G'day and welcome to Overnight Success! 👋 

Here’s what filled our news and social feeds this week…

• Christmas parties are kicking off (aka FOMO is increasing 📈 , while work productivity is decreasing 📉).

• People are getting excited to head to West Tech Fest in Perth next week. Send us your quokka pics please!

• It was ChatGPT’s first birthday, and we still can’t believe we don’t use it to write this newsletter 🤯.

• Everyone obsessed over Spotify Unwrapped, while Mitch King (Mutinex) created our favourite spin off of the season.

• RIP Charlie Munger ❤️. We’ve been listening to one of his final public interviews - the only long-form podcast interview he ever did - courtesy of the Acquired Podcast.

Special thanks to Gemma, who did the lion's share of this newsletter while Will was off with COVID-19 🤧.

Housekeeping: Does your OS newsletter get cut off by Gmail’s pesky mobile app? You can read the full version without interruption here.

Headlines

🤑 The Federal Government’s Industry Growth Program has officially launched

• As part of the National Reconstruction fund, the Feds have committed $392M to this program, including the delivery of advisory services by a national network of experts and matched grant funding ranging from $50,000 to $5M to eligible startups.

• Ed Husic is excited, although some in the ecosystem are cautious given past experiences with the delivery of similar programs, such as the Coalition’s Entrepreneur’s Program (see: Smart Company & Information Age)

🎓 UNSW is the first to implement the new Startup Year program (Startup Daily)

• The Startup Year Program is a newly minted government program offering university students HECS-style loans to help start their own new ventures.

• UNSW Founders is a well-established and recognised university-backed accelerator. Learn how to apply here.

🦅Blackbird explains investment in 11 all-male teams in a row since June 2022 after committing to disclosing data related to their funding of women-led businesses. (Smart Company)

• Blackbird clarified it has made 22 investments since June 2022, and 23% of those have included women founders, above the industry average of 19%. The teams with female founders just haven’t publicly announced their raises yet - watch this space.

PLUS…8 capital raises, 5 Aussie startup wins & more M&A activity than you can poke a stick at below…! 🕺🏻💃🏻

⚡️Startup Retro⚡️

Nexl secures $6.6M Series A to modernise the legal industry

Founder: Philipp Thurner

Nexl, a legal-tech CRM platform, has secured $6.6 million in Series A round. The round was co-led by Shearwater Capital and EVP, bringing Nexl's total capital raised in 2023 to $10 million and follows on from a $4 million raise in March 2023.

Founded in 2019 by Philipp Thurner, the former head of innovation at Gilbert and Tobin, Nexl initially aimed to become a LinkedIn-style network for lawyers. This model helped raise an initial Seed round of $820,000 from Vulpes and Saniel Ventures but needed help finding a profitable model. In response, Thurner pivoted Nexl into a legal sector CRM platform, launched in January 2021. This move also addressed the issue of inaccurate relationship data, improving collaboration across law firm departments.

Nexl's platform now integrates traditional CRM functionality with relationship intelligence, email marketing, and project management. It is already in use by top law firms in Europe, the US, and Australia, including Australia's six leading firms. The fresh funding will fuel Nexl's expansion in the US and further product development.

When we reached out for an exclusive quote from the founder, Phillpp said,

We couldn’t agree more.

Due Diligence: Startup Daily, Albert Patajo LinkedIn Post

Soho.com.au raises $750K at a $20M valuation to grow the AI-powered property app

Founder: Jonathan Lui

Soho.com.au, an AI-powered real estate discovery app, has seen its valuation rise to $20 million following a $750,000 equity investment from Singapore prop-tech fund Feedback Ventures. Founded in 2018 by Airtasker co-founder Jonathan Lui, Soho didn't intend to take on more funding in 2023, having achieved cash flow positivity earlier in the year. Nonetheless, the investment will accelerate the company's growth.

Soho's platform, using AI, personalises real estate searches, functioning like a "Tinder for real estate" with its PropertyMatch system. Soho is operating across all Australian capital cities and some regional areas. The platform has over 150,000 properties and collaborates with 20,000 real estate agents monthly, having connected users with over six million property recommendations. The app is free for agents, clients, and users. While the business model isn’t entirely clear, Soho appears to be building a referral business for property-related services and needs like mortgages, moving services and more.

For buyers, the AI engine learns the properties you like and can present these to you first. Soho plans a larger Series B round in 2024 to expand its Australian presence and enter new markets. It has raised over $8 million since its inception.

Due Diligence: Business News Australia

CorePlan strikes gold with $4M to modernise exploration drilling activities

Founder: Alex Goulios

Perth-based startup CorePlan, specialising in mining and drilling technology, has successfully raised $4 million in a funding round led by EVP. The tech replaces outdated paper-based processes with a digital drilling platform. This platform, conceived by former mining consultant Alex Goulios, facilitates seamless connectivity between mining companies and drilling contractors for logging activities, workflow monitoring, and regulatory compliance. The platform has secured heavyweight clients like BHP, Fortescue and AngloGold.

