G'day and welcome to Overnight Success!

A big shout-out to the 70 new subscribers who’ve joined since the last edition.

It’s been a busy two weeks since the last newsletter, and a lot has happened in the Aussie start-up ecosystem, so let’s get into it! 💃🕺

Headlines

• No more 10 min groceries as Milkrun collapses 🚴 🙅‍♀️

  • The start-up is the final major player in the Aussie ultra-fast grocery delivery category to shut up shop, outside of international behemoth Uber Eats.

  • Despite only being a sprightly 18-month-old, Milkrun managed to secure $86M in investment from major Australian and overseas investors during that time. (Startup Daily)

  • The collapse has triggered significant commentary from the start-up ecosystem - many screaming ‘I told you so’, while others have celebrated a champion of branding with a creative advertising strategy of legends.

  • Word has it that meat delivery subscription business Our Cow, who bought the assets of once-Milkrun rival Voly at the end of last year, now has their sights set on Milkrun’s customers too. (AFR)

  • There was LOTS of noise in the media this week on this one, but we loved this opinion piece in the SMH from Jake Carrano, a former Milkrun rider and apparent poet (?) who summed up his experience tactfully.

• LaunchVic places its bets announcing the 2023 30x30 cohort 🚀

  • The 30x30 program is named after its aspiration to grow 30 Victorian unicorns by 2030. This year, nine worthy startups will access executive coaching from highly respected mentors to help them prepare to take the world by storm.

  • This is the program’s second cohort, with alumni from last year, including Mr Yum and Bare. (LaunchVic Announcement)

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.

⚡️Start-up Retro⚡️

Cybersecurity

Fivecast raises a $29.8M Series A led by US investors

Adelaide-based software start-up, Fivecast, has landed a $29.8M ($20M USD) Series A round led by US cybersecurity VC Ten Eleven. Main Sequence Ventures and the government-owned South Australian Venture Capital Fund also participated in the round. Fivecast is an open-source intelligence (OSINT) software start-up that helps governments and large enterprises monitor and process large volumes of data. Fivecast is currently operating across national security, defence, law enforcement, commercial security and financial intelligence. The software can help predict and track anything from fraud to terrorist threats. The fresh capital will be used to expand existing contracts, including those with the Five Eyes nations (Aus, Canada, NZ, UK & US). The company will now look to expand into the Asia Pacific and European regions, with growth particularly from corporate security and financial intelligence products.

Due Diligence: Finsmes & FinTech Global

HR / B2B

Circle In rounds off $2M round to improve employee benefits

Melbourne-based and female-founded employee benefits platform, Circle In, has raised $2M led by Alberts Impact Ventures. Existing backers and female founder-focused investors Scale Ventures and LaunchVic's Alice Anderson Fund also participated in the round. Circle In helps companies deliver a family support system focusing on expectant and working parents. In particular, Circle In focuses on supporting staff through parenthood, including family planning, menopause, and bereavement. Circle In provides employers with an app that offers 700 resources, 1-on-1 manager support and custom reminders for employees’ life events. The funds are earmarked for global expansion and platform development. Impressively, the business has a 95% renewal rate with large clients including Medibank, Coca-Cola Amatil, EY and Ashurst.

Due Diligence: Startup Daily

Marketplace / HR

Co-architecture cements its start with $330k pre-Seed round to build a designer marketplace

The Western Australian start-up Co-architecture has raised $330,000 in a pre-Seed round led by Skalata Ventures. A few local angel investors also contributed. The platform connects design professionals with businesses hiring for projects or work. Job seekers can also view advertised roles. Home renovators can use the platform to reach professionals directly by posting their small renovation projects on the platform. Use cases range from small residential houses to large commercial buildings. Historically, design recruitment has been decentralised with freelancers working off word-of-mouth recommendations. Co-architecture is also making a point to collect industry data and report on equality and diversity - the recent industry salary guide was published here. Investors were impressed by its market penetration, having already signed up 8% of Aussie design professionals.

