💌 Aussie Startup & VC Summary | 3rd 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. 🚀 

Happy democracy sausage day! 🌭 Australia heads to the polling booths for an election that is rather so-so for tech and innovation, with the sector hardly getting mentioned during the campaign. The incumbent Labor government has proposed a tax on unrealised capital gains, which has been slammed by local VCs as “bad policy”. On the other hand, Dutton’s Coalition pledges to double the ESVCLP thresholds to stimulate VC investment while also suggesting they’ll kill the $15B National Reconstruction Fund, which has already backed some quantum and spacetech companies.

👀 Headlines 👀 

🌄 Sunrise festival marks 10 years as a reflection of Australia's tech growth as the ecosystem flocks to Carrigeworks (Capital Brief)

• At Sunrise 2025, Blackbird partner Samantha Wong highlighted the remarkable growth of Australia's startup ecosystem, from a small network to one of global significance.

• Companies like Atlassian, Aconex, and Canva have vastly exceeded early expectations. For context, Atlassian grew revenue from $320 million in 2014 to $4.4 billion today, while Canva expanded from 9 million monthly designs in 2016 to 1 billion monthly designs in 2025.

• Wong encouraged attendees to recalibrate ambitions, envisioning what could be achieved by 2035, considering ongoing shifts like AI-driven disruption and uncertain global conditions.

• In our favourite talk of the festival, Tim Doyle, the founder of Eucalyptus, urged more founders to “have a crack” and stop talking about doing something, and actually do it. (Startup Daily)

⛔ Top Australian VCs slam Labor’s unrealised capital gains tax as damaging for startups (Capital Brief)

• Prominent venture capitalists, including Square Peg’s Paul Bassat, have criticised the Albanese government's proposed 15% tax on unrealised capital gains for super funds above $3 million, arguing it will severely hamper innovation funding.

• Critics argue the tax ignores the highly illiquid nature of startup investments, potentially forcing investors to pay tax on gains they may never realise, threatening smaller VC firms and discouraging risk-taking in innovation.

⚕️MedTech’s warn Trump's tariffs could force Aussie manufacturing to relocate to the US (AFR)

• Nanosonics CEO Michael Kavanagh says proposed US tariffs threaten local manufacturing, potentially forcing emerging companies to relocate their operations to the US without government support.

• Large Australian medical firms like ResMed are already expanding US-based manufacturing to mitigate tariff risks.

• Ex-CSIRO CEO Larry Marshall calls for strategic government aid, such as tax breaks, growth capital, and low-interest loans, to keep medtech innovation and manufacturing in Australia.

• Despite a strong local R&D presence and market growth, Australian medtech companies struggle to attract domestic investment compared to US funding opportunities.

🏚️ PropHero slashes Australian workforce despite recent $100m valuation (AFR)

• PropHero, an AI-driven property investment platform backed by Bailador, has laid off most of its Australian staff just two months after raising a $25 million funding round.

• Australian staff were asked to switch to commission-only pay, with marketing operations relocated to Spain due to declining local revenues, which now account for under 10% of total revenue.

💵 CoStar extends due diligence on $2.8b Domain acquisition (Capital Brief)

• US property giant CoStar has received an additional two weeks to complete due diligence for its proposed $2.8 billion takeover of Domain.

• CoStar confirmed that, based on its investigations so far, it has no intention of adjusting its current bid of $4.43 per share.

• The extension follows an initial four-week exclusivity period, aiming to finalise negotiations and transaction terms between both companies. Domain, currently controlled by Nine, closed at $4.16 per share, below CoStar’s offer price.

✈️ Swoop Aero collapses from $100m valuation to $1m fire-sale amid internal turmoil, but like a phoenix, Kite Aero emerges  (Capital Brief)

• Drone startup Swoop Aero, once valued at $100 million for delivering medical supplies to remote areas, sold its assets for just $1 million after entering administration last November.

• The assets were acquired by Philip van der Burg, former CEO of competitor Carbonix, who is founding Kite Aero to commercialise drone software for global operators.

• Creditors expressed confusion and frustration over the low sale price. Rejected offers included a previously accepted $2 million bid and an $11.5 million bid from Braiin Group, which was declined due to concerns about payment reliability and stock value.

• Kite Aero has rehired several former Swoop employees, resumed operations in Africa, and plans to attract venture capital, positioning itself as a provider of integrated software solutions in the global drone industry.

