Australia’s startup ecosystem is gearing up for a strong 2025, fuelled by a surge of new capital driving innovation across diverse sectors.
Climate Tech Startup Phnxx secures $1.8 million seed
Victorian climate tech startup Phnxx has raised $1.8 million in Seed funding to scale its modular energy system for the construction, mining, and agriculture sectors. The round was supported by ASX-listed engineering company Synertec, ENGIE Factory, deep tech VC Pacific Channel, LaunchVic’s Hugh Victor McKay Fund, and several angel investors.
Synertec, in partnership with the Melbourne-based startup, will enhance sales efforts and expand the market reach of the 29-year-old Victorian engineering company. Phnxx, founded in 2022 by Joel Tay (CEO), Wei Chi Lee, and Benjamin Lamb, is focusing on its Asian rollout and the significant climate impact it aims to achieve.
Defence startup Arkeus raises $5 million
Arkeus, a defence technology startup specialising in analysing visual surveillance systems from drones and optical systems, has secured $5 million in additional funding from its existing investors.
Following a $4.5 million Seed round in December 2023, Main Sequence, Salus, and Beaten Zone Venture Partners have continued their support. Founded in 2020 by defence expert Simon Olsen and aerospace engineer Dr Jonathan Nebauer, Arkeus is enhancing its technology for defence surveillance applications.
BetterFleet drives forward with $24 million series A
US-based BetterFleet, a former Australian transport management scaleup, has raised US$15 million (A$23.7m) in a Series A funding round. The investment was led by US-based funds Aligned Climate Capital, Ecosystem Integrity Fund (EIF), and Remarkable Ventures Climate (RVC).
Originally founded in Sydney as EVenergi in 2016, BetterFleet provides software solutions for managing electric bus fleets and now has over 200 customers across Europe, Asia-Pacific, and North America. The company, which rebranded in 2021, also serves 80 customers in Australia.
King River Capital raising $157 million
King River Capital is finalising a US$100 million fund aimed at backing AI-driven startups, with a goal of raising A$157 million for its sixth venture fund. The Sydney-based VC, which has offices in New York and Denver, is focusing on software startups that leverage AI.
Investors include UNSW Chancellor David Gonski, fintech Future Super, the Fairfax family office, Marinya Capital, and the Smorgon family. Since its founding in 2019 by Chris Barter, Zeb Rice, and Megan Guy, King River has raised several funds, including for digital assets and web3-focused ventures.
BetterX raises $2.3 million in pre-series A round
BetterX, a B2B platform for financial advisers to manage and trade digital assets for clients, has raised $2.3 million in a pre-Series A round. The platform offers institutional-grade infrastructure for tokenisation, trading, and portfolio management.
Existing investors Aura Group and Tibra cofounder Kinsey Cotton were joined by new backers including Grand Prix Capital, Aument Capital, and angels Sabrina Tachdjian (HBAR Foundation) and Riaz Mehta (Crypto Knights). The round also saw participation from ASX-listed Scalare Partners, Wholesale Investor, B7 Capital, and Audacy Ventures founder.
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Australia’s startup ecosystem is gearing up for a strong 2025, fuelled by a surge of new capital driving innovation across diverse sectors. Weekly Funding Roundup, Funding Dynamic Business
