💌 Aussie Startup & VC Summary | 8th February 2025

G’day and welcome to this week’s edition of Overnight Success - your weekly download on all the important things that have happened in the Aussie startup ecosystem 🚀 .

A very special welcome to the 22 new subscribers who joined us since last week - it’s great to have you here!

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👀 Headlines 👀 

📊 Cut Through Venture & Folklore Ventures release the 2024 State of Australian Startup Funding Report with $4B deployed into 414 companies. Here are the headline numbers of note:

• FinTech ($947M), ClimateTech ($609M) and BioTech ($347M) were the most funded sectors, while Betashares had the largest fundraising round with $300M.

• Female funding had a pathetic year, with only 2% of funding going to female-founded startups. This is down 1% from last year. On a more positive note, 42% of angel and pre-seed deals had women founders (up 27% from 2023).

• 55% of investors reported that a portfolio company had failed in 2024 with 93% of investors seeing a portfolio company making layoffs.

• Australia crowned one new unicorn, with Deputy gaining its horn 🦄.

• 49% of founders don’t feel supported by the wider entrepreneurial community.

• Techboard also released it’s 2024 Australian Startup Funding Review this week, reaching a similar overall funding number - $4.106B - but capturing deals from 477 deals. (Startup Daily)

💲 Employment Hero records its first profitable month in December 2024 since being founded in 2014 with ARR hitting $250M USD. (AFR)

• Despite these strong numbers, EH has no immediate plans for an IPO. 

• Employment Hero has recently been on an acquisition streak with the purchase of Canadian HR firm Humi for $112M and Employment Innovations, an HR and Payroll outsourcing company in which founder Ben Thompson also had an equity stake. 

• According to Airtree Ventures Partner Craig Blair Employment Hero’s annual recurring revenues placed it within the 20 largest software companies in Australia. (AFR)

📻 ☢️ Disrupt Radio, an Aussie radio network for entrepreneurs, faces a winding-up application in the Supreme Court of Victoria, filed by Sports Entertainment Network (SEN) due to unpaid debts. (Smart Company)

• Live programming ceased in mid-2024, podcast updates stopped around August 2024, and many staff remain unpaid, leading to discontent and lack of communication.

• The radio station launched in June 2023, with Bob Geldof as a breakfast host and early investor, both Libbi Gorr and Jules Lund hosted live shows.

• Disrupt Radio also tried to launch a campaign on Birchal but only raised $24,500 of their $1M target in July 2024.

🚀 Gilmour Space Technologies faces $20 million capital shortfall due to launch delays. (InnovationAus)

• Australian rocket company Gilmour Space Technologies is experiencing a $20 million capital shortfall as a result of delays in obtaining regulatory approvals for its Eris rocket launch.

• The company is awaiting a launch permit from the Civil Aviation Safety Authority (CASA) and is now targeting a prospective launch date in March 2025.

🕊️ Legal counsel at Dovetail claims the CEO Benjamin Humphrey repeatedly sexually assaulted her, but the CEO denies the allegations. (AFR)

• Dovetail is a consumer insights platform that was last valued at ~$960 million. It boasts a host of prominent Australian investors, including Blackbird, Grok Ventures, Felicis Ventures, and Accel, and counts notable tech executives like Didier Elzinga from Culture Amp, Stewart Butterfield from Slack, and Vlad Magdalin from Webflow among its supporters.

• Responding to the allegations, Humphrey has issued a statement strongly denying all claims. Investors say they only found out about the details of the claim this week, with Blackbird releasing a statement including that it “has strongly encouraged the company to offer support to the complainant and come to an appropriate resolution to the matter”. (Capital Brief, AFR)

• As this is a live court case, it’s important that the media (including Overnight Success) approaches reporting on this story in an appropriate and sensitive manner. Our Watch has published well considered advice for any individual or publication considering how to report responsibly on stories regarding claims of sexual harassment.

⚡️ Startup Retro ⚡️

Lorikeet lands $100M valuation with $14M pre-Series A in fresh funding for human-like support agents

Founders: Steve Hind and Jamie Hall

Lorikeet, a Sydney-based AI startup developing agents to streamline customer service operations for clients including Eucalyptus, Immutable, and US financial services provider Step, has hit a $100M valuation. Founded in 2023 by former Stripe and Google employees Steve Hind and Jamie Hall, Lorikeet offers automated solutions that outperform human customer support metrics.

