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. 🇦🇺 🚀 

Gemma is off for a few weeks, so I’ll write the newsletter for the next few weeks solo! This means I condensed a few sections to ensure I can manage. I apologise for the lack of emojis; they’re not my speciality. 😀 

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👀 Headlines 👀 

☁️ AirTrunk, a data centre business, has been sold to Blackstone and the Canada Pension Plan Investment Board in a $23 billion deal, marking one of the largest acquisitions in Australian history.

• AirTrunk was founded in 2015 by Robin Khuda and focuses on building and operating hyper-scale data centres. It owns 11 data centres, 5 of which are in Australia.

• Other sites operate in Japan, Singapore, Hong Kong and Malaysia.

• Khuda, originally from Bangladesh, will walk away with a cool $500M payday and equity worth a similar amount in stock. (AFR)

• Khuda sold 88% of the company to Macquarie's infrastructure arm in 2020 and offloaded 5% in this transaction. 

☝️ The Australian Startup Financial Confidence Report 2024 commissioned by Airwallex: Grab the report here! Here are the key takeaways 👇

• Currently, 92% of founders have concerns about their business's financial operations, while 44% of founders are frustrated by products offered by traditional banks with 

• The report also found that 33% of founders rely on family and friends for financial support, making it as significant a source as venture capital.

  • Only 11% of founders are bootstrapping their businesses, with women more likely to pursue this route.

• Going Global: 78% of founders plan to expand their operations globally within the next 12 months. However, 90% face significant barriers, primarily in navigating local tax regulations and establishing financial operations in new markets.

🚕 Uber pivots to Turo partnership two weeks after killing its carsharing product in Australia

• Uber has partnered with US-based carsharing giant Turo, allowing users to rent Turo vehicles via the Uber app starting in 2025. The multi-year deal will let Uber users book cars from Turo's peer-to-peer fleet, with fast-tracked onboarding for former Uber Carshare owners.

• Uber's decision to scrap its $105 million Car Next Door acquisition was blamed on rising car ownership costs and theft.

• Turo's bookings and earnings have surged in Australia. Bookings rose 134% year-on-year, and host earnings increased 189%.

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Equ lands fresh funding for calorie counting and recipe app

Founders: Amal Wakim

Sydney-based calorie tracking and recipe app Equalution has rebranded to Equ and launched its own protein powder line, Equfoods. The rebrand coincides with a funding round led by Artesian's Female Leaders Fund, though the amount raised remains undisclosed. This round also facilitated the exit of co-founder Jade Spooner.

Equ focuses on the demand for digital health solutions that align with enjoyable, balanced lifestyles. Despite substantial growth, with a 90% increase in subscribers over the past year. Equ capitalises on the struggle with diet and maintaining a healthy weight due to a lack of knowledge and time.

Equ's protein powders, available in three flavours, have been well received, with 60% of sales coming from existing app users. The newly revamped Equ app offers over 8,000 recipes, personalised nutrition plans, and a daily meal planning function, while partnerships with brands like Uncle Toby's and Arnott's enhance its offerings. 

Due Diligence: Business News Australia

Altai raises fresh capital to modernise casting software for the film industry

Founders: Josh Algie & Renee Currie

Sydney-based startup Altai is revolutionising the film industry's casting process with its innovative platform designed to streamline operations and empower artists. Founded by Renee Currie and Josh Algie, Altai addresses the outdated and fragmented tools currently used by casting directors and talent agents, which involve juggling up to 17 platforms. Traditional casting software is criticised as overpriced and inefficient, hindering creativity and innovation in the industry.

Altai flips the conventional model by prioritising the needs of artists, offering an affordable subscription at $10 per month. The platform provides a user-friendly interface with features like an integrated audition process, multiple media uploads, and real-time updates, enhancing actors' transparency and communication.

Altai's network-driven growth has gained significant traction in Australia and New Zealand. The company plans to expand into the rapidly growing Latin American market, starting with Mexico. The platform's focus on inclusivity and modernisation is poised to disrupt an industry struggling with exclusivity and outdated practices. With nearly two decades of combined experience in casting, directing, and talent management, the founding team is committed to elevating the industry. 

