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. 🇦🇺 🚀 

A special welcome to our new subscribers - it’s great to have you here! 👋 

👀 Headlines 👀 

👬 The Tech Council of Australia board has been labelled a “billionaires lunch club” by members following the slow resignation of Richard White, founder of WiseTech (AFR)

• Robyn Denholm, Blackbird Partner and Tesla Chair, chairs the Tech Council board, which includes Scott Farquhar (Atlassian), Anthony Eisen (Afterpay), Cliff Obrecht (Canva), Didier Elzinga (Culture Amp), Victor Dominello (UNSW-UTS Trustworthy Digital Society Hub), Kate Jones (Capital B Advisor) and Eglantine Etiemble (CTO at PEXA).

  • By our reckoning, four out of nine are definitely billionaires, with Robyn Denholm being the potential fifth. This begs the question: How many billionaires do you need around the table for it to be a billionaires' lunch club? 🤔 

• Members criticised Chairwoman Robyn Denholm and CEO Damian Kassabgi for slow action, allowing White to resign rather than removing him directly. The Tech Council’s response included explaining the rigorous governance process the Board was following, stating that appropriate due diligence was undertaken at all stages.

⛓️ Immutable, the blockchain gaming startup valued at ~$3.5 billion, has received a Wells Notice from the U.S. SEC, indicating potential legal action over alleged securities law violations related to its cryptocurrency tokens.

• A Wells Notice is a formal notification from the U.S. Securities and Exchange Commission (SEC) stating that it intends to bring enforcement action against a company or individual for alleged violations of securities laws.

• In this case, the SEC alleges that Immutable's issuance and trading of its IMX token may have breached securities regulations, similar to actions taken against other crypto firms like Coinbase, OpenSea, and Ripple.

  • Immutable's IMX token currently trades at about $US1.40. The company raised approximately $400 million during multiple funding rounds in early 2022.

• Immutable criticised the notification, calling it "improperly researched and factually incorrect". The startup even suggested the timing is politically motivated ahead of the U.S. election. 

🥼 Main Sequence opens the door for more healthcare investments with strategic hires. (Capital Brief)

• The team has grown to include principal Elaine Stead (PhD in Biochemistry), associate Alex Romero, and associate Emerald Scofield.

• The firm aims to broaden investments across therapeutics, diagnostics, devices, and digital health, particularly emphasising women's health and femtech.

• Healthcare is one of Main Sequence's six core challenge areas but has historically seen less investment activity compared to sectors like space and industrial productivity.

🔋 eLumina launches Australia's first $20M community battery and EV charger factory on the Gold Coast, aiming to boost EV charging infrastructure in regional and rural areas. (Business News Australia)

• The Yatala-based pilot plant is a precursor to a larger facility, expected to support 300 jobs and produce 300 community batteries and EV chargers annually with production set to begin next year.

• The facility includes a battery dry room for testing battery cells in partnership with universities, enhancing research and development in energy storage.

• Partnerships with TAFE Queensland and Addelec focus on workforce training and regional connectivity, addressing power challenges across Australia's vast landscape.

🎨 Canva's valuation jumps to nearly $50 billion after latest share sale, marking a $US6 billion increase and signalling international solid investor interest in Aussie tech. (AFR)

• The rise in valuation is not due to new capital being injected into the business but to secondary share transactions.

• Canva's annualised revenue exceeds $US2.5 billion, up nearly 50% over the past year, with a 40% increase in paying subscribers.

🤑 Afterpay co-founder Anthony Eisen steps down from executive role at Block, the company that acquired Afterpay for $39 billion in 2021. (AFR)

• Eisen plans to focus on "outside pursuits", including philanthropy through the Eisen Family Private Fund and remaining a director at Stone & Chalk and Foundation Life. Eisen also sits on the board of the Tech Council of Australia. 

😅 Breakthrough Victoria posts a loss as grant money to set up the fund runs out. (Innovation Aus)

• The $2B VC fund, funded by Victorian taxpayers, has posted a $3M operating loss as grant income used to establish the fund has ended.

• The annual report is an interesting read, and we’ve attached the full report at the bottom of the email. Please shoot us a reply with your thoughts!

