One tech company just became an even bigger unicorn. Procore Technologies Inc, a provider of cloud-based construction management applications, announced today it has raised a $75 million Series H round from Tiger Global Management, bringing its valuation to $3 billion, according to the company.
Procore was founded in 2002, so describing the company as a startup is debatable. But it has done the majority of its fundraising in the past four years. With this round, it’s raised a total of $304 million over time.
Construction might not be top of mind when one thinks of sexy segments in tech; however, that could be exactly why it’s one of the faster-growing sectors when it comes to capturing investor interest. It’s been around forever, with companies conducting many processes in the same old tired (and inefficient) ways for decades. What (multi-trillion dollar) industry could be more ripe for disruption?
Specifically, one of the biggest complaints has been that there are too many moving parts on any given construction project with no real unifying solution. That’s where companies like Procore come in.
Procore’s mission is “to connect people, applications, and devices through a unified platform to help construction professionals manage risk and build quality projects—safely, on time, and within budget.” Its product line includes offerings geared toward project management, financials, quality and safety, and field productivity.
Procore’s business has been steadily growing, and it has made room in the C-suite to accelerate revenue accretion. The company recently appointed Dennis Lyandres to serve as CRO (Chief Revenue Officer). Doug Madey, Procore’s director of communications, wrote via email that when Lyandres first joined the company’s sales department in 2014 revenue was in the “$10 million” range. Throughout his tenure as head of sales, Procore nearly doubled revenue year-over-year, ending 2017 with over $100 million in revenue, according to Madey.
In a written statement, Procore’s Founder and CEO Tooey Courtemanche said the company plans to use the new capital “to support product development, partner platform expansion, and continued investment in hiring and developing top talent.”
Procore currently has over 1,300 full-time employees working across 12 offices around the world, including in Sydney, Australia, Vancouver, B.C., Toronto, and London. Its employee count is up from more than 900 in December of 2017, and more than 600 in December of 2016, according to Madey. Procore said it would end the year with more than 5,000 customers on projects in over 100 countries. Customers include members of the Fortune 100 spanning oil & gas to technology, as well as major players in the construction industry such as Turner and Skanska, and Mortenson, Madey said.
Earlier this year, I wrote about how funding in North American construction technology startups surged by 318 percent to $581.6 million in 2017 compared with $182.7 million in 2013, according to Crunchbase data.
Also in October, I reported that in the first three quarters of 2018, construction tech startups had brought in $1.27 billion in venture funding—124 percent higher than the $563.5 million raised in all of 2017.
For millennia, construction has literally been a brick and mortar business. The majority of technical progress came by way of new materials like steel and reinforced concrete. But in the past decade, there’s been a real push for the construction industry to work smarter, not harder, and plenty of companies are lining up to fill the void. And when there are entrepreneurs circling around an emerging market, investors are sure to follow.
Crunchbase News Reporter Jason Rowley contributed to this piece