G’day and welcome to your weekly edition of Overnight Success - your download on all the important things that have happened in the Aussie startup ecosystem. 🚀
Check out my breakdown of the nine most interesting things from the 2025 State of Startup Funding Report here.
Sponsor shoutout!
Super pleased to be working with Carta for the next few months. Carta has arrived in Australia in a big way and is giving away a free ESOP template custom-made for the Australian market. More information below, but you can check it out here.
👀 Headlines 👀
📊 The State of Startup Funding Report for 2025 was released by Cut Through Venture and Folklore Ventures.
The Aussie venture market recorded $5.1 billion in funding across 390 deals, with one new unicorn (Firmus). While total capital raised is trending upward relative to 2023 and 2024, the ecosystem remains volatile: 77% of investors reported layoffs among portfolio companies, and 46% reported shutdowns.
Investment is heavily concentrated in Victoria (37%) and New South Wales (33%), accounting for the majority of funding.
If you raised capital last year, there was a good chance you had an Artificial Intelligence offering that attracted $1.0 billion in funding and accounted for 61% of total capital flow. We saw plenty of fresh AI startups emerge, while later-stage companies pivoted to be AI-adjacent.
Fintech ($868m) and Biotech/Medtech ($829m) followed as top-funded sectors. The data on female founders presents a mixed narrative: while the equity capital raised by female founders jumped significantly to 24% (up from 15% in 2024), their overall deal participation decreased to 24%. Meanwhile, median deal sizes ranged from $1.0M for Angel/Pre-Seed rounds to $11.0M for Series A.
💰 Square Peg has completed a $650 million first close across Fund 6 and Opportunities Fund 3, pushing ahead with new investments despite a tough global fundraising market. (Capital Brief)
The firm has already begun deploying capital, including backing portfolio star Airwallex in its US$500 million Series G round, which values the business at US$8 billion. Square Peg becomes the third major Australian VC to raise a new vintage in the past year, following Airtree Ventures and Blackbird Ventures.
The raise comes as global VC fundraising slumped to a decade-low in 2025, with PitchBook data showing capital into new funds fell sharply even as deal activity rebounded.
Square Peg said strong backing from institutional investors and founders reflects its track record, as established firms continue to attract the bulk of commitments while smaller managers are squeezed out.
📈 Reserve Bank of Australia lifted the cash rate 25 basis points to 3.85%, marking its first hike since November 2023 as inflation re-accelerates. (Forbes, Reserve Bank Statement)
The RBA cited a broad-based pick-up in prices across housing, services and retail, now forecasting headline inflation to hit 4.2% by mid-2026. Stronger-than-expected private demand and tight labour markets pushed the bank to reassess its previously easing stance.
Ben Thompson, founder of Employment Hero, warned that higher rates will squeeze households and small businesses, with hiring already slowing across casual and younger workers.
🍖 There’s a new voluntary industry code that will rein in “meaty” marketing for plant-based meat, dairy and egg products, limiting animal imagery and the use of terms like “beef” and “chicken”. (SmartCompany)
The government stepped in after farming groups pushed back on labelling, despite research showing Australians can already distinguish plant-based products from real meat. Utility words like “sausage” and “patty” will likely remain allowed, but brands will be encouraged to make plant-based labelling clearer and more prominent. Which raises the fundamental question: what is a sausage?
A new complaints mechanism will allow consumers to flag confusing packaging, putting pressure on brands to comply even though the code is voluntary.
The brands most exposed to the new alternative protein marketing code include v2food, which leans heavily on meat-style naming and supermarket placement, and Sanitarium, a major force in plant-based dairy that will need clearer separation from traditional milk branding.
Startups like All G Foods may face tighter rules around “real dairy” style positioning, while cultured meat pioneer Vow will remain under close scrutiny for its meat-like alternatives.
🏗️ Firmus Technologies secured a $100 million equity injection from Maas Group, taking total funding past $800 million as it accelerates its AI data-centre build-out. (InnovationAus)
Maas funded the deal using proceeds from selling its construction materials arm to Heidelberg Materials for $1.7 billion, pivoting aggressively into AI infrastructure. The raise values Firmus sharply higher and backs its massive Project Southgate, a network of “AI factories” built with Nvidia superchips to deliver 1.6GW of sovereign AI compute by 2028.
Firmus has already committed $300m+ into Australian AI supply chains, aiming to manufacture cooling, power and systems locally and reduce reliance on global infrastructure bottlenecks.
The market didn’t like it, with the ASX-listed Maas shares tanking 16% after $1.7b construction sale and investment.
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⚡ Startup Retro ⚡
Diraq lands $20M from NRF to develop quantum computers on silicon chips
Founder: Andrew Dzurak
Sydney-based quantum computing startup Diraq has secured a $20 million equity investment from the federal government’s National Reconstruction Fund, as Canberra doubles down on building a domestic quantum industry.
