From quantum computing to quesadillas: Top 12 biggest capital raises of 2024
In a tough economic environment, Australian businesses across the tech, financial services, and restaurant sectors all secured major funding.
It was a difficult year for many Australian startups, as investors turned their attention to profitable businesses and sure bets in an uncertain economic environment.
But some homegrown ventures still landed major investment deals, helping them develop quantum computing solutions, insurance technology, and in one instance, burritos.
Here are the top capital raises of the year, ranked by dollar value.
1. PsiQuantum
Amount raised: $940 million
When? April
In a tough environment for venture funding, one startup stood out: PsiQuantum, which secured a combined $940 million investment from the federal and Queensland governments.
Founded by Australian physicists Jeremy O’Brien and Terry Rudolph, along with Dr Peter Shadbolt and professor Mark Thompson, PsiQuantum has a simple goal: creating the first “useful” quantum computers.
Of course, completing that task is easier said than done. The government funding will assist in that goal — and hopefully bring some of the economic benefits of quantum computing to Queensland, where PsiQuantum will establish its regional HQ.
The investment is projected to result in 400 new local jobs, on top of the 280 positions existing positions within the Silicon Valley-based enterprise.
2. Guzman y Gomez
Amount raised: $335 million
When? June
Round: IPO
Sydney-born restaurant chain Guzman y Gomez raised $335.1 million in its June ASX IPO, a resounding result for the Tex-Mex slingers.
That instant pop saw Guzman y Gomez soar to a $3 billion valuation shortly after hitting the bourse.
3. Betashares
Amount raised: Up to $300 million
When? June
Financial services company Betashares notched the #3 spot with an invesment valued at up to $300 million, contributed by Singapore’s Temasek.
Betashares is a popular retail investment platform offering Australians access to ETFs and shares traded across the ASX.
It counted $38 billion in funds under management in June, and moved into the superannuation sector in August through the acquisition of Bendigo Super.
The deal will assist Betashares as it expands into international financial services markets, and grows the list of products and services it offers to clients.
4. Hysata
Amount raised: $172 million
When? May
Round: Series B
Hysata is developing electrolyser technology that efficiently converts water to ‘green’ hydrogen, an alternative to natural gas and fossil fuel sources.
The Wollongong-based startup argues energy consumption is the main bottleneck preventing even greater ‘green’ hydrogen production, and that its solution is more cost-effective than existing options.
That vision convinced the investors, led by bp’s venture arm, to invest heavily into Hysata through its US$111 million Series B round.
5. Bugcrowd
Amount raised: $156 million
When? February
Round: Series E
Bugcrowd takes a unique approach to cybersecurity: it grants businesses access to a network of trusted, ethical hackers, who stress-test their digital systems and report vulnerabilities.
The 12-year-old business, founded in Sydney, secured a $156 million Series E round led by American investors General Catalyst, Costanoa, and Rally Ventures.
Speaking to SmartCompany at the time, CEO Dave Gerry said increasing cybersecurity threats mean customers are spending big on its services.
“Customers are spending more than they ever have,” he said.
“They’re adding to their programs.
“And I think for us, it’s an indication that they’re actually getting the value that we think we’re providing.”
6. Fleet Space Technologies
Amount raised: $150 million
When? December
Round: Series D
Fleet Space Technologies was in full flight this December, booking a $150 million Series D funding round to support its forward-thinking satellite systems.
The startup’s ExoSphere system intends to use satellites for 3D subsurface imaging, with the goal of making mineral prospecting more efficient.
Fleet Space Technologies states the accurate identification and extraction of critical mineral deposits will be essential for the net zero transition.
The latest round was led by Teachers’ Venture Growth, with contributions from existing investors Blackbird Ventures, Hostplus, Horizons Ventures, Artesian Venture Partners, and Alumni Ventures.
7. Cover Genius
Amount raised: $120 million
When? May
Round: Series E
Former Smart50 winner Cover Genius is an insurance technology unicorn, allowing global brands like Uber, eBay, and Ryanair the ability to offer insurance to their own customers.
Founded in Sydney and now based in New York, Cover Genius effectively celebrated 10 years of operation with a $120 million Series E round.
It was led by VC Spark Capital, with contributions from existing investors Dawn Capital, King River Capital and G Squared.
8. Honey Insurance
Amount raised: $108 million
When? April
Round: Series A
Insurance startups go back-to-back on the top ten list for 2024, with Honey Insurance securing a $108 million Series A round in April.
Honey Insurance uses a mixture of in-home smart sensors, satellite imaging, and artificial intelligence to create insurance plans that go beyond typical set-and-forget policies.
The startup’s goal is to create personalised insurance plans that reward policyholders more effectively when they reduce their risk profile.
The round was one of the largest Series A investments booked by a local tech company.
9. HammerTech
Amount raised: $105 million
When? July
Round: Series B
HammerTech, a startup offering compliance and safety monitoring systems for construction businesses, raised $105 million this July in a Series B round.
The startup says its platform allows businesses to go beyond historic injury and incident reports, in favour of dashboards that provide proactive data on worker training and compliance checks.
Its platform has been used in more than 20,000 projects worldwide, with more than 3.6 million workers inducted through HammerTech to date.
US-based Riverwood Capital led the raise.
10. Samsara Eco
Amount raised: $100 million
When? June
Round: Series A extension
Recycling pioneers Samsara Eco landed a $100 million Series A extension, supporting its development of enzymes capable of chewing through the most stubborn plastics.
Samsara Eco’s patented system is focused on plastics like nylon 6,6 and polyester, both of which are found in household goods and clothing items.
The problem is those plastics often end up in landfill; Samsara Eco’s systems turn those plastics into materials capable of being used in the creation of new plastics.
Existing investor Temasek, the Singapore-owned investment firm, led the raise, with extra contributions from Main Sequence, backed by Australia’s own CSIRO.
Other new and returning investors included Wollemi Capital, Hitachi Ventures, Titanium Ventures, activewear giant Lululemon and DCVC.
11. Q-CTRL
Amount raised: $86.3 million
When? October
Round: Series B extension
Q-CTRL supports the quantum computing sector by creating software enabling those pioneers to get the most out of cutting-edge technology.
Its $86.3 million Series B extension brought the overall value of that funding round to $166 million.
SmartCompany‘s own Tegan Jones spoke with Q-CTRL CEO Michael Biercuk about the raise and how it will power the startup; you can read more here.
12. SafetyCulture
Amount raised: $75 million
When? September
Workplace compliance platform (and HammerTech competitor) SafetyCulture secured $75 million in fresh funding this September.
It was led by Airtree Ventures, marking the biggest single initial investment in the VC firm’s history.
Earlier investors Blackbird and Morpheus Ventures also chipped in, and Hostplus and HESTA made their own contributions.
Speaking to SmartCompany, founder Luke Anear said the investment will help SafetyCulture build solutions for multinational enterprises and consider the use of AI within its systems.
The deal affirmed SafetyCulture’s valuation at $2.5 billion.
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