Eight Aussie startups that raised $433 million this week
To say this week has been a big one in terms of funding deals for Australian startups would be an understatement.
To say this week has been a big one for funding deals to Australian startups would be an understatement. In total, we’ve counted eight local startups that have collectively raised an incredible $433 million.
To put that in perspective: a total of $739 million was raised by Australian startups in the entire third quarter of 2023, according to the latest quarterly report from Cut Through Venture.
More than half of this week’s total came from Employment Hero, which takes the mantle of the largest deal done so far this year with a $263 million Series F. Another $120 million came from Canberra based space tech company Skykraft.
Employment Hero: $263 million
Australian unicorn Employment Hero says it will “transcend the traditional confines of HR and payroll” within the next 12 months, after locking in an enormous $263 million in Series F funding on Thursday.
The biggest raise by an Australian startup this year, it was led by Californian giant Technology Crossover Ventures (TCV), which has previously backed the likes of Airbnb and Spotify.
With its recently launched Swag app, and artificial intelligence-powered talent acquisition system SmartMatch, Employment Hero is now preparing for deeper international expansion.
“While we were not actively seeking funding, our growth story has meant that we have received significant inbound investor interest – this has given us incredible confidence in our vision and allowed us to opportunistically boost our balance sheet, even at a time when the funding environment has been tight,” said CEO and co-founder Ben Thompson.
Skykraft: $120 million
Canberra-based space technology company Skykraft has also locked in one of the largest startup funding deals in Australia this year, securing $120 million from investors to fuel its mission to disrupt air traffic management.
Founded in 2017, Skykraft designs and produces small satellites that can be used to improve the way air traffic control and aircraft communicate with each other.
The tech company has already launched 10 such satellites this year, and plans to launch more throughout in 2024 to complete in-orbit training. In 2025, it plans to deploy its initial constellation of hundreds of satellites in low-earth orbit.
The significant funding injection comes from Foresight Australia, the local subsidiary of the UK fund manager, Canadian pension fund OPTrust, and CSIRO’s deep tech investment fund, Main Sequence.
Darwinium: $28 million
Sydney-based digital security and fraud prevention startup Darwinium has raised $28 million (US$18 million) in Series A funding this week.
The round was led by US Venture Partners, with other participating investors including Blackbird, Airtree and US family office Accomplice.
Darwinium was co-founded in 2021 by Alisdair Faulkner, who co-founded and was the chief product officer of ThreatMetrix, was acquired by LexisNexis Risk Solutions in 2018 for US$830 million.
The startup previously raised $10 million in seed funding in late 2022, in a round led by Blackbird and also including Airtree and a number of angel investors, including Naval Ravikant and Jeff Fagnan.
Darwinium promises “continuous customer protection” by detecting fraud across customers’ entire journeys, rather than focusing on point-in-time interactions.
“AI capabilities have given fraudsters the upper hand of speed, scale and greater efficiency. This is why we designed Darwinium to deliver the visibility and coverage of a security tool, the context and insight of fraud solutions, with the agility of AI. It’s the platform that will future-proof organisations against the most complex attacks,” said Faulkner in a statement.
“With this round, we can more effectively execute on our vision to protect every customer from the consequences of fraud, scams and abuse.”
Konvoy Kegs: $13 million
A startup that rents kegs to brewers, while also allowing them to track and monitor the beer inside the kegs, has raised $13 million to scale up its operations in the UK and Ireland, reports the Australian Financial Review.
Konvoy Kegs launched in Australia and New Zealand in October 2019 by founders Adam Trippe-Smith and Shane Bradley, and went on to acquire two other operators, Red Kegs and Keg Services, in 2020.
The business currently serves 600 brewers in Australia and Asia and employs a team of 30.
According to the AFR, Konvoy Kegs will seek to raise another $10 million in capital in the UK, where it is negotiating agreements for brewers to use its tracking technology. Similar agreements are also reportedly being negotiated in Ireland, France, Finland, Sweden and the Netherlands.
The Martec: $8 million
Sydney-based HR tech startup The Martec has $8 million in fresh funding to help it take its talent marketing platform to the next level.
Founded in 2015 by CEO Raaj Govintharajah, The Martec’s AI-based platform is already being used by the likes of Telstra, Optus, Coles, Sainsbury’s Marriott, Vodafone, Adobe and Siemens to help them find the best talent in the marketplace.
The platform essentially markets a business to prospective talent. It develops video and written content with a company’s top employee advocates, which is then distributed across websites, recruitment teams and social channels. It also integrates with other key HR outputs, including job descriptions and career pages.
The $8 million funding round was led by AS1, and also included participation from Airtree.
“Generative AI is hot right now, but the solutions that will win are the ones supporting organisations solving real world problems,” Govintharajah said in a statement.
“We’re using AI as an enabler to bring out the trusted, ‘human’ side of these organisations, directly from their employees. A more powerful angle than traditional, branded content.”
Wander: $913,598
Upmarket ‘pod’ hotel startup Wander has raised more than $900,000 via an equity crowdfunding campaign on Birchal, including investment from former Airbnb country manager Sam McDonagh.
The accommodation innovator, founded by Sydney hospitality designer Cassandra Sasso in 2019, is now eyeing expansion across regional and rural Australia with its WanderPods — miniature, boutique hotel suites in some of Australia’s most scenic locales.
Wander has already established multiple WanderPods on Kangaroo Island, South Australia, and in Queensland’s Scenic Rim, and plans to expand into the Grampians, Snowy Mountains, Flinders Ranges, and beyond.
The company’s Birchal campaign, which closed on Thursday, was supported by 315 investors.
I Am Company: $648,698
Also finding success on Birchal this week was food manufacturing company I Am Company, which successfully raised more than $648,000 from 271 investors.
Since launching in 2018, I Am Company has locked in supermarket giants Woolworths, Coles and Aldi as stockists for its ready-to-eat Yog’n Oats snack brand. The company has recently launched its Yogoletti dessert range and says it has grown its volumes by an impressive 7000% in 18 months.
The company says it turned to equity crowdfunding to bolster is sales beyond current levels of 75,000 units a week and to scale its team.
Delidoor: $274,824
The Birchal campaign for meal delivery platform Delidoor also closed on Thursday, with the fast-growing business raising more than $274,000 from 129 investors.
One of the finalists for this year’s Smart50 Rising Star Award, Delidoor’s mission is to provide “the best food solution to busy households” through its preservative-free prepared meals. The company was founded by French ex-pats Jacques Lepron and Mathieu Thomas.
The company says it recorded $2.6 million in revenue in the 2023 financial year and grew by 180%.
The next phase of growth will see Delidoor increase its range of recipes and single serve meals.
