Adaptive Real Estate Inc. on Wednesdays announcement that it secured a $6.5 million funding round led by Andreessen Horowitz.
The round also included participation from investment firms 3KVC, BoxGroup, Exponent and Definition. Executives from leading fintech startups such as Airbase Inc., Brex Inc. and Ramp Business Corp. also participated, TechCrunch reported today.
Adaptive, which previously raised $750,000 in funding last August, offers a cloud-based cost management platform for construction companies. The startup says its platform reduces manual labor for its customers. In the process, Adaptive promises to help construction companies uncover new opportunities to increase operational efficiency.
A construction project can involve more than dozens of individual expenses due to the many materials and tools needed to construct a new building. Therefore, entering these expenses into a company’s accounting system can require a significant amount of manual work. Additionally, the large amount of manual data entry involved in the process creates the risk of human error.
Adaptive uses artificial intelligence to facilitate the work of accounting teams. The startup’s AI algorithms can automatically extract data from financial documents such as invoices and then add the data to a company’s accounting system. According to Adaptive, its technology saves considerable time and reduces the risk of data errors.
The company also promises to simplify other aspects of day-to-day business operations for construction companies. Its platform includes a tool that makes it easy to compare a construction project’s expenses with the project’s budget. The tool is available with integrations with popular accounting apps, as well as security controls that allow companies to regulate how workers access the platform.
Although Adaptive was launched less than a year ago, the startup says it “already works with some of the best homebuilders and general contractors in the country.” As part of its product roadmap, the startup plans to expand the purpose of its platform beyond cost management to other tasks.
“If you want to grow your business, you need to spend less time on accounting issues and more on strategic issues,” said Matt Calvano, co-founder and CEO of Adaptive. “The good news is that this is precisely what Adaptive is working on.”
Startups developing technologies for the construction sector have raised a significant amount of funding this year. Buildots Ltd. firm a $60 million funding round in May for an app that can effectively identify build errors. Formerly Dusty Robotics raised $45 million develop specialized robots capable of automating certain parts of the construction process.