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

The Startup Retro is out Monday! 🎙️ 

The first episode of our new podcast, The Startup Retro, is set to be released on Monday! Be sure to follow the pod on Apple/ Spotify so you don’t miss it!

Until then, why not check out Joan Westenberg’s new pod, Unfunded - interviewing founders who’ve bootstrapped their way to success. Joan is a “writer, investor, philosopher and founder” known for her spicy takes and intellectual, dry sense of humour, so you can guarantee to be entertained and educated!

Hot off the OS press 🔥 

A fresh piece from Guest Writer and Hatch Chief of Staff, Mia Sturt.

👀 Headlines 👀 

👀 All eyes on how new Future Made in Australia legislation coming next week will impact startups

• According to the PM, scaling local startups will form a key part of the Future Made in Australia (FMiA) plan. We’ll be watching any major announcements and learning what they mean for the ecosystem. 

• Interestingly, as the FMiA fund is legislated, the CSIRO chief has weighed in on the review of the research and development system, which was also funded as part of the 24/25 Federal Budget. Dr Doug Hilton proposed a fundamental shakeup, calling for a shift towards more industry collaboration on medium to large projects.

🤑 80% of NSW Govt startup grants awarded to metro Sydney companies leaving regional-based startups behind

• The NSW Govt MVP Ventures Program, provides $25-50K of matched funding to early-stage startups from a pool of $3 million.

• The program has funded 34 recipients with only 7 from suburbs outside Sydney, according to an investigation by SmartCompany.

👯 Queensland Innovation Advisory Council welcomes 12 new members (Queensland Chief Entrepreneur)

• Check out the full list here!

🛰️ Adelaide-based space startup signs deal with India to launch a satellite in 2026 (Captial Brief)

• The new satellite, Optimus, will focus on debris characterisation, enhancing space junk management and extending the lifespan of existing satellites. 

• This collaboration strengthens space diplomacy (our favourite kind of diplomacy 🚀) between Australia and India, supported by an $8.5 million grant from the Australian Government.

• This announcement comes in the same week as China’s lunar probe returns from a successful mission to land on the dark side of the moon 🌒🇨🇳.

💼 New power brokers about town

• Tech Council of Australia has appointed WiseTech CEO Richard White and PEXA Group Chief Technology Officer Eglantine Etiemble to the peak industry body’s board of directors.

• Australian Research Council has appointed deep tech incubator, Cicada Innovations, boss Sally-Ann Williams and Pawsey Supercomputing Centre chief Mark Stickells to its board.

• Australian Computer Society (ACS) has locked in its appointment of Josh Griggs as its CEO, after he held an interim position for the past 6 months.

 ⚡️ Startup Retro ⚡️

Samara Eco snags $100M Series A+ for enzymatic recycling that recreates virgin-grade plastic

Founder: Paul Riley

Canberra-based recycling innovator Samsara Eco has raised $100 million in a Series A+ funding round. The funding comes from new and existing investors including Singapore’s Temasek, Main Sequence and Titanium Ventures (formally Telstra Ventures), leisurewear giant lululemon, Wollemi Capital, Japanese based Hitachi Ventures, and DCVC. 

Samsara Eco's technology harnesses natural enzymes to break down complex plastics (specialising in nylon 6,6) into their original monomers, enabling the creation of new, virgin-grade plastics without fossil fuels. The aim is to create a truly circular recycling process. The process can efficiently handle hard-to-recycle plastics, including mixed and contaminated types, producing high-quality monomers for new plastics, with minimal environmental impact and carbon-neutral operations.

The startup has previously partnered with lululemon to create the first product made from enzymatically recycled polyester. It previously raised $56 million in a Series A funding round in 2022.

Samsara Eco plans to use the funds to build new commercial facilities in Southeast Asia, expand its global team of chemists, engineers, and technicians, and increase its library of plastic-eating enzymes. 

Due Diligence: Captial Brief

Klean cleans up with $750K pre-Seed for eCommerce ESG platform

Founder: Shan Vahora

ESG brand authentication, Klean, based in Brisbane, has raised $725,000 in a pre-Seed funding round. Founded in late 2022, Klean aims to cater to the 70% of Millennial and Gen Z consumers who prioritise ESG credentials in their purchasing decisions. The pre-Seed round was led by Prtnr Ventures, founded by Wayne Gerard, a former Queensland Chief Cntrepreneur. In addition to the pre-Seed funding, Klean also received a $200,000 IGNITE grant from the Queensland government.

Klean’s product is highlighted at eCommerce checkouts and allows customers to participate in ESG projects. Four projects are offered at checkout and could include deforestation in Western Australia to projects in Indonesia. Furthermore, the projects offered help brands attract customers by measuring and showcasing their ESG credentials across social impact, carbon, and more.

The startup collects data from eCommerce transactions and uses AI to assist retailers in increasing customer retention and lifetime value through social media ads and email retargeting. Klean's platform currently has 15 customers, including brands such as Wild Earth, OCAM, Hommey, and Arms of Eve.

