In Raising $23 Million SafetyCulture Shows the Value of Going Deep on Safety Inspections
On October 18, 2016 SafetyCulture, a mobile-first safety management software provider, announced it raised $23 million from three venture capital firms in a Series B round. Founded in 2004 in Australia and now headquartered in San Francisco with more than 70 employees, SafetyCulture has differentiated its safety and quality offering through its iAuditor mobile application and development of a huge database of customer-created safety inspection and EH&S audit templates. SafetyCulture claims to be one of the most widely used applications for safety audits numbering more than 28 million to date. SafetyCulture previously raised just under $13 million between 2013 and 2015.
The SafetyCulture application, iAuditor, is deceptively simple. The app enables users to create a safety or quality checklist template and enhance the template with dynamic fields and workflow. Like other safety management systems, the software enables users to save the safety inspection data to the cloud, generate reports and visualize data. SafetyCulture charges from $9 per user per month to use the iAuditor application with enterprise pricing available for firms requiring more than 100 users.
Initial analysis suggests the SafetyCulture iAuditor app is a basic offering for safety management when compared with the enterprise EH&S software applications benchmarked in the Verdantix Green Quadrant. These enterprise applications have configurable workflow engines, behaviour based safety templates, EH&S audit templates and sophisticated incident reporting. So what is the secret sauce that has tempted Index Ventures and Blackbird Ventures to invest $23 million into the business?
SafetyCulture has three trump cards to play. Firstly, the mobile-first product architecture makes it a front-runner in a battle for mindshare with field operatives. Most EHS apps vendors are growing their user base from dozens or a few hundred EHS core users into the thousands of edge users. Secondly, SafetyCulture has excelled at getting its hundreds of thousands of users to share their templates with other customers. Anyone can download the Dulepka Pre Life Inspection template or the Talisman Energy Post Construction Review template from among the 1,442 templates available in the just the mining industry database. Thirdly, “it’s the data stupid”. SafetyCulture adds value by analyzing data on safety and compliance audits and inspections. By going deep on safety they offer unique value to safety professionals and field operatives who are less interested in the broader EH&S management system.