The Ignition Lane Wrap: Canva’s prime o’ the clouds, VCs battle to boost, returning Fyre

Cloud one hunnid. Bessemer Enterprise Companions, Salesforce Ventures and Forbes launched the eighth annual Cloud 100 record of the world’s greatest non-public cloud computing firms. At #4 Canva, which this month turned 10 and was revalued at a good $US25.5bn, was the one Australian firm to make the record.

Not surprisingly, the record has been overrun by the generative AI increase. OpenAI debuted at #1 – unprecedented within the record’s historical past. Databricks (#2) overtook Stripe (#3). And, in response to Bessemer information, 55% of the Cloud 100 are already incorporating generative AI into their merchandise.

Nevertheless, reflecting the final state of tech and enterprise worlds, range stays missing. Solely six firms on the Cloud 100 record have a lady CEO, down from eight final yr.

Security in numbers. Office security software program agency SafetyCulture raised $34m at a $2.7bn valuation, and confirmed it now has over 75,000 companies and greater than 1.5 million staff worldwide utilizing its merchandise. Income was up 32% within the final monetary yr to $132m. The elevate serves as a strong reminder from CEO Luke Anear that when you’re on the VC rollercoaster, it’s laborious to get off:

“I don’t suppose we had been ever totally off [venture capital money],” Mr Anear mentioned. “Making an attempt to wean what’s almost a $3 billion child off the milk takes time. However I believe you continually wish to assess what’s one of the best ways to construct the enterprise.”

Using excessive. What recession?! Carsales CEO Cameron McIntyre says enterprise is booming – “Shoppers are nonetheless searching for comparable worth automobiles to what they had been this time final yr.” The corporate reported a 43% enhance in adjusted revenue to $278m for the yr ended 30 June. Income rose 5% to $781m, with greater than half of that generated exterior of Australia. Shares are up 37% YTD.

Work it. Office-collaboration software program large Atlassian beat market expectations, with This autumn FY23 revenues of US$939.1m (up 24% YoY) and a internet lack of US$59.0m (down 54% YoY). It has round 262,000 clients. In contrast to Zoom and your entire company world, Atlassian is standing by its 2020-esq philosophy that “distributed groups are the way forward for work… The extra we lean in right here and prepared the ground, the deeper our aggressive benefit.”

Work laborious, play laborious. Regardless of being within the midst of defending worker allegations, ecommerce advertising tech agency Rokt is making ready to include as a US firm and pursue a 2024 Nasdaq itemizing. It was final valued at $3.5bn for a secondary share sale final December, led by Tiger World. TBD if that valuation will maintain up.

Exceeding expectations. LaunchVic and Deloitte report that Victoria has out-performed progress expectations. Since 2020, the worth of Victoria’s whole ecosystem has virtually doubled from $50bn to $91bn and the startup workforce quickly expanded from 37,000 to 52,000 FTE.

Gobble, Gobble. Liven, which gives restaurant loyalty reward and operations know-how, has acquired 4 tech firms for $152m: Abacus, a Melbourne-based supplier of POS techniques, on-line ordering and self-service kiosks; OrderUp, which lets venues supply smartphone desk ordering, on-line orders and lodge room service; Singapore-based meals procurement product Zeemart, and US-based fee and information startup Copper.

Liven additionally wins our “Awkward Turtle Article Title of the Yr” award:

(to be honest, the precise quote within the article says she has aspirations to be Perkins).

I bought 99 issues, and securing LPs is one

Money guidelines every part round me. VCs are popping out of the woodwork explaining how laborious it’s for them to boost funds as they battle in opposition to one another for a share of restricted associate (LP) wallets. With greater rates of interest, mushy M&A and capital markets, and investor cash locked up in present funds, capital isn’t as available because it as soon as was.

Traditionally, VCs would solely formally announce a brand new fund as soon as the complete fund goal had been raised, however now “first shut” and “coming quickly” bulletins are widespread. This month, Primary Sequence introduced a AU$450m first shut of its third fund, Doable Ventures is approaching a primary shut on a brand new €60m (AU$101m) early-stage fund (we count on this may shut given managing associate Chris Hitchen’s observe document), and Facet Stage Ventures raised the primary $15m of a brand new $30m early-stage fund.

Associated: good piece by Hunter Stroll on why many VCs have extra ache coming.

Began from the underside. One VC that seems to be flying pretty unscathed by way of this time is Blackbird, which has loads of money within the coffers after elevating $1bn in late 2022 (which additionally means it in all probability didn’t deploy insane quantities of cash into the 2021 craze), and respectable secondary gross sales underway – together with a contemporary $150m from promoting down a tiny share of its stake in Canva, with extra prone to come from SafetyCulture within the subsequent yr.

