💌 Aussie Startup & VC Summary | 1st 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 23 new subscribers who joined us since last week - it’s great to have you here!

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👀 Headlines 👀 

🧗 Atlassian has removed the traditional 12-month “cliff” for new employees’ share vesting and hit its highest share price in 3 years with earnings growth smashing expectations (AFR)

• The removal of the “cliff” allows staff to cash out their initial shares after just three months. This puts Atlassian’s policy in line with larger US technology firms (such as Meta and Google) but is unusual for Australian tech companies, where a standard 12-month vesting period is more common.

• This move will make Atlassian more attractive for prospective talent but blurs the line between “long-term equity” and short-term cash-like payments, as the shares granted are essentially bonuses and can contribute to Atlassian’s ongoing lack of GAAP profitability.

• Atlassian also released their earnings on Friday, the 31st (with Mike Cannon-Brookes, again, recording a Loom), and the shares climbed 19.5% after hours. (AFR)

👼 LaunchVic is offering more grants of up to $300,000 each for venture capital (VC) funds and angel investor groups to set up shop in Victoria (Startup Daily)

• The grants aim to attract more early-stage funding to the state by bringing in new or interstate-based VC funds and angel networks. LaunchVic has funded 10 angel networks in the state already with a similar program that has collectively invested $29.3 million into Victorian startups.

• Funds or groups must be ‘brand new’ or ‘new to Victoria’, with existing presence elsewhere still permitted.

• VC funds must target at least $10 million in capital raised, whereas angel groups must demonstrate at least $2 million in private capital from their network. 

⚡️ Startup Retro ⚡️

Qsic sounds off with $40M Series B for AI-powered audio advertising network inside retail stores

Founder: Matt Elsley and Nick Larkins

Qsic, a Melbourne-based in-store audio platform, has raised $40 million in a Series B round led by Hedosophia, taking its total funding to $50.5 million. The company’s AI-powered platform personalises retail audio experiences for major brands such as 7-Eleven, Coles Express, and McDonald’s, reaching over 100 million shoppers monthly. 

It dynamically delivers audio ads informed by shopper behaviour, weather conditions, and local inventory to enhance customer engagement and drive sales. According to Qsic, retailers who use their technology have seen an average sales lift of up to 14%. 

The fresh capital will enable further product development, expansion into new retail locations, and a ramp-up of Qsic’s sales team. The startup’s proprietary AI, Lucy, automates localised audio ads by generating on-demand voiceovers that factor in regional pricing and availability. It also automatically adjusts volume levels in response to ambient noise and timestamps ads for precise tracking.

With a strong North American presence, Qsic recently partnered with 7-Eleven to launch “Gulp Radio” across 5,000 US stores by late 2024, with plans to expand to 12,000 by 2025. Upon completion, it will become one of North America’s largest in-store audio networks, reaching 13 million daily shoppers. Investors see strong global potential.

Due Diligence: SmartCompany, Qsic announcement 

Harrison.ai lands $32M from the National Reconstruction Fund (NRF) in ~$100M Series C

Founder: Dimitry and Aengus Tran

Australian AI healthcare startup Harrison.ai has secured a $32 million investment from the National Reconstruction Fund (NRF), an initiative of the Albanese government aimed at bolstering advanced technologies in Australia.

Founded by brothers Dimitry and Aengus Tran - who appeared on the AFR Young Rich List - Harrison.ai has developed AI that can interpret medical scans, identify illnesses such as cancer, and communicate its reasoning to clinicians. Harrison.ai can detect up to 124 findings on chest X-rays and up to 130 findings on non-contrast head CTs. Currently, it is utilised in over 1,000 healthcare facilities worldwide, with Harrison.ai’s technology processing more than 6 million patient scans each year.

According to Industry Minister Ed Husic, the funding is a strategic decision to ensure Harrison.ai remains in Australia instead of relocating overseas to seek capital. This investment is part of a broader Series C raise reportedly surpassing A$100 million, with existing investors including Blackbird Ventures, Li Ka-shing’s Horizons Ventures, Ramsay Health Care, and Skip Capital.

This funding follows some negative coverage Harrison.ai received last year. According to a Crikey investigation, I-MED Radiology Network provided medical data to Harrison.ai to train artificial intelligence without patients’ knowledge. 

Due Diligence: AFR, Startup Daily, NFR Announcement

MyGigsters raises $1.1M Seed round to help gig workers build financial security

Founder: Benji Elengovan

MyGigsters, a fintech offering real-time income and expense tracking for gig workers, has closed a $1.1 million Seed round to scale its embedded finance solutions. Founded by former Commbank Young Hero Awards Entrepreneur of the Year, Benji Elengovan, MyGigsters aims to deliver ‘employee-like’ benefits - instant payments, early pay access, automated tax management, and more - to gig workers and independent contractors.

This latest funding, secured via a SAFE note, includes contributions from existing investors such as Antler, LaunchVic, Startmate, and a network of angels. Elengovan says the capital will fuel the global rollout of MyGigsters’ embedded financial services, which currently has 15 international Memorandums of Understanding, which will hopefully convert to sales. The startup intends to integrate with gig marketplaces for sectors including delivery, healthcare, and creative services.

MyGigsters counts Locumate among its partners. The healthcare SaaS (a marketplace of gig “locums” who fill vacancies in hospitals and clinics) says the fintech’s solutions simplify invoicing, payments, and benefits management, freeing professionals to focus on patient care.