The fresh $14 million Series A comes from Blackbird, SquarePeg, and Skip Capital.

Lorikeet’s software leverages cutting-edge AI models to resolve customer queries, navigate websites, and deliver quick, accurate responses. While competition from established giants like Anthropic, Google, Microsoft, and Salesforce intensifies, Lorikeet differentiates itself by focusing strictly on solving clearly defined problems for enterprise clients. According to founder and CEO Steve Hind, AI solutions must address specific pain points, rather than simply jumping on the generative AI bandwagon.

Plans are in place to raise additional capital in the United States, partly fuelled by strong interest from American venture capital backers. However, Lorikeet remains committed to hiring local engineering talent in Australia. 

Due Diligence: AFR, Business News Australia

Ovum raises $1.7M pre-Seed round to build AI health assistant for women

Founder: Dr Ariella Heffernan-Mark

Ovum, a women’s health startup, has secured $1.7 million in Seed funding to develop what it says will be the first holistic AI health assistant for women, set for launch in 2025. The round was led by Giant Leap alongside Antler, Wollemi Capital, Nakatomi Venture Studio, Alice Anderson Fund, Dr Nick Engerer, and Tim and Casey Cosh.

Ovum’s platform integrates medical records, biometric smartwatch data, and menstrual tracking information to provide personalised, AI-driven insights. Founded by medical doctor and reproductive biology specialist Dr Ariella Heffernan-Mark, the company aims to streamline diagnoses for complex conditions such as endometriosis, which takes years to identify.

Known as a ‘hub’ for medical information, Ovum collects the outcomes of blood tests, imaging reports, and referrals. Users can inquire through the Ovum interactive platform, allowing them to monitor not just their cycles but also the development of health conditions. According to the company, it empowers women with 'control over their health data and, consequently, their health journey.’ Additionally, the extensive data pool supports a ‘women-specific AI dataset,’ which has been largely ignored in the medical field for years. 

The platform is targeting the half of Australian women who suffer from chronic health issues. By establishing a dataset specific to women, Ovum addresses the global gender data gap in artificial intelligence, enabling more accurate recommendations and preventative measures.

Following a successful beta, Ovum is funnelling its new capital into clinical trials to begin in 2025 in partnership with the George Institute for Global Health.

Due Diligence: Forbes, Capital Brief

Nuj raises $2 million in Seed funding and $2M debt for regulatory compliance tool for superannuation funds 

Founder: Matthew McKenzie

Sydney-based RegTech, Nuj, has raised $4 million in Seed funding from Mimecast co-founder Peter Bauer, tapping both equity and a seven-year debt facility. The unique structure for a company at this stage emerged after finding venture capital less receptive, citing superannuation’s relatively small addressable market. Bauer’s backing provides flexibility, allowing Nuj to draw down debt as needed without immediate repayment obligations.

Nuj’s data platform targets superannuation trustees navigating rigorous Australian Prudential Regulation Authority (APRA) compliance demands. By aggregating and validating data from sources like custodians, insurers, and investment managers, Nuj helps trustees manage reporting requirements and minimise risks. APRA fines can exceed hundreds of thousands of dollars for delays, highlighting the sector’s urgency for reliable solutions.

Nuj is complementary to administration providers like Grow Inc, which focus on overhauling registry systems. Instead, Nuj integrates existing infrastructure to centralise data, enabling “small, well-designed nudges” rather than sweeping structural changes.

Having tripled its revenue last year, the startup plans to expand gradually, eyeing the potential for overseas growth in the UK, focusing on life insurance and banking. While superannuation has historically resisted startup solutions, McKenzie sees the funding as a vital step toward broader adoption of Nuj’s platform.

Due Diligence: Capital Brief

Ivo lands $25.5M Series A for AI-powered contract review

Founder: Jacob Duligall and Min-Kyu Jung

Ivo, an AI-powered contract review platform founded by a former corporate lawyer Min-Kyu Jung and Jacob Duligall, has raised a US$16 million (A$25.5 million) Series A. The round was led by Costanoa Ventures, with participation from Fika Ventures, Uncork Capital, Nat Friedman and Daniel Gross’s NFDG, Blackbird, GD1, and Phase One Ventures. This follows a previous US$4.8 million Seed round in April 2024.

