G'day and welcome to Overnight Success. A warm welcome to the 56 new subscribers that have joined since the last edition!

Let’s get down to business…! 🕺💃

Headlines

• 🌱 Sydney’s climate-tech hub get a $29M boost from City of Sydney (The Fifth Estate)

  • The climate-tech hub is set to open in July this year and has already received expressions of interest from more than 50 climate-tech start-ups. The hub will be operated by Greenhouse - owned by Investible - and CreativeCubes - a veteran in offering flexible working spaces.

• 👼 Airwallex shines during SVB chaos (AFR)

  • Who doesn’t love a silver lining? Airwallex has come out on top off the back of last week’s SVB collapse. The company has had 250 new customers sign up since the collapse - double their normal signup rate.

  • Airwallex allows its customers to conduct business in other countries without the usual high fees or the need to set up their own foreign bank accounts.

• 🙅‍♀️ Xero writes of $31M acquisition of Waddle following ~800 staff getting let go (AFR)

  • The new CEO Sukhinder Singh Cassidy has had to make some tough calls in her first five months in the top job.

  • Waddle, an invoice financing business, was bought out by Xero in 2020 shortly after closing a deal to integrate with Commonwealth Bank.

1. Start-up Retro: Australia's start-up raises with a smidge of context.

2. Notice Board: Signposting key events and opportunities.

3. Wins: Highlighting wins, big and small.

4. Vibe Check: An insider look at happenings across the ecosystem.

5. Accredited Tweeters: Snippets from mostly Aussie start-up Twitter.

6. (KaaS) Knowledge as a Service: Articles to make you smarter. Or to share with co-workers to make them think you’re smart.

7. Guess the Aussie Start-up: A series of hints to guess an Aussie start-up. How well do you know Australian start-ups?

⚡️Start-up Retro⚡️

FinTech / AgriTech

Digital Agriculture Services (DAS) lands $3M from Canadian-based TELUS Ventures

The Australian FinTech firm Digital Agriculture Services (DAS) has raised a $3M 'interim funding' round. The round was led by Canadian-based corporate VC TELUS but also included existing investors Startmate and CSIRO. The company was a member of Startmate’s 2020 Melbourne Accelerator. Through access to meaningful data, DAS enables stakeholders to better understand their agriculture assets. Working with financial institutions that need to insure or lend to growers, DAS provides them with a holistic view to understand the performance and opportunity in their client's assets. The platform gives a wide range of tools to help these stakeholders, including visualisations, workflow automation, API connections and yield forecasts. The platform then connects to their clients CRM's to natively provide unique and valuable insights. The CSIRO formed DAS and now has a diverse range of customers. ABS, Rabobank, IAG, JLL and Viterra all utilise the platform. The customer base is currently limited to Australia and New Zealand, but with strategic capital from TELUS, expansion into Canada and North America will follow. TELUS owns an agriculture and consumer goods digital business with over 5,400 customers in 50 countries.

Due Diligence: Startup Daily

Waste Management

Royal Flush: Skalata backs wastewater management platform Lewi Software

Lewi Software, a start-up created to bring utility companies into the 21st century, has raised a $200K Seed round. The capital comes from Skalata, who sees a significant opportunity in the $4T global market that owns $100B in assets in Australia. Software modernisation has generally left behind the wastewater industry, and Lewi hopes to bring it forward. Engineers use complex toolbars to manually build flowsheets, often with calculations needed at every additional section. Lewi Software allows any process engineer to use a drag-and-drop system that does the behind-the-scenes math. Older programs often work like a calculator, with the engineer hitting "calculate" like testing code. Lewi will instead throw up a warning if the system is unbalanced. Lewi will focus on developing their product for the ‘blue ocean’ of wastewater but will eventually build out into other industries involving process or chemical engineers.

