G'day and welcome to Overnight Success! A big shout-out to the 67 new subscribers who’ve joined since the last edition.

Have you registered to attend our 1st Birthday Drinks? 🥳️ 

On the 16th of June, we’re hosting two events simultaneously in Adelaide & Melbourne (the hometowns of Gem & Will), with the help of our friends at Stone & Chalk. Links to register below👇 

• Adelaide event

• Melbourne event

  

We’re also excited to announce the first of our generous sponsors for both events - Standard Ledger! Thanks to the team for backing us (and helping make sure we put on a good party!). If you need accounting support from people who actually “get” start-ups, check out their website to see how they can help!

⚠️ Important Housekeeping ⚠️

We wanted to clarify our mistake last week regarding The Volte's recent fundraising round. We accidentally attributed a few incorrect investors who didn't actually participate. We're sorry about the mix-up and want to thank the team at Halkin Ventures for bringing it to our attention. We've since updated the newsletter archive with the correct information, so be sure to check it out!

Headlines

👼 Milkrun rises from the ashes, thanks to Woolies (AFR)

• For a rumoured $10M the acquisition deal provides Woolworths access to Milkrun’s name, social media accounts and existing customer relationships.

• The supermarket giant will rebrand their current fast delivery service ‘Metro60’ as Milkrun; however, delivery drivers will be Uber’s gig-economy workers rather than salaried employees Milkrun was using.

📣 A big week in Australian PayTech

• The Australian Government this week announced that buy-now-pay-later (BNPL) companies would be subjected to the same regulations as traditional consumer credit products by the end of this year. (ABC)

• Apple has announced it will enable iPhones to act as EFTPOS terminals, displacing bank-supplied hardware. Westpac and Tyro are the first banks to have made a deal with Apple to allow payments to be received via their apps. (AFR)

💰Victoria to increase the payroll tax-free threshold

• As part of its 2023/24 Budget, the State Government announced it will increase the threshold at which businesses would need to pay payroll tax progressively from $700k to $900k and eventually to $1M by July 2025, essentially putting more money into the hands of eligible early-stage and small business owners. Larger businesses, on the other hand, will be paying more. (Business News Australia)

🙅‍♀️ NSW State Government pauses start-up funding programs amidst ‘line-by-line’ budget review (Smart Company)

• New and already in progress applications for the MVP Ventures program, which offers participants $200k in matched funding, are currently on hold, as well as the $30M NSW Future Industries Investment Program, which provides rebates to employing businesses in growth sectors.

• This is based on changes to Commonwealth-funded start-up support programs announced in the Federal Budget just a couple of weeks ago.

1. Start-up Retro & Crowdfunding: Australia's start-up raises with a smidge of context.

2. New Fund, Who’s This?: Fresh funds flowing into the ecosystem.

3. Aussie Raisins: Start-ups currently looking to raise funds.

4. Wins: Highlighting wins, big and small.

5. Notice Board: Signposting key events and opportunities.

6. (KaaS) Knowledge as a Service: Resources that make you smarter. Or for you to share with co-workers to make them think you’re smart.

⚡️Start-up Retro⚡️

SpaceTech

Fleet Space blasts off with a $50M Series C to manage mini-satellites

Fleet Space Technologies has raised $50M in a heavily oversubscribed Series C round, more than doubling its valuation to over $350M. Previous investors Blackbird, Grok Ventures, Alumni Ventures, and Hostplus led the round, with participation from new investors like TelstraSuper and Pavilion Capital.

The investment enables further global expansion, with targets set on the U.S. Fleet Space have also highlighted future investment into AI and machine learning development. Investors were excited by Fleet's commercialisation of ExoSphere; the satellite mineral exploration technology uses a combination of 3D subsurface imaging, AI, and machine learning. The output for large mining corporations is a deeper understanding of the environmental impact of drilling. Additionally, the software offers a very valuable set of analytical products. The technology is now used by over 30 clients, including giants like Rio Tinto and Australia's Defence Space Command.

Fleet is also reducing the size of its Geode ground sensors. These sensors sit embedded on Earth for simultaneous and richer data extraction. Fleet's CEO, Flavia Tata Nardini, emphasises the start-up's role in transforming the global mineral and mining industry. The start-up is literally a moonshot with ambitions of the mini-satellites orbiting the likes of our Moon and Mars.

Due Diligence: Smart Company, Space News & SatNews

EdTech

Cleverbean lands seed funding to create learning materials for Australian teachers

Cleverbean, a female-founded tech e-learning platform from Sydney, has landed $200K of Seed funding from Skalata Ventures. The platform is a digital teaching assistant, providing teachers with research-informed learning materials covering the Australian literacy curriculum. The platform comes with a well-suited founding team consisting of a former primary school teacher, Lucy Chambers, and a commercialisation expert, Alina Hunter. Cleverbean offers an AI-assisted set of materials comprising of lesson plans and digital and physical learning activities that teachers can rely on to create engaging learning experiences.