The funds will be used for growth, product development, marketing activities, and the development of AI-based analytics and consumer engagement tools for retailers. Klean aims to reach 50 brands within the next 12 months, raise a Seed round, and expand to the USA.

Due Diligence: Startup Daily

Diraq lands $10M in Series A expansion to build the world’s first fully error-corrected quantum computer

Founders: Andrew Dzurak

Sydney-based quantum startup Diraq has secured an additional $10 million in an expanded Series A round, bringing the total Series A2 funding led by French VC fund Quantonation to over $33 million. Main Sequence, Taronga Ventures, Uniseed, UniSuper, Co:Act Capital, and UNSW have also contributed, raising the Series A value to over $63 million and total investment in Diraq to around $194 million, including grants.

Diraq aims to develop the world's first fully error-corrected quantum computer by 2028. The quantum computing company is working to become an end-to-end quantum computing provider that delivers quantum hardware and software-as-a-service. The company builds quantum processors using silicon ‘quantum dot’ technology and first patented the process in 2014.

Diraq plans to use the funds to expand its Australian team, launch in the US, and strengthen international partnerships. Their technology integrates existing silicon hardware with patented CMOS qubits, setting them apart from competitors like PsiQuantum, which uses photons for qubits and has secured nearly $940 million from the Australian government in a mix of equity, debt and grants. Regardless, check out the product roadmap here for Diraq. 

Due Diligence: Innovation Aus, Digital Nation Aus

Aquila secures $2M follow-on funding to build Lightway Sentry, a optical power-beaming product

Founders:  Billy Jeremijenko and Nelson Smith

Sydney-based Aquila, which is building the world's first optical power-beaming product to power drones and aircraft remotely, has secured A$2 million in follow-on funding led by Alua Group, with support from Blackbird and Icehouse. The funding follows the initial Seed round of $3 million last year. 

Aquila is currently developing it’s core product, Lightway Sentry; technology that wirelessly charges drones mid-air. This innovation promises continuous flight for drones, revolutionising sectors like environmental monitoring and search and rescue. The Aquila technology is already powering drones via lasers, with a recent demonstration proving the company is able to achieve charging from a distance of 50 metres, smashing existing industry benchmarks.

With successful trials and strategic partnerships, Aquila aims to build a scalable, light-based energy network, transforming global energy distribution and creating a sustainable future. The new capital will accelerate product development and expand their team. The long term goal is to establish an “internet of energy” which will take the form of space-based optical relay systems that will supply electricity markets worldwide.

Due Diligence: Aquila Blog, Business News Australia, Startup Daily 

National Renewable Network secures $1M in Pre-Series A funding led by Investible

Founder: Alan Hunter

The National Renewable Network (NRN), a Sydney based platform for renewable energy assets, has raised $1 million in a pre-Series A bridge funding round, led by Investible's Climate Tech Fund who tipped in $400,000. This oversubscribed round included contributions from Electrifi Ventures and angel investors, marking a crucial step in NRN’s mission to democratise renewable energy access in Australia.

NRN’s model allows consumers to access solar and battery installations with no upfront costs. The adoption of more solar and batteries allows end users to reduce energy bills, increase property values, and support grid stability. Partnering with energy retailers, NRN's model yields higher profits compared to customer-owned systems and provides solar retailers with higher margins.

The capital investment follows a $10 million funding facility from Catalytic Impact Capital, an impact/ESG-focused private credit business. 

NRN aims to outfit hundreds of thousands of Australian homes with renewable energy systems by 2030, scaling to over two million homes worldwide by 2040. This funding positions NRN to accelerate its mission, benefiting both the environment and economy

Due Diligence: Capital Brief

Affinda finds $10M at $120M valuation for document analysis platform with AI capabilities

Founders:  Ben Toner & Tim Toner

Affinda, a document analysis firm that bootstrapped for over 10 years has secured $10 million in funding, doubling its valuation to $120 million in 18 months. The Melbourne-based scale-up, founded by siblings Ben and Tim Toner, previously raised $12.9 million in 2022. Key investors include Paul Little, Ashok Jacob, and Greg Ellis.

The funds will boost Affinda's global team from 65 to 100, focusing on AI and software engineering, partnerships, sales, and marketing. CEO Tim Toner highlighted the company's ambition to revolutionise document processing, leveraging proprietary AI technology to deliver solutions across various industries. The platform can read, understand and extract data from any document type by using computer vision, natural language processing and deep leaning. 

Affinda is experiencing annual revenue growth of 150-200%, serving over 1,500 customers in 75 countries, with half of its revenue from international markets. The platform is trusted by the likes of Bloomberg, Seek, PWC, Toshiba and Fidelity. 

Due Diligence: AFR, Capital Brief, Business News Australia 

Fun fact 💡 The founders, Ben and Tim Toner, are related to Helen Toner, the Australian researcher who was on the OpenAI board that kicked Sam off. 