Spun out of the University of New South Wales, Diraq is developing quantum computers using modified semiconductor chips — an approach it says could dramatically reduce the size and cost of today’s hardware-heavy systems. The NRF funding will support local manufacturing and help scale commercial operations in Australia.
The investment follows major government-backed bets on quantum players, including PsiQuantum and Quantum Brilliance, as Australia positions itself as a global hub for the technology.
Founded in 2022 by physicist Andrew Dzurak, Diraq has now raised more than $100 million and employs around 60 people. The company plans to launch its first quantum computing product in early 2029, with assembly based in Sydney.
Quantum systems promise breakthroughs across drug discovery, materials science, finance and engineering — tackling calculations that would take classical supercomputers years to complete. A CSIRO report estimates the sector could generate nearly $6 billion for Australia by 2045, turning today’s deep tech bets into a major future industry.
Due Diligence: Smart Company
Cortisonic makes waves from stealth with sound based computer processor
Founder: Dr Glen Harris and Dr Christopher Baker
Brisbane deep-tech startup Cortisonic has emerged from stealth with a new class of processor that computes using sound waves instead of electricity, potentially unlocking low-power AI processing.
Founded by physicists Glen Harris and Christopher Baker, the company spun out of research at the University of Queensland, where the team discovered they could engineer nanoscale acoustic waves — known as phonons — to perform computation using standard semiconductor manufacturing. The result is what Cortisonic calls Sonic Processing Units (SPUs): chips designed for ultra-low-power, real-time inference.
The startup is targeting the fast-growing edge AI market, which powers autonomous drones, wearables, smart cameras and self-driving systems — environments where energy efficiency matters more than raw GPU performance.
Cortisonic has attracted backing from Main Sequence, alongside commercialisation support from UniQuest and a strategic partnership with Lockheed Martin. Lockheed Martin has also joined a $3.2 million program with the Australian Department of Defence to validate the technology.
Rather than replacing existing chips, Cortisonic views phononic computing as a new tool in the semiconductor stack, alongside electrons and photons, enabling AI hardware to operate at dramatically lower power.
Due Diligence: Forbes, The Australian Investment Notes: Main Sequence Ventures
CorePlan digs up $5M to scale cloud-based drilling and mining workflow platform
Founder: Alex Goulios
Western Australian mining software startup CorePlan has raised a $5 million follow-on round led by existing investor EVP, as it scales globally and deepens its product across drilling and geology workflows.
Founded by Alex Goulios, CorePlan is building a system of record for exploration and mining operations. They’re connecting contractors and geology teams across planning, production, compliance and invoicing in an industry still dominated by spreadsheets and fragmented tools. The company says rising gold prices, demand for critical minerals, and geopolitically driven supply chain pressures have fuelled a surge in exploration activity, accelerating customer adoption.
CorePlan replaces fragmented spreadsheets and paper-based processes with a single digital system that standardises and centralises drilling data across teams and contractors. CorePlan lets users plan and track drill programs from initial design through to completion, monitor real-time progress and costs, manage contractor performance and reconcile invoices, all from one dashboard. The platform includes tools for capturing daily drilling reports (“plods”), approving field data, tracking budgets versus actual spend and generating analytics and custom reports that help teams make data-driven decisions.
CorePlan is now used by more than 600 companies and 9,000 users, with around 300 new users joining each month. Customers include major miners such as BHP, Fortescue, AngloGold Ashanti and Rio Tinto. The platform has processed more than $6 billion in drilling and mining work to date.
The fresh capital will go towards expanding CorePlan’s global team, strengthening its presence in the Americas, scaling regional support and broadening product capabilities. EVP said the follow-on investment reflects strong execution, enterprise adoption and CorePlan’s position as a category-defining platform for modern mining operations.
Due Diligence: Startup Daily
GrazeMate grabs $1.2M pre-seed for autonomous cattle mustering drone technology
Founder: Sam Rogers
Queensland-based agtech GrazeMate has raised $1.2 million in a pre-seed round led by Y Combinator, with backing from Antler and NextGen Ventures.
Founded by 19-year-old Queensland cattle farmer turned machine learning researcher Sam Rogers, GrazeMate uses autonomous drones powered by proprietary reinforcement learning models to muster cattle without human intervention. The system mimics traditional stockmanship techniques, responding to animal behaviour in real time to guide herds between paddocks — work that has historically required helicopters, motorbikes and long hours in the field.
Rogers, who began publishing robotics research as a teenager before dropping out of university to build the company, is now relocating to San Francisco for Y Combinator’s latest cohort, with ambitions to crack the US$120 billion livestock market starting in California.
GrazeMate is already mustering thousands of cattle each week across pilot farms covering more than 700,000 hectares in Queensland and NSW. Rogers estimates the technology can save farmers hundreds of hours per month and significantly cut operational costs.
Long-term, the startup plans to turn drones into daily farm intelligence tools, tracking pasture levels, animal weight and automating movement decisions, effectively bringing agentic AI into large-scale agriculture.
