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 👀 

💰 Major Australian super funds are still investing in venture capital and innovation, with Hostplus and AustralianSuper leading the charge. (AFR)

• Hostplus announced an additional $125M investment into IP Group to back university-founded startups, bringing its total commitment to $435M. IP Group partners with nine leading Australian and New Zealand universities and focuses on commercialising research and innovation, particularly in DeepTech and MedTech. 

• Last week, we mentioned the announcement of Airtree's most recent funds, which AustralianSuper and Australian Retirement Trust back. 

• The recent spike in announcements of superannuation backing new VC funds follows a challenging period for startups amid rising interest rates and valuation drops.

• Several emerging fund managers are currently out raising capital - we've covered some of them below. They will be hoping to convince super funds that they are deserving of a portion of their capital over established funds like Blackbird, Airtree and SquarePeg. 

🤝 Seven West Media, ABC, SBS, and ACM have formed an alliance to negotiate with AI firms like OpenAI and Google for compensation over content used in training language models. (Capital Brief)

• News Corp remains the only Australian media company with an active AI licensing deal (reportedly worth up to $250M globally over 5 years, with OpenAI).

• This alliance plans to apply to the ACCC for collective bargaining rights against AI companies.

• Currently, media companies have two options: fight them or join them. Global counterparts are either taking legal action or securing deals with large AI companies. 

📊 Australia's startups who pocketed a piece of the record funding distributed in 2021 are now navigating a challenging landscape, with mixed performances. The Australian Financial Review has the full summary and breakdown.

• Design software giant Canva has increased its valuation to $US32 billion, with surging revenue and user growth, and is preparing for a potential IPO in the next couple of years.

• The cross-border payments platform Airwallex became cash-flow positive in December 2023, with an annualised revenue run rate exceeding $US500 million, and is eyeing a public listing within two years.

• E-commerce marketing firm Rokt continues profitable growth with plans for a Nasdaq listing, though the IPO timeline remains uncertain.

• Online corporate training marketplace Go1 doubled its valuation to $US2 billion a year after its 2021 raise, acquired Blinkist, and is nearing profitability with reportedly over $100 million in the bank.

• HR software provider Employment Hero has expanded to serve over 2.5 million employees, remains well-funded, and expects no immediate need for additional capital (but the founder has made some rouge online comments recently).

• Online pet supplies retailer Pet Circle has maintained its $1 billion valuation with increased revenue and narrowed losses, though it has no immediate IPO plans.

• Employee analytics company Culture Amp faced valuation markdowns and reduced staff by 9%, with growth slowing - but it has reached intermittent cash-flow-positive months.

• Buy-now-pay-later service Scalapay expanded its customer base to 7 million, is close to profitability, and is looking to avoid the need for further capital raising.

• Software deployment firm Octopus Deploy grew its annual recurring revenue to over $US80 million, remains profitable, and has no plans for additional investors.

• Project management software company Simpro sold a majority stake at a valuation of $US600 million. Under new PE leadership, it continues to grow. The founders are focused on VentureOn Partners and reinvesting into the startup ecosystem. 

📱The social media ban for under 16s was passed on Thursday night, but will not be effective for at least 12 months. (SMH)

• The ban is still relatively light on details, but takes aim at algorithmic-focused social media feeds and applications like TikTok, Instagram and Facebook, but will reportedly allow apps like WhatsApp and other one-to-one messenger apps to continue operating for this age group. 

• Both Labor and the Coalition supported the ban, however a couple of conservative Coalition senators crossed the floor (against their party’s position) to vote against or abstain. (ABC)

⚡️ Startup Retro ⚡️

Ajust raises $2.7M to arm consumers with an AI-powered customer complaints platform 

Founder: Thomas Kaldor

Sydney AI startup Ajust, founded by former consumer lawyer Thomas Kaldor, is tackling the headache of customer service disputes with automation for consumers - i.e. making it easy to submit a complaint, and win a positive resolution. Backed by Carthona Capital and angel investors, including Eucalyptus COO Simon Baume, Ajust has raised $2.7 million across pre-seed and seed rounds since launching in 2022. The platform has processed over 20,000 disputes with an 80% success rate for customers.

Ajust’s AI-powered tool uses a large language model trained on Australian Consumer Law and terms from 750 companies to craft complaints, send them to the right department and persist until resolution. Unlike many “GPT wrappers,” Ajust’s model is independent, resilient to company system updates, and tailored to solve real consumer problems. 

Customers can head to the platform to see a list of categories of businesses such as insurance, clothing and travel. Once inside these categories, the 750 companies that are already active can be selected. The Ajust AI is trained on an up-to-date version of their terms and conditions, and consumers briefly describe their complaint. The AI will the start communicating on your behalf to secure a resolution. 

