It’s been said that we are currently in the Fourth Industrial Revolution or Industry 4.0. Organizations are adopting new safety and health measures to keep industrial workforces safe as we enter a new era of automation. Connected devices, virtual reality tools, data analytics, machine learning, and mobile applications are all a part of the toolset that’s powering the digital transformation. StrongArm Technologies is a provider of intelligent wearables and software that allows industrial workforces to work more safely, reliably, and efficiently. The company’s wearable platform and data backend provide real-time holistic feedback to reduce injuries, improve incident reporting through tracing, and ensure compliance. The company grew revenue 5X year-over-year and works with partners like Walmart, Toyota, and Albertsons to protect their most important assets – their employees.
AlleyWatch caught up with StrongArm Technologies CEO and Cofounder Sean Petterson to learn more about the business, the company’s strategic plans, latest round of funding, which brings the total funding raised to $56.9M, and much, much more…
Who were your investors and how much did you raise?
This was a $50M Series B Investment round. Drive Capital led the round.
Tell us about the product or service that StrongArm Technologies offers.
StrongArm provides actionable data and insights through wearable devices to protect Industrial Athletes. The wearable devices have sensors developed to provide real-time feedback and warn supervisors of critical safety metrics, such as potential ergonomic strain and proximity for social distancing, while capturing data on traffic patterns, density and actions taken in specific locations via Bluetooth beacons to help improve operational efficiency. We work with companies such as Walmart, Albertsons Companies and Toyota, along with industry leaders Lineage Logistics, Merck Animal Health and Metcash.
What market does StrongArm Technologies target and how big is it?
StrongArm currently targets the industrial market, which includes warehousing and machinery – really any industrial athlete who works in a physically demanding job setting, often engaged in repetitive movements like bending, lifting, and twisting thousands of times through a typical shift. Any company that has a workforce that can be defined by its industrial athletes can benefit from what we do. In the US there are over 22 million workers who are at “high” risk of a lumbar injury, and over 8.5 million are at a “very high” risk.
What’s your business model?
StrongArm has three subscription-based plans – SafePlace, SafePlace Plus, and SafePlace Pro – which all include their wearable tech devices and admin access for the supervisors which is connected to their management and analytics platform. The pricing depends on how many employees and what type of service and features are included but it starts as low as $0.75 per employee.
What are your post-COVID office plans?
StrongArm is an “outcome-oriented workplace”, meaning we hire people who are competent, capable, and who we believe in, and therefore we are comfortable when our team works from anywhere. That said, we have an office in Vinegar Hill, Brooklyn where our teams get together, collaborate, and work together in a space designed from the ground up.
What was the funding process like?
Even though investing in private ventures is quite popular at the moment, raising money from the right partner takes time, diligence and a formal process. We began talking to VC players about 12 months ago, building a list that: 1) was aligned to our mission; 2) could give us the attention of partners, 3) has depth of expertise in our category, and finally 4) those who had a breadth of network.
What are the biggest challenges that you faced while raising capital?
Time. Raising capital from the right partner takes time and preparation. When you are ready, it can move quickly (as it did in our case) but it requires a tremendous amount of work before the “starting line”. While critical to the business, there is also a business to run, so in my opinion, the hardest part is navigating a complex list of priorities while delivering the business results.
What factors about your business led your investors to write the check?
A question best answered by them surely, but based on feedback, we are true to our mission, are tackling a massive problem, and have developed a product that is priced lower than the financial and human impact it delivers for our enterprise customers. The team is focused, and well equipped to manage the complexity of both product and market. And most importantly – it works.
What are the milestones you plan to achieve in the next six months?
Our goal is to get workplace injuries to zero, and that starts with getting our technology onto more Industrial Athletes, improving our product offerings, and exploring new sectors. We have found that our data has been valuable thus far, but we want to see just how far we can help companies by not only reducing workplace injuries but also improving efficiency and productivity in areas with high turnover rates. We can do this by improving retention, onboarding, and becoming a standard part of all companies.
Our goal is to get workplace injuries to zero, and that starts with getting our technology onto more Industrial Athletes, improving our product offerings, and exploring new sectors. We have found that our data has been valuable thus far, but we want to see just how far we can help companies by not only reducing workplace injuries but also improving efficiency and productivity in areas with high turnover rates. We can do this by improving retention, onboarding, and becoming a standard part of all companies.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Be patient and focus on making your product or service as good as possible. The capital will come if the product/service can deliver.
Where do you see the company going now over the near term?
We see a lot of opportunity to use our tech and data to help other industries that might not be as obvious as some of the workforces we currently work with. Manufacturing and construction are areas we would like to break into in the near future.
What’s your favorite outdoor dining restaurant in NYC?
Fulton Burger in DUMBO.
