Soil Connect: Why did we invest?
Heartland Ventures recently invested in Soil Connect, a digital dirt trading platform. Why?
Excavators and construction firms spend a lot of time playing in the dirt. They spend even more time looking for, or trying to get rid of…dirt. Most projects require the digging up and removal of dirt or other aggregates of some kind. That material must then be disposed of in a manner compliant with federal, state, and local laws. Many different projects require the opposite: the addition of dirt or fill to support a sound foundation. Thus, the dirt removed from one project holds great value for another project, either down the street or in another state.
The problem is there is no efficient, transparent way to match those who have dirt with those who need it. Today, contractors’ best option is to contact dozens of peers within the region or to call a “dirt guy” who brokers a transaction between the two parties. But even those dirt guys (many contractors don’t even have one) have limited insight into the many players on both sides of the dirt marketplace. Their knowledge of the amount, quality, and proximity of local dirt is barely better than the contractor because the entire marketplace is so opaque. So procurement and disposal are needlessly expensive, the associated administrative costs are a pain, and projects are ultimately slowed down by the basic yet essential task of moving dirt.
Enter Soil Connect.
Soil Connect’s platform connects those who have dirt with those who need it through an easy-to-use digital marketplace. Users get a dynamic look at dirt supply and demand, allowing them to identify opportunities early and often and bid out jobs fast and accurately. The platform’s “Dirt Alerts” find the right type and quantity of soil within the closest distance, thereby saving users on transportation costs. It converts the manual process of documenting deliveries to a digital one, enabling firms to save on administrative costs as well as comply with state dumping laws. In short, Soil Connect presents contractors with a one-stop-shop and source of truth when it comes to their dirt or fill needs.
Heartland Ventures has been tracking Soil Connect and Founder, Cliff Fetner, for over a year. We’re confident Cliff is the best person to get this job done. For one, he’s a thirty-year veteran of the construction industry. He’s been on both sides of the dirt problem and therefore understands customers and their needs. He also has deep industry ties that have been and will continue to be helpful in seeding the platform and marketing its advantages. Just as importantly, he and his team have been creative and aggressive in building out a user base. It’s the truest definition of Founder-Market Fit.
Today the platform has thousands of users, mainly in the greater New York City area where Soil Connect was founded. The team has identified two follow-on markets where they have started concentrated efforts to build users — the Texas triangle and our backyard — Indiana/Michigan/Ohio/Illinois. Soil Connect will launch these markets aggressively with the help of Heartland and other large, strategic partners with leverage over millions of cubic yards in dirt or dirt needs in each region.
Heartland’s relationship with Soil Connect is typical of our Fund. Prior to investing, we introduced them to members of the Heartland community. Through discussions with folks like Michael Kinder and Sons, ARCO/Murray, and Cemex, we were able to confirm a strong product-market fit. More importantly, we’ve been able to identify about 75 high-level customers for Soil Connect within our immediate reach. In this way, as always, the Fund plans to drive revenue to Soil Connect, while at the same time providing a much-needed service to our LPs and community members.
Soil Connect has great potential to be a truly disruptive force in the construction industry. Heartland Ventures is proud to be partnered with another group of entrepreneurs looking to provide real value to the marketplace in our region and across the country.
