💌 Aussie Startup & VC Summary | 31st May, 2025

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

Excited to have another community spotlight feature with the awesome group at Inhouse Ventures! Check it out just below the Startup Retro.

👀 Headlines 👀 

📈 Speed of startup progression released; seed stage remains steady, while later stages experience timeline compression, according to the latest Cut Through Ventures reports. (LinkedIn)

• The age of seed-stage companies has remained steady, suggesting that AI isn’t having a significant impact on the time it takes startups to hit their seed stage raise milestone

• Later milestones, in particular, Series B and C, are starting to trend younger as the slow deployment in 2023 and 2024 has begun to clear. 

• Chris Gillings from Cut Through Venture added his own commentary on LinkedIn here.  

🏅 The Australian SportsTech sector is worth $5.65B, employing 17,928 people, according to ATSN. 

• In the Sports Innovation Report 2025, released by ATSN, the sector is worth $5.65B, growing 10% in FY2025. Overall, Sportstech contributes 11–13% to Australia’s A$43B sports industry. 

• Top 15% of companies generate 86% of revenue. Big names like Catapult, VALD, PMY, Rosterfy and Kayo Sports are taking home most of the bacon in the sector. These companies are all fairly later stage and the likes of Catapult are listed public companies.

• M&A and VC bounce back in FY2025 with 27 major deals recorded, including DAZN’s A$3.4B buy of Foxtel and Quad Lock’s A$500M acquisition by Thule. On the fundraising side of things, we saw AO Ventures raise US$30M and Athletic Ventures close their first fund.

• The Eastern Seaboard dominates where SportsTech companies are built. Victoria still leads (39% of companies), but QLD’s 20% year-on-year growth and heavy state investment may see it overtake NSW within 3–4 years, spurred on by the Olympics and other major events.

🫗 Liquidity demand far outpaces supply in Australia’s secondary market (Capital Brief)

• SecondQuarter co-founder Ian Beatty says there’s a growing imbalance between startup shareholders seeking liquidity and the capital available to support those transactions.

• Landmark deals like Canva’s US$1.58B secondary and Airwallex’s Series F (50% secondaries) highlight rising activity, but Beatty says Australia lacks specialist secondary funds and scale and calls for the $3 trillion super industry to adopt secondary strategies. 

• This move would mirror what pension funds in the US and Europe do.

🪢 The National Reconstruction Fund (NRF) is having an internal strategic Tug-of-War: Go hard early or play it safe? (Innovation Aus)

• Australia’s $15 billion National Reconstruction Fund is experiencing internal friction, as its board advocates for earlier, more aggressive investments, mirroring models like the Clean Energy Finance Corporation. In contrast, its investment team favours a more cautious approach.

• Despite making ~$450 million in investments since November, only ~$120 million has gone into early-stage local startups like Harrison.ai, Vault Cloud and Quantum Brilliance. Critics say waiting for Series C rounds is “too late” for nurturing strategic sectors.

👤 AUSPOL Update: Coalition reunites, but shadow innovation brief goes to a surprise pick (Innovation Aus)

• The Liberal-National coalition is officially back together, but NSW Liberal Alex Hawke has been appointed shadow industry and innovation minister, overturning expectations that Sussan Ley would retain the portfolio.

• Former Salesforce exec Gisele Kapterian is set to become shadow assistant minister for technology and the digital economy, if she secures the still-undecided seat of Bradfield in northern Sydney.

⚡️ Startup Retro ⚡️

PolyActiva raises $40M Series C for phase 2B trials of dissolvable glaucoma implant

Founder: Russell Tait 

Melbourne-based biotech PolyActiva has raised $40 million in Series C funding to advance its dissolvable glaucoma implant, with $27 million led by the National Reconstruction Fund (NRF) and the remaining $13 million from Brandon Capital. The implant, a biodegradable rod that delivers medication directly into the eye over 6–12 months, offers a replacement for daily eye drops and dissolves once the drug is dispensed.