1Breadcrumb secures $4M to expand construction workforce tools to UK and US markets

Founder: Paul Willson 

Melbourne-based construction safety startup 1Breadcrumb has raised $4 million in a funding round led by Five V Capital to expand into the UK and US. Founded in 2020, 1Breadcrumb aims to drive digital transformation in high-risk industries. The platform is already utilised by over 25,000 subcontractors and 300,000 site workers in Australia and the UK.

1Breadcrumb streamlines safety requirements, syncing key information to project management software like Procore, a participant in the funding round. CEO Simon Elliott, who has led the startup since 2021, emphasises the platform's user-friendly design that enhances transparency and reduces manual administration on construction sites.

The software can help with on-site and offsite inductions, permit management, workforce attendance, site access and alerts for workers. 1Breadcrumb has already secured 300 clients globally with 30,000 projects managed on the platform. Customers include the Cushman & Wakefield, CoBuild, Buildcorp and the Far East Consortium. 

Due Diligence: Capital Brief, Startup Daily 

Sindy Labs secures $300K to help learning institutes become AI-enabled

Founder: Benjamin Arya and Oliver Cucanic

Melbourne-based AI startup Sindy has raised $300,000 after being selected for UC Berkeley's SkyDeck accelerator. Founded by medical student Benjamin Arya and PhD graduate Oliver Cucanic, Sindy develops AI-enabled software to enhance university operations. 

The platform helps universities engage, assess, provide personalised feedback, and ensure academic integrity for large cohorts. Initially named Sincidium, the startup was born from the founders' experiences as students. Both Arya and Cucanic have since left their studies to focus on Sindy full-time. The platform has a focus on oral evaluations, harking back to Socratic dialogues and Oxford debates. The team plan on using AI to rekindle this ancient tradition and offer AI-enabled assessments of oral debates. 

The software is currently piloting at the University of Melbourne and UC Berkeley. Winning a University of Melbourne startup competition in 2022, Arya and Cucanic have relocated to San Francisco for the SkyDeck program. SkyDeck alumni include notable successes like e-bike company Lime and edtech unicorn Empowering.

Due Diligence: Business News Australia

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

🥳️ Wins 🥳

🥇 Victorian Governor’s Startup Awards (Launch Vic)

The annual Victorian Governor’s Startup Awards recognises individuals and organisations from the local ecosystem have contributed to its growth through their outstanding achievements. Here are the hard-working winners:

• Ecosystem Hero of the Year: Jeanette Cheah, CEO and Co-Founder, HEX

• Investor of the Year: Jodie Imam, Co-Founder and CEO, Tractor Ventures & Rachel Yang, Partner, Giant Leap

• Best Newcomers:

  • Jupiter Ionics - Breakthrough Green Ammonia production technology for the agriculture and energy sectors.

  • BuildPass - A ConstructionTech streamlining site operations.

• Startup of the Year: DAS - Satellite mapping technology that performs productivity and disaster risk assessments from space.

• Scale-up of the Year: Acusensus - An ASX-listed company that adds AI to road safety cameras to detect distracted drivers.

👀 Vibe Check 👀 

🌶️ The AFR Entrepreneur Summit uncovered some spicy takes (AFR)

• Employment Hero CEO Ben Thompson thinks super funds should exempt 1% of their funds from asset performance tests in order to make them eligible for investment into VC and boost startup funding (but not everyone agreed…).

• Honey Insurance founder Richard Joffe and Goterra boss Olympia Yarger said tech workers needed to realise that, to succeed in a start-up, “you’re not optimising for work-life balance”.

• Square Peg Capital partner James Tynan warned that smaller VC funds may struggle to raise from LPs in the current market.

• Airwallex co-founder Lucy Liu talked about prevailing incorrect gender stereotypes around women being less ‘cut-throat’ than men, highlighting her own leadership experience.

🤑 New Funds, Who’s This? 🤑 

🎨Telstra to exit their venture fund and the fund re-brands to Titanium Ventures

• Telstra Ventures, set up in 2011, will sell its investments in its venture capital fund to free up some cash. This follows the recent announcement of 2,800 job cuts. 

• According to financial reports, Telstra has around 62.5% of Fund 2 and 50% of Fund 3. (Capital Brief)

• The venture capital fund, now known as Titanium Ventures, will continue investing with the same mandate in AI, digital, and software. (Albert Bielinko, Partner announcement on LinkedIn)

🌊Tenacious Ventures lands a $18M fund, against the tide (Capital Brief)

• Tenacious Ventures secured $18 million for its second fund's first close, targeting $50 million for early-stage agtech startups. (AFR)

• The fund’s LPs (limited partners) include Trawalla Group, Wollemi Capital Group, Macdoch, and Hutcheon and Pearce, plus exited founders, tech execs, and primary producers.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♀️ 

Want a behind-the-scenes view on how one of Australia’s leading VCs turns thousands of pitch decks into a handful of strategic investments? Read this 👇️ 

Will’s Pick 💁‍♂️  

I recently learned that one of the highest-grossing iPhone and iPad apps of all time was developed in Hobart. This is a beautiful, long-form piece about a great business operating in a state that is often overlooked for tech & startup development. Hope you enjoy!

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‘Til next time,

👋 Will & Gem