Originally known as Latch, Ivo has rebranded and now serves over 150 corporate legal teams globally, including those at Canva, Fonterra, WeightWatchers, and Eventbrite. The company’s platform automates contract reviews, cutting redlining and revision time by up to 75% - a critical advantage for overworked legal teams.

Jung taught himself to code after growing frustrated with the tedious processes of large-scale contract negotiation. With Ivo, his mission is to leverage AI in a way that complements legal judgment rather than replacing it. Its newly launched Ivo Search Agent lets users comb through entire contract portfolios without manually tagging metadata, further streamlining workflow.

Due Diligence: Startup Daily

Springbok Analytics lands $5M Series A to measure changes in muscle attributes

Founders: Scott Magargee and Silvia Blemker

Springbok Analytics, a muscle health analytics platform based in Charlottesville, Virginia, has raised an oversubscribed $5 million Series A. The round was led by Transition Equity Partners (TEP), with participation from the NBA, Cartan Capital, and Australian-based Boston Global.

Developed from over 15 years of scientific research, Springbok’s FDA-cleared technology transforms MRI data into detailed 3D visualisations of muscle volume, composition, and fat infiltration. The company’s co-founders, CEO Scott Magargee and Chief Scientific Officer Silvia Blemker, say the capital will help expand the Springbok’s mission to strengthen clinical research, propel patient care and support peak sports performance.

This technology addresses musculoskeletal conditions, supports elite athletes, and caters to a growing longevity market. Quick, automated scans that can take between 10 to 35 minutes will provide advanced analyses of tendons, bone, scar tissue, and oedema.

Due Diligence: Press Release

AdvanCell closes $178.6M ($112M USD) Series C to develop its radionuclide therapies for cancer treatment

CEO: Andrew Adamovich

AdvanCell, a Sydney-based clinical-stage radiopharmaceutical startup, has closed a US$112 million Series C round co-led by SV Health Investors, Sanofi Ventures, Abingworth, and SymBiosis, with added backing from existing investor Morningside and new supporters Tenmile and Brandon Capital. The financing will accelerate AdvanCell’s push to expand manufacturing capacity, advance its portfolio of radionuclide therapies, and bring cutting-edge treatments to cancer patients worldwide.

Notably, Jamil M. Beg (SV Health Investors), Christopher Gagliardi (Sanofi Ventures), and Bali Muralidhar (Abingworth) are joining the board. AdvanCell’s core focus lies in harnessing alpha-emitting radionuclides to develop potentially safer, more precise cancer therapies.

Fresh funding will propel the firm’s TheraPb Phase I/II dose escalation trial of ADVC001, targeting metastatic prostate cancer. This first-in-class approach uses Pb-212-based radiopharmaceuticals designed to maximise therapeutic impact while minimising collateral damage to healthy tissue. As the highest dose cohort enrols, the study aims to confirm the safety and efficacy of AdvanCell’s unique platform.

Due Diligence: Biotech Dispatch

Lawpath lands $10M strategic investment from Westpac

Founders: Dominic Woolrych and Tom Willis

Lawpath, a platform that provides access to affordable legal services, has taken on $10 million in investment from the ‘big four’ bank, Westpac. Lawpath focuses on small and medium businesses (SMEs) as an affordable way to tackle legal and administrative challenges.

With half a million businesses already supported, Lawpath provides users access to legal services, accounting tools, and compliance solutions. 

The investment comes following a partnership with Westpac that started 2 years ago. Westpac customers will now be able to register an ABN, set up a website, or access small business legal services at reduced costs via Lawpath’s digital interface.

This investment dovetails with Westpac’s focus on small business offerings, which also includes EFTPOS Air, an app enabling SMEs to accept payments anywhere using a compatible smartphone.

Due Diligence: Westpac Media Release, Lawpath Partnerships lead announcement post

🎉 Wins 🎉 

 🏗️ Build Club launches into its next phase with a six-week residency program for AI enthusiasts and engineers, and a bounty program.

