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. 🇦🇺 🚀 

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👀 Headlines 👀 

⬅️➡️ Democracy Manifest: Paul Bassat launches Amplify (Capital Brief)

• Bassat, the co-founder of Seek and founder of Square Peg, has launched a platform that aims to host events around the country, facilitate conversations online and share evidence.

• The ultimate goal? To improve trust in democracy and persuade Canberra policymakers. Check out Amplify here.

🫧 AustralianSuper writes off $1.1B investment in US-based Pluralsight who acquired Aussie darling A Cloud Guru in 2021 (AFR)

• The $2 billion sale of A Cloud Guru was a big exit for the ecosystem with its co-founder brothers, Sam and Ryan Kroonenburg, securing healthy exits. The venture investors included Bain Capital and Sydney-based Airtree Ventures. Sam has gone on to start Cuttable, which recently announced its Seed raise.

• Pluralsight was once valued at more than US $5 and was taken private by AustralianSuper and Vista Equity Partners in 2020 in a deal worth US $3.5B. The acquisition of A Cloud Guru followed in 2021.

🔎 New report suggests a majority of Aussie startups are choosing to keep their raise announcements private (Capital Brief)

• The report from Techboard claims that more than 50% of startup deals in the fintech sector in 2023 (worth an estimated $684 million) didn’t get reported publicly.

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InDebted targets $44M Series C at $210M+ valuation for debt collection 

Founders: Josh Foreman

InDebted, a digital debt collection firm founded by Josh Foreman, is nearing the close of a Series C funding round aiming to raise $US30 million (AU$44 million). This raise is expected to boost the company’s valuation beyond the $210 million it reached after its last funding round in 2021. 

InDebted, which has received backing from investors like Westpac’s Reinventure and Perennial, uses machine learning and behavioural data to offer a less aggressive approach to debt collection. They offer customers the ability to “give [their] customers personalised experiences to manage their debt, their way”. Growth has come particularly in the US, where it acquired Delta Outsource in 2021. The US market now contributes 80% of InDebted’s revenue, driven by the massive credit card debt market, which hit $US1.4 trillion this year. The company currently has an impressive a 4.9/5 star rating from 2,479 Google reviews.

As InDebted eyes further growth, it has added Harvey Carter’s new boutique firm, Currawong, to its advisory board. The Series C round, led by an unnamed fund, could help InDebted continue its US expansion and cement its position against competitors like Credit Corp and ASX-listed Collection House. The funding comes amidst a busy period in financial institutions' banking, highlighted by major transactions and acquisitions across the sector.

Due Diligence: AFR

Inform Ag snags $7M Series A for expansion

Founders: Jennie Savill

Queensland agtech startup Inform Ag has secured $7 million in a Series A funding round led by Rural Funds Group, marking its first external funding after 12 years of bootstrapping. The funds will fuel the company’s growth, focusing on scaling operations, enhancing product development, and expanding its market reach. 

Inform Ag, founded by Jennie Savill in 2012, focuses on improving efficiency and data-driven decision-making for farmers and agribusinesses. The startup has seen a 300% revenue increase over the past year, driven by its GrowData Ops platform that tracks production, inventory & cost inputs.

The business was already profitable and the new funds will accelerate growth without immediate plans for further raises. Inform Ag aims to fully automate key farming operations, making labour shortages less disruptive. The company is targeting domestic expansion in regions like Sunraysia and North Queensland, while also eyeing the US market, particularly in Southern California and Florida.

Due Diligence: SmartCompany

Spoony scoops up pre-Seed for a community platform for neurodivergent, chronically ill, and disabled individuals 

Founders: Nicholas Carlton and Kenneth Liang

Spoony, founded in August 2024, aims to create a community platform for neurodivergent, chronically ill, and disabled individuals. Co-founded by Nicholas Carlton (CEO) and Kenneth Liang (CTO), Spoony seeks to address the social isolation often experienced by this group by blending social connection with healthcare support. The platform allows users to connect with friends, therapists, and support workers, providing a continuum of peer-to-peer and professional support.

Backed by Antler with their standard pre-Seed terms ($225,000 for 12%), Spoony has quickly gained traction, with 26,000 users on its waitlist and 1,200 active beta users. Early engagement metrics are promising, with users averaging 3.5 daily interactions and reporting a 25% reduction in “loneliness”. Spoony has also seen viral success on TikTok, generating millions of views and over 12k followers, helping expand its reach globally.

With the new funding, Spoony plans to enhance product development, scale globally, and launch on both iOS and Android. The founders envision Spoony as more than just a product—it's a movement aimed at empowering a marginalised community by creating a sense of belonging.

Due Diligence: Startup Daily

WhyHive lands $600K pre-Seed for data analysis tool 

Founders: Matt Cohen and T Guthrie

Melbourne-based startup WhyHive has secured $600,000 in a pre-Seed funding round led by Skalata Ventures, with backing from notable investors like Jon Williams (Culture Amp), Alex Zaccaria (Linktree), and Dom Pym (Up Bank). Founded by T Guthrie and Matt Cohen, WhyHive aims to democratise data analysis, positioning itself as "the Canva for data". The platform enables users to easily upload and analyse data, such as surveys or sales figures, with just a few clicks.

Leveraging AI and a considered approach to the product’s UI design, WhyHive simplifies data analysis, making it accessible for everyday users who may lack advanced technical skills or hate building spreadsheets. The startup emerged from Guthrie and Cohen’s experience running a social enterprise data consultancy, where they recognised the need for an intuitive tool to make data analysis more approachable.

