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 51 new subscribers who’ve joined us since the last edition. 👋 

An extra extra special welcome to the new subscribers joining us off the back of meeting IRL at this week’s Sunrise festival, hosted by Blackbird. The OS team was out in force, with Will and Gem both attending along with several of our Pulse Check correspondents; Erin, Georgina, Dickie, Preethi and Kirstin! (P.S. If you haven’t subscribed to Pulse Check yet, get on it quick - the next edition is out this coming week!). 👇️ 

And finally, we’re excited to announce the WINNER of the free ticket to Tropical Innovation Festival… Eduardo Barbato! Congrats Eduardo - we’ll be in touch with you soon! 🎟️ 🥳 

🔥 If your version of the newsletter gets cut short, never fear, you can read the full version without interruption here.

👀 Headlines 👀 

🏦💵 The Australian Government will invest a massive $940M into Silicon Valley headquartered PsiQuantum in a bet to build a quantum computer in Brisbane under the new Future Made in Australia Act.

• PsiQuantum was co-founded by Australians Jeremy O’Brien and Terry Rudolph and has historically been based in Palo Alto, California but will establish its regional headquarters in Queensland and operate its quantum computers there.

• This move is expected to generate up to 400 highly skilled jobs directly.

• Quantum computers differ from traditional computers as they use qubits which can exist in multiple states simultaneously, offering the potential to revolutionise fields like AI, cybersecurity, and medical research. However, despite over two decades of development, no quantum computers are in commercial use yet due to the instability of qubits.

• PsiQuantum, which last disclosed a funding round in 2021 with a valuation of $3.15 billion, has received prior investment from entities such as BlackRock, Microsoft's venture fund, and Blackbird Ventures. The firm’s technology, which utilises light instead of matter, requires ultra-cool temperatures to function and is currently developing advanced cooling solutions with the US Department of Energy.

🎯 Envato has been acquired by Shutterstock in a strategic 100% cash acquisition valued at $375M (USD$245M).

• Envato was founded in 2006 and is a subscription service that offers an unlimited library of assets for creative content. This acquisition expands Shutterstock's offering into web themes, mock-ups, fonts and templates for various other programs. Shutterstock have gained 650K subscribers which more than doubles their current subscriber base.

• Envato is famously a bootstrapped business meaning no external funding was taken on to build the business. According to Blackbird partner, Niki Scevak, Envato was one of the original inspirations for founding Blackbird.

This week two people named “David” received venture funding, while not one gender minority founder saw a dollar 🙈 

• Evidently, it’s a great time to be named David with Melbourne restaurant David’s offering free Yum Cha to anyone carrying their namesake during Autumn. Yay for Davids 🥟 .

⚡️Startup Retro⚡️

Kashcade raises a $22M debt warehouse and $1M in equity to grow non-dilutive funding business

Founders: Alex Simmons and Patrick Nappa

Kashcade, a Sydney-based non-dilutive lender targeting startups, has secured $23 million in funding. This financial boost is primarily composed of a $22 million debt warehouse facility from Rixon Capital and $1 million in equity contributed by high-net-worth individuals, including repeat investor Prandium Capital.

The fresh capital will enable Kashcade to venture into research and development lending. This funding allows companies to borrow against anticipated refunds from the government's R&D Tax Incentives—a scheme refunding around $3 billion annually. By lending against these loans, startups can access their funding up to 12 to 18 months early.

Co-founded last year by Alex Simmons, former CBA lending strategist, and Patrick Nappa, an ex-Apple software engineer, Kashcade caters to startups generating $1 million to $10 million annually through a SaaS model.

This funding round follows a $5.5 million raise in November 2023 and will also support enhancing Kashcade's financial analysis software.

Due Diligence: AFR, Startup Daily

Nucanon raises $500K pre-Seed to leverage AI to generate gaming lore

Founder: Nilu Kulasingham

Nucanon (formerly Stori), a Syndey-based GamingTech startup focused on streamlining gaming lore creation, has secured $500,000 in a pre-Seed funding round. The round was led by Skalata and featured contributions from Outlier Ventures, Paperclip Partners, Antler and gaming industry veteran Mark Aubrey.

Gaming lore encompasses detailed backstories and universe settings crucial for immersive game experiences and has become both complex and costly to produce. AAA games with vast narrative demands see production costs nearing $1 billion. Nucanon aims to alleviate this by integrating Large Language Models (LLMs) to assist in content generation. It offers a gaming-native tool specifically designed to support game makers in managing and expanding their storylines through an intuitive node-based interface.

