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Headlines

• Federal Government launches its National Quantum Strategy to boost the quantum computing sector

  • Ed Husic (Minister for Industry & Science) this week unveiled the strategy that “will be the North Star to help guide collaboration between research pioneers, industry partners, start-ups and the government into the future.” (Media Release)

  • The announcement comes ahead of next week’s Federal budget, providing an example of how the $1B carved out of the $15B National Reconstruction Fund for “critical technology” will be used to boost Australia’s economic competitiveness. (AFR)

• Airwallex gets in front of political decision-makers

  • Earlier this week, the AFR reported that Airwallex’s continued growth has been drawing increased attention from the industry regulator, APRA, but hinted that the company’s reg affairs strategy was in full flight - essentially trying to get a better deal for the fintech and other companies with new models which “clash” with current, outdated laws.

  • On Wednesday, the company made a visit to the House of Representatives inquiry into promoting economic dynamism, competition and business formation. On Thursday, the company launched its “Digital Economy Index”, providing them a platform to comment on shifts in consumer spending at a macro-level (LinkedIn Post).

  • Publicly spearheading the project is Director of Strategy Amelia Hamer, previously an adviser to the Minister for Superannuation, Financial Services & Digital Economy. Well played Airwallex, well played…

• Flora & Fauna re-acquired by founder (Smart Company & Business News Australia)

  • ASX-listed online retail group BWX went into liquidation last month, leading to much speculation as to what would happen to its several high-profile portfolio companies, previously acquired from their founders.

  • This week we learned that Flora & Fauna will be acquired by a newly formed group part-owned by the original founder Julie Mathers. The group will also acquire Nourished Life, whose original founder has announced plans to launch a direct competitor. BWX’s stakes in Sukin, as well as Zoe Foster-Blake’s cult brand Go-To, are still open to market offers.

• Canva ‘paper millionaires’ kept waiting on their pay day (AFR)

  • In the wake of the ‘tech-wreck’ many of Australia’s biggest private tech companies have put a hold on IPO plans, limiting the ability for employees with share options to cash out.

  • Some companies, like Canva, control when their employees can sell shares on the secondary market and are looking to delay such sales to prevent potentially formalising their share price at a lower valuation during the current market slump. Other companies, such as Go1, allow employees to deal directly with investors, providing more flexibility in when they can sell.

• Just in case you didn’t think ASIC was serious about cracking down on greenwashing…

  • Future Super was recently fined $13,320 by ASIC for a Facebook post that allegedly overstated the company’s positive environmental impact.

  • While the fine might seem small, the context that Future Super actually self-reported the post to ASIC which was only seen by less than 30 people before being taken down shows how seriously ASIC is taking greenwashing! (Business News Australia)

• BoozeBud calls last drinks (Smart Company)

  • ICYMI (i.e. have been living under a rock), food delivery has had a rough trot recently, and it appears beverage delivery also hasn’t escaped the turmoil with alcohol delivery platform BoozeBud announcing it’s going into administration this week.

  • It was a wild ride for the company, with the founding team exiting and buying back the business.

  • But the game of musical chairs is over, with the original founders left holding the (now empty) bag.

• Zoomo lays off 8 per cent of staff (Business News Australia)

  • The company rents a number of its e-bikes to several food delivery companies - need we say more? 🫣 

1. Start-up Retro & Crowdfunding: Australia's start-up raises with a smidge of context.

2. Aussie Raisins: Start-ups looking for fresh funds.

3. Wins: Highlighting wins, big and small.

4. Notice Board: Signposting key events and opportunities.

5. Accredited Tweeters: Snippets from mostly Aussie start-up Twitter.

6. (KaaS) Knowledge as a Service: Articles to make you smarter. Or to share with co-workers to make them think you’re smart.

⚡️Start-up Retro⚡️

PropTech

MadeComfy lands $10M of debt and equity to fund growth after surviving COVID-19

Sydney-based Airbnb management prop-tech, MadeComfy, has raised a $10M round of equity and debt to expand its short-term rental management service across Australia. MadeComfy was founded in 2015 and had previously raised $7.5M across five rounds. This round was led by Commencer Capital and supported by MC Fiduciary, BridgeLane Capital, and several private investors. MadeComfy currently operates across Australia and is an “official partner’’ of Airbnb. MadeComfy has a swath of features for Airbnb hosts, including general management, guest management, maintenance and cleaning services. The platform is sold as a value-unlock for Airbnb hosts who can better activate occupancy or lower their operating overheads. This funding round will enable more developers to build the B2B product targeting corporate and mid-term travellers. Naturally, MadeComfy struggled during the height of COVID-19 lockdowns, but a strong rebound over the last year has generated an annualised revenue of $20M.

