Source – a leading B2B marketplace for commercial construction products – recently announced it closed on a $8.5 million Series A funding round. This funding round was led by M13 with participation from Rise of the Rest, Rogue Venture Partners, Founders’ Co-op and Oregon Venture Fund. Source had previously raised a total of $3.7 million.
Launched in 2019, Source digitizes and streamlines commercial real estate projects through a single cloud-based platform to support the budgeting, product and material selection, and purchasing of projects. And it enables verified architects and designers to browse products, save material selections into projects, order samples directly from representatives, and export product information into spreadsheets.
The commercial construction industry in the U.S. has been on a steady growth trajectory since 2010, with the construction of commercial real estate worth $115 billion U.S. dollars in 2022. And Source has seen outsized growth over the last two years, with project purchasing volume growing an average of 700% per year.
The company’s focus on the hospitality, housing, and tenant improvement sectors has helped bolster this growth, as those industries are still seeing robust growth with strong tailwinds. Recent client projects include purchasing for Hilton, IHG, and Marriott branded properties. And the company plans to use the funds to expand nationally, increase its headcount and invest in technology advancements.
KEY QUOTES:
“The commercial real estate industry is long overdue for a solution that enables designers to collaborate on product selections in a cloud environment. Source is focused on that digital upgrade. First, by making product selection less time-consuming, and more collaborative for the design team. And then by streamlining and integrating the purchasing of goods within the client’s timeline and budget; ensuring a strong ROI on their asset investments.”
— Nicole Schmidt, founder and CEO of Source
“Despite technological advances, the construction industry still conducts many transactions via phone, e-mail, and pen and paper. We’re incredibly excited to partner with the world class team at Source whose platform is reinventing commercial real estate construction with the speed and scale customers require today.”
— Anna Barber, lead investor at M13
