Cybersecurity start-up Nullify, crypto internet Readii raise $3m

A start-up which claims it could have stopped the Optus hack and an internet service paying customers cash back in crypto have raised capital this week.

Nullify co-founder and COO Tony Mao, engineers David Strates and Rahul Tripathi, head of marketing Suzy Ahn and co-founder and CEO Shan Kulkarni.

A start-up which claims its product could have stopped the Optus hack from occurring and the launch of the nation’s first “Web3-enabled” internet have raised a collective $3.2m this week.

Nullify, the brainchild of two former UNSW staff and a friend they once studied with, has raised just under $1.2m for a tool which is able to scan code and search for vulnerabilities.

The security tool is embedded inside a developer’s workflow and each time code is updated, it scans the new and existing code for vulnerabilities.

The tool uses artificial intelligence to come up with fixes for the vulnerabilities it finds, said Nullify co-founder Shan Kulkarni.

“Under the hood it’s using OpenAI to suggest code fixes for vulnerabilities that it finds and then it kind of surfaces that back to the developer. Essentially it’s giving immediate and continuous feedback on the code they’re using,” he said.

The Nullify bot scans application code, open-source libraries and API endpoints. Its ability to detect vulnerabilities could have prevented the Optus hack, Mr Kulkarni said.

“One big part of the Optus hack was insecure APIs and the best way to test that is with one of the features that we have,” he said.

Andrew Yeo, investor at OIF Ventures, which led the round for Nullify, said the fund was excited to watch the AI-powered security bot scale.

ReadiiTel co-founder Daniel Li.

“Nullify’s core value lies in its ability to help businesses distribute security ownership across software development and security teams without compromising on the speed of development,” he said.

Another start-up to raise funding this week was Readii, the brainchild of ReadiiTel’s Daniel Li and Mark Collins, whose background includes Stripe, SiteMinder and Zip Co.

The new internet service – which has two plans at $79 and $99 per month – will pay users the equivalent of $10 per month in one of three cryptocurrencies Solana, Polygon and UDST.

Mr Collins said Readii planned to build a marketplace in future where users of the service could spend their crypto on the service or products. It would also move beyond paying a flat $10 equivalent of crypto and move into a rewards system based on usage.

Mr Li added that while many were sceptical of the future of cryptocurrencies, he and Mr Collins believed cryptocurrencies would not be going away anytime soon.

“Web3 and cryptocurrency can sound a little bit daunting, but we are definitely not on the risky and volatile side of the scale,” he said.

“It all depends on the intention of why a person is getting involved with crypto in the first place. If you have come here trying to earn your first bucket of gold, then my recommendation is that this probably isn’t for you. But if you want to enjoy the benefits of Web3, then it is.”

The raising was led by 1 in 100 Ventures whose co-founder, Rob Lederer, said he believed Readii had potential to disrupt the local market.

“Readii is disruptive and a first mover in a hugely exciting sector. I think it’s a terrific concept; Readii allows customers to earn crypto while using the internet, rewarding everyday people with a solution built for the masses,” he said.

Meanwhile, alternative assets platform VentureCrowd has struck a $3.5m deal with Singaporean venture capital firm LightWorks.

VentureCrowd’s Glen Barry, Darren Tasker, Elle Georgiou, Steven Maarbani (centre) and Archie Georgiou. Picture: Darren Leigh Roberts

The deal will result in the chief executive of LightWorks Ventures, Bruce Musick, becoming CEO of VentureCrowd’s Southeast Asian business and lead expansion across Singapore, Malaysia, Thailand, Vietnam, Indonesia and the Philippines.

Asked about VentureCrowd’s interest in the region, VentureCrowd chief executive Steve Maarbani said he believed Southeast Asia was the most logical place for any Australian start-up to expand into.

“Most people target the US but I don’t think that’s the most sensible idea. The US sees itself as its own world and our American friends tend to be self focused. It’s a massive market with significant volumes of competition,” he said.

“I actually think the Southeast Asian region is the most logical expansion for any Australian finance business.”

The partnership would help put Australian start-ups in front of Southeast Asian investors as well as allow Australian investors to participate in deals in the region.

“We’ll now be able to say to our portfolio companies that we can help you to scale into Southeast Asia, not just in terms of capital and getting you in front of Southeast Asian investors, but we can also assist with commercial introduction,” Mr Maarbani said.

The capital received from the deal would be used to expand its platform while the other half would be working capital, Mr Maarbani said.

VentureCrowd would spend the first six months focused on Singapore and the broader southeast Asia region before turning its sight to the UK and Europe, he said.