Australian edtech and AI startups secure over $43 million as funding rebounds

Australian Startups Secure Major Funding Across EdTech, AI, Finance, and Medical Innovation

Australia’s startup ecosystem continues to demonstrate remarkable resilience and growth, with multiple companies announcing significant funding rounds across education technology, insurance AI, financial automation, and medical innovation. Despite global funding slowdowns in certain sectors, Australian startups raised over $1 billion in Q3 2025, spanning 85 venture rounds and 31 accelerator programs.

🎓 EdTech Innovation: Teacher’s Buddy Raises $1.85M to Combat Teacher Burnout

EdTech startup Teacher’s Buddy has secured $1.85 million in seed funding to address the global teacher burnout crisis.
The round was led by Giant Leap, with participation from Flying Fox Ventures, Co Ventures, Exhort Ventures, Saniel Ventures, and Soul Capital.

Founded in 2024 by Matt Abraham and Ben Sze, Teacher’s Buddy aims to transform the teaching experience by:

• Reducing administrative workload

• Supporting continuous professional development

• Using data-driven insights to improve student learning outcomes

This investment aligns with the broader edtech momentum, as 2024 saw a 24.5% increase in global EdTech funding compared to 2023, driven by demand in the Future of Work and Lifelong Learning categories.

🤖 AI in Insurance: Pibit AI Secures $7M to Reinvent Underwriting

Insurance underwriting startup Pibit AI has raised $7 million in Series A funding to advance its Centralised Underwriting Risk Environment (CURE™) and accelerate adoption across the insurance industry.

The round was led by Stellaris Venture Partners, with additional backing from Y Combinator and Arali Ventures.

Pibit AI’s vision is to rebuild underwriting from the foundation up—making the process faster, more accurate, and more trustworthy through AI-driven risk evaluation.

💼 FinTech Automation: Stuut Technologies Raises $29.5M Series A

Stuut Technologies, the first AI platform designed to automate end-to-end accounts receivable operations, announced $29.5 million in Series A funding.

The round was led by Andreessen Horowitz, with participation from:

1. Activant Capital

2. Khosla Ventures

3. 1984.vc

4. Page One Ventures

5. Vesey Ventures

6. Carya Venture Partners

Seema Amble (a16z) and Steve Sarracino (Activant Capital) will join Stuut’s board.

Funding will accelerate product development and expand Stuut’s autonomous AR capabilities across six core financial workflows:

1. Collections

2. Payments

3. Cash Application

4. Deductions

5. Credits

6. Disputes

This positions Stuut as a transformative force for mid-market and enterprise finance teams.

🩺 Medical Innovation: $5M Awarded to Western Australian Health Startups

Nearly $5 million has been awarded to 12 Western Australian innovators and startups working on breakthroughs across medical research and health technology.

Funded through the Innovation Seed Fund 2024–25 Program, the selected projects include:

• Early detection tests for liver cancer

• Advanced heart monitoring technologies

• Novel diagnostics for endometriosis

• New asthma treatment solutions

Many of the awarded teams come from Western Australia’s universities and academic research community.

🇦🇺 A Strong Quarter for Australian Innovation

The recent funding rounds underscore Australia’s strength across diverse innovation sectors — from AI-powered finance and insurance solutions to impactful medical technologies and next-generation education tools.

With $1 billion raised in Q3 2025, the Australian startup ecosystem continues to thrive and expand, proving its resilience amid global market contractions.