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 65 new subscribers who’ve joined us since the last edition! 🎉

👀 Headlines 👀 

💉 Compounding Ozempic has been banned by the Australian Government in a big blow to Eucalyptus (owner of weight loss program, Juniper).

• The ban kicks off in October and is targeting compounding of the active ingredients of the weight loss drug in Australia. Suppliers turned to compounding as demand for the ‘miracle’ weight loss drug outstripped supply.

• Tim Doyle, one of Euc’s founders, told Capital Brief that sales of weight loss drugs had netted the business $100M in sales in just over one year alone.

🩸 Aegros, a Queensland Government-supported biotech, is raising $20 million pre-IPO despite missed payment claims from suppliers.

• Founded by Hari Nair and John Manusu in 2017, the company focuses on blood plasma fractionation technology that has been in development since the 1980s.

• Aegros faces financial challenges with stalled construction at its $65 million Macquarie Park facility, resulting in unpaid suppliers. ABBA Renewables lodged a winding-up application against Aegros for unpaid debts, which has reportedly been settled.

• The capital raise aims to accelerate the completion of the Macquarie Park site, crucial for commencing toll fractionation of Asian (imported) plasma. The company's technology scalability is under scrutiny due to CSL’s monopoly on plasma fractionation in Australia, necessitating imported plasma for Aegros.

🫂 Innovation Bay secures $700K in debt funding to continue its membership drive.

• Innovation Bay is Australia’s longest-running community for VCs and startups and has secured funding from the likes oc Blackbird’s Niki Scevak and Rick Baker, Airtree Ventures co-founder Craig Blair and Tidal Ventures founder Grant McCarthy. (Capital Brief)

 ⚡️ Startup Retro ⚡️ 

Great Wrap raises $5M for compostable cling wrap alternative and distribution partnership

Founders: Julia Kay and Jordy Kay

Great Wrap, a Melbourne-based compostable materials manufacturer, has secured $5 million in fresh capital and scored a distribution partnership with Opal ANZ. The manufacturer aims to address a 100,000-tonne landfill issue by replacing traditional pallet wrap with their compostable alternative.

Great Wrap's Certified Compostable Machine Pallet Wrap, accredited by the Australasian Bioplastics Association, is crafted from compostable biopolymers and plant-based oils. This solution offers high performance with a 250% pre-stretch capability. Opal ANZ is part of NIPPON PAPER GROUP and has operations in Australia and New Zealand. The partnership with Opal will enable the distribution of the Great Wrap’s product across their portfolio.

Last year, Great Wrap introduced the world's first compostable pallet wrap following a $24 million raise. That funding round enabled a transition from a small Mornington Peninsula setup to a larger Tullamarine facility, boosting production capacity and quality.

The latest $5 million raise includes contributions from new and follow-up investors, government funding, and debt. Notable new investors include tennis star Aryna Sabalenka and RCV Partners, alongside support from Barrel Ventures, Giant Leap, Platinum Mile, Startmate, and Darren Thomas of Thomas Food International.

Due Diligence: Opal ANZ Partnership, AU Manufacturing

Superpower raises $4M pre-Seed round to build personalised preventative virtual healthcare platform

Founders: Kevin Unkrich, Max Marchione (Australian Founder) and Jacob Peters

San Francisco-based Superpower has secured USD$4 million (~AUD$6.05 million) in pre-Seed funding to launch a virtual healthcare platform focused on personalised, preventative, and longevity-oriented medicine. The funding round was led by Susa Ventures, with participation from Long Journey Ventures, Family Fund, Atman VC, and others. Notable angel investors include the Winklevoss twins, Balaji Srinivasan, and Scott Banister.

Superpower aims to democratise access to high-quality healthcare traditionally reserved for the wealthy. The platform integrates nationwide testing and treatment partners and offers a beta membership model. Co-founder Peters' personal health scare and subsequent recovery inspired the creation of Superpower, highlighting the stark contrast between conventional and concierge medicine.

Superpower combines whole-body testing, AI-driven concierge clinicians, and top-tier treatments to deliver personalised healthcare. The platform's comprehensive yearly tests exceed traditional primary care, providing lifelong health insights and custom strategies. Superpower's research team continuously evaluates new tests and protocols to predict diseases early, solve health issues holistically, and enhance performance.

