Adaptive Real Estate Inc. on Wednesday announced that it has secured a $6.5 million funding round led by Andreessen Horowitz.
The round also included the participation of investment firms 3KVC, BoxGroup, Exponent and Definition. Executives from prominent financial technology startups such as Airbase Inc., Brex Inc. and Ramp Business Corp. participated as well, TechCrunch reported today.
Adaptive, which previously raised a $750,000 funding round last August, offers a cloud-based cost management platform for construction companies. The startup says that its platform reduces manual work for its customers. In the process, Adaptive promises to help construction companies uncover new opportunities to increase operational efficiency.
A construction project can involve upwards of dozens of individual expenses because of the many materials and tools required to construct a new building. As a result, entering those expenses into a company’s accounting system can take a significant amount of manual work. Moreover, the large amount of manual data entry involved in the process creates a risk of human error.
Adaptive uses artificial intelligence to ease accounting teams’ work. The startup’s AI algorithms can automatically extract data from financial documents such as bills and then add the data to a company’s accounting system. According to Adaptive, its technology saves a significant amount of time and reduces the risk of data errors.
The company also promises to simplify other aspects of construction firms’ day-to-day business operations. Its platform includes a tool that makes it easier to compare construction project expenses with the project’s budget. The tool is available alongside integrations with popular accounting applications, as well security controls that allow companies to regulate how the platform is accessed by workers.
Though Adaptive launched less than a year ago, the startup says that it’s already “working with some of the best homebuilders and general contractors in the country.” As part of its product roadmap, the startup plans to expand its platform’s focus beyond cost management to other tasks.
“If you want to grow your business, you need to be spending less time on the bookkeeping questions and more on the strategic ones,” stated Adaptive co-founder and Chief Executive Officer Matt Calvano. “The good news is that this is precisely what Adaptive is working on.”
Startups developing technology for the construction sector have raised a significant amount of funding this year. Buildots Ltd. closed a $60 million funding round in May for an application that can efficiently identify construction mistakes. Earlier, Dusty Robotics raised $45 million to develop specialized robots that can automate parts of the construction process.