StructShare secures $8 million to solve construction procurement woes
Efficient procurement and material management are essential for achieving timely and cost-effective completion of construction projects. However, the current process relies heavily on manual labor such as email communication, manual data entry, and outdated accounting systems. Unfortunately, this can lead to subcontractors losing over 5% of their total revenue on each project.
It’s against this backdrop that 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.
Enter StructShare, an Austin, Texas-based construction tech startup that offers a solution to this problem by automating the entire purchasing cycle. With StructShare’s cloud-based platform, customers can access end-to-end procurement and materials management workflows, resulting in streamlined processes and enhanced data management. Additionally, the platform can be easily integrated into existing project management and accounting systems.
To further digitize the construction supply ecosystem, StructShare announced today it has raised $8 million in funding to 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 specializing in early-stage investment in the built environment and construction digitization.
StructShare has raised a total of $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.
Co-founded in 2021 by Arik Davidi, StructShare has developed a software solution that enables trade contractors to take control of the entire procurement cycle. By automating all procurement processes in the field, office and warehouse, StructShare reduces costs and material waste, prevents purchasing mistakes, and enables full control over spend and inventory.
StructShare has established strong strategic relationships with leading players in the construction tech, finance, and supply chain industry. To date, the company has raised a total of $10 million in pre-seed and seed funding and has grown its customer base by 300% year-on-year across 20 states and 15 different trades.
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 fresh funding will help us to expand our platform and continue to scale our footprint in the US and beyond.” Or Lakritz, Co-Founder, added: “We are excited to continue with 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: “StructShare has built a winning solution that has enabled the team to forge strong strategic partnerships and position the company as a category leader in the construction procurement space. Now more than ever, the movement and tracking of materials and components in construction is essential and can only be achieved through digital transformation solutions that promote greater sustainability. I am beyond excited to work with these inspiring founders and support this very necessary endeavor.”