Users frequently report issues like faulty products, hidden fees, and delivery problems, with companies like Qantas and Australia Post among the toughest to deal with. Ajust plans to introduce a freemium model, charging for complex cases while keeping basic services free. 

Due Diligence: AFR, Press Release

Celosia Therapeutics secures $16.75M Series A to advance ALS gene therapy

CEO: Dr Kathryn Sunn

Sydney-based biotech startup Celosia Therapeutics has raised $16.75 million in a Series A funding round to propel its breakthrough gene therapy for amyotrophic lateral sclerosis (ALS). The substantial round, one of the largest for an Australian biotech startup, was led by research commercialisation fund Uniseed. Significant investment also came from hedge fund manager and ALS patient Iomar Barrett, with additional support from UniSuper.

Founded in 2022 with over $2 million in seed funding from Macquarie University, Celosia is developing CTx1000, a novel gene therapy targeting the TDP-43 protein linked to ALS pathology. ALS is a fatal motor neuron disease. It causes progressive degeneration of nerve cells in the spinal cord and brain. Preclinical trials have shown that CTx1000 has the potential to halt disease progression and even reverse neural damage associated with ALS.

Barrett, whose personal battle with ALS adds a poignant layer to his investment, remarked, "The CTx1000 program and Celosia team represent a realistic pathway to finding a cure for ALS, and I am glad to be a part of this journey”. 

The infusion of capital will enable Celosia to advance CTx1000 into clinical trials, offering new hope for patients affected by this devastating neurodegenerative disease.

Due Diligence: Capital Brief, Startup Daily

Airtasker doubles media-for-equity capital to $51.6M with US and UK deals

Founder: Tim Fung

Online services marketplace Airtasker (ASX: ART) has nearly doubled its media capital raised in 2024 to $51.6 million after securing three new partnerships totalling $26.2 million in the US and UK. The company's US division clinched US$12 million ($18.4 million) in media capital through deals with Sinclair Broadcast Group and Mercurius Media Capital LP. In the UK, Airtasker received a £4 million ($7.8 million) follow-on investment from Channel Four Television Corporation.

The Channel Four agreement builds on a previous $6.5 million (£3.5 million) media-for-equity deal that granted the broadcaster a 20% stake in Airtasker's UK operations. Founded in 2012 by CEO Tim Fung, Airtasker is leveraging these media partnerships to accelerate global growth by expanding its audience reach.

The deal with Sinclair provides Airtasker with US$6 million ($9.2 million) in advertising inventory across Sinclair's network of 185 television stations in 86 US markets and digital multicast networks. The Mercurius Media agreement, also worth US$6 million, includes premium advertising inventory across platforms like TelevisaUnivision and Willow TV.

"We’re seeing rapid growth in the UK where revenue is up over 100% year-on-year since we launched our first media partnership with Channel 4," Fung said. 

Airtasker has previously secured $25.4 million in media capital since June 2024, including deals with iHeartMedia and TelevisaUnivision. The company reported positive free cash flow of $1.2 million for FY24 and ended the year with $17.8 million in cash and term deposits. According to Fung, the structure of these media-for-equity and media-for-convertible-note deals makes them highly cost-efficient over multiple years, positioning Airtasker for sustained international expansion.

Due Diligence: Business News Australia

SpacetoCo raises $2M for community space management platform and UK expansion

Founders: Daniel McCullen, Jeremy Hurst, and Daniel Franco

Perth-based space-sharing platform SpacetoCo has secured $2 million in funding from Purpose Ventures as it prepares to enter the UK market in 2025. Founded in 2017 by Daniel McCullen, Jeremy Hurst, and Daniel Franco, SpacetoCo connects communities by streamlining access to under-utilised spaces, particularly those managed by local councils and community centres.

Currently serving over 42% of Western Australia’s metropolitan councils, and 10% of Australian councils, SpacetoCo’s platform reduces administrative burdens while enhancing space utilisation. The company expanded into New Zealand in 2018 and has now been accepted into the UK Government’s Global Entrepreneurs Program.

Purpose Ventures, a $50 million WA-based fund focused on innovation, led the investment. This marks the fund’s sixth investment in 18 months, continuing its support for Western Australian startups.

SpacetoCo’s growth has been bolstered by the WA innovation ecosystem, including participation in the Plus Eight Accelerator and funding from RAC’s Betterlabs fund. 

Due Diligence: Press Release

Safewill secures $17M Series B to expand into estate administration

Founders: Adam Lubofsky and Dan Bennett

Digital estate planning platform Safewill has raised $17 million in a Series B round to expand its services from wills to estate administration. Co-led by Reinventure and King River Capital, the funding attracted participation from Carthona Capital, Flying Fox Ventures, and notable Australian tech leaders, including Betashares founders Alex Vynokur and Ilan Israelstam.

