- Carlsbad, California-based startup Raken, which offers a mobile application and web-based software to streamline jobsite reporting and employee time tracking, recently announced it raised $10 million in a Series A round of venture capital funding, the San Diego Union-Tribune reported. According to a company statement, the funds will be used to finance “aggressive expansion” of the product into field management areas.
- The Raken application helps general contractors and subcontractors meet reporting requirements faster and more easily, founder and CEO Kyle Slager told the Union-Tribune. Since launching in 2014, the company has reportedly expanded its customer base to 3,000 companies across 50 states and 89 countries.
- The Series A round of funding was spearheaded by San Francisco Bay area-based venture capital firms U.S. Venture Partners and Tao Capital Partners. Some of these funds will be allocated to expanding Raken’s digital time card feature, which the company rolled out in February.
In an interview with Wired last year, Brick & Mortar Ventures founder Darren Bechtel called construction “one of the last massive industries to be disrupted.”
Raken is one of hundreds of technology startups positioning itself to meet growing demand for digital tools on the jobsite, according to Slager, who told the Union-Tribune that the company is targeting the estimated $7 billion and growing construction software market. Likewise, VC firms with an eye on the digitalization trend are throwing more resources at tech innovators in the construction space.
In addition to the Raken mobile app, project management platforms like Procore, Aproplan, Smartvid.io and Fieldwire have attracted investors’ attention in recent years, aiming to increase field productivity and organize data that’s traditionally been recorded with pen and paper.
As prefabrication and modular building gains traction in the industry, offsite construction innovators are also attracting new investments. Katerra, which automates and standardizes design and construction through a factory-based process, received $865 million in funding from Japan-based Softbank Group Corp. in January — the sixth biggest investment for a U.S. venture-backed company during the year prior, according to data from CB Insights. And last year, startup Fullstack Modular announced that it raised $6 million in Series A funding to increase production at its facility and gear up for expansion to the West Coast.