister Tim Ayres has outlined his early agenda, touching on research funding, R&D reform, and the 'Future Made in Australia' policy. (Innovation Aus)

• He pledged to better integrate Australia’s research and innovation system with industrial policy, especially in strategic areas like green hydrogen, quantum computing, and advanced manufacturing.

• Ayres defended the framework against criticisms of “picking winners,” stressing that it’s not protectionism but a partnership between government and private sector to boost productivity and secure prosperity.

✂️ Breakthrough Victoria’s funding has been cut from $2 billion over 10 years to $1.68 billion over 15 years, but a new $150M Victorian government fund to be created.

• Internal sources confirm the fund now has around $100 million to deploy annually, down from a possible $200 million, following a cost-cutting review by the Victorian government. (AFR)

• A new $150 million Victorian Investment Fund, focused on sectors like advanced manufacturing and defence, could overlap with Breakthrough Victoria and LaunchVic. (Innovation Aus)

• Stakeholders report communication breakdowns with Breakthrough Victoria, while NDAs prevent them from speaking publicly about concerns.

⚡Australia’s grid is struggling under the weight of AI usage and new data centres (AFR)

• Australia’s energy market operator (AEMO) has called for new electricity grid rules to manage the surging power demand from data centres driven by artificial intelligence.

• Data centres are consuming growing amounts of electricity, with some expected to use as much power as small cities; they could represent up to 15% of national demand by 2030.

• The Australian Energy Market Commission (AEMC) warned that unmanaged data centre loads could worsen grid instability during power disturbances due to their tendency to disconnect en masse when power quality drops.

☢️ Speaking of power… HB11 Energy, Australia’s only nuclear fusion startup, is shifting focus to the US due to a lack of domestic support. (Smart Company)

• HB11 uses a novel laser-based hydrogen-boron fusion method, which is cleaner but harder to initiate than the more common magnetic (tokamak) approach used globally.

• Dr Warren McKenzie, founder and managing director, said in an interview with SmartCompany, “Noone wants to touch anything nuclear with a barge pole in Australia,” andthere’s this assumption that fusion falls into the general nuclear basket. “

⚡️ Startup Retro ⚡️

Airwallex raises $467M Series F at USD $6.2B valuation as it eyes an IPO

Founders: Jack Zhang, Jacob Dai, Lucy Liu, Max Li, and Ki Lok Wong

Airwallex has raised a staggering $467 million (US$300M), marking one of Australia’s largest startup funding rounds to date. The raise brings together the country’s three largest VCs; Square Peg, Blackbird, and Airtree. alongside global players like DST Global, Visa Ventures, and Salesforce Ventures. The round values the global payments giant at US$6.2 billion.

Founded in 2015 by Jack Zhang and his University of Melbourne classmates, Airwallex has scaled rapidly from cross-border payments to a full-suite financial platform offering bank accounts, cards, expense management, and APIs. It now processes over US$130 billion in annualised payment volume, supports 150,000 customers, and employs 1,700 staff across 26 offices. Revenue hit US$720 million, but profitability remains a “choice,” according to co-founder Lucy Liu.

Half the new funds will go to early investors via secondary sales, with the rest fuelling product development and global expansion ahead of a potential IPO, though market volatility could delay it. While the company’s hard-charging culture made headlines in 2023, Liu says Airwallex is focused on becoming a better place to work. “The IPO isn’t the finish line—it’s the starting gun for the next chapter,” she said.

Since its founding in Melbourne in 2015, Airwallex has charted a remarkable fundraising journey, securing over US$1.2 billion across multiple funding rounds. 

The company's early capital came from a US$3 million seed round in July 2016, followed by a US$13 million Series A in May 2017. In July 2018, Airwallex raised US$80 million in a Series B round, marking one of Australia's largest startup fundraises. The momentum continued with a US$100 million Series C in March 2019, hitting unicorn status. In April 2020, the company closed a US$160 million Series D round with participation from investors like ANZi Ventures and Salesforce Ventures. This round was extended in September 2020 with an additional US$100 million, bringing the total Series D funding to US$300 million.

Airwallex's Series E round in September 2021 brought in US$200 million, increasing its valuation to US$4 billion. A subsequent Series E extension in October 2022 added another US$100 million to the pot. 

Due Diligence: AFR, Forbes, SmartCompany, Capital Brief

EatClub raises $18.2M to take its hospo-tech platform global, helping restaurants fill empty tables

Founders: Pan Koutlakis

EatClub, the Australian dining deals platform backed by celebrity chef Marco Pierre White, has closed an $18.2 million Series A as it gears up for UK expansion. The round was led by Co:Act Capital, with support from Gandel Invest, Marbruck, and Les Szekely.