⚡️ Startup Retro ⚡️

Neara secures $45M Series C for predictive modelling platform for critical infrastructure

Founder & CEO: Daniel Danilatos

Neara, a Sydney-based ClimateTech specialising in AI-powered predictive modelling software for critical infrastructure, has secured AUD $45 million ($29 million USD) in a Series C funding round. The round was led by EQT, with participation from Partners Group and existing investor Square Peg Capital, alongside Skip Capital and Prosus Ventures.

Founded in 2019, Neara offers 3D digital modelling technology that enables utilities to optimise their networks by simulating safety and reliability risks and pinpointing effective remediation actions. The platform accelerates critical analysis from months or years to mere hours or days, facilitating faster decision-making on routine operations, emergency responses, and significant grid investments.

The company's technology has modelled over 12 million infrastructure assets spanning 2.4 million kilometres across four continents. Its clients include major utilities such as Essential Energy and Ausgrid in Australia; CenterPoint Energy and Southern California Edison in the U.S.; and ESB Networks and Scottish Power in Europe.

The new funding will accelerate Neara's global expansion across the U.S., U.K., Europe, and Asia Pacific and support plans to extend its modelling capabilities to sectors like telecommunications and public transportation.

Due Diligence: Press Release, AFR, PV Magazine, Energy Source & Distribution 

Earthodic Secures $6M to Expand Recyclable, Water-Resistant Packaging Solutions

Founders: Anthony Musumeci, Albert Tietz, Fiona Donaghey & Melissa Mail

Queensland-based biotech Earthodic has raised $6 million in an oversubscribed seed round to scale up production of its biodegradable, water-resistant coating, Biobarc, and expand into the U.S. market. The company aims to replace traditional non-recyclable coatings—like those on disposable coffee cups and wax-coated meat trays—that often end up in landfills despite being primarily made of paper.

The funding was led by FTW Ventures with participation from Circulate Capital, Queensland Investment Corporation, UniQuest Fund, Significant Capital Ventures, Branch Venture Group, RedStick Ventures, and several American angel investors. Existing backers Tenacious Ventures, Investible, and Closed Loop Partners, who contributed to Earthodic's $1.85 million pre-seed round in 2023, also joined the latest raise.

The fresh capital will be used to hire product and sales staff in both Australia and the U.S., and to establish a base at Western Michigan University, a hub for packaging innovation. Recent supply chain expansions have boosted Earthodic's production capacity to between 20 and 40 tonnes of Biobarc daily, up from previous tonne-level batches.

Earthodic is currently focusing on industrial applications, particularly replacing unrecyclable wax-coated boxes used for transporting fresh produce and meat. The company is also working towards consumer food and beverage certifications to extend Biobarc's use to products like disposable coffee cups.

As regulatory pressures increase and consumers demand more sustainable packaging, Earthodic's recyclable, bio-based coating offers a timely solution. The startup is also exploring new applications for Biobarc, including coloured variants for the cosmetics industry and adhesive versions for corrugated cardboard products.

Due diligence: Startup Daily, The Australian

exteRNA raises $11M Seed to advance RNA-targeting cancer therapies

Founders: Professor Vihandha Wickramasinghe & Professor Guillaume Lessene 

Australian biotech startup exteRNA has secured AUD $11 million in an oversubscribed seed funding round to develop innovative cancer therapies targeting RNA processing pathways. Led by IP Group Australia, the round saw participation from Tin Alley Ventures, WEHI Ventures, and HostPlus.

Founded by Professor Vihandha Wickramasinghe, head of the RNA Biology and Cancer Lab at Peter MacCallum Cancer Centre, and Professor Guillaume Lessene of WEHI, exteRNA aims to harness small molecules to modulate RNA processing—a critical biological process affecting gene expression and protein production. Dysregulation of RNA processing is implicated in various hard-to-treat cancers and neurodegenerative diseases.

The funding will accelerate exteRNA's lead program and expand its unique platform to develop therapies that could significantly alter disease trajectories. ExteRNA intends to exploit an underexplored area in cancer treatment by focusing on small molecules. 

ExteRNA is poised to advance toward clinical trials, aiming to offer new therapeutic options for patients with advanced cancers lacking effective treatments.