Despite regulatory and capital challenges, Elengovan remains focused on establishing a comprehensive platform tailored to gig economy needs. MyGigsters hopes its “obsession with solving financial security” will ultimately redefine how independent contractors access vital financial services.

Due Diligence: Startup Daily, Founder LinkedIn Post

Diag-Nose secures $3.2M Seed round to improve drug treatments by monitoring respiratory diseases

Founders: Eldin Rosto and Dr. David Yen

Melbourne-based Diag-Nose.io Medical (DNM) has raised $2 million in an oversubscribed Seed round, with $800,000 contributed by Breakthrough Victoria to enhance its pioneering respiratory healthcare platform. Using AI and proprietary protein chemistry, DNM’s RhinoMAP solution analyses data from a patented nasal liquid biopsy device to map biological subtypes of chronic respiratory disorders such as asthma and COPD.

DNM aims to reduce healthcare costs, improve patient outcomes, and streamline drug development by transforming these insights into faster, more accurate treatment decisions. Born from Stanford’s ENT Innovation Program, the startup now operates from Notting Hill, Melbourne, targeting the over 450 million people globally living with chronic respiratory diseases. The goal is to build a future where patients can be “completely free of symptoms,” thanks to the synergy of next-generation biologics and precise diagnostics. 

This fresh funding will be used to launch extensive clinical trials in the United States in 2025 to further refine and validate its RhinoMAP technology for global application. The company is currently looking to partner with academic and industry leaders.

Due Diligence: Capital Brief

Kwetta charges with $16.2M Series A to build ultra-fast charging solutions for heavy haul fleets

Founders: Mike Lazelle, Dustin Murdock and Robert Turner

Kwetta (formally Red Phase), a New Zealand-based EV charging and power grids startup, is gearing up for major expansion after securing a $16.2 million Series A led by Blackbird Ventures. The round, which also included Virescent Ventures Fund II and Icehouse Ventures, will fund Kwetta’s push to deliver ultra-fast charging solutions for heavy haul fleets in Australia and Europe. 

Founded in 2021 by engineers Robert Turner, Dustin Murdock, and Mike Lazelle, Kwetta has already deployed its Prime Grid Gateway product across 39 sites, including a deal with Ampol subsidiary Z Energy. This technology routes more power to chargers without costly grid upgrades, aiming to make electrification cheaper, simpler, and faster for trucks and buses.

With Blackbird principal James Palmer joining Kwetta’s board, the startup plans to accelerate R&D and strengthen existing customer relationships. Lazelle believes heavy transport is poised for an electric shift within two years, provided charging infrastructure proves both economical and powerful. 

Backed by a 35-person team at its Napier headquarters and with revenues hitting $US10 million, Kwetta wants to capitalise on the demand for greener commercial fleets. 

Due Diligence: AFR

🎉 Wins 🎉 

🚜 Presien, an AI to prevent accidents in high-risk workplaces, has been selected to participate in the 2025 John Deere Collaborator Program (LinkedIn Announcement)

• Presien’s platform monitors heavy machinery - such as forklifts and diggers - by combining computer vision with data analytics. It detects potential hazards in real-time, providing alerts that reduce collisions and improve overall safety. 

🤔 Vibe Check 🤔 

Cut Through Venture and Folklore Ventures will release the State of Australian Startup Funding report next week. How much funding do you think our ecosystem landed last year? Some stats to help guide your guess!

• 2022: $7,299,950,000

• 2023: $3,557,379,000

• 2024: ???

📆 Notice Board 📆 

📊 Join Cut Through Venture and Folklore Ventures at the launch of this year’s State of Australian Startup Funding Report

• To celebrate the report launch, the team will be running events in Sydney, Brisbane, Melbourne and Adelaide for founders and the broader community to discuss report insights and what this means for the year ahead.

• RSVP to the Sydney and Melbourne events via the links below:

  • 4th February in Sydney

  • 6th February in Melbourne

🎪 We’re heading to Adelaide in 4 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 💁‍♀️ Dr Karl's How Things Work - Cricket Balls, ABC

• It’s basically un-Australian (in my opinion) not to love the scientist and ABC legend that is Dr Karl. His latest show, “How Things Work” caught my eye this week when I saw a familiar face - Tina Funder, founder of Aussie biobased textiles startup and Startmate Accelerator Alumni, Alt.Leather - featured in this episode about how cricket balls are made.

• Great to see a home-grown startup being highlighted in the mainstream media, let alone part of a conversation about how to make an Australian icon more sustainable in the future (the Kookaburra cricket ball, not Dr. Karl 😉).

Will’s Pick 💁‍♂️ How the Semiconductor Industry Actually Works Podcast Episode by Dwarkesh Patel with Dylan Patel from Semi-Analysis

• Headlines following the release of DeepSeek have been impossible to miss. Plenty of articles have focused on the efficiency of its AI model. For example, DeepSeek claims to have trained V3 (its model) using around 2,000 specialised computer chips, specifically H800 GPUs made by NVIDIA. This is, again, much fewer than other companies, which may have used up to 16,000 of the more powerful H100 chips.

• In the spirit of learning more about the semiconductor industry, I shared this podcast (from 3 months ago), which explains how the semiconductor industry works and why trade policy restricted China’s ability to access chips.

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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.