The company plans to onboard new members weekly throughout 2024, striving to build a holistic, data-driven healthcare system addressing neglected areas like nutrition, sleep, and gut health. With a Silicon Valley-native engineering and design team, Superpower aims to be the world's first all-in-one digital clinic for preventative and longevity-focused healthcare.

Due Diligence: Yahoo Finance, Founder Announcement

SpatialGPT secures $5.1M to develop a generative spatial data analysis and visualisation platform for the Apple Vision Pro

Key People: George Stavrakakis, Rupert Walsh and Robert Marolda

SpatialGPT, a spin out of the generative AI consulting firm InnovateGPT, has secured $5.1 million in funding from it’s venture studio backer. The new company aims to revolutionise spatial environments in sectors like architecture, construction, education, healthcare, and retail.

Led by CEO Robert Marolda, a former Microsoft and VMware executive, SpatialGPT plans to leverage various emerging technologies including Microsoft’s Azure OpenAI Service, Apple Vision Pro, and JigSpace.

Initially focusing on the construction industry, which comprises 10% of Australia’s GDP but suffers from declining productivity, SpatialGPT will offer AI-powered copilot solutions to optimise workflows. For example, a user could wear the Apple Vision Pro’s and visualise and make amendments to construction drawings while on site.

InnovateGPT, under Stavrakakis and Walsh, has incubated 13 AI startups in its first year, investing over A$15 million.

Due Diligence: Forbes, The Australian

CLT Toolbox raises $1M bridge round to grow timber design software

Founders: Adam Jones and Ringo Thomas

Melbourne-based startup CLT Toolbox has secured $1 million in bridge funding to enhance its mass timber design software. This follows a $1.5 million Seed round in October 2023. Investors include Giant Leap, Archangel Ventures, Adrian Hondros, and angel investors Harrison Rose and Adrian Hondros.

CLT Toolbox provides structural engineers with tools to design complex timber structures and integrates supply chain functionalities for efficient, sustainable material sourcing. The new funding will support the company's expansion into European and US markets, aiming to mainstream mass timber in global construction.

Presently, there is a global shortage of timber engineering specialists due to outdated university curriculums and increasing demand for timber structures. CLT Toolbox aims to bridge this gap by offering digital infrastructure for adopting mass timber solutions, promoting sustainability in the construction industry.

The platform addresses carbon emission concerns, as mass timber construction can significantly reduce embodied carbon compared to concrete. All suppliers on the platform have certified sustainable products from accredited forests. Looking forward, CLT Toolbox plans to host other sustainable building materials and leverage design automation to enhance efficiency in construction, influencing industry practices from the top down.

Video Explainer: Get a sense of the technology here.

Due Diligence: Smart Company

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

🔍️ Accelerator Watch 🔎 

🚜 🌾 SparkLabs Cultiv8 announces its 2024 accelerator cohort with 9 cleantech focused startups.

The cohort has been cherry-picked for their contribution and focus on creating a more sustainable and efficient global food system.

The full list and summary is below! 👇

• Bovotica is adding mass and reducing gas in cattle via a proprietary technology probiotic/prebiotic feed supplement that decreases methane production and increases weight gain.

• Carbon Friendly provides end-to-end carbon technology solutions that enable the agricultural industry to develop and monetise large-scale carbon inset and offset projects.

• Levur is harnessing yeast and sustainable methods for customisable, high-quality oil substitutes for the cosmetic and food industries.

• Nitronic is developing technology to produce on-site, zero-carbon fertilisers, mitigating price volatility and the dependence on imported fossil fuel-based products.

• NonTox is developing non-toxic, natural herbicides to manage resistant weeds along with animal farm anti-pathogens.

• Invenios is exploring the untapped potential of microbes.

• Pyx Global is developing advanced digital architecture to ensure the secure exchange of data and credentials along supply chains.

• Unibaio has created a microparticle from natural origins to formulate more efficient pesticides and fertilisers, boosting active ingredient uptake by plants.

🥳️ Wins 🥳

💰 Deci, an Israeli-based AI startup backed by Square Peg that helps AI models run more efficiently has inked a sale to NVIDIA with a USD $300M ($477M) price tag. The deal is still subject to regulatory approval.

