SafetyCulture Raises $165 Million Despite Tough Market for New Funding

SafetyCulture, an Australian technology scale-up, has secured a $165 million funding round, marking one of the largest investments in the Australian tech sector this year. This round also represents the largest initial investment in the history of Airtree Ventures, a prominent venture capital firm. Despite a decrease in valuation from $2.7 billion last year to $2.5 billion, founder Luke Anear views this new funding as a significant achievement, particularly given the current challenging fundraising environment.

The fresh investment highlights SafetyCulture’s evolution from a niche workplace safety and compliance tool to a comprehensive operations platform. Historically, only a small fraction (3-5%) of a company's workforce utilized SafetyCulture's tools. However, recent expansions have made these tools more accessible across various roles, including production line workers and warehouse staff, broadening the company’s market reach.

Anear points out that the investment underscores Airtree’s recognition of SafetyCulture’s ability to address a broader range of operational challenges than it did a year ago. The new funding round also provides liquidity for early-stage investors, who may have viewed an initial public offering (IPO) as a potential exit strategy. However, Anear has stated that while an IPO is a possible future option, it is not a current focus for the company.

The funds will be directed towards further developing SafetyCulture’s solutions for large multinational enterprises. This includes exploring the integration of artificial intelligence (AI) to enhance the capabilities of its tools. AI could enable the platform to provide insights similar to those offered to managerial teams, potentially assisting industries like supermarkets in identifying and replenishing stock more efficiently by flagging items nearing their use-by dates.

SafetyCulture has accumulated over five petabytes of workplace data and imagery, which it intends to use to generate productivity plans and industry benchmarks. The company's goal is to define what excellence looks like across different industries and provide prescriptive workflows to help businesses improve their operations. Currently, only 25% of SafetyCulture’s business is dedicated to safety, with the remaining 75% focused on quality and operational improvements.

To support its AI initiatives, SafetyCulture is hiring its first Chief AI Officer, aiming to integrate realistic AI-driven improvements into its product suite. Despite a general decline in investment activity in 2024 compared to the peaks of 2020 and 2021, Airtree Ventures partner Kell Reilly believes that now is the right time to invest in SafetyCulture. Reilly describes the company as having the attributes of Silicon Valley’s tech heavyweights, including a compelling vision, product, scale, and team.

In 2024, several Australian companies have secured noteworthy investment rounds, highlighting the country's vibrant and evolving tech sector. Among these is Cover Genius, which has previously earned recognition as a Smart50 Awards winner for its innovations in insurance technology. This company is making significant strides in the industry with its advanced solutions. Another notable recipient of substantial funding is Hysata, a clean tech startup dedicated to advancing hydrogen technology. Hysata's work is crucial in the development of sustainable energy solutions, reflecting a growing emphasis on environmental responsibility and clean energy.

Samsara Eco is also among the standout Australian firms to receive considerable investment. This company is renowned for its innovative recycling methods, pushing the envelope in waste management and sustainability. These investments underscore the diverse nature of Australia's tech landscape, with firms making significant impacts across various sectors from insurance technology to clean energy and recycling.