Three Aussie startups, and a fast food chain, that raised $247.5 million this week
It’s been a big week for funding news, and a slightly unusual one too with burrito chain Guzman y Gomez topping the list.
It’s been a big week for funding news, and a slightly unusual one too.
Our weekly funding round-ups usually focus on tech startups raising millions but this week we’re also including quick service restaurant chain Guzman y Gomez, which has raised $134.5 million at an eye-watering valuation of $1.73 billion. We think it’s worth noting because of the sheer size of the raise, and because the homegrown brand says it still may consider an initial public offering.
Keep reading to find out more, and learn about three other startups that collectively raised $113 million this week.
Guzman y Gomez: $134.5 million
Homegrown burrito chain Guzman y Gomez revealed this week that it has secured $134.5 million in fresh capital, bringing its valuation up from $1.6 billion to $1.73 billion.
The new investment comes two years after the Mexican-themed chain raised capital, and included participation from four new investors: Cooper Investors, Hyperion Asset Management, Firetrail Investments and QVG Capital, reports the Australian Financial Review.
Existing investors, including Aware Super and TDM Growth Partners, also contributed to the funding event.
While Guzman y Gomez hit pause on plans to list on the Australian Securities Exchange earlier this year amid widening losses, the company said on Tuesday it has not ruled out an IPO and will assess options for one over the coming 12 months.
Founded in Sydney in 2006 by Steven Marks and Robert Hazan, Guzman y Gomez had more than 200 stores in Australia, Singapore, Japan and the US as of the end of 2023.
You can read more about the chain’s business model in this SmartCompany article by Jason Andrew, published in January.
Honey Insurance: $108 million
Honey Insurance has secured one of the largest capital raises so far this year, after this week announcing it has completed a $108 million Series A funding round, led by international investment firm Gallatin Point Capital.
Launched by CEO Richard Joffe in mid-2021, Honey Insurance wants to redefine the traditional insurance model in Australia by using a combination of artificial intelligence, satellite imagery and smart home technology.
According to the startup, the entire customer journey for products like home insurance can be streamlined and made more transparent by using this tech, from purchasing an actual policy through to getting claims processed.
Honey Insurance previously raised $15.5 million in seed funding in 2021.
While many Australian startups that raise significant capital rounds do so to fuel their overseas expansion, Joffe says Honey Insurance has no immediate plans to expand outside of the Australian market.
Skin2Neuron: $4 million
Sydney-based biotech startup Skin2Neuron has successfully raised $4 million of what it hopes will eventually be a $15 million funding round.
As reported by The Australian, the startup is working on a way to reverse memory loss associated with Alzheimer’s disease by using cells from hair follicles.
It was founded in 2019 by Professor Michael Valenzuela and Bill Manos after Valenzuela discovered the presence of what he calls “neural precursors” within hair follicles while working at the University of Sydney.
The startup has successfully improved mental function, and reversed the symptoms of dementia, in trials with dogs and will now reportedly look to trial its technology in humans.
AVESS Energy: $1 million
Perth-based energy storage systems startup AVESS Energy has raised $1 million in what it is calling a Series A Round 2 funding round.
The company, which owns 50% of South Korean vanadium redox flow battery (VRFB) R&D company KORID Energy and is the owner of its technology, bills itself as Australia’s next energy storage solution”.
It says the funding from sophisticated investors will help get it closer to deploying its 50kW/250kWh VRFB and boost the company’s local manufacturing and production capabilities.
The funding round included a cornerstone investment by Ken Brinsden and participation by executive chairman Young Yu, along with new and existing shareholders.