Founded in 2017 by Pan Koutlakis, EatClub lets restaurants post real-time, off-peak discounts to attract spontaneous diners, up to 50% off during quiet periods. The platform nearly collapsed during the 2020 lockdowns, but emerged stronger with EatClub Pay, a proprietary payments system that now underpins the platform’s end-to-end experience. That pivot drove a 190% revenue surge in 2024 and helped the company scale to 7x its pre-pandemic peak.

Importantly, the restaurant doesn’t know the diner is dining with a as they pay with a special credit card on their phone at the end of the service which applies the discount, this means there’s no loss in service quality during the dining experience. 

Now, EatClub is taking that momentum to London, aiming to capitalise on the hospitality industry’s growing appetite for tech. A recent Lightspeed report found nearly half of venues are investing in digital tools to combat labour shortages and improve service quality.

With strong growth, global ambitions, and a revitalised product, EatClub is ready to take its seat at the global hospo-tech table.

Due Diligence: Forbes, Startup Daily 

Preve raises $2.145M Seed to fix physiotherapy with AI-powered personalisation

Founders: Caelum Trott and Adam Beaupeurt

Sydney based Preve has raised $2.145 million in seed funding to modernise physiotherapy using AI, in a round led by Carthona Capital and supported by Startmate, Archangel, Black Sheep Capital, Exhort Ventures, and angels including Eucalyptus co-founders Alexey Mitko and Charlie Gearside, and EVP’s Justin Lipman.

Founded by physiotherapist Caelum Trott and product builder Adam Beaupeurt, Preve tackles one of physio’s biggest problems: patient dropout. Around 80% of patients abandon care before completing treatment. Preve’s platform helps clinicians build adaptive treatment plans and track recovery in real-time, while patients get clearer, more engaging guidance both in clinic and at home.

The software doesn’t aim to replace physiotherapists, but rather to scale their impact. By coaching patients between sessions, Preve boosts adherence and amplifies clinical expertise, solving what Trott calls a “broken” patient experience with tools designed for today’s health landscape.

Emerging from Startmate’s Winter ‘24 accelerator, Preve is now rolling out across Australia’s growing physiotherapy sector.

Due Diligence: Capital Brief, Startup Daily

Foremind raises $1.5M to scale mental health support for frontline workers

Founder: Joel Anderson

ACT based workplace mental health startup Foremind has raised $1.5 million in a round led by impact VC Giant Leap, with backing from Skalata and the Snow Foundation, to scale its proactive wellbeing platform and expand into New Zealand and the UK.

Founded by Joel Anderson, Foremind provides businesses with tools to support employee mental health while staying compliant with Australia’s evolving psychosocial hazard laws. With mental health claims rising to 9% of all workplace claims, the platform helps employers address risks before they escalate, especially in high-pressure industries like construction, healthcare, and education.

Foremind’s platform has surged in adoption, growing 4,200% in two years and now serving 150 businesses , including Forty Winks, Maryvale Private Hospital, and Beyond Housing. The company recently onboarded 50 new clients and plans to accelerate product and team growth to meet soaring demand.

The Foremind platform offers 24-hour access to counsellors, proactive content like articles and videos, and tools for managing psychosocial risks through incident reporting and real-time dashboards. It supports compliance with mental health regulations and provides tailored solutions for sectors such as construction, healthcare, and education. 

The raise marks Skalata’s third investment in the company, affirming confidence in Foremind’s traction and Anderson’s leadership as the startup pushes for broader impact across the workforce mental health landscape.

Due Diligence: Startup Daily

Termina raises $3M pre-Series A to automate energy savings for Australian businesses

Founder: Michael Koopman, Rodrigo Garcia-Mulder

Melbourne-based energy management startup Termina has secured $4 million in seed funding to expand its platform, which automates energy procurement and cost optimisation for businesses. The round was led by EVP, with continued backing from Archangel and Skalata.

Termina's platform automatically compares energy rates across over 37 retailers, switching clients to the best deals monthly without manual intervention. Unlike traditional brokers, Termina operates on a savings-split model, earning only a portion of the savings it generates, ensuring aligned incentives.

The platform offers a unified dashboard for businesses to track electricity, gas, and LPG usage, manage energy accounts, and monitor equipment costs. Features include real-time usage tracking, automated bill validation, and simulating energy upgrades across multiple sites. Notable clients include Betty's Burgers, Endota Spa, Lord of the Fries and Retail Zoo.

With the new funding, Termina plans to enhance its analytics capabilities and expand its services to a broader range of startups and businesses, aiming to become a comprehensive solution for operational efficiency and growth optimisation.