Due Diligence: Shorttermrentalz.com

FinTech / Investor Relations

InvestorHub (formerly Fresh Equities) raises $4M to help small-caps engage with shareholders

Sydney-based InvestorHub, rebranded from Fresh Equities, has raised $4M. The funding round comes from EVP and will be used to continue to build out the functionality of its listed small-cap engagement software. InvestorHub found its feet by providing access for institutions, family offices and HNWs to invest in capital raises of Australian-listed small-cap companies. Through this, they’ve discovered that small-cap companies may not have the resources to understand and interact with their investors. InvestorHub has now grown its listed user base to 40 companies, with valuations as low as $2M. On the investor side, over 45,000 investors interact with the platform monthly. The major unlock for small-caps is better communication with their shareholders outside the top 20%. For many small caps, most of their shareholders will be retail investors who can make up to 80% of the daily trading volume. Better communication with these shareholders can mean a reduced chance of catastrophic sell-offs. Companies currently using the platform include Reece Pharmaceuticals, Race Oncology, Altech Batteries and 4DS.

Due Diligence: Business News Australia

HR / Employee Engagement

Mercu (formerly Sample) raises $2.4M Seed round to help engage desk-less workers

Sydney-based Sample has rebranded to Mercu after changing its focus to become an employee engagement platform for desk-less workers. The round included previous investors Sequoia Capital India, with participation from Queensland-based TEN13, 500 Global, Flying Fox Ventures, Archangel Ventures and XA Network. Sample originally kicked off as a LinkedIn for essential workers but pivoted to better serve hospitality, retail, warehousing and trades employees. Mercu identified that most engagement platforms are designed for employees who are often on computers at a desk or working remotely and saw a huge opportunity to service desk-less workers. The platform includes functionality with services that these staff use, like WhatsApp, SMS/iMessage and LINE. Common functions that are in most HR platforms, like performance reviews, automated check-ins and 360 reviews, are also available. Some big players like Guzman y Gomez and Sam Prince Hospitality now use the Mercu platform.

Due Diligence: TechCrunch

LawTech / End-of-life

Safewill lands $5.5M in its second Series A to digitise end-of-life estate planning

End-of-life planning platform Safewill has raised a $5.5M Series A round. The round was led by Carthona Capital and included existing investors Reinventure and Flying Fox Ventures. Safewill cuts down on legal costs for individuals planning their estate and simplifies the process for the next of kin during what is a challenging life event. Currently, Safewill can plan the estate with the Will & Powers of Attorney documents, store information securely until the necessary moment and help plan a funeral with pre-payment. Since its inception in 2019, Safewill has partnered with over 200 Australian charities and processed $500M to not-for-profit organisations through its wills. This raise is the second Series A announced, with a previous raise of $3M in October 2021 led by Westpac. Creating a will document is a once-off payment while storing that information is a paid subscription.

Due Diligence: Startup Daily & Business News Australia

BioTech

ASX listed Emyria raises $2.5M to develop MDMA-assisted therapy

Biotech firm Emyria has raised $2.5M on the public markets to develop its MDMA-assisted therapy programme. Emyria will partner with the trauma specialist centre The Pax Centre, which focuses on the psychological impacts of traumatic life experiences. Emyria will also use the funds to advance clinical trials and support US Food and Drug Administration registration preparations for its over-the-counter CBD treatment known as EMD-RX9 for anxiety and stress. The biotech will establish a “licensable care model” for MDMA- and psilocybin-assisted therapy that can scale through partner sites. The funds will also help Emyria scope additional clinical partnership opportunities. Since announcing it had secured an MDMA supplier, Emyria has made further inroads in the space, including building a library of MDMA analogues. This library has over 150 analogues with potential use-cases across PTSD and Parkinson’s disease. The analogues are essentially IP the business can license with other bio-techs for manufacture or sale.

Due Diligence: Proactive Investors

If you're a founder or investor who has just closed a round, please reach out to us at [email protected]

Crowdfunding

• Cannaponics 🌿 Scores the biggest raise on Birchal this year & the biggest ever WA crowdfunding campaign (Business News Australia)

  • The medical cannabis company raised $3M in just 24 hours!

  • At the time of publishing, Cannaponics has raised ~$3.6M from almost 1900 investors, with 13 days left in the campaign.

Aussie Raisins

• Venture Crowd 💰 The equity crowdfunding platform for start-up & property investments is raising its own round to support global expansion plans.

