Australian software company ClearCalcs has raised $2.5 million in a funding round led by existing investors EVP and Shearwater Capital, as demand for the company's unique engineering technology booms internationally.
It comes a year after the Melbourne-based company - which gives engineers a comprehensive digital library of calculation tools - raised $1.65 million in its seed plus round, used to support its expansion in North America where roughly 70 per cent of its users are based.
The latest capital will be used for further customer acquisition via strategic partnerships, expanding the software’s offerings and materials and growing the current team of 23 employees. The new funding also brings ClearCalcs' total pre-series capital raised to $5 million.
“At ClearCalcs, we’re servicing a market that is desperate for change and better support, but with incredibly complex requirements. While the eng-tech field is niche, we understand the intimate specifics of our community. By leaning into this, we’ve been able to build a business that is swelling in potential and uptake,” ClearCalc co-founder Chris Borzillo said.
“Our software gives those in the design engineering space the tools they need to do their job at speed and with incredible accuracy. As a result, they can trial new and different materials that would previously have been too time consuming to consider. This is not only reducing the time it takes for housing to move from concept to reality, but also changing how engineering is approached.
“We’re enabling creativity and consideration in a space that is under immense pressure. Despite being a fundamental human need, housing worldover is in short supply. This is the result of material and trade shortages but also growing populations and changing needs and expectations around living conditions.”
Founded by Borzillo and Steven Robinson in 2017, ClearCalcs offers calculation tools that enable engineers, architects and building designers to better determine the structural requirements for their projects. The software can create engineering computations for projects involving timber, steel, retaining walls, portal frames and more.
The company claims to have more than doubled its revenue over the last 12 months, and has also established a presence in Canada, Europe and New Zealand.
According to insurance broker and risk advisor Marsh, the global construction market will grow by USD$4.5 trillion (AUD$6.6 trillion) between 2020 and 2030 to become a USD$15.2 trillion (AUD$22.5 trillion) market. Growth in construction output is forecast to average 3.6 per cent per annum over the decade to 2030 – higher than either the manufacturing or services sectors.
Construction output in North America will grow by 32 per cent, or USD$580 billion (AUD$860 billion) from 2020 to 2030, while the Asia-Pacific region will account for USD$2.5 trillion (AUD$3.7 trillion) of growth in construction output between 2020 and 2030, up by over 50 per cent to become a USD$7.4 trillion (AUD$10.9 trillion) market by 2030.
Based on research from CBRE’s Construction Cost Index, costs will remain volatile in the US, potentially rising 5.4 per cent in 2023, before they eventually cool. However, long lead times and material shortages will continue in the short term.
“Every step along the way, Chris and Steve have achieved exactly what they said they were going to, first and foremost with their rapid revenue growth,” EVP Investment Manager Mark Velik said.
“Their vision for ClearCalcs and the problems it can solve is unparalleled, but it’s not just this that has us coming back to reinvest. It’s the tenacity, gumption and dedication they bring to their community that stands out. They are well on their way to building a business of significant scale, with double the enthusiasm and passion of most.
“They are also steadfast in creating a culture that enables their team to thrive which is much more advanced than most businesses of their size. We believe deeply in all they’ve set out to achieve and look forward to supporting them as they continue to grow.”
Shearwater Capital co-founder and managing partner Zac Zavos added that Chris and Steve have built a business with enormous global scale and potential.
“Year-on-year we're seeing impressive growth and this is due to the high-quality product the team has developed combined with the strong engineering culture within the business.”
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