Adaptive positioned to scale its AI-powered
financial platform across the $2
trillion construction market, creating a unified payments
infrastructure for the industry
NEW
YORK, July 15, 2024 /PRNewswire/ -- Adaptive,
the leading financial automation platform working to transform how
businesses in the $2 trillion
construction industry manage their money, secured a $19 million Series A funding round Monday.
Adaptive Closes $19M Series A to Transform Construction Finance
with AI and Automation
The construction industry, faced with unique accounting and
compliance requirements, is plagued by chronic payment delays and
cash flow crunches, introducing significant risk and inefficiency
to the build process that together amount to an estimated
$273 billion in losses across the
industry.
Adaptive is poised to address this with its automated financial
management software designed specifically for SMB construction
companies. Following rapid growth, the Company is set to scale,
with the recent investment led by Emergence Capital along with
participation from Andreessen Horowitz, Definition, Exponent, 3kvc,
Box Group, and Gokul Rajaram. This
brings Adaptive's total capital raised to $26.4 million.
Adaptive combines AI, automation, and intuitive design to
deliver a modern financial management experience, built
specifically for the construction industry. The platform offers
end-to-end financial management, including budgeting, cash flow
analytics, expense tracking, accounts payable, accounts receivable,
vendor management, and electronic payments.
Nick Schiffer, founder of the
Boston-based homebuilding company
NS Builders and host of The Modern Craftsman podcast, said,
"Managing cash flow and staying on top of project budgets is a
full-time job in construction. Like most other homebuilders, we're
a small business; we operate on thin margins so we want all
available staff time devoted to building the best possible product
for our clients, not bookkeeping.
"The year before we started using Adaptive to automate our
financial management, we lost out on over $100,000 of reimbursable expenses due to
error-prone cost tracking. Every builder I know has the same
problem and it leads to higher prices across the board," said
Schiffer.
"The payment delays and cash flow problems we see in
construction largely arise from outdated, manual back-office
processes," said Matt Calvano,
Co-Founder and CEO of Adaptive. "Our platform leverages AI and
automation to cut through this back office fog, delivering
real-time clarity into financials and significantly accelerating
payments."
Since its launch in February 2023,
Adaptive has grown rapidly, with more than 280 construction
companies managing over $1.4 billion
of project volume on the platform. Adaptive serves a wide range of
small to medium-sized construction businesses, including custom
homebuilders, commercial general contractors, real estate
developers, and specialty trades.
"Our rapid growth is a testament to both the demand small and
medium-sized construction businesses have for modern, intuitive
financial tools and how underserved they are by the options
available to them," said Francisco
Enriquez, Co-Founder and CFO.
Matt Risinger, Founder of
Risinger Build and The Build Show, shared, "Adaptive has completely
supercharged our back office process. Prior to using Adaptive, my
team would spend hours per day bookkeeping, chasing receipts,
manually approving vendor bills, and preparing bank draws. With
Adaptive, their AI does the data entry and we get paid faster
because we can now generate requests for payment in a few clicks
that used to take us weeks to prepare. Adaptive has allowed us to
grow without adding additional overhead costs."
"We're laser focused on incorporating AI to automate processes
and simplify the user experience, creating a next-gen software
experience for our industry. Our customers can be up and running on
Adaptive in under an hour," said Henry
Bradlow, Co-Founder and CTO.
Looking ahead, Adaptive will focus on expanding its product into
an integrated financial ecosystem that connects developers, general
contractors, and subcontractors, delivering transparency and fast,
accurate payments across the construction value chain.
"Adaptive's innovative approach to solving construction's
financial challenges is both timely and necessary. Adaptive is set
to build a generational company and redefine how money moves across
this critical part of the economy," said Kevin Spain, GP at Emergence Capital, who will
also be joining Adaptive's Board. Emergence brings significant
expertise to the table, having been early partners to both
industry-defining vertical software companies such as Veeva, as
well as payments innovators such as Bill.com.
The Series A funding will fuel Adaptive's growth, supporting the
expansion of its engineering and product teams and enhancing
efforts to reach more construction companies across the United States.
About Adaptive: Adaptive is on a mission to bring
financial clarity to the construction industry through advanced
automation and AI. By eliminating back-office bottlenecks and
streamlining payment processes, Adaptive's platform enables
construction companies of all sizes to improve their cash flow,
profitability, and project efficiency. With a vision to become the
standard network for construction payments, Adaptive is paving the
way for a more transparent, efficient, and profitable construction
industry. For more information, visit www.adaptive.build.
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SOURCE Adaptive