Due Diligence: Forbes, Startup Daily, AgFunder News
GrazeMate grabs $1.2M pre-seed for autonomous cattle mustering drone technology
Founder: Tim Morris
Proptech startup Agentsy has raised $700,000 in a pre-seed round led by Empress Capital, as it moves its AI platform from closed beta into a nationwide rollout for real estate agencies.
Built specifically for the Australian residential property market, the best residential property market in the world, Agentsy positions itself as a vertical AI platform designed around local legislation, property data and real estate workflows, rather than a generic AI tool retrofitted for the sector.
The company says administrative tasks can consume up to 60% of an agent’s time, and its software automates everything from email responses and compliance communications to marketing collateral. Over the past year, the platform has been tested with early design partners, including Jellis Craig, Laing+Simmons, OCRE and BresicWhitney, with agencies reporting improved productivity and reduced operational stress.
Founder Tim Morris says the focus has been on building AI that is immediately compliant and commercially useful within Australia’s regulatory environment. Empress Capital added that Agentsy’s proprietary workflows and industry-specific data create a defensible moat as vertical AI adoption accelerates.
Agentsy plans to rapidly onboard agencies across the country, targeting a fast-growing global AI real estate software market projected to exceed US$850 million by 2028.
Due Diligence: SmartCompany
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🧑🤝🧑 People Moves 🧑🤝🧑
🚪 Chris Kirk will step down as CEO of Stone & Chalk on April 10, ending a decade-long journey from founding team member to chief executive. (Overnight Success)
Kirk leaves after steering a major turnaround, stabilising the nonprofit following nearly $8.5 million in losses and restoring long-term financial sustainability. Under his leadership, Stone & Chalk strengthened government partnerships and now runs Sydney’s Tech Central Innovation Hub, alongside hubs in Melbourne and Adelaide. The organisation has supported more than 3,000 startups and helped founders raise over $4 billion in capital since launch.
A successor shortlist is already in place, with the Board expected to announce a new CEO in the coming months.
🫡 Brian Collins has been appointed CEO of Enterprize Tasmania, bringing more than a decade of global founder and fintech experience to the state’s ecosystem. (Startup Daily)
Collins is deputy chair of FinTech Australia, a longtime leader of Startupbootcamp’s fintech programs, and cofounder of venture fund Triple Bubble. The appointment coincides with Enterprize Tasmania’s 10-year milestone, as it looks to elevate the state’s startup scene to national and global prominence.
📆Notice Board 📆
📅 25 February | Melbourne: founders, operators and investors come together for a full day of practical, no-fluff insights at Growth Summit
Built for startups and SMEs who are scaling, raising, hiring and planning their next phase of growth. Hear directly from founders, investors and operators on what’s actually working across funding, tech, leadership and strategy right now with a headline keynote from Leigh Jasper (Aconex co-founder, Firmable founder, SecondQuarter Ventures chair).
Exclusive $50 ticket discount: use code PARTNEROS2026 at checkout or grab your ticket via this link!
🚜 The future of farming is here: evokeAG. 2026 lands in Melbourne (17–18 Feb) Asia-Pacific’s biggest agrifood innovation event is back with bold keynotes, uncomfortable conversations and live tech - including a remote driverless tractor demo from Ornata.
Big-name speakers from across ag, tech and VC, including Halter founder Craig Piggott, Astanor Ventures’ Harry Briggs and SwarmFarm CEO Andrew Bate.
50+ startups and scaleups from 8 countries showcasing everything from autonomous machinery and insect protein to soil intelligence and circular agtech.
🤝 Rampersands Giant Warm Intro is partnering with SOUTHSTART 2026 to run a 90-minute, in-person founder–investor matching session in Adelaide this March, focused on high-quality, curated connections.
Since 2019, GWI has facilitated 1,200+ meetings and supported over $10m in capital raised, using a peer-driven group format built around feedback and real outcomes. Open to SOUTHSTART attendees (17–19 March 2026), in-person only, with limited sponsored tickets available for early-stage founders. Apply here!
Would you like to promote an event or an opportunity? Enquire about a Notice Board promotion by replying to this email.
🧠 KaaS (Knowledge as a Service)
Will’s Pick 💁 Microsoft and Software Survival by Ben Thompson from Stratechery
There has been plenty of debate over the last few weeks about AI disrupting traditional software. Why would I buy an application when I can build that solution myself using AI? Jira can’t be that hard to make, surely!
Ben contends he’s bearish on AI replacing software. Most companies, especially outside pure tech, are built to focus on their core business, not to become software developers, which is why they’ve always paid specialist vendors, and AI won’t change that fundamental reality. Building an app is only the start, with endless commitments around maintenance, security, updates and evolving standards that sit far outside most organisations’ core competencies. And finally, software value isn’t just code… It’s support, compliance, integrations and a fully managed product, which is why businesses buy platforms rather than trying to run everything themselves.
Have we missed something? Got some feedback? We love emails, so send one over!
👔 Connect with me on LinkedIn: Overnight Success, Will Richards
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‘Til next time,
👋 Will