Construction startup EquipmentShare lands $290M in funding to provide contractors access to equipment and tech
The construction business has not undergone significant change throughout the years despite all the technological developments in other fields. In the past 60 to 70 years, the industry hasn’t undergone any significant changes in terms of production or safety. It’s for this reason that one tech startup is on a quest to revolutionize and alleviate the pain points faced by contractors and companies.
Enter EquipmentShare, a Columbia, Missouri-based tech startup that offers a peer-to-peer equipment rental platform for the construction industry. The company was founded in 2014 by two brothers, William and Jabbok Schlacks, who grew up in a family of construction workers and saw an opportunity to improve the way equipment is rented and managed on job sites.
Their goal was to create a more efficient and cost-effective way to rent construction equipment. Over the years, the brothers are able to form construction, technology, and general contracting companies, gaining first-hand experience in the construction industry, the founders said on the company’s website.
EquipmentShare’s platform allows construction companies to rent out their underutilized equipment to other companies in need, reducing the need for large capital expenditures on equipment and helping to optimize the use of existing resources. The company also offers equipment tracking and management software that helps construction companies monitor their equipment usage and maintenance needs.
EquipmentShare is not just another equipment rental company, its platform uses telematics technology to track the location, utilization, and maintenance needs of rental equipment in real time, allowing customers to manage their fleet more efficiently and reduce downtime. The company also offers a range of other services, including insurance, financing, and equipment sales.
To move construction into the 21st century, EquipmentShare is building solutions that connect data points from all aspects of the job site in one place so contractors can gain control over their operations. Starting by connecting the asset vertical, today the two brothers are building an ecosystem of connectivity through a powerful operating system called T3.
Today, EquipmentShare announced today it has closed $290 million in new funding to grow its platform. The round was led by funds afﬁliated with BDT Capital Partners, with participation from existing investors such as RedBird Capital Partners, Tru Arrow Partners, and Sound Ventures, as well as several new investors including Brown Advisors.
“Our growth continues to be fueled by new customers who are ready for a technology-driven construction solution,” said Jabbok Schlacks, CEO and Co-Founder of EquipmentShare. “This latest round of funding brings in growth capital from both new and existing investors. We were pleased to have completed this raise in a challenging macro-economic environment at a valuation that was 40% higher than the previous raise in 2021.”
“This successful and substantial equity raise is a testament to the strength of EquipmentShare and our robust growth proﬁle,” said Trevor Schauenberg, CFO of EquipmentShare. “This capital will allow us to expand our US footprint, continue to invest in our T3 technology platform and further strengthen our balance sheet for future opportunities.”
Since its inception in 2014, EquipmentShare has experienced rapid growth, driven by the popularity of its equipment solutions and fleet management technology. In 2022, the company opened 32 new branch locations and gained thousands of new customers. Currently, EquipmentShare has a presence in over 150 locations, including rental, retail, and service facilities.
“We’re thrilled to partner with Jabbok and Willy Schlacks and the entire EquipmentShare team to help build the connected job site of the future,” said Henry Yeagley, Partner & Head of Middle Market at BDT & MSD Partners. “Drawing on decades of construction experience, they have created a proﬁtable, fast-growing, tech-enabled business with the potential to meaningfully disrupt the equipment rental market and the broader construction space. This investment is emblematic of BDT & MSD’s merchant banking model and reﬂects our commitment to supporting strong founders and family owners in this segment of the market as they pursue their long-term strategic objectives.”