The raise will help complete Phase 2B trials, consolidate operations into a new Melbourne facility, and expand the team as the company targets commercialisation by 2029. “We want to do for sight what Cochlear did for hearing,” said CEO Vanessa Waddell, noting the funding will allow PolyActiva to scale locally without an early exit.

This marks the NRF’s first public investment since the federal election and a noticeable shift toward backing clinical-stage ventures, amid internal debates about risk appetite. Since its 2023 launch, the NRF has committed $434 million to companies, including Harrison.ai and Quantum Brilliance.

With glaucoma expected to affect 111 million people globally by 2040, PolyActiva’s tech could reshape how the disease is treated—and how Australian biotech scales.

Due Diligence: Capital Brief, AuManufacturing, SmartCompany

Unleash Live lands $17M Series B to expand AI video analytics globally

Founders: Hanno Blankenstein and Jason Grier

Sydney-based AI video analytics scaleup Unleash Live has secured $17 million in Series B funding, nearly four years after its $8 million Series A. Though backers weren’t disclosed, filings reveal participation from Austrian family office JR Investment and SafetyCulture. Existing investors include Roger Allen’s Patagorang Group, Amaysim’s cofounders, and Revel Partners. Angel investors include co-founders of Amaysim Rolf Hansen and Peter O’Connell, as well as Australian tech sector veteran and philanthropist Steve Killelea.

Founded in 2016 by Hanno Blankenstein and Jason Grier, Unleash Live enables enterprises and governments to plug in visual feeds from CCTV, drones, IP cameras or smartphones for real-time AI-powered analysis. Its cloud platform is used across energy, utilities, transport, and public safety sectors to detect faults, optimise traffic flow, and improve inspection workflows. 

For example, in real time, a pedestrian crossing intersection can be analysed by the AI to track people and traffic and give feedback on average pedestrian wait times and traffic flow. 

The company has also built a marketplace of AI apps, allowing users and developers to tailor analytics for specific business needs, from solar panel checks to transport analytics. With rising demand for infrastructure resilience and operational efficiency, CEO Blankenstein says real-time video data is now “essential.”

Valued at $100 million, the company will utilise the new capital to accelerate product development and expand across the Americas and Europe, building on its strong traction in North America, Europe, and ANZ.

Due Diligence: AFR

CalcTree raises $3.8M pre-Seed to make a cloud-native calculation platform for engineers

Founders: Onur Ekinci, Tim Rawling and Mahan Lamei

Engineering SaaS startup CalcTree has raised $3.8 million in pre-seed funding, with Standards Australia making its first-ever venture investment through its new VC arm, Kungari. The round was led by Foundamental, with backing from Suffolk Technologies, Antler, and employees of Autodesk and Bentley.

Describing itself as “GitHub meets Notion” for engineers, CalcTree was founded in 2021 within Antler by Onur Ekinci, Tim Rawling and Mahan Lamei. The platform enables engineers to manage complex calculations, typically performed in spreadsheets, in a collaborative, cloud-native environment. Their goal: eliminate costly errors and inefficiencies that plague large-scale engineering projects.

CalcTree’s public beta, launched in 2024, already has users in 110+ countries, with early adoption from top-tier firms like Arup, Jacobs, Aurecon and WSP. The platform targets construction initially but plans to expand into resources, automotive, and utilities.

Due Diligence: Startup Daily, SmartCompany

Heatseeker AI raises $2.4M to reinvent market research with real-time ad testing

Founders: Kate O’Keeffe, Fiona Triaca, and Rutger Coole

Sydney-based MarTech Heatseeker AI has raised $1.5 million in pre-seed funding to expand its AI-powered market research platform. The round was led by Capital F, with backing from Euphemia, Even Capital, and East End Ventures.

Founded by Kate O’Keeffe (ex-BCG), Fiona Triaca, and Rutger Coolen (former Atlassian Head of Product), Heatseeker replaces traditional focus groups and surveys with live online ad testing to gauge true consumer interest. Instead of relying on what people say they might buy, the platform measures real-time engagement, such as clicks on stealth-mode ads across LinkedIn and Meta platforms, to identify genuine demand signals.

