A construction technology startup founded by a trio of MBA graduates has launched with a platform set to bolster the industry by reducing financial risks on projects.
Melbourne Business School MBA graduates Ofer Assor, James Baker and Siddhant Shrestha founded Varicon in 2018, which was developed with the goal of becoming Australia’s leading provider of cost management solutions for the $82 billion dollar civil construction industry.
In an industry plagued by billions in annual losses due to budgeting blowouts, Varicon is a Software-as-a-Service platform aiming to provide smarter forecasting, enhanced data analysis and budget management.
The venture was created in partnership with Delta Group, the Southern Hemisphere’s largest demolition contractor, and has been boosted by $440,000 in funding from growth accelerator Galileo Ventures and notable investors Andrew Sypkes, David Gold and Danny Gorog.
Varicon, which now has $120 million worth of projects under management, is expanding nationally, serving medium to large construction firms across various sectors including civil contractors, public infrastructure developers, roads and transport and demolition contractors.
Varicon CEO and co-founder James Baker said their MBA experience set a strong foundation for startup success.
“While studying at Melbourne Business School we were applying what we learned to craft our value proposition and apply what we were learning to validate our business model,” Mr Baker said.
“Our MBA studies gave us the critical thinking tools, the networks and the credibility to gain early customers and attract funding from some of Australia’s leading investors.
“We met each other and found our first customer through our alumni network. Now we’re recruiting MBAs to help us grow the business.”