• Square Peg led Decis' USD $9.1M Seed round in 2020 and followed on in the Series A and B rounds. According to the AFR, Square Peg’s 2018 fund bought Deci stock for $13.6 million, which was marked at $36 million by the end of 2023.

• Importantly, the acquisition is potentially a nice cash return to Square Peg in a slow deal and exits market.

📰 Scaleup Mediafund invests in three startups via media-for-equity deals. The fund helps new brands build a presence, attract consumers, and scale through their discounted exposure for equity partnerships.

The following startups were funded by the Media Fund.

• Vitable: a fast-growing vitamins delivery company.

• Bare: a DeathTech disruptor shaking up the cremations and funeral industry.

• Hawkes Brewing: a beer brewer that carries the name of the late prime minister, Bob Hawke.

• The fund, since its inception in 2017, has seen $45 million committed by media giants like News Corp, NOVA Entertainment, Foxtel, Network Ten, and REA Group. The latest series includes oOh!media, extending reach to its out-of-home network.

• Scaleup Mediafund's model has seen five of its first 15 investments achieve acquisition or IPO milestones. Notable exits include Better Caring (now Mable), Billy, Hey You, Alta, Pointsbet, and Mad Paws.

🌱 Loam Bio’s CarbonBuilder, a powder loaded with microscopic fungi that pull carbon in the air into the soil has been scientifically proven to work.

• The CarbonBuilder product has the benefit of producing better quality crops and yields for crops like canola, wheat and barley.

• Creating carbon sinks for farmers opens up a new revenue line for carbon, via the creation and sale of ACCUs (Australian Carbon Credit Units) (The Australian).

🤑 M&A 🤑 

🍽️ HungryHungry and MOBI, two Australian based hospitality platforms, have merged to expand into the US market. Both companies are profitable, EBITDA positive, and debt-free, allowing for strategic growth and further M&A opportunities.

• The new company will service over 4,000 venues across 15 countries, including Australia, New Zealand, Canada, and the USA. The new business will be lead by the HungryHungry co-founders, Shannon Hautot and Mark Calabro.

• Combining HungryHungry's software expertise and MOBI's mobile tech, the entity will offer consumer-facing technology and a white-label platform for brand engagement. The company plans to launch a new payments product, HungryPay, aimed at the US market.

📌 Notice Board 📌 

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

🎤 Hatch Pitch Night at Taronga - 19th June 📍 Taronga Zoon, Sydney

• Hear 6 startups working on a variety of planet-friendly initiatives pitch, and connect directly with the founders. Grab a tree ticket here.

📆 Ecosystem Drinks - 30th May 📍Stone & Chalk Melbourne

• Startmate and Stone & Chalk are hosting their regular drinks & networking event next Thursday. Tix are $10, grab yours here.

📆 PropTech PitchFest - 27th May 📍Gold Coast

• Regional Angel Investor Network is hosting this pitch event held at Broadbeach Surf Life Saving Club. Register here.

👀 Startmate (and their wider investor community) has put a callout for startups they’re particularly interested in.

• Check out the list here with contributions and explanations from the likes of Casey Flint, Chenelle Tanglao, Mick Liubinskas and Phil Morle.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♂️ Ariyh Newsletter, by Thomas McKinlay

• I love both the concept and content of this weekly newsletter which summarises academic marketing research into 3-min summaries (for free!). I particularly like this collation of insights into the ‘science’ behind leveraging customer reviews. Did you know that encouraging customers to mention comparisons with competitor products can make reviews up to 26% more effective?

Will’s Pick 💁‍♂️ The Making Media Podcast as recommended by Dinesh George from The Startup Network.

• Making Media is an ongoing series of podcasts by the team behind the Collosus podcast network. The series focuses on interviewing leaders and innovators in the media industry. I’ve only listened to a few episodes since I was sent the pod on Tuesday, but here are a few cherry-picks.

  • The Story of Stripe Press on how content production can make an impact for larger enterprises.

  • The Power of a Newsletter with Lenny Rachitsky as it focuses on how he built his newsletter business.

  • What Sports Media Can Teach Us with Spike Eskin as it focuses on creating entertaining and interesting debate. Startup conferences and panels take note!

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 & Gem