Due Diligence: Skalata Investment Note

HealthTech / Pain Management

MoreGoodDays lands $3.5M from Blackbird to democratise pain management

MoreGoodDays have raised its first capital to the tune of $3.5M led by Blackbird Ventures, The Snow Foundation (Terry Snow), Giant Leap, and the Alice Anderson Fund. The platform is an online psychology-based pain management program that aims to help users better manage fibromyalgia and chronic pain. Fibromyalgia is a common condition that causes general pain all over the body. The solution is counter-positioned to surgery or opioid painkillers with a high-risk profile. The 'whole-of-person' approach focuses on physiotherapy, psychology, and diet. The platform gives access to online resources, personalised peer support, and 1:1 telemedicine. Also counter-positioned is the price. The program costs $119 a month for three months or $95 a month if paid quarterly, which is more affordable than traditional pain management programs. Nealia Fulia and Helena Hgo, the founders who initially met during the Startmate Founders Fellowship, have both seen family members experience pain problems. According to the World Health Organization, one in five people lives with some form of chronic pain. Each client has a fortnightly call with a coach who has also experienced the condition and is taught methods to better manage their pain and improve their mental and emotional wellbeing.

Due Diligence: AFR

LegalTech

Nexl raises $4M led by EVP to create a lawyer-specific CRM

The new CRM that works across ‘the entire law firm’ has raised $4M following a significant pivot. The round was led by EVP but included participation from The Legal Tech Fund, Vulpes, and Saniel Ventures. Nexl was originally a 'LinkedIn for Lawyers' like Doximity (LinkedIn for Doctors) but struggled to monetise. The platform was running out of runway but had deep market penetration, and the pivot to a CRM allowed the platform to monetise. Like any business, law firms need their siloed teams to communicate, so a cross-functional platform that connects lawyers, marketing teams, business development, and leadership is valuable. The CRM is specific to the demands of a law firm and unlocks revenue by driving tighter alignment with different teams. The platform has greatly benefited from the trust it gained as a networking platform and has leveraged that network for marketing and several $100K+ SaaS contracts. Daniel Szekely, a partner at EVP, has joined the board and looked at the start-up several times (and said no) before investing. "It wasn't until he launched the CRM and had very strong traction and large, multi $100,000 contracts with multinational firms that it made sense for us."

Due Diligence: AFR

Data

AirTrunk lands $650M of debt and equity to expand cloud centres internationally

AirTrunk, an Australian data centre operator, has raised $650M in debt and equity funding. AirTrunk has always been capital hungry, having now raised over $5B. AirTrunk builds and operates four data centres in Australia and has a presence in Singapore, Malaysia, and Japan. The debt funding is considered ESG financing, as the capital is linked to sustainability commitments, with AirTrunk committed to being net zero by 2030. This capital will expand the Japanese data centre, TOK1, and continue the expansion of the newer TOK2 centre. The equity financing in the round came from existing shareholders Macquarie Asset Management and PSP Investments. AirTrunk works with large enterprise customers in the Asia-Pacific and Japanese regions. To see a time-lapse of the construction of one of these centres, check out this 1-minute video.

Due Diligence: AFR

PropTech / FinTech

Downsizer secures $3.75M to help asset-rich customers find a more suitable property

Downsizer, a Sydney-based prop-tech startup, has raised $3.75M in Seed funding. The round was led by Correlation Australia Holdings, with existing shareholders chipping in. Downsizer looks to help asset-rich Australians improve their lifestyle and finances as they downsize into a more appropriate home. The platform allows homeowners to utilise that equity to secure a new property, without a cash deposit. Many older homeowners have built up significant value in their homes and no longer have an income, making it hard to pass a traditional credit assessment. Traditionally, these homeowners would have to sell their primary home or dip into their super to downsize. Downsizer’s platform is simple and automated and can quickly assess the valuation of a home and any lending risks based on age. Users can search a marketplace, promptly check their eligibility, get 'approval in principle' and draft a contract. The capital will be used to further develop the platform, which hopes to integrate into the real estate and lending value-chains.

Due Diligence: Startup Daily

Space

Quasar Satellite Technologies lands $6M pre-Series A to improve Earth to Satellite communications

Quasar Satellite Technologies, a space communications startup, has raised $6M in pre-Series A funding. The round was led by Main Sequence Ventures, with co-investment from the PAN Group and angel investment from Mar and Lindy De Stoop of Climatech Group. The capital comes as Quasar also landed a $5.3M Defence Innovation Hub contract. The newly raised funding will be used to build out the team and complete the work needed to fulfil the defence contract. Quasar differentiates themselves from large dish satellite structures that were developed decades ago. As a spin-off of CSIRO, the company uses proprietary Phased Array technology that allows its arrays to communicate with thousands of low-orbiting satellites from a single antenna. With the continued growth of low-orbiting mini-satellites expedited by SpaceX, Quasar will take a subscription fee to use their arrays. Low-orbiting satellites are expected to continue to be incorporated into our daily lives as more data, like high-speed internet, is beamed down.