Goulios, a Curtin University graduate in geographic information systems, refined CorePlan's focus to address the critical challenge of managing drilling programs. CorePlan currently has a team of 25 and plans to use the new funding to double its headcount and expand into the North American market. This expansion necessitates a move to a larger office, having outgrown their Perth headquarters in just one year.

The platform boasts around 77 customers globally and has logged over 400,000 drill holes, totalling more than 10 million meters in depth.

Due Diligence: The Australian

Rich Data Co (RDC) raises $28M Series B to bring AI into business lending decisions

Founders: Ada Guan, Charles Guan

In a significant boost to its global expansion, AI-powered platform Rich Data Co (RDC) has successfully closed a $28M Series B funding round. The round was led by Westpac and global cloud banking leader nCino. RDC's AI platform specialises in aiding banks to make efficient, secure lending decisions. With this new funding, RDC aims to accelerate its expansion into North America, building on its established presence in Australia and New Zealand.

Founded in 2016, RDC provides banks with insights into borrower behaviour, which can enhance the precision and efficiency of business lending decisions. The company notably collaborated with Westpac for its Australian business lending operations and secured a global resale agreement with nCino last year.

The investment by Westpac marks a return by the bank into the startup funding scene.

Due Diligence: IT Brief, AFR

EnvisionVR raises $2.585M for virtual reality property tours

Founders: Michael Shaw, David Esber

EnvisionVR, a virtual reality property walkthrough technology, has raised $2.585 million. Founded in 2019, EnvisionVR brings off-the-plan property development into the future through its mobile platform, leveraging virtual and augmented reality. In just 18 months, the platform has facilitated sales of over $500 million in property.

Australia sits on around $2.2 billion in holding costs associated with Australian off-the-plan developments, and EnvisionVR aims to speed up the sales process. EnvisionVR stands out by offering high-quality AR/VR experiences accessible on mobile phones, tablets, and VR headsets, bypassing the need for high-powered computers or tethered systems.

The platform matches 3D designers with developers to create and offer these experiences to their clients. The designer network now extends to over 20 CGI studios in six countries; EnvisionVR is set for international expansion, using the new funds to scale globally and enhance its technological capabilities.

Due Diligence: Startup Daily

Stropro raises $3M to democratise sophisticated investing products

Founders: Anto Joseph, Ben Streater

Sydney-based FinTech, Stropro, an alternative investment platform, has raised $3 million in funding. EVP led the round and participated alongside was Matt Browne from Black Nova Venture Capital, Dale Holmes from Spire Capital and Seedspace Venture Capital.

Stropro provides sophisticated investors access to products issued by global investment banks. These products have previously been restricted to private banks and institutions. The Stropro platform caters to private wealth advisers, family offices, and corporations with diverse investment portfolios.

The platform has seen $300 million in inflows since 2020. The capital raise will be used to expand distribution partnerships and integrate with major wealth management platforms like Sharesight, enhancing its alternative investment offerings.

Due Diligence: Afterwork VC's old investment memo, Smart Company

Carbon Cybernetics launches with $480K pre-Seed to treat neurological disorders

Founders: Prof Steven Prawer, Associate Professor David Garrett, Dr Nicholas Apollo & Dr Matias Maturana

Carbon Cybernetics, a groundbreaking technology originating from The University of Melbourne School of Physics, has recently secured a pre-Seed investment of $480K from The University of Melbourne.

Carbon Cybernetics is developing a cutting-edge brain implant device, a project that holds immense promise for transforming the way clinicians approach epilepsy and similar conditions. The device's unique ability to generate high-resolution neural data will enable doctors to record individual neurons, offering a deeper understanding of brain activity and paving the way for more effective therapeutic interventions. Instead of metal electrodes, the implant uses arrays of carbon-fibre electrodes. The electrodes are ignored by the immune system and are small enough to record the activity of individual brain cells.

This funding marks a pivotal step in the startup's journey towards revolutionising the treatment of neurological disorders such as epilepsy. The fresh infusion of capital will be instrumental in propelling Carbon Cybernetics towards commercialising this technology. Additionally, the funds will facilitate crucial pre-clinical activities, setting the groundwork for an ambitious early feasibility study involving human subjects.

Due Diligence: The University of Melbourne, Smart Company

Resvu raises $4M to build better tools for the body corporate (strata) market

Founder: Tom Welsby

Adelaide-based strata management platform Resvu has closed a $4 million round to help fuel the company’s global growth. Resvu services the body corporate manager market by providing tools for portfolio management, committee management, requests for repairs and community management.

The fresh capital will be pivotal for Resvu's expansion in the US market, with plans to bolster its sales and marketing teams significantly. Resvu, founded in 2017 by Tom Welsby, a former strata manager, offers a customer service experience platform tailored for the community and strata management sector, complemented by a homeowner mobile app. The platform aims to foster a more collaborative and transparent relationship between strata managers and residents.

Currently, Resvu's solutions are used by over 700,000 homeowners worldwide. The startup was built with the founder's firsthand experience as a strata manager. This allowed a targeted approach to alleviating the administrative burden typically shouldered by strata managers.

