Investment by strategic industry leaders will enable StructShare to scale its procurement e-commerce platform for the construction industry
21 March, Austin, Texas: StructShare, the leading construction procurement and inventory platform for specialty contractors, has raised $8 million in funding to solve chronic inefficiencies across the supply chain using digital tools and data analysis.
The round was led by KOMPAS, an early-stage venture capital firm focused on the built environment and construction digitization. There was also participation by first-time contech investors SeedIL, and CEMEX Ventures, the corporate venture capital arm of the multinational building materials company. Existing angel and strategic investors also participated in the round.
Launched in 2021, StructShare has developed a software solution that enables trade contractors to take control of the entire procurement cycle. By automating all procurement processes in the field, office and warehouse, StructShare reduces costs and material waste, prevents purchasing mistakes, and enables full control over spend and inventory.
Procurement and material management plays a crucial role in ensuring construction projects are completed on budget and on time. The process is still largely manual and relies on emails, manual data entry and legacy accounting systems which can cost subcontractors over 5% of their total revenue on each project. StructShare automates the entire purchasing cycle by providing customers with end-to-end procurement and materials management workflows and data in a single cloud-based platform. This can be integrated seamlessly into the customer’s existing project management and accounting systems.
StructShare has established strong strategic relationships with leading players in the construction tech, finance, and supply chain industry. Including this round, the company has raised a total of $10 million in pre-seed and seed funding and has grown its customer base by 300% year-on-year across 20 states and 15 different trades.
Or Lakritz, Co-Founder, said: “We are excited to continue with our mission to help the people and businesses who are building our world thrive in this tough environment while transforming construction delivery, efficiency, and sustainability through best-in-class procurement management.” Arik David, Co-Founder, added: “We are extremely proud of the team and look forward to continuing to facilitate the transition of efficient commerce in the construction industry. The fresh funding will help us to expand our platform and continue to scale our footprint in the US and beyond.”
Talia Rafaeli, Partner at KOMPAS, said: “StructShare has built a winning solution that has enabled the team to forge strong strategic partnerships and position the company as a category leader in the construction procurement space. Now more than ever, the movement and tracking of materials and components in construction is essential and can only be achieved through digital transformation solutions that promote greater sustainability. I am beyond excited to work with these inspiring founders and support this very necessary endeavor.”