Due Diligence: Business News Australia

NanoCube Health Secures $3M Grant to Advance Early Pancreatic Cancer Detection

Founders: Lisa Milani & Dr Shawn Goussous

Medtech NanoCube Health has secured a $3 million Federal grant as part of a $7.3 million initiative to develop technology for early detection and treatment of pancreatic cancer. The funding comes from the Australian government's Cooperative Research Centres Program, which recently allocated $55 million across 23 projects spanning critical industries.

NanoCube Health is collaborating with RMIT, the Pancare Foundation, BNNT Technology, the University of Melbourne, Ouroborus, and the Melbourne Centre for Nanofabrication to advance its "Duobots" technology. This minimally invasive, biopsy-free tissue analysis platform leverages artificial intelligence and bioinspired nanorobotics to detect pancreatic cancer at the cellular level, enabling real-time treatment monitoring and targeted therapy delivery.

Pancreatic cancer is projected to become the second leading cause of cancer deaths by 2030. Seven out of ten people diagnosed won't survive a year after diagnosis. 

The grant will bolster NanoCube Health's current funding round, with every dollar invested matched by $3 from the Australian Government. The company gained recognition after winning last year's SXSW Sydney pitch competition, which led Milani to pitch at SXSW in Austin, Texas, earlier this year.

Due Diligence: Startup Daily 

Antler announces latest 12 investments after announcing their $77M Australian Fund 2

These startups participated in Antlers' 10-week residency, then pitched and successfully landed $225,000 pre-Seed funding for 12% of their company. You can apply here as well.

Authentified

Founders: Ben Chamberlain (CEO) and David Johnson (CTO)

Authentified revolutionises the fashion resale market by enabling customers to consign pre-loved fashion items directly from the order history page of a brand's website in under 30 seconds. The platform automates listing, managing, and selling across multiple second-hand marketplaces like eBay, simplifying the resale process for both brands and consumers.

Balo

Founders: Michael Joo (CEO) and Yomi Joseph (CTO)

Balo introduces the Expert-Driven Help Desk (EDHD), a new model for enterprise software support. It connects users with top global experts on demand for hands-on technical, strategic, and training assistance. Offering a pay-as-you-go model, Balo provides a cost-effective alternative to traditional support teams.

Bella

Founder: Danilo Podrascanin (CEO) 

Bella is an AI-driven B2B sales agent platform that automates LinkedIn and email outreach. It delivers detailed prospect research and personalised messaging, handles replies, and schedules meetings—all at a fraction of the cost of traditional sales teams. 

Communiti Labs

Founders: Steven Germain (CEO) and Daniel Ferguson (CTO)

Communiti Labs offers an AI-powered data analytics platform that transforms feedback from in-person and online engagements into actionable strategies. By gathering and analysing survey data from multiple channels, the platform helps organisations like local governments and corporations understand community sentiment and customer feedback to drive better decision-making.

Frontcover

Founder: Alan Crabbe (CEO)

Frontcover is a community platform designed to keep members engaged with real-time visual updates, important links, and announcements—without the distractions of traditional social media. It empowers communities to attract new members and facilitates partnerships and collaborations with brands, enhancing engagement and growth.

JubJub

Founders: Tom McCarthy (CEO) and Gilbert Pochet (CTO)

JubJub is building the infrastructure for a connected media industry by simplifying content management, distribution, and monetisation for creators and media companies. Its platform offers transparent and automated workflows, reducing time and costs associated with content publishing and creating a payment network for seamless revenue sharing.

Lyngo AI

Founders: Tanmay Patel (CEO) and Cam Moore (CTO) 

Lyngo AI provides a 24/7 automated phone answering system for clinics. It manages patient FAQs, appointment scheduling, and messages, reducing the administrative burden on staff and clinicians while enhancing patient service.

Pactify

Founders: Rahul Moudgil (CEO) and Nagendra Yadav (CTO)

Pactify is developing an operating system for intellectual property licensing tailored to the creator economy. It offers an AI-powered CRM that transforms agreements into campaign briefs, deliverables, tasks, and invoices. Pactify streamlines workflows for talent managers and creators, simplifying the management of assets and brand collaborations.