• The white-labelled e-learning platform is tailored for businesses looking to train their teams on AI workflows.

• The bounty marketplace lets companies list AI projects for “builders” to tackle in exchange for financial rewards.

🤑 AirTrunk founder donates $100 million to boost women's participation in STEM (InnovationAus)

• Robin Khuda, founder and CEO of data centre company AirTrunk, has pledged $100 million to the University of Sydney to establish a 20-year program aimed at increasing female participation in science, technology, engineering, and mathematics (STEM) fields.

• The initiative will support over 300 young women through scholarships and aims to engage 40,000 high school students via tutoring and mentorship, with a focus on students from western Sydney.

🪁 Kite Magnetics set to establish advanced manufacturing facility in Melbourne's southeast (Invest Victoria)

• The Victorian startup that develops new materials and technologies for electric motors is set to open a state-of-the-art manufacturing facility in Melbourne's southeast, aiming to scale up production of its Aeroperm® technology, which is used to create lighter, smaller, and ultra-efficient electric motors.

• The project will be supported by the Victorian government, though the investment amount has not been disclosed.

🤔 New Fund, Who’s This 🤔 

💣️ Brisbane-based Beaten Zone Venture Partners secures over $10M for its first close, targeting $60M within 18 months. (Startup Daily)

• Steve Baxter fund will invest in sovereign early-stage companies with tangible military applications.

• Fund 1 will primarily target Australian startups that have struggled to raise capital due to their exposure to defence, which often stops VCs from investing in them due to LP restrictions handed down to them by super funds.

💰️ Kashcade looks to raise a $50M warehouse facility to fund companies eligible under the research and development (R&D) tax incentive (AFR)

• The debt facility would allow the company to offer loans between $10,000 and $2 million to ~200 companies.

• Ex-CBA strategist Alex Simmons and former Apple engineer Patrick Nappa founded the startup-focused lender.

📆 Notice Board 📆 

🎪 We’re heading to Adelaide in 3 weeks for _SOUTHSTART - are you?

• To get 10% off any _SOUTHSTART ticket, use this link!*

• *The only condition is that you come and say hi to us when you’re there! 😉 

The startup events calendar is just beginning to ramp up again for 2025…!

The best place to find upcoming events to attend, and promote any events you’re hosting in the ANZ Startup Events Calendar.

Would you like to promote an event or an opportunity? Enquire about a Notice Board promotion here.

🧠 KaaS (Knowledge as a Service)

Gemma’s Pick 💁‍♀️ Natura Umana Launch Video

• Watching this video just continued my increasing fascination with developments in Voice AI. Swiss company Natura Umana says they’re building the “Apple of AI” - combining hardware (headphones) and software (‘Nature OS’) to offer you 24/7 access to talk to “AI People” who can do various tasks for you - from booking a hotel, to acting as a therapist - aiming to reduce the time humans spend in front of screens.

• Last week I met the impressive founders of Aussie-based startup, duohub, who are building a critical tech infrastructure layer that can support various implementations of Voice AI - focusing on low latency & high-precision memory for more natural, context-rich conversations. And they’re not the only ones in the race to support the race to improve this tech, with YC backing a couple of companies in this space recently too (mem0 & Circlemind). The TL;DR - watch this space 👀 .

Will’s Pick 💁‍♂️ Built Different: The Future of Venture Captial and Philanthropy: A Conversation with Daniel Petre by Jess Walker

• I’ve been enjoying these straight-to-the-point interviews Jess is having with some of the big names in Aussie startups. This interview highlights some of the changes we’ll expect to see soon. Namely, the predicted rise of dedicated growth equity funds and the demise of smaller funds as HNW’s leave the startup space. Hearing what Daniel does and thinks about philanthropy is also fascinating.

• My second recommendation is this music youtube channel. Coulou produces some very nice background music using guitar, piano and trumpet. Very smooth and very calming. Great to listen to during deep work. If you’ve got a recommendation for work music, hit me up!

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‘Til next time,

👋 Will & Gem

🔨 Tool Box 🔧 

We’re often asked for recommendations for tools, agencies, and evening up-skilling opportunities. We’ve contacted a few of our favourite tools and people and secured some discounts for you! Our community.