Due Diligence: Asia Pacific Defence Reporter & Business News Australia

If you're a founder or investor who has just closed a round, please reach out to us at [email protected]

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Notice Board

• 🌈 “Navigating Your Career in Tech” hosted by Out In Tech and Stone & Chalk, 22nd March (Melbourne)

  • A night of networking & conversation with leaders who have first-hand experience navigating the tech industry and understand the unique challenges queer people face in the workplace. Learn more and register here.

  • Best suited to: Anyone who identifies as queer, or those who want to learn how they can better support their rainbow friends and colleagues.

• 🚀 Airtree Pioneers Pitch Night @ Fishburners (Sydney)

  • Will showcase founders from the AirTree Pioneer Community, which exists to support women and non-binary founders to pave their way in the start-up world.

  • Tickets are $15, but you can attend for free if you’re a Fishies resident, or if you join via livestream. Register here.

  • Best suited to: Investors & anyone keen to support female & non-binary founders.

• 🌟 Techstars Accelerator Program

  • Time is running out to put in your application for the newly-launched accelerator from this world-class organisation.

  • ICYMI - OS readers have a direct link to book a 1:1 with MD Kirstin Hunter or you can learn more about the program here!

  • Best suited to: Aspiring & early-stage founders in emerging tech.

Have something to put on the Notice Board? We're always looking for upcoming events & opportunities across the Aussie start-up ecosystem - reach out to [email protected] to add yours!

Wins

• Make It Happen 👏 Broome-based innovation hub that supports Indigenous entrepreneurship in the limelight. (AFR)

  • Launched in 2020 the business has since received support from the likes of Deloitte, global law firm K&L Gates and Investible. The business is already supporting 34 First Nation entrepreneurs and 15 individual businesses.

• Great Wrap 🎁 Launched the world’s first compostable pallet wrap. (LinkedIn)

  • Expanding from their domestic food wrap made from food waste, this new B2B product is not only good news for the planet, but also good news for Great Wrap shareholders…!

• Overnight Success 🚀 We’ve hit 1,500 subscribers (that includes you!)

  • We know it’s bit cringey to call ourselves out, but we’re pretty proud and grateful to have you all along on this ride with us! Thank you!

Vibe Check

OpenAI’s GPT-4 landed this week along with Microsofts new AI tool Copilot, brining with them even more speculation as to how AI might replace existing jobs and business processes.

But is it all hype, or are people actually overhauling the way they work thanks to these rapid developments in AI? We’d love to hear from you!

Accredited Tweeters

KaaS (Knowledge as a Service)

• The End of Silicon Valley (Bank), Stratechery

  • Ben Thompson provides his take on what the SVB collapse says about the state of broader tech ecosystem, and what it means for the future.

• The a16z Growth and Sales Benchmark Calculator

  • A very comprehensive guide with definitions and formulas for an Enterprise SaaS business to compare itself to similar companies.

  • These statistics might be aggressive in the current climate, but they provide an insightful perspective on how an investor will review your start-up.

What is the best thing you read or published this week? Reply to this email to be featured.

Guess the Aussie Start-up

Last Week’s Hint: A shortcut to all things digital, a hub for creators that's quite pivotal. A single line that connects you all. What am I, can you recall?

Answer: Linktree

Congratulations to last week's winners: La’i D, James M, Taryn P.

New Hint: Founded in Sydney but now has offices in over 20 countries, it’s a cloud-based software that helps manage a limited resource. Its clients include independents and chains. Founded in 2006, Blackrock invested at a $750M valuation a few years ago.

Shoot a reply with your best guess; those who guess correctly will gain eternal glory in next week’s newsletter! Reply for an extra hint.

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

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‘Til next time,

👋 Will & Gem