Seestone

Founders: Nilufer Haksever (CEO) and Josh Leask (CTO)

Seestone is an AI-powered buying platform that assists fashion retailers in making better purchasing decisions. By providing data-driven insights, error detection, industry benchmarking, and automated assortment planning, Seestone helps reduce excess inventory and boosts full-price sales and profit margins.

Shopfront

Founders: Nathan Spiteri (CEO) and Drew Flaherty (CTO)

Shopfront streamlines the product listing process for sellers on second-hand and alternative marketplaces. Utilising AI and API integrations, the platform reduces listing time from 15 minutes to less than 1 minute across multiple marketplaces, enabling sellers to manage large volumes of listings more efficiently.

Spoony

Founders: Nicholas Carlton (CEO) and Kenneth Liang (CTO) 

Spoony is a community platform designed for neurodivergent, chronically ill, and disabled individuals. It provides a safe, accessible, and stigma-free space for social connections and health management. 

Yeyro

Founders: Rav Brar (CEO) and Navdeep Brar (CTO) 

Yeyro offers enterprises a plug-and-play wearables solution to monitor worker health and safety, especially in high-risk industries like mining and construction. By integrating their smart watches and rings with leading wearable brands like Apple and Oura, Yeyro enables companies to deploy health monitoring without building their own wearables infrastructure.

Due Diligence: Startup D

🥳 M&A🥳

PageUp founder nets $100M+ in stake sale to EQT Partners (AFR)

• Karen Cariss, who founded HR software firm PageUp in 1997, sold her remaining 19% stake to Swedish buyout firm EQT Partners, valuing the company at $600-$700 million.

• EQT Partners bought out all shares from Battery Ventures and minority shareholders, adding to its HR tech portfolio that includes Peakon and Unmind.

🫰New Fund, Who’s This?🫰

Paloma Capital, the capital arm of the venture studio,  has launched its second fund, raising AUD$25 million to invest in high-growth tech startups in Australia and New Zealand.

• The fund will focus on breakout companies and new ventures in underserved industries and generative AI. 

• Fund II will support 14-18 startups across pre-Seed, Seed, and Series A rounds, offering capital and operational assistance through Paloma's venture studio.

• Paloma's model helped grow portfolio revenue from AUD$5 million to AUD$43 million over three years, with new ventures reaching AUD$1 million ARR in 20 months.

• OS guest writer Lea Rausch interviewed Paloma founder Sebastian Cox on his advice for founders for their capital table here. 

👀 Vibe Check 👀 

👛 StartGiving is a not-for-profit organisation inspiring a culture of giving in the Australian innovation community, and the Centre for Social Impact launched tech community giving survey.

• They're inviting tech professionals—whether you're already giving or just starting out—to participate in an easy, anonymous survey. Your insights will help inspire more giving within the tech community. Take the survey here.

📺️ Atlassian Founder Mike Cannon-Brookes supported his Q1 FY25 Results announcement with a Loom video. Atlassian acquired Loom for $975M late last year, so it's a nice way to show off the product.

📍 Notice Board 📍 

Nominations are now open for the 2024 Teens in Business Awards, hosted by non-profit organisation Young Change Agents.

• Entries close on Thursday, November 13th. Find out more and apply here

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♀️ How to anchor your positioning as a portfolio careerist, by Anna Mackenzie

• A lot of people working in startups consider themselves ‘portfolio careerist’ - someone that makes up their living through various different pursuits rather than one traditional 9-5 role. But this piece is relevant to anyone on the hunt for work in the startup ecosystem.

• Especially at early stage startups, generalists are often high-value hires, but this doesn’t mean you can get away with 'positioning’ yourself as good at everything, for any type of company. My experience talking to startup hire hopefuls is that their ability to actually explain how they add value and what they’re best at, or particularly passionate about is a rarity. Just like any business needs strong positioning to cut through the competitor noise, so do you.

Will’s Pick 💁‍♂️ Acquired: Meta, The Complete History & Strategy of Meta

• If you’ve got a spare 6 hours, 22 minutes and 40 seconds to learn about how Zuckerberg built meta like he was playing a game of Civ, check out this podcast.

Extra Reading: Breakthrough Victoria Annual Report

2024 Report

2023 Report

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‘Til next time,

👋 Will & Gem

🔨 Tool Box 🔧 

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