Due Diligence: SmartCompany

Liveheats scores $1.3M seed to scale global sports event platform

Founder: Chris Friend and Fernando Freire

Sydney-based Liveheats has raised $1.3 million in seed funding to accelerate global growth and expand its live sports scoring software. Founded in 2016 by Chris Friend and Fernando Freire, Liveheats simplifies sports event management, from athlete registration and payments to real-time scoring and rankings. The platform, which hit $2 million in revenue this year, is targeting $10 million by 2028.

Backed by investors including Campaign Monitor’s Ben Richardson, 86 400’s Robert Bell and Belinda Hogan, former surfing champion Joel Parkinson, and Investible’s Trevor Folsom, Liveheats plans to bolster product and engineering teams, alongside new sales hires in the US and Europe.

The company has powered over 4,000 events globally, serving more than 131,000 athletes across 40 countries, and plans to evolve its site into a comprehensive sports media hub featuring live streaming, highlights, athlete profiles, and premium subscription services.

Friend sees potential similar to US-based Gamechanger, aiming to build an advanced, accessible solution for niche action and endurance sports markets worldwide.

Due Diligence: SmartCompany

Kite Magnetics raises $3.6M seed for EV motor Tech

Founder: Richard Parsons

Victroian based electric motor materials developer Kite Magnetics has secured a US$2.2 million (AU$3.6 million) seed investment from SQM Lithium Ventures, the venture arm of lithium giant SQM, in its first Australian investment. 

Founded in 2021, Kite Magnetics develops high-efficiency stator cores using Aeroperm, a nanocrystalline magnetic material from Monash University research, significantly improving electric vehicle (EV) motor efficiency and range.

Aeroperm dramatically reduces core energy losses by up to 97% compared to traditional electric steel, creating lighter, more efficient, and cost-effective electric motors and generators.

The funding will help Kite scale production of Aeroperm, reduce EV motor mass, and ultimately make EVs cheaper and more sustainable. Initially focused on electric aviation, Kite opened a Green Aviation Test Facility in 2023 and aims to produce up to 50,000 tonnes of Aeroperm annually by 2029.

The investment follows months of due diligence by SQM and will help Kite build pilot production facilities, expand its global presence, and hire strategically. 

Due Diligence: AuManufacturing

💰️ New Fund, Who’s This? 💰️ 

🔬 Uniseed has secured an additional $25 million from UniSuper, bringing the super fund’s total commitment to support the commercialisation of university research into startups to $100 million. (Startup Daily)

• Uniseed provides seed funding for early-stage startups emerging from Australian research institutions and has invested in over 70 ventures since its founding in 2000.

• The fund has exclusive first-look rights on technologies from partners including CSIRO and several universities, recently expanding to include Newcastle, UTS, Western Sydney, and Macquarie.

• Past investments include Morse Micro, Kinoxis Therapeutics, Celosia Therapeutics, Analog Quantum Circuits, and Diraq.

🚀 Wins 🚀 

🦅 Canva co-founder Cameron Adams and his wife Lisa Miller have joined The Giving Pledge, committing to donate the majority of their $6.81 billion wealth to environmental causes.

• Adams and Miller will focus their giving through the Wedgetail Foundation, which Miller founded and leads, aiming to protect and restore natural ecosystems. (Capital Brief)

• The Giving Pledge, launched by Bill Gates, Melinda French Gates and Warren Buffett, encourages billionaires to commit most of their fortunes to philanthropy publicly.

• They join fellow Canva co-founders Melanie Perkins and Cliff Obrecht, who signed the pledge in 2021, and join a small group of Australians among the 240+ global signatories.

📆 Notice Board 📆 

🧑‍🤝‍🧑 The Startup People Summit is a full-day, online event designed for People professionals building the critical functions and capabilities that startups in APAC need to scale and thrive.

• The event has 35+ speakers, 1,000 attendees, expert content, community, and resources. The list of speakers includes leaders from Culture Amp, Go1, Airwallex, Main Sequence, and Linktree.

• The content focus is on fundamental strategies that drive real impact. From attracting and retaining top talent to building scalable systems, this event will deliver actionable takeaways you can apply.

• Entirely online, July 31st. Find out more here and get a 66% discount for the early bird special.

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 last way to get ahead (Video) by Charlie Gearside, co-founder of Eucalyptus

• Lovely video outlining the wealth creation machine of ESOP and equity within startups. Charlie outlines what to look for when joining a growth startup or a cashflow business, and the expected returns.

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‘Til next time,

👋 Will

🔨 Tool Box 🔧 

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