The Capital Bite

Australian data centre operators have raised a record A$35 billion in funding this year to support the growing demand for artificial intelligence infrastructure, surpassing the total of A$24 billion secured across all of 2025 and representing a 46% increase with more than three months of the year still remaining. Much of this expansion is being financed through borrowing, with debt accounting for around 85% of funding raised by Australian data centre operators this year. The Reserve Bank of Australia has identified data centres as one of the main forces behind the recent surge in Australian business investment, which increased 10.4% over the year to the March quarter.

Aussie brain-tech startup's bet to restore people's voice

A year after receiving $32 million from the federal government's National Reconstruction Fund (NRFC) to keep its operations in Australia, health AI startup Harrison.ai has laid off Australian staff and pivoted to a US-based business model, hiring American clinicians to use its technology. The company, which was valued at close to $400 million last year, is shifting to a new teleradiology service called Frontier Radiology, where doctors will be paid to use its AI tools. This move has prompted concerns about potential conflict-of-interests affecting patient care and raised questions about the government's investment in the company.

Australia's venture capital industry has long been dominated by men, but as more women enter the field, the types of startups receiving investment are slowly changing. Women are increasingly becoming involved in startup investment, bringing a new perspective to the industry. This shift is having an impact on the kind of startups that are getting funded, with a greater focus on innovative and diverse ideas.

The Commonwealth Bank has provided significant backing to Perth-based energy startup, investing in the company's digital platform without a lock-in contract.

Airtree Ventures' first fund has been extended by at least 12 months to July 2028 after investors voted in favor of the move, protecting the firm's holdings in companies like Canva. The extension imposes a definitive end date on the fund, requiring Airtree to exit its investments within 22 months. This decision comes despite some limited partners being unhappy with the firm's refusal to return their money after more than 12 years. Airtree had been battling a revolt among investors who wanted their funds returned. The extension is seen as a win for Airtree, allowing it to maintain control over its portfolio companies.

Australia's iron ore exports are valued at approximately $130 billion in 2025, generating around 440,000 jobs and $25 billion in annual tax revenues through the 'multiplier effects' of this industry.

A Sydney-based firm specializing in anti-fraud and scam-fighting services has raised AU$11 million to expand its operations into the US market, marking a significant expansion of its business beyond Australia.

Airtree Ventures' first fund, raised in 2014 by co-founders Daniel Petre and Craig Blair, has struggled to return enough capital from its early investment in Canva, which was valued at $60 billion but revalued at $48.5 billion due to concerns about artificial intelligence's impact on the business. This has led to a rift between Airtree and some of its longest-standing investors over plans to extend the life of the fund. The investors are reportedly losing patience with Airtree's inability to return sufficient capital, which is causing tension within the venture capital giant.

Blackbird Ventures is considering options to cash out early stakes in Canva and other standout investments that have remained private for longer than expected. The move could see Blackbird's stake in Canva, valued at $US30 billion ($42 billion), sold into new continuation funds so that it can offer investors the opportunity to take profits. This comes as rival Airtree Ventures faces pressure from long-standing investors to return more profits. Blackbird is considering this option for its 2015 and 2018 follow-on funds, which hold stakes in Canva. The decision could impact investors who have held onto these stakes for longer than anticipated.

Blackbird Ventures has closed its sixth venture fund at $1.05 billion, the largest venture capital fundraise on record in Australia and New Zealand. The firm's new fund includes backing from global investors such as Adams Street Partners, Morgan Stanley Investment Management, and Schroders. Blackbird has now invested more than $3 billion across 190 companies, with its portfolio valued at over $12.5 billion. The firm has returned more than $2.25 billion to investors at a net internal rate of return of 32%. Blackbird's strategy remains focused on investing in early-stage startups, with 96% of initial investments from its previous fund made at pre-seed or seed.

Morgan Stanley and Schroders have invested in Blackbird Ventures' new $1 billion venture fund, following the trend of Australian firms seeking to diversify their capital base and gain a foothold in the US market to attract global founders. This move comes after Airtree Ventures attracted similar investors last year for its $650 million fifth fund. The investments from international institutional investors indicate growing interest in Australian venture capital groups. Blackbird Ventures is Australia's biggest venture capital group, with the new fund expected to provide significant backing for startups and entrepreneurs. The influx of foreign investment may also pave the way for more global founders to consider partnering with Australian firms.

Marine startup Vessev has secured $27 million in a Series A funding round led by Blackbird Ventures to scale its operations across Australia and the United States. The funding will be used to increase production of Vessev's electric hydrofoiling vessels, expand its global go-to-market team, and further develop its onboard software and telemetry platform. Existing investors K1W1, Icehouse Ventures, Shasta Ventures, and NZVC also participated in the round, alongside new investors GD1 and Rypples. Vessev has commercial agreements to deliver multiple VS–12 vessels to Sydney as part of a planned water transport network on Sydney Harbour, with its VS–9 vessels expected to begin operating on Perth's Swan River in 2027.

Airtree Ventures has warned its portfolio companies that they will be sold if they fail to adapt to the disruption caused by artificial intelligence (AI). The venture capital firm issued this warning in an update to investors earlier this year, stating that it would be remiss to pretend AI is not hurting older start-ups. Airtree Ventures has a vast portfolio of companies and considers AI a significant threat to their businesses. The warning highlights the growing concern among investors about the impact of AI on traditional business models. Start-ups are being put on notice to demonstrate their ability to withstand the disruption caused by AI or risk being sold.

Blackbird Ventures has closed its sixth fund with over $1 billion in commitments, surpassing its previous record for the largest VC raise in Australian history. The fundraising process began early last year and was led by law firm Gilbert + Tobin. Blackbird's latest investor data records $1.032 billion of committed capital for its 2022 funds. The sixth vintage aimed to raise $1.2 billion, which would have broken Blackbird's previous record. With this final close, Blackbird is now within reach of breaking its own Australian fundraising record.

Blackbird Ventures and Airtree, two of Canva's earliest backers, have marked down the company's valuation by 17% to USD34.9 billion after commissioning independent external assessments. This move comes as offshore venture capitalists question whether Canva could be worth as little as USD12 billion. The Australian Financial Review reported that Blackbird and Airtree had made this adjustment, while Canva itself has also adjusted its employee share issuance valuation from USD38.9 billion to USD31 billion over the past year.

A near-miss incident occurred at Sydney Airport, raising safety concerns. The incident, which did not involve Sarah Ferguson or Jacob Greber, was reported on the ABC's current affairs program '7.30'. The program is broadcast live from Monday to Thursday at 7:30pm AEST. '7.30' delivers agenda-setting public affairs journalism and interviews that hold the powerful to account.

Airtree Ventures has sold its minority stake in DroneDeploy, a US software unicorn valued at $US845 million ($1.2 billion), after eight years, more than doubling its initial investment and providing returns to some of its earliest investors. This sale comes as venture capital firms face pressure from investors to deliver faster returns due to the sluggish initial public offering market.