Since launching in 2019, Safewill has grown its user base by 200% year-on-year, enabling over 150,000 Australians to create wills at 80% lower costs than traditional legal services. Partnering with 250 charities, the platform has facilitated more than $1 billion in future fundraising income through bequests.

Safewill has cemented its position as Australia's most prominent digital will provider. Its software is trusted by institutions such as Maurice Blackburn, Mercer Super, and the ACT Public Trustee. Its subsidiary, Safewill Legal, has rapidly become one of Australia’s fastest-growing estate law practices.

CEO Adam Lubofsky aims to modernise estate planning, noting that over half of Australians lack a will. "Our mission is clear: make estate planning accessible, approachable, and relevant for everyone," he said.

Reinventure’s Danny Gilligan called Safewill a standout fintech opportunity, citing its alignment with large, underserved markets and significant societal needs.

Due Diligence: Capital Brief, AFR, Startup Daily 

CSIRO's solar spin-off FPR Energy secures $15M Seed round to decarbonise heavy industry

FPR Energy, a new venture from Australia's national science agency CSIRO, has raised a record $15 million in seed funding to commercialise its advanced solar thermal technology aimed at reducing industrial emissions. The funding marks the largest seed investment for a CSIRO co-founded startup to date.

The capital raise is a collaboration with global advisory and funds management firm RFC Ambrian and Japanese utility leader Osaka Gas. FPR Energy's technology focuses on decarbonising heavy industries - such as minerals refining, steel, cement, and chemical production - which collectively account for 20% of Australia's annual carbon footprint.

At the core of FPR Energy's innovation is its particle-based Concentrated Solar Thermal (CST) technology. This system utilises abundant, low-cost ceramic particles to store sunlight as heat, achieving temperatures up to 1,200C. The high-temperature capability enables long-duration energy storage and supports various industrial processes, green fuel production, and provides reliable, dispatchable power.

The fresh funds will be used to develop a 50-megawatt thermal demonstration plant with up to 16 hours of integrated thermal energy storage. This facility aims to validate the commercial viability of the CST technology at a utility scale.

Looking ahead, FPR Energy plans to expand its technology to other high-solar regions globally, including North and South America, the Middle East, and Africa. The venture builds upon CSIRO’s previous successes in solar technology and is headquartered at the CSIRO Energy Centre in Newcastle.

Due Diligence: CSIRO Release

My Mirror secures $4M to grow online psychologist platform and scale to New Zealand

Founders: Dr Matthew Zoeller and Josh Liwszyc

Mental Health startup My Mirror has raised $4 million in a funding round led by WA-based Purpose Ventures, with participation from angel investor Roger Allen. The company aims to bridge gaps in mental health care through its digital platform, which has facilitated over 60,000 psychology sessions for 18,000 Australians.

Founded by Dr Matthew Zoeller and Josh Liwszyc, My Mirror targets systemic barriers in mental health access. Leveraging proprietary software, it offers instant telehealth psychology services, catering to diverse markets including Medicare, EAP, and NDIS. With Australia’s mental health market valued at $4.5 billion, the company seeks to scale its interoperable solution, connecting stakeholders like referrers, clinicians, and funding sources.

Dr Matthew Zoeller, an intensive care consultant, witnessed firsthand the mounting mental health challenges faced by frontline healthcare workers, alongside a critical shortage of quality support services. His co-founder, Josh Liwszyc, brought a similar perspective, having spent over a decade observing the mental health toll on workers in the resource sector. 

Together, they channelled their shared experiences into building My Mirror, a platform designed to bridge these gaps with accessible, high-quality mental health care. The new funding will fuel platform enhancements and an expansion into New Zealand. 

Due Diligence: Press Release

New Fund, Who’s This?

Artesian and Hort Innovation launch $60M AgTech venture fund (AFR, Startup Daily)

• The fund plans to back up to 30 local and international startups at pre-seed or early Series A stages, with cheque sizes ranging from $250,000 to $3 million over five years.

• Key investment areas include automation, robotics, smart irrigation systems, breeding, and biotechnology to enhance farming processes.

• Hort Innovation will contribute $24 million, while Artesian will provide the remaining $36 million.

• The Hort Innovation Venture Fund adds to the growing list of AgTech investors active in Australia like Cultiv8 Agriculture and Food Technology Fund and Tenacious Ventures.

Athletic Ventures aims to close off their $25M fund backed by elite athletes and buoyed up by GYG success (AFR)

• Led by ex-AFL star Matt de Boer and NBA player Matthew Dellavedova, AV is closing the last few million of its $25 million fund. The fund will be an Early Stage Venture Capital Limited Partnership (ESVCLP).

