Construction Tech Startup Adaptive Secures $19 Million in Series A Funding

Adaptive, a financial management software company specializing in solutions for small and medium-sized construction businesses, has raised $19 million in a Series A funding round. The investment was led by Emergence Capital, with participation from notable firms including Andreessen Horowitz, Definition, Exponent, 3kvc, Box Group, and angel investor Gokul Rajaram. This latest round brings Adaptive’s total capital raised to $26.4 million.

Founded in 2023, Adaptive aims to revolutionize financial management in the construction industry by leveraging artificial intelligence, automation, and user-friendly design. The platform offers comprehensive financial tools tailored specifically for construction companies, including budgeting, cash flow analytics, expense tracking, accounts payable and receivable, vendor management, and electronic payments.

Francisco Enriquez, Co-Founder and CFO of Adaptive, commented on the company’s growth, “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.”

Since its launch in February 2023, Adaptive has experienced rapid growth, with over 280 construction companies now managing more than $1.4 billion of project volume on the platform. The company serves a diverse range of small to medium-sized construction businesses, from custom homebuilders to commercial general contractors and specialty trades.

Nick Schiffer, founder of NS Builders and host of The Modern Craftsman podcast, highlighted the impact of Adaptive on his business, “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.”

Matt Calvano, Co-Founder and CEO of Adaptive, explained the company’s mission, “The payment delays and cash flow problems we see in construction largely arise from outdated, manual back-office processes.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.”

The investment will be used to fuel Adaptive’s growth, with a focus on expanding its engineering and product teams. The company also plans to enhance its efforts to reach more construction companies across the United States.

Kevin Spain, General Partner at Emergence Capital, who will be joining Adaptive’s Board, expressed confidence in the company’s potential, “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.”

As Adaptive looks to the future, the company aims to develop an integrated financial ecosystem connecting developers, general contractors, and subcontractors. This expansion is expected to bring greater transparency and faster, more accurate payments across the construction value chain.

Henry Bradlow, Co-Founder and CTO of Adaptive, emphasized the company’s commitment to user-friendly technology, “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.”

With this significant funding round and strong industry support, Adaptive is poised to make a lasting impact on financial management in the construction sector, potentially addressing billions in losses caused by inefficiencies in the current system.