In a unique move, WhyHive has open-sourced their fundraising data as part of its launch, sharing it within the app to help other founders navigate the fundraising process. Users of the platform can view the data after creating a (free) login.

The funding will be used to enhance their analytics engine, which blends AI technology with data science logic, offering a more reliable alternative to tools like ChatGPT. WhyHive is currently available for free access, aiming to empower users to explore data and advocate for their ideas more effectively.

Due Diligence: Startup Daily

Shift secures $35M Series D for business lending FinTech

Founders: Jamie Osborn

Sydney-based fintech Shift has raised $35 million in a Series D funding round led by Indian venture fund Peak XV Partners, formerly known as Sequoia Capital India. This marks Peak XV's second major investment in Shift, following a $27 million Series C round in February 2023. The decade-old fintech, which rebranded from GetCapital in 2021, provides a range of business credit and payment solutions, including overdrafts, term loans, and equipment finance.

Shift, founded by CEO Jamie Osborn, has already supplied over $3.5 billion in funding to 25,000 Australian businesses. The new capital will be used to enhance its proprietary data models and platforms, aiming to improve credit decisions and customer experiences. Shift competes with firms like Prospa and Judo Bank, offering small business loans of up to $1 million.

With this latest investment, Shift aims to solidify its position as a provider of credit and payments to Australian businesses, continuing its growth trajectory amidst challenging economic conditions.

Due Diligence: Startup Daily, AFR

Cropify grows with $2M Seed for precision grain grading technology powered by AI

Founders: Anna Falkiner and Andrew Hannon

South Australian agtech startup Cropify has raised $2 million in a funding round led by Mandalay Venture Partners and Singapore-based Hatcher+. 

Founded in 2019 by CEO Anna Falkiner and COO Andrew Hannon, Cropify uses AI technology to enhance the precision of grain grading, providing growers, grain handlers, and marketers with an objective and repeatable system. The startup’s AI-driven approach promises to improve efficiency, reduce costs, and promote sustainability within the agricultural sector.

This funding marks a pivotal moment for Cropify, enabling the company to strengthen its team and focus on commercialising its technology in Australia by 2025. The investment is also the first joint venture between Mandalay and Hatcher+, who recently partnered to accelerate the growth in the agrifood sector.

Due Diligence: SmartCompany

Funding the Balance | Weekly Edition

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

🤑 New Funds, Who’s This? 🤑 

⚕️Walter and Eliza Hall Institute of Medical Research (WEHI) has launched a $66 million fund called 66ten to support biomedical innovation over the next decade, making it the largest internal pre-Seed and Seed fund by an Australian medical research institute. (Capital Brief)

• 66ten, managed by WEHI Ventures, aims to bridge the gap between scientific discoveries and commercialisation, providing sustained support for projects at various development stages.

• The fund's mission is to transform groundbreaking research into commercial programs that deliver both patient outcomes and financial returns.

🌱 Seedlab Australia has secured an extra $7M from Woolworths (Startup Daily)

• Seedlab is an accelerator that focuses on food, drink, and sustainable personal care products. This follows an initial $4 million investment in 2021.

• The accelerator targets supporting around 500 businesses across Australia and New Zealand over the next three years. The program has already helped nearly 400 businesses, leading to a 210% increase in production and the creation of 140 full-time jobs.

• Seedlab's Bootcamp and Cultivate programs equip entrepreneurs in the FMCG sector with skills in retail readiness, marketing, and pitching to big supermarkets like Woolworths.

🧬 Main Sequence launches Atmosphere (Capital Brief)

• Atmosphere, which will invest up to $500,000 to help cutting-edge research become venture-scale businesses, is described by Main Sequence as a ‘platform’ rather than an incubator because it differs from traditional programs and will not run in cohorts. Instead, it will take a more personalised approach, adapting its support to the specific needs of each startup.

• Money invested into startups will be carved out from the Government’s $150M investment in the CSIRO Innovation Fund, announced in the 22/23 Federal Budget.

• It is hoped that Atmosphere will increase the quality and pipeline of companies for Main Sequence's core fund.

🎉 Wins 🎉 

👕 Enviro-tech Samsara Eco announces plans to build a world-first recycled nylon facility to tackle textile waste (Australian Manufacturing)

• The company has joined forces with nylon manufacturer, NILIT, to build a plant to recycle nylon 6,6 (one of the most widely used fabrics in fashion) in South East Asia.

• The facility aims to revolutionise the fashion industry by infinitely recycling millions of tonnes of textile waste, reducing its environmental footprint by giving apparel a second life and helping create ‘circular’ products.

• Samsara Eco announced a $65M raise in June this year, led by Temasek and Main Sequence.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♀️ Season 2 of Crucible Moments, Sequoia Capital

• Your next binge-worthy podcast series is sorted (you’re welcome 😜). The first episode of this season is with the founders of Service Now and the other episodes they’ve already teased will feature the founders of YouTube, DoorDash, Dropbox and Reddit. (P.S. Check out the website for the series 👆️ - very cool).

Will’s Pick 💁‍♂️ 13 ways to scam a founder raising funds, OpenVC

• This article breaks down 13 common ways founders can get scammed when raising funds. The article is a great resource, especially for founders new to the fundraising process, to help identify red flags from investors, angels, and advisors.

• If you’re some of the latter, perhaps a good read to reflect on and ensure you’re not doing any!

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‘Til next time,

👋 Will & Gem