Due Diligence: The Australian

New Funds, Who’s This?

Electrifi Ventures

• This new angel syndicate founded by Danin Kahn and powered by Aussie Angels will focus on funding early stage climate tech startups. (LinkedIn Announcement)

HSBC Venture Debt

• The banking giant has announced it aims to funnel $200+ million in venture debt funding to later-stage Aussie startups as part of a new product offering. (AFR)

Happenco

• This early-stage startup backer has closed $12 million for its first fund, most of which is already committed to its portfolio, which has been growing since 2021. (Business News Australia)

(One from across the ditch…🥝) Icehouse Ventures

• The NZ-based VC that regularly co-invests alongside its Aussie counterparts has raised NZD$10 million of equity capital to support the growth of its own team so they can keep backing Kiwi innovation. (Startup Daily)

Aussie Raisins

Birchal is raising $3M (Startup Daily)

• In what could be called “crowdfunding inception”, Birchal is currently seeking EOIs for a crowdfunding campaign, on it’s own equity-based crowdfunding platform, so it can keep supporting other businesses to crowdfund 🤯.

M&A Action

Forget silly season, acquisition season has officially kicked off, meaning we needed to create a whole new section for them all! Here’s a snappy round up 👇🏻.

• Future Super acquired Verve Super (Founder, Christine Hobbs - LinkedIn Post)

• Fintech TaxLeopard acquired rival company, Airtax (Startup Daily)

• Kayla Itsines bought back her fitness app Sweat (Startup Daily)

• Hospitality QR-code ordering apps me&u & Mr Yum have finalised their merger, agreed on their “new” name and maintained Kim Teo as CEO (Business News Australia)

• Sportstech enterprise Crionet acquired live sport graphics platform Ligr (Investible Blog)

Wins

🥗 Recime won the Best App for Everyday Essentials from Google Play (LinkedIn Post)

• The startup received $500k in pre-Seed funding late last year for it’s recipe organisation and social sharing app.

👀 Eyeonic won SmartCompany’s The Pitch (LinkedIn Post)

• The startup has built an AI-powered online glaucoma testing tool that eliminates the need for a $40k machine.

🚜 Tractor Ventures won “Fastest Growing Fintech” from the Australian Financial Review

• The venture debt firm has worked tirelessly since its founding in 2020 to make its brand synonymous with this increasingly popular form of capital amongst Aussie founders.

💁‍♀️ LaunchVic has backed SBE with a $100,000 grant to grow their program backing female founders (Startup Daily)

• The money will allow for the development of ‘SBE Advisory’, an independent, bespoke advisory service for women-led businesses.

🚀 HEO is launching a US office (Business News Australia)

• Just a few months after securing a $12 million Series A, the Sydney-based space startup, founded in 2016, has announced it’s setting up shop in Washington DC; a strategic location as it looks to work with defence agencies, government entities and commercial organisations.

Data Insights

EY x FinTech Australia Census

• “The only detailed, industry-backed analysis of the Australian fintech industry” has just been released.

• Key insights include; a downward trend in paying customers for post-revenue FinTechs, less new-entrants (<1 year old) to the sector this year (3%) than there were last year (10%), and 41% of respondents didn’t hit their capital raise goals, compared to 29% last year. Read the full report here.

Indigenous-owned businesses create positive employee outcomes & provide an example for others

• A new study published in The Conversation this week showed that ~36% of employees in Indigenous-owned businesses, are Indigenous; helping close the massive gap between Indigenous and non-Indigenous employment.

• But the benefits don’t end there. Indigenous business owners were also shown to have higher cultural competency and were more committed to addressing and eliminating racism in the workplace, with the researchers suggesting these leaders could offer some valuable lessons to non-Indigenous businesses 👀.

Pitchbook’s H2 Tech VC Report

• Particularly interesting for founders looking to expand or raise overseas - this report provides a pulse check on the global VC landscape, with a heavy focus on perspectives from North America.

📆 Overnight Success now co-hosts the Aussie & NZ Startup Events calendar, created by Startmate and supported by The Community Collective.

KaaS (Knowledge as a Service)

Gemma’s Pick 💁‍♀️ SaaS Security Bootcamp

• Aussie startup, Kinde, has pulled together this free, 12-module SaaS security guide, which might sound boring but equally sounds like something you might wish you’d read if your company ever experienced a security threat (cc: Optus, Medibank, Mailchimp). Check it out.

• In case you’re wondering - this is not sponsored (KaaS never is!), I just really respect high-quality educational content. If you’re an Aussie startup that’s created something you think is valuable to your fellow founders and operators - send it my way!

Will’s Pick 💁‍♂️  The Coca-Cola Company on Business Breakdowns (Podcast)

• In memory of Charlie Munger, I listened to the Coca-Cola episode of business breakdowns to better understand a business I interact with daily.

• Fun fact - There are over 2 billion Coke products are sold each day.

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‘Til next time,

👋 Will & Gemma