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Constrafor Secures $7.5M Investment Led by Motive Ventures

Constrafor Secures $7.5M Investment Led by Motive Ventures

Partnership with Motive Ventures expands subcontractors’ ability to leverage Constrafor’s strategic network for rapid access to capital, advanced AI integration, and innovative payment acceleration.

 

Introduction

Constrafor, the innovative SaaS construction procurement platform with embedded financing, is delighted to announce a $7.5 million investment led by Motive PartnersVentures, the early-stage investment arm of Motive Partners. This timely investment will enable Constrafor to accelerate its mission of providing construction firms with cost-effective and efficient access to capital, as well as advanced technology that streamlines their operations and facilitates accelerated payments.

 

The Construction Industry Landscape

The construction industry is still going strong, with numerous ongoing projects and increased government investment in infrastructure. However, government projects tend to have slow payment cycles, leaving subcontractors in a financial bind. Cash flow problems have been exacerbated by the turbulence in the banking industry with the recent collapse of Signature Bank and Silicon Valley Bank, which has resulted in banks tightening lending activity. Consequently, subcontractors face challenges in accessing affordable and timely financing options.

 

Constrafor's Unique Solution

In this challenging environment, Constrafor is perfectly positioned to provide subcontractors with rapid access to cash, affordably. Our platform allows them to pay employees, purchase materials, buy or rent equipment, and take on more work without resorting to traditional loans that negatively impact their financial position and reduce their bonding capacity.

As Constrafor CEO Anwar Ghauche states, "Our goal is to enable construction firms to grow sustainably, without the burden of costly and time-consuming lending processes. The key to our success lies in our ability to provide affordable and accessible financing options while leveraging the power of technology to streamline construction processes. Our biggest challenge remains raising awareness among contractors about the existence and benefits of our solution."

 

Investment Round Highlights

The investment, led by Motive Ventures, positions Constrafor to provide construction firms with the industry's most competitive cost of capital. Motive Partners, with its exceptional roster of fintech investors, operators, and innovators, brings valuable operating experience and insights to help us anticipate and navigate challenges.

The funding round also saw participation from Fifth Wall, a frontrunner in construction technology venture capital, alongside returning investors Fintech Collective, Clocktower Ventures, Commerce VC, and FJ Labs.

 

A Promising Future for Constrafor

In line with our mission to promote financial stability for subcontractors, Constrafor now enables General Contractor customers to provide accelerated payments to their subcontractors, dramatically reducing the industry average turnaround time of 83 days to a mere 48-hours. This accelerated payment process ensures that all project stakeholders, including clients, General Contractors, subcontractors, suppliers, and workers, can concentrate on delivering quality work on time, fostering a more efficient and successful construction ecosystem.

Mariano Belinky of Motive Ventures remarked, "We are delighted to join Constrafor's journey as they transform the construction industry. With our investment and involvement, we believe Constrafor can become the premier solution for contractor payment acceleration, establishing itself as the category-defining company that the construction industry truly deserves."

 

Growth & Future Outlook

Boasting over 23,000 contractors on our platform and an impressive 25% month-over-month growth, Constrafor is well-positioned to make a lasting impact on the construction industry. Our ambitious goal by the end of 2023 is to facilitate over $100 million in invoices per month through our Early Pay Program.

Constrafor's investment in GenAI (Generative AI) serves to enhance our platform further. GenAI brings substantial improvements to traditional, labor-intensive processes by boosting efficiency, ensuring consistency and accuracy, promoting innovation, providing scalability, and cutting costs. Within the construction sector, it streamlines operations and increases project profitability by automating tasks like reviewing certificates of insurance (COIs), among many other examples.

 

Looking Ahead

As we continue to expand our platform and services, we invite construction professionals and financial technology experts to join us in revolutionizing the way contractors access capital and manage their operations. Our team is blazing new trails, and we need motivated thinkers and doers to join us on our mission of enabling contractors to prosper.

Join us as we embark on this exciting journey to reshape the world of construction financing and technology, and together, let's build a better future for the industry.

Looking ahead, Constrafor remains dedicated to continuous innovation and growth, acknowledging the crucial role of our industry partners and fellow construction technology providers. Together, we drive digitization in our sector, and we warmly invite them to collaborate using Constrafor's public APIs to build a stronger, more connected future.

Are you a construction professional or financial technology expert interested in learning more about Constrafor? We invite you to visit our website, explore our platform, and see firsthand how our solutions can benefit your business. Don't miss out on the opportunity to be a part of this groundbreaking movement in the construction industry. Together, we can make a difference!

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