⚡️ Startup Retro ⚡️

Zyft bags $7.5M at a $37.5M valuation to make price comparison easier for consumers

Founder: Damien Waller

Zyft, a retail products price comparison site founded by iSelect cofounder Damien Waller, has secured $7.5 million in funding led by PSC Insurance founder Paul Dwyer, giving it a post-money valuation of $37.5 million. The Melbourne-based startup uses AI to help consumers compare prices across over 50,000 Australian retailers, promising average savings of around 30%.

The fresh funds will accelerate AI integration, diversify revenue streams, and enhance the user experience. Zyft, launched in 2019, has attracted over 550,000 users seeking price transparency in online shopping. Zyft uses AI to scan millions of products in real-time, displaying current prices, stock availability, and even price history. It works both online and in-store—users can scan a barcode with the app to instantly compare prices elsewhere. Unlike some platforms, Zyft doesn’t prioritise paid listings, ensuring unbiased results

Alongside the raise, Zyft appointed Richard Stevens, former CEO of LocalAgent Finder and a former iSelect executive, as its new CEO. Stevens aims to deepen retailer partnerships and amplify consumer savings.

Founder Damien Waller, known for building comparison platforms such as iSelect and CareAbout, sees this round as critical to Zyft’s mission: empowering informed buying decisions and delivering significant consumer value in Australia’s competitive online retail landscape.

Due Diligence: Startup Daily

Fluency raises $1.5M to automate enterprise process documentation

Founders: Oliver Farnill & Finnlay Morcombe

Fluency, a Melbourne-based SaaS startup, has closed a A$1.5 million pre-seed round to reimagine how enterprises document, manage, and orchestrate their business processes. The round attracted a diverse coalition of investors, including Bradley Tabone (co-founder of HammerTech), Archangel Ventures, Exhort Ventures, Startmate and Singaporean VCs 1MX.ai and Orvel Ventures, alongside early supporters such as Swinburne Ventures Limited and BoardRoom Limited. 

Founded by 24-year-old best mates and self-taught developers Finnlay Morcombe and Oliver Farnill, Fluency’s platform tackles the outdated and costly way enterprises manage standard operating procedures (SOPs).

Born out of frustration with manual documentation during a university internship, Fluency uses proprietary AI to observe workflows across any app—no integrations required—automatically generating accurate SOPs in seconds. The system also offers real-time workflow insights, helping teams proactively spot bottlenecks, risks, and compliance gaps.

As remote work and compliance demands rise, Fluency aims to become the “central nervous system” for operational excellence. The funding will support team expansion and the development of AI features that not only observe but also eventually run enterprise workflows. It’s a fresh approach from a Gen Z founding team solving a long-ignored pain point with tangible ROI.

Due Diligence: Capital Brief, Startmate Demo Day!

Finder and NobleOak secure media-for-equity deals with Scaleup Mediafund

Scaleup Mediafund has struck new media-for-equity deals with financial comparison platform Finder and ASX-listed life insurer NobleOak. The fund, backed by media companies including News Corp, Nova, Foxtel, REA Group, and oOh!media, offers startups discounted advertising inventory in exchange for equity.

The size of the Finder deal wasn't disclosed, but Scaleup principal Michael Lamont described it as among the largest. NobleOak secured $1.5 million worth of advertising in exchange for over one million shares.

These investments highlight growing startup interest in media-for-equity arrangements as businesses seek cost-effective brand growth. NobleOak CEO Anthony Brown said the partnership would strengthen their position as Australia's fastest-growing direct life insurer. Finder CEO Frank Restuccia emphasised the strategic benefit of premium advertising for expanding brand awareness and supporting customer acquisition.

Scaleup Mediafund has now completed six deals from its latest fund, investing over $45 million in advertising into 21 companies since launch, including PointsBet, Mad Paws, and Hawke’s Brewing, with five exits through IPOS or acquisitions.

Due Diligence: Startup Daily

🚀 Accelerator News 🚀

⚡Antler announces eight new AI-driven startups from its 12th Australian cohort, selected from thousands of applicants across fields like robotics, cybersecurity, and health. (Startup Daily)

• AI is now central to Antler’s investment strategy, with founders leveraging it to build faster, solve harder problems, and scale with leaner teams.

• The new cohort benefits from Antler’s Agreement of Rolling Capital (ARC), a funding model guaranteeing follow-on capital once startups raise AU$300K+ from external investors, reducing early-stage risk and increasing support through to the Seed stage.

🔍 AdviseWell – Streamlines the production of financial advice, enabling scalable growth without additional headcount.

