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. 🇦🇺 🚀 A special welcome to the 31 new subscribers who joined since last weekend 👋 

🏅 Become an OS Super Heroes to support the newsletter and secure discounts on relevant startup products, courses, and events!

This week’s edition includes our growing toolbox of services we love down the bottom! OS Super Heroes get the premium list and a free ticket to Startmate Demo night. 🎟️ 👀 

👀 Headlines 👀 

🤝 Aussie VCs are increasingly looking to M&A to return capital to their investors. (Capital Brief)

• M&A is being used to boost Distributed to Paid-In capital (DPI), which measures the ratio of cash returned to investors versus invested capital.

• Australian startups are becoming attractive acquisition targets for international buyers, especially due to the weaker Australian dollar and growing corporate interest in acquiring innovation.

• One fund in particular, Investible saw nine exits in 2023-2024, returning $32.9 million to investors. 

• In contrast, large listed Aussie tech companies have seen M&A slow down dramatically as their public acquirers view the valuations of private companies as unrealistic. 

🚀 Hanwha Defence Australia, Hanwha Aerospace, and Gilmour Space Technologies signed an MoU to collaborate on space technology development. (Hanwha Release)

• The partnership aims to strengthen strategic space sector interests for both Australia and South Korea.

• Hanwha Aerospace is Korea's leading private aerospace company, specialising in spacecraft engines, aircraft components, and defence solutions. Gilmour Space will contribute knowledge of launch vehicles and satellite technology.

📉 Scalare Partners' backdoor listing is back on! Scalare is hoping to raise $4-8M by issuing new shares at a valuation of $26.5M. (Capital Brief)

• Scalare Partners, an investment firm and advisory service that lodged a $350K FY2024 after-tax loss, has been approved for listing on the ASX with a reverse takeover of Candy Club Holdings.

• The listing will enable retail investors to participate in venture investments. The proposed company's structure is unique. The listed entity will invest directly off the balance sheet instead of a typical fund structure. 

  • This is unique from traditional funds: no carry and no management fees. 

• Scalare has made 30 investments at a rate of six to eight annually, with cheque sizes up to $250K. The portfolio is available here.

• Scalare will also generate revenue from bookkeeping, fundraising support and advisory services.

🔎 Google Search is about to change with Aussies being the guinea pigs. (AFR)

• Google search will start showing AI-generated summaries powered by Gemini.

• Australia will join the United Kingdom, India, Japan, Indonesia, Mexico and Brazil in the trial, which is expected to be rolled out to 1 billion people this year. 

• The changes will impact news publishers and businesses such as e-commerce that rely on search traffic.

🎙️ Prefer to enjoy Overnight Success in audio format?

We hope your eyeballs are enjoying the Overnight Success newsletter, but did you know we also have a podcast for your earholes to enjoy too?

Check out The Startup Retro, proudly supported by our partners Rippling and Teamified.

⚡️ Startup Retro ⚡️

Mary Technology secures $1.35M to help lawyers draft chronologies in minutes using AI

Founders: Dan Loyd-Doyle, Rowan McNamee and Harry Raworth

Sydney-based legal tech startup Mary Technology has raised $1.35 million in a funding round led by Empress Capital, joined by notable investors including Sam Nickless (CEO of Gilbert + Tobin) and the Lendi Group Co-Founders. 

The startup’s AI-powered software helps lawyers draft chronologies from thousands of documents in under 15 minutes, typically taking days or weeks. This technology allows law firms to save time, reduce costs, and improve profitability, as demonstrated when it processes 12,000 client documents in just 12 minutes for a boutique litigation firm.

Founded in 2023, Mary has gained recognition, winning ‘Best New Legal Startup’ at the Legal Innovation & Tech Fest and Demo Day at the AI Build Club. The funds will be used to expand the team and establish its presence in Australia, with plans to expand to the U.S. soon.

Mary’s mission is to simplify law practice with tools that address lawyers' pain points. The AI chronology tool is available for free trials and demos.