The platform supports use cases like testing new products, slogans, and marketing copy before a full-scale launch. By tracking behavioural data at scale, tens of thousands of users weekly, Heatseeker claims it delivers more reliable and scalable insights than conventional research methods.

For example, users can discover which value proposition resonates most with their product or how they can position the product around what their audience cares about. On the product development side, product features that drive genuine interest and demand can be tested to inform product teams about what to prioritise in the next sprint.

The company will use the funds to launch Synthetic Experiments, a new AI tool designed to reduce the cost and time of running market tests.

Due Diligence: Capital Brief

Vively raises $1.6M to bring glucose tracking to the pre-diabetic mainstream

Founders: Tim Veron and Michael Pang.

Metabolic health startup Vively has raised $1.6 million in Seed funding to scale its AI-powered continuous glucose monitoring (CGM) platform aimed at preventing chronic disease before it starts. The round was led by Archangel Ventures, with participation from Bupa Ventures, the VC arm of the private health insurer, and others.

Launched in 2022 by Tim Veron and Michael Pang, Vively combines real-time glucose data with lifestyle insights and coaching to help users make small, measurable habit changes. Traditionally used to manage diabetes, CGM is now being reimagined as a mainstream preventative tool through Vively’s partnership with Bupa, giving members access to devices, personalised insights, and support from health professionals.

The funding aligns with the rollout of a low-cost CGM program targeting early intervention for pre-diabetes: an effort to shift healthcare from reactive to preventative. The next goal is to grow annualised revenue from $3 million to $10 million in the next 12–18 months.

For Bupa, the investment is a strategic bet on connected, proactive care. As chronic conditions like type 2 diabetes continue to rise, Vively hopes its platform can help millions take control of their health before it's too late.

Due Diligence: Startup Daily

🔦 Inhouse Ventures Community Spotlight 🔦

• Connect with Ben in brand mode at Mercha

• Connect with Christiaan in scale mode at In Motion

• Fundraising? Join the Inhouse Ventures Community

💰️ New Fund, Who’s This? 💰️ 

🥝 New Zealand's Outset Ventures secured NZ$41.5M for Fund II, exceeding the target by 33%. (Startup Daily)

• The fund focuses on deep-tech startups and has received backing from over 150 investors, including NZ Growth Capital Partners, which contributed NZ$15M via Elevate NZ.

• Fund II will invest from pre-seed to Series A in New Zealand startups solving complex scientific and engineering challenges. The first five investments, including OpenStar, Zincovery, and E-Leviate, have collectively raised NZ $70M.

• Outset’s Future House incubator supports over 20 startups on its 5,000 sqm deep tech campus, now seen as a launchpad for globally competitive ventures, of which its alumni include Rocket Lab, LanzaTech, and Mint Innovation.

🚀 Wins 🚀 

💰 More than $36 million in federal innovation grants were given out to startups and scaleups earlier this year with almost no fanfare (Innovation Aus)

• The full list of recipients can be found here, but some startup names include Aquilia (optical power), Alt Leather and Rainstick 

🍷 BioScout goes global with AI-powered crop disease detection (AFR)

• Aussie agtech startup BioScout is scaling across ANZ, Europe, and North America with its AI-driven disease detection system for farms and vineyards, now deployed across 200+ locations.

• The platform integrates automated air sampling, robotic microscopy, and machine vision into a real-time spore detection system, cutting chemical costs by up to 50% while improving disease control.

🚀 NSW’s Space Hub delivers 74x return on public investment (Startup Daily)

• Launched in 2021, the National Space Industry Hub has helped over 80 space-tech startups raise $56 million in funding and create 160 high-value jobs, with every $1 of taxpayer support leveraging $74 in external capital.

📆 Notice Board 📆 

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

🧠 KaaS (Knowledge as a Service)

Will’s Pick 💁‍♂️ Model Context Protocol (MCP) Explained by Nir Diamant

• A super simple explainer on what is MCP, a thing I’ve heard about quite a bit but never really spent the 5 minutes understanding or comprehending ~ now I feel like I can explain it to a mate over a coffee.

• Nir even lays out the basics of setting up an MCP server.

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‘Til next time,

👋 Will