Clearstory, a change order communication platform for the construction industry that connects companies to collaborate on out-of-contract work, announced it closed a $16 million Series B funding round, bringing the total capital raised to $35 million. This funding round was led by Prudence, with participation from Industry Ventures and existing investors, including Jackson Square Ventures, Building Ventures, GS Futures, and Cloud Apps Capital Partners.
Clearstory had launched in 2018 and has quickly become the industry standard for how contractors share change orders throughout the construction ecosystem, being used by owners, general contractors and specialty contractors spanning all sizes and trades. And the network has companies sharing over 19,000 change orders worth over $850 million every single month. Now, the company counts 13 of the 25 largest general contractors in North America as customers, including industry leaders from both general contractors and specialty contractors such as Suffolk, Clayco, Barton Malow, Swinerton, Kone Elevators, Performance Contracting Group, and many others.
By offering collaborative workflows and real-time visibility to all parties, general contractors realize less risk over the life of a construction project, while specialty contractors get change orders approved and paid more quickly. The platform also meaningfully reduces the administrative burden through automation and integrations with many leading construction technology platforms, including Procore, Autodesk, Vista, CMIC, Sage, and HCSS. For this reason, the company has seen many customers integrate Clearstory into their standard technology stack, mandating the use of the platform on all new construction projects.
This change order process is complex and creates financial liability for all constituents throughout the value chain, but the process of aligning on change orders between companies has historically been entirely managed using legacy methods, including paper forms, emails, and Excel spreadsheets. And Clearstory digitizes the end-to-end process, providing collaborative tools that deliver visibility and a shared source of truth for everyone on-site and in the office.
KEY QUOTES:
“This funding round will allow us to scale our platform further, supercharging our product development while bringing on top-tier talent to drive growth and innovation. Our customers rely on us to alleviate a meaningful pain point in their financial and operational processes, one I lived myself as a former general contractor project manager. We are excited to continue our mission of helping all construction industry stakeholders process change orders faster, reduce risk, improve efficiency, and increase transparency. We are thrilled to have the support of Prudence and our other investors as we continue to drive innovation in construction technology.”
- Cameron Page, CEO of Clearstory
“Clearstory is hands down one of the most impactful companies that we have ever come across in the construction tech sector. The company is taking a change order process that represents 10-20% of industry-wide construction spend but is entirely devoid of technology and delivering a solution that drives collaboration and transparency, saving their customers millions of dollars in lost fees and cost overruns. There is no reason why every construction company shouldn’t be using Clearstory, as evidenced by their work with everyone from the largest contractor in North America to small regional subcontractors.”
- Jordan Viniar, Partner at Prudence