Due Diligence: Artificial Lawyer, Startup Daily

Restoke.ai secures $5.1M to help optimise restaurant operations and back-of-house

Founders: Ken Brand and Assaf Stizki

Melbourne-based startup Restoke.ai has secured $5.1 million in a funding round led by Rampersand, with additional backing from Mandalay Venture Partners, Archangels, and US-based investors BC Growth and Stage2 Capital. Launched in 2020, Restoke.ai uses AI to optimise restaurant operations, helping venues save over $8,000 per week within just four weeks. With larger chains reporting annual savings in the millions, the platform is already in use by more than 2,000 restaurants and cafes across Australia, New Zealand, Singapore, and the US.

Amid rising costs and post-pandemic challenges in the hospitality industry, Restoke.ai offers real-time insights into expenses, allowing operators to identify savings and boost profits. The new funding will support the company's expansion into the US.

Co-founder Ken Brand believes AI will soon become indispensable for the industry, while Rampersand partner Andrew Poesaste emphasised that Restoke.ai is pioneering "Restaurant Intelligence," a new category that’s transforming how the sector functions. With its ability to increase efficiency and enhance decision-making, Restoke.ai is positioned as a game-changer in the restaurant tech space.

Due Diligence: Capital Brief, The Australian

Matilda lands $1 Million Pre-Seed to make immigration easier for individuals and businesses

Founders: Damian Png and Niamh Mooney

Sydney-based startup Matilda is poised to disrupt the migration industry with a platform designed to streamline visa applications. The $1 million pre-seed round was by AfterWork Ventures, with contributions from Wollemi, Everywhere VC, and Startmate. This funding will be used to develop the platform further with a focus on processing employer-sponsored and partner visas. 

Matilda intends to modernise the heavily regulated migration industry by integrating AI and automation, delivering a premium, client-centric service to simplify the stressful visa application process. The mission is to reduce the complexity and inefficiency of Australia's migration process, which deters skilled talent from relocating. The platform uses AI to automate administrative tasks, such as collecting evidence for partner visas or processing employer-sponsored visas, reducing the burden on applicants and businesses.

Matilda's hybrid approach combines automation with human expertise, ensuring clients receive personalised support when needed. This two-tiered service offers self-serve options for straightforward cases, while more complex situations receive high-touch guidance from migration agents. Matilda’s model mirrors U.S. companies like Boundless Immigration but focuses on Australia’s unique market, which processes nearly 3 million visa applications annually.

Due Diligence: Capital Brief

InDebted raises $60M Series C at $350M valuation for personalised debt collection service for businesses

Founder & CEO: Josh Foreman

Fintech startup InDebted has secured $60 million in a Series C round to fuel its global expansion and enhance its AI-driven debt collection platform. The round, which values the company at over $350 million, saw participation from both existing and new investors, including Airtree Ventures, Australian Retirement Trust, Carthona Capital, Reinventure, and Perennial. Second Quarter Ventures,  Australia’s secondary fund, also purchased shares from angel investors and early employees. 

InDebted leverages AI and machine learning to personalise debt recovery, aiming to create a more ethical and less stressful process for customers. Already operating in markets like Australia, New Zealand, Canada, the US, and the UK, the company plans to extend its reach to the Middle East and South America. Funds will also support mergers and acquisitions as part of its growth strategy.

InDebted's mission is to transform the traditionally hostile debt collection industry by using data and technology to improve customer experiences. In February 2024, InDebted achieved operating profitability with a compound annual growth rate of 110%.

Due Diligence: FinTech Finance News, Capital Brief, AFR

Evolt lifts with a $20M raise for body scanning instrument riding the Ozempic wave. 

Founder: Ed Zouroudis and Kelly Weideman

Evolt, a Burleigh-based fitness company, has secured $20 million in funding to accelerate its global expansion and is considering a potential IPO. Evolt has developed a body composition scanner that measures 40 health metrics and measures the body's fat and muscle makeup. The startup aims to capitalise on the rising demand for weight loss drugs like Ozempic and Wegovy. The round included investors like Regal Funds and Washington Soul Pattinson.