The platform enhances narrative efficiency and encourages fan engagement, allowing gamers to contribute to lore development. This feature taps into the growing trend of interactive storytelling and has significant potential to boost game longevity and fan loyalty.

Nucanon boasts 15,000 demo users, a 3,500-person waitlist, and a strategic partnership with Gamurs, which connects it to a vast network of 66 million monthly gamers. The startup's technology promises to democratise high-quality narrative creation, making it accessible to smaller studios and broadening the potential for diverse storytelling within the gaming industry.

Due Diligence: OS Exclusive

Xefco raises $10.5M to develop sustainable, water-free textile-dying products

Founders: Tom Hussey and Brian Conolly

Xefco, a sustainable materials DeepTech, has secured $10.5 million in a funding round led by Main Sequence Ventures. Other investors in the round include Breakthrough Victoria and Virescent Ventures, representing the Clean Energy Finance Corporation. Investible and Voyagers Climate-Tech Fund.

Xefco aims to create environmentally friendly fashion production by advancing Xefco's Ausora technology, which facilitates water-free textile dyeing and finishing. For context, textile finishing and dyeing are responsible for 20% of global water pollution and 3% of global carbon emissions.

Co-founded in 2018 by Tom Hussey and Brian Conolly, Xefco has pioneered technologies like XReflex and Ausora, which enhance the ecological efficiency of textiles without compromising on quality. Ausora, in particular, utilises a unique 'shower plasma' process, allowing both natural and synthetic textiles to achieve traditional dye and finish qualities without environmental degradation.

Due Diligence: Au Manufacturing

Hometime raises $10M for Airbnb property management platform

Founders: William Crock and Dave Thompson

Sydney-based Hometime, an Airbnb property management platform, has raised $10 million in an equity funding round led by Fifth Estate Asset Management. This fundraising coincides with a nearing debt financing deal, setting the stage for an aggressive acquisition strategy within the fragmented property management sector.

William Crock and Dave Thompson, two university friends from Perth, launched Hometime in 2016. The platform's services range from handling guest inquiries to managing pricing, cleaning and photography. Their partnership with Airbnb in 2018 bolstered Hometime's offerings, expanding its reach across 35 tourism locations with approximately 2,000 properties under management.

Hometime manages an annual booking volume of $100 million, translating to $28 million in revenue through commissions. Despite COVID-19's rising cost of living, Hometime has survived and achieved record revenues in 2022.

Hometimes's strategy is now focused on consolidation opportunities in the market, aiming for smaller, undervalued assets, with new board members from Fifth Estate and Upswell Ventures. Hometime is considering an IPO or a trade sale within the next three to five years as potential exit strategies.

Due Diligence: AFR

Matrak lands $2.9M Series A to expand materials tracking platform into China

Founders: Shane and Brett Hodgkins

Melbourne-based construction startup Matrak has successfully raised $2.9 million in a Series A funding round to fuel its expansion into China. The round was led by Singapore's G&M Capital, with participation from Sydney's Our Innovation Fund, former Aconex chairman Simon Yencken, and other angel investors.

Founded in 2018 by Shane and Brett Hodgkins, Matrak specialises in connected materials tracking for global construction supply chains. The platform helps manufacturers, suppliers and builders streamline operations and mitigate risks, enhancing project transparency and efficiency. It has been utilised by over 280 clients on 400 projects, tracking more than 1.2 million materials for major companies such as Multiplex, Lendlease and John Holland.

The new funding will support the opening of Matrak's office in Suzhou, China, a strategic move backed by the China-Singapore Suzhou Development Corporation. This expansion aims to position the company closer to significant regional manufacturing clients, promoting more sustainable procurement practices globally.

The founders acknowledge the impact of the Austrade Landing Pads program in facilitating international connections and securing funding.

Due Diligence: Business News Australia

Enviz raises $1.5M to grow virtual reality property experiences

Founders: David Esber and Michael Shaw

Sydney-based PropTech EnvisionVR, now rebranded as Enviz, has secured $1.5 million in a fresh funding round led by investors including Michael and Henry Holm of Balmain Private. This capital boost will support the startup's rebranding efforts, expand its market presence, and enhance the automation of its product offerings.

Enviz operates at the intersection of augmented reality (AR) and virtual reality (VR), providing immersive virtual property experiences that allow users to explore unbuilt properties realistically.

The technology is built for property developers, sales agents, and buyers. It offers tools that integrate virtual tours, floor plans, and digital assets with essential real estate functionalities like stock management and CRM systems. Accessible via VR headsets, mobile apps, or web browsers, Enviz's platform facilitates real-time, on-site, and remote property interactions.

