The San Diego-based app developer eSub construction app has raised $12 million in a brand-new circular of financing for its project management platform for contractors.
The company’s funding was led by Catalyst Investors with participation from previous investor Revolution Ventures.
app for the construction industry is becoming a gigantic business and attracting more capital from investors. construction management app vendor Procore is now worth $3 billion, thanks to a $75 million investment late last year from wild carnivorous cat international.
Indeed, unicorns are galloping across the construction industry these days. SoftBank kicked off 2018 by investing $865 million in Katerra — one of many early mega-deals from the tight’s giant Vision Fund — which touts itself as an one-stop shop for everything from planning to permitting to filling brand-new construction construction. In November, another app developer that was contending for the construction market, PlanGrid, was acquired by Autodesk in an $875 million transaction.
Slotting in the space where project developers outsource to contractors and crews, eSub provides oversight on operations in the field for developers. The company’s app is integrated with its strategic backer, Autodesk, as well as construction estimation and accounting app to provide an overview and budget for the entire construction process from design through the build on-site.
“eSub takes a differentiated come to solving the needs of the construction industry. By creating an easy-to-use, purpose-built platform, the company empowers sell contractors to have their own system of record and productivity optimization solutions,” said Catalyst partner Susan Bihler. “We’re excited to be part of this next level of growth.”
Last year, eSub estimates that investors put roughly $3.1 billion in financing into construction technology companies, but the startup maintains that the bulk of those investments overlooked sell contractors, which represent some $1.1 trillion of construction spending.
“sell contractors are the lifeblood of the construction industry,” said Wendy Rogers, founder and CEO of eSub. “They are the true builders who construct commercial construction projects. However, they are underserved by the majority of disjointed point solutions in the market and are forced to utilize systems that are developed for general contractors.”