Daylight Automation Inc. is acquiring Proof Data Technology, a startup that offers a cloud-based platform that assists government offices in streamlining their paperwork. Daylight refused to disclose the value of the acquisition.
“I think they’re going to complement everything,” Daylight’s co-founder and chief growth officer Art Harrison told BetaKit. “Bringing that kind of talent and knowledge into the organization is only going to help us.”
Daylight offers a low-code platform that allows businesses to rapidly build and deploy personalized digital solutions.
Organizations use Daylight’s low-code platform to streamline external processes from credit card applications and insurance claims, to internal processes that create consistency across every branch and employee experience.
Proof’s team of 10 employees “already have hands-on intimate knowledge of what the Daylight platform is capable of.”
Proof’s existing client contracts will end by March 31, 2022, after which the company will rebrand to Daylight.
Harrison sees a lot of synergy between the two startups.
Proof claims its proprietary cloud-based platform securely tracks approvals and routes paperwork digitally across different government departments. Proof’s current client portfolio includes the Government of Canada.
Harrison noted that previously the two startups had worked closely together. “Across the board, their team have become experts in our platform and product,” he said. “We see this as a real positive, the cliche of ‘one plus one equals three.’”
Harrison said Proof’s team of 10 employees “already have hands-on intimate knowledge of what the Daylight platform is capable of and what our mission is, and are coming with ideas on how to further that as an end user.”
Proof’s co-founders, Ben Sanders and Wesley George, will take on leadership roles at Daylight as vice president of business development, and vice president of solutions engineering, respectively.
Sanders will help Daylight forge partnerships with companies across all verticals. George will lead the team of solution engineers at Daylight, and will be responsible for guiding expansion features on the Daylight platform.
Seven of Proof’s 10 employees chose to join Daylight, bringing the latter startup up to a total headcount of 100 workers.
“We are delighted to join the Daylight team and further our common goal to quickly deliver accessible data collection solutions for both internal and external processes across multiple lines of business, all while protecting privacy and respecting ownership of data,” said George.
With the acquisition, Daylight plans to accelerate its expansion into the United States, while continuing to serve its existing enterprise customers. The latter include the BMO Financial Group, Shoppers Drug Mart, and Allianz Global Assistance.
“The acquisition of Proof complements our capabilities and expertise in digital transformation,” said Harrison. “Utilizing Proof’s talent and expertise will allow us to increase our knowledge depth and resiliency as we experience further growth in 2022 and expand into the US market.”
Harrison noted he didn’t see any challenges with onboarding the new employees because of their familiarization with Daylight’s platform. “This is about the people,” Harrison said of the acquisition. “It was a way to onboard the type of talent that most people are seeking in today’s market, knowing that they would hit the ground running, and knowing that they would bring value to our relationships, our strategy and the overall direction of Daylight.”
Harrison added that the acquisition represented a piece of the mandate Daylight set when it raised its $15.7 million CAD round in 2021. Harrison described the mandate as: “How do we bring in the best talent, so that we can replicate the success we had in Canada, and in the US, and continue our growth at the same levels we have over the past seven or eight years?”
Daylight began in 2016 under the name FormHero. But coinciding with its Series A raise, Daylight rebranded because Harrison believed the former name didn’t properly reflect the nature of its product, and pigeon-holed the startup as a form solution firm.
Besides its Series A raise, Daylight previously landed a $2.9 million round in March 2020.
Since its September Series A round, Daylight has hired a CRO, and a CTO, as well as staff in the areas of customer success, engineering, and product development. “We’ve been ramping up a world-class team,” Harrison said.
Is Daylight ready for its Series B round next? “Obviously, we evaluate everything as we go along, but at the current moment there’s nothing formal to announce or discuss on that front,” Harrison added.