Two rivals in construction safety software are merging, with five-year-old Sydney startup 1Breadcrumb acquiring 12-year-old Canberra platform SignOnSite.
The terms of the cash and equity deal were undisclosed but it comes along with a $4.5 million SAFE note backed by Five V Capital and Tribe Global Ventures as well as a US-based family office.
Five V previously led a $4 million raise for 1Breadcrumb, a worksite and process management software platform founded in 2020, in June last year as it looked to expand internationally.
1Breadcrumb is a worksite and process management software platform focused on construction. Nearly two-thirds of construction sites still use paper-based workflows.
They both play in a similar space to pioneering tech unicorn SafetyCulture.
SignOnSite kicked off in 2013 after cofounder Mitch Harmer was asked in a Canberra pub why contractors had to drive 5-10km to the site shed in the mornings and afternoons to sign a paper attendance sheet? He launched the business with female founder Alex Garlan, the CEO, moving the process to the mobile phones of tradies. Their startup went on to raise $500,000 in pre-Seed funding in 2015, and then another $590,000 in a Seed round 12 months later backed by Artesian and Sydney Angels.
The tech platform raised additional undisclosed rounds backed by VCs Black Nova, Venture Builders and Common Sense over several years. The most recent raise, in March 2022, came from Artesian once again. It has around 16 employees.
While ome early investors receiving payouts to simplify the joining of two complex cap tables. Key investors from SignOnSite, including, will join the merged company’s cap table rather than taking cash exits.
While some early investors will exit, Black Nova will join the combined cap table.
1Breadcrumb’s workforce is three times as big as SignOnSite, and the two teams will merge, with Garlan becoming chief commercial officer under CEO Simon Elliott.
The merged business will service around 900 companies and more than 1.5 million construction workers in Australia, New Zealand and the UK,
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