Efficient procurement and material management are essential for achieving timely and cost-effective completion of construction projects. The process relies heavily on manual labor, such as email communication, manual data entry, and outdated accounting systems. It can lead to subcontractors losing 5% of their total revenue on each project.
One tech startup is on a mission to solve the current construction procurement woes and help contractors prevent ordering mistakes by solving chronic inefficiencies across the supply chain using digital tools and data analysis.
StructShare, a Austin, Texas-based construction tech startup, offers a solution to this problem by automating the entire purchasing cycle. Customers can access end-to- end procurement and materials management workflows with StructShare's cloud-based platform, resulting in streamlined processes and enhanced data management. The platform can be easily integrated into existing project management and accounting systems.
StructShare raised $8 million in funding in order to further automate the procurement and material management process in the construction industry and scale its platform across the United States and globally. The round was led by Copenhagen-based VC firm KOMPAS, with participation from other strategic industry investors.
The round also saw participation from SeedIL, first-time investors in the construction technology space, and CEMEX Ventures, the corporate venture capital arm of a multinational building materials company. In addition to these new investors, existing angel and strategic investors also contributed to the round. KOMPAS is a venture capital firm that specializes in early-stage investment in the built environment and construction digitization.
StructShare raised $10 million in pre-seed and seed funding since its inception 2 years ago, and has grown its customer base by 300% year-on-year across 20 states and 15 different trades.
StructShare has developed a software solution that allows trade contractors to take control of the entire procurement cycle, which was co-founded in 2021 by Arik Davidi. StructShare reduces costs and material waste by automating all procurement processes in the field, office and warehouse, and allows full control over spend and inventory.
StructShare has strong strategic relationships with leading players in the construction, finance, and supply chain industry. The company has raised $10 million in pre-seed and seed funding and increased its customer base by 300% year-on-year, across 20 states and 15 different trades to date.
Davidi said we are extremely proud of the team and look forward to continuing to facilitate the transition of efficient commerce in the construction industry. The funding will allow us to expand our platform and expand our footprint in the US and beyond. Or Lakritz, Co-Founder, said: "We are excited to continue our mission to help the people and businesses who are building our world thrive in this tough environment while transforming construction delivery, efficiency and sustainability through best-in-class procurement management. Talia Rafaeli, Partner at KOMPAS, said that StructShare has created a winning solution that has enabled the team to forge strong strategic partnerships and position the company as a leader in the construction procurement space. The movement of materials and components in construction is essential and can only be achieved through digital transformation solutions that promote greater sustainability. I am so happy to work with these inspiring founders and support this very necessary endeavor.