  • In an issue of preferred equity, they’ve already raised 98% of their $8M target, but are also raising capital through the issue of convertible notes to “fast-track the growth of its core Australian business, expand internationally and deliver its next-generation Web3-based technology platform”. The latter is 76% towards its $8.5M target.

  • Separately, Venture Crowd is raising a health-tech fund, offering wholesale investors the opportunity to score a slice of its investments into the high-demand & high-impact sector.

Wins

• EQL 👟 The software company that supports the seamless sale of hype-brands to their biggest fans, was recently trusted with launching the sale of the ultimate luxury sneaker - a collab between Nike and Tiffany Co. Needless to say, they sold out almost instantly so it was a job well-done by the Melbourne-based start-up founded in 2019! (LinkedIn Post)

• Who Gives A Crap 🚽 The good-looking, do-good toilet paper company has recently scored itself shelf space in Woolworths (AU) and Waitrose (UK), adding to existing deals with Aldi (AU), Whole Foods Market (UK) and a bunch of indie grocers. (LinkedIn Post)

• myprosperity 💻 Founded in 2011, the cloud-based platform that facilitates communication between accountants and advisers with their clients, enabling digital document signing, budgeting and goal setting, has been acquired by HUB24 for $40M. HUB24 is a platform that offers a bundle of financial services solutions that manage customer portfolios, investments, superannuation and insurance. (Business News Australia)

• Bricks + Agent 🏚 The largest property maintenance platform in Australia and New Zealand has strengthened its market position by acquiring Inspection Manager for $8M. The company says the deal means 50% of investment properties managed by property managers are serviced using one of its platforms. (Business News Australia)

• Immertia 📦 Has launched an AI-powered concept called Hologram Concierge, which turns ordinary product packaging into an interactive experience for consumers. The system links an intelligent holographic assistant to packaging, offering a visually immersive way for customers to interact with products. When a consumer scans the product packaging with their smartphone, the assistant provides extra information about the brand and product. (Company Website)

Notice Board

(+ an emoji state-by-state weather report)

VIC 🥶️

• State of Australian Startup Funding: Angel Investing - 11th May 📍 Parkville

  • Hosted by Cut Through Angels & Wade Institute. Register to attend here.

  • Best suited to: Current & aspiring angel investors

QLD ☀️

• Startup & Community Meetup - 12th May📍 Brisbane

  • Hosted by the hottest new start-up community in QLD, Ennovate, our friends at The Community Collective and yours truly. Register to attend here.

  • Best suited to: Anyone passionate about tech, start-ups & community building.

• What the Health (WTH) Health Tech & Innovation Hangs - 17th May 📍Brisbane

  • WTH is hosting its first event in the Sunshine State! Register to attend here.

  • Best suited to: Anyone mad about med- & health-tech

NSW 🌥

• F2F - 18th May📍 Sydney

  • A casual catch up for female founders to meet face to face with funders, supported by AWS & Airtree. Register to attend here.

  • Best suited to: Female founders & investors

• Cyrise Accelerator Demo Day - 8th May 📍 Ultimo

  • Possibly the accelerator’s final demo day after it announced it would be closing last week. Register here to attend.

  • Best suited to: Investors & the cyber-curious

WA 🌦

• CyberWest - 10th & 11th May 📍 Perth

  • A two-day conference on all-things cyber-security. IYKYK - cyber is where it’s at right now (cc: Medibank, Optus, Latitude). Get discounted tickets via our peers at Startup News here.

  • Best suited to: Current & aspiring cyber-nerds

Have something to put on the Notice Board? We're always looking for upcoming events & opportunities across the Aussie start-up ecosystem. Reach out to [email protected] to add yours!

Accredited Tweeters

KaaS (Knowledge as a Service)

• Gemma’s Pick 💁‍♀️ The Art of Crafting Your Startup's Story, by Abhishek Maran (Rampersand)

  • I’m a bit obsessed with perfecting my skills in storytelling. Start-up pitches are a unique storytelling challenge, because being close to the idea (or the ‘expert’) doesn’t always help you tell the best story - particularly a story investors will buy into. Maran breaks down the key steps to overcoming your blindspots and crafting a story that addresses investor questions, convincingly, before they can even ask them.

• Will’s Pick 💁‍♂️ The Productisation of Venture Capital by Kyle Harrison

  • Kyle explores how the Venture industry has changed and matured. In particular, he contrasts how VCs differ themselves as Product vs Services firms.

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‘Til next time,

👋 Will & Gem