The Queensland government’s initial investment in Brisbane-based tech scale-up RedEye has proven to be such a success it has gone back for seconds, participating in the company’s Series B funding round which raised $10.4 million.
The new round was led by US-based investor Energy Innovation Capital and saw a total of seven public and private investors take part, including the Queensland government’s Business Development Fund (BDF) for an undisclosed amount. This is the second time the BDF has contributed funding into RedEye.
The BDF is an $80million state government venture capital fund that was setup as part of the Advance Queensland program to help startups raise their profile and attract capital. Eligible businesses can receive funding of between $125,000 and $2.5 million.
RedEye co-founder and chief executive Wayne Gerard said it was a conscious decision to seek out an international investor to lead the Series B round, believing it was an opportunity to attract more VCs into Queensland.
“Right now, I’m seeing a number of investors in the US who are very keen to look at Queensland startups,” he said.
“The Queensland Business Development Fund is playing an incredible role in attracting international investment and talent to look at Queensland as a destination for accessing great technology and innovation, as well as relevant technology in different segments compared to the Melbourne and Sydney startups scenes.”
Eden Lawrence from Queensland Investment Corporation, which runs the BDF on behalf of the Queensland government said: “RedEye is a true Queensland success story, their solutions are used by many of world’s leading utilities, mining companies and infrastructure assets.
“They have created over 60 jobs in Queensland and there is lots of opportunity for further growth. We’re excited to have helped RedEye attract EIC to invest in Queensland.”
Mr Gerard said the company had no plan to move its global headquarters offshore.
“Brisbane is RedEye’s global headquarters. We will be a Queensland-based company and we plan to stay a Queensland-based company,” Mr Gerard said.
“It’s really important to me that we’re creating jobs in Queensland, and the fact that you can create a global startup from Queensland,” he said.
The new funding would be used to scale the business globally, including opening a country headquarters in New Zealand early next year, and offices in Denver and Houston in the US.
RedEye established its US headquarters in Las Vegas in January last year, and also has an office in the Philippines.