Scalare Partners reels in Fishburners from administration

Fishburners will have a second life after ASX-listed Scalare Partners acquired the Sydney startup business three weeks after it was placed in voluntary administration.

The move sees Fishburners join a portfolio of startup services under Scalare (ASX: SCP), including Tank Stream Labs, The Founders Union, Planet Startup, Tech Ready Women, InHouse Ventures, and the Australian Technologies Competition.

The terms of the deal were not disclosed, but in a statement to the ASX, Scalare said it was a cash-only acquisition, completed today, and is not material to the company’s overall financial position. The acquisition includes the Fishburners brand, programs, intellectual property, and associated community assets. No other assets and no employees or liabilities were taken on as part of the deal.

Founded 15 years ago as a not-for-profit, Fishburners was one of Sydney’s original startup co-working spaces, offering a range of events and programs that have supported more than 35,000 entrepreneurs since 2011.

Those founders include Koala co-founder and CEO Dany Milham, v2food founder Nick Hazell (now running Algenie), and Natalie Nguyen from Hyper Anna.

But the Fishburners board called in KPMG as voluntary administrators last month after “failed efforts to resolve long-standing rental legacy debt” owed to the NSW government. The surprisingly large rent bill – more than $1.5 million a year – meant rental arrears worth more than $2 million at the now-closed Sydney Startup Hub remained unpaid.

The NSW Labor government shut down the Sydney Startup Hub last year, and Fishburners relocated to Tech Central, in a shift that removed the government as the organisation’s landlord.

While Fishburners struck a repayment deal, the uncertainty created by the government, lasting for several months after Minister Anoulack Chanthivong announced the Startup Hub’s closure without revealing the next steps, combined with costs associated with the relocation last year, saw Fishburners incur additional losses as it looked to shift its strategic focus.

Scalare CEO Carolyn Breeze said adding Fishburners to its ecosystem is expected to expand capacity to support scalable early-stage technology startups and their access to infrastructure, services, and capital while generating revenue and proprietary deal flow for the company’s investment portfolio.

Fishburners members will also have access to Tank Stream Labs locations nationally, including a Fishburners Hub at TSL’s Kent Street, Sydney campus.

Scalare also plans to establish a Fishburners Investment Vehicle to invest in selected startups emerging from a reinvigorated pitch program, relaunching the Fishburners Pitch Nights and founder showcase programsnationally.

“Fishburners has been an important part of Australia’s innovation ecosystem for more than 15 years,” Breeze said.

“We are proud to continue that legacy and provide founders with stronger pathways to community, education,customers, capital and support. This acquisition further strengthens Scalare’s mission to build one of the most connected founder ecosystems in Australia.”

In a statement confirming the sale, the Fishburners board said it secures a sustainable future and continuity of mission for the thousands of entrepreneurs who rely on the organisation’s support services.

“By transitioning custody of the Fishburners brand and community to Scalare Partners, a partner who shares our vision for a thriving, connected, and unencumbered ecosystem – we have effectively future-proofed our impact,” the statement said.

“This is a strategic evolution that places our community in a sustainable, well-capitalised environment, ensuring that Fishburners remains the engine room for the next generation of Australian founders for years to come.”

Scalare listed on the ASX in late 2024 after raising $4.3 million.

This article was first published by Startup Daily.

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