The provider of software for the construction industry sees its valuation more than double from a year ago following a $50 million investment round
The provider of software for the construction industry raised $50 million, led by returning investor Iconiq Capital, a family office that invests on behalf of several technology executives. The firm had participated in a funding of Procore a year ago with Bessemer Venture Partners at a $500 million valuation.
Procore’s latest funding comes at a more challenging time to raise capital. Venture investors are applying more scrutiny to startups, as close to 150 of them fetched valuations of $1 billion more in recent years. Several so-called “unicorn” companies have failed to live up to such lofty price tags in acquisitions, and some have floundered in the public markets.
The round comes after Oracle Corp. acquired Procore’s once-public competitor, Textura, for about $663 million this year. PlanGrid, another startup in the space, has raised more than $50 million. Procore has raised $143 million to date.
Mr. Courtemanche said the funding would add fuel to international expansion, first in Australia and Canada. Procore, which plans to introduce several new product lines, has been hiring quickly and now employs 700 people.
Procore launched in 2003, when Mr. Courtemanche was building his own home and couldn’t get feedback about the construction process. In the company’s early days, it was very difficult for project teams to get access to software on construction sites because tables and smartphones weren’t yet widely available. Procore had to set up wireless routers on job sites because mobile data wasn’t as efficient as it is today.
Today Procore provides collaboration software for on-site construction workers, who primarily get access using Windows devices like the Microsoft Surface. Although other collaboration products like Google Docs exist, Procore tailors its tools for tasks that are unique in construction. Mr. Courtemanche, who calls himself an “R&D CEO,” says the company will continue to invest in research and development.
Procore is experimenting with emerging technology. It is developing on Microsoft’s augmented-reality glasses, the HoloLens. A spokesman for the company said the device has exciting applications, as it could allow people to see a digital rendering of a building before it is built, or it could show where electrical wiring is located even when behind a wall on a site.
However there is still a long road ahead for bringing such tools to the work site. Currently the HoloLens device can’t be worn with a hard hat.
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