The database allows teachers to focus on executing lesson plans and not worry about the preparation time required to make custom lesson plans constantly. Instead, the AI platform offers real-time feedback to students, which extends the coverage of feedback a teacher can give. According to the investment notes, 90% of students don't get high-quality feedback during the lesson, and ~85% of students receive feedback a day after their lesson. Cleverbean has previously targeted teachers to front the bill for their software but is transitioning to a B2B platform aiming to get entire schools signed up to the platform.

Due Diligence: Skalata Investment Notes

E-commerce / FinTech

Checkmate lands a $23M Series A to allow online shoppers to land the best deals

Perth-founded but now San Fran-based Checkmate has closed their Series A with $23M locked away. Checkmate is a personalised shopping tool that operates as a smartphone app or browser extension to highlight all deals available across 40,000 stores. The platform can also host gift cards and track user deliveries.

The party round was led by GV (formerly Google Ventures) and pulled in the likes of the Chainsmokers’ Alex Paul & Drew Taggart, Paris Hilton, executives from Linktree, Pinterest, Honey, Ancestry.com, Google, Grinder, Amazon, Brex & Rakuten. Additionally, Blackbird Ventures, who contributed to the $5M Seed round in September 2022, followed on. That round included Wischoff Ventures.

The company has had epic growth since September, going from 800 to 380,000 users and tracking 1M deliveries through the platform. The company is directly targeting Gen Z with its branding and an ambassador program in 25 US colleges that look to activate the app from the ground-up.

Due Diligence: AFR

Seaweed

Immersion Group lands international investment to produce and harvest green seaweed

Immersion Group, a seaweed production group, has landed significant investment from Japanese seafood producer Nissui Corporation. The exact sum is undisclosed but rumoured to be worth millions of dollars. Immersion Group specialises in the production of the native red seaweed Asparagopsis, known for its ability to reduce methane emissions in livestock when used as a feed additive. The funding will support the construction of a new seaweed production plant near Geelong, which is expected to cost between $3 and $5M.

Immersion Group's innovative onshore production system achieves high levels of Asparagopsis production per hectare and has garnered attention from the dairy sector, particularly in Australia and Japan. The investment from Nissui Corporation will help expand Immersion Group's seaweed division and establish a global Asparagopsis brand.

The company also engages in seagrass restoration projects and has plans to develop an export scallop fishery from Port Phillip Bay in Victoria.

Due Diligence: Business News Australia

Energy / Hydrogen

Endua raises $11.8M to create modular hydrogen power banks

Brisbane-based Endua has raised $11.8M in funding, with support from Ampol, CSIRO's Main Sequence, Queensland Investment Corporation (QIC), 77 Partners, and Melt Ventures.

Founded in 2021 by CEO Paul Sernia, Endua specialises in modular hydrogen power banks. The company's electrolysers use renewable energy sources like solar power to split water molecules into hydrogen and oxygen, which are then stored in modular banks for extended periods. Endua aims to develop renewables-based hydrogen power units for off-grid locations such as mines, farms, and residential communities. The company has already created modular hydrogen power banks capable of driving power loads up to 100kW, sufficient for water pumps, farm sheds, and standalone telecom infrastructure.

Storing excess renewable energy as hydrogen overcomes intermittency challenges since users can draw on their stored energy whenever needed or when renewable energy generation is insufficient.

This funding round follows Endua's previous success in securing $4.3M in grants, including the Entrepreneurs' Programme Accelerating Commercialisation Grant, Cooperative Research Centres Project (CRC-P), and Advanced Manufacturing Growth Centre Grant (AMGC).

Due Diligence: Tech Crunch

EdTech / Recruitment

Adventus raises $22M Series B to attract international students into recruitment pipelines

Adventus, an online international student recruitment platform, has raised $22M from existing shareholders to strengthen its position in the growing market for overseas enrolments. The funding will be used to enhance Adventus' technology, particularly in automation and artificial intelligence. Since its launch in 2020, Adventus has processed 100,000 students studying abroad and expects to handle 60,000 this year.

To promote its services in India, the company has enlisted the support of cricketing legend Ricky Ponting. Concerns have been raised regarding the role of online aggregation sites in the international education sector, with critics pointing out potential risks and a lack of transparency.

Adventus CEO Victor Rajeevan assures that the platform maintains strict quality control measures, including screening agents and monitoring applications for fraudulent activity. The federal inquiry into international education in Australia has sparked discussions about the industry's need for greater regulation and transparency.

Due Diligence: AFR

SaaS / AI / Enterprise

Servicely snags $3M to expand its Enterprise Service Management platform

Servicely, an enterprise software start-up, has secured $3M led by EVP. The investment will support the company's international expansion and further develop its Enterprise Service Management (ESM) platform.

Servicely's SaaS platform utilises artificial intelligence (AI) to augment and optimise the capabilities of enterprise service teams in IT, HR, and Facilities Management. The AI analyses staff workflows to provide tailored recommendations and streamline operations. According to their website, their platform can automate 60% of repetitive tasks, with a 13x return in the first year on labour costs.

