Five Aussie startups and firms receiving major cash injections despite the tech downfall

It’s been a tough road for tech startups, with the financial boosts of the pandemic now wearing thin. Many have had to cut stuff, scale back operations and even close completely in what is becoming known as the worldwide tech downfall.

But despite the many unfortunate cases, it turns out there is still cash around — and there’s a handful of Aussie startups and firms that are getting their hands on it.

Here are five Aussie startups and firms that have raised capital and received other financial boosts in the last week.

Behaviol, $3.2 million

Co-founded by cricket star Kumar Sangakkara, Behaviol has raised US$2.5 million ($3.2 million) in seed funding to form a sporting metaverse.

Based in Sydney, the startup will allow players to buy and train virtual sports stars using artificial intelligence technology.

The startups’s first game, Meta11, is a virtual cricket game where Behaviol users can acquire, train and improve their players.

The $3.2 million raise — led by Singapore-based investment firm Hangar X — will be allocated towards the launch of more games globally.

LUMOS, $800,000

Last Tuesday, marketing technology startup LUMOS raised $800,000 in an oversubscribed pre-seed funding round — the same week it made the shortlist for the Pitch.

Founded in 2020 and having launched its MVP in early 2022, LUMOS aims to disrupt and democratise the $40 billion global out-of-home and digital retargeting ad market, poising itself as the “world’s first MarTech platform”.

It will leverage the network of gig economy riders with its mobile IoT-enabled digital billboard backpacks, allowing brands to deliver physical ads and utilise device tracking.

In a press statement, LUMOS chief executive and co-founder Eric Fan said the team is “so pleased by the overwhelming support that we’ve received from our investors”, which includes Claremont Capital and Dorcas Capital along with angel investors Hugo de Jong, Barry Winata and more.

Zipr, $100,000 AWS Activate credits

While not a capital raise per say, fashion startup Zipr did receive a major leg up last week when it won the Pitch.

As the grand prize winner of the evening, Zipr received $100,000 in AWS Activate credits as well as one-on-one support sessions with Pin Payments.

Zipr is a video-first fashion app that will allow brands and users to sell their clothing, while targeting the correct consumers.

It will echo the kinds of content taking over TikTok, founder — and former Canva product designer — Amber Linz explained in her pitch, by offering Australia’s fashion-forward buyers a new way to engage in the secondhand economy.

Speaking with SmartCompany after being awarded the grand prize, Linz said it’s “absolutely amazing” to be crowned the winner against such promising competition, and to receive the AWS credits.

“It’s really going to help us scale up our business, and we’re definitely going to use the video capabilities and the AI capabilities in the future,” she said.

Envirma, $3 million

Envirma Technologies has raised $3 million, which it will put towards doubling its headcount and growing the capabilities of its medtech platform.

The startup aims to ease the various pain points faced when establishing and operating a clinical trial, offering an end-to-end solution that will allow patients and doctors to easily register their interest using digital phenotypes and workflow automation.

On the other side, sponsors and researchers can register their study, and then access qualified participates for their trial by leveraging the operational data on Envirma.

Envirma’s funding round marks the first investment from Artesian’s new Female Leaders VC Fund.

OIF Ventures, $140 million

The Sydney VC firm has received a major cash injection, with investors pouring in another $140 million for OIF Ventures third fund.

A majority of the capital came from existing investors in OIF Ventures’ previous two funds, as well as Andrew Barnes, the co-founder of edutech unicorn Go1.

Investors had reportedly only planned to inject another $100 million, with the extra $40 million undoubtedly being welcomed by the firm considering Australian VC investment for August was down nearly 50% compared to 12 months ago.

But OIF Ventures partner Laurence Schwartz isn’t worried about the tech downturn.

“When you look back on venture capital firm vintages post the dot com crash and the GFC, some of the most successful businesses and venture funds were launched in those periods,” Schwartz said.