Canadian-based tech start-up CostCertified selected Cape Town as its first overseas headquarters because of the latent and underutilised talent pool.
So says CEO Mike Bignold about joining more than 450 tech firms in the city’s thriving tech ecosystem.
Often considered Africa’s Silicon Valley, Cape Town is the home of tech heavyweights such as Naspers, Takealot, Aerobotics, Clickatell, GetSmarter, Yoco and Sweepsouth.It’s also said to collectively employ more than 40 000 people.
Bignold, who lived in Cape Town in 2010 and 2011, thought expanding the start-up’s business to the Mother City was a “really great opportunity” to tap into the local skills.
“Besides being one of the most beautiful cities in the world, Capetonians are known for their adaptability and ability to hustle; there’s an unrecognised talent pool here that we’re keen to tap into.”
CostCertified provides cost estimating software for the residential construction industry, enabling contractors to give consumers a real-time interactive buying experience at the point of sale, explains Bignold.
“Instead of getting a vague PDF with a bulk price on it, you can get an interactive buying experience.
“For example, you could upgrade your countertop to quartz, or upgrade your floor to hardwood, or you can remove the bathroom from the scope of your renovation and everything that goes into the bathrooms will get pulled out and you can see the price change instantly. So, you know exactly what it's going to cost so that you can fit the project to your needs.”
To enable this, Bignold comments the company has to front load a lot of data onto the software. “We have to put a lot of data at the very start of the process...and front loading all of that data allows us to have all that optionality.
“One of the other things that it allows us to do is to de-risk the construction workflow. The construction workflow is really risky. Typically, the general contractor will manage the project and they will collect a lump sum payment from the customer and then distribute the money to their subcontractors, vendors and suppliers. That process is really risky, especially when the general contractor doesn't accurately estimate project.
“As a lender – if you're lending in that environment – you can't just underwrite the consumer. You also have to underwrite the general contractor, the sub-contractors and everyone along the value chain because if something goes wrong, you can be liable as a lender.
“It becomes very risky, it's very expensive and it's very hard to get a construction loan. With CostCertified, we're de-risking the process and we're able to have a unique opportunity for financial payments, financing and other financial services.”
Job creation
After being in development for five years, CostCertified officially launched two years ago.
About a year-and-a-half ago, the start-up had its first outside hire, indicates Bignold, adding that as of today, it will have 100 employees, including the Cape Town team.
In Cape Town, CostCertified has already recruited 30 sales development and customer success and onboarding representatives, alongside the launch of its local branch. The company further aims to provide at least 300 jobs for locals over the next two years, he reveals.
With a significant number of entry-level and junior positions available, he points out applicants don’t need to have a robust sales background or years of experience.
In addition, the start-up is looking to people that will fit into the company culture. “We're really hiring for attitude and fit.
“Our hiring team is on the lookout for ambitious candidates who show resilience, agility and a competitive entrepreneurial spirit. Our strategy is to hire for attitude first − skills can be taught.
“With the positions that we’re offering, there’s significant room for growth and skills development, in one of the world’s fastest-growing technology sectors. Investing in people is the best way to grow both our team members and our business. Local employees will also have the opportunity to be trained by global peers from the international team.”
Backed by tech incubator programme Y-Combinator, CostCertified is on track to be one of the fastest growing companies in North America, according to the CEO.
As part of the Y-Combinator incubator programme in 2021, the firm raised $8.45 million (R133 million) to help it realise its vision.
“We are working to be cash flow positive and that's part of why we're here [Cape Town],” Bignold concludes.
To apply for positions at CostCertified, click here.
Share