The ESM market is massive, with an annual revenue of over $44B. Servicely offers a comprehensive and user-friendly solution fitting the requirements of modern enterprises. Since its launch, the start-up has experienced strong demand and has generated significant value for organisations in Australia, the US, and Africa.

Due Diligence: Startup Daily

If you're a founder or investor who has just closed a round, please reach out to us at [email protected]

New Fund, Who’s This?

• Melt Ventures - Australia’s first advanced manufacturing & hardware-focused VC has raised $15M of a planned $30M for it’s first fund.

  • Melt was founded by Trent Bagnall (Chair of Camplify & founder of Slingshot Accelerator) and angel investor Steph Hinds and officially launched in December 2022.

  • Due Diligence: AFR & Smart Company

Aussie Raisins

• Pleasant State 🧽️ The just-add-water cleaning product range is seeking expressions of interest for its equity crowdfunding campaign. (Birchal)

  • The company has been entirely bootstrapped and crowdfunded to date and is already in over 20,000 Australian homes.

Wins

• LaunchVic’s Governor of Victoria Startup Awards 🏆 (LinkedIn Post)

  • Mr Yum was named Startup of the Year, Zeller was recognised as Scaleup of the Year and Willed was awarded Best Newcomer. Nick Crocker (Blackbird) and Rachael Neumann (Flying Fox Ventures) were jointly awarded Investor of the Year for their work with early-stage founders, while Dr Elena Kelareva (Gipps Tech) and Emily Casey (What the Health & Side Stage Ventures) were recognised as Ecosystem Heroes.

• Reusably 🌱 The reusable container network celebrated it’s official launch this week at Stone & Chalk in Adelaide and announced it has been awarded a grant from Green Industries SA worth $54k!

  • Congrats to the founder and proud OS reader (who also happens to be our highest referrer!) Mary Kelly and her team for this awesome achievement.

• Canva 🎨 Has opened its first European office in London following its acquisition of local design software start-up Flourish. (Business News Australia)

Notice Board

• Antler Australia's 10th Cohort - applications now open!

  • Antler, the world’s day zero investor, is actively seeking exceptional founders to join their August ‘23 cohort.

  • If you would like to build a business with Antler apply to join here or learn more here. Have some burning questions about building with Antler? Register here for their AMA session on June 7.

  • Best suited to: Aspiring and experienced founders

• AO StartUps Program

  • Applications are now open for the program, backed by Wildcard Ventures, that helps start-ups pilot their technology at the Australian Open and across other areas of Tennis Australia’s business. Applications close 5th June. Find out more & apply here.

  • Best suited to: Founders solving problems in sport, health & entertainment

• Minderoo Foundation’s 2023 Dream Venture Masterclasses

  • Applications are now open for the Dream Venture Masterclasses which are designed to equip First Nations Australians with the connections, capabilities and access to capital to become investor-ready. Participants have the chance to score a share in $200,000 of pre-Seed funding. Find out more & apply here.

  • Best suited to: First Nations early-stage founders

• Advanced Tech, Web3, and AI Pitch Night - 30th May 📍Melbourne

  • Startup Victoria is hosting a pitch night that will be presided over by a panel of judges, including an AI (yep, you read that right!). Get tickets here.

  • Best suited to: Humans & AI-powered robots

• Defence 10x Trailblazer Accelerator

  • Applications are closing on Monday (29th May) for this 10-week program backed by some of Australia’s leading universities. Participants gain access to Seed investment of $350k, access to prototyping facilities, and industry and government networks to fast-track growth. Find out more & apply here.

  • Best suited to: Founders of defence start-ups

• Fireside chat with a friend of the newsletter Vidit Agarwal

  • Vidit is hosting Square Peg Capital’s latest Partner, James Tynan, to answer the age-old question ‘Can Tech Help Us Build a Better World?”. Limited Tickets here.

  • Best suited to: Sydney-based start-up curious

Have something to put on the Notice Board? We're always looking for upcoming events & opportunities across the Aussie start-up ecosystem. Reach out to [email protected] to add yours!

KaaS (Knowledge as a Service)

• Gemma’s Pick 💁‍♀️ The Courage to be Disliked (Book)

  • Judgement and rejection are natural parts of the journey for any founder or innovator, yet very few are immune to their emotional impacts. Looking to unlock the confidence to put yourself and your ideas out into the world? Try reading this book.

• Will’s Pick 💁‍♂️ Grant, Accelerator & Venture Debt Resource Base (Google Sheets)

  • Osama Al Fahdawi has diligently created and promoted this resource base for Aussie founders to utilise. As far as I can see, it’s the most up-to-date resource base of this kind for this key information.

    • Although Osama is discontinuing the maintenance of the database, OS will try to repurpose and host the info in the future. Thank you, Osama, for your work helping Aussie founders!

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

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‘Til next time,

👋 Will & Gem