Breakthrough Victoria has invested $5 million in Conflux Technology, a Gelong-based startup 3D printing heat exchangers for the aerospace, defence and automotive industries.
The investment, part of a wider $11 million Series B funding round announced on Tuesday, will see the Gelong-based company take on 39 new full-time staff as it pushes ahead in a US$17.7 billion market.
Existing Conflux investors Acorn Capital, a Victorian investment firm focused on emerging and microcap companies, and specialist German 3D printing venture capital firm AM Ventures also took part in the round.
Founded in 2015, the Geelong-based company specialises in high performance heat exchangers that are far more efficient than their predecessors, employing advanced manufacturing techniques to lower production costs.
It was set up by founder and chief executive Michael Fuller, who spent 15 years working as an engineer in F1 motorsport, designing championship-winning Formula One, World Rally and Le Mans prototype race cars.
Conflux Technology now services the aerospace, automotive, electronics and advanced machinery industries, and last month won an award at the 2024 Governor of Victoria Export Awards.
The company plans to use the Series A investment to accelerate the development of its “revolutionary heat exchanger technology”, while creating 39 local jobs in regional Victoria.
“This investment is a crucial step forward in our mission to drive efficiency and innovation in the industry, while continuing to support our local community,” Mr Fuller said in a statement.
The Conflux investment is Breakthrough Victoria’s fifth this financial year and comes as its inaugural chief executive, Grant Dooley, prepares to step down after criticism of the agency’s transparency and high running costs.
Other investments include semiconductor company Millibeam ($3 million), augmented reality company JigSpace ($4.4m), AgTech startup Number 8 Bio ($1.7m) and FoodTech startup Viridian Renewable Technology ($2.5m).
All five companies are Australian-based, and three – JigSpace, Viridian and Conflux – already have operations in Victoria, ending a run of large investments to bring overseas companies last year.
Breakthrough Victoria’s largest investment to date in US-based high-altitude balloon company World View landed the state-backed VC in hot water, with independent auditors reportedly expressing doubt about the startup’s financial viability before the deal.
Mr Dooley said investing in the Conflux signifies Breakthrough Victoria’s “commitment to sustainable innovation and efficiency” while creating “more jobs for people living in regional Victoria” .
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