Founding Companion Niki Scevak is assured we’ve discovered the underside of the VC market – an commentary that TechBoard’s new report helps.

Blackbird has been busy doing offers, together with NZ-based Kiki (invite-only peer-to-peer subletting platform), Cyble (unified platform for cybersecurity) and Marqo (an open supply vector search engine for AI purposes).

Who run the world? Flying Fox Ventures and Leap Begin Studio have every acquired $300,000 in funding by way of LaunchVic to run applications that supply ladies startup founders recommendation, assist and networks required to construct an MVP and discover their first buyer.

AgTech cash timber. LaunchVic additionally introduced the Hugh Victor McKay Fund, a brand new sidecar fund for Victorian AgTech startups. The fund was named in honour of the inventor who patented the mix harvester within the Eighteen Eighties. LaunchVic will co-invest with non-public traders, who match the federal government contribution by a minimal of two:1. There may be additionally an equity-free $50,000 grant out there to aspiring agtech founders.

Mo cash, mo issues. The AFR slammed crowdfunding platforms like Birchal and Equitise for enabling firms to boost at lofty valuations:

These with no less than $100,000 in annualised income, lots of which promote client items and generate heavy losses, raised at a median valuation greater than 23 occasions their earnings.

I bought 99 pitches, however funding ain’t gained

Silicon Quantum Computing (SQC) raised $50m after getting down to elevate $130m. SQC has developed the world’s first built-in circuit manufactured on the atomic scale. The circuit, which operates as an analogue quantum processor, offers SQC the flexibility assemble quantum fashions for a spread of recent supplies, together with prescription drugs, supplies for batteries, and catalysts. SQC can be growing a full stack quantum pc.

Haventec, which developed tech to cease digital identities (usernames and passwords) and information from being stolen and was as soon as valued at $50m, has shut down after failing to boost additional capital.

Melbourne meals waste recycling startup Bardee minimize most of its workforce (round 30 individuals, who’re ready for excellent funds), because it struggles to boost extra capital. Bardee has been plagued with a number of challenges, together with a office demise, and exec upheaval following a dispute with the founders (which can be reported to have prompted lead investor Blackbird to stop the board, simply months after investing in early 2022). Rival Goterra lately raised $10m in a bridging spherical.

Useful information from Carta on dilution at every stage of a enterprise spherical. Notice, this information is from 1,229 main rounds raised on Carta in 2023 and is US solely (though we’d suspect ANZ to be comparable).

I bought 99 scams, however the reality ain’t one

All that glitters is just not code. Advertising “AI” Metigy execs fronted as much as Federal Court docket this month, revealing that CEO David Fairfull lured over $20m funding with exaggerated AI know-how claims, inflated buyer counts and manipulated monetary forecasts.

“Did you ever present false financial institution statements, that’s fraudulently ready financial institution statements, to anybody?” Condon requested.

“Sure,” Fairfull responded, asserting authorized privilege earlier than every reply in order that his phrases couldn’t be used in opposition to him in authorized proceedings.

The corporate’s collapse reveals the darker facet of the funding frenzy in the course of the low-interest charge, speedy due diligence period.

Regulators. ASIC is in sizzling water with the Senate over its dealing with of investigations, together with into alleged insider buying and selling at forensic information analytics firm, Nuix. ASIC investigated Nuix CFO Stephen Doyle and brother, Ross Doyle, over the sale of $18m shares… proper earlier than the 2021 half-year outcomes triggered a crash within the inventory value. In 2022, ASIC discovered “no proof” that Ross knew in regards to the outcomes previous to their launch, and dropped the case.

In the meantime, a former Nuix VP (who was by no means interviewed by ASIC) has since divulged that, on the time of the share sale, Ross Doyle: (1) was understanding of the Nuix workplace – swipe card entry and all, (2) was “seen in finance workers conferences,” (3) was dwelling along with his bro, the CFO, and (4) was “having a private relationship with one in every of Stephen Doyle’s direct stories.”

p.s. Fyre pageant is again.

Step proper up – Free issues

We’re persevering with our FREE Ignition Lane workplace hours in September. Founders, operators, traders – ask us your greatest questions on progress, fundraising, M&A, product or individuals.

SafeStack launched OneHourAppSec, a free utility safety program that will help you construct safety into your purposes and SDLC in only one hour per dash.

Purposes for Blackbird’s ANZ researcher mentor program Foundry closes on 8 Sept.

That’s a wrap! We hope you loved it.

Bex, Gavin and the workforce at Ignition Lane