🇦🇺 This Week in Australian Startups #111, 6th April 2025

I’m back after taking last week off to celebrate Eid, which is the end of Ramadan. On a personal note - this is first year in Australia that I’ve spoken to so many people, particularly in tech, who are aware of what it is. It’s been a nice feeling to not have to explain the same thing every year. Representation of course matters, but being a good ally is in many ways just as if not more important to minority groups - especially those who continue to be marginalised by mainstream media.

If we're already connected on LinkedIn you may have seen my update a few weeks ago that I've joined Rippling to lead the Account Management team in APAC. I'll be sharing a more detailed update in the coming weeks about why I joined. The main update for today is that I'll be travelling to San Francisco today to spend the week at Rippling HQ, so there will be no newsletter next week - 20th April will be the next edition.

The biggest news story in this last fortnight has been without a doubt the saga surrounding StrongRoom AI and EVP - if you haven’t already caught up on it, here’s the best summaries and insights I’ve read;

• Unspoken: What Does the EVP × StrongRoom AI News Mean for Founders? (The Aussie Startup Capital Nerd)

• 'Wilful fraud': The search for StrongRoom AI's missing millions (Capital Brief)

• From a Moroccan villa to the courtroom: how StrongRoom AI’s good times went bad (AFR)

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Top News

• Australian writers seek government help in legal battle with Meta (The Australian)

• Leonardo.Ai shrugs off threat from ChatGPT’s new image tools (Capital Brief)

• Australia's top VCs aren't just investing in AI — they're using it for (almost) everything (Capital Brief)

• Canva shocks employees with AI-related job cuts (AFR)

• Data analytics startup WhyHive is shutting down 2 years after raising $600,000 (Startup Daily)

• NSW Blueprint is a good start, but more work required (InnovationAus)

• Portable gets $1.1m grant for tech tool to stop worker underpayments (SmartCompany)

• Australia should hold its nerve against Facebook despite tariff threat (The Australian)

• Boston’s PSG Equity is in advanced discussions to acquire Uptick, a software provider to the building compliance industry, focused on fire safety and heating, ventilation and air-conditioning (HVAC) (AFR)

• Fat Zebra buys SecurePay from Australia Post (Capital Brief)

• WhyHive, the ‘Canva for data’, shutting down after pre-seed round (SmartCompany)

• CBA opens tech hub in Seattle to boost AI skills (The Australian)

• Harrison.ai revenue hit $4.75m ahead of $178m raise (Capital Brief)

• Westpac to pour $600m into UNITE tech overhaul in FY25 (Capital Brief)

• Domain suitor CoStar lifts takeover bid by $145m after negotiations with Nine (BNA)

• AustralianSuper sells $580m stake in WiseTech, takes swipe at board (AFR)

• High-profile drone delivery start-up Swoop’s assets sold (AFR)

• PsiQuantum targets $9.5b valuation, handing Labor a potential windfall (AFR)

• Blackbird Ventures kicks off process to raise sixth fund (Capital Brief)

• Koala schedules non-deal roadshow for IPO; $100m raising tipped (AFR)

• R&D tax incentive payments to fall by $650 million (InnovationAus)

• Powerhouse Ventures seeds new fund with $20m in assets to target space, AI and quantum computing (BNA)

• VentureCrowd notches 137 per cent return on CriticalArc sale to Five V Capital (BNA)

• Three young venture capitalists get creative to break through (AFR)

Funding Rounds

This Week $26m - 31st March to 6th April 2025

• QuintessenceLabs, cybersecurity startup that develops quantum-enhanced data protection solutions, has raised $20m in a Seed round from National Reconstruction Fund, Main Sequence Ventures, Telus and InterValley Ventures (InnovationAus | Startup Daily)

• Flagship, a digital visual merchandising platform that allows physical stores to access real-time data on inventory levels, product views, and conversion rates, has raised $6m in a Seed round from Coreline, Veridical Ventures, Tidal Ventures and Macdoch Ventures (SmartCompany | The Australian | BNA)

• Sorata, an AI-powered market intelligence provider of public ownership data on AXS-listed companes, has raised an undisclosed amount from Angel Investors (AFR)

• H3D, a cutting-edge tech company that is reinventing custom-fit devices using AI and automation, has raised an undisclosed amount from Swinburne University of Technology (Swinburne)

Last Week $494.75m - 25th April to 30th March 2025

• Protecht, an enterprise risk management software that helps manage risks and monitor compliance, has raised $445m ($280m USD) in a round from PSG Equity (AFR | BNA | Capital Brief)

• Iceberg Quantum, a startup designing the architecture and blueprints for fault-tolerant quantum computers, has raised $2m in a Pre-Seed round from Blackbird and LocalGlobe (BNA | The Australian | Startup Daily)

• Carma, an online used car marketplace, has raised $30m from Regal Funds Management, Tiger Global, General Catalyst and Five V Capital (BNA | Capital Brief | AFR)

• Project Manda, an AI-powered platform that provides coaching, feedback, and follow-ups to make meetings more productive and reduce admin, has raised $2m in a Pre-Seed round from Tech Labs Capital, Black Sheep Capital and Angel Investors (SmartCompany)

• DeteQt, a startup developing highly sensitive, portable, and scalable quantum magnetometers that integrate nitrogen-vacancy diamond technology with traditional silicon chip fabrication, has raised $750k in a Pre-Seed round from Main Sequence Ventures and ATP Fund (Startup Daily | InnovationAus)

• Gaia Project Australia, an AgTech that makes modular cultivation systems to enhance food security and sustainability, has raised $1m in a Seed round from La Trobe University and Breakthrough Victoria (InnovationAus | BNA)

• MOOD.ai, which is building an intuitive workplace wellbeing app that prioritises privacy and psychological safety, has raised an undisclosed amount in a Pre-Seed round (Direct)

• Pluralis Research, a startup developing 'Protocol Learning', a framework that enables multiple contributors to train large-scale AI models collaboratively over open-source, permissionless networks, has raised $12m in a Seed round from USV, CoinFund, Topology, Variant, Eden Block, Bodhi Ventures and Angel Investors (SmartCompany)

• Hachiko, a startup developing a battery optimisation and portfolio management platform , has raised $1m in a Pre-Seed round from Twynam Ventures (SmartCompany)

• EntroMat, who is developing advanced metal powders that can be used in industries such as aerospace, mining, energy and medtech, has raised $1m in a undisclosed round from Breakthrough Victoria, Swinburne University of Technology (BNA | SmartCompany)

• Global IT Factory, an EdTech startup that makes curriculum management software for educational institutions, has raised an undisclosed amount from Microequities Asset Management (Tech in Asia)

• Southern Launch, a startup that provides comprehensive launch and re-entry services for space missions with two spaceports in South Australia, has raised an undisclosed amount from Angel Investors (Space Connect)

• AutoSettle, Australia’s first virtual settlement exchange for vehicles, has raised an undisclosed amount from IronArch (Direct)