Due Diligence: Startup Daily

Mental Health / Productivity

Modo raises $800K pre-product to build a mental health application

Melbourne-based modo has raised $800,000 to build their mental health app, despite being nine months away from the expected product release. The party round included Archangel Ventures, Black Sheep Capital, Co Ventures, Giant Leap Fund, the Alice Anderson Fund, and angel cheques from Culture Amp and Seer co-founders. The app is described as the “Marie Kondo for your mind” and will focus on improving mental wellbeing, productivity and building healthy habits. Modo is another primarily female-founded start-up that was able to raise from the Alice Anderson Fund. As the start-up is pre-product, investors are clearly backing the founding team to deliver. Dr Soukayna Bekkali, one of the co-founders, is a cognitive neuroscientist who previously worked at Deakin University. She joined the start-up as their Chief Science Officer. The app has been pitched to deliver a personalised experience with neurocognitive techniques via individual subscriptions and will kick off in early 2024.

Due Diligence: Startup Daily & The Australian

AR / 3D Modeling / B2B

JigSpace jags $5.2M to take 3D presentation software global

Melbourne-based startup JigSpace, has raised $5.2M from existing investors, including Rampersand, Investible and Vulpes Investment Management. JigSpace is a 3D knowledge-sharing platform that allows 3D models to be easily shared and explained. The software can take a highly complex 3D CAD (Computer Aided Design) model such as a jet engine or an F1 Car and make it accessible on a mobile app or browser. The platform is used across various industries, including medical, automotive, consumer products and infrastructure. 3D products are often hosted on expensive, clunky programs requiring heavy-duty computers and experience. The ability for engineers to share their work with other stakeholders is the key challenge that JigSpace aims to solve. JigSpace has seen solid growth, with more than 300,000 ‘Jig’s’ created across 83 counties. The latest funds will be used to expand the commercial team and accelerate the global growth of its AR demonstration app.

To visualise the app, check out this 30 second YouTube clip.

Due Diligence: Business News Australia

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

Crowdfunding

• Electric car-sharing platform evee, this week hit its fundraising goal on Birchal, raising $1.6M. (Business News Australia)

Notice Board

• 🤘 Startmate Demo Day is happening this week on the 19th of April in Sydney, and we’ll be there!

  • You can grab tickets here.

  • Use the code SMOVERNIGHT to get 10% off tickets and to let them know we sent you.

• Folklore Ventures Engineering Chapter - applications are open!

  • If you’re an engineer looking to become a senior tech leader or CTO at a startup, this one’s for you!

  • Kicking off in May, over 4 weeks selected participants will learn what it takes to become a great engineering leader.

  • Applications are open until midnight on 26 April.

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

• AirRobe 👗 Is expanding its platform through partnerships with 10 Australian retailers. (AFR)

  • The company has worked primarily with online fashion retailer, The Iconic to date. The tech plugs into the brand’s existing checkout experience to allow customers to access past purchase information and add items to a virtual “robe” for resale or rental. It’s a potential game-changer for enabling a more circular economy for the fashion industry.

• A friend of OS, Caleb Maru, has a newsletter that covers the African Start-up scene, and it’s going gangbusters. Tech Safari has just ticked over 7000 subscribers; you can one-click subscribe below!

Vibe Check

• The commentary around the shutdown of Milkrun has certainly been an eye-opener; the pinnacle is probably this AFR opinion piece.

• It’s been a common theme that this kind of negative commentary often disregards the reality of VC investing.

  • At an ultra-high level, the power law exists; most start-ups fail, but VC firms must invest with conviction, and often plenty of cash, for their fund dynamics to work.

• While much has been said, this post on LinkedIn from James Cameron, Partner at AirTree, captures the reality of Milkrun’s shutdown from the perspective of the fund and its LPs.

Accredited Tweeters

KaaS (Knowledge as a Service)

• So you want to raise some moula for your start-up? 🤑 Check out these articles for advice-galore:

  • Decoding VC Questions. Do you know what a VC will ask you in your first meeting and what they want to hear? 

    • An article from our very own Will Richards following a unique event at this year’s _SOUTHSTART festival, which gave the audience a ‘fly on the wall’ look at a typical conversation between three VCs and three founders.

  • Seed Stage Fundraising Tips. 8 snappy pointers for founders from a US-based VC.

• ICYMI: Cut Through Venture Q1 2023 Report is live

  • Check out the latest data on what’s been happening in the world of Aussie VC fundraising in the report here.

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‘Til next time,

👋 Will & Gem