- Levelset, a New Orleans-based platform that helps contractors get paid faster, announced it raised $30 million
Levelset — a New Orleans-based platform that helps contractors get paid faster and eliminate cash stresses — announced it raised $30 million in funding led by Horizons Ventures with participation from S3 Ventures, Altos Ventures, Operating Venture Capital, Michael Gollner, and Darren Bechtel of Brick & Mortar Ventures. In conjunction with this funding round, Bart Swanson of Horizons Ventures is joining the Levelset board of directors. Including this round of funding, Levelset has raised $47 million in total funding since it launched.
The cash pains are severe for millions of contractors across the world who exchange over $12 trillion dollars of payments annually. And in a recent survey of contractors by Levelset and T-Sheets by Quickbooks, over half of contractors said they were not paid on time and had significant cash flow challenges, and more than 75% craved more transparency in the payment process. This is not surprising since PwC’s working capital studies in the past decade demonstrate that construction industry payment speeds are the slowest of all (83+ days).
Levelset helps contractors handle this problem by making payment paperwork and compliance easier and monitoring jobs to deliver helpful insights to save time, speed up payment, and avoid problems.
“The effort required to get paid and the cash stress put on contractors is unbelievable,” said Levelset CEO Scott Wolfe Jr. “The world’s biggest industry is full of small and medium businesses that are the fabric of our economy. It’s crucial that they can do their work without worrying about cash.”
The company is on a mission to solve the payment problems that plague construction. And its help-first focus empowers millions of people each year to reduce payment stress and get what they earn. Plus Levelset’s software, vast library of free educational resources, data-driven payment insights, a roster of payment and legal experts, and industry partnerships simplify the payment process to solve the cash problems that come with running a construction business.
“Levelset is solving an acute and important pain experienced by millions of contractors, and by doing so, has built an interesting and unique dataset about construction payment behaviors,” added Swanson. “This gives more value to users, delivers more growth and, ultimately, empowers contractors to eliminate cash gaps and take on more work.”
Levelset is planning to use its Series C funding to continue developing products that resolve payment and cash flow headaches for contractors and to fuel its continued growth.
“Since day one, Levelset focused on the trade contractors, suppliers, and small businesses often overlooked in the construction technology race. These businesses are right in the thick of all the payment pains and cash strains that cost the industry big,” explained Bechtel. “Through these touchpoints, Levelset is now digitizing information, monitoring behaviors, and exchanging documents with every major contractor and on every major job in the United States.”