Briq, who developed a fintech platform used by the construction industry, raised $ 30 million in a Series B funding round led by Tiger Global Management.
According to the company, the funding is one of the largest Series B fundraising drives by a construction software startup and has brought Briq to a total of $ 43 million since it was founded in January 2018. The existing supporters Eniac Ventures and Blackhorn Ventures also took part in the round.
Briq CEO and co-founder Bassem Hamdy is a former executive of construction engineering giant Procore (which recently went public and is a Market capitalization of $ 10.4 billion) Canadian software giant CMIC. Wall Street veteran Ron Goldshmidt is co-founder and COO.
Briq describes its offering as a financial planning and workflow automation platform that “dramatically cuts” the time it takes to run critical financial processes while increasing the accuracy of forecasts and financial plans.
Briq has developed a toolbox using proprietary technology that enables financial data to be extracted and manipulated without the use of APIs. It has also developed construction-specific data models that make it possible to create projections and models of how much a project could cost and how much is imaginable. Briq is currently managing or forecasting approximately $ 30 billion in construction.
In particular, Briq has two main offerings: Briq’s Corporate Performance Management (CPM) platform, which models and finances financial outcomes at the project and company level BriqCash, a construction-specific banking platform for managing invoices and payments.
Put simply, Briq aims to enable contractors to “go from plan to pay” on one platform with the aim of solving the age-old problem of construction projects (very often) going over budget. Its longer-term, ambitious mission is to “handle 80% of construction cash flows in 10 years”.
The company’s previous strategy seems to be working.
From January 2020 until today, the ARR has increased 200%, according to Hamdy. Briq currently employs around 100 people, compared to 35 a year ago.
Briq has 150 customers and serves general and specialty companies with revenues of $ 10 million to $ 1 billion. they include Cafco Construction Management, WestCor Companies, and Choate Construction and Harper Construction. The company is currently focused on contractors in North America, but has long-term plans to enter larger international markets, Hamdy told TechCrunch.
Hamdy came up with the idea for Briq in Santa Barbara, California after realizing the enormous inefficiencies on the financial side of the construction industry. His goal was to do for construction finance what Procore did for document management and PlanGrid for construction drawings. He started Briq with his own money amassed through secondary sales when Procore climbed the ranks of startups to become a construction unicorn.
“I wanted to find out how to bring the best of fintech into a construction industry that really guesses the financial results of projects every month,” Hamdy told me on the company’s last raise – a Series A of $ 10 million led by Blackhorn Ventures announced in May 2020. “Getting a grip on financial results is really difficult. In the vast majority of cases, the projected costs up to completion are simply wrong. With many. “
Indeed, after McKinsey, a staggering 80 percent of projects exceed budget, resulting in significant waste and lost profits.
For example, at the end of a project, contractors often find that more money and resources have been spent than originally planned. This can result in negative cash flow and loss of profit. Briq’s platform is designed to help contractors identify outliers and which projects are more at risk.
During the COVID-19 pandemic, Briq was “extremely valuable” to contractors, Hamdy said.
“In an industry where margins are so tight, we’ve given contractors the opportunity to really understand where they are in terms of money, profits and work,” he added.