• Notable investors include Matildas star Sam Kerr, cricket captain Pat Cummins, wheelchair tennis champion Dylan Alcott, and NBA player Patrick Mills. The fund has $20M committed from 50+ pro athletes.

• The fund also has investment from venture leaders, including Square Peg's Paul Bassat, Airtree's Daniel Petre, and GYG co-founder Robert Hazan, among the backers.

• The fund positions itself as a unique value add by leveraging its athletes to bolster portfolio companies' sales and marketing efforts.

• Its current portfolio, made during its days as a syndicate, includes successes like fast-food chain GYG, health tech firm Eucalyptus, and electric golf buggy maker MGI.

• An advisory board includes Nick Crocker (Blackbird Ventures), Justin Lipman (EVP), former cricketer Ed Cowan (TDM Growth Partners), and entrepreneur Daniel Gulati.

Alium Capital, led by partners Rajeev Gupta, Jason Rich, and Michael Considine launches Innovation Fund series, targets $200M raise (AFR)

• Alium Capital Management has finalised the first close of its Innovation Fund series and started writing cheques. The firm seeks to raise $200 million spread over three to four closed-end funds, each targeting $50 million to $75 million.

• The funds will invest in growth equity opportunities within the technology and innovation sectors. The Sydney-based investor returns to capital-raising mode for the first time in seven years and is known for backing companies like mattress brand Koala and skincare business Boost Lab.

• Since 2017, the Alpha Fund has recorded nearly 40 exits with a 23% IRR and a 2.3x multiple on invested capital.

Scale Investors launches $100M fund to back female founders (Capital Brief)

• Led by Samar Mcheileh, Roo Harris, Chelsea Newell, and Solai Valliappan, the firm is focused on addressing Australia's gender funding gap.

• The fund is targeting a first close of $50 million by April next year to invest in early-stage companies with female co-founders in significant roles. Female founders receive just 4% of Australia's venture funding, and the fund seeks to provide more equitable capital access.

• The fund will write investment cheques between $500,000 and $2 million. 

• The team have a record of successful exits with investments, including Trademark Vision (38x return), Cognition Therapeutics (NASDAQ listing), and Verve Super (acquired by Future Super).

🎆 Wins 🎆 

Kapture has developed tech to sequester CO₂ in concrete, reducing emissions and enhancing the performance of the concrete. (Startup Daily)

• Their byproduct lowers cement's environmental impact without extra costs, offsetting up to 1.2 tons of CO₂ per ton of solvent. The commercial rollout is planned for 2025.

Colossal has donated $2.3M to the University of Melbourne to advance avian genomics and conservation, using gene editing to help endangered bird species.

• Funds support genome sequencing and stem cell tech, aiming to revive extinct species like the dodo and Tasmanian tiger through de-extinction efforts.

FB10X, an angel group, has announced it’s deployed $500K in startups with the majority going to female-led ventures (Startup Daily)

• Since its founding in 2022, the angel investor syndicate has invested nearly $500,000 in early-stage ventures.

• The syndicate's newest investment is in Heatseeker, a market experiment platform for fast-growing businesses.

Dome, an early-stage podcast analytics and community platform, has won Red Bull Basement Australia and advanced to the Tokyo finals (Red Bull Announcement)

• The Sydney-based AI-powered podcast platform is chasing the $130 billion podcast industry. It provides hosts with exclusive listener data and AI insights to create engaging content while offering listeners a dedicated space for community and discussions.

📍 Notice Board 📍 

Are you an emerging leader in entrepreneurship or investment looking to expand your horizons? Is it time for you to go to Harvard?

• The Harvard Club of Australia (HCA) offers two exclusive scholarships designed to elevate your knowledge, experience, and connections within the prestigious Harvard community in Australia and abroad.

• Applications are now open and close on 11 December 2024. Apply here.

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

🧠 KaaS (Knowledge as a Service)

Gem’s Pick 💁‍♀️ Spies in the Outback, Expanse by ABC

• A fun little known fun fact about me is that I was born in Alice Springs. Although my family left while I was still a baby, I still feel a sense of connection to the small desert town because of the fond memories and friendships that my parents developed during their 7 years living there. Despite this, even as an adult I knew very little about Pine Gap - a US-Australia joint defence/intelligence facility 18 kilometres from the Alice Springs town centre - and the incredible history and mystery that surrounds it.

• This very well crafted 5-part podcast series explores the backstory behind this high-tech, highly secretive operation, as well the "so what” when it comes to Australia’s role in modern day warfare.

Will’s Pick 💁‍♂️  The campfire test: What the best startup stories have in common by me!

• I also wrote a little piece on how startups can best craft their stories with some actionable insights or strategies of positioning themselves. I’d love your feedback and thoughts.

Have we missed something? Got some feedback? We love emails, so send one over!

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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.