VCs invest $15m in Australian space, IoT start-up

Other backers included Singapore’s Singtel Innov8, Australia’s Right Click Capital, and Boeing HorizonX Ventures, whose participation represented its first deal outside of the US. It is being touted as the largest funding round to date globally for a start-up developing space-related IoT technology.

“The internet of things has a major connectivity problem: hundreds of millions of devices that need to communicate but don’t have cost-effective, battery friendly networks to do so. Myriota solves this problem,” Alex Grant, CEO of Myriota, said in a statement. “The fact we have managed to engage such a stellar list of investors doesn’t just underline the quality of our tech and IP – it also gives us access to highly strategic resources and capabilities as we move to the next level.”

Myriota was founded in 2015 as a spin-out from the University of South Australia with a view to enable large-scale, low-cost communications for IoT devices anywhere in the world through technologies it describes as “direct-to-orbit.” Products under development include flight recorder-style devices to be used by the Australian military as well as water tank monitors for the agricultural industry.

The fresh capital will be used to advance satellite launches, delivery of IoT system deployments, and the opening of new offices in Asia and North America. The company expects to add at least 50 new employees, primarily at its Australian headquarters. Earlier this year, it announced plans to open a $2 million IoT innovation lab in Adelaide.

Venture investment in space technology has been underpinned by overlapping trends of the traditional industry’s privatization and the proliferation of business models related to big data computing. Recent activity in Australia’s space-based IoT segment includes a A$5 million ($3.8 million) Series A for Fleet, a microsatellite developer focused on supporting industrial sectors through low-orbit communications.

Main Sequence Ventures is the operational name for the Australian government’s CSIRO Innovation Fund, which leverages the technical knowhow of the Commonwealth Scientific & Industrial Research Organization (CSIRO). The fund is anchored by A$100 million in government contributions and is targeting a corpus of A$200 million.

Blue Sky Venture Capital is a division of Sydney-listed private equity firm Blue Sky Alternative Investments. In early 2016, the VC arm closed a A$200 million fund targeting a range of technology segments with a preference for later-stage and expansion deals. Blue Sky previously raised A$10 million and A$30 million venture funds in 2012 and 2014, respectively.

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• Topics
• Australasia
• Infrastructure
• Technology
• Early-stage
• Australia
• Blue Sky Private Equity
• SingTel Innov8
• Venture
• TMT