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Brisbane-based robotics and spatial computing company Emesent has secured $10 million in venture debt from the National Reconstruction Fund Corporation (NRFC), marking the federal investment body's first foray into venture debt financing.
The venture debt complements a recently completed $15 million SAFE Note funding round backed by investors including Main Sequence Ventures, QIC, NGS, Hostplus, and Orion Resource Partners.
The funds will support Emesent in scaling its manufacturing operations, advancing its artificial intelligence and autonomy capabilities, and expanding its workforce, with 21 new roles expected to be created in Australia.
Founded in 2018 as a spin-out from CSIRO's Data61 research division, Emesent developed Hovermap, a mobile scanning and mapping technology that uses LiDAR sensors and autonomous drones to capture 3D data in hazardous and GPS-denied environments such as underground mines, tunnels, and confined infrastructure.
The technology has been deployed across more than 200 mine sites globally, with customers including Rio Tinto, BHP and Glencore.
The US Army in April selected Hovermap among six winners for its Soldier Readiness Enhancement program.
NRFC CEO David Gall says the NRFC investment reflects the fund's mandate to commercialise Australian intellectual property and build sovereign capability in advanced manufacturing.
“Robotics and spatial computing are emerging segments of the Australian economy, and NRFC investment will help to diversify the economy and create highly skilled jobs by anchoring these nascent industries right here in Australia,” says Gall.
“By keeping the Emesent’s advanced manufacturing capabilities in Australia, NRFC investment will help to build resilient supply chains while strengthening Australia’s sovereign capability in key sectors like advanced robotics and autonomous systems."
The NRFC, which has $15 billion to deploy across seven priority areas including advanced manufacturing and the enabling capabilities sector, describes the deal as an opportunity to fill a gap in Australia's capital markets for flexible growth-stage funding.
Emesent CEO Charles Miller says the funding will allow the company to accelerate its product development and expand its manufacturing footprint in Australia.
“Our clients operate in some of the most demanding environments on the planet, and they rely on our technology to make those environments understood," he says.
"NRFC's support means we can scale our manufacturing, push our AI and autonomy capabilities further, and deepen our presence in the sectors that matter most to Australia's future, including mining, defence and critical infrastructure.
"We're proud to be building this from Queensland, Australia."
NRFC chief investment officer Dr Mary Manning sees venture debt as a tool the fund could use to support companies that had proven their technology but needed capital to scale without excessive equity dilution.
“Emesent represents the NRFC’s first foray into providing venture debt and we are pleased to be able to provide the company with the flexible, non-dilutive capital that it needs to scale up its operations,” says Manning.
“The NRFC plays a critical role in enabling Australian companies like Emesent to scale globally, including into defence and other high-value sectors.
"Our ability to invest across the capital stack means that we are uniquely positioned to step in and fill a market gap for early-stage companies that have proven product-market fit and now require flexible growth capital.”
Emesent, which currently employs 109 people, began accelerating its growth trajectory following an oversubscribed $32 million Series A funding round in 2022 that was led by Australian investment firm Perennial Partners alongside international funders Tiger Global and TELUS Ventures.
Emesent co-founder Dr Stefan Hrabar, who led the company as CEO through its Series A raise, now serves as chief strategy officer.
The NRFC investment follows a string of advanced manufacturing deals from the government-backed fund, including a $28.45 million commitment to Canberra-based precision instruments maker Liquid Instruments earlier this year.
The latest investment comes on the back of a $10 million equity investment in Adelaide-based spaceport operator Southern Launch announced this week to help scale Australia's sovereign launch infrastructure.
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