Adaptive, the leading financial automation platform working to transform how businesses in the 2trillionconstructionindustrymanagetheirmoney,secureda19 million Series A funding round Monday.
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 273billioninlossesacrosstheindustry. AdaptiveispoisedtoaddressthiswithitsautomatedfinancialmanagementsoftwaredesignedspecificallyforSMBconstructioncompanies.Followingrapidgrowth,thecompanyissettoscale,withtherecentinvestmentledby[EmergenceCapital](https://www.emcap.com/)alongwithparticipationfrom[AndreessenHorowitz](https://a16z.com/),Definition,[Exponent](https://www.exponentpe.com/),[3kvc](https://www.3kvc.com/),[BoxGroup](https://www.boxgroup.com/),andGokulRajaram.ThisbringsAdaptive’stotalcapitalraisedto26.4 million. (View Highlight)
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. (View Highlight)
