Construction tech company EstimateOne has secured $35 million in funding from Potentia Captial and Leigh Jasper in its first capital raise after more than a decade of business.
EstimateOne is a platform for connecting commercial construction firms and subcontractors and has already been used by 50,000 organisations in Australia, New Zealand, the UK, and Ireland.
Co-founder Michael Ashcroft said now was the time to scale up by taking on investors.
“As the construction industry is now at a turning point, driven by supply chain issues and labour shortages we recognise more than ever the value our platform offers, and that the business is ready to seek investment to deliver significant scale and growth,” he said.
“Procurement problems are very expensive for the industry and process execution and decision-making has not been well supported by technology.
“We want to change that.”
EstimateOne was founded in Melbourne back in 2008 after Ashcroft and his co-founder Andrew Ritchie recognised the potential in digitising construction tendering.
Ashcroft and Ritchie had been sole owners of the business which boasts an annual revenue in excess of $10 million.
As such, the decision to find investors marks a dramatic shift in the EstimateOne’s structure which began with the appointment of CEO Chris Dobbyn early last year.
Dobbyn led the capital raise process that now sees Potentia Partner Michael McNamara and its Managing Director Tim Reed join the EstimateOne board as directors.
McNamara said the investment firm was “delighted” to help EstimateOne undertake its next growth project.
“We have been highly impressed by EstimateOne’s founders and management team, the exceptional workplace culture and calibre of talent, the care and thought that has been given to the company’s vision and values, and its strong market position,” he said.
“We believe the construction sector is on the cusp of significant tech-led innovation, and look forward to supporting EstimateOne grow its leadership position in Australia and offshore.”