🧠 Auric – Delivers AI-powered mood enhancement through connected aromas, offering "Mood as a Service."

🤖 Imitation Machines – Provides robot imitation learning as a service, simplifying the development of complex robotic behaviours.

🏠 Lodgicl – Connects insurers and suppliers using structured data and intelligent workflows to streamline operations.

📄 PaperLab – Enables researchers and R&D teams to extract insights from thousands of complex documents in minutes.

🧰 Prefactor – Empowers engineers to build highly customisable, end-to-end user management systems.

🎥 RoundTable – Assists creators in monetising superfans through live interactive video experiences.

💼 ViaPay – Facilitates businesses with order-to-cash automation, enhancing financial operations.

💰️ Wins 💰️ 

🍐 Bae Juice expands into Australia's $1.6 billion energy drink market (SmartCompany)

• Melbourne-based Bae Juice, known for its Korean pear hangover prevention drink, has launched a new natural caffeinated juice called Bae Juice Energy, targeting Australia’s rapidly growing energy drinks category.

• Since launching in 2019, Bae Juice has sold over five million units, generating more than $10 million in total sales, and is expected to exceed $3 million in revenues this year.

• Bae Juice Energy is positioned as a healthier alternative, made with Korean pear juice, green tea extract, and Vitamin C, appealing to consumers moving away from sugary and synthetic beverages.

🥇 Hoogly, an AI-powered platform from Sydney that transforms employee engagement through personalised feedback, real-time insights, and trust-building conversations, has won competitions in both San Diego and London

• In San Diego, Hoogly took the Workforce Learning stream at the GSV Cup 50 from among 1,900 global startups, emerging as the #1 winner in the Workforce Learning category at the prestigious GSV Cup 50. (LinkedIn)

• Across the pond, in London, Hoogly took out first place in the startup pitch competition at HR Technologies UK. (LinkedIn)

🧱 MGA Thermal has launched the world’s first commercial latent heat Electro-Thermal Energy Storage (ETES) system, delivering 24/7 renewable industrial-grade steam from intermittent renewable energy sources. (Press Release)

• The ETES demonstration plant, located in Tomago, NSW, is compact (12m x 3m x 4m), stores 5 MWh of energy, and can deliver 500kW of thermal power—equivalent to powering 270 homes with steam for 24 hours.

• Latent heat technology offers higher energy density, efficiency, and compactness compared to traditional sensible heat storage, using phase change materials (MGA blocks) to store and dispatch energy with minimal temperature variation.

♻️ Samsara Eco partners with global engineering firm KBR to deliver the world’s first enzymatic recycling plant capable of processing 20,000 metric tonnes of nylon annually, with completion targeted for early 2028. (Press Release)

• The facility will use Samsara Eco’s proprietary enzymatic technology, powered by AI, to break down plastics and synthetic fibres into their original monomers, enabling continuous, low-carbon recycling of materials like nylon 6,6, coloured fabrics, and blended textiles.

• Unlike traditional recycling, Samsara’s process avoids quality degradation and allows hard-to-recycle plastics to be reused infinitely, supporting circularity in plastics and textiles.

• KBR will provide engineering expertise, delivering a pre-FEED (Front-End Engineering Design) by mid-2025, followed by a full FEED package to enable plant construction.

📆 Notice Board 📆 

👯‍♀️ Applications are open for the next Press Play, a 12-week, equity-free accelerator for women transitioning from corporate Australia to becoming a founder.

• Who should apply? Women across Australia (plus their co-founders) who are transitioning to entrepreneurship. Heads up! There are 20 Scholarships available with an 85% discount, so make sure you apply for one. 

• Applications close 15 May 2025; Cohort runs from 1 August to 15 November 2025. 👉 Apply now to secure your spot. Make sure you mention Overnight Success in your application as the referring site.

The best place to find upcoming events to attend and promote any events you’re hosting is 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)

Will’s Pick 💁‍♂️ Live from Sunrise: How Alex Zaccaria Reclaimed Linktree’s Vision and Culture (YouTube)

• Didn’t make it to Sunrise? Or were you at Sunrise but stuck in the lobby, talking to friends all day? This was a great talk hosted by Blackbird’s Mason Yates with the co-founder and CEO of Linktree, Alex Zaccaria.

• My main takeaway was how Alex found that they were struggling due to a thousand well-intentioned blows. This conversation focuses on how Alex noticed this happening over the last 3-4 years, and he’s recently changed his mindset to focus on his gut feeling and backing his intuition.

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‘Til next time,

👋 Will

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