Investment Notes: Skalata

Modra lands $15M for carpet innovation that reduces waste by up to 80%

Founders: Tim Modra

Modra, a Victorian-based advanced manufacturing company, has secured a $15 million investment from the Australian Business Growth Fund (ABGF). Founded by CEO Tim Modra in 1993, Modra specialises in technology for the global carpet manufacturing industry, which is projected to reach $197 billion by 2030.

The company’s own machines, such as the Kibby and Mtuft prototyping machines and the CreelMT yarn winder, streamline the carpet production process, cutting waste by up to 80%.

The ABGF investment will fuel Modra's research and development and support workforce expansion to 50 employees. Modra remains committed to its regional base in Warragul, Victoria. This marks ABGF's latest investment from its $540 million fund, now totalling $180 million deployed.

Due Diligence: SmartCompany

Safe Ag Systems secures $2.5M commitment to make farming safer

Founders: Katy Landt and Caroline Graham

Safe Ag Systems, a South Australian-based ag-tech safety platform, has secured a $2.5 million investment commitment from AgFood. Founded by Caroline Graham and Katy Landt, a mother-daughter team, the company offers a cloud-based platform that helps agribusinesses manage safety and compliance. Its features include task management, safety inspections, and workforce optimisation. Currently, 4% of Australia's 240,000 farm workers use their app, which generated $2 million in revenue in 2024.

With the new funding, Safe Ag Systems aims to expand its reach to 10% of farm workers and increase farmers' productivity by optimising the use of equipment, chemicals, and water. Safe Ag Systems is on track to generate cash flow by 2025, positioning itself as a critical player in the tech space by improving both farm safety and operational efficiency.

Their products include features like policies and procedures templates, inventory management, emergency management, worker induction and onboarding, task management, safety inspections, and incident reporting. The system is designed to improve safety culture, track legal compliance, and streamline operations in grain farming, livestock, horticulture, and dairy industries.

Due Diligence: Tip-Off

🤑 New Funds, Who’s This? 🤑 

💰 Premier Capital Partners (PCP Growth) is launching a fund targeting mid-market technology companies. (AFR)

• Ryan Sohn, previously of Perennial Private to Public, is launching a new private equity firm in partnership with Jason Lenga, MD of SEEK Investments, and Paul Lewis, former CFO of Qube Holdings.

• The fund will target companies with $10 million+ in revenue that are profitable or nearing profitability, which puts it in competition with funds like EVP. 

• The fund size will be between $30 to $50 million, with a $75 million hard cap. Cheques will be written between $5 million to $20 million, holding minority stakes (5-20%) for up to five years. The fund seeks a 25%+ internal rate of return (IRR).

🎉 Wins 🎉 

Startup Daily Best in Tech Awards were held this week, and congratulations to all the winners. Here are a couple of standouts, but the full list is here. 👇️ 

Curious Thing AI – AI Gamechanger: Australia's first voice AI startup, Curious Thing AI, launched Lucy, the world’s first free AI phone agent, expanding to the US, UK, and Canada.

Goterra and Agili8 – Sharing Most Innovative Startup: Goterra manages food waste using robotic insect farms, processing over 20,000 tonnes and saving 30 million kg of CO2 emissions. Agili8 provides healthcare solutions using smart glasses and AI to serve remote communities.

Startmate – Startup Investor of the Year: Startmate has churned out the deals, and, in the last 5 years, averaged, 43% of women co-founded companies.

🧠 KaaS (Knowledge as a Service)

Will’s Pick 💁‍♂️ How to Do Great Work by Paul Graham

• The discourse around Paul's most recent essay, Founder Mode has been quite interesting. Do great companies need great founders or great managers? Warren Buffet once said investors should invest in a business that a ham sandwich could run. Enough of that.

• This led me to revisit one of my favourite essays by Paul on how to do great work. The article focuses on the ingredients needed to do great work in business, art or sport.

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‘Til next time,

👋 Will & Gem

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