Buildstock Secures $1.6M in Pre-Seed Funding to Expand Construction Material Marketplace & Fintech Platform
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NEW YORK, Feb. 22, 2024 ~ Buildstock, a B2B marketplace and fintech platform for construction materials, has recently secured $1.6 million in pre-seed funding from a group of investors including Precursor, MGV, XFactor, RefashionD, and several visionary angels. Notable investors include Osuke Honda from DCM, Nihal Mehta from Eniac, Shruti Gandhi from Array Ventures, Tom Peterson from Rally Ventures, Yun-Fang Juan, and Mark G from m]x[v Capital. This funding will allow Buildstock to scale its operations and expand its third-party FinTech, AI, and logistics integrations while also bringing more participants into the marketplace.

The platform aims to empower both builders and suppliers by streamlining the sales and procurement process. According to industry data, late payments cost the construction materials industry over $208 billion in 2022 alone - a 53% increase from the previous year. Buildstock's marketplace and fintech solutions aim to solve this issue by creating unprecedented procurement efficiency.

Builders who use Buildstock can benefit from AI-driven product discovery as well as significant cost savings of up to 40% on materials. They can also expect faster lead times - up to 5 times faster - for their orders. The platform also provides transparency into lead times and tracking information for deliveries of supplies. Additionally, Buildstock offers a unique feature that uses AI to generate a list of needed supplies based on blueprint files provided by builders.

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Jim Barrett, Chief Innovation Officer at Turner Construction, praised Buildstock for spearheading a digital revolution in the construction sector. He believes that the industry is in need of innovative solutions like Buildstock to streamline material sourcing and offer cost efficiencies while also providing transparency into project management through real-time life-cycle tracking of materials procurement.

For suppliers, Buildstock offers fast and predictable payments instead of the standard 90-120 days wait time for payment (if they receive full payment at all). The platform uses factoring and pays suppliers within 5 days of delivery, significantly improving their cash flow and unit economics. This is a major innovation in the industry that can also help suppliers with their manufacturing capacities, overhead, and insurances.

Kathryn Thiele AIA, Founder and CEO of Buildstock, emphasized the need for innovation in the construction industry. As a builder of $1 billion+ high-rise projects, she understands the importance of time and money in the industry. Thiele believes that Buildstock is not just another complex software pitch but a promise to complete projects faster, more cost-effectively, and with unprecedented transparency.

Buildstock has already gained traction in the New York tri-state area, handling multiple orders daily. The company is now poised for expansion across the United States. As a certified minority and women-owned business (M/WBE), Buildstock is well-positioned to be a key player as New York is required to allocate $60 billion of contracts to M/WBE enterprises for public projects including airports, housing, and infrastructure. The largest private builders such as AECOM/Tishman, Turner Construction, Hunter Roberts, and Holt also have ambitious goals to make a quarter or more of their contracts with M/WBE businesses.

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Charles Hudson, Founder & Managing Partner at Precursor Ventures, highlighted the potential for digital disruption in the construction industry. He believes that there are enormous efficiencies to be unlocked in this massive industry and Buildstock is at the forefront of bringing them to life. Hudson expressed his pride in the team at Buildstock for the value they have been able to bring to market.

With construction ramping up across the country, there is a growing need for both construction companies and suppliers to have access to a centralized marketplace. Buildstock offers a quick and convenient way for builders to find local and national suppliers that can help them save on materials while also streamlining procurement processes and saving time to complete projects faster. On the supplier side, Buildstock offers increased product visibility and order flow, better payment terms, and improved inventory management.

In conclusion, Buildstock's recent funding will allow the company to continue its mission of revolutionizing the construction industry through its innovative marketplace and fintech solutions. With a growing list of investors and a strong track record in the New York tri-state area, Buildstock is poised for success as it expands across the United States.
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