Adaptive, a financial automation platform in the construction industry, has secured a $19m Series A funding round, which brings the company’s total capital raised to $26.4m.
The investment round is led by Emergence Capital, with participation from Andreessen Horowitz, Definition, Exponent, 3kvc, Box Group, and Gokul Rajaram.
Adaptive intends to use the funding to support the growth and expansion of its engineering and product teams and efforts to reach more construction companies across the US.
The company serves a wide range of small to medium-sized construction businesses, including custom homebuilders, commercial general contractors, real estate developers, and traders.
It offers end-to-end financial management, including budgeting, cash flow analytics, expense tracking, accounts payable, accounts receivable, vendor management, and online payments.
Adaptive aims to expand its product into an integrated financial ecosystem that connects developers, general contractors, and subcontractors.
Adaptive co-founder and CEO Matt Calvano said: “The payment delays and cash flow problems we see in construction largely arise from outdated, manual back-office processes.
“Our platform leverages AI and automation to cut through this back-office fog, delivering real-time clarity into financials and significantly accelerating payments.”
According to the company, the construction industry faces unique accounting and compliance needs and is troubled by chronic payment delays and cash flow crunches.
The delays pose a significant risk and inefficiency to the building process that amounts to an estimated $273bn in losses across the construction industry.
Adaptive aims to address the issue with its automated financial management software, which is designed specifically for SMB construction companies.
The company combines AI, automation, and intuitive design to provide a modern financial management experience, customised for the construction industry.
Adaptive co-founder and CFO Francisco Enriquez said: “Our rapid growth is a testament to both the demand small and medium-sized construction businesses have for modern, intuitive financial tools and how underserved they are by the options available to them.”
Adaptive co-founder and CTO Henry Bradlow said: “We’re laser-focused on incorporating AI to automate processes and simplify the user experience, creating a next-gen software experience for our industry.”
