Adaptive, a leading financial automation platform working to transform how businesses in the construction industry manage their money, announced it secured a $19 million Series A funding round today. This investment was led by Emergence Capital along with participation from Andreessen Horowitz, Definition, Exponent, 3kvc, Box Group, and Gokul Rajaram. And the funding brings Adaptive’s total capital raised to $26.4 million.
The construction industry often faces unique accounting and compliance requirements while also dealing with chronic payment delays and cash flow crunches. This introduces significant risk and inefficiency to the build process, which together amount to an estimated $270+ billion in losses across the industry. Adaptive addresses this issue with its automated financial management software designed specifically for SMB construction companies.
Adaptive integrates AI, automation, and intuitive design to deliver a solid financial management experience, built specifically for the construction industry. The platform offers end-to-end financial management, including budgeting, cash flow analytics, expense tracking, accounts payable, accounts receivable, vendor management, and electronic payments.
Since launching in February 2023, Adaptive has grown rapidly, with over 280 construction companies managing over $1.4 billion of project volume on the platform. And Adaptive serves a wide range of small to medium-sized construction businesses, including custom homebuilders, commercial general contractors, real estate developers, and specialty trades.
Going forward, Adaptive will focus on expanding its product into an integrated financial ecosystem that connects developers, general contractors, and subcontractors, delivering transparency and fast, accurate payments across the construction value chain.
The Series A funding round will fuel Adaptive’s growth, supporting the expansion of its engineering and product teams and enhancing efforts to reach more construction companies across the United States.
KEY QUOTES:
“Managing cash flow and staying on top of project budgets is a full-time job in construction. Like most other homebuilders, we’re a small business; we operate on thin margins so we want all available staff time devoted to building the best possible product for our clients, not bookkeeping.”
“The year before we started using Adaptive to automate our financial management, we lost out on over $100,000 of reimbursable expenses due to error-prone cost tracking. Every builder I know has the same problem and it leads to higher prices across the board.”
– Nick Schiffer, founder of the Boston-based homebuilding company NS Builders and host of The Modern Craftsman podcast
“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.”
– Matt Calvano, Co-Founder and CEO of Adaptive
“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.”
– Francisco Enriquez, Co-Founder and CFO
“Adaptive has completely supercharged our back office process. Prior to using Adaptive, my team would spend hours per day bookkeeping, chasing receipts, manually approving vendor bills, and preparing bank draws. With Adaptive, their AI does the data entry and we get paid faster because we can now generate requests for payment in a few clicks that used to take us weeks to prepare. Adaptive has allowed us to grow without adding additional overhead costs.”
– Matt Risinger, Founder of Risinger Build and The Build Show
“We’re laser focused on incorporating AI to automate processes and simplify the user experience, creating a next-gen software experience for our industry. Our customers can be up and running on Adaptive in under an hour.”
– Henry Bradlow, Co-Founder and CTO
“Adaptive’s innovative approach to solving construction’s financial challenges is both timely and necessary. Adaptive is set to build a generational company and redefine how money moves across this critical part of the economy.”
– Kevin Spain, GP at Emergence Capital, who will also be joining Adaptive’s Board
