The amount of capital flowing into Australian startups has dropped by 50 per cent compared to the same period last year. However, we have noticed an increase in promotion ads in recent weeks.
Just a few examples: Australia’s largest semiconductor company Morse Micro raised $140 million led by Japanese chip giant Mega Chips (which also received US FCC certification), security and safety support platform Sonder raised $35 million in Blackbird. $14M directed by Insight.
So good money is still out there. In the US, VCs have a record amount of cash – at least US$290bn, including $162bn earmarked for new investments. Over the past couple of months, we’ve seen several Australian-related VC fund announcements:
Financial Aids: Andrew “Twiggy” of Forrest Tatarang Investment Group is backing a new $250 million health technology fund. Ten miles. Matt Berriman raised $20m for the new $50m fund RealvcHe made his first investment in Livewire (gaming adtech). Former Deloitte executives were launched Center Stone Capital (He also led a $10M investment in 6clicks – GRC platform) and Turn on VCIt is looking to raise $30 million.
Funds 3 and 4: Telstra Ventures $500m and closed. OIF They raised $140 million for their third fund. An interesting read on Telstra Ventures’ use of data science in investment decision making. EVPThe new $100m fourth fund has closed the first $60m, saying it has not had to write down investments this year as its average investment estimate is 8.4x ARR. Main order venture He confirmed that he aims to raise $300 million for his third fund.
No more media darlings. Journalists aimed at VCs AFR Criticizing their role in fueling inflation and hiring and spending businesses last year… to the point of “lecture[e] Details about unit economics and the importance of cash flow founders. It’s not wrong. of Sydney Morning Herald He even digs into Blackbird’s “self-legendary” mission and new bird vision-inspired website.
By the way, Blackbird founder Niki Scevac recently upped his Twitter meme game.
The investor knows that the entrepreneur’s forecast was not, in fact, conservative pic.twitter.com/xfhNppY8PT
— Nikiscevak (@nikiscevak) August 23, 2022
Men’s Club. The SBA Australia/Deloitte/Techboard report found that startups founded solely with female founders received only 0.7% of private sector funding in FY22. Mixed gender groups received 14.2 percent. They have allium and regal Only Over the past four years, he has invested in startups founded by men. Abo.
Women in action. Gabriel Munzer was appointed Main order ventureFirst female investment partner. A Ventures She also promoted Sarah Maybush to partner. Across the ditch, Movac Partner Lovina McMurchy left the VC world to join Kry10 as COO (Movac invested).
Hunting for capital? Keep your deck short. TechCrunch reports that investors will spend 24% less time perusing the pitch floor in 2022 than in 2021. On average, you only have 2 minutes and 42 seconds to convince them to take a meeting with you.
Our friends at Cut Through Venture are hosting a demo day, FLIPPED, on October 7th, where pre-seed and seed investors will give their money to founders.
Canva’s New World Domination Strategy. A 44% price cut isn’t slowing down Canva’s growth. In September, the company unveiled several new products and features, including an end-to-end visual communications platform that ranked #3 in the Forbes Cloud 100. Complete with documents, whiteboards, website builder and data visualization, the Canva Visual Worksuite gives Google Workspace and Microsoft Office a run for their money.
Many people missed it last week: Canva announced a slew of new products to challenge Microsoft Office + other productivity tools.
Here’s why I think this might be one of the most significant brand ads of all time. pic.twitter.com/tfaOsuOlcC
– Turner Novak 🍌🧢 (@Turner Novak) September 22, 2022
Visible green light. Ser will launch its home-based epilepsy control technology in the US after receiving FDA approval.
Cash or wallet? New employee share plan rules have come into effect in Australia that allow companies to offer up to $30k a year in equity to employees. Related: Shopify now lets employees decide how much of their compensation they receive in cash and equity.
Warming up. Climate Salad released its report on the climate technology industry by ANZ.
All that glitter. Martech Unable to raise additional capital, MetG was placed into liquidation. It last raised $20m in November 2020, and the company said in November 2020 it had $5m FY20 revenue, $20m forecast in FY21 revenue and a customer base of over 26,000. Speaking to AdNews at the time, Regal contributed a large portion of that $20m round.
Regal Fund Management says you don’t need to meet in person to see the numbers… “The biggest factor in investing in the first place is the person you’re backing, boy or girl. David has had previous success in his other businesses, but he is so passionate and clearly driven…we knew he would be a good steward of newly invested money.
Was it just? Administrators said since then that sales totaled $61,000 in FY22 and alleged that Metigi engaged in property acquisitions after extending a $7.7 million loan to director and CEO David Faithfull in late 2021.
In the container: Optus reputation. ICYMI Optus was hit with a massive data breach. We’re not sure what’s worse – the breach itself or Optus’ response to customers.
In other hacking news, London police have arrested a 17-year-old boy suspected of hacking Uber and Rockstar Games (maker of Grand Theft Auto).
Consider this a good reminder to 1. Map (maintain) data assets, 2. Develop/evaluate a risk response plan, and 3. Educate your team to continuously identify sources of risk. Not if, but when.
ASX bids farewell to three tech cos. iSelect’s The board compared with competitor Innovation Holdings Australia (compare market), valuing the business at $72 million – just 15 percent of its IPO market in 2013. Shareholders and the ACCC have yet to approve the deal. Travel app A $179m takeover offer by Pfizer was agreed and canceled this week. ResApp claims to diagnose various respiratory diseases such as asthma and covid-19 by capturing coughs on a smartphone. MyDeal’s The acquisition by Woolies was also completed by delisting the marketplace from the ASX.
MYOB has acquired Flare, a staffing platform that provides onboarding, benefits and retirement services to SMEs. To differentiate, MYOB wants to go beyond accounting.
French unicorn Algolia acquires Search.io; A Sydney search and discovery technology startup. Algolia is one of the largest search providers in the world.
StraxCorp is merging with Philadelphia-based CurveBeam. The StruxCorp algorithm (spinned out of Melbourne Uni) helps to map a person’s anatomy and assess fractures. StraxCorp’s technology will be combined with CurveBeam’s next-gen, low-beam CT machines.
It is obtained by human power Accel-KKR-backed HR has indicated that rival HR is on the hunt for other acquisitions.
Oflod made the first purchase – CIA Logistics, Melbourne freight veteran. Offload’s digital freight platform connects shippers and carriers, increasing cargo visibility and reducing inefficiencies.
Figma is sold to Adobe For US$20bn – the biggest deal to date. With technology and the economy in the doldrums, Adobe has won over much of the design community with its collaborative tool, and found it an opportune time to strike at Figma. Related: A great essay on Figma’s brilliance (2020).
— Rolf Winkler (@RolfeWinkler) September 15, 2022