Co-founded in 2015 by Ed Zouroudis and Kelly Weideman, Evolt’s technology helps users and gym operators track progress in muscle mass, fat composition, and overall health, with over 2.8 million users globally. The company’s scanners are increasingly integrated into gyms and medical clinics, especially as strength training becomes essential for users of GLP-1 weight loss medications to avoid muscle loss.

Evolt conducted 2.3 million scans in 2024, a 57% increase from the previous year. Volt has committed to ongoing partnerships with medical and fitness organisations to drive further expansion, including collaborations in cardiovascular research and telehealth for weight management. With a growing presence in 150 U.S. clinics, Evolt is positioning itself at the forefront of the convergence between fitness technology and healthcare.

Due Diligence: Athletech News, AFR

Demtech.ai secures $325K pre-seed round to develop campaign and citizen engagement tools for elections

Founders: Apurva Chiranewala and Avijit Michael

Sydney-based startup Demtech.ai has raised $325,000 in pre-seed funding to develop its AI-driven democracy solutions. The funding round was led by US advocacy group MoveOn.org, with additional support from OPEN and Rohini Nilekani Philanthropies. Co-founded in March 2023 by serial entrepreneur Apurva Chiranewala and civic leader Avijit Michael, Demtech.ai aims to support global non-profits and citizen action groups with AI tools that enhance advocacy campaigns and citizen engagement.

Its product, BeCause, is designed to mobilise citizens and improve democratic decision-making. Chiranewala stated that the capital would accelerate development and expand features ahead of a planned 2025 launch. The startup has also secured follow-on funding commitments from OPEN for future growth. BeCause has a white-label citizen action platform designed to help manage and enable election volunteers. 

Demtech.ai's mission is to provide innovative tools for global networks of non-profits, empowering them to uphold democratic values and increase their impact through AI-driven solutions.

Due Diligence: SmartCompany

🤝M&A🤝

Airtree-backed Narrato, a generative AI content creation and management platform, has been acquired by Typeface, an enterprise-focused AI platform. (TechCrunch)

• Narrato, founded by Sophia Solanki in January 2022, raised a $1M pre-seed round led by AirTree in April 2023. 

  • Sophia previously founded the social media management SaaS platform DrumUp. 

• Just over a year ago, Typeface raised $165M at a $1B (USD) valuation. Treat, another AI startup, was acquired at the same time. 

• The Narrato platform sells access to an AI content assistant that helps organisations with their internal content creation and planning goals 

eToro, a global share trading platform has acquired Spaceship $80M. (The Australian)

• Spaceship gives eToro access to the growing market of younger investors trading via phone apps.

• Spaceship has grown to 200,000+ clients since 2017 with $1.5B under management. 

• Its investors include AirTree and Grok Ventures, who’ve tipped in $50M in funding.

🚀 Notice Board 🚀 

🚀 LaunchVic's 30X30 program is approaching. It offers startup founders and executives access to mentors with direct experience scaling successful tech companies. 

• Fast-growing Victorian ventures looking to scale are asked to apply by 1pm, 21 October 2024. More information is available here.

🧠 KaaS (Knowledge as a Service)

Will’s Pick 💁‍♂️ Video Games Industry Memo by George Osborn, specifically how video games became a front of the global information war.

• The global video game industry is 3 times larger than the music industry and four times larger than the movie industry. In 2024, the industry is expected to generate $184B USD.

• This newsletter and blog post explains how nations are using video games in the information war and in response to how some of the largest publishers are responding.

• On slightly related note, there was a fascinating failure of a game called Concord. Concord was a live-service multiplayer shooter that was shut down just two weeks after launch ~ even with a $400 million budget. (The Guardian)

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

🔨 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. Check out our premium toolbox by subscribing to OS Premium discounts on these tools, services and more!

We also have some extra valuable discounts and offers for our premium subscribers. Check them out and support our content by signing up!

Subscribe to OS Super Heroes to read the rest.