The VR technology is used by RayWhite, G.J Gardner Homes and Hall&Heart. Impressively, there is an increase in selling potential by 55% based on one viewing when the VR platform is used. To check out how it works, head here.

Due Diligence: Smart Company

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

🤑 Aussie Raisins 🤑

🚗 evee, a peer-to-peer electric car-sharing platform, is raising up to $1 million on Birchal to support expansion and product development

• evee is Australia’s largest 100% electric car-sharing platform, enabling car owners to monetise their assets while providing renters easy access to a range of electric vehicles (EVs) across Australia and New Zealand.

• With EV sales surging by 120% in 2023 alone, evee has amassed over 10,000 customers and over 22,000 rental days since 2016. evee takes a fee of 35% of the total confirmed booking, receives a 35% referral fee on insurance and sells a damage liability waiver. The total addressable market of car rentals in Australia is estimated to be $3.5B and $150B globally. You can invest here before Thursday 9th of May!

🥳️ Wins 🥳

Airwallex for Startups launches as “Australia’s most comprehensive program for local startups seeking to accelerate their growth”

• The program is free and open to registered businesses with 2-100 employees, offering practical resources, networking and content opportunities, exclusive product offers from Airwallex and others within the startup ecosystem, and the opportunity to win an AUD $10,000 Business Acceleration Grant. Learn more and apply here.

Atlassian launches its new “AI team mate”, Rovo

• Rovo will be accessible as an AI-powered search tool and via other integrations into Atlassian’s products. It will also integrate with several popular SaaS tools including Google Drive, Microsoft SharePoint, Microsoft Teams, GitHub, Slack and Figma.

📌 Notice Board 📌 

🎤 Pitch Opps | 🚀 Accelerator/ Program |💰 Competition/Grant | 📅 Event

🚀 Tennis Australia is accepting applications for the next AO StartUps intake, aimed at sports tech startups

• Startups that participate can get exposure at the Australian Open, and potential investment opportunities from Tennis Australia's venture capital fund, Wildcard Ventures. Wildcard Ventures was established in 2021 and has invested in various tech companies like Mr Yum and Swing Vision.

• Have a grand slam worth startup? 🎾 Applications close 24th May, 2024. Find more information and apply here. 

📆 MAP Launch 2024 📍Melbourne, 8th May

• Melbourne Accelerator Program (MAP) is the University of Melbourne's renowned accelerator initiative. At this event you’ll get a first look at the new cohort of founders and join in the excitement as they kick off their program journey over the next few months. Get your tickets here ($10).

🚀 ThincBoards Course 📍Adelaide, 9th – 10th May

• Join this 2-day course hosted by the team at ThincLab to get your business board ready, including access to practical resources that guide you in everything from what type of board to choose, to finding ideal future board members. Guest speakers include Sasha Baranikov, Elaine Stead, Alan Jones, Justin Dry, Sonia Mascolo and Kate Thiele.

• OS readers can get a 30% discount with the code “OVERNIGHTSUCCESS”. Secure your spot here!

📅 Climate Tech Showcase 2024 Hosted by Climate Salad 📍 Melbourne, 4th June

• Hosted by Climate Salad and the City of Melbourne, this event offers a unique opportunity to engage with startup solutions, government representatives, investors, and industry leaders in the climate tech ecosystem. Keynote speaker includes Eytan Lenko, the founder of Boundless. Grab a ticket here and use code “OVERNIGHT” for 20% off.

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♂️ 2009 Interview with Collis and Cyan Ta'eed, Co-founders of Envato

• I dug wayyyy back into the archives to find this one and I’m not going to lie, I’m pretty proud. In this 14-year-old interview with the now rich listers, this video captures two very fresh-faced founders offering advice to aspiring entrepreneurs to “start small” and prioritise long term sustainability and avoid outside funding if you can (1:20) 🌶️. Something tells me they might still stand by that advice…!

Will’s Pick 💁‍♂️ The Business of Bluey (Podcast discussion) based on this interview with Bluey Founder, Joe Brumm 

• At Blackbird Sunrise, the common feedback was that Joe Brumm's Bluey talk was the best session of the festival. If you missed the talk because you weren’t at Sunrise (or your flight was delayed by weather), then this is the next best thing.

• Bluey (the business) is now valued at over $3B and an epic story of growth since it’s launch in 2018.

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‘Til next time,

👋 Will & Gem